Section 800: Financial Affairs

Effective: July 1, 1995
Revised: January 2020; January 2023
Last Review: January 2023
Next Review: January 2025
Responsible Party: Vice-Chancellor of Administration and Finance

Policy:

To provide economy, consistency and compliance with State Regulations in purchasing, Montana State University-Northern acquisitions will be subject to the following procedures. These procedures specify dollar limits, approvals, and documentation. To avoid delays these procedures must be followed.

Procedures:

Authorization. Advance approval is necessary for all purchases regardless of amount. Levels of approval and documentation vary by dollar value of the purchase and account. Special authorizations are required for the purchase of Information Technology related hardware, software (including cloud hosted software and services), or phone equipment (reference Policy 1322). Payment cannot be made without proper authorization.

Procurement Card. MSU-Northern uses a Purchasing Card program which delegates authority to purchase non-restricted items without a purchase order. Contact Business Services for more information.

Restricted Items. Items available under Term Contract or Requisition Time Schedule must be ordered from specified sources at the time specified by the State Purchasing Division. Contact Business Services for more information.

Purchase Orders. Agency Purchase Orders should be obtained in advance for all charges to MSU-Northern accounts. This excludes the procurement card and restricted items listed above. Personnel not obtaining the purchase order may be personally responsible for paying the vendor. No purchase orders will be issued for items already received.

A "Request to Purchase" form accurately completed must be turned in to Business Services. These requests should be submitted five (5) days in advance for purchase orders under $10,000.00 to allow Business Services time to check funding sources, approvals, clarity of specifications, possible additional vendors, and to prepare the purchase order. Requests not received in advance will be handled as clerical time is available.

Personnel should review available sources to determine which vendor provides the item(s) required at the best value. This vendor should be specified on the "Request to Purchase" along with the item(s) description and price.

Purchases Under $10,000.00. Business Services staff will prepare an Agency Purchase Order for the vendor specified on the Request to Purchase. Personnel will then give the vendor the Agency Purchase Order. The vendor should include this number on the billing invoice. Invoices with no Purchase Order may be delayed in processing. All invoices must be forwarded to Business Services for payment processing. Similar purchases from the same vendor whose cumulative costs are $10,000.00 or greater, must follow the requirements imposed by the procedures for the cumulative dollar limit. Personnel may not split purchases from the same vendor on multiple "Request to Purchase" forms to circumvent dollar limit procedures.

Purchases From $10,000.00 to $25,000.00. Send a "Request to Purchase" and a minimum of three written, online or telephone bids to Business Services. Bids must have the following information completed:

  • Name of Vendor
  • Specifications of item Prices quoted, including any shipping and handling costs..
  • Date

Orders with incomplete information will be returned.

If low bid exceeds $25,000.00, written bids are required. Request to Purchase must be submitted to MSU-Bozeman in these cases.