Policies & Procedures

Purchasing Policies

PURCHASING AMOUNTS OF $1,000 OR MORE

All purchases for $1,000 or more for goods or services must be executed using an approved university Purchase Order.

  • The Purchase Order must be approved and signed prior to purchasing the goods or services.
  • The department originating the purchasing transaction must submit a purchase requisition to the Business Office requesting the issuance of a purchase order. See instructions for submitting a Purchase Requisition form in SU’s Purchasing Procedures.
  • The Budget Officer and Vice President responsible for the account to which the purchase will be charged, plus additional fund-specific Business Office approvers (if applicable) must approve the purchase requisition.
  • The Business Office will produce a purchase order as quickly as possible after receiving an approved purchase requisition.
  • The Controller may sign purchase orders for amounts less than $10,000. The Associate Vice President for Finance & Accounting may sign purchase orders for amounts up to $100,000. The Vice President for Finance and Administration may sign purchase orders for amounts up to $500,000. The President must sign purchase orders for amounts equal to or exceeding $500,000.
  • A budget encumbrance shall be established for the amount of the purchase order. The budget encumbrance shall be partially or fully liquidated upon receipt of the purchased goods or services and payment of the related invoices.
  • Except for travel-related expenses, purchases of $1,000 or more shall not be paid by personal credit card, SU corporate card, or petty cash.  Rather, these purchases shall be paid with a university check or wire transfer, as determined appropriate by the Business Office. 
PURCHASING AMOUNTS LESS THAN $1,000
  • Purchases of goods or services for amounts less than $1,000 may be processed without a university purchase order; however, one may be used at the department’s or the vendor’s request.
  • The department budget officer or his/her delegate may directly transact with the vendor for purchases of goods or services less than $1,000. No advance approval of the Business Office is needed; however, purchases of $500 or more must be approved by the appropriate member of President’s Staff prior to the purchases being made.
  • The department may pay for goods or services at the time of purchase using a university Corporate Card. The department may also wait until receiving an invoice for the purchase and pay the invoice with a university accounts payable check.
PURCHASING AUTHORITY LIMITED TO BUDGET AVAILABILITY
  • A department’s spending authority is limited to the available program expense budget for the department. Budget availability is determined by reducing the department’s program expense budget by actual year-to-date expenditures and outstanding encumbrances.
  • Budget Checking in Colleague (SU’s accounting system) will prevent purchase requisitions, invoices, and check requisitions from being entered if there is a negative budget balance available. The issuing department will then have to contact the budget office to request a budget transfer.  
PURCHASING AUTHORITY RESTRICTED ON CERTAIN PURCHASES
  • Since Southwestern operates a decentralized purchasing operation, departments are allowed to purchase most goods and services without additional approvals.
  • Exceptions are noted below:
    • The purchase of computers and computer-related hardware and software require the advance approval of Information Technology Services.
    • All contracts for renovation and maintenance of physical plant assets, require advance approval of the Associate Vice President for Facilities Management, along with the purchaser’s Vice President (for contracts up to $25,000), or Vice President for Finance & Administration (for contracts up to $500,000), or the President (for contracts over $500,000).
CORPORATE CARD
  • See procedures for use of the Corporate Card here.
REQUIRED VENDOR INFORMATION
  • As required by the Internal Revenue Service, IRS Form W-9, Request for Taxpayer Identification Number(s) and Certification, must be collected from all vendors prior to issuance of a university accounts payable check. (Get a copy of IRS Form W-9 here).
  • A vendor subject to backup withholding will have the appropriate tax withheld from payment in accordance with IRS regulations.
CONTRACT FOR SERVICES
  • All payments to vendors for performance of services must be documented by a written contract in advance of the purchase of services.
  • All contracts for performance of services for the University must be approved and signed appropriately. See instructions for Contract Review and Signature Requirements
  • Contracts with international persons or entities should be reviewed by the Director of Payroll and Tax Compliance for tax compliance prior to execution.
    • Additional documents may be required from the contractor.
  • The Human Resource department is responsible for determining whether payment for services represents an employee (and thus should be paid through Payroll) or independent contractor (and thus should be paid through Accounts Payable) in accordance with IRS guidelines.
  • All payments issued to independent contractors through accounts payable will be reported on IRS form 1099Misc or 1099-NEC, as appropriate, at the end of the calendar year in accordance with IRS regulations.
  • Unless specifically approved by Human Resources, all payments for services to university employees will be processed through Payroll and subjected to normal payroll taxation.
  • Payments to contractors are subject to the same purchasing rules as non-contract purchases.
  • Fully executed contracts with multiple payments required should also be submitted with a purchase order.
  • A check requisition should accompany all other fully executed contracts.
TRAVEL POLICY
  • The travel policy has been revised and is now a stand-alone policy.  You can find it here.
ACCOUNTS PAYABLE CHECK RUNS
  • The Controller will determine the frequency of check runs during the week, and establish cut-off dates for submitting requests for payments to be included in the check runs. Requests for payments received after the published date will be held and paid on the next check cycle. 
  • Generally, checks are run weekly on Wednesdays.
  • Completed (fully approved) requests for payment must be received in the Business Office by Monday at noon in order to be included in that week’s check run.
    • Any questions about these payment requests by Business Office staff or additional items/approvals needed will delay the processing.  
    • Do not wait until the last minute to submit payment requests.  The earlier they arrive in the Business Office, the better!
CHECK DISBURSEMENT AUTHORIZATIONS
  • Accounts payable checks are automatically signed at the time of printing using a digital electronic signature. The Controller and Associate Vice President for Finance and Accounting are responsible for maintaining appropriate security over the digital electronic signature and blank check stock.
  • Check disbursements for amounts greater than or equal to $1,000, but less than $100,000, require the authorization of one of the following, or their designee: Assistant Controller, Controller, Associate Vice President for Finance and Accounting, Vice President for Finance and Administration, or President.
  • Check disbursements for amounts greater than or equal to $100,000 require two authorizations from the following: Controller, Associate Vice President for Finance and Accounting, Vice President for Finance and Administration, or President.
    • The Assistant Controller can fill in for the Controller in their absence.
  • All checks submitted for authorization shall be accompanied by the system-generated check disbursement log (XCVO), grouped by amount stratification as noted above. The authorizing personnel shall ensure that all checks are accounted for.
ACCOUNTS PAYABLE RECORD RETENTION
  • Purchasing/Accounts Payable will retain the following documents (if applicable) for all check disbursements, in accordance with the University’s Record Retention Policy: Check copy, original invoice, check requisition form, fully executed contract, purchase requisition, Report of Business Expenses, and any other substantiating documentation related to the transaction.
  • Copies of all contracts and warranty agreements shall be stored in the SU Bonfire system.