University of Michigan Procurement Services

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Green Purchasing

Glossary

Forms

Doing Business w/U-M

PROCUREMENT FREQUENTLY ASKED QUESTIONS

Other Frequently Asked Questions
• Accounts Payable FAQs
• P-Card FAQs

CONTRACTS

Who is authorized to sign contracts?

Per the Standard Practice Guide, only Procurement Services has the delegated authority to sign contracts. Departments and their employees are not authorized to sign contracts, regardless of the dollar amount, on behalf of the University. Doing so makes the individual personally liable for all commitments, monetary and otherwise.

Why must the legal department review a contract?

The Office of the General Counsel, as well as the Risk Management Office, assist Procurement Services in assessing whether it is in the University's best interest to enter into a contract by identifying terms and conditions that increase the University's liability.

INVOICE PAYMENTS

I have an invoice and I need to rush payment to a vendor. How can I request special handling of a check?

Arrangements for special handling of a check must be made through the Accounts Payable Office at 734-764-8212. Supplier checks that require special handling may only be picked up at the Payroll Office, G395 Wolverine Tower, 3003 S. State Street.

A University of Michigan employee only may make the request, as well as pick up the check; suppliers are not allowed to pick up checks. Please remember that physical pick up of checks is discouraged as it introduces extra risk of fraud. Physical pick up should only be requested in circumstances that warrant the additional exposure. Checks left at the Payroll Office for over 30 days will be mailed out to the supplier. It is vital that checks be picked up on a timely basis.

I have a purchase order that needs prepayment, what is the procedure?

A P-Card can be used to pre-pay any purchase under $5,000 that does not require Procurement involvement. If you do not have a P-Card, a Non-PO Voucher form may be used, and must be accompanied by a pro-forma invoice, completed registration, or subscription form.

I want to pay for my order by wire transfer - what is the procedure?

The department must completely fill out a wire transfer form, including an original signature and submit it to Accounts Payable. A fee is charged for this service. The Wire Request form is located on the Financial Operations Home Page, http://www.finops.umich.edu/, under "Forms and Reports" on the list to the left. .

PURCHASE ORDERS

Why can't I change the Vendor name on a Purchase Order?

You cannot change the vendor on a Purchase Order after the Purchase Order has been dispatched. You should contact Procurement Services and ask them to cancel the Purchase Order with the wrong vendor name. A new ePro requisition will need to be created with the appropriate vendor.

Who cancels Purchase Orders? Why is Procurement Services the only unit that can cancel Purchase Orders?

The current Business Process and the M-Pathways system only allow Procurement Services to cancel Purchase Orders. If you need to have a Purchase Order cancelled (for example, if the ordered supplies are no longer needed), you should contact the appropriate buyer with the Purchase Order number, reason for cancellation, and your name and phone number. If you do not know the appropriate buyer then contact procurement.services@umich.edu. Note: After a PO has been cancelled it cannot be re-opened.

How do I print an order for a vendor?

Departments do not have the ability to print a Purchase Order for a vendor.

Is an ePro requisition also a Purchase Order, which can be sent to the vendor?

No, it is not a Purchase Order and it cannot be sent to the vendor. An ePro requisition is a request to have a Purchase Order issued.

My PO is in "open" status - that means I can use it right?

No. A Purchase Order cannot be used until all the processes and approvals have been completed and the Purchase Order is in "Dispatched" status.

Why must I have a person's name and telephone number from our department listed on a Requisition that I create?

Providing complete department contact information is helpful to the vendor, as well as Procurement Services and Accounts Payable. Please see the attached "The Deliver Name and Deliver To Fields" document for more information on providing accurate data in these fields.

What does the PO dispatch method of "fax" mean? Does it mean that the department must fax the order to the vendor?

Faxed dispatch indicates that the vendor is set up in M-Pathways to receive their PO's via fax. The department does NOT fax the Purchase Order to the vendor; the M-Pathways system automatically does that.

When I select "fax" as a method of dispatch why does it bounce back to "print"?

If they are not set up as FAX vendors then the system will not allow departments to select the fax dispatch method. The Purchase Order will be printed in Procurement and mailed to the vendor.

ORDERING

I have a Procurement question and simply don't know where to start. Who can I contact?

Email your question to: procurement.services@umich.edu and your question will immediately be broadcast to a team of individuals who will answer your question.

What is M-marketsite and how do I get access?

M-marketsite is the University's online catalog ordering system that allows faculty and staff to login and place orders utilizing ShortCode(s). For more information on M-marketsite and to learn how to get access to it click here

How do I order goods and services for our department?

Click into our "How to Buy" page.

When creating a requisition to send to Procurement, how do I know which buyer in Procurement to direct my requisition? Which buyer should I contact for a particular commodity?

Procurement consists of specialized teams of buyers. To find the buying teams most closely aligned with your requirements. Your request will be forwarded to the appropriate buyer on each of these teams.

Why must requests for orders over $5,000 go out for bids?

The Regents of the University of Michigan established this policy. Goods and services valued over $5,000 must go out for bid to assure a fair and reasonable price in an open and competitive environment. The University Supplier or Contract Program offers offer equipment between $5,000-$25,000 that already have been through the competitive bid process. Click here for further details.

My order was received damaged - what do I do?

Call the vendor immediately. Save the carton, all packing material, freight bill and packing slip, ask for an inspection by the shipper of the goods.

What are the guidelines on what furniture we can order?

There are different standards for furniture, depending on the Building and Department. Contact your Facilities Manager for the standards in your area. Authorized staff members have the option to purchase furniture directly through University Supplier or Contract catalogs on M-marketsite.

Detailed information on furniture suppliers and Interior Design requirements are available on the University Contracts web page.

Can I create my own ePro requisition for temporary help?

Departments in need of temporary staffing should utilize Temporary Staffing Services or one of the Strategic Contracts for temporary Services.

Temporary Staffing Services may be able to provide staffing from within the University at a competitive rate, or may recommend one of the University Supplier or Contracts, depending on the specific need for the open position. When using University Supplier or Contracts departments order direct from the agency using their Short Codes and are billed through their Service Unit Billings.

If you are not able to locate a viable candidate from within the University pool or through a University Supplier or Contract, alternate staffing sources may be considered. Departments considering outside vendors are required to work with Temporary Staffing Services before hiring a temporary employee. Temporary Staffing Services must perform the necessary background checks of applicants and approve the payment rates before you submit a requisition. Temporary Staffing Services approvals are required before Procurement Services can approve a Purchase Order for temporary services.

Does the University of Michigan pay any sales taxes to other states?

Yes, generally if merchandise is purchased in a state other than Michigan and delivered to that state, any sales tax imposed by that state must be paid. For further details see: The Financial Operations Web Site http://www.umich.edu/~finops/index_js.htm

What is the U of M's tax-exempt number?

The University of Michigan has not been issued a tax-exempt number by the State of Michigan; it is exempt by statute (Michigan Public Act No. 167 of 1933, Section 4, as amended). The University's Federal Excise Tax No. is 38-73-0627K.

POLICY

What is the Standard Practice Guide and where can I find a copy of it?

The Standard Practice Guide, or SPG, is a document intended to provide University of Michigan employees with access to the operating policies and practices of the University of Michigan. Normally internal procedures within an office or department are not included in the SPG.

The SPG can be found on the web at http://www.spg.umich.edu.

Why can't we accept gifts from vendors?

SPG Section 507.1, III, N General Practices and Policy states:

"It is contrary to University policy for any employee to accept any gratuities, premiums or other incentives."

Typically, business gifts, services, gratuities, and entertainment are forms of courtesies designed to build and/or enhance teamwork, partnerships, and goodwill between various business entities. Ethical problems arise when these items compromise an individual's ability to make objective and fair business decisions. Unfortunately, even the perception of compromise to an outside observer can be very damaging to the image of a department and inconsistent with the University's overall operating principles. For these reasons, employees should not accept gifts, services or gratuities from vendors or potential vendors.

Why must we have approval from the Regents of the University to do business with employees that run a business outside of the University? What is the procedure?

The State Conflict of Interest Law (Public Act 317 of 1968, as amended by Public Act 81 of 1984) prevents University employees, or enterprises in which they have an interest, from contracting with the University without prior Regental approval. Please note that the approval process is subject to the Schedule of Regents' Meetings and due to the number of steps involved this process may take one to two months. For detailed information see the Conflict of Interest policy. Contact Procurement Services Customer Service at (734) 764-8212 or email at Procurement.services@umich.edu for additional information or assistance.

REQUIRED APPROVALS

Why must I get approval to order radioactive materials?

Radioactive material is subject to Federal Regulation. Radiation Safety Service is responsible for the amount of radioactive material on campus and its handling.

Why must I go through Unit for Laboratory Animal Medicine (ULAM) for approval to order animals?

University policy states that vertebrate animals may be procured only for projects that have been approved by the University Committee on Use and Care of Animals (UCUCA).

When must OSEH be involved with a purchase request?

OSEH is responsible for safety, environmental, and health issues. They review and approve the purchase of any related activity from the purchase of fume hoods and biological safety cabinets to building renovations that could involve materials such as asbestos or lead paint.

It's my money (department) - why all the approvals?

The money is actually awarded to the University of Michigan even though the funds have been allocated to the department. Since these are University funds rules and regulations must be followed and the approval process ensures this happens.

PeoplePay

What is PeoplePay?

PeoplePay is a simple new web tool to help process payments to individuals. It is designed to:

Help quickly determine how to pay a person for services

Explain the correct process or form to submit for the payment request

Provide the correct form(s) to be completed

Why is this change being made?

Using specialized forms based on the types of payments being made enhances our ability to collect information about these types of expenditures and comply with policies and regulations. The PeoplePay web site was developed to guide users to the right form for the situation based on the answers to a few questions about the payment.

When would payments be made to individuals?

There are many instances when payments may need to be made to an individual instead of to a company or organization. Payments to individuals may be made to active employees or to individuals unaffiliated with U-M. Instances in which payments to an individual are made include:

Payment for services provided by a person

Payment of awards to individuals

Royalties paid to authors or others that receive contracted royalty payments

Are payments to employees handled the same as payments to individuals outside the University?

No. Payments to current employees are made through “additional pay” added to their regular paychecks. But, you can always use PeoplePay to be directed to the correct payment method --- a single source for quickly determining the correct type of payment for your circumstances. If the circumstances do not qualify for a payment to an individual, PeoplePay will give you further information.

Can Forms G and G-2 continue to be used for payments to individuals?

No. These forms have been replaced. The PeoplePay web site is designed to make it easy to find the appropriate new form to use and to help ensure compliance with both University policies and IRS rules that determine how the payment should be made.

Who can use PeoplePay?

PeoplePay is available for any U-M faculty or staff member who processes requests for payments to individuals. It is accessed through the University Business section of Wolverine Access.

Is an M-1 Form required for access to PeoplePay?

No. Anyone with a uniqname and UMICH (Kerberos) password can access PeoplePay.

When is PeoplePay available?

PeoplePay is available beginning on Feb. 18, 2008. Access PeoplePay on Wolverine Access under “University Business.”

University of Michigan Procurement Services, 3003 South State Street, Ann Arbor, MI 48109 Phone 734-764-8212
Copyright © 2007 the Regents of the University of Michigan



FAQs Contacts Green Purchasing Glossary Forms Doing Business w/U-M		PROCUREMENT FREQUENTLY ASKED QUESTIONS Other Frequently Asked Questions • Accounts Payable FAQs • P-Card FAQs CONTRACTS Who is authorized to sign contracts? Per the Standard Practice Guide, only Procurement Services has the delegated authority to sign contracts. Departments and their employees are not authorized to sign contracts, regardless of the dollar amount, on behalf of the University. Doing so makes the individual personally liable for all commitments, monetary and otherwise. Why must the legal department review a contract? The Office of the General Counsel, as well as the Risk Management Office, assist Procurement Services in assessing whether it is in the University's best interest to enter into a contract by identifying terms and conditions that increase the University's liability. INVOICE PAYMENTS I have an invoice and I need to rush payment to a vendor. How can I request special handling of a check? Arrangements for special handling of a check must be made through the Accounts Payable Office at 734-764-8212. Supplier checks that require special handling may only be picked up at the Payroll Office, G395 Wolverine Tower, 3003 S. State Street. A University of Michigan employee only may make the request, as well as pick up the check; suppliers are not allowed to pick up checks. Please remember that physical pick up of checks is discouraged as it introduces extra risk of fraud. Physical pick up should only be requested in circumstances that warrant the additional exposure. Checks left at the Payroll Office for over 30 days will be mailed out to the supplier. It is vital that checks be picked up on a timely basis. I have a purchase order that needs prepayment, what is the procedure? A P-Card can be used to pre-pay any purchase under $5,000 that does not require Procurement involvement. If you do not have a P-Card, a Non-PO Voucher form may be used, and must be accompanied by a pro-forma invoice, completed registration, or subscription form. I want to pay for my order by wire transfer - what is the procedure? The department must completely fill out a wire transfer form, including an original signature and submit it to Accounts Payable. A fee is charged for this service. The Wire Request form is located on the Financial Operations Home Page, http://www.finops.umich.edu/, under "Forms and Reports" on the list to the left. . PURCHASE ORDERS Why can't I change the Vendor name on a Purchase Order? You cannot change the vendor on a Purchase Order after the Purchase Order has been dispatched. You should contact Procurement Services and ask them to cancel the Purchase Order with the wrong vendor name. A new ePro requisition will need to be created with the appropriate vendor. Who cancels Purchase Orders? Why is Procurement Services the only unit that can cancel Purchase Orders? The current Business Process and the M-Pathways system only allow Procurement Services to cancel Purchase Orders. If you need to have a Purchase Order cancelled (for example, if the ordered supplies are no longer needed), you should contact the appropriate buyer with the Purchase Order number, reason for cancellation, and your name and phone number. If you do not know the appropriate buyer then contact procurement.services@umich.edu. Note: After a PO has been cancelled it cannot be re-opened. How do I print an order for a vendor? Departments do not have the ability to print a Purchase Order for a vendor. Is an ePro requisition also a Purchase Order, which can be sent to the vendor? No, it is not a Purchase Order and it cannot be sent to the vendor. An ePro requisition is a request to have a Purchase Order issued. My PO is in "open" status - that means I can use it right? No. A Purchase Order cannot be used until all the processes and approvals have been completed and the Purchase Order is in "Dispatched" status. Why must I have a person's name and telephone number from our department listed on a Requisition that I create? Providing complete department contact information is helpful to the vendor, as well as Procurement Services and Accounts Payable. Please see the attached "The Deliver Name and Deliver To Fields" document for more information on providing accurate data in these fields. What does the PO dispatch method of "fax" mean? Does it mean that the department must fax the order to the vendor? Faxed dispatch indicates that the vendor is set up in M-Pathways to receive their PO's via fax. The department does NOT fax the Purchase Order to the vendor; the M-Pathways system automatically does that. When I select "fax" as a method of dispatch why does it bounce back to "print"? If they are not set up as FAX vendors then the system will not allow departments to select the fax dispatch method. The Purchase Order will be printed in Procurement and mailed to the vendor. ORDERING I have a Procurement question and simply don't know where to start. Who can I contact? Email your question to: procurement.services@umich.edu and your question will immediately be broadcast to a team of individuals who will answer your question. What is M-marketsite and how do I get access? M-marketsite is the University's online catalog ordering system that allows faculty and staff to login and place orders utilizing ShortCode(s). For more information on M-marketsite and to learn how to get access to it click here How do I order goods and services for our department? Click into our "How to Buy" page. When creating a requisition to send to Procurement, how do I know which buyer in Procurement to direct my requisition? Which buyer should I contact for a particular commodity? Procurement consists of specialized teams of buyers. To find the buying teams most closely aligned with your requirements. Your request will be forwarded to the appropriate buyer on each of these teams. Why must requests for orders over $5,000 go out for bids? The Regents of the University of Michigan established this policy. Goods and services valued over $5,000 must go out for bid to assure a fair and reasonable price in an open and competitive environment. The University Supplier or Contract Program offers offer equipment between $5,000-$25,000 that already have been through the competitive bid process. Click here for further details. My order was received damaged - what do I do? Call the vendor immediately. Save the carton, all packing material, freight bill and packing slip, ask for an inspection by the shipper of the goods. What are the guidelines on what furniture we can order? There are different standards for furniture, depending on the Building and Department. Contact your Facilities Manager for the standards in your area. Authorized staff members have the option to purchase furniture directly through University Supplier or Contract catalogs on M-marketsite. Detailed information on furniture suppliers and Interior Design requirements are available on the University Contracts web page. Can I create my own ePro requisition for temporary help? Departments in need of temporary staffing should utilize Temporary Staffing Services or one of the Strategic Contracts for temporary Services. Temporary Staffing Services may be able to provide staffing from within the University at a competitive rate, or may recommend one of the University Supplier or Contracts, depending on the specific need for the open position. When using University Supplier or Contracts departments order direct from the agency using their Short Codes and are billed through their Service Unit Billings. If you are not able to locate a viable candidate from within the University pool or through a University Supplier or Contract, alternate staffing sources may be considered. Departments considering outside vendors are required to work with Temporary Staffing Services before hiring a temporary employee. Temporary Staffing Services must perform the necessary background checks of applicants and approve the payment rates before you submit a requisition. Temporary Staffing Services approvals are required before Procurement Services can approve a Purchase Order for temporary services. Does the University of Michigan pay any sales taxes to other states? Yes, generally if merchandise is purchased in a state other than Michigan and delivered to that state, any sales tax imposed by that state must be paid. For further details see: The Financial Operations Web Site http://www.umich.edu/~finops/index_js.htm What is the U of M's tax-exempt number? The University of Michigan has not been issued a tax-exempt number by the State of Michigan; it is exempt by statute (Michigan Public Act No. 167 of 1933, Section 4, as amended). The University's Federal Excise Tax No. is 38-73-0627K. POLICY What is the Standard Practice Guide and where can I find a copy of it? The Standard Practice Guide, or SPG, is a document intended to provide University of Michigan employees with access to the operating policies and practices of the University of Michigan. Normally internal procedures within an office or department are not included in the SPG. The SPG can be found on the web at http://www.spg.umich.edu. Why can't we accept gifts from vendors? SPG Section 507.1, III, N General Practices and Policy states: "It is contrary to University policy for any employee to accept any gratuities, premiums or other incentives." Typically, business gifts, services, gratuities, and entertainment are forms of courtesies designed to build and/or enhance teamwork, partnerships, and goodwill between various business entities. Ethical problems arise when these items compromise an individual's ability to make objective and fair business decisions. Unfortunately, even the perception of compromise to an outside observer can be very damaging to the image of a department and inconsistent with the University's overall operating principles. For these reasons, employees should not accept gifts, services or gratuities from vendors or potential vendors. Why must we have approval from the Regents of the University to do business with employees that run a business outside of the University? What is the procedure? The State Conflict of Interest Law (Public Act 317 of 1968, as amended by Public Act 81 of 1984) prevents University employees, or enterprises in which they have an interest, from contracting with the University without prior Regental approval. Please note that the approval process is subject to the Schedule of Regents' Meetings and due to the number of steps involved this process may take one to two months. For detailed information see the Conflict of Interest policy. Contact Procurement Services Customer Service at (734) 764-8212 or email at Procurement.services@umich.edu for additional information or assistance. REQUIRED APPROVALS Why must I get approval to order radioactive materials? Radioactive material is subject to Federal Regulation. Radiation Safety Service is responsible for the amount of radioactive material on campus and its handling. Why must I go through Unit for Laboratory Animal Medicine (ULAM) for approval to order animals? University policy states that vertebrate animals may be procured only for projects that have been approved by the University Committee on Use and Care of Animals (UCUCA). When must OSEH be involved with a purchase request? OSEH is responsible for safety, environmental, and health issues. They review and approve the purchase of any related activity from the purchase of fume hoods and biological safety cabinets to building renovations that could involve materials such as asbestos or lead paint. It's my money (department) - why all the approvals? The money is actually awarded to the University of Michigan even though the funds have been allocated to the department. Since these are University funds rules and regulations must be followed and the approval process ensures this happens. PeoplePay What is PeoplePay? PeoplePay is a simple new web tool to help process payments to individuals. It is designed to: Help quickly determine how to pay a person for services Explain the correct process or form to submit for the payment request Provide the correct form(s) to be completed Why is this change being made? Using specialized forms based on the types of payments being made enhances our ability to collect information about these types of expenditures and comply with policies and regulations. The PeoplePay web site was developed to guide users to the right form for the situation based on the answers to a few questions about the payment. When would payments be made to individuals? There are many instances when payments may need to be made to an individual instead of to a company or organization. Payments to individuals may be made to active employees or to individuals unaffiliated with U-M. Instances in which payments to an individual are made include: Payment for services provided by a person Payment of awards to individuals Royalties paid to authors or others that receive contracted royalty payments Are payments to employees handled the same as payments to individuals outside the University? No. Payments to current employees are made through “additional pay” added to their regular paychecks. But, you can always use PeoplePay to be directed to the correct payment method --- a single source for quickly determining the correct type of payment for your circumstances. If the circumstances do not qualify for a payment to an individual, PeoplePay will give you further information. Can Forms G and G-2 continue to be used for payments to individuals? No. These forms have been replaced. The PeoplePay web site is designed to make it easy to find the appropriate new form to use and to help ensure compliance with both University policies and IRS rules that determine how the payment should be made. Who can use PeoplePay? PeoplePay is available for any U-M faculty or staff member who processes requests for payments to individuals. It is accessed through the University Business section of Wolverine Access. Is an M-1 Form required for access to PeoplePay? No. Anyone with a uniqname and UMICH (Kerberos) password can access PeoplePay. When is PeoplePay available? PeoplePay is available beginning on Feb. 18, 2008. Access PeoplePay on Wolverine Access under “University Business.”
		University of Michigan Procurement Services, 3003 South State Street, Ann Arbor, MI 48109 Phone 734-764-8212 Copyright © 2007 the Regents of the University of Michigan