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Northern Arizona University
Purchasing Policy and Procedure

Authority for Procurement

POLICY:

Purchasing Services is the central authority for the procurement of goods and services required by any University department or agency. All procurements must be made in accordance with the Board of Regents' Procurement Code and Purchasing Services's policy.

AUTHORITY FOR COMMITTING UNIVERSITY FUNDS

No individual other than the Director of Procurement has the authority to place an order directly with a vendor, to enter into a contract or lease, or to obligate the University in any way unless:

1. The University President specifically authorizes an individual to do so in writing.

-or-

2. The Director of Procurement delegates purchasing authority to specific individuals for a specific term or purpose.

COMMITTING UNIVERSITY FUNDS

The commitment of University funds is authorized only by issuing a purchase order or signing an approved contract.

UNAUTHORIZED PROCUREMENTS

Procurements or other commitments made by unauthorized personnel are not legal and binding upon the University and may result in a personal obligation for the individual making the procurement or commitment.

EXCEPTIONS

The Director of Procurement may make an exception and issue a confirming purchase order when an employee has made an unauthorized procurement. To obligate the University to pay for an unauthorized procurement, the Director of Procurement may require a written explanation by the individual making the commitment and written approval from the appropriate provost/vice president. This explanation and the provost/vice president's approval will be included in the contract file for audit purposes.

AUTHORITY FOR FUNDING PROCUREMENTS FROM DEPARTMENTAL BUDGETS

To authorize Purchasing Services to procure goods or services with funds from departmental budgets, an approved requisition (RX) must be issued. This certifies that:

1. Sufficient funds are available in the account.

2. The procurements are a legitimate expenditure against the account.

3. The necessary internal approvals required by the appropriate department chair, dean or vice president/provost have been obtained.

METHOD OF ENCUMBERING FUNDS

To encumber funds a purchase order (PC or PD) must be issued.