Staff, Higher Degree Research Student or Contractor |
1. Establish a need to purchase a good or service.
2. Follow the steps listed within the Purchasing Checklist to identify the required good and/or service.
3. University Preferred Suppliers / Government Contracts
Ensure University Preferred Suppliers or Government Contracts are utilised where appropriate:
- Government Contracts
- Leasing Provider – Equigroup
- Multifunction and Photocopying Devices – Konica Minolta
- Printing – Macquarie Lighthouse Press (exception will only be granted under the approval of the Deputy Vice-Chancellor and Chief Operating Officer or delegate)
- Stationery (including paper) – OfficeMax (exception will only be granted under the approval of the Deputy Vice-Chancellor and Chief Operating Officer or delegate)
- Water Filtration – Hydrafiltra
In addition, for:
- Air/Rail Travel – see Travel Policy
- Catering – see Entertainment Policy
4. Quotation Requirements
If goods cannot be covered by the University preferred suppliers or Government Contract, it may be necessary to obtain quotes. When requesting written and verbal quotation, It must be ensured that information provided to suppliers is identical and the offers received are evaluated against identical criteria.|
| Order Value |
Quotation Requirements |
| $1000 and under |
Can be purchased on a University Credit Card |
| $5000 and under |
One verbal quotation |
| $5001 to $10,000 |
One written quotation |
| $10,001 to $30,000 |
At least three verbal quotations with the selected supplier providing written confirmation of the quotation |
| $30,001 to $100,000 |
At least three written quotations |
| Over $100,000 |
Tenders must be called |
Review the Purchasing Guidelines to clarify quotation requirements prior to proceeding.
5. Refer the quotes to the appropriate Purchasing Officer within your budget unit if you do not have the appropriate Delegation of Authority and/or access to Finance One.
6. Staff members involved in the purchasing process must not have a vested or perceivable conflict of interest in the outcome of any quotation or tender and must disqualify themselves from that process if there is any conflict or perceivable conflict of interest. The Purchasing Guidelines has detailed information regarding Conflicts of Interest. A Conflict of Interest checklist and Declaration can also be completed to assist in the process of identifying potential conflict.
7. All staff, Higher Degree Research (HDR) students and contractors need to be aware of the requirements of Workers Compensation when purchasing services. The University as a principal contractor, is required to check that 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 University must ensure that its principal contractors have verified that its subcontractors are classified in the correct industry, have declared an appropriate amount of wages for their insurance cover and have signed a statement that all workers’ compensation premiums applicable for that work have been paid.
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Heads of Department, Directors, Executive Deans, Supervisors, Delegations of Authority |
- Ensure that fair, ethical and sustainable purchasing practices are undertaken on behalf of the University. This can be done by ensuring the Purchasing Checklist has been used.
- Always be alert to situations that may have the potential to create a conflict of interest for purchasing staff (e.g. where a purchasing officer or a staff member involved with a quotation or tender has a pecuniary or other interest in a supplier organisation that is making a bid,(e.g. some form of personal relationship). Use the Conflict of Interest Checklist.
- Ensure all purchases have received approval by an officer with sufficient Delegation of Authority.
- Ensure that only appropriate staff members, HDR students or contractors are given access to Finance One.
- Ensure access is granted for all approving officers to eliminate the need for hard copy signatures.
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Budget Unit |
1. 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.
All contracts should be submitted to the University Solicitor for consideration and advice.
Once the Budget Unit accepts a contract proposal, it is signed by a member of the University 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.
All enquiries regarding agreements or contracts must be referred to the Business Services Section and not to the contractor.
2. 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.
3. 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 or do not contradict the requirements of the Purchasing Policy and Purchasing Checklist.
The agreement must be referred to the University's Legal Office for an opinion and advice.Before purchasing a licence, the agreement should be examined to ascertain the following:
- Its adherence to the principles of the Purchasing Policy
- The term or duration of the licence
- The cost of the service and whether it 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 agreement to the Business Services Section for processing of the order.
In approving the licence, the Budget Unit 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.
4. Petrol Cards
4.1 Obtaining a petrol card
Budget Units that own or regularly hire vehicles can obtain petrol cards for the use of their staff. The Head of the Budget Unit is responsible for the use of these cards.
Staff members operating vehicles under the salary sacrifice scheme can also obtain petrol cards.
Normally petrol cards are organised when a vehicle is purchased. Budget Units can request additional cards by sending a memo to the Business Services Section.
When applying for a petrol card you must supply the following information:
- Type of fuel required, for example, unleaded petrol, oil, gas, diesel
- Account name and number for payments
- Budget Unit name or individual staff member's name.
Petrol cards must be collected, and signed for, in person from the Business Services Section.
4.2 Using your petrol card
Staff members can use the petrol card at service stations of the company issuing the card and can only purchase the fuel approved for that card. When tendering the petrol card, you are required to give the vehicle registration number and its odometer reading.
4.3 Checking your petrol card account
It is the card user’s responsibility to verify the petrol card charges each month.
Fuel is charged at the supplier's published monthly government price or the bowser price whichever is lower.
4.4 Renewals of petrol cards
When petrol cards are due for renewal, a memo from the Business Services Section will be sent to the cardholder.
Users need to pick up the new card from the Business Services Section. They will be required to sign for it and hand in the old card.
4.5 Cancelling a petrol card
To cancel a petrol card, send a memo to Business Services giving details of the card to be cancelled.
4.6 Lost or theft of a petrol card
In the case of a card being lost or stolen, the cardholder must notify Business Services immediately. If the loss or theft occurs outside business hours, the cardholder should contact the provider of the card directly and advise Business Services as soon as possible.
5. Delivery and acceptance of goods and services
It is the responsibility of the Budget Unit to check the quality and quantities of the goods received and report any discrepancies to the Business Services Section within 48 hours for corrective action. If discrepancies are not reported, payment of the invoice will proceed within the negotiated settlement terms.
6. Legality of Purchase Orders
University staff must note that a properly executed purchase order will become a legally binding document (refer to Appendix C). In some cases the purchase order could become a key document at law, as it is a written contract agreed between the University and a supplier. Staff should also be aware of the requirements of service level agreements if in existence. The University terms and conditions of purchase accompany each purchase order issued. If a supplier unconditionally accepts the University purchase order then the terms and conditions that accompany the purchase order will formally govern the transaction. However, if a supplier wishes to amend the University terms and conditions, the matter must be referred, without delay, to the Business Services Section for advice. Only in exceptional circumstances and with the approval of Business Services, will the terms and conditions of the supplier be agreed to over those of the University.
All purchase orders are issued by the Business Services Section. They are based on purchase requisitions entered into Finance One (FMIS) by a staff member within the Budget Unit
7. Credit Card
University credit cards are to be used for University accommodation (but not airfares) and other travel related expenditure. They can also be used for the acquisition of goods/services when it is not cost effective to raise a purchase order. Examples of such purchases are conference booking fees, some overseas payments over the internet, internal catering, small equipment items, etc. Refer to the Credit Card Policy.
8. Petty Cash
Petty cash is used for advances/reimbursements for staff members with a legitimate and urgent need to be reimbursed or to purchase small goods/services up to the value of A$50.00 (GST exclusive) where there is no acceptable alternative method of payment. The preferred payment options are:
- A supplier invoice processed by Accounts Payable
- Direct payment by utilising the University’s Business Card
- Direct reimbursement of expenses incurred to the claimant’s nominated Bank Account.
It is the responsibility of the Delegated Officer authorising the payment to ensure that the request for reimbursement satisfies all the policy requirements. Claims that are deemed to be for other than University purposes will not be reimbursed. 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.
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Business Services Section, Office of Financial Services |
1. Business Services can provide assistance to Budget Units of the University on all matters related to the acquisition of goods/services.
2. Business Services is the only office authorised to issue official University orders. After a purchase order is issued, no correspondence is to be undertaken with suppliers without consultation and approval by the Business Services Section.
3. It is the responsibility of the purchasing officer issuing the order to ensure that:
- All required procedures, including quotation requirements and sustainable options have been followed where applicable.
- The details on the order are accurate.
- Issue the contract for supply terms & conditions (Appendix C) with all Purchase Orders
4. Blanket orders
Blanket orders can only be approved by the Assistant Director, Business Services Section. They are used for:
- the regular supply of specific goods during the calendar year
- cleaning contracts
- maintenance contracts
- mail services
Blanket orders are closed at the end of each calendar year. 5. Variations to Orders
Variations to orders must be kept to a minimum. A written request to vary the order, approved by an authorised officer, must be forwarded to the Business Services Section for processing.
6. Renewal of Blanket Orders
A list of blanket orders due for renewal must be submitted annually to the Assistant Director, Business Services Section for revision and approval.
7. 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.
All requests to cancel a blanket order must be sent to the Business Services Section, in writing, for processing.
Once the order is closed, any remaining commitment is credited to the original account. No delivery will be accepted against a cancelled order.
8. Delivery and Acceptance of goods and services
For all North Ryde purchases, the University operates a central store for receipt of goods ordered. The Central Store is located at 299 Lane Cove Road, North Ryde.
When goods are delivered to the Central Store, the Stores receiving staff print a Store Delivery Advice (SDA) from the order in Finance One. The SDA and the consignment are delivered to the Budget Unit. If the order is a blanket order, a copy of the supplier's delivery docket is sent with the SDA. This SDA form provides details of all items delivered. A Budget Unit officer must sign for receipt of the goods at the Budget Unit.
A copy of the SDA is left with the officer concerned and the original is to be returned to the Business Services Section with the delivery driver.
9. Petrol Cards
Business Services is responsible for the issue of Petrol Credit Cards to Budget Units and University staff members. Petrol cards are for use with University-owned vehicles or vehicles hired or leased by the University for official business. |
