Department Purchasing Information
Ways to Purchase at UA
Contact UA Procurement for current BPO numbers, or to request BPO creation.
A "Cash Pay" or "Prepaid" purchase order is created to pay a vendor in advance of goods or services being delivered. The Banner copy-in-clause CASHPAY must be placed in the document text of a requisition requiring full prepayment. The Banner copy-in-clause CASHPAYP must be placed in the document text of a requisition requiring partial prepayment. For cashpay POs Accounts Payable generates a check that is mailed with the purchase order to the vendor.
Note that payment after delivery of goods or services is the University’s standard practice since it allows the user to confirm that the vendor has met its obligations before payment is made. Prepayment should only be used only when there is no other option and there is a high level of confidence that the goods or services sought will be delivered.
A Change Order is a written change to a purchase order directing a vendor to deliver goods and services that are different from what was included in the original order. This could include adding or reducing goods or services, changing delivery or pricing terms, or canceling the order. For changes to a purchase order contact the procurement officer who issued the order, by email, and provide the following; reason for the change, terms of the change (what needs to be changed), accounting for any new money to be added, and any updated quote or paperwork from the vendor. Also note that if the purchase order is funding a contract, a contract modification will also be required.
On department approval, legitimate University expenses over $100 made by employees out of pocket may be reimbursed via a check directly from Accounts Payable by presenting an Employee Reimbursement Form along with the original receipt. A Banner requisition is not necessary.
Employee reimbursements must be for items in the normal course of University business and must not be used to undermine normal University procurement regulations or other policies.
The Employee Reimbursement Form must be completed and signed by the head or department or individual with signature authority for the account. Employee Reimbursement Forms may be obtained on the Budget and Finance website.
Employee reimbursements under $100 may also be handled in like manner. However, they may be better expedited through the use of a petty cash voucher.
Click here to access the UAA Budget and Finance website to download employment reimbursement form.
Click here to access the UAF Office of Finance and Accounting website to download employment reimbursement form.
An honorarium is a gift for services for which no fee has been set or agreed upon in advance. An honorarium could be used as a "thank you" gift to a guest speaker or performer who, at no charge to the University, makes a presentation. The University responds with a token payment, gift or other tangible gesture of appreciation. Protocol and custom suggest that the honorarium should be processed in advance if possible or close to the event taking place so that the gift may be presented timely.
An Honorarium, per IRS regulations, is reportable as income by the University. As a result the intended beneficiary's social security is required.
Any compensation, monetary or non-monetary, negotiated, committed to, or otherwise forming an obligation to pay, made in advance is, by definition, not an honorarium. It is a fee, and is subject to the applicable regulations of the University, IRS and other relevant agencies. Any verbal or written agreement in which the University will be obligated to pay for services or expenses or accommodations is a contractual arrangement and must be made in accordance with procurement regulations.
A fee cannot be paid to any current employee, permanent, part-time, full-time or temporary. Payroll and other taxes must be withheld from any payments made to any employee. A bonus or monetary award to an employee must be approved by the campus Personnel Office.
To expedite payment have the recipient complete a W-9 to certify their tax identification and submit it with the honorarium form and a thank you letter or memo to Procurement & Contract Services.
Click here to download the Honorarium form.
Non-personal services are labor, time, or effort by a contractor, which does not result in the delivery of commodities or equipment. Examples might include travel agents, photographer, janitorial and repair people.
Non-personal services are often performed by "professionals", however the services provided are more tangible and less intellectual in nature.
Non-personal Services Contracts primarily consist of a Contract Award Form as the cover page, scope of work and/or a quote, and the Non-personal Services Contract General Provisions.
For non-personal services less than $10,000 and when the need for contractor insurance has been waived by campus Risk Management, a Short Form Contract may be used. Note that in addition to the completed form, a scope of work which includes a detailed description of services, deliverables, and milestones must be provided.
Contact a Procurement Officer if you have any questions about non-personal services contracts.
Open Purchase Orders encumber funds on the Banner Financial system for one department, for the entire fiscal year and are used for predictable, repetitive purchases throughout the year such as for cellular phone services, leases and other like expenses that are known to likely occur. Deductions are made from the encumbered amount each time a purchase is made. Departments typically track expenditures on their own soft ledger.
A change order can be accomplished by Procurement & Contract Services to replenish funds to the open purchase order as needed.
Opens are generally prepared in July, at the beginning of the new fiscal year, though they can be set up at any time.
To request an open purchase order, enter a requisition into Banner requesting the purchase order be set up as an open purchase order.
Click here for Banner Finance instructions for requisitioning of Purchase Orders.
On department approval, legitimate University expenses under $100 incurred by employees out of pocket may be reimbursed directly to employees, following their local University's petty cash processes.
Petty cash vouchers can be obtained from the UAF Bursar's Office or the UAA Cashiering Office.
"Professional services" means professional, technical, or consultant services that are predominantly intellectual in character, result in the production of a report or the completion of a task, and include analysis, evaluation, prediction, planning, or recommendation.
Professional Services contracts are more extensive and comprehensive in its terms, usually because of the nature of the work or the higher dollar value of the contract, in order to protect the assets of the University. As a result, these contracts contain additional termination rights, insurance requirements and indemnification language in comparison with other contractual instruments.
Departments are required to develop a scope of work for the work required that will be referenced as part of the contract. A scope of work should include such things as the services to be performed, milestones for completion of the project if applicable, the term of the services and due date of any deliverables.
Professional Services Contracts are used primarily for professional services greater than $10,000 total dollar value.
If under $10,000 total dollar value a Short Form Contract may be more appropriate according to risk and other factors inherent in the nature of the services.
Contact a University procurement officer if you have any question about professional services contracts or need a professional services contract issued.
Purchase orders (POs) are the only way, due to competitive and capitalization requirements, that purchases over $5,000 can be made at the University of Alaska. Purchase orders under $5,000 may be issued where a procurement card is not able to be used or other method of purchase is not practical.
Once a requisition has been entered into Banner the requisition is assigned to a procurement officer, usually based prior expertise in purchasing the requested goods or services. If the purchase does not require further competition or other considerations, a purchase order is issued by Procurement Services to place the order. The purchase order, when accepted by the vendor, becomes a binding contract between the seller and the University.
The process for issuing purchase orders is as follows:
- The procurement officer is assigned a requisition in Banner usually based on prior expertise in purchasing the requested goods or services.
- Banner assigns the purchase order number to the requisition automatically upon request.
- Procurement officers will confirm terms, pricing, shipping cost, among other specifics, with the vendor.
- When all issues are confirmed purchase orders are completed, printed and signed by the those delegated with procurement authority.
- Banner automatically encumbers the funds as the purchase order is completed.
All signed Purchase Orders are distributed as follows:
- The original copy is to the vendor and includes the University's terms and conditions of the purchase and may include other backup or information, such as registration forms, needed by the vendor.
- A copy is sent to Accounts Payable (with any necessary backup) for payment when the goods have been received or services rendered. Payment terms are typically 30 days after receipt of invoice.
- Procurement Services maintains a file with copies of pertinent backup and attachments for later reference if needed.
To determine the purchase order number, when the purchase has been assigned, access Banner form FOIDOCH and enter in the known requisition number.
There are several other types of purchase orders that can be created from a requisition entered into Banner including open purchase orders, cash pay purchase order and prepaid purchase order.
Click here for Banner Finance instructions for requisitioning of Purchase Orders.