Dated:9/27/11
Replaces: 10/24/07
Internal Policy and Procedures
Illegal Purchase Process
POLICY:
Purchases of goods or services over $5,000 ($50.00 and over for printing) with funds deposited with the University of Wisconsin-Madison (regardless of funding source) must comply with Wisconsin Statutes.
PROCEDURES:
1. Requisition Processing will:
1.1 Process requisitions over $5,000 ($50.00 and over for printing), for which the order appears to have been placed, as follows:
A. Assign the six-digit vendor number.
B. Assign to an agent electronically using batch RQAS log entry.
C. Place paper requisition in agent's mailbox.
2. Agent will:
2.1 Review requisition to verify whether an illegal purchase has been made.
A. If no invoice is attached to requisition marked “confirming”, call department to confirm that the order has been placed or phoned in.
B. If not a confirming requisition, process according to standard purchasing procedure.
C. If purchase is illegal, proceed to 2.2.
2.2 Write commodity code and contract/waiver number, if applicable, in the appropriate areas of the requisition.
2.3 If transaction exceeds $5,000, refer to procedure 4.
2.4 If justification is not attached, note on requisition which illegal purchase form letter is required:
Letter #1: Illegal Purchase
Letter #2: Illegal Purchase of Services
Letter #3: Justification of illegal purchase over $5,000.00
Letter #4: Justification of illegal purchase over $50.00 - printing
Option: Letter #5: Cancellation of Illegal Purchase Requisition
2.5 Requisition entry does an "Enter Only" then gives the admin. staff accountable for illegal transactions to release.
2.6 Place requisition in Illegal Purchase Requisition mailbox of the staff member who processes the letters.
3. Person responsible for releasing illegal purchase requisitions and/or sending the letters will process as follows:
3.1 Log requisition information into Confirming Requisition Log.
3.1 If justification is attached, a no-print PO is released. If indicated by agent, letter #1 is prepared and mailed to department person and Dean/Director (CO/NOP).
3.2 If justification is not attached, complete one of the illegal purchase letters referenced above(as indicated by agent) and send to the department person with a copy to the dean's office.
A. Create an electronic requisition action (RRFI) and type letter number ___, and place the requisition and copy of the letter into a dated file for follow-up.
a. If justification has been approved by agent, issue a no-print purchase order (NOP print format type). Agent reviews justification, if not acceptable, they do the follow-up.
b. If an unacceptable justification is received, give to agent to determine whether letter should be returned to department requesting further information (copy to Dean's office). If second letter sent, a RRFI requisition action will be created "Additional info requested".
c. When additional justification is returned, issue a no-print purchase order (NOP print format type).
d. Process with other COIA’s. Take invoice to accounting for processing.
B. If justification is not received within 30 days of original letter, Agent will do the follow-up.
a. Send the original requisition and attach copy of requisition cancel memo to Business Services Accounting File Room by placing in their mail slot.
4. Refer transactions of $24,999 and over to the Director of Purchasing Services.
4.1 Send the original requisition and attach copy of requisition cancel memo to Business Services Accounting File Room by placing in their mail slot.
4.2 If justification is not attached, the same procedures will be followed as in 3.2.
ORD's over $25,000 using 144 funds, agent must check for debarment (see IPP3)
Copy of original requisition, invoice and justification are put in the vendor file.
REFERENCES:
PPP #3 -- Low Dollar Purchases
PPP #6 -- Illegal Purchases
Wisconsin Statutes 16.71(1)
Wisconsin Statutes 16.77(2)
Procurement Manual (PRO-E-8)