An unauthorized purchase is a purchase made without following the authorized procurement
An after-the-fact purchase occurs when a University employee places an order without
first completing a requisition and receiving a purchase order.
After-the-fact and unauthorized purchases are violations of University policy and
can create significant problems for the University. In many cases, these violations:
- Result in duplicate payments to the vendor, for which the department is responsible.
- Result in higher costs for goods and services than might have been paid through standard
purchasing methods or by utilizing contracted vendors.
- Result in unauthorized supplier contracts with unfavorable terms and conditions signed
by University personnel who are not authorized agents for the University.
- Lead to significant vendor payment issues that can result in problems for other departments
- Violate the University’s purchasing policies.
- Bypass the appropriate approval process.
- Place the University at financial risk and create potential personal liability.
- Create additional, often unnecessary, work for administrative support staff.
Ways to Avoid Violations:
- If you have to place an order, create the requisition right away. If you don’t know
the exact amount of the order, you can estimate it. If you need a purchase order
in a hurry, contact the Purchasing Office AFTER CREATING THE REQUISITION and discuss
your need to expedite the order.
- You must arrange a payment method BEFORE placing an order. Placing an order assuming
that you will be able to use a P-Card or LPC only to discover that the amount is greater
than your limit is unacceptable. If the purchase may exceed your P-card or LPC limit,
enter a requisition and obtain a purchase order PRIOR to placing the order.
What to do if a violation occurs:
- If a violation occurs, fill out all sections of the Purchase Violation Form. An explanation of why policy was not followed and future corrective action will
be included on the form. You will also be required to obtain authorizing signatures
before the invoice can be paid.