Internal Audit Department Offers Compliance Tip Regarding Purchasing Pitfalls

September 16 2009

Purchasing pitfalls is the subject of this compliance tip from the Internal Audit Department.

“Our educational mission requires a broad and sometimes unique range of items to support the many programs, projects, contracts and grants that operate on campus,” said Tom York, director of internal audit. “Purchasing goods and services to support them using the variety of funding sources available is a critical function and a significant responsibility. Avoiding the numerous potential pitfalls requires navigating a complex set of statutes, regulations, policies and procedures and calls for diligence and attention to detail, plus knowing where to look for help when you need it.”

University policy statements that establish key standards related to purchasing can be found on the Office of Legal Affairs Web site. Review the sections on property, finances, obligations and services. A helpful collection of guidelines on the ins and outs of contracting is located on the Web site’s legal topics section.

York said a properly constructed, reviewed and approved contract must be in place before a contractor begins any related work or payments are made. The University’s Purchasing Department has developed a purchasing manual that provides a wealth of information.

“Responsibility for purchasing should not be taken lightly. In addition to the potential for locally applied disciplinary procedures, there are also criminal statutes with attached penalties related to contracting (GS 14-234) and receiving inappropriate gifts (GS 133-32) ,” stated York.

Direct questions about purchasing rules and standards to the Materials Management Department. Questions on contracts should be referred to the Office of Legal Affairs.