Purchasing Policy

Owned by Justin Freeman
Last updated: May 08, 2024
5 min read

Policy Statement & Purpose

The University must manage its resources with fiscal prudence and in conjunction with legal and regulatory standards. This policy outlines permissible uses of related University funds and defines purchasing and approval measures for these expenditures.

Entities Affected by this Policy

All University Faculty and Staff.

Allowable Business Expenses

An allowable business expense is an expense or a transaction that the University, a faculty, or staff incurs on behalf of the University in exchange for goods or services.

Payment of an allowable business expense is ultimately the responsibility of the University.

Criteria for Determining an Allowable Expense

In order to be paid directly by the University or reimbursed to an individual, a business expense must be:

  • Necessary to perform a valid business purpose fulfilling the mission of the University; and

  • Reasonable in that the expense is not extreme or excessive, and reflects a prudent decision to incur the expense; and

  • Appropriate in that the expense is suitable and fitting in the context of the valid business purpose; and

  • Allowable according to the terms of any federal regulation, sponsored contract, or University policy.

Pre-Approval of Allowable Expenses

Prior to incurring expenses, expenditures need to be discussed with a department supervisor. All expenditures must be considered with reference to budget availability and your department will have internal policies on when it is necessary to discuss a proposed purchase with your budget manager (or similar position) and when written authorization is required prior to a purchase.

Restricted Purchases

Some purchase types are restricted and will require additional review and pre-approval:

  • On-site catering - Sodexo is the food service provider on campus. Employees coordinating events on campus that require food service (catering) must grant Sodexo the first option of providing catering. The Director of University Services must approve any exception.

  • Computers - All technology, computer and computer-related purchases should be directed to CIS via the CIS helpdesk. CIS is responsible for telecommunication, computing, audio and video standards across campus and will ensure that the purchase interfaces appropriately with SPU technology systems and determine how the product/service fits within SPU’s broader technology resources.

  • Fixtures and Furniture - All fixtures and furniture purchases should be directed to the Facilities department for review and approval.

  • Hazardous substances - The storage, use, transportation, or other handling of hazardous substances could implicate health and safety compliance obligations. Facilities must be consulted and provide approval for any purchase that involves hazardous substances.

  • Gift Cards - For grant-related gift card purchases, please reach out to the Office of Sponsored Programs who can purchase on your behalf. For non-grant-related purchases of gift cards, please reach out to Finance who will help determine if the purchase is allowable.

Purchasing Authorities (Signature Authorities)

All purchases/contracts must be in line with Purchasing Authorities.

Ways to Purchase

Dollar Thresholds

Quotes Required

Purchase Order Required

Tools to Purchase

$0 - $2,000

No

No

Purchasing Card

Use of personal funds (and Reimbursement request)

Expense Advance Request

Amazon Business

Invoice (and Request for Payment)

 

$2,000 - $9,999

No

Purchase Orders are recommended for transactions with vendors >$5,000 or where a vendor may provide multiple invoices. (e.g. monthly invoicing is expected over the course of a project).

Departments initiate purchase transaction directly with the chosen vendor.  (Invoice and Request for Payment)

Purchasing Card. For P-Cards or reimbursable expenses greater than $2,000; authority can be given temporarily for an increased spending limit by completing the P-Card Application Change / Request Form

$10,000 - $25,000

Minimum of 3 vendors

Purchase Orders are recommended for transactions with vendors >$5,000 or where a vendor may provide multiple invoices. (e.g. monthly invoicing is expected over the course of a project).

Departments initiate purchase transaction directly with the chosen vendor (Invoice and Request for Payment)

$25,000+

Minimum of 3 vendors

Yes

A formal proposal process may be required. Contact Finance for more details.

Departments may need to enter into a Contract. Further information on Contract Review is available in the Contract Review Policy

Purchase Orders

Purchase Orders are recommended for transactions with vendors >$5,000 or where a vendor may provide multiple invoices (e.g. monthly invoicing is expected over the course of a project).

Purchase Orders are required for transactions with vendors >$25,000.

Quotes and Bids

A quote is a statement from a vendor regarding the price for a specific good or service. Written quotes are preferable but a quote may be given verbally.

A minimum of three quotes are required when purchasing goods and/or services with a value between $10,000 - $25,000.

It is the initiating department's responsibility to obtain these quotes from various vendors for the goods or services being obtained. The Accounts Payable department is available to assist departments in identifying comparable vendors, but it is up to the department to follow through to obtain the required quotes. Once the quote documentation is received, the Department can determine which vendor to proceed with. 

If it is not possible to obtain three quotes, the Department must document why this is the case and include this information with its Purchase Requisition or Request for Payment request. 

A bid is a vendor's formal statement in response to a formal document outlining, in exact specifications, that they will supply the specified good or service at a specified rate. This is a commitment in writing from a vendor.

Contracts

Once a vendor is selected, the conclusion of the process may require a formal contract. Requests for Proposal for services typically require a contract, while capital purchases typically only require a purchase order. The final contract will then be signed by the department manager responsible for contract administration in line with Purchasing Authorities. 

Please refer to Contract Review Policy for information on the Contract Review Process.

Travel and Entertainment

Please refer to the Travel & Entertainment Policy for current Guidelines on appropriate spending and methods for travel and entertainment.

Adequate records

All purchases should be accompanied by an invoice which should be submitted to Accounts Payable for payment.

For items purchased with a P-Card, adequate records and documentary evidence, such as invoices or receipts, are needed for all lodging expenses, all grant related expenditures, and other expenses of $75 or more. Documentary evidence is not required for non-lodging and non-grant related expenses less than $75, transportation expenses for which a receipt is not readily available, or per diem allowances for meals and incidentals reimbursed under an accountable plan and not exceeding the federal rates.

For items purchased using an Expense Advance, or personal funds are to be reimbursed, ALL receipts are required for except for transportation expenses for which a receipt is not readily available, or per diem allowances for meals and incidentals reimbursed under an accountable plan and not exceeding the federal rates.

Tax Due on Items Purchased

Sales tax is applicable on all goods purchased within Washington state. Use tax is applicable on goods purchased out of state or where sales tax has not been appropriately charged by a vendor.

If sales tax is not evident on purchases, the University is required to self-assess use tax.

Accounts Payable will make the use tax calculation and add the charge to the Purchase Order or Request for Payment.

For further information on Taxes refer to to the General Accounting Tax page.