PROCUREMENT MECHANISMS

A WORD ON POLICY Purchasing policy promotes the proper stewardship and general guidelines for the appropriate and legal uses of LUC funds. Adherence and transition to Uniform Guidance. supersedes and streamlines requirements from OMB Circulars into Title 2 of the Code of Federal Regulation. Adherence to accountable plan requirements. It is also important to note that the policies adopted by the university are meant to be the criteria which departments must minimally abide. Departments may elect to establish internal policy and procedure that is more restrictive that those established at an organizational level. At no time can internal policy be less restrictive. IRS Publications: 1779 – Independent Contractors 970 – Tax Benefits of Education 535 – Business Expenses 525 – Taxable and Non-Taxable Income 1281 – Backup Withholding 1586 – Missing or Incorrect T.I.N.s OMB Circulars: A110 – Grant Administration A21 – Cost Principles for Educational Institutions A133 – Single Audit F.A.R – Federal Acquisition Regulation: 19.000 - Small Business Utilization To deliver on the promise of a 21st-Century government that is more efficient, effective and transparent, the Office of Management and Budget (OMB) is streamlining the Federal government's guidance on Administrative Requirements, Cost Principles, and Audit Requirements for Federal awards. These modifications are a key component of a larger Federal effort to more effectively focus Federal resources on improving performance and outcomes while ensuring the financial integrity of taxpayer dollars in partnership with non-Federal stakeholders. This guidance provides a government-wide framework for grants management which will be complemented by additional efforts to strengthen program outcomes through innovative and effective use of grant-making models, performance metrics, and evaluation. This reform of OMB guidance will reduce administrative burden for non-Federal entities receiving Federal awards while reducing the risk of waste, fraud and abuse. This final guidance supersedes and streamlines requirements from OMB Circulars A-21, A-87, A-110, and A-122 (which have been placed in OMB guidances); Circulars A-89, A-102, and A-133; and the guidance in Circular A-50 on Single Audit Act follow-up. The final guidance consolidates the guidance previously contained in the aforementioned citations into a streamlined format that aims to improve both the clarity and accessibility. This final guidance is located in Title 2 of the Code of Federal Regulations.

PROCUREMENT MECHANISMS PURCHASE REQUSITION The Purchase Requisition: Assume that all departmental purchasing should be accomplished using the university purchasing function. Pre-qualified suppliers, pricing arrangements and co-operative participation. Additional scrutiny is paid to non-pre-qualified suppliers. Purchase requisitions and purchase orders provide for better control, tracking, and approval of university expenditures. Examples of use: Furnishings and Interior Design Computers (PC and Laptops), Tablets, Peripherals, Software and Licensing Contracted or Professional Services in excess of $5,000 (subject to workers classification evaluation) Equipment and Appliances Printing Services Gift Cards Research Supplies (medical, chemical and academic) Copy Machines, Facsimile and Telecommunication Equipment Automobile purchase or lease Animals This includes Services: be sure to mention the AP/Purchasing Workflow review.

PROCUREMENT MECHANISMS CHECK REQUISITION The Check/Payment Requisition: Allowed in exception instances. Examples of use: Construction, Permits and Related Fees Conference or Seminar Registration Fees Instructional Materials Membership Dues or Fees Periodicals and Subscriptions U.S Postal Service Payments (meter replenishment, permits, and other postal related charges) Insurance Premiums Federal and State Taxes (excluding state sales tax) Utilities Contracted or Professional Services less than $5,000 (subject to workers classification evaluation) Royalty Fees Transportation Expenses (shuttle services, etc.) Awards, Honorariums, and Stipends

PROCUREMENT MECHANISMS PROCUREMENT CARD The Procurement Card: Used to by a cardholders to expedite the payment of certain goods and services of a small dollar amounts. Extra scrutiny (i.e., documentation requirements). Examples of use: Transportation Expenses (shuttle services, etc.) Travel Airfare Lodging Meals Transportation Parking Business Related Meals . Conference or Seminar Registration Fees. Membership Dues or Fees. Periodicals and Subscriptions.

PURCHASING - LAKESIDE LOCATIONS and CONTACTS 820 North Michigan Avenue, Lewis Tower Suite 700

PURCHASING – HEALTH SCIENCES LOCATIONS and CONTACTS 2160 South First Avenue, SSOM Building 120, 4th Floor