Procurement Training

 Limited Purchase Checks (LPCs) may be used by departments for small dollar purchases up to the limit printed on the face of the check. These checks are prepared by the ordering department and are delivered to the vendor without preparing a requisition on Banner. 2

 Request up to 5 checks per Index. ◦ Request forms are ordered with Stores Requisition. ◦ Other limits may be imposed by the Purchasing Office.  Two types of checks: $150 & $500.  Requestors and Pickers-up may only be authorized by Responsible Party.  Notification will be sent to the department via when the checks are available for pickup.  Checks should not be requested for “Just In Case” situations. 3

 Individuals can be authorized to request and/or pickup LPCs by submitting a memo signed by the responsible party. ◦ LPC Authorization Form ◦ ◦ Memo  One-time or for one fiscal year.  Note: individuals authorized to request LPCs cannot authorize individuals to pickup LPCs. 4

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6 January 13, 2011 Walmart Fifty and 26/ Nate James Brandon Thomas L Chips, Drinks, Paper Cups, Napkins, Lip Gloss Light Refreshments for Staff Meeting Supplies for Theatre Production

 The check copy must include a description of the purpose of the expenditure.  Checks used for food must include the following information. ◦ Attendees ◦ Description of business purpose ◦ Date of the function ◦ Appropriate approval for the purchase  LPC Function Approval Form. 7

 If you want a different Index charged, change the Index listed on the Requisition Line of the check copy. 8

 Advertisements for personnel recruiting  Alcoholic beverages  Capital equipment  Cash Awards or Prizes  Cash  Clothing  Computers, including desktops, laptops, and Macs (computer accessories are acceptable)  Donations  Fines, late fees, or penalties, including parking tickets  Furniture of any kind  Gifts (Gifts for employees in accordance with the Employee Appreciation and Recognition policy (Policy 211) are acceptable)Employee Appreciation and Recognition policy (Policy 211)  Hotels, Motels, Housing, or other Lodging (including deposits and holds)  Independent contractors  Loans  Memberships  Monogrammed items  Personal purchases  Printers  Telephones or other telecommunications devices or service (including cell phones)  Travel, including reimbursements, for University employees or guests 9

 Cannot write the check for more than the amount printed on the face of the check.  Cannot split the purchase into smaller amounts using multiple checks.  Cannot be used for electronic check payments. 10

 The purchasing copy should be returned within five (5) business days of use. ◦ Purchasing copy should have a brief explanation of the purchase ◦ Original receipt ◦ Written Pre-approval (if applicable)  The department copy should be retained by the department. 11

 Checks are written for an amount greater than the limit printed on the face of the check.  A Limited Purchase Check is used for a prohibited purpose. (See Prohibited Uses of LPCs)Prohibited Uses of LPCs  Checks clear the bank, but Purchasing does not have the check copy and documentation, or checks clear the bank for an amount that is different than the Purchasing copy.  Failure to submit original receipts or other appropriate supporting documents.  Any misuse of a Limited Purchase Check violating the University’s policies and procedures.  The department does not reveal business purpose for meals, refreshments, recruiting, or entertainment expenses as described in the User’s Guide.  The department pays for travel-related expenses.  The check is used to reimburse an employee for expenses.  Failure to ensure the transaction is tax exempt. 12

 1 st Violation ◦ Notification sent by Purchasing  2 nd Violation ◦ 3 month probation  3 rd Violation ◦ 12 month probation  4 th Violation ◦ Withdrawal of privileges  Violations removed after twelve months, if no other violations occur. 13

 A check can be “spoiled” when it is mutilated or typographically incorrect. If a check is spoiled, all check parts (original, Purchasing, and department copies) must be marked as “SPOILED” across the signature block. The original and Purchasing copies of the spoiled check should immediately be delivered to the Purchasing Office. The custodian should keep the department copy of the check for their records. 14

 From time to time, you will have the occasion to request a Stop Payment. This happens if a blank check has been reported lost or stolen. A stop payment is not required if the check or its remains are in the custodian’s possession (see Spoiling a Check). Notify Purchasing immediately if a stop payment needs to be issued.Spoiling a Check 15

 All LPCs, used and unused, must be returned at the end of each fiscal year. A memo will be issued by the Purchasing Office indicating the date by which all checks must be returned. Failure to return outstanding checks by the deadline listed in the memo, will result in a $15 stop payment fee per check being charged to the Index listed on the request. 16

 The check number should appear on all receipts and other documentation related to the purchase.  The University, as a state agency, is exempt from Utah sales and use taxes. Do not pay these taxes.  Departments and other operating units are accountable for promptly depositing cash refunds into university accounts. This money may not be used to supplement petty cash funds. All reimbursements for expenses made with LPCs should be deposited at the Cashiers Office using the Index tied to the check and the Account code A copy of the deposit form should be turned into Purchasing along with the check copy.  When returning unused check stock, do not write “void” or in any other way damage the use of the check.  Exceptions to any of the procedures found herein may be granted by Purchasing. 17

 ◦ Tips and FAQs ◦ Step-by-step instructions  Written instructions  Online interactive simulations ◦ Policies and Procedures ◦ Procurement Training 

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