Purchasing, Approval and Signature Authority Policy

Policy Overview

UIS/OAS manages significant spending and valuable assets on behalf of the University. Individuals with purchasing, invoice approval or payment signing authorities have important fiduciary responsibilities for the organization. Designation as an authorized purchaser, approver or signer comes with the responsibility to oversee certain transactions relating to those purchases.

Principles of Authorization

Individuals with purchasing, invoice approval and payment signing authority are accountable for ensuring that the following guidelines concerning the procurement of goods and services on behalf of the University are met:

• The purchase was made in the conduct of University business.
• The goods and services have been received and are satisfactory.
• The amount of the invoice meets the agreed upon price.
• The expenditure has been charged to the proper account.
• The transaction is processed in a timely fashion.
• The purchase was made in accordance with applicable guidelines and regulations promulgated by the federal government and other entities and is in conformity with the UIS Conflict of Interest Policy.
• Good relations are maintained with Harvard Vendors.

Purchasing Authority

An individual with purchasing authority has been given the ability to enter into an agreement with a vendor for the purchase of goods or services at agreed upon price and terms. In addition to the responsibilities outlined above, the purchaser is responsible for ensuring that the prices of the goods or services are reasonable and competitive. Purchasers should always consider University Preferred Vendors prior to entering into an agreement with a vendor.

Purchases of capital equipment (i.e. equipment >= $5,000) must also following the Capital Process Management Policy to ensure adherence to the UIS/OAS capital approval process.

All contracts entered into must adhere to the Contract Review, Approval and Management Policy.

Invoice Payment Approval Authority

An individual with invoice payment approval authority has the ability to authorize payment of a vendor invoice on behalf of the department. Individuals with this authority should ensure that all vendor bills comply with the standards outlined below, in addition to the guidelines described above.

In order to be processed, a vendor invoice should be an original and must contain specific information, as appropriate:

• Purchase order number or contract number (if applicable)
• Harvard customer account number
• Invoice Number
• Bill To and Ship To addresses (including name of purchaser)
• Remit To address
• Customer service telephone number
• Billing period or date of service
• A detailed description of services rendered or products purchased
• Provision for sales tax exemption - the individual responsible must convey the Sales Tax Exemption status of Harvard University (documentation to support the exempt status, a sales tax exemption number and certificate can be provided upon request).

Payment Signature Authority

Placing an authorized signature on a voucher certifies that the request for payment is compliant with all of the guidelines outlined above, has been properly prepared for payment, and includes adequate documentation. The signature of an authorized signer means that Harvard will issue a check to pay for a particular good or service, or reimburse someone for expenditure. In order to ensure proper controls and separation of duties, payment signature authority is restricted to the central financial group, the Executive Director, and the CIO.

Purchasing, Approval and Signature Authority Procedures

Obtaining Authorization

As a general rule, purchasers and individuals with invoice payment approval authority are staff working directly with vendors in placing orders, making pricing decisions, ensuring delivery of goods and services and who also have budgeting or cost tracking responsibilities. A list of approved purchasers (including allowable spending limits) is maintained in the UIS/OAS Accounting Office. In order for an employee to get on the approved purchasers list and have purchasing capabilities, their manager must e-mail Ahmed Ahmed with the request for purchasing authority. A form and the related policies will be sent to you. The employee and manager must sign the Purchasing Authorization Form acknowledging that the related policies have been read and agreed upon before authorization can be granted. The manager will select a spending limit for the employee that is appropriate for the level required for that job. Note: Splitting a transaction with a vendor to avoid the purchasing limit is strictly prohibited.

Authorizing a Document

The purchase request should be approved by the purchasing agent and the purchasing agent’s manager and, depending on local processes, all documentation should be forwarded to the local administrative support area. Your manager should be able to assist you with understanding the appropriate purchasing processes for your area. When approving payment of a vendor invoice, the invoice approver should place their signature, the date, and the proper coding directly on the original document in a visible location. The invoice and all supporting documentation should then be forwarded to 1230 Soldiers Field Road, Attention: Paula Stangenberg.

Approving Payment of an Invoice

The authorized signer should carefully review all documents prior to approving the payment of the voucher which may include:

• Original Purchase Order
• Receiving Report
• Packing Slip
• Payment Terms and Vendor Discounts
• Other Documentation

All irregularities should be researched thoroughly. Complete resolution between the purchaser and the vendor must be reached prior to final approval and payment. Examples of payment irregularities include:

• Price variances including discounts if applicable (i.e. purchase order versus invoice)
• Erroneous items not on purchase order
• Incomplete shipments
• Returned items
• Excess shipping charges
• Sales tax
• Invalid account coding