by Edwin P. Antoniak Jr., Procurement Director

With the hope of improving productivity and eliminating cumbersome procedures that provide little added value, effective Jan. 2, Departmental Orders are being replaced by Direct Vouchers.

For convenience and expediency, non-recurring single purchases of goods or services not exceeding $1,500 (including freight, but not South Carolina sales tax) will be performed directly by individual departments without approval by or assistance of the Procurement Department.

According to the South Carolina Consolidated Procurement Code, small purchases shall be distributed equitably among qualified suppliers. When practical, a quotation will be solicited from other than the previous supplier prior to placing a repeat order.

Under certain circumstances (blanket orders, direct vouchers), purchasing authority may be delegated to departments. When departments exercise such authority, they assume full responsibility for making awards to qualified and responsible low bidders in accordance with university policies and procedures.

The following policies and procedures shall be adhered to when making purchases not exceeding $1,500:

Prohibited Items: Under no circumstances should Direct Vouchers be used for the following types of transactions which must be completed using Purchase Requisitions or other internal documents:

• Any item that has to be tagged ($471.00 unit cost + sales tax) for property management purposes by Physical Assets Management (Account #506XX’s) and computer software (Account #50349).
• Radioactive Materials or Substances—Account #50343.
• Maintenance or Lease Agreements(Contracts)—expenditures for contracts on all equipment owned or leased.
• Employment—An employer/employee relationship is said to exist if an employer has the right to direct and control a worker in the way he or she works, both as to the final results and as to the details of when, where and how the work is to be performed.
• Printing—Expenditures for printing, typesetting, business forms, pamphlets, copying, and other publications—Account #50205.
• Entertainment—Class code 505XX. Recruitment cost, refreshment cost for meetings, seminars and workshops, and special activities can only be used on Direct Vouchers if exempt funds are used and prior approval has been obtained through the Controller’s Office before placing the order.
• Postage.
• Pharmaceuticals—All medical drugs including controlled substances.
• Live Animals—Including fertilized eggs.
• Enhancements to Equipment—Expenditures that increase value/capability and/or extends life of equipment.
• Subscriptions.
• University Stock Inventory—any items available through Central Stores and/or Central Supply.
• Items of a personal nature—Individual professional licenses, gifts for any state employee, (flowers, plaques, etc.), parties for any state employee, caps and gowns for faculty/staff to wear while attending university graduation activities.
• Microwaves, small refrigerators or freezers unless specified “for research oriented purposes” or “patient care.”
• Registration Fees—to attend conferences, workshops or seminars (Account # 50237 and 51501).
• Any “Check with Order” purchase—requires a Purchase Requisition and back-up information, such as an order form, to verify actual price and address (refer to Direct Pay Manual).
• Trade-ins or exchanges of equipment—No item returned for credit against a new or a used or refurbished/rebuilt item.
• Furniture—to include desks, chairs, and file cabinets.
• Automotive Maintenance and/or Repairs—Any parts or repairs to any MUSC/state owned vehicles with the exception of MUSC owned ambulances (MEDUCARE) must go through University Transportation Services.

Allowable Purchases with Restrictions

Information Technology (IT) equipment and software (less than $471.00 + tax) supplies, services, and hardware are allowable on DV’s only if the department calls a Procurement Specialist in the Information Technology area at 792-4521 and obtains approval from that person before the order is placed to insure compliance with the S. C. Procurement Code and Regulations. (This must be done for IT purchases because so many IT items are under contract.) (Examples: diskettes, dictating equipment, terminals, document scanners, word processors, intelligent copier, etc.) The Procurement Specialist’s name and the date the approval was given is to be typed by the DV.

Entertainment—Class code 505XX. Recruitment cost, refreshment cost for meetings, seminars and workshops, andspecial activities can only be used on Direct Vouchers if exempt funds are used and prior approval has been obtained through the Controller’s Office before placing the order. (See entertainment on prohibited items)

Distribution

Vendor Copy: After the vendor copy is signed by an appropriate departmental official (individuals MUST be authorized through a completed Signature Authorization Form), this copy is mailed directly to the desired vendor except when the DV is used to confirm and pay for items already received, in which case the vendor’s copy should not be mailed.

Accounts Payable/ Department Copy This copy should be retained in the departmental suspense file. When goods/services and invoices are received, the original invoice MUST be attached to a copy of the DV and forwarded to purchasing. Purchasing will review documents to assure compliance with these procedures and state law, and if in compliance forward to Accounts Payable for payment. Discrepancies and non compliance will be brought to the attention of the department business manager for resolution.

Invoices/Payment A copy of the invoice should be attached to the department copy of the DV and placed in a department file. This process shall be followed until the DV is complete. Payments will be based on vendors’ invoices sent to the Department.

Departmental Liability Individuals placing orders using the DV purchase method not following the prescribed policies and procedures will be personally liable for payment of costs incurred.

Funds Reconciliation Departments can assure funds are charged appropriately for items received by reviewing their monthly Financial Reports.

Receiving Copies Separate receiving copies will no longer be required from departments who place orders for items costing $1,500 or less using Direct Voucher.

How to Establish Direct Voucher Numbers The DV Order Number will be established by the requestor comprised of the following data: The requestor’s seven digit unit number from their UDAK, last digit of current calendar year, Julian Calendar Date, and two digit daily control number (01-99). DV1032001723201 (e.g. 1032001 (Department of Procurement-Purchasing), 7 (last digit of calendar year), 232 (Aug. 19, 1997), and 01 (first DV issued on 8/19/97).

Direct Voucher Forms Forms can be ordered through University Press in packs of 25 at a cost of $3.50 each, University Press Stock Number UP411212.

Assistance The Procurement Department will assist a department in utilizing the DV. If assistance is needed for instruction on the use and preparation, call the Purchasing Office, Quality Assurance, at 792-4521.