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Unauthorized Purchases
An unauthorized purchase is a purchase made outside of one of the authorized buying methods
shown on the Buying Decision Chart.
"I didn't Know" is not an acceptable reason for making an unauthorized purchase
outside to the University approved purchasing process.
Examples of unauthorized purchases include but are not limited to:
- Employee purchases product for the office, writing a personal check for the purchase;
- Employee calls a supplier and places an order for supplies without prior issuance of a purchase order or use of a Purchasing Card;
- Employee purchases a new computer for the office using a personal credit card;
- Employee signs a supplier contract for services or supplies.
In all four cases above, the employee made a purchase (committed funds) on behalf of the
University without securing the appropriate approvals first and use of a
University authorized buying method. The purchased
items may be appropriate for business use; however, approvals for all University purchases must
be secured before the purchase is authorized through issuance of a BEN Buys
purchase order or use of a Purchasing Card.
Factors to consider with unauthorized purchases include the costs of processing invoices and
checks, personnel time, and any travel involved to make such a purchase. Many times, these
costs offset the perceived savings in the purchase price. In some cases, unauthorized purchases
have resulted in supplier payment issues that have negatively impacted supplier relationships
and credit holds for the entire University. Following one of the authorized buying methods
ensures that all approvals are properly documented and also ensures that the University
receives the best price. In some cases, employees may not receive full reimbursement for
a purchased item. If you need handle a payment of unauthorized
after-the-fact transactions, instructions are available.
How to Avoid Unauthorized Purchases?
Education is key! Let faculty and staff know what purchasing methods are available to them.
The appropriate utilization of University
authorized buying methods should be able to satisfy
all purchase requirements. If there is a unique requirement that may require special handling,
contact Purchasing Services for advice or
assistance.
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