Unauthorized Purchases

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An unauthorized purchase is one where a purchase, regardless of dollar amount, is made on behalf of the university without the appropriate approvals being secured first. 

Unauthorized Purchasing Examples

Unauthorized purchases are those purchases, regardless of dollar amount, that take place without prior departmental approval and a university-approved purchase order in place.  The purchased item or service may not be inappropriate, but the selected purchasing method was inappropriate, against university policy, and unauthorized.

Examples of unauthorized purchases include:

  • employee purchasing a new computer for their office on a personal credit card
  • supplier doing any type of service (including maintenance or repair work) for a department without having an official Purchase Order established first
  • employee using their Procurement Card without securing the appropriate departmental approvals first

Acquisition of products or services on behalf of the university requires appropriate review and approval(s) BEFORE the purchase is made.  The appropriate approvals are generally required, at a minimum, from the GL Chart String approver, or PPM Project Manager, before the purchase is made.

Risks of Unauthorized Purchasing

There are multiple risks of not following proper procurement methods, including, but not limited to:

  • Loss of future funding to the university as a whole (and not only to the department that used unauthorized purchasing methods)
  • Safety concerns with appropriate insurance not established and/or in place
  • Violations of UC policy (e.g., contracting out policy) and state and federal regulations (prevailing wage, fair wage, etc.)
  • Spending more than what would have been spent, had university purchasing agreements been utilized
  • Missing out on extended warranty and/or other service coverage from outside suppliers
  • Equipment non-compliance or non-compatibility with existing equipment/systems

Authorized Purchasing Methods

Authorized purchasing methods (in order of preference) include:

See the HOW TO: Buy page for a full list of approved procurement methods.

Using one of the official purchasing processes ensures:

  • All approvals are properly documented BEFORE the purchase takes place
  • The university receives the lowest overall cost
  • Liability and insurance concerns are properly addressed
  • Purchase meets the requirements of university policy, state and federal codes, and funding sources

Payment Process for Unauthorized Purchase

  • Refer to the Professional Expenses page to learn how to process a payment to a UC Davis employee for an unauthorized purchase.
  • See the separate guide for processing a payment to an outside supplier for an unauthorized purchase.
  • NOTE on Approvals: 
    • The GL Chart String approver or PPM Project Manager approval is required for every unauthorized purchase payment request.  This approval is secured on the Invoice document that routes to them after Accounts Payable creates it.
    • A signature from the Assistant Dean or Associate Vice Chancellor is required on the Unauthorized Purchase Statement form if the unauthorized purchase was greater than $10,000.  
    • The Unauthorized Purchase Statement requires the type of unauthorized purchase to be selected. If it was for on-campus services or software, additional review and approval is required from Procurement and Contracting Services.  

Unauthorized Purchase Reimbursement Request Can Be Disapproved

A payment for an unauthorized purchase can be disapproved for multiple reasons, including, but not limited to:

  • Use of an inappropriate supplier.
  • Purchase not appropriate for university use (does not support teaching, research, public service, or patient care).
  • Price comparison shows the price to be significantly higher than the University’s price (including pricing on Strategic Sourcing Agreements).  In some cases, the payment allowed will only be for the amount the university would have paid, had the appropriate purchasing procedures been followed.

Purchases that are not appropriate or necessary for official university business (e.g, personal items) will NOT be reimbursed.

Personal Purchases

Although this information page is primarily focused on unauthorized purchasing methods, it is important to note that personal purchases are also against policy and never allowed.
 
Every university purchase must support one of the business purposes of the university:
  • Teaching
  • Research
  • Public Service
  • Patient Care
Every purchase request, whether processed in Aggie Enterprise or on a Procurement Card must clearly identify the business purpose of the requested goods/services.
 
Any instance of personal purchasing is to be repaid to the UC regents by the person who made the purchase.
 
There must also be documentation indicating what steps are being taken within the department to ensure that the personal purchasing will not occur again (e.g., training, etc.).

Policy