Purchasing Violation

Purchasing Violations

An unauthorized purchase is a purchase made without following the authorized procurement processes. 

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 on campus.
  • 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, submit 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 Procurement Office after submitting your 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 Purchasing Violation Form on Wolverine Marketplace.
  • An explanation of why policy was not followed and future corrective action will be included on the form.
  • After the form has been submitted, it will be automatically routed through the proper approvals, including Vice President approval.