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Memorial University of Newfoundland

  Memorial University of Newfoundland

Purchasing

Approval Date: 2014-03-13

Effective Date: 2014-03-13

Review Date: 2022-03-13

Authority:

The Department of Financial and Administrative Services is responsible to the Vice-President (Administration and Finance) for the administration of this policy and these procedures.

Purpose

To ensure that procurement of goods and services provides the best value to the University and is undertaken in an open, competitive, ethical , socially responsible and environmentally responsible manner while remaining in full compliance with legislation.

Scope

All employees authorized to make purchases on behalf of the University and all purchases from all funds administered by the University, irrespective of the sources of funding, specifically including: operating funds, trust funds, discipline funds, grant funds, ancillary enterprises and capital funds.

Definitions

Electronic Signature — In accordance with the Electronic Commerce Act means electronic information that a person has created or adopted in order to sign a document and that is in, attached to or associated with the document.

Original Signatures — Original ink signatures and secure electronic signatures; they do not include rubber stamp signatures, digitized signatures and facsimile signatures.

Secure Electronic Signature — An electronic signature that is unique to the person making the signature and the technology or process used to make the signature is under the sole control of the person making the signature.

Total life-cycle cost — Total cost of ownership over the life of a purchase including planning, design, construction and acquisition, transportation, operation, maintenance, renewal and rehabilitation, depreciation, financing costs, cost of disposal, etc.

Unit — Academic or administrative unit as defined in the University Calendar.

Unit Head — For the purposes of this policy, unit head is the term used to mean Deans, Department Heads, Division Heads, Heads of Schools, Directors, Executive Directors, University Librarian, University Registrar and other senior administrators at a comparable level; Associate Vice-Presidents and Vice-Presidents, as applicable.

University — Memorial University of Newfoundland.

Policy

1. Purchasing Authority

1.1 In accordance with the Memorial University Act, the Board of Regents has authority for the management, administration and control of the property, revenue, business and affairs of the University, which includes purchasing.

1.2 Senior administration of the University has assigned specific purchasing authority to certain units, as outlined in the related documents "Schedule of Purchasing Authority and Approvals" and "Special Purchase Approval" and to specific positions/individuals. This authority may be periodically revised as necessary by the Vice-President (Administration and Finance) to meet operational requirements.

1.3 Only duly authorized individuals may commit the University to purchase agreements of any type. Unauthorized individuals who make such commitments may be held personally responsible for any resulting obligations.

1.4 Original signatures are required to authorize purchasing.

2.0 Purchasing Principles

2.1 Purchasing must be conducted with the objective of obtaining best value for the University over the life of the acquisition while ensuring proper stewardship of resources.

2.2 Purchasing must be conducted in a fair and transparent manner, and where legislation, University policy and/or procedure dictate, follow a competitive procurement process.

2.3 Individuals making purchases on behalf of the University shall conduct themselves in an ethical manner, ensuring compliance with University-wide policies, in particular the Conflict of Interest Policy and with the Purchasing Code of Ethics.

2.4 In keeping with the Memorial University of Newfoundland Sustainability Declaration, the University endeavors to integrate sustainable considerations into purchasing decisions. Purchasing decisions should take into account the following principles:

2.5 The University is committed to conducting its purchasing in a socially responsible manner by doing business with vendors that commit to demonstrating social responsibility and ethics in their business operations.

2.6 The University is committed to conducting its purchasing in consideration of the health and safety of its community.

Responsibility:

Due to the nature of the University's decentralized purchasing function, it is the responsibility of each Dean, Director or Associate Vice President as applicable, to ensure that the Purchasing policy and related procedures are followed.

Related Documents

Schedule of Purchasing Authority and Approvals
Special Purchase Approvals
Purchasing Code of Ethics
Electronic Commerce Act
Public Procurement Act
Contract Administration Policy
Conflict of Interest Policy
Controlled Goods Policy
Determination of Employee or Independent Contractor Status Policy
Gift Acceptance Policy
Tangible Asset Administration Policy 
Memorial University of Newfoundland Water Pledge
Memorial University of Newfoundland Sustainability Declaration

Procedures

For inquiries related to this policy:

Contact: Department of Financial and Administrative Services, 709-864-8222

Sponsor: Vice-President (Administration & Finance)

Category: Finance

Previous Versions:

There is at least one previous version of this policy. Contact the Policy Office to view earlier version(s)

Approval Date 2006-05-23   Effective Date 2013-07-30
Approval Date 2006-05-23   Effective Date 2006-05-23

Procedure for Ensuring CSA Approval for Purchases

Approval Date: 2014-12-01

Responsible Unit: Department of Financial and Administrative Services

Provincial legislation and regulations require that all apparatus being connected to the electrical power system be certified by the Canadian Standards Association (CSA) or other approved testing agency. Onsite testing of uncertified equipment can be provided at the unit's expense. For further clarification and or advice on this approval contact the Department of Facilities Management, or the Division of Technical Services.


Procedure for Making a Capital Equipment Purchase

Approval Date: 2006-05-23

Responsible Unit: Department of Financial and Administrative Services

There are two types of Capital Equipment forms required when purchasing capital equipment. They are to be used as described below:

1. Capital Equipment Purchase Order Addendum

All purchases of capital equipment with a value greater than $10,000 will require completion of the "Capital Equipment Purchase Order Addendum" form. This form is required by the Department of Technical Services. The form should be completed by the supplier when submitting a tender quotation, or if the purchase did not go to tender, prior to the issuance of a purchase order.

In the event the supplier is not willing to complete the capital equipment purchase order addendum form, then the purchasing department should consult with the Director of Technical Services.

2. Capital Equipment Form

The "Capital Equipment" form must be completed for all equipment purchases that meets any one or more of the following conditions:


Procedure for Making Prepayment

Approval Date: 2006-05-23

Responsible Unit: Department of Financial and Administrative Services

The University, as a general policy, does not prepay for services or purchases. However, under exceptional circumstances, and with advance approval by the Director of Financial and Administrative Services in accordance with the guidelines below, the prepayment will be considered.

1. The Director of Financial and Administrative Services will authorize prepayments under any of the following circumstances:

2. To expedite the processing of prepayments, the department must forward the purchase order and supporting documentation of the attention of the Director of Financial and Administrative Services prior to the release of the purchase order. When the Director is satisfied as to the documentation, the order will be approved and returned to the originator for processing.


Procedure for Open Call for Bids

Approval Date: 2019-02-19

Responsible Unit: Department of Financial and Administrative Services

1. Preparing an Open Call for Bids

1.1 All Open Call for Bids notices must be routed through the Department of Financial and Administrative Services (FAS) unless alternate arrangements have been made.

1.2 Procedures for preparing Open Call for Bids Notice:

1.2.1 Obtain bid number, opening time and date from the applicable Tendering Clerk [FAS, the Office of the Associate Vice-President (Administration and Finance) Grenfell Campus, the purchasing office at the Faculty of Medicine, the Tendering Section at Facilities Management, or the purchasing section of the Finance Office at the Marine Institute]. Open Call for Bids normally close a minimum of fifteen (15) calendar days after they are posted.

1.2.2 Open Call for Bids Notice should include:

1.2.3 All open call for bid notices will be advertised electronically with the Service Provider (Bids, Pods, and Merx). Units will be required to forward all bid documents electronically to the person responsible for tendering in accordance with 1.2.1 above.

2. Instructions to Units

2.1 When preparing packages for submission, ensure that each package contains:

2.2 Forward all documents in electronic format as an e-mail with an attachment.

2.3 The deadline for the electronic transfer to the person responsible for tendering is two (2) working days prior to the date the unit wishes to have it appear on the Service Provider's website.

2.4 Upon receipt of the Call for Bids Notice, Specifications and Amendments, all necessary changes will be made and converted to PDF format. Applicable documents including the Invitation to Open Call for Bids Form, the General Terms and Conditions, the Call for Bids Notice, the specifications, the Capital Equipment Purchase Order Addendum if applicable and any Amendments to the General Terms and Conditions will be attached and the complete package will be forwarded to the Service Providers within the required time frame.

3. The Open Call for Bids Process

There are five (5) basic steps to the open call for bids process. They are:

3.1 Development of an accurate set of specifications for the bidders to review. Inadequate specifications will cause problems for the bidders in developing accurate bids and may result in the acquisition of goods and/or services that do not meet the standards desired by the end user or necessitate the cancelling and resubmission of an Open Call for Bids, adding delays to the process.

When developing the open call specifications, ensure that the following points are considered (as applicable):

3.2 Contact the applicable Tendering Clerk to arrange for the review of specifications, if necessary.

3.3 Bid opening. (See Section 4 below).

3.4 Bid evaluation. (See Section 5 below).

3.5 Notification of award to bidders. (See Section 6 below).

4. Bid Opening

4.1 All bid openings must be attended by at least two (2) University representatives: one (1) from the unit making the purchase and one (1) from the unit responsible for issuing the open call for bids. Any member of the public is allowed to attend.

4.2 The attendance sheet must be signed by all present.

4.3 Bids will be opened individually and the following information disclosed:

Each bid along with above information will be duly recorded by the unit representative.

Each bid will be signed and dated by both University representatives.

4.4 Bids will be rejected during the opening process when key elements have not been included, such as:

4.5 Bids not meeting the documentation requirement will be rejected promptly.

5. Bid Evaluation

The following guidelines are used to evaluate bids:

6. Notification of Award

7. Notification of Exceptions - Open Call for Bids Not Required

7.1 "An Open Call for Bids Exception Form" is required to be completed by units to enable the FAS Tendering Clerk to report to the Chief Procurement Officer (CPO) within 15 days of award, pursuant to Public Procurement Regulations, Section 32, all instances where an open call for bids exception was applied. The form is designed to capture those contracts awarded without an open call for bids as allowed by section 6 of the Public Procurement Regulations 2018.

7.1.1 It should be noted that, in order to use an exception specified in section 6 of the Public Procurement Regulations 2018, the Director of Financial and Administrative Services will be responsible for providing approval prior to award. Therefore, it is important that arrangements for approval be made in advance if you anticipate using this clause. Use of this exemption cannot be granted after the award has been made.

7.1.2 Examples of exceptions allowed under section 6 of the Act are:

6(a)(ii) An open call for bids could reasonably be expected to compromise security (3 quotes are still required).

6(a)(iii) Commodity is available from a Public Body.

6(a)(iv) An emergency or situation of urgency exists and an open call for bids cannot reasonable be made in time (obtain more than one quote where the situation allows).

6(a)(v) Only one source reasonably available for the commodity, in the following circumstances:

6(a)(vi) A list of pre-qualified suppliers has been established using a Request for Qualification process (quotations to be requested from all qualified suppliers on the list).

6(a)(vii) Acquisition of a commodity is for the purpose of resale or for incorporation into a product for resale.

6(b)Set rates established by the Public Utilities Board acting under the Public Utilities Act or another Act.

7.2 Timing of Award

7.2.1 FAS will be responsible for gathering all Exception Forms and submitting them to the President for review and signature.

7.2.2 An Exception Form must be fully completed and forwarded to FAS for approval to award a contract without an open call for bids prior to the issuance of the purchase order. This is required in order to ensure the President has approved not performing an open call for bids before the award is made.

7.2.3 When an emergency or situation of urgency exists and pre-approval cannot be obtained, the Exception Form must be received by FAS within 5 days of contract award.

7.3 Completion of Exception Form

Section 1 - This area will indicate the University unit making the award.

Section 2 - This section will briefly describe the nature of the services or supplies purchased. The purchase order number is documented.

Section 3 - This section will contain the complete mailing address of the contractor, supplier or lessor to whom the award will be made.

Section 4 - The full value of the contract, exclusive of taxes but including freight and any other associated costs is to be shown here.

Section 5 - Tick the appropriate exception clause of the Public Procurement Regulations 2018 for which this purchase is exempt.

Section 6 - Clearly outline why an open call for bids was not required. This explanation will have to undergo the scrutiny of the Auditor General's Office, Public Procurement Agency and the general public, so sound justification is critical.

Section 7 - In all cases, the appropriate Unit Head is required to sign the form prior to it being forwarded to the Department of Financial and Administrative Services for review and recommendation to the President or delegate for approval.


Procedure for Receiving Purchased Goods and Services

Approval Date: 2014-12-01

Responsible Unit: Department of Financial and Administrative Services

1. When goods and/or services have been received, the unit concerned completes the receiving on (FPARCVD) so it can be matched by Banner Finance. If the invoice is received with the shipment, it should be forwarded immediately to the Department of Financial and Administrative Services indicating the Purchase Order number and the Receiving Document number. 

2. Supplier Invoice

All supplier invoices are to be forwarded directly to the Department of Financial and Administrative Services unless prior arrangements have been made with the Director of Financial and Administrative Services, and not to the ordering unit. This is required in order to expedite payment to the supplier in as effective and efficient a manner as possible.

3. Part Shipments

Where only part orders are received, receiving on FPARCVD is completed for the items received.

4. Verification of Goods Received

In all instances, it is the responsibility of the employee in charge of purchasing to ensure that the policy regarding incoming shipments and damaged shipments are complied with to guard against losses. The receiving report should clearly indicate short shipments or damaged shipments.

5. Exterior Damage

5.1 All shipments are delivered to the unit to which they are consigned. It is the responsibility of the individual in each unit assigned to receive shipments to take note of visible exterior damage in the form of broken cartons, or markings which indicate that the shipment may have received rough treatment in transit with consequent damage to the contents. Water damage could also harm the contents and should be looked for.

5.2 It is the responsibility of the receiver to note on the carrier's delivery record the existence of any apparent damage.

6. Interior Damage

6.1 The receiver is expected to open parcels or cartons without delay to determine whether damage to the contents has in fact occurred.

6.2 If damage is discovered, advise the carrier and arrange for an inspector to come and examine the damage. It is important that the wrappings, cartons, boxes or other containers be retained so that the inspector will be able to determine how the damage occurred. For this reason, the procedures for identifying exterior damage are very important.

6.3 The inspector will prepare a report which he/she will leave with you to be used in preparing a claim.

6.4 Frequently, damage is not discovered until the parcel is opened. The damage should then be reported immediately to the inspector and action taken to place a claim.

7. Claims

7.1 When a shipment is sent FOB the Factory, or FOB a city other than St. John's or Corner Brook, the consignor fulfils his responsibility when he delivers the shipment to the carrier. The supplier/consignor will expect his account to be paid in full. The consignee must look to the carrier for reimbursement for loss or damage. As some carriers have limited liability for damages, consideration should be given to have the supplier insure the shipment.

7.2 Should the carrier decline responsibility on the ground that the shipment was improperly packed in the first place, you should notify the supplier and request reimbursement.

7.3 A claim against a carrier for loss or damage requires the submission of the following documents:

7.4 It will be noted that the filing of a claim involves much time, effort and expense. Trivial damage, as determined by the individual units, should be overlooked.

7.5 When a shipment is sent FOB destination, or FOB the University, it is the consignor's responsibility to ensure that the goods or equipment arrive intact. When loss or damage occurs in these instances, the receiving unit is responsible to report the damage to the consignor using the consignor's standard loss claim form. 

8. Parcel Post

When a parcel post shipment is received in a damaged condition, the damage should be reported to the supplier. The supplier will replace the damaged article, and place a claim against the Post Office. The carton wrappings and the damaged article are to be turned over to the Post Office when the claim arrives for verification.

9. Proceeds

When a claim is placed against a carrier for loss or damage to a shipment, credit is to be passed to the account charged with the purchase.

10. Incoming Shipments

10.1 All purchase orders should indicate whether a shipment is to be sent freight, collect or prepaid. If it reads FOB factory or FOB the city from which the shipment is sent, the charges are most likely collect.

10.2 If the order reads FOB Memorial University or the city location of the University, the transportation charges are prepaid by the shipper. In this case, the University is not liable for shipping charges.

10.3 Where possible, all purchase orders should indicate FOB University. 

11. Insurance

If the purchase can only be placed FOB shipping point, consideration should be given to requiring the shipper to include insurance on the shipment. This is important as some carriers have limited liability and, should the shipment be damaged in transit, you may only receive token recovery. The unit will withstand the loss. 

12. Inspection

12.1 Transport carriers should not leave a shipment if a receiving signature and inspection cannot be obtained.

12.2 The unit receiving the shipment is expected to check the packing slips to ensure the contents have been correctly received. 

12.3 All parcels, packages or cartons should be received unopened and free of any external damage. If damaged, see Section 7, Claims.

12.4 It is the responsibility of the unit receiving the shipment to check the contents against the packing slips enclosed by the supplier, and to verify it against the purchase order. 

13. Collect Charges

13.1 When collect charges are indicated on the delivery/packing slip, the unit should notify the Department of Financial and Administrative Services and send the original bill with the completed receiving report to the Director of Financial and Administrative Services for payment.

13.2 The packing slip constitutes the only billing to be received by the unit for incoming collect charges and will have to be matched against the carrier's statement periodically.

13.3 Units should retain a copy for their files. 

14. Parcel Post

14.1 Parcel post shipments are delivered directly by the mail room to the units to which they are consigned.

14.2 Units are responsible for checking the contents of parcel post shipments against the purchase order to ensure that all items ordered have been correctly received.

 


Procedure for Returning a Purchase

Approval Date: 2006-05-23

Responsible Unit: Department of Financial and Administrative Services

1. The University has a four part shipping form, which should be completed for each shipment leaving campus. Forms can be obtained at the Department of Financial and Administrative Services.

2. Purpose of Shipping Forms

The form is designed to perform the following functions:

2.1 To provide a packing slip that will accompany the shipment and identify it to the consignee.

2.2 To provide the shipping information required for the preparation of the Bill of Lading, and the proper dispatch of the shipment.

2.3 To provide information that will permit the issuing of an official University debit note when goods or equipment are being returned to a supplier or contractor for credit.

2.4 To provide a permanent record of the shipment so that it may be traced, if necessary.

3. Procedure

3.1 Section A of the form provides packing slip details, and serves to identify the shipment to the consignee.

3.2 The amount specified in the space "Approximate Value" will be used to place insurance against loss or damage with the transportation company.

3.3 Section B is to be completed whenever goods or equipment are being returned to a supplier for credit or exchange. The information supplied by this section enables the Department of Financial and Administrative Services to prepare a debit note. It is important that an accurate description with serial numbers be supplied for all items.

4. MUN Drivers

4.1 All drivers should be instructed that they are not to accept parcels for shipment or delivery off-campus without a properly completed shipping form attached. The alternative would be for the driver to maintain a log book of all pick up and deliveries.

4.2 The driver should acknowledge receipt of the parcel by signing for it in a department shipping log book.

5. Distribution of Shipping Form

The four copies of the shipping form have the following distribution:

6. Shipments to Foreign Countries

6.1 Shipments to foreign countries require the preparation of export papers, and compliance with regulations governing the importation of the goods or equipment into the countries to which they are consigned.

6.2 The Customs Division of the Department of Financial and Administrative Services will attend to the preparation of these papers from the information supplied on the shipping form. These papers are required in the following instances:

6.3 This instruction applies to shipments which are being sent by ParcelPost, as well as to shipments that are being sent by other forms of transportation.

7. Accounting Procedures for Outgoing Shipments

7.1 There are two accounting situations which can arise as a result of returning purchases to suppliers:

7.2 When the original shipment is not paid for, then section B of the shipping form should NOT be completed.

7.3 When the original shipment is paid for, then section B of the shipping form should be completed in order to permit the Department of Financial and Administrative Services to request reimbursement from the supplier.


Procedure for Unit Requisitions

Approval Date: 2014-12-01

Responsible Unit: Department of Financial and Administrative Services

1. A person requesting the purchase of goods and/or services should submit a unit requisition and any additional information required to assist in the purchase to the employee designated by the  Unit Head/Grant Holder to control purchasing and payment within the requester's administrative offices. 

2. The unit requisition must be prepared by all employees requiring the purchase of goods and/or services other than items purchased through petty cash. The purchase requisition will include the following information: 

 


Procedure for Using Petty Cash

Approval Date: 2014-12-01

Responsible Unit: Department of Financial and Administrative Services

1. The maximum expenditure through the use of Petty Cash is $75 (including taxes). Expenditures greater than $75 require the use of a Direct Pay, Procurement Card or Purchase Order, in accordance with these policy guidelines.

2. When the volume of petty cash transactions is sufficiently high, the Director of Financial and Administrative Services, when requested, may provide a unit with its own petty cash float. The unit’s petty cash float is used to reimburse the unit’s employees for expenses incurred on behalf of the University. When such a float is provided, the following guidelines are to be strictly followed:

2.1 Maximum reimbursement is $75 (including tax). To be reimbursed, the following information is required:

2.2 When presented with an invoice for reimbursement through the unit petty cash, a Petty Cash Voucher must be completed. The petty cash voucher, with invoice/receipt attached, will be prepared by the custodian and the appropriate approval obtained prior to reimbursement. Credit card receipts are not considered acceptable receipts for purposes of this policy. The petty cash voucher must be signed by the employee being reimbursed as proof of receipt of funds.

2.3 The employee responsible to approve all petty cash reimbursements will not be the custodian of the float, and will be an authorized signatory on the account being charged.

3. Replenishing Petty Cash

On a bi-monthly basis or as required, the petty cash float is to be replenished by the Department of Financial and Administrative Services. The vouchers are to be summarized on the Petty Cash Summary Sheet.  The total of the summary must agree with the total of the petty cash vouchers. Total vouchers as per the summary, plus remaining cash float, must equal the float issued.

4. Safeguarding of Petty Cash

4.1 The custodian is responsible for safeguarding petty cash and must ensure that the petty cash box is locked in a filing cabinet or safe when not in use.

4.2 Keys allowing access to the petty cash fund are the sole responsibility of the custodian. Thefts of petty cash funds are to be reported to the Campus Enforcement and Patrol, Office of the Chief Risk Officer, and the Department of Financial and Administrative Services immediately. The custodian is personally responsible for all losses attributed to negligence on his/her part.

4.3 As expenditures are made, place the receipts in a cash box or locked drawer to replace the money expended. The receipts and the cash on hand must always equal the total amount of the imprest fund for control purposes. Receipts should be kept separately from the cash.

5. Payments Not Allowed

The employee responsible for the petty cash is encouraged to seek advice from the campus financial administrator prior to making questionable payments which are not specifically addressed in the Schedule of Purchasing Authority and Approvals or Special Purchase Approvals. The following types of payments are not permitted from petty cash:

6. Reimbursement from the central petty cash floats

6.1 Central petty cash floats are maintained in Financial and Administrative Services on the St. John’s Campus and in the Bursars Office at Grenfell Campus.

6.2 Each unit of the University should have a supply of Petty Cash Vouchers. 

6.3 The completed and approved Petty Cash Voucher, plus the original vendor invoice/receipt for the expenditure, should be within a week of making the expenditure.

6.4 Employees are not permitted to authorize reimbursement of expenditures to themselves.

 


Procedure for Using Procurement Card

Approval Date: 2017-05-30

Responsible Unit: Department of Financial and Administrative Services

1.  All items that are eligible to be purchased via petty cash or direct pay should be purchased using the University's Procurement Card. Certain expenditures, such as travel, hosting, membership and tangible capital assets are not eligible.

2. Where there are recurring payments, charge accounts or where tenders are involved, a purchase order must be used for control and commitment purposes.

3. All expenditures made using the Procurement Card must follow the Purchasing Policy.

4. Quotations

When using the Procurement Card as a method of acquisition, the purchaser must ensure all relevant University policies are followed, including the obtaining of quotes, as outlined in the Purchasing Policy

5. Procurement Card Program

5.1 The Procurement Card Program is based on the purchasing card, VISA. Purchases made with the Card are to follow University Policy and are not intended as a means of bypassing appropriate procedures or sound purchasing practices. The program incorporates controls over certain types of expenditures including travel, hosting and tangible capital assets. Contact Financial and Administrative Services for further details.

5.2 The purpose of the program is to establish a more efficient, cost effect method of purchasing and payment for small dollar transactions. The Procurement Card is intended to replace the bulk of purchases made using petty cash, direct pay forms and certain purchase orders. The Procurement Card does not replace the American Express or enRoute Cards for travel.

5.3 All Procurement Cards are issued at the request of the Unit Head. The Cardholder must be the only person using the card, and is responsible for its use. The card is subject to audit by Financial and Administrative Services at any time. The card must not be used for personal purchases, or Inter-University purchases.

6. Applying for a Procurement Card

6.1 An application to apply for a card can be obtained by contacting Financial and Administrative Services. The application must be approved by the immediate Supervisor. The Supervisor must specify a monthly credit limit and single transaction limit.

6.2 The card will take approximately two (2) weeks to process. When the card arrives, the Cardholder must complete a waiver form at the Department of Financial and Administrative Services before picking up the card; ensure all information on the card is correct; sign it immediately and call the (800) number provided on the front of the card to activate it.

6.3 The program carries a corporate liability. The Cardholder's VISA bill is paid by Financial and Administrative Services.

7. Reconciliation Process

7.1 On the 27th of each month, the Visa transactions for the previous month are made available to the Cardholders by accessing the US Bank Canada Website. To access this site, cardholders should use Internet Explorer (version 5.0 or better with 128-bit encryption) as their browser.

7.2 Cardholders are given a time frame of approximately 10-14 days from the time the files are made available in which to complete their reconciliation. The adjusted transactions will then be uploaded to Banner. Once reconciliations are completed, the Cardholder will sign the statement, forward it (along with all associated receipts) to his/her supervisor who will in turn approve it and redirect the file to Financial and Administrative Services.

7.3 Reconciliations will be completed on line by accessing the US Bank Canada Website. Individual Cardholders will be provided with a user ID and password to access the reconciliation site. Cardholders will also be provided with a copy of the reconciliation process and a copy of the Procurement Card Booklet which outlines the complete Procurement Card system for Memorial University. If further assistance is needed, or if a Cardholder experiences difficulties accessing the site, please contact the Procurement Card Administrator, Financial and Administrative Services at 864-4524

8. Disputing Transactions

8.1 The Cardholder's first recourse is to contact the vendor involved to try and resolve the dispute. If the vendor agrees, a credit will be applied to the account.

8.2 If the vendor does not agree that an error was made, contact the US Bank Canada Customer Service at 1-800-588-8065 and/or Financial and Administrative Services. The Cardholder must give all pertinent details and state that he/she would like to dispute a charge on the card. This must be done within 30 days of the statement date. Disputes will then be resolved by the US Bank Canada within 90 days.

 

 


Procedure for Using Purchase Orders

Approval Date: 2014-03-13

Responsible Unit: Department of Financial and Administrative Services

1. All items not eligible to be purchased from petty cash or by procurement card should be acquired by issuance of a purchase order. Direct Pay Forms may be used ONLY when no other means to purchase is available.

2. When contracts or tender documents are the controlling document, a purchase order is to be assigned to the document, with the purchase order number as a control point for all correspondence and payments related to the contract or tender. This is required in order to record the commitment in the Banner Finance System and to permit more effective budgeting.

3. Charge Accounts with Suppliers

3.1 It is the responsibility of the unit issuing a purchase order to determine if the particular supplier will grant the University credit. This is done via the purchase order itself rather than formal application for credit.

3.2 The only employees who may issue purchase orders for goods and services are persons authorized by the Dean, Director, Grant holder or Associate Vice-President as applicable.

4. Emergency Purchasing

4.1 An emergency situation will meet one of the following conditions:

4.2 Generally, emergency purchasing procedures will not be used unless such procurement practices would be offset by a corresponding or greater loss to the unit as a result of the delay. Failure to anticipate a need is not, of itself, considered a bona fide emergency.

4.3 When emergency work has to be carried out, the following procedures will apply:

5. Creating a Purchase Order

5.1 The process of creating a purchase order starts with the preparation of a requisition for goods and/or services. This requisition is completed by the employee requiring the goods and/or services. Refer to Procedure for Unit Requisitions.

5.2 When the employee designated to control purchasing within a unit receives a requisition which requires the issuing of a purchase order, he/she is required to:

If the goods and/or services can be obtained internally within the University, the requisition should be forwarded to the appropriate unit, unless prior arrangements have been made with these units to permit external purchasing. Consult the Departments of Facilities Management, Technical Services, Printing Services, Financial and Administrative Services, and Information Technology Services for details on policy and procedure for their respective areas.

If the goods and/or services have to be obtained externally, the employee designated to control purchasing should determine if his/her unit has the appropriate approval authority for the particular purchase. If the items on the requisition are as described in the Special Purchase Approvals List, the requisition will require the approval of the appropriate University office.

5.3 When the requisition has been approved, the purchase may be processed.

6. Pricing of Purchase Orders

It is the responsibility of the unit, in consideration of the specifications for the goods and services set out on the requisition, to select the supplier and to establish the price to be paid in accordance with these guidelines.

6.1 Correct Pricing

It is the responsibility of the employee designated to control purchasing within a unit to ensure that the prices quoted are current prices. The Department of Financial and Administrative Services will request additional approvals if the supplier invoice is not in agreement with the applicable purchase order within specified limits.

6.2 Catalogue

Catalogues are only to be used as a source for obtaining quotations. Pricing purchase orders from a catalogue is not permitted, as generally the prices are not current.

6.3 Freight

All purchase orders should indicate whether a shipment is to be sent freight collect or prepaid. To reduce freights costs, require prepaid freight wherever possible.

Shipping terms are important in identifying when ownership of the purchase takes place, reducing associated trade and customs risks, and defining the transportation arrangements. In most situations the terms should specify that the vendor will retain ownership and liability for the purchase, and pay the shipping cost until the University has physically received it.

Use of the correct shipping term is critical to ensuring the University's shipping requirements are met. Incoterms are internationally accepted commercial terms that determine the roles and responsibilities of the buyer and seller in the sale of goods. The shipping terms DAP (delivered at place) or DDP (delivered duty paid) should be used in most situations.

DAP and DDP means that the seller is responsible for all costs associated with making goods available to the buyer at a named place of destination, cleared for import, but not unloaded from vehicle. These terms can be used for any mode of transport.

6.4 Insurance

If the University is assuming ownership of the purchase at the point of shipping, consideration should be given to insuring the shipment. This is important as some carriers have limited liability and, should the shipment be damaged in transit, the University may only receive token recovery and the unit will be required to withstand the loss.

7. Issuing of Purchase Order

7.1 The unit, having complied with the provisions of these procedures, will issue the purchase order, representing the contract for the goods or services, and will record required delivery, sales tax, freight, and delivery location.

7.2 It is very important that the unit complete all applicable information as to the date required, shipment method and terms, billing terms, payment discount, unit, building including room number, and insurance coverage.

7.3 For commitment purposes the unit must estimate the freight charge involved, as well as the Harmonized Sales Tax.

7.4 Units should not issue several purchase orders for identical items to the same supplier. When the total requirement is known, a purchase order should be issued for that requirement with more than one delivery date given.

8. Other Considerations

The employee responsible for issuing the purchase order must ensure legal and risk implications have been considered and addressed. Such implications include, but are not limited to:

9. Contracts

9.1 The issuance of a purchase order results in a legally binding contract. However, it may be advisable to develop a separate contract document in addition to a purchase order depending on the complexity of the purchase. See the Contract Administration policy.

10. Supplier Invoices

10.1 All supplier invoices are to be sent directly to the Department of Financial and Administrative Services for processing. Exceptions to this procedure should be arranged with the Director of Financial and Administrative Services prior to placing the order. Payment cannot be generated without the original invoice and the receiving completed on the purchase order.

10.2 The supplier's invoice must show all particulars of the transaction. Monthly statements are not acceptable as invoices.

10.3 When an invoice is handwritten, it must bear the signature of the supplier as follows:

10.4 Some expenditures require the Department of Financial and Administrative Services to check, verify and process the invoice prior to obtaining unit approval. These are:

10.6 Internal invoices for requisitions within the University will be processed on receipt by the Department of Financial and Administrative Services. If an invoice appears to be incorrect, contact the unit from which the charge originated and arrange for an adjustment.

11. Standing Purchase Order

In situations where supplies and services are required on a recurring basis throughout the year, a standing purchase order can be issued. This purchase order will state the estimated yearly cost to be incurred and the contract should be awarded in accordance with the Purchasing policy and procedures. All standing purchase orders will be for the fiscal year only. For each purchase on a standing purchase order, complete the receiving for each order received and forward the invoice to Accounts Payable in order to reduce the outstanding commitment.

12. Bulk Purchasing

A unit which is the major user of items needed on a recurring basis may be requested to purchase for the consolidated University requirements. Units requiring these materials should submit their requisition, once it is approved within their unit office, to the unit responsible for the central supply. An interdepartmental billing will be processed by the issuing unit for reimbursement of funds.


Procedure to Use Direct Pay

Approval Date: 2014-12-01

Responsible Unit: Department of Financial and Administrative Services

1. Purchase orders are to be used in all purchasing situations. If the option to use a purchase order is not provided by the supplier, then a direct pay form may be used. The procedures for completing a requisition and obtaining quotations still apply to acquisitions by direct pay.

2. Direct Pay forms are available from the Department of Financial and Administrative Services. 

3. Type of Purchases Authorized for Direct Pay.

The only types of purchases to be made on direct pay forms, provided the option to use a purchase order is not available, are those listed below. All other purchases of goods and services must be made by petty cash, procurement card or purchase order.

Items authorized for direct pay acquisition:

4. The supplier invoice is required prior to preparation and processing of the Direct Pay.

5. Order and/or Application Form - Cost Known

Where an order and/or application form is required, the form must be completed by the appropriate unit and then forwarded to Financial and Administrative Services with the original copy of the direct pay form for the amount required. The Department of Financial and Administrative Services will issue a cheque and mail it with the application form.


Purchasing Procedures - General

Approval Date: 2019-07-26

Responsible Unit: Department of Financial and Administrative Services

1. METHODS OF ACQUISITION

1.1. The employees designated to control purchasing and payments for a unit have the responsibility to determine how the acquisition of goods and services should be made. The following methods are available depending upon the dollar value and, in some cases, the nature of the acquisition.

1.1.1. Purchase Orders (POs) are to be used for all purchases other than those made by Petty Cash or small, dollar value items purchased on Procurement Card. SeeProcedure for Using Purchase Orders for further information on the use of purchase orders.

1.1.2. Direct Pay Forms can be used only if the nature of the acquisition meets the guidelines as specified in the Procedure to Use Direct Pay.

1.1.3. The Procurement Card is to be used for all purchases meeting the procurement card guidelines in the Procedure for Using Procurement Card. Certain types of expenditures, such as travel and hosting, are not permitted to be charged to this card.

1.1.4. Petty Cash is available for purchases of $75 or less (including taxes). See Procedure for Using Petty Cash for details.

1.2 University orders by faculty/staff charged to their personal credit card are not to be permitted, except as allowed under the Procedure for Using Petty Cash.

2. PROCUREMENT VALUE GREATER THAN $500,000

2.1 A proposed Open Call for Bids with a value greater than $500,000 (exclusive of harmonized sales tax) must be reviewed by the Office of the General Counsel.

3. OPEN CALL FOR BIDS

3.1 University procurement is governed by the Government of Newfoundland and Labrador Public Procurement Act (PPA) and Public Procurement Regulations (PPR) 2018.

3.2 Under these regulations an open call for bids is required for:

(a) goods with an estimated value of $10,000 or greater;

(b) services (excluding engineering and architectural services) with an estimated value of $50,000 or greater;

(c) engineering and architectural services with an estimated value of $100,000 or greater;

(d) public works with an estimated value of $100,000 or greater; and

(e) leases of space with an estimated contract value of $100,000 or greater.

3.2.1 The PPA excludes "professional services" from the definition of services. Professional services means the following services required by a public body:

i. legal services, and

ii. financial services relating to the provision of credit and instruments of monetary policy;

3.3 All thresholds are CDN$; inclusive of all premiums, fees, commissions and interest, as well as delivery costs; and exclusive of harmonized sales tax. Estimated value shall be based on the entire length of the contract, including renewal options. If a legitimate estimate cannot be determined for a procurement, then an Open Call for Bids shall be issued.

3.3.1 If a single procurement includes a combination of goods and services, the unit shall determine the estimated value for each component and use the cost estimate for the largest component to determine the applicable threshold. For example: goods $10,000 + service $2,000 = $12,000 requires an Open Call for Bids as the largest component is goods in which a $10,000 value exceeds the Open Call for Bids threshold.

3.4 An open call for bids means a publicly-advertised invitation to suppliers to submit a bid, by electronic advertisement or written media, as per Section 7 of the PPR.

An open call for bids may be in the form of either an Invitation to Tender, or a Request for Proposals. Purchase orders cannot be broken down into more than one order to get each order value less than the established thresholds.

3.5 All other exemptions to an open call for bids are found in Section 6 of the PPR and, if used, are to be reported to the Public Procurement Agency in accordance with Section 32. Please refer to the Procedure for Open Call for Bids.

3.6 The University requires that all procurement comply with the PPA regardless of the funding source.

3.7 The Director of Financial and Administrative Services (The Director) is responsible to ensure that the University is in compliance with the PPA and PPR. This responsibility includes:

3.8 To ensure consistent application of these public procurement requirements, it is recommended that all purchases greater than the thresholds outlined in 3.1 be coordinated with the Department of Financial and Administrative Services' Tendering Clerk.

3.9 For those units issuing an open call for bids, FAS will supply a locked tender box in which bidders may place their bids.

4. LIMITED CALL FOR BIDS

4.1 University procurement is governed by the Government of Newfoundland and Labrador Public Procurement Act (PPA) and Public Procurement Regulations (PPR) 2018. Under these regulations a limited call for bids is required for (all thresholds are CDN$; inclusive of all premiums, fees, commissions and interest, as well as delivery costs; and exclusive of harmonized sales tax):

(a) goods with an estimated value less than $10,000;

(b) services (excluding engineering and architectural services) with an estimated value less than $50,000;

(c) engineering and architectural services with an estimated value less than $100,000;

(d) public works with an estimated value less than $100,000; and

(e) leases of space with an estimated contract value less than $100,000.

A limited call for bids requires the public body to either obtain quotations from at least three suppliers, or to determine a fair and reasonable price for the commodity based on recent market conditions.

4.2 Purchase orders cannot be broken down into more than one order to get each order value less than the established thresholds.

4.3 Quotations for all acquisitions of goods and services less than the Open Call for Bids thresholds must be obtained using the following guidelines.

Commodity
Threshold
3 Quotations
Determine Fair Price
Goods
  < $10,000
  $2.5K-$10K
  < $2,500
Services (excluding engineering & architectural services)
  < $50,000
  $10K-$50K
  < $10,000
Engineering & Architectural Services
  < $100,000
  $20K-$100K
  <$20,000
Public Works
Lease of Space (Contract Value)

Quotations must be recorded on a Quotation Summary Log and a copy attached to the invoice when sent to FAS for payment processing.

4.4 For services valued between $10,000 and $50,000, with the exception of engineering and architectural services, and for Public Works valued between $20,000 and $100,000, the preferred approach is to obtain quotations from at least three suppliers. If this is not feasible, at least one quotation should be obtained and the price shall be fair and reasonable.

4.4.1 The invitation for a quotation must be sent to no less than three (3) selected suppliers. A summary of the quotations requested must be recorded on a Quotation Summary Log and attached to the invoice when sent to FAS for payment. Quotations must be kept in the unit's files for audit purposes in accordance with Section 6 Record Retention.

4.4.2 All invitations for a written quotation should identify to the vendor a time limit within which the quotation is expected to be returned and to whom.

4.4.3 The lowest quotation is usually accepted. In cases where other than the lowest quotation is accepted, explanations should be documented by the purchaser and approved by the Unit Head prior to placing the order.

4.4.4 Purchase of Computers and Related Supplies - If the University's IT Procurement Office (ITPO) can provide the required items they should be contacted as a potential supplier. Items may be purchased directly from the IT Procurement Office without obtaining alternate price quotations (as ITPO has already performed this function). However, if the purchaser obtains price quotations, then one of the required three price quotations must be obtained from the ITPO with consideration given to IT security needs. If the system configuration required is not available from the ITPO, the Quotation Summary Log must include written confirmation from the ITPO to that effect.

4.5 A Fair and Reasonable Price based on recent market conditions shall be established as follows:

5. Purchases without Quotation

5.1 There are purchases up to the Limited Call for Bids thresholds (excluding taxes) where it is not feasible or practicable to obtain quotations due to the following circumstances:

5.2 A full written explanation as to why quotations were not obtained must be provided on a Quotation Summary Log and kept in the unit's files for audit purposes in accordance with Section 6 Record Retention.

5.3 If such a purchase meets the Open Call for Bids thresholds (excluding taxes), then refer to the procedures for completion of an Exception Form under the Procedure for Open Call for Bids.

6. RETENTION OF RECORDS

It is the responsibility of each unit to sufficiently document each procurement in order to provide audit evidence of their compliance with the Purchasing policy and related procedures. This evidence must be retained for a period of the previous six fiscal years plus the current fiscal year.

7. PPA REPORTING REQUIREMENTS

7.1 The Director of Financial and Administrative Services (The Director) is responsible to ensure that the University is in compliance with the PPA and PPR reporting requirements.

This responsibility includes: