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Although the University is essentially its own manager in purchasing, numerous special instructions are often directed by outside agencies such as the Governor's Office, the Attorney General's Office, the Board of Trustees, WVNET, or the Auditor's Office. Both Purchasing and University departments are required to follow these guidelines.

MAINTENANCE AGREEMENTS
The request for a maintenance agreement for equipment is to be submitted on an electronic requisition when there are terms and conditions present. The make, model, serial number and University tag number for the equipment must be stated. The maintenance agreements and addendum (WV-96) must be signed by the vendor first. Purchasing will sign for the University. Payments for maintenance can be made only after the services have been performed. If stated in the agreement, these payments may be made periodically as maintenance is performed. Dates of service should be kept within the State fiscal year of July 1 through June 30 whenever possible. Also, maintenance agreements which have "terms and conditions" attached must have a WV-96 attached. Use object code 70380 on all maintenance agreements. All other maintenance agreements may be done as an essential service.

CONTRACTS
Purchasing enters into numerous contracts for the departments. These may include rental agreements, service agreements, consulting agreements, open-end contracts, and maintenance agreements. The Attorney General's Office must approve all open-end contracts and all contracts which total over $50,000.

RADIOACTIVE MATERIALS
All requisitions for radioactive materials must be approved by the University Radiation Safety Officer prior to forwarding to Purchasing. Also, all shipments must be received through the Receiving Department in the Sorrell Maintenance Building or the Medical Education Building. NOTE: Telephone orders for radioisotopes are not permitted.

CANCELLING ORDERS
To cancel orders, vendors must be given 30 days written notice. Orders may be cancelled in less time only when the vendor gives cause and breaches the contract or order. Whenever an order must be cancelled, e-mail the appropriate purchasing agent.

REPAIRS TO EQUIPMENT
Repairs to office, scientific, or educational equipment require the issuance of an approved University purchase order. This includes equipment which must be shipped back to the vendor for repair.

When equipment is repaired on-site, the department must prepare a requisition and process it through Purchasing. If the vendor requires a confirming order number before the service call will be made, please advise your buyer. Although the exact charges may not be known, please estimate the charges. List estimated charges as two separate items, one for labor and one for parts. Note: The department is solely responsible for all charges.

Should the equipment require off-site repair, contact the supervisor of the appropriate University Receiving Department. Proper packing of the equipment for shipment is the responsibility of the department. However, the supervisor of the Receiving Department can coordinate all other shipping arrangements. Again, a requisition must be prepared in advance to cover repair and shipping costs. If the exact charges are not known, an estimate is acceptable. Please include the serial number of the equipment, the University tag number, the building and room number, the name of the contact person, and a brief description of the problem. Forward the electronic requisition to Purchasing. Please note that the Receiving Departments will not ship any equipment to a vendor for repair until they receive the vendor's copy of the order signed by a buyer. Departments are responsible for getting the packages to Receiving.

CANCELLING/CHANGING ORDERS
When it is necessary to cancel a purchase order completely or some portion of it, the department may request cancellation via a memorandum or e-mail to Purchasing. Changes to orders may be done similarly. It is essential that the memorandum clearly state what must be changed or cancelled. Please provide a reason for the cancellation or change, and reference the vendor's name, purchase order number, and the Banner fund.

PURCHASE OF LEASED EQUIPMENT
To convert leased or rental equipment to purchase, the State lists these conditions:
    ~ original lease must have been competitively bid
    ~ department must justify economics of conversion
    ~ equipment must have been "in place" for 1 year
    ~ payback must occur in 1 year or less

TRADE-IN OF EQUIPMENT
Trade-in of used equipment may be permitted. However, your intent to trade a piece of equipment must be clearly stated on the requisition. Please provide all necessary descriptive data including the University property tag number. Final approval is vested in the appropriate Supervisor of Central Receiving.

LEASED SPACE
Prior approval from State Purchasing is not needed if the request for temporary space meets the following criteria:

   1.  The space requested is not for use as office space;
   2.  The use of the space is for a period of six months or less;
   3.  The total rental amount is less than $2000 for the event or use during the         fiscal year;
   4.  There is no contract, rental agreement, etc. to be signed;
   5.  The delegated authority to lease temporary space by the spending unit has         not been revoked.

For all other space leases, consult with your buyer.

LETTER OF JUSTIFICATION OR EXPLANATION
A letter of justification is expected from the department whenever they choose not to accept the low bid or a sole source purchase over $1000 is requested. A letter of explanation is expected from the department whenever the department has failed to utilize one of the procurement alternatives, too. If the situation was such that they could have "worked within the system" and did not, they have violated University policy and may be held personally accountable for obligating the University. Only the Vice President for Finance may approve letters of justification for "after-the-fact" purchases.

EMERGENCY PURCHASES
Emergency purchases may be made only when there exists a threat to public health, welfare, or safety such as may arise by reason of floods, epidemics, riots, equipment failures, or to meet bona fide emergencies arising from unforeseen causes, including delays by contractors, delays in transportation, and unanticipated volume of work, provided that such emergency procurements shall be made with such competition as is practicable under the circumstances. A written letter of justification explaining the basis for the emergency and for the selection of the particular contractor must accompany the requisition. Emergency procurement shall be limited to those supplies, equipment, services, or construction items necessary to meet the emergency. Such competition as is practicable shall be obtained.

SHIPPING ADDRESS
Shipments of supplies and equipment shall be made to one of the University's two receiving departments. Order forms attached to requisitions must reflect these addresses, too. Changes in the "ship to" address must be approved by the appropriate Supervisor of Central Receiving.

SELECTING A CONSULTANT OR PROFESSIONAL SERVICE
If over $1000, does the requested professional or technical service lend itself to competitive bidding?

   a.  Yes - submit requisition describing requested service;
                  - 14 day bidding cycle required
                  - appropriate forms prepared by Purchasing

   b.  No - submit BOT-48 to vendor for signature if vendor does not have own
        contract form
                  - upon return of BOT-48, complete requisition
                  - attach letter explaining why service is sole source

   c.  Charge the services to object code 70250.

   d.  Special Note: The contractual services of Marshall University faculty and         staff must be paid through Payroll regardless of the amount.

CARPET ORDERS
Requisitions for carpet against a University or State contract must have attached a quote and floor layout from the vendor.

HOSPITALITY EXPENSE
Retirement receptions, awards, faculty and staff receptions, and working lunches or dinner meetings will not be approved as a legitimate use of State funds when they are solely for the benefit of University employees.

The Request for Hospitality Services and Temporary Space (TMO 3.0) form is required for all hospitality events and should reflect the entire cost of the event to include food and beverage, meeting room rental, and service charges. Also, state the purpose and justification, who will be attending, what is being provided, and the number of participants. Submit the form to Accounts Payable with the general encumbrance "E" number annotated on it.

The TMO 3.0 form can now be downloaded from the forms site..

By the way, please keep in mind that the food service contractor at Marshall cannot accept a catering order without a "P" card or purchase order number. Moreover, the vendor has exclusive catering rights on campus.

Additionally, if the event is estimated to cost $5000 or more the TMO 3.0 form must be submitted to State Purchasing (through University Purchasing) for approval. Please allow 30 days processing time.

Following is the University's hospitality policy in its complete form:

HOSPITALITY POLICY
Expenditures for hospitality are defined as food, non-alcoholic beverages, and related expenses for guests who are not employees of the University.

At Marshall University, it shall be official policy that University state funds may be used for food, beverage, and related expenses only in the following situations:

   1. Meetings, seminars, conferences, etc. where Marshall is the host and the
       primary benefit of the event accrues to the outside participants. In each
       instance, attendance by Marshall employees is only incidental; that is,        those attending from Marshall are acting primarily as hosts or in a limited        capacity as attendees (employees generally should not outnumber guests).

   2. Candidate interviews when the hospitality expenses are not for personal or
       social purposes.

   3. General hospitality for student functions that are primarily for the benefit of        or
       on behalf of the students; such events generally are paid for from student        fee accounts.

   4. Hospitality expenditures required by a grant or contract as part of the overall        purpose of the grant or contract.

Generally, University state funds may not be used for hospitality expenses in the following categories:

   1. Faculty or staff meetings where a meal or doughnuts and coffee would be
       served;

   2. Receptions, departmental open-houses, parties for other than students, and
       other social events;

   3. Going away or retirement events;

   4. Recognition functions where plaques, trophies, or other awards are given to        an employee;

In conclusion, University policy suggests that prudent use of University funds should always be the uppermost consideration.

To comply with current standard Department of Administration requirements, University departments will continue to submit the completed TMO 3.0 Hospitality Request Form to Accounts Payable with each encumbrance.

For answers to questions regarding hospitality expenses, please call your buyer in Purchasing.

AGREEMENT ADDENDUM (WV-96)
Many purchases from vendors are qualified by additional terms and conditions". Often these appear on the back side of quotations, maintenance agreements, and software licenses. In each instance the vendor's terms and conditions must be modified in order to conform to West Virginia law. Modifications are accomplished through the WV-96 Agreement Addendum which can be downloaded from the forms site. Fax copies should not be used.

INDEPENDENT CONTRACTOR OR EMPLOYEE
The Internal Revenue Service (IRS) segregates workers into two categories - employees and independent contractors. Employees have an ongoing relationship with their employer and are paid through the University payroll system. Independent contractors provide particular services to the general public and are paid by the job. Payment to them is made through the University procurement system.

IRS regulations require that independent contractor status be verified. Please follow the guidelines in the ensuing pages and insure that this verification is accomplished prior to any service being performed.

    Determination of Independent Contractor Worksheet
    Independent Contractor Declaration
    The Famous 20 Factors
    International Independent Contractors

SUPPLEMENTAL RECEIVING REPORT REQUIREMENTS
In Support of HB 3034

HB 3034 was signed by the Governor and became effective on June 15, 2002. It required State agencies to include receiving reports with all invoices for commodities that are sent to the Auditor's Office for payment.

Currently, receiving reports are required for all commodities that are not strictly services. The reports may be copies of packing slips, screen prints of Banner receivers, or the special form developed for use with the P-card process. In the future, the reports may also have an electronic format. All must be signed and dated within 24 hours of receipt of the material by the person authorized to receive such commodities.

At Marshall University and its campuses, the following procedures will apply:

   1. To the maximum extent possible, all shipments of commodities will be routed through Central Receiving or the School of Medicine Receiving Department. Vendors may not deliver directly to departments without the approval of the appropriate Receiving Department supervisor.

   2. Reporting requirements for P-card purchases will continue to be a function of        Accounts Payable. Certification of receipt will be accomplished on the form        developed by that office.

   3. Deliveries of "essential services" commodities, which are ordered on "E"        documents through the Banner Finance software, should be made through a        University Receiving Department. Its staff will prepare, sign, and date the        appropriate receiving report and forward it to Accounts Payable for        processing with the invoice. For the purpose of administering HB 3034, all        Receiving Department personnel are officially designated in FIMS to sign        receivers.

   4. Should "essential services" deliveries be made directly to a department, the        person receiving the commodities will sign and date the packing slip, or        reasonable facsimile thereof, and forward it to the appropriate Receiving        Department. If there is no packing slip with the shipment, the department        will use the form developed for that purpose by Accounts Payable. If the        word "invoice" appears anywhere on the packing slip, the department will        block it out prior to sending it to Receiving. Once Receiving gets the        packing slip or form, it will be countersigned, dated, stamped "Receiving        Report," and sent on to Accounts Payable.

   5. Packing slips may also be used to report the receipt of commodities ordered        against University purchase orders. If no packing slip is available, Receiving        may generate a screen print of the Banner electronic receiver. Either form        may be stamped, signed, and sent on to Accounts Payable.

   6. Provisions have also been made designating certain personnel in the        University libraries as authorized receivers. They have been directed to follow        the above procedures also in order to generate the required receivers for        Accounts Payable.

One John Marshall Drive, Old Main 108, Huntington, West Virginia 25755-4100
Ph: 304.696.3157
Fx: 304.696.3333