KSC Purchasing Manual
The following is from #VII-A-27.4, Common Policies Section of the University System Policy Manual:
Goods or services personally benefiting faculty or staff.
"Faculty or staff members who would benefit financially from the supplying of goods or services to the University System by any prospective supplier may not participate in the decision process leading to the choice of supplier. Specifically, faculty or staff members who have or who reasonably anticipate having either an ownership interest, or other remunerative relationship with a prospective supplier may not participate in the recommendation of, drafting of specifications for, or the decision to purchase the goods or services involved. Faculty or staff members who know that a member of their family (or any other person with whom they have a personal or financial relationship) has an ownership interest or a significant executive position in a prospective supplier are also disqualified from participating in the purchase of goods or services."
CODE OF ETHICS
1. Give first consideration to the objectives and policies of my institution.
2. Strive to obtain the maximum value for each dollar of expenditure.
3. Decline personal gifts or gratuities.
4. Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit.
5. Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intention misrepresentation.
6. Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product.
7. Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.
8. Make every possible reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier; and/or be willing to submit any major controversies to arbitration or other third party review, insofar as the established policies of my institution permit.
9. Accord a prompt and courteous reception insofar as conditions permit to all who call on legitimate business missions.
10. Cooperate with trade, industrial and professional associates, and with governmental and private agencies for the purpose of promoting and developing sound business methods.
11. Foster fair, ethical and legal trade practices.
12. Counsel and cooperate with NAEB members and promote a spirit of unity and a keen interest in professional growth among them.
National Association of Educational Buyers
ACCOUNT CODE: A six digit (i.e., 711100) code used in conjunction with the FOAPAL number indicating the classification of the goods or services (i.e. supplies, equipment, travel, etc.)
ACKNOWLEDGMENT: Vendor's acceptance of an order.
ARO: After receipt of order.
BID: A quotation to sell goods or services, at a specific price, under specified terms and conditions. All formal bids must go through the Purchasing Office.
BIDDER: Vendor submitting a quotation to sell.
BILL OF LADING: Shipper's form listing number of pieces shipped, weight and freight classification. This should be attached to the receiving report.
BUDGET APPROVAL: Endorsement by the appropriate administrator(s) allocating funds for specific purposes.
BOT: Board of Trustees.
COMPETITIVE QUOTATION: A quotation received from two or more bidders for goods and/or services.
CONFIRMING ORDER: Written purchase order formalizing a previous verbal commitment authorized by a Purchasing Agent.
CONTRACT: Agreement by a vendor to sell goods or services under established conditions and terms for a defined period of time and/or discounts.
DAMAGE/CONCEALED: Goods received that have been damaged prior to shipment or during shipment. Concealed damage is not visible until packing materials have been removed.
DIRECT PAY: Payment Voucher Form.
DOCUMENTATION: Documents necessary to support the request for purchase. Information often required includes: current pricing, justification for selection, technical specifications, FOB point and terms.
FOAPAL: The twelve digit number (i.e., 5U0000 KFBPUR) indicating a specific fund and organization.
FOAPAL TITLE: The title is the name of the account designated.
FOB: Free on Board. The geographic point indicated where title passes from seller to buyer.
FREIGHT CLAIM: Document submitted to a common carrier or vendor for damaged goods or a short shipment.
FREIGHT BILL: Invoice for the transportation charges of goods shipped or received.
GUARANTEE: Manufacturer's or seller's pledge relative to the performance of serviceability of goods or services.
INSPECTION REPORT: Report written by a freight carrier's inspector evaluating the extent and circumstances of damage.
N/30: Payment in full due within 30 days of invoice date.PO: Purchase order. A formal written document sent to a vendor citing the goods or services to be purchased, shipping instructions, terms and conditions of the proposed transaction.
POINT OF DELIVERY: The geographic location that the buyer has specified to receive purchased merchandise.
PP/ADD: Pre-pay and add. Freight charges are prepaid by the shipper and added to the purchaser's invoice for the goods.
PP/ALLOW: Pre-pay and allow. Freight charges are prepaid by the shipper and are not added to the purchaser's invoice for goods.
PREPAYMENT: Procedure whereby a check is forwarded with a copy of the purchase order when vendor requests payment prior to delivery of goods/services.
PRO: Form carriers use to serve the dual purpose of delivery receipt and subsequent billing. Person(s) receiving goods should always verify the count indicated and condition of the shipment.
QUOTATION: A statement by a vendor as to the price, terms and conditions for which specified goods or services will be sold.
RESPONSIBLE QUOTATION: A term used to designate a quotation that meets all the specifications.
REQUISITION: Requisition Input Form. Used to request the purchase of goods and/or services.
SEALED QUOTATION: Formal procedure of receiving and opening competitive quotations at a specified date, time and place.
SHIPPER: A person who consigns goods for transportation.
SHIPPING POINT: The geographic location where merchandise is consigned to a carrier.
SHORT SHIPMENT: Items consigned to a carrier but not delivered.
SITE INSPECTION: A time and place where a vendor can view the conditions under which a service is to be performed.
SPECIFICATION: A detailed and exact statement of 63 particulars describing the goods or services required.
SPO: Standing Purchase Order. A purchase order permitting the buyer to place individual orders or releases to a particular vendor for supplies and/or services for a specified period of time using the same purchase order number.
STANDARDIZATION: Practice of establishing which brand name goods or repair services will be used to the exclusion of all others after studying the long term overall cost effectiveness.
SURPLUS PROPERTY: Item(s) declared of no further use to a department. Requires a procedure of advertising the items for sale within the System, to State Agencies and to the Public.
TERMS: A statement of seller's payment requirements. Included would be cash discounts for prompt payment, if any, and the maximum time allowed for payment.
TITLE: Indicates ownership.
TRACER: Request for information from the vendor or the carrier about an order which has not been received.
UCC: Uniform Commercial Code. Rules generally accepted by all US businesses which establish the guidelines under which they do business with one another.
VENDOR: An individual or business supplying goods and/or services.
WARRANTY: An assurance by the seller of property that the goods or property are as represented and will be as promised.
WAY BILL: A shipping document identifying shipper, date of shipment, carrier, number of parcels, weight, receiver and date received.
2%/10: A seller's terms indicating a 2% discount may be taken on amount invoiced if payment is made within 10 days of invoice date.