An unauthorized purchase is one where a purchase is made on behalf of the university without the appropriate approvals being secured first.
- Unauthorized Purchasing Examples
- Risks of Unauthorized Purchasing
- Authorized Purchasing Methods
- Process for Requesting Employee Reimbursement for Unauthorized Purchase
- Process for Requesting Supplier Payment for Unauthorized Purchase
- Unauthorized Purchase Reimbursement Request Can Be Disapproved
- Additional Reimbursement Information (Finance & Business website)
Unauthorized purchases are those purchases that take place without prior departmental approval and a university-approved purchase order (e.g., AggieBuy, Kuali Financial System) in place.
Examples of unauthorized purchases include:
- employee purchasing a new computer for their office on a personal credit card
- supplier doing repair work for a department without having an official Purchase Order established 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 fiscal officer(s) assigned to the account(s) that are to be charged for the purchase.
There are several possible risks of not following proper procurement methods, including, but not limited to:
- Loss of future funding to the university
- Spending more than what would have been spent, had the 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 (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
Refer to the Professional Expenses page to learn how to process employee reimbursements.
This unauthorized situation occurs if a supplier has provided some type of service work before required approvals were secured on a KFS Purchase Agreement, along with the required signatures from the supplier and Procurement & Contracting Services/Business & Revenue Contracts.
- A KFS Purchase Agreement document must be created, following the appropriate procedures.
- A Confirming Order Justification Form (available on the Forms page) must be completed. The form must clearly explain why work began without a contract and what will be done in the future to avoid such an occurrence.
- For transactions up to $500, the form must be signed by the department head
- For transactions above $500, the form must be signed by the Dean/Vice Chancellor.
- The completed and signed Confirming Order Justification Form is to be electronically attached to your KFS Purchase Agreement document.
Confirming orders issued to suppliers or reimbursements made to an employee 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.
- Price comparison shows the price to be significantly higher than the University’s price (including pricing on Strategic Sourcing Agreements). In some cases, the amount of reimbursement 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.
- PPM 350-10: Procurement: Equipment and Supplies