Procurement Authority
Effective: Moved to Policy Library from UPM 10.2(6), UPM 10.2(7), UPM 10.2(8)
Contact: Director of Purchasing
Introduction
Each university employee shares the responsibility for maintaining the public trust in Iowa State University. All procurements of goods and services on behalf of the university are to be handled in a fair, open, and ethical manner.
Policy Statement
Purchasing Department
The Purchasing Department, within the division of the ISU Vice President for Business and Finance, has been delegated the responsibility for handling all procurement transactions and administering procurement policies and procedures. This authorization to act for the university is in accordance with Board of Regents, State of Iowa, policies and procedures.
Departments and other units
Department chairs and directors are responsible for ensuring all procurements of supplies, equipment, technical
services and professional services are conducted consistent with relevant university policies, including the
Segregation of Duties policy. Segregation of procurement-related duties among staff within a unit shall be
maintained to ensure the existence of adequate procurement controls. Adequate segregation of duties shall include
the department chair or designated individual responsible for authorizing procurements and approving payments, with
a second individual responsible for coordinating acquisition and, when possible, a third individual verifying
receipt of ordered items.
Departmental faculty, staff, directors, chairs, and deans have no inherent authority to make purchases. Purchases
of goods and services for university business purposes represent procurements and need prior review and approval by
the Purchasing Department before an order is placed or a commitment is made that binds the university, with the
following exceptions:
- Purchasing card purchases (by delegated authority only)
- Items that do not require processing through the Purchasing Department (see Resources below for link to Direct Pay Procurements)
- Certain small dollar (less than $500) non-travel related employee reimbursements that may be processed through the Controller's Department (see Resources below for link to Non-Travel Reimbursements)
- Purchases exempted by the Purchasing Department or the Vice President for Business and Finance with payments processed directly through the Controller's Department
In the event of emergency situations endangering life or property, should the Purchasing Department not be
available, orders may be placed or personal funds may be used with acquisitions reimbursed at funding department
discretion.
When a conflict of interest arises, reimbursement of personally expended funds is not permitted without Purchasing
Department approval.
University departments may seek Purchasing Department approval to use university Purchasing Cards (Visa credit
cards) for university business, subject to monthly dollar limits as established by the Purchasing Department. The
standard limits may be modified by the Purchasing Department to meet unique departmental needs. When procurement
authorization is extended to departments, such as through the use of Purchasing Cards, it is for the purpose of
facilitating daily operations. This authorization is contingent upon departmental compliance with the specific
requirements and limitations of each procurement method utilized.
Resources
- Assistant Vice President for Business Services
- Board of Regents, State of Iowa, Purchasing policies
- Contracting Authority (Non-Employment Related)
- Direct Pay Procurements
- Non-Travel Reimbursements
- Procurement
- Purchasing Cards
- Purchasing Department
- Segregation of Duties Policy
- Signature Authority for Internal Transactions
- Vice President for Business and Finance

