Business Office

Purchasing

Forms

Capital Purchases

It is the policy of the college to classify all items of equipment in the 51503 line of each departmental budget. Items with a useful life of one year or more and that cost over $5,000 are considered equipment. Purchases of items that do not meet the criteria should be considered supplies and coded to the 51502 line of each departmental budget.

 

Competitive Bidding Policy

Approved by President’s Cabinet – December 15, 2003
Revisions Approved by Cabinet September 9, 2014

Purchases are defined as supplies, equipment, purchased services, consultants, and contractors.

1) Dollar Thresholds:

• $0 - $10,000 – No Quotes Required

• $10,000.01 - $25,000 – Minimum of 2 Quotes (can be verbal)

• Over $25,000 – Minimum of 3 Written Quotes

• Although bids are not required for purchases under $10,000, the college strongly encourages departments to seek the best price on all purchases.

• Purchases over $10,000.01, up to and including $25,000, require 2 quotations. The quotes can be in writing, via telephone or via fax. If by telephone, a record of the transaction must be maintained to include the: name of each supplier contacted; person providing the quote; date of the quote; and, quoted price. Departments can directly solicit bids or request that the Purchasing Department solicit the bids on their behalf. If the low bid is found to be unacceptable, the department head should write a justification for not accepting the lowest bid.

• All purchases over $25,000 require 3 written quotations. Departments can directly solicit bids or request that the Purchasing Department solicit the bids on their behalf. Documentation for purchases over $25,000 are to include the following:

1. Copy of the “Request for Bids” or the letter soliciting quotes which clearly specify the college’s requirements, such as: quantity; description; delivery; special conditions; drawings; bid due date; etc.

2. Names and contact persons for suppliers solicited.

3. Copy of quotes from all responsive suppliers.

4. Basis for selection and award price.

5. Justification for lack of competition when competitive bids were not obtained, such as: emergency purchases; library acquisitions; requirements based on lease; rental or warranty agreements; design compatibility with existing equipment; only known source of supply; or agency specified vendor.

2) When evaluating quotes, consideration should be given to the following criteria when applicable:

• Price.
• Quality and conformance to specifications.
• Delivery schedule.
• Life Expectancy.
• Warranty.
• Bidder’s previous record of performance.
• Vendor Stability.
• Ability of bidder to render satisfactory service in this instance.

3) Unsuccessful bidders are to be notified that the bid has been awarded, although it is not necessary to inform them of the successful bidder.

4) Documentation of bids and awards are to be sent to the Business Office with the original purchase requisition, to be maintained for year end auditing purposes.

5) This policy applies to initial bids for purchases. Documentation to justify why competitive bids are not obtained on renewal contracts of $10,000 or greater must be submitted to the Supervisory Cabinet Member and approved in advance.

6) This policy applies to all purchases by Daemen College employees and departments. In addition, employees who make purchases on grants where Daemen is serving as the fiscal agent must follow this policy and any additional regulations as mandated by the funding agency. Purchasing policies applicable to federal grants and agreements are listed in Circular A110 at http://www.whitehouse.gov/omb/circulars/a110/a110.html.

 

Purchasing Policy

  1. Annual operating budgets are approved by the Cabinet and the Board of Trustees. Spending by department managers/chairs must not exceed their approved budgets.


  2. It is required to get proper approvals on a Purchase Requisition before purchases are made. The forms are not intended simply to request payments after purchases have already been made.

  3. Purchase Requisitions can be prepared by anyone and approved as in step 5 below. The Requisitions must be within the remaining approved budget and be for legitimate and appropriate college purposes. Requisitions should be processed through the Purchasing Department for almost all items, for almost all departments. The only exceptions are noted in step 13 below.

  4. All Requisitions over $100 must be requested by one person and approved by the next level manager. No one can initiate a Requisition and also approve it. All reimbursements to individuals must be approved by the next level manager. The only exception is that requisitions under $100 can be approved by just the single signature of the department budget manager.

  5. The dollar limits for approving purchase requests are as follows:

    $0 - $1,000 Department manager/chair (by signature, not signature stamp or typed name), plus Grants Administration Manager for all grant spending. These requisitions under $1,000 can then be sent directly to Purchasing without going to the Business Office first.
    $1,000 - $10,000 Department Manager/chair, plus Grants Administration Manager for all grant spending, plus Controller.
    Over $10,000 Department Manager/chair, plus Grants Administration Manager for all grant spending, plus Controller, plus Vice President for Business Affairs.

    If you are sharing the cost of something with another department, that department must also sign the purchase requisition.

  6. The Competitive Bidding Policy will be followed whenever appropriate.

  7. Approved Requisitions are processed by the Purchasing Department, reviewing for proper approvals, amounts within budget, and reasonable purposes.

  8. Purchasing then issues Purchase Orders to approved vendors.

  9. Items are received and inspected, by either the requestors or Purchasing, and then they are marked by Purchasing as "received" on-line. Purchasing can then close out the open Purchase Order.

  10. Invoices are received by the Accounts Payable department, and a voucher package is prepared matching up the p.o.'s, receiving verification, and invoices. Any differences are resolved with Purchasing or vendors.

  11. Matched invoices are entered in the A/P system for payment by the due dates, generally with 30 day terms, taking all appropriate discounts.

  12. Once a week, A/P prints a check run, with all checks signed by facsimile signature. The Controller reviews the check run printout to plan cash needs and to look for unusual items. Checks over $15,000 require a second, manual, signature. The Controller also reviews the actual run of checks to verify sequential check numbers and again to look for unusual items.

  13. The only departments that are authorized to place orders without Purchasing are the Library for books/periodicals, Maintenance for contractor jobs, Publications for specialty printing jobs, Enrollment Management for advertising, and the Business Office for insurance and contracted services. These areas should still have approved Purchase Requisitions or signed contracts to authorize their purchases, but they have specialized technical requirements that make it more efficient for them to place orders directly with their vendors. The approved Requisitions or contracts should be used by Accounts Payable for matching with the invoices when received. Even these departments should use the Purchasing Department route for routine items like office supplies. One other exception is that approved Requisitions for food service at events can be sent directly to the Hallmark office if the estimated total is below $1,000.

  14. Certain items require the request of a check directly from Accounts Payable, rather than the purchase of goods. Things like travel advances, meal money for Athletics trips, and student refunds should be requested directly from A/P using approved Purchase Requisitions, with receipts if appropriate. Invoices for recurring monthly payments like utilities and security should be logged in and approved by a manager in the Business Office before going to Accounts Payable for payment.

  15. Emphasis on Local, Women/Minority-Owned Vendors
    Daemen College has traditionally emphasized placing college business with local firms. The college is committed to promoting opportunities for small business, minority, and women vendors to participate in the college’s procurement, and for following the New York State MWBE guidelines for advertising opportunities for same.

    Exceptions to this Policy
    This policy and procedure are written in general terms to allow reasonable discretion and will not cover every possible purchasing situation. Exceptions to this policy must be approved by the Vice President for Business Affairs or Controller and must be clearly justified as beneficial to the mission, goals, and objectives of Daemen College.

    Please call Lisa Arida at extension 8218 if you have any questions.

  16. Travel arrangements and conference fees often require that reservations and deposits be made on-line or via telephone using a credit card. Travelers should research and determine their specific flights and hotels. Then they should forward a Purchase Requisition for Airline Travel/Hotel Reservations Form, approved as in step 5 above, noting the detailed travel requirements, to the Purchasing Department to actually book the reservations, using the College's credit card. Employees should not use their personal credit cards for travel reservations to avoid billing problems if credits later need to be processed. When the employees return from travel they should send a copy of the College credit card charges to Purchasing.

    Travel requisitions of less than $1,000 and within your travel budget can go directly to purchasing as long as the two required signatures are present.

    Please submit a separate requisition for each part of travel: air, hotel, conference fees.

    Air travel: The birth date of travelers must be on the requisition. This is a requirement of Homeland Security. This information is confidential and will not be released or divulged to anyone outside the purchasing department.

    In order to get the flight booked as you wish, please go online and look up all flight information and attach to the travel purchase requisition. Forward this to purchasing ASAP so that they can make your reservation.

    Name: Please indicate the type of ID you will be using at check in. Remember the name on the reservation must match the name on the ID exactly. Please include your title (ex. Mr., Mrs., Ms., etc.).

    Hotel: In order to get exactly what you want -- go to the hotel website and put the reservation on hold with your personal card. Forward all of the information to Purchasing ASAP and they will transfer the reservation to the Daemen credit card. Ask the hotel to Fax our purchasing department the credit card authorization form or find out if it is available on the website. Upon check out, after they have charged the bill to the Daemen credit card, have them fax a copy of the bill to Purchasing @ (716) 839-8516.

    Incidentals: Any incidentals charged to your room cannot be charged to a personal card at checkout. When this is done, it removes the Daemen card and the full amount will be charged to you. Upon return, reimburse Daemen for any incidentals.

  17. The Daemen College fiscal year ends on May 31st. All invoices will be charged to the budget year in which the goods are received or the event takes place.

    The centralized purchasing function used by Daemen College offers the following benefits to our institution:
    1. Ensures vendors are aware of our tax-exempt status, thereby eliminating the time consuming process of removing sales tax charges from invoices.
    2. Ability to negotiate volume discounts, favorable return policy and/or waiving of shipping and handling fees.
    3. Demonstrates to our surrounding community, Daemen's commitment to support the local economy through the use of local vendors. These same vendors often participate and support Daemen Fundraising efforts.
    4. Ensures compliance with approved departmental budget constraints.
    5. Fulfills control requirements and documentation expectations for our annual institutional audit.
    In an effort to take advantage of cost savings, our purchasing department is now able to make on-line purchases through the use of a department credit card. Requests for on-line purchases should follow the same procedure as all other purchases.

    Credit Card Payment and Documentation Policies

    In order to insure timely payments to the bank for credit card transactions and to eliminate any interest being charged to your department on purchases made using your card, we are asking you to use the following process to pay these bills. Each month the Business Office receives a “Master Bill” of all credit card transactions for all cardholders. In addition, you will also receive an individual statement listing all the transactions that were charged to your card.

    Please follow the procedures below to authorize the Business Office to make payments to the Bank after you receive your credit card monthly statement
    • Fill out a standard Daemen College “Purchase Requisition” naming the bank as vendor. Sign and date the requisition.
    • Indicate on this form the Departmental Budget Account(s) you want to the expenses charged to. (You may use multiple budget account lines on the same requisition form to charge different transactions to different budget line items.)
    • Attach the original invoices for items you purchased (Hotel bills, rental car invoices, advertising, etc.) and indicate the purpose of each purchase.
    • Return the Purchase Requisition and original invoices to the Business Office.

    It is imperative that you send us this information within two business days of receiving the monthly statement. This is necessary since we pay the bank for all department credit cards with one check issued once a month. The bank only gives us a few days after we receive the monthly statement to pay without incurring interest charges and we need a few days in the Business Office to process the check.

    Please note that this credit card is to be used only for College related expenses. Since the College is a tax-exempt entity, New York State Sales Taxes should not be paid on any transaction. Tax-exempt forms are available in the Business Office if you need them

    The credit card should not be used for normal purchases of office supplies and equipment items. These purchases should continue to be made through the Daemen College Purchasing Department using the regular purchase requisition system. This will insure that issues such as audit compliance, price discounts, taxes, and shipping/return problems can be handled in an expedient manner.

    Please call the Business Affairs Office at extension 8218 if you have any questions.

    Gift Card Policy (effective 4.26.13)

    Any requests for reimbursement or purchase of gift cards should include the name of the individual(s) who are given the gift card(s). If there are several names, the Gift Card Summary Sheet should be used. If possible, the recipients should sign as proof that they received the card.

    NOTE: Gift cards should not be used as a form of payment to Daemen employees as they are considered taxable income.