370.3 Ethical and Proper Spending Practices

Created by: Dana Trebing on 10/25/2004
Category: 3 - Finance and Administration; 70 - Purchasing/Supplies
 
Originator: Vice President for Finance & Administration
Current File: 370.3
Adoption Date: 03/30/2015
Reviewed for Currency: 03/30/2015
 
Replaces File: 370.3
Date of Origin: 12/03/1992
 
Classification:
 
In Archive? 0


370.3 Ethical and Proper Spending Practices

 

A. Background

A significant amount of the university’s procurement responsibilities has been delegated to authorized employees, i.e. the Designated Purchasers, to better facilitate high-volume, repetitive transactions or procurement of specialized goods and services.  These individuals must employ sound purchasing practices when performing their duties and conduct business in an ethical manner.

 

B. Policy

Individuals with procurement responsibilities are agents of the university and represent the institution when dealing with the suppliers.  These employees are expected to foster and promote fair and ethical business practices while acting in the best interest of the university.  This includes adhering to a strict code of ethics and exercising prudence in the way funds are expended to ensure maximum utilization of the budget dollar.  

 

C. Guidelines

1. Designated purchasers must be mindful of conditions and situations that could raise suspicions of supplier favoritism, self-dealing, and other unethical purchasing practices.

2. Procurement transactions that may raise questions regarding propriety and ethics should be accompanied by documentation that recognizes these conditions and includes justification as to why it is beneficial for the university to enter into such transaction.

3. All procurement decisions should be made by giving the first consideration to the objectives and policies of the university, with the goal to obtain the maximum value for each dollar of expenditure.

4. All university employees and their immediate relatives shall refrain from accepting gifts, entertainment, favors or services from current or potential suppliers that might influence, or appear to influence, procurement decisions.

5. All university employees with procurement responsibilities should encourage competition through open, fair and equitable practices in an atmosphere of good faith, and grant all competitive suppliers equal consideration.

6.  All university employees with procurement responsibilities shall promote positive supplier relationship through courtesy and impartiality in all phases of the procurement cycle, while demanding honesty in sales representation whether offered through verbal or written statement, advertisement, or a sample of the product.

7.  All university employees should obtain the consent of the originator of proprietary ideas and designs before using them for competitive procurement purposes.

8.  University employees shall not make, participate in, or attempt to influence any procurement decision if they know or have reason to know that they have a financial interest in the outcome of the decision.

9.  The Procurement Office is available to assist with questions related to propriety and ethical procurement practices.

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