Administrative Policies and Procedures Manual - Policy 4320: Purchasing Goods Off Campus
Date Originally Issued: 11-01-1991
Revised: 10-15-1995, 07-01-2004, 07-01-2005, 03-01-2006, 05-22-2006, 03-25-2008, 01-01-2012
Subject to Change Without Notice
Authorized by: UNM Regents' Policy 7.4. "Purchasing"
Process Owner: Chief Procurement Officer
Employees must use good judgment when incurring expenses and every effort should be made to assure the best prices and values are obtained. All purchases must comply with "The University of New Mexico Board of Regents' Policy Manual" and "Allowable and Unallowable Expenditures" Policy 4000, UBP. This policy describes the currently acceptable methods for purchasing goods off campus, which include the Purchasing Card (P-Card), the Purchase Requisition, and/or reimbursement through the DP-EZ process. Departments must provide a detailed description of the UNM business purpose of each item purchased.
1.1. Gross Receipts Tax
The University does not pay gross receipts tax on purchases of tangible property from nongovernmental entities (except restaurant charges and in some cases construction materials). The University Purchasing Department will send verification of the University's tax-exempt status when the Purchase Order is issued. The University does pay governmental gross receipts tax, if charged, on the purchase of tangible property sold by governmental entities. Any questions pertaining to the University's tax-exempt status should be referred to the Purchasing Department.
1.2. Conflict of Interest
New Mexico law states that employees of the University, individuals employed at UNM in the past twelve (12) months, public and student members on advisory boards and committees, and UNM volunteers serving in an official capacity may not use their position to enhance their direct or indirect financial interest or use confidential information learned as employees for anyone's private gain. If any of these individuals have a direct or indirect financial interest in a firm selling goods to the University, proof of compliance with Regents' Policy 6.4 "Conflict of Interest and Code of Conduct" and Policy 3720 "Conflicts of Interest" UBP, must be submitted to the Purchasing Department before the purchase order may be initiated.
2. Purchasing Card (P-Card)
The P-Card may be used to purchase goods, materials, supplies, non-capital equipment, and non-professional services on behalf of UNM with pre-approved vendors, in accordance with requirements and limitations determined by the Purchasing Department.
To apply for a P-Card, departments should contact the Purchasing Department. The individual with budgetary responsibility for a department's accounts will determine the limits for the cardholder, which usually does not exceed $5000.
3. Purchase Requisition
A Purchase Requisition may be used to purchase goods, supplies, equipment, and services by logging into the LoboMart site from the UNM portal. The purchases of services must comply with "Purchasing Services from Independent Contractors" Policy 4325, UBP. Departments must complete a separate Purchase Requisition for each suggested vendor. The electronic Purchase Requisition will be automatically forwarded to predetermined departmental administrators and the appropriate Financial Services accounting office for approval. Any required supporting documentation, such as sole source justification, must be mailed, faxed, or e-mailed to the Purchasing Department referencing the Banner Requisition number.
3.1. Purchase Order
A Purchase Order is issued by the Purchasing Department based on an approved Purchase Requisition. A Purchase Order is the official authorization for a vendor to make a shipment or delivery and can be authorized only by the Director of Purchasing or designee. A Purchase Order is a legal contract binding the University and the vendor and contains the University's standard "Terms and Conditions." The University will not honor commitments made on any other basis.
3.1.1. Changes to Purchase Orders
Departments requiring changes to an existing Purchase Order must notify the Purchasing Department by e-mail at firstname.lastname@example.org.
4. Request for Direct Payment
To request checks for transactions that cannot be purchased with a P-Card or Purchase Requisition, departments must complete a Direct Pay Approval (DPA) form using the Banner form FZADPEZ. The use of the DPA form has been pre-approved for certain specific types of transactions listed on the Pre-Approved Direct Pay Transactions table. Payments for items not listed may not be processed on a DPA form without prior written approval from the Chief Procurement Officer of the Purchasing Department. Attach supporting documentation to the DPA form, obtain required signatures, and forward it to the applicable Financial Services accounting office for approval.
5. Reimbursement for Purchases
Employees should receive advance approval from their supervisor before spending personal funds for a University purpose. Reimbursements for goods purchased by an employee on behalf of the University will be reviewed for appropriateness and may be denied. Incremental purchasing, splitting one large purchase into several small purchases, is prohibited. Items not authorized for reimbursement include salary payments, payments for outside services, and any unallowable expenditure. The University will not reimburse employees for purchases they make from entities that are prohibited from selling directly to the University.
If an employee uses personal funds to purchase goods on behalf of the University, the employee may request reimbursement for up to $1,000 by submitting the required documentation to the departmental employee authorized to complete a Direct Pay Approval (DPA) form using the Banner form FZADPEZ, in accordance with Financial Services procedure. If the reimbursement is for expenses associated with entertainment, the name and affiliation of each person entertained must be listed on the DPA form. Entertainment expenses must have a valid University business purpose and must include individuals from outside the University community. The person in the department who has authority over the account and is in a position of authority over the employee who is being reimbursed, must approved the form. Requests for reimbursement should be processed no more than ten (10) days after the date of purchase.
6. Petty Cash
Departments that have been authorized to have a Petty Cash Fund may use Petty Cash to purchase small value items without having to go through the normal procedures involving the Purchase Requisition or the P-Card. For use of the department's petty cash fund, refer to the "Petty Cash Fund" Policy 7210, UBP.
7. Related Links
UNM Regents' Policy 7.4. "Purchasing"
"Allowable and Unallowable Expenditures" Policy 4000, UBP
UNM Regents' Policy 6.4 "Conflict of Interest and Code of Conduct"
"Conflicts of Interest" Policy 3720, UBP
UNM Purchasing Department
"Purchasing Services from Independent Contractors" Policy 4325, UBP
Pre-Approved Direct Pay Transactions Table
"Petty Cash Fund" Policy 7210, UBP