5.19.1 Purchasing: General Policies
Objective #
To provide general policies on the purchase of supplies, equipment, and services from outside vendors for the University of Tennessee Foundation (UTFI).
General Policies #
All purchases must be for official UTFI use or benefit only. All goods and services purchased by UTFI must be in support of UTFI’s mission. Departments may not requisition materials, supplies, equipment, or services unless funds have been budgeted and are available for these purchases. The requisitioning department is responsible for determining that all items to be purchased are necessary. Generally, all materials, supplies, equipment, or services from outside sources necessary for departmental operations are acquired either through direct purchase or as gifts to UTFI. UTFI personnel who are connected in any way with requisitioning or procuring equipment, supplies, and services used by UTFI shall not accept personal gifts, gratuities, or kickbacks (as defined by Federal Acquisition Regulation 52.203-7) that might influence the selection or purchase of such materials or services. Generally, bartering with outside vendors for goods and services is prohibited. UTFI may not, under any circumstances, be used to avoid or circumvent university procurement rules and regulations. Any purchases for the use or benefit of the university must be made in accordance with university procurement rules and regulations.
Limits #
Purchases of Less Than $10,000. Purchases of goods or services of less than $10,000 may be made by departments based on their discretion. Departments may not artificially divide purchases so as to appear the purchase is less than $10,000 or to make multiple purchases or request multiple invoices for single purchases of identical goods or modular components from the same vendor. Purchases of identical goods or modular components from the same vendor of $10,000 or more must be initiated through the contracts process. Departments are encouraged to use vendors that have been awarded contracts by the University of Tennessee. https://procurement.tennessee.edu/purchase-orders/ Methods for making purchases within this range are as follows:
- Invoice Purchases. Single purchases of less than $10,000 may be made from vendors who will provide goods and services on credit without a purchase order and will invoice UTFI after delivery. Invoices for such purchases should be sent directly to the department receiving the goods or services and processed for payment. All invoices should comply with Fiscal Policy 5.17 Processing Invoices.
- Departmental Purchases with Personal Funds. Purchases made with personal funds should comply with Fiscal Policy 5.145 Miscellaneous Reimbursements
- Procurement Card Purchases. If a department has a UTFI-issued procurement card, the card may be used for making single purchases of goods or services of less than
$10,000 (see 5.18 Procurement Card to make certain the purchase may be made with a procurement card). Procedures for making credit card purchases will be provided to departments when the cards are issued.
Purchases above $10,000 #
All purchases above $10,000 will be coordinated through the UTFI Contracts department (?) and comply with Fiscal Policy 5.7 Contracts.
Restrictions on Certain Purchases Personal Use Items #
Personal Use by Employees. Items for personal use by employees may not be purchased with UTFI funds. These items may include greeting cards, flowers, food, or gifts for any occasion, among other items. Departments may not use UTFI funds to purchase items for employees and allow the employees to reimburse UTFI. Employees may not use UTFI’s letterhead in placing orders for personal purchases nor use UTFI’s name or tax ID number to avoid paying sales taxes when making personal purchases. Personal Use for Official Functions. Personal items required for conducting official departmental activities or business may be purchased through usual procurement procedures. An explanation of the reason and use for the item(s) must be provided with the payment request.
Purchases from UT Central Supply and Bookstores #
UTFI personnel who are purchasing items for UTFI use from the UT central supply stores, university bookstores or other university departments should provide their department’s cost center or WBS element at the time of the purchase, for the purpose of a departmental transfer. Reimbursement to UTFI employees for purchases made at the UT central supply stores, university bookstores or other university departments is prohibited.
Purchases From Grant or Contract Funds #
Purchases from grant or contract funds will be made in accordance with regular UTFI purchasing policies unless the governing document (grant or contract) specifies alternate procedures.
Gifts or Consignment of Equipment #
If a department is offered merchandise and/or equipment as an outright gift or on consignment, permission to accept or receive this merchandise should be requested by letter to the Chief Financial Officer. A complete description should be given of the merchandise or equipment and a clear statement of the conditions of the gift or consignment. June 1, 2021