PROCUREMENT

METHODS OF
PURCHASING
AND
COMMON MISTAKES
& ERRORS

METHODS OF PURCHASING

Check

Requests
Purchasing Card (P-Card)
Purchase Requests

CHECK REQUESTS
General Rule:
A check request is a charge commitment.
Purchases under check requests are limited.
Failure to follow procedure results in an
unauthorized purchase. The person who
made the purchase or who directed that it be
made, may be personally liable to pay the cost
and settle the matter with the supplier.

CHECK REQUESTS

UNLIMITED DOLLAR AMOUNTS

Postage, postage meters
Utility payments
Payments for travel, registration fees
Freight charges
Memberships, dues, participation fees associated
with memberships and subscription charges
stemming from membership
For other allowable areas see Procurement
Procedures: Check Request

CHECK REQUESTS

LIMITED TO TOTAL COST LESS THAN $5,000

Advertising
Books and subscriptions price support must
accompany check request
Mailing lists and mailing services including collating,
packaging and sorting
Repairs to equipment less than $5,000. Must involve
billable labor.
Laboratory/Chemical Analysis

CHECK REQUESTS

LIMITED TO TOTAL COST LESS THAN $5,000

Demurrage

charges
Consulting Services
Personal Services
See Procurement Procedures: Check Requests
for complete list

CONSULTING SERVICES

Definition Services which involve the rendering of advice

only
Under $5,000 can handle via check request
$5,000 and over handle via purchase request
Always use the standard consulting agreement available
on administrative forms website www.busfin.uga.edu/forms
Note: If a vendor is paid as a consultant, the vendor can not
bid on any resulting purchase
Agreements should address fees for services and
reimbursable expenses separately. Object code for services
is 75113 and reimbursable expenses are 75210

PERSONAL SERVICES
Personal

Services may include training and

instructional services, graphic design, etc.
Use the consulting services agreement until
such time as a personal services agreement
is available
Submit to Procurement with purchase
request and sole source justification if $5,000
or above

CHECK REQUESTS

COMMON MISTAKES AND ERRORS

Purchase

Construction Services
Purchase Consulting Services of $5,000+
Purchase Printing Services
Purchase Supplies Non-inventoried
equipment
Repairs that do not involve billable labor
Purchase Software

CHECK REQUESTS

COMMON MISTAKES AND ERRORS

Services

confusion between unlimited and

limited to $5,000
No WCD approval or failure to show WCD
approval number on the check request when
paying monthly services (WCD = Wireless
Communication Device)

PURCHASING CARD

PURCHASING CARD

Known as P-Card
It is a VISA card issued in an individuals name.
Obtain one by submitting P-Card Request Form
available at www.busfin.uga.edu/forms
Must attend a mandatory training session
$4,999 is maximum single transaction limit
Can not purchase inventoried equipment
Benefits:

Vendors realize faster payment

End user realizes more timely delivery

PURCHASING CARD
INVENTORIED EQUIPMENT

Any item which meets the following

Is basically nonconsumable and nonexpendable in nature;
Any item with an estimated usable life expectancy of 3 or more
years and an item acquisition cost of $3,000 or more; or,
Any item or items which the agency feels should be included in
personal property inventory even though it fails to meet the above
criteria

The following are inventoried regardless of cost: Books procured

through the Library Accounts, Firearms, Art Objects/Antiques, Vehicles

The following are inventoried if the unit cost is under $3,000 but $500
or over: Electronic office equipment, computer equipment, A/V
equipment and photographic equipment

PURCHASING CARD

COMMON MISTAKES AND ERRORS

Purchase

inventoried equipment especially

in the $500 arena of computers, audio visual
and photographic
Split purchases
Exceed the cards single transaction limit
Cardholder not addressing in detail in
WORKS what was bought, quantity, unit
price, and why it was purchased

Purchasing Card

COMMON MISTAKES AND ERRORS - Continued

Managers

not requiring detailed information

in WORKS and not reviewing the charge
against the actual receipt/invoice
Sales tax being charged
Purchasing statewide contract items from
non-statewide contract vendors.
Improper reconciliation of hard copy monthly
statements

Purchasing Card

COMMON MISTAKES AND ERRORS - Continued

Memberships

being purchased allowable

only via check request
Account in WORKS not being changed
especially important for conference and
workshop expenses such as catering, food,
etc.
Failure to change object code in WORKS

Purchasing Card Auditing

Internal

Auditing completes approximately 30

audits each year
Currently, in addition to the above audits,
they perform 10 audits strictly on the p-card
function
Controllers Division will be conducting
compliance reviews of p-card transactions.

Purchasing Card Auditing

Items

Reviewed by Internal Auditing

How is the p-card safeguarded?

Is the p-card being used by other than the
cardholder?
Is adequate department review performed?
Are hard copy documents being retained?
Is appropriate account number being charged?

Purchasing Card Auditing

Items included in the audit

Review transactions by vendor and dollar amount

Review for questionable vendors that may indicate

unauthorized use
Meals
Travel expenses
Inventoried Equipment
Intra-University Charges

Review for adequate documentation both hard copy and

WORKS

Purchasing Card Auditing

Items

Included in Audit

Timely approval in WORKS

Timely cancellation of cards after employee
termination or transfer to another department

Consequences

PURCHASE REQUESTS

PURCHASE REQUESTS

PARTS OF A PURCHASE REQUEST (1)

Date the request

Include account numbers, object codes, and dollar
amounts.
Recommended Vendor (at least one)
Include a delivery date - specify mandatory if a certain
delivery date is required.
List items use a noun to describe the actual item, include
quantity, unit of issue, cost per unit, description of item
(specifications), extended price (Unit cost X qty). Include
freight charges if known.
Any priced line item on a quote should be a line item on
the purchase request

PURCHASE REQUESTS

PARTS OF A PURCHASE REQUEST (2)

Attachments price support, quotes, drawings.

Paperwork address where Procurement should
send the department copy of the order
Deliver to Address specify if different than
paperwork address this is where the vendor will
deliver the service or item or where Central
Receiving will re-deliver the items.
Point of contact and phone number

PURCHASE REQUESTS
SPECIFICATIONS
Main Types:
Fully competitive generic express minimum
needs without any unjustified bias toward a specific
brand.
Brand Name or Equal List one brand name and list
the required minimum characteristics to determine
equality.
Sole Brand see discussion on following pages.
Sole Source see discussion on following pages.

PURCHASE REQUESTS
SPECIFICATIONS - continued

Description of need how and where items/services will

be used.
Use a noun to describe the item/service
Physical Requirements Identify the measurable
physical, quality and functional characteristics common to
several manufacturers. Include types/grades of material,
size, weight, shape, quality, etc. If not competitively
bidding or bidding on an as equal basis list catalog
numbers, part numbers, and manufacturer name.
Installation Requirements
Training Requirements
Service/Warranty Requirements

PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND
Only

applies to purchases $5,000 or greater

which are not available on a statewide
contract or agency contract or available from
a mandatory source.
Sole Brand only one brand of equipment will
meet the requirements of the end user.
Sole Source A sole brand requirement
where the equipment/service is only available
from one source.

PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND

Examples of Valid Sole Source/Sole Brand

Requirements:

Components of a major assembly

Compatible items to be added to an existing system.
Compatibility with substantial parts inventory and/or
service capabilities
Physical design characteristics to satisfy aesthetic
requirements.
Matching and inter-changing with preponderance of
existing equipment.
One of a kind equipment
Books, publications, subscriptions, etc.

PURCHASE REQUESTS

ALL SOLE SOURCE REQUIREMENTS

The following must be received with the purchase

request in Procurement:
1. A completed sole source/sole brand form with both
end user and department head signature form
available on administrative forms website
2. A letter from the original equipment manufacturer
(OEM) stating they are the sole manufacturer and sole
seller of the item - In the case where the sole source is a
reseller, the letter from the OEM must state the reseller
is the only authorized reseller TO the state of Georgia

PURCHASE REQUESTS
SOLE SOURCE/SOLE BRAND
ITEM COST $10,000+
Matrix

is required
List minimum specifications down the side
List evaluated brands across the top
Show how each brand meets or does not
meet the minimum requirement specified

PURCHASE REQUESTS
CHEMICAL PURCHASES
Central

Research Stores is the sole agent for

submitting purchase requests for lab
chemicals to the Procurement Office - This
applies only to main Athens campus
Lab chemicals can not be purchased on
indefinite blanket orders.

PURCHASE REQUESTS
RADIOACTIVE MATERIALS

All orders for radioactive materials must be placed via

purchase request thru the Procurement Office
Direct purchases from vendors are prohibited
Athens campus radioactive material deliveries will be
made to Radiation Safety
Must be classified as an authorized user and granted
access to an electronic database by Radiation Safety
which will issue a B number (authorization tracking
number) for each item ordered - This number is
unique and not reusable
Include B number on purchase request

PURCHASE REQUESTS
CONSTRUCTION

Only use purchase request procedures

Definition Construction involves one or more of the
building trades, such as electrical, mechanical, heating,
air conditioning, plumbing, carpentry, painting, acoustical
or ceramic tiling, paving, excavating, grading, metal
fabrication, landscaping, glass fabrication and/or
installation, masonry, plastering, roofing, well drilling,
concreting, building demolition, elevator installation,
insulating, fencing, floor covering, environmental chamber
construction and installation, greenhouse construction,
etc.

PURCHASE REQUESTS
EMERGENCIES

Hard copy fax directly to Contracts and Grants or

Expenditure Control depending on funding - Can
also be hand-carried
Electronic PR- Place a Y in the emergency field in
the system. Do electronic emergency justification
Always specify the required delivery date
Always submit an emergency justification letter
If $5,000 or above and sole source/sole brand
submit sole source/sole brand form - also matrix
should be submitted if unit cost $10,000 or above

PURCHASE REQUESTS
INFORMATION TECHNOLOGY

IT includes computer systems, computer related

equipment, peripherals, and software
CESS Approval required for all IT purchases totaling
$10,000 or more
CESS approval guidelines are at www.eits.uga.edu/cess
Statewide contracts exist for microcomputer purchases
Obtain current pricing information (less than 30 days old)
from vendor and submit with purchase request
See ordering guidelines for processing purchase
requests with various vendors at
www.busfin.uga.edu/procurement and then see the
vendors listed under Commodities and Contracts
Dell get quote from Premier page

PURCHASE REQUEST

COMMON MISTAKES AND ERRORS

All

required information not submitted with

purchase request

Missing paperwork address

Missing delivery address
Missing departmental point of inquiry
Inadequate specifications- no catalog number
No sole source/sole brand justification
No letter from original equipment manufacturer
certifying sole provider

PURCHASE REQUEST

COMMON MISTAKES AND ERRORS

Vendor

provided is not the statewide contract

vendor
No quote from vendor sent to Procurement
especially needed with Dell and other
statewide contract computer vendors, and
necessary for sole source procurements.
No CESS approval for IT $10,000 +
Failure to include B# for radioactive materials

PURCHASE REQUEST

COMMON MISTAKES AND ERRORS

Failure

to include size/unit of issue for

radioactive isotopes and research chemicals

Radioactive

isotopes with short shelf life are

ordered too far in advance of required actual
delivery.

PROCUREMENT IN THE FUTURE

Researching

commercial web based procure

to pay and E-Procurement systems
Electronic purchase requests- status tracking
on line
Major vendor catalogs available on-line
Orders submitted electronically to vendors
Visibility of minority and small business
suppliers

QUESTIONS & ANSWERS

Contact Information:
Annette Evans
Phone: 706-542-7066
Email: [email protected]
www.busfin.uga.edu/procurement