Material & Disbursement Services (MSD)
POLICY 2
Effective Date: 03/01/1998
Last Modified Date: 11/12/2003
Purchase Commitments
Purchasing Services has the exclusive responsibility for making all purchase contracts entered into for the University except (1) purchases authorized under the Small Order Procedure (MSD Policy 9); (2) rental or purchase of real property, which is handled through the University Property Office; and (3) construction projects, which are handled through the Facilities Planning Office.
Personal Obligation
Purchases charged against University funds that are not made in accordance with policies as stated in this Manual will be the personal responsibility of the individual placing the order. This policy is stated as follows in General Statute 143-58 and 143-58.1:
General Statute 143-58
Contracts contrary to provisions of article made void. - If any department, institution or agency of the State government, required by this Article and the rules and regulations adopted pursuant thereto applying to the purchase or lease of supplies, materials, equipment, printing or services through the Secretary of Administration, or any nonstate institution, agency or instrumentality duly authorized or required to make purchases through the Department of Administration shall contract for the purchase or lease of such supplies, materials, equipment, printing or services contrary to the provisions of this Article or the rules and regulations made hereunder, such contract shall be void and of no effect. If any such State or nonstate department, institution, agency or instrumentality purchases any supplies, materials, equipment, printing or services contrary to the provisions of this Article or the rules and regulations made hereunder, the executive officer of such department, institution, agency or instrumentality shall be personally liable for the costs thereof. (1931, c. 261, s. 9; 1957, c. 269, s. 3; 1971, c. 587, s.1)
General Statute 143-58.1
Unauthorized use of public purchase or contract procedures for private benefit. -
(a) It shall be unlawful for any person, by the use of powers, policies, or procedures described in this Article or established hereunder, to purchase, attempt to purchase, procure or attempt to procure any property or services for private use or benefit.
(b) This prohibition shall not apply if:
1. The department, institution or agency through which the property or services are procured and theretofore established policies and procedures permitting such purchases or procurement by a class or classes of persons in order to provide for the mutual benefit of such persons and the department, institution or agency involved, or the public benefit or convenience.
2. Such policies and procedures, including any reimbursement policies, are complied with by the person permitted thereunder to use the purchasing or procurement procedures described in this Article or established thereunder.
(c) A violation of this section is Class 1 misdemeanor.
Documentation of Possible Unauthorized Purchases
Upon notification/determination of a potential violation of this policy, Purchasing will issue a "Misuse Letter."
All misuse letters and departmental responses will be maintained in Purchasing in a central file, filed by department. A suspense file will be maintained, and failure on the part of the department to provide justification within 30 days will result in the following escalations.
- First misuse. The first time a department does not follow appropriate procedures, leading to an apparent unauthorized purchase, the department shall be required to submit a letter of explanation signed by the dean, director, or chair.
- Second misuse. The second time within a one-year period that a department does not follow appropriate procedures, the misuse letter will be sent directly to the dean, director, or chair. A letter of explanation is required as above.
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