Procurement Services Manual

Introduction
Scope
RIT Procurement Philosophy

General Policies
Requisition Procedures
Methods of Purchasing
Special Procurement Policies
Receiving Procedures
Accounts Payable Procedures

Introduction

Subject Number: 1.01
Date issued: 1/1/95
Revised: 3/8/10

The Purchasing Department and other designated Purchasing Agents are responsible for:

Providing the business skills and coordinating when necessary, appropriate technical skills required to purchase all goods, supplies, equipment and services necessary for the continuous operation of the Institute, including:
- communicating with suppliers in matters of price, quality and delivery at both the quotation stage and ordering stage of procurement
- identifying alternative sources of supply through regular commodity reviews
- negotiating with suppliers
- communicating with major departmental users to stay current with planned needs
- helping departments develop specifications for the required product services
- providing acceptable terms and conditions for procurement
Defining, maintaining and providing access to processes and records to support established objectives.

The Director of Purchasing is responsible for establishing, maintaining, and ensuring compliance with purchasing policies and procedures.

Delegation of Purchasing Authority

The Director of Purchasing may delegate purchasing authority to decentralized areas with the approval of the Vice President of Finance and Administration. Those areas with delegated purchasing authority are subject to policy compliance verification by the Director of Purchasing. Any local purchasing policies differing from the RIT Purchasing Policy must be approved by the Director of Purchasing.

All Purchasing Department personnel and other department personnel involved in procurement are responsible for understanding and complying with these policies and procedures. Any situation requiring exception to or variation from these policies and procedures should be brought to the attention of the Director of Purchasing. The Director of Purchasing will recommend to the next higher level of authority exception to or variation from these policies and procedures for final approval. The appropriate reason for the exception and the approval of the Director of Purchasing must be documented and available for verification.

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Scope

The purchasing manual describes the policies and procedures for processing all transactions having a bearing on cost and delivery of goods, supplies, equipment and services.

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RIT Procurement Philosophy

Subject Number: 1.02
Date issued: 1/95
Revised: 6/22/11

The Procurement Services office (PSO) ensures that all supplies, materials, equipment and services required to conduct official University business are procured at the lowest possible cost. Cost is defined as the optimum combination of price, quality, availability and service. PSO will implement cost control programs and offers operational support in areas such as accounts payable, inventory control, physical distribution and surplus asset disposal. PSO operates in accordance with all accepted purchasing practices while promoting and developing the highest level of professionalism.

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Policies and Procedures - General Policies

Interdepartmental Relations

Subject Number: 2.01
Date issued: 1/1/95
Revised: 6/30/99

Policy:

Communication between the requisitioning department (Requisitioner) and Purchasing Department (Purchasing Agent) is a mutual responsibility.

The Requisitioner should inform the Purchasing Agent when:

developing an item specification for planned procurement
requiring that specific suppliers are to be added to a bid list
planning procurement action involving a potential sole or single source of supply
needing to identify sources of supply for a specific item or commodity
supplier services or products are not in compliance with specification or expectation

The Purchasing Agent will:

assist the Requisitioner in developing specifications;
assist the Requisitioner with information about sources of supply
manage quotation requests and the bid process for selection of the most appropriate source of supply
establish and conduct negotiations with successful bidders
communicate with suppliers for information prior to and during the purchasing process
update the Requistioner with information relative to price, quality, and delivery of a requisitioned item during the purchasing process

All information, including notes, reports and correspondence communicated between suppliers and requisitioners, pertaining to negotiations or purchase decisions, should be maintained by the Purchasing Agent.

Requisitioners are encouraged to consult with the Purchasing Agent concerning materials, specifications or other general information. The Purchasing Agent will arrange supplier conferences and obtain product information and other pertinent item and supplier data when requested.

Requisitioners are also encouraged to notify the Purchasing Agent in the case of poor service or inferior product supplied by a supplier. The Purchasing Agent will act accordingly to correct such situations.

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Legal and Ethical Conduct

Subject Number: 2.02
Date issued: 1/1/95
Revised: 6/30/99

Policy:

RIT complies with all laws governing its operation and conducts its affairs in keeping with the highest moral, legal and ethical standards.

Compliance with the law (including anti-bribery and anti-trust laws and other applicable regulatory law) means not only following the law but also conducting RIT business such that RIT will deserve and receive recognition in all areas of good citizenship. Even where the law does not apply, applicable standards of ethics and morality relate to our activities and require the same diligence and attention to good conduct and citizenship.

Any individuals acting as an agent for RIT should follow the Code of Ethics set forth by the National Association of Educational Buyers (Section 2.03 of this manual)

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Code of Ethics

Subject Number: 2.03
Date issued: 1/1/95
Revised: 6/30/99

Policy:

Code of Ethics, National Association of Educational Buyers (NAEB)

Give first consideration to the objectives and policies of my institution.
Strive to obtain the maximum value for each dollar spent.
Decline personal gifts or gratuities.
Grant all competitive suppliers equal consideration as state or federal statute and institutional policy permit.
Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
Demand honesty in sales representation whether offered through a verbal or written statement, an advertisement, or a sample of the product.
Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.
Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier, and/or be willing to submit any major controversies to arbitration or other third-party review, insofar as the established policies of my institution permit.
Accord a prompt and courteous reception as conditions permit to all who call on legitimate business missions.
Cooperate with trade, industrial and professional associations, and with governmental and private agencies, to promote and develop sound business methods.
Foster fair, ethical and legal trade practices.
Counsel and cooperate with NAEB members and promote a spirit of unity and a keen interest in professional growth among them.

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Conflict of Interest

Subject Number: 2.04
Date issued: 1/1/95
Revised: 6/30/99

Policy:

Decisions about Institute business and the use or disposition of RIT property are to be made solely in terms of the benefits to RIT and are not to be influenced by any private profit or other benefit to the RIT people who take part in such decisions. All members of the Institute community have an obligation to avoid any conflicts of interest or even the appearance of a conflict of interest.

Potential conflicts of interest or their appearance are to be reported immediately and uniformly (as described in subject number 2.01). Each situation will be reviewed on a case-by-case basis and action will be taken as necessary to ensure that any Institute transaction is completed in the best interest of RIT.

Failure to report or to act in concert with the spirit of this policy could result in disciplinary action up to and including termination.

Possible conflicts of interest may include, but are not limited to, the following examples:

An Institute employee acting as both seller and purchaser in the same transaction(s). (Goods or services may be involved.)
An Institute employee who enters into business negotiations on behalf of RIT and with close relatives or members of his/her immediate household.
Situations in which an Institute employee could influence decisions in which a relationship of any kind exists with those involved outside the Institute.
Situations in which an Institute employee is (or expects to be) retained as a paid consultant or contractor by an organization seeking to do business with RIT, or whenever a transaction will entail a payment of money or anything else of value to the staff member, a close relative or a member of that person's household.

Procedure:

Any conflict of interest, potential conflict of interest or appearance of a conflict of interest should be immediately reported in writing by the affected employee to his/her department head.

The department head will forward such report to the Director of Personnel for inclusion in the employee's personnel file and for determination regarding an appropriate Institute response. The Director of Personnel will consult with the Vice President for Finance and Administration and others as necessary and will advise the department head and the vice president for the affected division regarding action to be taken.

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Unauthorized Purchases

Subject Number: 2.05
Date issued: 1/1/95
Revised: 3/8/10

Policy:

No individual has the authority to enter into purchase contracts or in any way to obligate Rochester Institute of Technology for a procurement indebtedness unless specifically authorized to do so by the President, V.P. of Finance and Administration, or the Director of Purchasing. Any such negotiations are considered as unauthorized purchases and the individual may encounter a personal obligation to the supplier. Firms ordinarily doing business with the Institute are aware of this policy and are advised that all purchases chargeable to Rochester Institute of Technology must be authorized by an official purchase order. Exclusive of the petty cash form, invoice payment form, or Visa Purchasing procurement card, the Institute will not reimburse employees for the cost of such purchases on behalf of the Institute unless previous arrangements have been properly made and approved.

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Meeting and Interviewing Suppliers

Subject Number: 2.06
Date issued: 1/1/95
Revised: 6/30/99

Subject:

Rochester Institute of Technology considers its suppliers valuable assets and their good will is highly valued. Complete representation of products and technological expertise are important in keeping staff abreast of the latest technology and market trends.

The Department of Purchasing will be happy to assist suppliers with introductions to user departments who may have a need for products and in situations requiring personal calls.

Policy:

Sales calls to Institute departments should be by appointment only. Door-to-door solicitation and random calls are discouraged anywhere on the RIT premises. Use of RIT resources (bulletin boards, telecommunications systems and interdepartmental mail) to solicit individuals or departments is strictly prohibited except where contracted exemptions exist. Suppliers are required to comply with all rules and regulations set forth by RIT while on the premises and to comply with posted access restrictions.

Procedure:

Departments are encouraged to seek information on products and services from supplier representatives, who are valuable sources of information. The Department of Purchasing should also be advised of needs so it can assist in locating suppliers and developing a procurement plan. To help you deal with supplier representatives and avoid some common pitfalls, the following guidelines are suggested:

Advise Purchasing before contacting suppliers. We can provide information.
Contact more than one supplier whenever possible. Competition is Purchasing's most valuable asset.
Give the same information to all suppliers, so that each has an equal opportunity to compete.
Discuss all aspects of the need. Use a life cycle approach - what happens after the department owns it? (Maintenance, operational skills, repair, etc.)
State on your purchase requisition a complete description of the item and attach all pertinent information about the suggested supplier (name of company, representative, address, telephone number, product literature, etc.)
DO NOT COMMIT THE INSTITUTE BY TELLING A SALESPERSON THAT HE OR SHE HAS THE ORDER. ONLY A SIGNED PURCHASE ORDER CAN COMMIT THE INSTITUTE.
Never accept gifts from suppliers.
Guard against overreaction to a supplier-created crisis: "Price goes up after the first of the month"; "This is the last one in stock"; and so forth.
Don't wait until the last minute to submit your requisition. The more time both Purchasing and the supplier have to process the purchase, the better a job can be done for you.
Orders, as the result of unsolicited phone calls, faxes and e-mails should not be placed. Often such items have been found to be overpriced and of poor quality.

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Gifts and Gratuities

Subject Number: 2.07
Date issued: 1/1/95
Revised: 2/07

Policy:

The acceptance of gifts and gratuities by RIT employees, from any suppliers in any form whatsoever, is prohibited. Solicitation of any gifts of any kind or the acceptance of gifts in the form of cash, gift certificates of any amount or the acceptance of entertainment is absolutely prohibited. Door prizes or raffle prizes of significant value (i.e, in excess of $50.00) obtained at the expense of the Institute are the property of the Institute.

Note: this policy should not be confused with Institute development or fund-raising efforts.

Procedure:

No gifts, beyond those of an advertising nature and insignificant value, generally distributed to all potential customers, may be accepted by an RIT employee.

Door prizes or raffle prizes of more than $50.00 should be turned over to the Institute for use in Institute sponsored raffles where the winner of the prize is randomly selected.

Further, any "free gifts" obtained through the purchase of goods are the property of the Institute. An example is, "buy 10 cartons of paper and get a free CD player. The CD player is the property of the Institute. Note: this type of selling should be discouraged unless a direct benefit to the Institute can be substantiated.

Any acceptance of gifts and gratuities as described in this section from suppliers may result in disciplinary action or termination.

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Business Meals

Subject Number: 2.07.1
Date issued: 2/07

Policy:

The acceptance of meals, in the context of "conducting business" should be discouraged. At no time shall an employee accept a meal with a supplier who does not have a long standing relationship with the Institute.

Procedure:

In general, business meals should be discouraged. If the only time an employee can meet with a supplier is at a meal time, then the employee should pay for his/her own meal.

From time to time it is acceptable for a long standing, established supplier to offer food as a form of 'thank you" for continued business. In this case, a plate of cookies, doughnuts, bagels, pizza, or subs is acceptable. The food should be placed in an accessible area such as a break room for everyone to enjoy. In this case, the supplier should limit the offer of food to once per year.

At no time is it acceptable to ask a prospective supplier to bring in a meal or food.

Any acceptance of business meals as described in this section from suppliers may result in disciplinary action or termination.

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Business Travel

Subject Number: 2.07.2
Date issued: 2/07

Policy:

In conducting Institute business, it may be necessary to travel out of town to a supplier's place of business. If an employee receives an offer to visit an out of town supplier, the Institute shall pay for any expenses incurred such as air line tickets, lodging, and meals.

Procedure:

If an employee believes it is in the best interest of RIT to travel to a supplier's out of town site, the employee should submit a pre-approval request to their supervisor. If approved, RIT would pay for any expenses incurred.

If in the course of the business meeting or plant tour, a meal is provided, then the employee may accept the meal as part of the day's planned events.

Any acceptance of business travel as described in this section from suppliers may result in disciplinary action or termination.

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Trade Shows:

Subject Number: 2.07.3
Date issued: 2/07

Policy:

Trade shows are common business practice and are helpful in evaluating supplier products. Attendance is allowed and encouraged to gain product knowledge.

Procedure:

RIT employees are encouraged to attend trade shows to become more knowledgeable in certain industries and with certain products. In the course of attending a trade show, many suppliers will secure "business suites" and offer food. Supplier hospitality during the advertised hours of a trade show is allowed.

RIT employees should turn down any offers of entertainment or meals outside of the trade show hours.

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RIT Events:

Subject Number: 2.07.4
Date issued: 8/07

Policy:

RIT employees may attend RIT events as a guest of a sponsor.

Procedure:

From time to time, RIT holds events wherein they ask the community for support and sponsorship. Such events may be fundraisers, alumni outings or celebration dinners, to name a few. RIT employees may, with the approval of their supervisor, attend as a guest of a sponsor.

Training Sessions:

Subject Number: 2.07.5
Date issued: 8/07

Policy:

RIT employees may attend training sessions to gain knowledge of products used on the RIT campus.

Procedure:

As with trade shows, training sessions are valuable tools to help our employees gain product knowledge to do their jobs better. These training sessions, normally held on the RIT campus, are permitted when new products need to be introduced or when new procedures need to be conveyed to the employees. Training sessions held during the lunch hour may also include food such as subs or a pizza.

Personal Purchases

Subject Number: 2.08
Date issued: 1/1/95
Revised: 6/12/03

Policy:

The Institute, as a general rule, will not purchase any supplies or equipment for the personal use of Institute faculty, students, or staff.

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Gifts-In-Kind

Subject Number: 2.09
Date issued: 1/1/95
Revised: 6/30/99

Policy:

Gifts of money or goods to RIT must be reported by the individual or department receiving the donation to the Development office.

Procedure:

Department head should always notify the Development office when receiving a donation. The Development Office will supply a Record of Gifts/Pledges form which must be filled out. The form is then returned to the Development Office accompanied with a letter from the donor stating the nature and value of the gift and an appraisal form, invoice or packing slip if available. If the gift is over $1,500.00 in value, the Development Office notifies the Property Control Office for inventory control purposes. The department may decide to keep the donation or place it on the Property Control surplus inventory listing for availability to other Institute Departments use.

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Policies and Procedures - Requisition Procedures

Preparation Instructions

Subject Number: 3.01
Date issued: 1/1/95
Revised: 3/8/10

Subject:

Purchase Requisitions are used for the procurement of all supplies, equipment and services not available through delegated Institute Departments such as The HUB, Food Service, or Facilities Management Services. The Purchasing Department requires the use of electronic online requisitioning rather than paper requisitioning. Information on procedures for placing requisitions, and related reference material, will be provided by the Purchasing staff.

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Oracle Requisitioning/Basic Requirements

Subject Number: 3.02
Date issued: 1/1/95
Revised: 7/28/99

Subject:

It is necessary for all departments to utilize the Oracle Purchase Requisition System. To do so, they must have some form of access to the RIT Internet system and the Oracle Applications Software. This may be accomplished through the use of a personal computer with a minimum of Windows 95 or Windows NT 4.0; or a MacIntosh with a minimum of Operating System 7. The connection may be accomplished through a direct hookup to the RIT ethernet network or the use of a dial-up modem.

Access to the Purchasing Requisition System is delegated to each individual user and not to a department or division. If a user leaves the Institute or transfers to another department, his or her access is deleted. Budget authorities should inform the Purchasing Department whenever a user of the on-line system is transferred or terminated.

The User Access Form for Oracle Purchasing must be submitted to the Purchasing Department. The Oracle userid to be assigned will, in most cases, be the same as the user's DCE or VAX account userid. The departmental approver for this form must be a person with direct authority over the user.

When all of your paperwork has been processed, an orientation and instruction session will be arranged. Detailed instructions on the preparation and usage of Oracle Requisitions are made available through periodic instructor lead workshops. The training manuals for the workshops are available online on the Purchasing Web page at: http://finweb.rit.edu/Purchasing.

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Authority to Approve Requisitions

Subject Number: 3.03
Date issued: 1/1/95
Revised: 4/20/10

Policy:

Only that person or persons having authority for a particular budget account, or a designated representative, can be authorized to approve requisitions. A person who has created a requisition cannot be the approver of that document. Authority delegated beyond the level of vice president, dean or assistant dean, or administrative department head must be detailed in memo form to the Director of Purchasing. Detailed instructions on the steps of approving Oracle Requisitions are made available through a training manual available online on the Purchasing Web page at http://finweb.rit.edu/Purchasing. You can also reference the University signatory authority policy at http://finweb.rit.edu/svp/signatory.html.

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Pre-Planning

Subject Number: 3.04
Date issued: 1/1/95
Revised: 7/28/99

Policy:

The necessity for departments to pre-plan supplies and equipment needs cannot be over-emphasized. The time required to issue an order and secure delivery after receipt in the Purchasing Department of a properly prepared and approved requisition varies greatly. The work load at any given time within the Purchasing Department is also a factor. Delivery, however, will always depend on the supplier's stock and the problems it has in producing or securing delivery from its suppliers.

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Account Number Classification

Subject Number: 3.05
Date issued: 1/1/95
Revised: 7/28/99

Policy:

No purchased items should be charged to a department's revenue accounts.

The general ledger account number has been established so that use of a specific code signifies a certain category of expense.

More than one account number can be used when purchasing items that pertain to different categories. However, it is important that a single requisition not include several items to be purchased from a variety of vendors.

The accounts with object code 16200 has been established in the Plant Fund for the purchase of capital equipment.

Capital Equipment is defined as equipment with a unit cost of $1500 or more and a useful life of more than one (1) year.

Capital Equipment should never be charged to your department's operating budget. Charge software, supplies, or equipment with a per unit cost of under $1,500 to the appropriate expense code.

A listing of appropriate expense codes can be found at http://finweb.rit.edu/controller/accountno.html

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Capital Equipment

Subject Number: 3.06
Date issued: 1/1/95
Revised: 7/28/99

Policy:

Capital equipment is defined as an article of non-expendable, personal property having a useful life of more than one (1) year and an acquisition cost of $1500 or more per unit. Charge capital equipment to asset object code 16200.

Equipment with a value of under $1500 is charged to expense object code 840XX.

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Fund Source

Subject Number: 3.07
Date issued: 1/1/95
Revised: 7/28/99

Policy:

The Institute does not provide for year-end encumbrance except where required by a sponsoring agency ("restricted funds") or NTID. This dictates that goods and services received on campus on or before June 30 are to be charged to the ending year's budget. Goods and services received July 1 and thereafter are to be charged to the new year's budget.

In line with this accounting procedure, departments are encouraged to submit their requisitions to the Purchasing Department in ample time to allow for delivery in the appropriate fiscal period. The fiscal period for RIT is July 1 to June 30 and for NTID, October 1 to September 30. A general guideline would be for requisitions to reach Purchasing by April 30 for delivery by June 30. Some items will require greater lead time.

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Specifications

Subject Number: 3.08
Date issued: 1/1/95
Revised: 7/28/99

Subject: Writing a specification

The specifications contained in a requisition should be a combination legal document and technical paper. Specifications determine the quality level and basis for evaluation of bids and should be reviewed each time they are used, since they are not static. If the department's requisition is for items with special qualities (i.e. flame retardancy, machinery for use by people who are handicapped or blind, etc.) specific reference to such special requirements should be made.

General Instructions:

The following guidelines should be used in obtaining the specifications for the requisition:

Identify the minimum requirements necessary to accomplish the task.
Allow for competitive bidding. (Don't be restrictive to certain brands unless a compatibility requirement has been established.)
List criteria on which testing will be judged for compliance with specifications.

In situations where the technical nature of the specifications requires that they be written by a consultant, the following guidelines should be followed:

The consultant should be independent and not a current supplier to the Institute of the affected goods or services.
The consultant should be paid appropriately for the services rendered.
Proposals should be solicited independently from three consultants if the cost of creating the specifications will exceed $15,000.

Although the specifications must be written to allow for competitive bidding, this does not mean that RIT must accept all bids regardless of quality. Items that are below the minimum quality level may be rejected on that basis. However, the specification sets the minimum acceptable quality and the low bid that meets this level must be accepted.

It is therefore necessary that the specification be clear and concise, as all awards and justifications will be based only upon the information as provided with the requisition.

The most common used type of specification used at RIT is a "brand" name or equal/acceptable substitute. This form of specification uses a manufacturer's name and catalog number and provides for the submission of equivalent products. When writing this type of specification, the author should list the characteristics of the item being ordered so that a proper evaluation of any alternates can be made. Rejection of the low bid because it does not have characteristics specifically listed on your requisition is invalid, even though the catalog number of the item specified might indicate those characteristics. (Also, check the packaging, if screws come packed 10 per carton, please don't order 12 each).

If you are unsure, contact the Purchasing Department before submitting the requisition. If an omission or error is discovered in specifications after the bid has been opened, this can result in all bids being rejected and a revised bid being issued. Vendors will be asked to respond to the revised bid.

Sources for Obtaining Specifications:

RIT Purchasing Department
Catalogs
Vendors
Associations of users and/or manufacturers
Technical and trade societies

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Bid Solicitations

Subject Number: 3.09
Date issued: 1/1/95
Revised: 9/9/10

Policy:

It is the policy of the RIT Purchasing Department to request bids or quotes from qualified vendors for the purpose of issuing purchase orders for the supply of goods or services to RIT.

If the good or services requested can be purchased through an RIT campus resource such as The Hub or Campus Casuals (see Special Procurement Polices), bidding is not required. If bidding is desired, then the RIT campus resource must be included in the bid procedure.

Good purchasing practice dictates that quotations and bid requests to qualified sources effectively develop competition. The bidding procedure must also comply with state and federal regulations when spending funds originate from these sources. The following guidelines for solicitation are determined by expected expenditure level as described here:

Less than $1,500: The RIT Visa Procurement Card should be used for all transactions where credit card use is acceptable to the supplier. The RIT Visa Procurement Card policy can be found on the Controller's Web page at http://finweb.rit.edu/Controller. If a procurement card is not available or if the supplier does not accept procurement cards, the transaction can be paid for on an invoice payment form.
Greater than $1,500 but less than $5,000: If a single purchase or annual aggregate expense is less than $5,000, the using department may submit an approved requisition to RIT Purchasing. RIT purchasing can purchase goods or any contract for services directly from a responsible vendor of choice. While no competitive solicitation is required, the Purchasing Agent will take the necessary steps to ensure the reasonableness of the price.
Greater than $5,000 but less than $500,000: Three (3) competitive quotations are required, and, with few exceptions, they should be written. The written quotations may be informal or a response to a formal solicitation.
Contracts and Institutional Obligations with an aggregate total of $500,000 or more: When members of the board and key or influential employees are potential bidders, their inclusion must be approved in advance by the Conflict of Interest Committee of the Board of Trustees. The Sr. Vice President for Finance and Administration will provide the Committee with the following information: 1) list of bidders; 2) procurement process description; and, 3) the criteria to be used for the selection of the successful bidder.

Procedure:

The Purchasing Department at RIT can assist in issuing and maintaining all documentation relevant to quotations, bids, proposals and awards. When a need arises in a user department that requires solicitation, Purchasing should be notified early to assist in developing specifications and sources and ultimately to issue all requests for pricing.

Substitutions for goods and services must provide for all of the following (OMB - A110 requirement):

A clear and accurate description of the technical requirements for the material, product or service to be procured. Such a description shall not contain features which unduly restrict competition.
Requirements which the bidder/offerer must fulfill and all other factors to be used in evaluating bids or proposals.
A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, include; the range of acceptable characteristics or minimum acceptable standards.
The specific features of 'brand name or equal" descriptions that bidders are required to meet when such items are included in the substitution.
The acceptance, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.

Types of Solicitations:

The following defines the type of solicitations used by RIT Purchasing:

RFQ (REQUEST FOR QUOTE)

This method of soliciting the supplier to commit to a price, quality and delivery is the one that RIT Purchasing agents should use most often. The Purchasing Agent decides what item he/she wants to get a price for and which vendors are qualified to give a quote on the item. These areas usually include, but are not limited to price, quantity, delivery requirements, quality and service.

RFP (REQUEST FOR PROPOSAL)

Where there is a process or job that is either unknown or that RIT personnel desire to have the supplier community evaluate, a Request For Proposal will be issued. This allows for information gathering without committing to the purchase until the best sources are identified and a specification made final. A final Request for Quote or Invitation to Bid or a purchase order award may result when specifications and qualified vendors have been defined.

RFI (REQUEST FOR INFORMATION)

This is an informal request and is not binding on either the requester or the supplier. This is used when general information about the products or services being purchased is needed or when information about a supplier is needed. The results of an RFI are generally not formally kept.

Exemption From Bidding:

State Contract Items: Exemptions from Bidding for these items is at the discretion of the Purchasing Agent. RIT can often purchase items at better than state contract prices.
The use of Pre-approved consortiums or GPOs (group purchasing organizations) – Presently E and I and Premier are approved.
RIT Contract Items: RIT Purchasing has contracts in place which preclude bidding at the time of requisition. These contracts have been bid or negotiated previously based on RIT's total requirements for a particular commodity.
Sole Source Purchases: Applies to purchases over $5,000. The need for bidding may be waived if the requestor can properly justify this position in writing. The justification should explain, in specific detail, that the suggested vendor's instrument has features superior to similar instruments offered by other sources. This justification must show the entire investigative process undertaken when a sole source is indicated. When two or more vendors are compared, the justification must contain specific measurements, capabilities and other data, and not testimonials or personal preferences. It is the prerogative of the Purchasing Agent to determine the acceptability and propriety of any justification submitted. Use the Vendor Justification Form available on the purchasing web site at http://finweb.rit.edu/Purchasing.
Emergency Orders: An emergency order is defined as a critical situation which is an unanticipated and sudden occurrence and is life threatening, catastrophic, or involves pressing necessity for immediate repairs, reconstruction or maintenance in order to permit the safe continuation of a necessary use or function, or to protect the property or the life, health or safety of any person. A written justification follow-up memo is required.
Commodities listed in section 4.10 also do not have to be bid

Price Quotation:

RIT will accept a fax transmission or e-mail of any quotation for work other than sealed bids. This applies to price quotes and supporting documentation applicable to the quotes.

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Policies and Procedures - Methods of Purchasing

Purchases

Subject Number: 4.01
Date issued: 1/1/95
Revised: 8/30/99

Policy:

To initiate a transaction, a purchase requisition must be created in the Oracle system and forwarded to the appropriate approver. Once approved, the completed requisition is automatically transmitted to the Purchasing Department for further processing.

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Procurement Card

Subject Number: 4.02
Date issued: 1/1/95
Revised: 8/30/99

Procurement Card Policies and Procedures can be found on the Controller's web page at http://finweb.rit.edu/controller.

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Blanket Orders - Miscellaneous Purchases of Good or Services

Subject Number: 4.03
Date issued: 1/1/95
Revised: 8/30/99

Procedure:

Blanket orders are issued for leases, rentals or maintenance of equipment or for goods or services offered routinely. Contracts are restricted to a specified period of time, preferably concurrent with the fiscal year. The Purchasing Agent in the Purchasing Department responsible for buying the equipment usually handles requests for maintenance of the item.

Contracts must be renewed or cancelled prior to the end of the contract period. All Blankets must be re-authorized by the using department at the end of the term of the blanket contract by the issuance of a new Purchase Requisition.

Policy:

Purchasing will go out to bid on all blanket orders over $5,000 unless a letter of justification from the department is received as to why it should not be bid. All possible consideration should be given to the use of the RIT Procurement Card for goods or services under $1,500 per transaction, instead of creating and maintaining a blanket order.

Definition:

Definition of a Blanket Order - An open, ongoing purchase order with multiple releases
- Type 1 - The same dollar amount to be expended on a regular release schedule
  Example: An identical monthly maintenance charge for a copier
- Type 2 - Multiple releases for differing dollar amounts
  Example: An agreement with a hardware store to allow for expenditures on an "as needed" basis
Renewal of a Blanket Order - Purchasing will not issue notices that a blanket order is due for renewal. Each requestor must create some sort of reminder that a new requisition must be created when the old order line expires. An existing order is renewed by adding new lines from requisitions placed in the new period of activity
Encumbrances - A blanket order can be placed that spans more than one fiscal year. At the end of each fiscal year, Accounting will run a report that releases all encumbrances.
Placing a Blanket Order:
- Type 1
  - Create a requisition with a Line type of "Goods"
  - Enter the number of releases as Quantity
  - Enter the release amount as Price
- Type 2
  - Enter a requisition, changing the Line Type on each line from "Goods" to "Multiple Purchases" (this automatically changes the Unit of Measure to "Dollars" and the Price to "1"
  - Begin the Description field with the words " Blanket Order"
  - In the Quantity field, enter the total number of dollars for this line

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Systems Contract Purchasing

Subject Number: 4.04
Date issued: 1/1/95
Revised: 8/30/99

Policy:

Systems contracts are set-up for direct order by department, delivery next-day for most items, a general ledger file feed by the vendor and payment monthly by RIT.

Office Supplies:

A systems contract is in effect with a designated vendor for office supplies. Departments can order directly from the vendor via fax or on-line ordering. To order on-line you need to fill out an Online Access Request Form found on the purchasing web page at www.finweb.rit.edu/purchasing. All orders are placed using the RIT Procurement Card. Items will be delivered directly to the end user by the vendor. Proprietary items such as pre-printed RIT envelopes, petty cash vouchers, shipping memos, etc, will be ordered through the HUB using a HUB order form.

Paper:

Same as office supplies, including delivery to requestor's location.

RIT Stationery, Business Cards and Envelopes:

RIT Business Cards:

RIT business cards can be ordered through the HUB. Contact the HUB for ordering procedures.

RIT Letterhead Stationery:

RIT Letterhead and stationery can be ordered through the HUB. Contact the HUB for ordering procedures.

RIT Envelopes:

RIT envelopes can be ordered through the HUB. Contact the HUB for ordering procedures.

Scientific Supplies:

A systems contract is in effect with a designated vendor for scientific supplies. Departments can order directly from the vendor by fax, phone, or their on-line access system. Contact the RIT Purchasing department for more information on how to order on-line.

Maintenance/Janitorial Supplies:

A systems contract is in effect with a designated vendor for maintenance and janitorial supplies. Departments can order directly from the vendor using the vendor's order form. Order forms are available from Facilities Management Services.

Electrical/Lamps:

A systems contract is in effect with a designated vendor for electrical supplies and lamps. Departments can order directly from the vendor using the vendor's order form. The department can either fax, call-in or mail the order to the vendor. Order forms are available from Facilities Management Services.

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Pool, Consortium, Cooperative Purchasing

Subject Number: 4.05
Date issued: 1/1/95
Revised: 8/30/99

Policy:

The Institute will participate in cooperative buying when it is judged to be advantageous. Examples are:

Contracts with Educational and Institutional Cooperative Services, Inc.
Contracts issued by the State of New York for a variety of goods and services.

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Rental or Lease

Subject Number: 4.06
Date issued: 1/1/95
Revised: 8/30/99

Policy:

Equipment that is furnished to the Institute by outside agencies on a rental or lease basis, whether for a definite or indefinite period, should be covered by a formal purchase order. The proposed supplier lease or rental agreements should be forwarded to the Purchasing Department when the purchase requisition is created in the Oracle system.

Any leasing agreements over $10,000 will be evaluated by the Budget Director or the Purchasing Director to provide an analysis and recommendation on purchase alternatives, such as an internal lease within RIT's financial system.

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Cancellation/Change Order

Subject Number: 4.07
Date issued: 1/1/95
Revised: 8/30/99

Policy:

A cancellation or change order is issued by Purchasing when an existing purchase order needs to be modified to correctly reflect the purchase transaction. The cancellation or change of order is only valid when the ordering department, Purchasing and the vendor all agree to the modification of the original purchase order and to any new terms or charges that may result. If a signed contract is involved, cancellation or changes may be subject to terms of the contract.

The initiation of the cancellation or change of order request may come from a department, from Purchasing or from the supplier (by contacting either the department or Purchasing).

Internal changes, such as account number changes, or changes to commitments, will not require a formal change order to be sent to the supplier.

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Petty Cash Vouchers

Subject Number: 4.09
Date issued: 1/1/95
Revised: 8/30/99

Policy:

Petty cash forms can be ordered from The Hub.

Petty cash vouchers are limited to $50.00 for individuals and $200.00 for student organizations and are used to reimburse employees and students for small, miscellaneous out-of-pocket expenses incurred for Institute purposes. All reimbursements for larger amounts are processed with the Invoice Payment Form. While the following list is not all inclusive, the examples represent a majority of the reasons for using a Petty Cash Voucher.

Coffee supplies
Student emergency loans
Flowers
Student emergency refunds
Hospitality
Travel - meals, mileage, tolls for day trips only
Locker refunds
Postage
Miscellaneous out-of-pocket expenses under $50.00

Petty Cash Vouchers are transacted through the Cashier's office first floor of the George Eastman building.

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Invoice Payment Forms

Subject Number: 4.10
Date issued: 1/1/95
Revised: 12/22/10

Policy:

An Invoice Payment Form (instead of a purchase order) can be used up to $5,000 for the following list of goods and services that cannot or are not usually competitively bid. If the items listed below are over $5,000, then they need to be placed on a purchase order but do not have to be competitively bid. Invoice payment forms covering payments such as these must include the original receipts (ie., invoices, letters, contracts, etc.) before Accounts Payable will process them. For prompt handling of requests, it is important that they be filled out completely and correctly.

Advertising
Assessments
Awards
Entertainment (does not include Catering or Hospitality)
Film rental
Freight charges (only those not covered by a purchase order)
Honoraria and related expenses
Legal fees
Library data bases
Licenses
Lobbying Services
Membership and dues
OEM Maintenance Contracts
Office machine repairs
Postage*
Proofreading fees
Reference books and manuals
Royalty payments
Software License Renewal and Maintenance
Speaker Fees
Sub Contract Awards
Subscriptions
Testing services
Travel - meals, mileage, tolls and parking for day trips only
* An IPF can be used for any amount of postage.

Invoice Payment Forms can be obtained from the HUB or on-line at the Controller's web site at http://finweb.rit.edu/controller.

If the recipient of the check is an active RIT employee and the funds are for hours worked or services rendered, an Additional Pay Form must be used. Otherwise, if the funds are for reimbursement of expenses or for the purchase of finished goods from an employee, then the Invoice Payment Form is required.

For reimbursement for travel (other than a day trip), a Travel Voucher Form is used.

Original receipts (photocopies, monthly vendor statements, and credit card statements are NOT acceptable) must be provided to substantiate each expenditure. The receipts must reflect the place and date of purchase and the specific item(s) purchased. Where a credit card is used, both the credit card original and the vendor's receipt must be submitted. If multiple receipts are submitted, they must be totaled and a calculator tape provided. The receipt(s) must be submitted with the Invoice Payment form in order to receive the reimbursement. In the rare case where original receipts are not available, a signed memorandum to that effect which details the itemized expenditure(s) must be provided.

** Should you have a question regarding an item not listed, please call Accounts Payable at ext. 52372 for further information.

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Policies and Procedures - Special Procurement Policies

Sustainable Procurement

Subject Number: 5.01
Date issued: 1/1/95
Revised:7/23/09

Policy:

RIT will strive to conduct its activities in an ecologically and economically sound manner and will promote responsible consumption and environmentally sound practices among all members of the University community. We recognize that sustainable purchasing is a critical component of preserving our natural resources, lowering operating costs, and minimizing waste, and to this end we will:

Specify, whenever possible and reasonable, the use of sustainable, environmentally friendly systems, equipment and materials.
Ensure that all supplies, materials, equipment and services are procured at the lowest possible cost.
Comply with all relevant procurement and environmental regulations.
Investigate resource conservation, reuse and recycling options and encourage adoption by all members of the University community.
Promote and maintain activities that encourage exchanges, swaps and resale of surplus products and supplies.
Commit to purchasing the Energy Star certified appliances and products.
Promote business with suppliers that consistently demonstrate sustainable and socially conscious business practices.
Work within the University and in the broader community in which we reside to share experiences and encourage the adoption of sustainable practices.
Develop and implement the use of assessment tools designed to evaluate the effectiveness of this policy and make changes where necessary.

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Customs Clearance

Subject Number: 5.02
Date issued: 1/1/95
Revised: 9/30/99

Policy:

All foreign purchases are imported through the authorized customs broker, who, for a nominal fee, is empowered to clear all packages through customs for forwarding to the Institute.

If you have a need to import goods, please give the Purchasing Department advance notice so that we may consult with our broker.

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Printing Procurement

Subject Number: 5.03
Date issued: 1/1/95
Revised: 2/2010

Policy:

With any printing request, the proper use of the Institute graphic identification system must be considered. Refer to the RIT identity manual at http://www.rit.edu/upub/identity_manual.pdf

The RIT Print & Postal HUB should be given first consideration for the printing needs of the Institute.

Competitive bidding is not required on print jobs that are filled through the HUB. If the end user chooses to bid, the HUB must be one of the three bids. Justification such as pricing or delivery factors must be provided when the HUB is not awarded the order.

Business Cards and Letterhead: In order to conform to the RIT identity policy, all RIT business cards and letterhead must be printed at the HUB.

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Vehicle Acquisition

Subject Number: 5.04
Date issued: 1/1/95
Revised: 9/30/99

Policy:

Budget requests for vehicles should be made by the user department as part of the normal annual request for capital equipment.
Operating costs (fuel and maintenance) will be budgeted by the user department in the same manner as any other expense item.
If approved, the funds for acquisition and any incremental operating expenses will be included in the user department's budget.
Requests for quotations are the responsibility of the Purchasing Department.
Fuel will be provided by Facilities Management Services on a direct charge (use) basis. Charges will be made monthly to the user department's account.
Maintenance will be the responsibility of the user. Facilities Management Services, to the extent of its technical competence and time available, will provide maintenance at the user's request. Charges for this service will be made directly to the user department's account. Facilities Management Services will assist users in locating reliable non-Institute servicing, if necessary.
The Campus Safety Transportation Manager is responsible for registration and licensing detail.
The Property and Risk Manager will advise Institute vehicle users on insurance, and liability issues.
Most Institute vehicles will carry external identification, in the form of the Institute logo and name, in a contrasting color on each front door.
All purchase requests for incremental vehicles that would increase the size of the RIT fleet will be counter-signed by the Vice President for Finance and Administration and vice president of the using division.
Purchase requests for replacement vehicles require only the signature of the using department head.

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Hazard Communication Law (Right-to-Know) Requirements

Subject Number: 5.05
Date issued: 1/1/95
Revised: 9/30/99

Policy:

POLICY STATEMENT (Per the Environmental Health and Safety Office of Campus Safety)

In conducting Institute operations, chemicals are used that require specific precautions. To protect the health of our employees, students, contractors and visitors, it shall be the policy of Rochester Institute of Technology that our employees will be informed of any chemical hazards associated with their job functions.

Departments must adopt and implement procedures for purchasing, receiving, storing and handling of potentially hazardous chemicals required for health and safety, congruent with applicable federal, state and/or local requirements including provisions for chemical hazard evaluation, container labeling, collection of material safety data sheets and employee training.
MATERIAL SAFETY DATA SHEETS (MSDS)

The basic disclosure document required by the Chemical Hazard Communication Standard, and upon which all other requirements of the standard are based, is the Material Safety Data Sheet. The MSDS provides a uniform outline of each hazardous chemical and special precautions and controls necessary for the chemical's use. Because of the variety of chemical substances utilized in our operations, we maintain MSDS's at both the department level and in a master file at Campus Safety maintained by the environmental health specialist. An inventory list as well as the MSDS of the hazardous chemicals found in each department will be maintained in the department by the designated department safety coordinator or other individual designated by the dean, director or department head. Copies of the department inventory lists are to be sent to the Environmental Health Specialist annually, upon request.

The information on the MSDS will be used to determine if a chemical is considered hazardous. Therefore, it is important to obtain either an MSDS for every chemical, or written notification from the chemical manufacturer or supplier that its product is not considered hazardous under OSHA 1910.1200.

No MSDS will be prepared by RIT. We will rely on the chemical supplier for the accuracy of the MSDS.

Procedure:

MSDSs are required as a condition of all purchases and for an initial shipment to be received from a manufacturer, importer or distributor. Therefore, each supplier or manufacturer will be required to provide an MSDS on each chemical. This statement will be added to purchase orders, where appropriate. Material Data Safety Sheets are required for purchases of chemically based products (in accordance with 29CFR1910.1200, the Hazard Communication Standard).
The Department purchasing agent or satellite buyer will make written attempts to secure the MSDSs not received from suppliers following initial verbal requests. The Environmental Health Specialist will be contacted in writing if a second request to a supplier goes unanswered. Copies of all correspondence will be kept in the departmental MSDS file.

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OSHA Regulations

Subject Number: 5.06
Date issued: 1/1/95
Revised: 9/30/99

Policy:

All equipment, commodities, or goods purchased by the Institute for use by its employees must be manufactured and delivered in full compliance with the requirements of the Occupational Safety and Health Act of 1970.

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Travel

Subject Number: 5.07
Date issued: 1/1/95
Revised: 7/19/00

For complete informtion regarding RIT travel policies & procedures, please visit the Controller's website at http://finweb.rit.edu/controller/travel/.

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Minority Vendors/Small Businesses

Subject Number: 5.08
Date issued: 1/1/95
Revised: 9/30/99

Policy:

It is RIT policy to select and purchase from suppliers who offer the greatest total value for the products and services to be purchased. Within this general policy, it is RIT's objective to employ innovative techniques to find and develop minority suppliers and small businesses capable of providing goods and services required by the Institute.

RIT's objective is to increase its business with minority business enterprises (MBEs) via affirmative action to promote procurement of goods and services from minority suppliers. The Department of Purchasing is charged with the development and administration of such a program.

Purchasing will:

Seek out purchasing opportunities for minority vendors at the Institute.
Identify and assist minority vendors to qualify them to do business with the Institute.
Serve as a resource bank for information concerning minority vendors.

A minority business enterprise is a legal entity engaged in business transactions. The business must be 51% owned and controlled by a minority person, deaf or hard of hearing person, or must be a non-profit organization fostering physically and/or mentally disabled individuals.

Minority persons are members of socially and economically disadvantaged minority groups including Black Americans, Hispanic Americans, American Indians, Alaskans, Asians, Pacific Americans, and Women; and the physically or mentally handicapped and the deaf and hard of hearing.

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Surplus Property

Subject Number: 5.09
Date issued: 1/1/95
Revised: 9/30/99

Policy:

The Purchasing Depart is responsible for any surplus property on campus. The surplus policy and procedures can be found on the Purchasing website at http://finweb.rit.edu/purchasing/surplus.

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Grants/State or Federal Funds

Subject Number: 5.10
Date issued: 1/1/95
Revised: 9/30/99

Policy:

The Office of Management and Budget (OMB) A-110 provides standards for use by grant recipients in establishing procurement routines for supplies, equipment, construction and other services with federal funds.

Recipients of grants or federal funds must follow RIT's own procurement policies and procedures as outlined in this manual.

Copies of the OMB Circular No. A-110 are available from the Controller's Office.

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On-line Auction Houses (e-bay, etc)

Subject Number: 5.11
Date issued: 7/19/05
Revised:

Policy:

Institute funds may not be used for purchases from on-line auction houses without the express, written permission of the Director of Purchasing obtained on a case by case basis.

Auction sites are discouraged as a source of purchases for several reasons. The risks of using an on-line auction site are:

No fixed price which may result in paying more than negotiated pricing
No established merchant relationship in case of disputes
Increased shipping liability
Return policies vary widely from seller to seller
Generally warranties from the manufacturer are void since most auction sellers are not authorized resellers

In cases where a department believes it is in the best interest of the university to purchase a product through an on-line auction, the purchaser must secure the written permission of the Director of Purchasing. The Director will ask for documentation that validates the market-value ceiling for bidding purposes, the steps taken to validate the integrity of the seller and the anticipated method of payment. Additional documentation verifying the receipt of the goods and the condition at time of receipt may also be required.

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Apparel/Marketing items Procurement

Subject Number: 5.12
Date issued: 2/18/2010
Revised: 5/17/2010

Policy:

With any apparel or marketing (pens, pencils, water bottles, etc) order, the proper use of the Institute graphic identification system must be considered. Refer to the RIT identity manual at http://www.rit.edu/upub/pdfs/identity_manual.pdf

Licensing of apparel/marketing items:

When items bearing the RIT logo/trademark are being purchased for internal (non re-sale) use, the supplier does not need to obtain a license for use of the logo/trademark. When a supplier wishes to sell or distribute RIT logoed and trademarked items to the general public through retail outlets or web sites, the supplier must obtain approval and sign a license agreement with the Institute.

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Food/Catering Procurement

Subject Number: 5.13
Date issued: 2/22/2010
Revised:

Policy:

Brick City Catering, a division of RIT Dining Services, should be given first consideration for the catering needs of the Institute.

Competitive bidding is not required on orders filled through Brick City Catering. If the end user chooses to bid, Brick City Catering must be one of the three bids. Justification such as pricing or delivery factors must be provided when Brick City Catering is not awarded the order.

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Local Lodging/Conference Procurement

Subject Number: 5.14
Date issued: 2/26/2010
Revised:

Policy:

The RIT Inn and Conference Center (the Inn) should be given first consideration for lodging and conference requirements. When making reservations, remember to advise the Inn that you are entitled to the RIT rate.

Competitive bidding is not required on requirements filled through the Inn. If the department chooses to bid, the Inn must be one of the three bids. Justification such as availability and/or pricing must be provided when the Inn is not awarded the order.

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Policies and Procedures - Receiving Procedures

Claims Involving Damages or Shortages

Subject Number: 6.01
Date issued: 1/1/95
Revised: 10/27/99

Policy:

Notice of damages or shortages identified by the Shipping and Receiving Department are directed to the Purchasing Department immediately. For shipments initiated with the RIT Visa Procurement Card, the requestor will be contacted. When damages or shortages are evident, the Shipping and Receiving Department makes the proper notations on the carrier's waybill and, when necessary, enters the damage claim with the carrier to compensate the Institute. The Shipping and Receiving Department will make best efforts to refuse delivery of obviously damaged goods. This refusal places the responsibility of generating damage claims on the supplier, and not RIT.

In the case of hidden damage or shortages undetected by the Shipping and Receiving Department, the using department should contact the Shipping and Receiving Department promptly (one working day) if corrective action needs to be taken. Failure to keep the packing materials will most likely void any chance of obtaining a claim.

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Inspection by Departments

Subject Number: 6.02
Date issued: 1/1/95
Revised: 10/27/99

Policy:

The ultimate authority for receiving and inspecting of goods is left to the using department. When the Shipping and Receiving Department signs for goods received, it should be understood that the department is merely verifying the number of packages received against the purchase order. Time does not allow delivery personnel to wait while packages are inspected. The using department must be responsible for promptly unpacking and carefully inspecting shipments. Any discrepancies or shortages should be reported to the Shipping and Receiving Department within one working day, referring to the purchase order number and the supplier. The Purchasing Department will work with the supplier and the Shipping and Receiving Department to protect the Institute's interest and to complete the transaction.

Verify amounts. Note all shortages on shipping documents and have driver sign.
Examine each carton for obvious damage. Keep all damaged cartons.
Open every carton to check for hidden damage within one week of receipt of material.
Stop uncrating and retain all merchandise in exactly the same condition it was received.
Notify Shipping and Receiving immediately by phone.
Do not use any of the merchandise or destroy packing material.

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Return of Supplies or Equipment

Subject Number: 6.03
Date issued: 1/1/95
Revised: 10/27/99

Policy:

Supplies or equipment obtained with an RIT Purchase Order to be returned to a supplier for credit, adjustment or replacement should be cleared through the Purchasing Department. For transactions made with the RIT Visa Procurement Card, the requestor should deal directly with the supplier and the Purchasing Department need not be contacted. Credit memos received which cannot be identified with returns will receive disposition at the discretion of the Controller's Office. Procurement Card credits will be made directly to requestor's Visa account. Departments are urged to keep all such requests to the absolute minimum.

When an item is to be shipped from the RIT campus for return, repair or any other reason requiring reimbursement from Institute funds, the procedures outlined below should be followed:

Notify the Purchasing Department. Purchasing will contact the supplier for a return merchandise authorization (RMA). Purchasing will work with the end user to coordinate the return and replacement of the items in question. For credit card purchases, the supplier should be contacted directly.
Prepare a shipping memo and notify the Shipping and Receiving Department to return the goods and memo to the receiving dock. Most suppliers will accept returns up to 14 days after receipt of order at RIT.
The Shipping and Receiving Department will take the necessary steps to forward the goods according to the instructions on the shipping memo. When necessary, the Shipping and Receiving Department can arrange for special packaging; however, it is recommended that the responsibility for proper packaging remain with the department.

An on-line shipping memo is available at http://facilities.rit.edu/request/

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COD

Subject Number: 6.04
Date issued: 1/1/95
Revised: 10/27/99

Policy:

The Shipping and Receiving Department is not authorized to receive COD deliveries. The department will not handle cash or checks for this purpose. When a COD shipment comes to the dock, it must be turned away.

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Materials not Delivered Directly to Shipping and Receiving

Subject Number: 6.05
Date issued: 1/1/95
Revised: 3/8/10

Policy:

With few exceptions all purchased goods should be delivered to the receiving dock at Building 99.

Shipping and Receiving (x52119) must be notified by the recipient of goods covered by an RIT Purchase Order, in the following instances:

Materials that are delivered by the supplier directly to the requestor, by-passing the receiving dock.
Materials picked up by the using department from a local supplier.
Shipments that have been delivered to the requestor by the Shipping and Receiving Department that are actually covered by an RIT Purchase Order, but that order number was undetected at the time of receipt.

All packing lists and bills of lading should be forwarded to the Shipping and Receiving department, to be filed as a permanent proof of delivery.

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Policies and Procedures - Accounts Payable Procedures Policies

Invoice Approval

Subject Number: 8.01
Date issued: 1/1/95
Revised: 11/29/99

The final step in the Purchasing Cycle is the matching of the vendor's invoice to the purchase order. The Purchasing Cycle constitutes a three-way match between the purchase ordered quantity, the received quantity, and the invoiced quantity. There is also a purchase price variance calculated when the invoice amount does not equal the purchase order amount. All invoices received relating to a purchase order must be sent to accounts payable for payment. The invoice is entered in Oracle Accounts Payable and matched to the purchase order. If the three-way match agrees, the invoice will be approved and will be paid according to payment terms. If the three-way match does not agree, the invoice will go on hold. The hold reason are:

Quantity received - the quantity has not been received through Oracle Receiving and the invoice quantity billed matches the quantity ordered.
Quantity Ordered and Quantity Received - the quantity billed is more than the quantity ordered and the quantity received.
Price - the amount invoiced is more than the allowable price tolerances.
Quality - the inspection of the product and or service has not been recorded and released in Oracle.

Accounts Payable will notify the requesting department of the holds placed on the invoice. The requesting department is responsible for notifying the Receiving Department that the product or service was received and/or the Purchasing Department for making any corrections to the purchase order including additional line items or additional moneys. When the holds are able to pass the matching conditions, the invoice will be approved and paid according to payment terms.

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Credit Memo

Subject Number: 8.04
Date issued: 1/1/95
Revised: 11/29/99

Policy:

A credit memo is a document issued to show a reduction in the amount owed by RIT on a purchase order because goods were returned, were defective, or there was an error in invoicing. All credit memos received relating to a purchase order must be sent to accounts payable to be matched against the purchase order. The original invoice and credit memo will both be entered in Oracle Accounts Payable to offset one another and thus allow RIT to pay the correct amount.

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Year End Accrual/Encumbrances

Subject Number: 8.05
Date issued: 1/1/95
Revised: 11/29/99

Policy:

Oracle Purchasing uses the encumbrance method of accounting. An obligation encumbrance is based on an approved requisition. A commitment encumbrance is based on an approved purchase order. An invoice encumbrance is based on an approved invoice. The system automatically creates the encumbrance journal entries based on the status of a requisition, purchase order, or invoice. Oracle Purchasing and Accounts Payable are so intertwined that it is vital for the functions of purchasing, receiving, and accounts payable to properly record the transactions of the purchase order to enable the Oracle systems to automatically record and remove the encumbrances properly. An encumbrance journal entry reserves funds (reflects commitments) and is not recorded as an actual expense until the invoice is approved for payment.

Procedures:

RIT - June 30

Only goods and services RECEIVED on campus by June 30th are accrued (charged) against the current fiscal year's budget. Goods not received by June 30th are charged against next year's budget. The system will automatically create a journal entry for all purchase orders that are received in Oracle. If the purchase order is not shown as received in Oracle and the product or service was actually received by June 30th, a manual accrual entry will need to be made. See the Controller's Office year end procedures for more details.

NTID - September 30

Purchase orders only have to be approved in Oracle Purchasing by September 30th to be encumbered (charged). It is not necessary for goods to be received on campus. The system will show all the commitment obligations for NTID and a journal entry will be made charging the departments.

Both year-end accounting methods are generated from the computer system. All information must be entered into the Oracle Purchasing system to be recorded.

Note: Items of equipment costing $1,500 or more and major building renovations are to be requested through a separate capital budget process. Allocation of such capital funds will be made to the Plant Fund accounts having an object code of 84100. Goods and services purchased using account numbers with the 84100 object code are not affected by the June 30th delivery date requirement.

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