Purchasing Guideline

» Purpose | » Guideline | » Guideline Information | Print Version (PDF)

Purpose

To assist staff implementation of the Purchasing Policy and Procedure by providing further clarification of terms.

Guideline

Nothing in these guidelines shall be construed as requiring a department, agency or contractor to procure products that do not perform adequately for their intended use or are not available at a reasonable price in a reasonable period of time. Covered within these guidelines is:

• Defining Sustainable Procurement
• Understanding the product
• General Principles associated with purchasing

• Whole of life value for money
• Best purchasing practice
• Conflicts of Interest
• Fraud and corruption prevention
• Accountability principle
• Probity principle
• Fringe Benefit Tax

• Quotation and Tender requirements
• The Benefits of Sustainable Procurement
• Purchasing with consideration to Sustainable Procurement
• Glossary of terms associated with Sustainable Procurement
• General Conditions

• Purchasing controls
• Cancelling orders
• Petty Cash
• Contract agreements and licences
• Finance One

Defining Sustainable Procurement

Sustainable procurement has been defined by the United Kingdom Government Sustainable Procurement Taskforce as “…a process whereby organisations meet their needs for goods, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.” (Procuring the Future, Sustainable Procurement Task Force, 2006).
Sustainable procurement considers both products and suppliers. This includes issues such as: resource extraction and consumption; manufacturing and production; transport and logistics; product and asset design; use and maintenance; recycling and disposal options; employee rights and conditions, corruption, unfair competition and ethical behaviour.

Top

Understanding the product

Incorporating sustainability into the decision making process means ensuring that the product or service itself is sustainable. Consider the following when assessing the product or service:

1. Environmentally Preferable Purchasing Resources
Examples of environmentally preferred products:

• Recycled paper and paper products
• Remanufactured laser printer toner cartridges
• Energy Star Rated computers and appliances
• Rechargeable batteries
• Re-refined lubrication, hydraulic oils, and antifreeze
• Recycled plastic outdoor-wood substitutes including plastic lumber, benches, fencing, signs and posts
• Recycled content construction, building and maintenance products, including plastic lumber, carpet, tiles and insulation
• Re-crushed cement concrete aggregate and asphalt
• Cement and asphalt concrete containing glass cullet, recycled fiber, plastic, tire rubber, or fly ash
• Compost, mulch, and other organics including recycled biosolid products
• Re-manufactured and/or low or VOC-free paint
• Cleaning products with lowered toxicity
• Energy saving products
• Waste-reducing products
• Water-saving products

2. Socially Responsible/Ethical Purchasing Standards
In demonstrating a commitment to sustainability and seeking to ensure safe and healthy workplaces for the people who make products for the University, purchasers should strive to ensure that the products they purchase meet International Labor Organization (ILO) manufacturing standards and Fair Trade Labelling standards.

3. Recycled Content Products
The University recognizes that recycled content products are essential to the continuing viability of any recycling system, and for the foundation of an environmentally sound production system. Therefore always consider whether a product is available which consists of recycled content. This information would be specified by the manufacturer.

Examples of where recycled content should be incorporated include:

• Paper supplies for all paper based activities
• Copiers and printers that can be used with recycled content products such as paper and toner cartridges.
• Asphalt concrete, aggregate base or portland cement concrete for road construction projects that contains recycled, reusable or reground materials.
• Recycled content transportation products including signs, cones,  parking stops, delineators, and barricades.

4. Energy and Water Savings
Recognizing that the generation of electricity is a major contributor to air pollution and global warming issues, and that clean water is a finite resource, the University values products that minimize the use of these valuable resources. Consider purchasing:

• Energy-efficient equipment with the most up-to-date energy efficiency functions, including, but not limited to, high-efficiency heating and cooling systems.
• Efficient lighting with energy-efficient equipment.
• Products for which the Energy Star certification is available and which meet Energy Star certification, when practicable. When Energy Star labels are not available, choose energy-efficient products that are in the upper 25% of energy efficiency.
• Water-saving products.

5. Minimising Risk - Toxics and Pollution
The use of toxics and the generation of pollution should be minimized to reduce risks to health, safety, and the environment. All purchases should:

• Refrain from procuring cleaning or disinfecting products  containing carcinogens, mutagens, or teratogens
• Refrain from procuring chlorofluorocarbon-containing refrigerants, solvents and similar products.
• Procure readily biodegradable surfactants and detergents that do not contain phosphates.
• Maintain buildings and landscapes, manage pest problems through the application of prevention techniques and physical, mechanical and biological controls
• Procure products with the lowest amount of volatile organic compounds (VOCs), highest recycled content, and low or no formaldehyde in materials such as paint, carpeting, adhesives, furniture and casework.
• Reduce or eliminate the use of products that contribute to the formation of dioxins and furans, including, but not limited to:
  • Paper, paper products, and janitorial paper products that are bleached or processed with chlorine or chlorine derivatives
  • Products that use polyvinyl chloride (PVC), including, but not limited to, office binders, furniture, flooring, and medical supplies
  • Procure products and equipment with no lead or mercury. For products containing lead or mercury, give preference to those with lower quantities of these metals and to vendors with established lead and mercury recovery programs.
  • Consider vehicle procurement alternatives to diesel such as compressed natural gas, biobased fuels, hybrids, electric batteries, and fuel cells, as available.

Top

General Principles Associated with Purchasing

Whole of life value for money
The University has endorsed a whole of life value for money approach to purchasing which concentrates on achieving the best possible return from all University expenditure on goods and /or services, recognising that this may not necessarily amount to purchasing at the lowest price to specification and considers the environmental and social impacts of the purchase. As such, the whole of life value for money principle embraces the total cost of the product or service over the life of the requirement including transport costs, manufacturing processes, fitness for purpose, timely delivery, and local support. It also involves an assessment of the wider benefits it may contribute to other objectives in areas such as business and industry development, environmental protection, energy and water conservation, waste minimisation etc.
Evaluation criteria in respect of whole of life value for money purchases may include:

• More readily available spare parts, product updates and servicing support
• More reliable warranty service
• Shorter supply lines
• More convenient communications for contract administration
• Avoidance of  currency fluctuations
• Energy and water efficiency of the product
• Better knowledge of Australian design manufacturing and quality standards
• Better knowledge of Australian environmental legislation
• Greater scope for cooperative product development and influence over the supply base
• Benefits of companies that have a good record of industrial relations and sustainability principles in practice (such as sustainability policy, green products)
• Benefit to the University from the transactions occurring within the local area and the employment created as a consequence.
• Quality, quantity, risk, timeliness and cost for whole of life basis
• Supplier responsibility of taking back packaging and hazardous components of goods.

Best purchasing practice
It is in the University’s best interests to ensure that good purchasing practices are followed at all times. While the need for open and fair purchasing is a legal and a moral obligation on all staff, good management practice dictates that, at all times, the University will maximise the potential for the best product/service to be acquired at the most attractive price with consideration to sustainability principles.
The University has an obligation to the community it serves to ensure that its operations are free from corruption or improper conduct. The responsibility to prevent corruption, fraud and conflict of interest rests with all University staff members, and senior management of the University will need to ensure that all those involved in the purchasing process at whatever level of sophistication are fully aware of their obligations.
Anti-competitive behaviour or any other practice which denies other participants legitimate business opportunities is unacceptable.

Conflicts of Interest
A conflict of interest arises when a public official is in a position to be influenced or appear to be influenced by his or her private interests (financial, personal or business) when doing their job.

Conflicts of interest of those involved in any decision making associated with procurement processes result in a lesser standard of independence than that required to maintain the integrity of the process. Interests may also be categorised as financial or non-financial depending on whether there is a financial advantage involved.  Conflicts of interest can be actual, perceived or potential.  Failure to declare and/or effectively manage conflicts of interest can damage the integrity of the procurement process, therefore eroding public or market confidence in the process outcomes.  The management of perceived or apparent conflicts of interest is no less important than the management of actual conflicts of interest.  Inadequate systems for the management of conflicts of interest provide opportunities for corruption, maladministration or substantial waste of public money.

A non-financial interest exists if a public official has a personal interest in aspects of the procurement process as a result of a relationship based on common interest such as sporting, social or cultural activities as well as family and other (e.g. friendships) relationships.

For example, a non-financial conflict of interest specific to procurement would include a public official involved in the procurement process having a friend or family member working for a company or organisation who could be a potential respondent to a tender or quotation process.

In relation to the above example, it is noted that this interest could become a financial conflict of interest in the following circumstances:

• If it was known that the relative or friend worked on the proposal for the supplier relationship with the University and the company had a performance related bonus system in place.
• If the relative or friend was a shareholder in the potential supplier to the University and there is the potential to benefit financially from decision-making associated with the procurement.

Thus, a financial conflict of interest is any interest where a public official or related party could benefit financially from any decision making processes associated with the University’s procurement activities. A conflict of interest may either be actual, perceived or potential which are differentiated in the table below:

Actual conflict of interest	Perceived conflict of interest	Potential conflict of interest
A public official is in a position to be influenced by their private interests when doing their job.	A public official is in a position to appear to be influenced by their private interests when doing their job.	A public official is in a position where they may be influenced in the future by their private interests when doing their job.

 

Fraud and Corruption Prevention
All staff members have a duty to report incidents or suspected incidents of fraudulent or corrupt conduct. Fraud is the use of deceit or secrecy to obtain a financial benefit to the detriment of the University. Examples of fraudulent acts include:

• Receipt of “bribes” or “commissions” or “gifts” from contractors
• Misappropriation of University assets;
• Obtaining unjust advantage by misusing information gained during the course of your employment;
• Submitting false claims.

Corrupt conduct is dishonest behaviour which adversely affects the honest and impartial exercise of official functions. It includes:

• Providing or accepting a bribe;
• Dishonest or partial exercise of official functions, such as awarding a purchasing contract to a friend or relative;
• Breaches of trust by activities such as using University assets or information for personal gain e.g. personal use of a University car; unauthorised release of personal information.

Staff reporting incidents or suspected incidents of fraud or corruption may do so under the Protected Disclosures Act.

Accountability Principle
Any documentation must demonstrate to a reader of the relevant records that value for money has been obtained, that all potential suppliers were fairly treated and given an equal opportunity to make a bid, and that the supply process was conducted with probity and transparency.

Probity Principle
The University advocates probity in all purchasing activities. Creating and maintaining probity involves more than simply avoiding corrupt or dishonest conduct. The Probity Principle involves adhering to the principles identified in the Purchasing Policy in addition to:

• Retaining impartiality to the purchasing activity outcome;
• Generating confidence in the process;
• Removing ambiguities in the evaluation of proposals;
• Ensuring that overall project objectives are met; and
• Minimising costly challenges in the future concerning the integrity or processes of the project.

Fringe Benefits Tax
Fringe Benefits Tax is payable on that portion of official hospitality expenditure attributable to staff of the University and their associates, and is charged back to the department responsible for the expenditure. In short, the effect of FBT is to double the cost of entertainment and this must be taken into account in any decision to incur entertainment expenditure. Full details of the impact of FBT may be obtained from the University FBT policy document.

Top

Quotation and Tender Requirements

The list below defines the quotation requirements for various transactions. A transaction is defined as being contained on a single requisition whether or not it contains multiple items.

Values above are gross costs, excluding GST. Quotations are not required when goods or services are supplied under Government or University contracts. Splitting of intended purchases over more than one requisition to avoid compliance with financial delegations or policies may result in disciplinary action against the staff member concerned.

Workers Compensation
The University as a principal contractor, will need to check that the subcontractors have the proper workers’ compensation insurance, have paid all workers’ compensation premiums associated with that work, and are up to date with their premium payment.
Legislation requires that the University must obtain:

• A copy of the contractor’s Certificate of Currency;
• A signed copy of the Subcontractor’s Statement regarding Workers’ Compensation Payroll Tax and Remuneration

The University has implemented the following procedures:

• For all new work, the contractor must provide these two certificates at the time of quote given (either written or verbal)
• For work in progress, the certificates are required before payment will be made.

Also, the principal contractor should check that their subcontractors are classified in the correct industry, have declared an appropriate amount of wages for their insurance cover and have signed a statement thatall workers’ compensation premiums applicable for that work have been paid.

Top

The Benefits of Sustainable Procurement

The University has much to gain from the implementation of sustainable procurement practices. Some of the benefits of sustainable procurement which have been identified include:
1. Reduces adverse environmental impacts arising from procurement action.

• Reduces waste to landfill; saves water; reduces greenhouse gas emissions; decreases air and water pollution; saves money through re-using materials and products; and reduces consumption of both natural and processed resources.
• Ensures the health and safety of the community.

2. Makes more efficient use of public resources.

• Reduces costs through greater energy efficiency, reduced waste disposal, and reduced risk management.
• Lowers the cost for products over their life cycle.

3. Stimulates the local and global markets to innovate and produce more sustainable products and services.

• Increases the availability of environmentally preferred products and services at cost-effective prices; expands the market for environmental products and services with potential for local businesses.
• Improves the level of information available to buyers about the content and performance of products, facilitating the choice to purchase environmentally preferred products.

4. Demonstrates that Macquarie University is committed to achieving sustainability objectives.

• Provides leadership to the community in demonstrating social and environmental responsibility through the purchase of ethically and environmentally preferred products and services.
• Reduces the potential negative publicity associated with the purchase and use of products, services and suppliers with poor environmental and social responsibility records.

Top

Purchasing with Consideration to Sustainability

1. The connection between waste and purchasing.

There is an obvious linkage between purchasing and waste given that everything we bring in to the University is likely to be disposed of at some stage. As such it is necessary to consider the following points when making purchasing decisions in order for the University to meet its waste reduction targets:

• Reduce waste at the point of purchase.
  Faculty, staff and students can help achieve the University’s waste reduction goals by practicing the four R’s: rethink, reduce, reuse, and recycle. Priority should be given to reducing waste upstream by purchasing products made from recycled material that can be reused or recycled.
  To reduce disposal costs and waste, choose items that can be remanufactured, recycled, or composted. Many products made from recycled materials are available – paper is a perfect example. Work with suppliers to minimise the amount of packaging used to transport goods also.

• Purchase durable and reusable goods.
  Using life-cycle cost analysis, rather than automatically choosing goods with the lowest purchase price, can help departments identify the best long-term value. Factor in a product's estimated life span as well as its energy, maintenance, consumable supplies and disposal costs. For example:
• Consider durability and reparability of products prior to purchase.
• Invest in goods with extended warranties. Conduct routine maintenance on products/equipment.
• Save money and minimize waste by eliminating single-use items, such as non rechargeable batteries, in favor of rechargeable batteries. Use rechargeable cartridges. 
  
  
• Specify product and packaging take-back.
  Increasingly, product vendors are offering to take back the products they sell when they become obsolete. By utilizing vendors who offer an Extended Product Responsibility (EPR), especially take-back, recycle, and disposal programs, departments are ensured equipment and products are disposed of properly whether recycled, donated, refurbished or disposed of without the added cost.
  
  Some vendors will take back used items such as carpeting and toner cartridges when purchasers buy new products. For example, toner cartridges are disposed of properly or sent to be recharged and sold at a lower cost.
  Departments should require vendors to assume responsibility for some of their shipping materials, such as wooden pallets and excess packaging materials. When ordering large furniture or computer shipments request products ship blanket-wrapped or using reduced packing material.

• Buy goods in bulk or concentrated form.
  This practice can significantly reduce the packaging associated with lower product quantities and save costs. Carefully estimate demand when purchasing in bulk; purchasing more than is needed can create excess that becomes waste.

2. Consider alternative options to purchasing

• Lease and rent where appropriate
  Consider an operating lease or rental rather than a purchase or capital lease. Lease and rental contracts give vendors the responsibility for the upkeep of goods such as computers and copiers, and for managing them at the end of their useful life. Be sure to check what the process for disposal is at end of life with the lease provider prior to signing any contracts. Businesses that lease equipment tend to manufacture more durable items, salvage reusable parts, refurbish, recycle, or donate used equipment that can no longer be leased. Renting is a cost-effective option for short-term equipment needs.

3. Manage surplus effectively
Waste can be reduced simply by eliminating excess purchases. Reviewing past needs can minimize the procurement of unneeded items so that you only order what you actually need. Clean out office supply cabinets and post re-usable items such as folders on the sustainability forum. Departments should utilize the Office of Facilities Management for disposing of unwanted, out-dated property. Facilities Management will endeavour to redistribute, recycle, or thoughtfully dispose of surplus property.

4. Procedure commodities that are certified to meet sustainability standards

• Paper and Forest Products:
• Forest Stewardship Council Australia
• Electronics and Appliances:
• Minimum Energy Performance Standards Regulations in Australia
• Energy Star Ratings
• Cross-sector:
• Environmental Choice
• Be Green
• Choice
• Renewable Energy:
• ACF Green Electricity Watch
• Green Electricity Watch
• Building Practices and Indoor Air Quality:
• Green Building Council Australia
   

5. Procure remanufactured goods and use refurbishing services.

It is generally less expensive to buy remanufactured goods such as remanufactured toner cartridges, or to use refurbishing services for computer upgrades, carpet repair, and furniture reupholster, than to buy new items. "Recharged" toner cartridges typically save departments 30 to 50 percent per sheet of paper. Remanufactured items should require no sacrifice in performance.

6.  Purchase goods containing fewer toxic constituents.
By procuring goods with fewer or no toxic chemicals, departments can reduce their hazardous waste disposal, future liability concerns, and the risk of occupational exposure and spills. Low-toxicity products such as mercury-free medical supplies, printing ink low in volatile organic compounds (VOCs), and chrome and chlorine free cleaning supplies are increasingly available and cost-competitive. See the Cross-sector certifications to help selecting products (example: Environmental Choice or Be Green for cleaning products).

Top

Glossary of terms associated with Sustainable Procurement

1. Environmentally and Ethically Preferable Products are products that have a lesser impact on human health and the environment when compared with competing products. This comparison may consider raw materials acquisition, working conditions of those producing the product, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product.

2. Green Purchasing means purchasers take into consideration the environmental impact of products when making purchasing decisions, giving preference to more environmentally friendly products when quality and price are equal or superior.

3. Recycled Products are products manufactured with waste material that has been recovered or diverted from solid waste. Recycled material may be derived from post-consumer waste (material that has served its intended end-use and been discarded by a final consumer), industrial scrap, manufacturing waste, or other waste that would otherwise have been wasted.

4. Sustainability means meeting today’s needs without compromising the ability of future generations to satisfy their needs. See the Sustainability Strategy for more information.

5. Waste Prevention means any action undertaken by an individual or organisation to eliminate or reduce the amount or toxicity of materials before they enter the solid waste stream. This action is intended to conserve resources, promote efficiency, and reduce pollution.

6. Rethink means to reconsider whether the purchase you are masking is necessary or not. Are there products already available within the University that will fulfil your needs?

7. Reuse means repairing what is broken or giving it to someone who can repair it or use it in its current state.

8. Reduce means using less of products and utilizing other means of doing business when available to reduce the amount of waste discarded.

9. Recycle means to reprocess and reuse materials and/or products.

10. Life Cycle Evaluation is an evaluation of the major environmental impacts in each life-cycle stage of a product category including resource extraction, production, distribution, use, and eventual disposal or recycling. The evaluation considers energy, resource use, and emissions to air, water, and land, as well as other environmental and health impacts. The purpose of this evaluation is to identify significant life-cycle stages to be addressed.

11. Life Cycle Cost Analysis is an economic evaluation technique that determines the total cost of owning and operating a building or equipment.

12. Rechargeable means to replenish the amount of electric power in something, especially a battery.

13. Leasing is a legal rental contract allowing somebody exclusive possession of another's property for a specific time in return for a payment.

14. Certification is an official document or seal providing evidence and details of something that is authentic and verified by a third party.

Top

General Conditions

1. Purchasing Controls:
Control on purchasing procedures are contained throughout this document however, the key controls are:

• Access to the purchasing system is restricted to authorised staff members who are registered within the system by the Finance System Administrator.
• All purchases authorised in accordance with the Delegations and Authorisation limits.
• Access to a University corporate credit card is restricted to staff members who have been authorised by the Head of the Department or Director.
• All purchases are to be made through the University purchasing system or the use of corporate credit cards.
• Purchases outside State Government contracts are supported by an appropriate number of competitive quotes or tenders where relevant.

2. Cancelling orders
Orders are binding contracts and can only be cancelled if the supplier cannot fulfill the contract or by negotiation between the University and the supplier. When an order is cancelled, funds committed are automatically returned to the account from which the order was raised.

Blanket orders can be cancelled at any time during the year, except those governed by the conditions of a contract. Those orders can only be cancelled by mutual agreement with the contractors.

Any request to cancel a blanket order, must be sent to Business Services, in writing, for execution.

Once the order is closed, any remaining commitment is credited to the original account. No delivery will be accepted against a cancelled order.

3. Petty Cash
Petty Cash funds are available to make small or emergency payments where there is no acceptable alternative method of payment.

Petty Cash is a facility of last resort, and is only to be used where alternatives are not acceptable.

The preferred payment options are:

• A supplier invoice processed by Accounts Payable
• Direct payment by utilising the University’s Business Card (MasterCard)
• Direct reimbursement of expenses incurred to the claimant’s nominated Bank Account.

It is the responsibility of the Delegate Officer authorising the payment to ensure that the request for reimbursement satisfies all the policy requirements.

Petty Cash reimbursements are for staff members with a legitimate and urgent need to purchase small goods/services up to the value of A$50.00 (GST exclusive).

Claims that are deemed to be for other than University purposes will not be reimbursed

Limits Non negotiable limits apply to Petty Cash transactions. They are:

• No salary or wage related payments will be accepted
• Reimbursements by the Cashier are restricted to a total of A$50.00 (GST exclusive), per person per day
• Expenditure of any kind more than 30 days old will not be accepted for Petty Cash reimbursement

Non Allowable Expenditure Items in the following categories will not be allowable expenditure:

• Stationery
• Office supplies
• General consumables
• Equipment of any kind
• Restaurant meals
• Entertainment
• Purchase of alcoholic beverages
• Any recurring or regular expenditure such as milk vendor payments, newspapers, etc.
• Photocopying and printed matter
• Vehicles expenses, repairs and fuel
• Taxi fares
• First Aid Supplies
• Text and reference books
• Couriers and postage
• Mileage reimbursement
• Research materials
• Fines and Fees
• Telephone and fax expenses
• Travel expenses
• Gifts, card or flowers.

Allowable Expenditure Examples of items which are considered appropriate to be reimbursed from Petty Cash include:

• One off minor payments where a vendor will not accept one of the preferred methods of payment
• Occasional bus and rail fares
• Infrequent tolls
• Off campus parking

Petty Cash is available centrally from the Cashier, Revenue Services, Lincoln Building.

4. Contract Agreements and Licences

• Contract Agreements
  When Budget Units officers propose entering into contracts or agreements on behalf of the University for the purchase or use of goods/services, financial, legal and sustainable implications or requirements need to be fully explored. When contracts contain clauses that are not standard or vary from previous contracts or agreements, a copy of the contract should be submitted to the University Legal Officer for consideration and advice. Once the Budget Unit accepts a contract proposal, it is signed by a member of the executive with sufficient delegated authority and forwarded to Business Services for processing. A copy of the contract must also be forwarded to the university’s Insurance Manager to ensure adequate protections are in place and that all terms and conditions are met by the contractor. Any enquiries regarding agreements or contracts must be referred to Business Services not to the contractor.
• Maintenance Agreements
  Individual Budget Units negotiate maintenance agreements with the supplier. The Budget Unit then uses Finance One to raise a requisition for the contract. The use of a standing requisition is recommended if the contract will be on going so that each year the contract/order can be renewed with the same details.
  
• Licence Agreements
  The University may be required to enter into licence agreements when purchasing computer software or other items. It is especially important, prior to such purchases being made, that the conditions of such licences are examined to ensure that the University is not placed in a disadvantageous position or that conditions do not put unreasonable constraints on the University and do not contradict the requirements of the Purchasing Policy.
  
  Where there is some doubt about any of the clauses within an agreement, refer the agreement to the University's Legal Officer for an opinion and advice.
  Before purchasing a licence, examine the agreement for the following:
  • Attention to the details of the Purchasing Policy
  • The term or duration of the licence
  • The cost of service, if applicable, is fixed or open ended - in general it is desirable to tie cost increases to the CPI
  • What the licence offers, for example, conditions of usage, access by the licensee, confidentiality of any programs
  • Options for termination and the notice required for termination by either party
  • Frequency of payments (that is, annually, quarterly, monthly). As it may be a financial disadvantage for the University to make a single annual payment for large contract amounts, it may be necessary to negotiate alternative frequencies of payment.
  
  If the licence agreement is acceptable, have it approved by an officer with sufficient delegated authority and send the original to Business Services for processing of the order.
  
  In approving the licence, the officer is committing both the Budget Unit and the University to the conditions stated on the agreement.
  
  A copy of the licence agreement must be retained within the Budget Unit so it can be referred to in cases of disputes
  
  It is the responsibility of the appropriate officers within a Budget Unit to ensure that both the supplier and the Budget Unit comply with all terms and conditions of an agreement or contract.

5. Finance One
As part of Finance One, the authority to approve transactions is linked to user’s names on the system. Each user is assigned a financial delegation as requested by the Head of the Budget Unit. It is therefore essential NEVER TO DIVULGE user’s name and password combination to ANY person. To divulge this information is considered a serious breach of security. All people who need access to Finance One must apply separately for their own user names using the Request for Financial Systems Access form; http://www.ofs.mq.edu.au/finance_forms/index.htm#Finance%20One%20forms

There are security features built into Finance One:

• Access to the system may only be gained from computers registered with the System Manager
• Access is limited to known operators whose user names are linked to passwords, Budget Unit location and delegation levels. This reduces the risk of fraudulent transactions being entered and increases the confidentiality of information.

All users should log out of Finance One when they are no longer accessing the system. Failure to do this may result in fraudulent access to the system by another person for which the original operator will be held responsible. Users are advised to ensure a time lockout of their PC to avoid inappropriate use.

Top

Guideline Information

Contact Officer	Purchasing and Asset Manager, Office of Financial Services
Date Approved	24 November 2009
Approval Authority	Chief Financial Officer
Related Policies, Procedures, Guidelines, Forms or Templates	Purchasing Policy / Procedure
Keywords	Purchasing, Procurement, Sustainable Procurement, Buying, Product