The Purchasing Procedure establishes the University's requirements for purchasing goods and services.



To detail the requirements for purchasing goods and services.  Covered in this document are:
  • Government   Contracts
  • Quotation   Requirements
  • Contract   Agreements
  • Maintenance   Agreements
  • Licence   Agreements
  • Petrol Cards
  • Delivery and   Acceptance of Goods and Services
  • Legality of   Purchase Orders
  • Credit Cards
  • Petty Cash
  • Purchasing   processes:
    - blanket orders
    - variation to orders
    - renewal of blanket orders
    - cancelling orders


This procedure requires actions by the following:
  • Business Services Section, Office of Financial   Services
  • Contractor
  • Director
  • Executive Dean
  • Head of Department
  • Higher Degree Research Student
  • Purchasing Officer, Budget Units
  • Staff
  • Supervisor

Staff, Higher Degree Research Student or Contractor

Establish a need to   purchase a good or service.

Follow the steps listed   within the Purchasing Checklist to identify the required good and/or service.

University   Preferred Suppliers / Government ContractsEnsure University Preferred Suppliers or Government Contracts are   utilised where appropriate. These can be located in the Procurement Handbook

Quotation   RequirementsIf goods cannot be covered by the University preferred suppliers or Government Contract, it may be necessary to obtain quotes. When requesting written and verbal quotation, it must be ensured that information provided to suppliers is identical and the offers received are evaluated against identical criteria. All amounts are exclusive of GST.

Refer the quotes to the appropriate Purchasing Officer within your budget unit if you do not have the appropriate Delegation of Authority and/or access to Finance One.

Purchasing Officer in Budget Units

Purchasing officers in budget units must make appropriate checks to ensure the following is adhered to:
    • the Purchasing Checklist has been followed before placing any order (this may require a request for source documents from those wishing to purchase goods and or services)
    • the quotation   and tender process has been followed as appropriate.
    • that every   effort to seek information about potential suppliers from all available   sources has been made to ensure effective and sustainable purchasing and   value for money, whilst increasing supplier competitiveness by encouraging   new potential suppliers to enter the field.
    • Under no   circumstances should there be any “splitting of purchase orders” as a means   of avoiding the need to seek a delegate’s approval for a higher level of   expenditure or avoid the need to seek quotations/tenders.

After the above points have been considered the budget unit purchasing   officers are responsible for entering purchase requisitions in Finance One.

The budget unit   Purchasing Officer must attach all necessary quotes. All quotes must be   scanned and attached to the requisition within Finance One to reduce paper   usage. If this is not possible, send or fax (+61 2 9850 1697) all documents   to the Business Services Section, Office of Financial Services.

All tenders must be initiated through the Business Services Section as per the Procurement Handbook which is responsible for providing advice on Tender advertisements and protocol.

Heads of Department, Directors, Executive Deans, Supervisors, Authorised   Delegates

Ensure that fair, ethical and sustainable purchasing practices are   undertaken on behalf of the University. This can be done by ensuring the Purchasing   Checklist has been used.

Always be alert to situations that may have the potential to create a   conflict of interest for purchasing staff (eg where a purchasing officer or a   staff member involved with a quotation or tender has a pecuniary or other   interest in a supplier organisation that is making a bid, (eg some form of   personal relationship). Use the Conflict of Interest Checklist which can be   located in the Procurement Handbook

Ensure all purchases have received approval by an officer with   sufficient Delegation of Authority.

Ensure that only appropriate staff members, HDR students or   contractors are given access to Finance One.

Ensure access is granted for all approving officers to eliminate the   need for hard copy signatures.

Budget Unit Purchasing Officer

Contract Agreements

Advice on Contract Agreements is provided in the Procurement Handbook.

Maintenance Agreements

Individual Budget Units negotiate maintenance agreements with the   supplier. The Budget Unit then uses Finance One to raise a requisition for   the contract. The use of a standing requisition is recommended if the   contract will be on going so that each year the contract/order can be renewed   with the same details.

Licence Agreements

The University may be required to enter into licence agreements when   purchasing computer software or other items. It is especially important,   prior to such purchases being made, that the conditions of such licences are   examined to ensure that the University is not placed in a disadvantageous   position or that conditions do not put unreasonable constraints on the   University or do not contradict the requirements of the Procurement Handbook and   Purchasing Checklist.

The agreement must be referred to the University's General Counsel for an opinion and advice when required by the Contract Management Policy. Before purchasing a licence, the agreement should be examined to ascertain the following:
  • Its adherence to the principles of the Procurement  Handbook
  • The term or duration of the licence
  • The cost of the service and whether it is fixed   or open ended - in general it is desirable to tie cost increases to the CPI
  • What the licence offers, for example, conditions   of usage, access by the licensee, confidentiality of any programs
  • Options for termination and the notice required   for termination by either party
  • Frequency of payments (that is, annually,   quarterly, monthly). As it may be a financial disadvantage for the University   to make a single annual payment for large contract amounts, it may be   necessary to negotiate alternative frequencies of payment.

If the licence   agreement is acceptable, have it approved by an officer with sufficient delegated   authority and send the original agreement to the Business Services Section   for processing of the order.
In approving the licence,   the Budget Unit officer is committing both the Budget Unit and the University   to the conditions stated on the agreement.

A copy of the licence   agreement must be retained within the Budget Unit so it can be referred to in   cases of disputes.

It is the responsibility   of the appropriate officers within a Budget Unit to ensure that both the   supplier and the Budget Unit comply with all terms and conditions of an   agreement or contract.

Petrol Cards
  • Obtaining a petrol card Budget Units that own or   regularly hire vehicles can obtain petrol cards for the use of their staff.   The Head of the Budget Unit is responsible for the use of these cards.
    Normally petrol cards are   organised when a vehicle is purchased. Budget Units can request additional   cards by sending a memo to the Business Services Section.
    When applying for a   petrol card you must supply the following information:
    • Type of fuel   required, for example, unleaded petrol, oil, gas, diesel
    • Account name   and number for payments
    • Budget Unit   name or individual staff member's name.
    Petrol cards must be   collected, and signed for, in person from the Business Services Section.
  • Using petrol cards
    Staff members can use the   petrol card at service stations of the company issuing the card and can only   purchase the fuel approved for that card. When tendering the petrol card, you   are required to give the vehicle registration number and its odometer   reading.
  • Checking your petrol card account
    It is the card user’s   responsibility to verify the petrol card charges each month.
    Fuel is charged at the   supplier's published monthly government price or the bowser price whichever   is lower.
  • Renewals of petrol cards
    When petrol cards are due   for renewal, a memo from the Business Services Section will be sent to the   cardholder.
    Users need to pick up the   new card from the Business Services Section. They will be required to sign   for it and hand in the old card.
  • Cancelling a petrol card
    To cancel a petrol card,   send a memo to Business Services giving details of the card to be cancelled.
  • Lost or theft of a petrol card
    In the case of a card   being lost or stolen, the cardholder must notify Business Services   immediately. If the loss or theft occurs outside business hours, the   cardholder should contact the provider of the card directly and advise   Business Services as soon as possible.

Delivery and acceptance   of goods and services
It is the responsibility of the Budget Unit to check the quality and   quantities of the goods received and report any discrepancies to the Business   Services Section within 48 hours for corrective action. If discrepancies are   not reported, payment of the invoice will proceed within the negotiated   settlement terms.

Legality of Purchase   Orders
University staff must   note that a properly executed purchase order will become a legally binding   document (refer to Appendix B). In some cases the purchase order could become   a key document at law, as it is a written contract agreed between the   University and a supplier.

Staff should also be   aware of the requirements of service level agreements if in existence. The   University terms and conditions of purchase accompany each purchase order   issued. If a supplier unconditionally accepts the University purchase order   then the terms and conditions that accompany the purchase order will formally   govern the transaction.

However, if a supplier   wishes to amend the University terms and conditions, the matter must be   referred, without delay, to the Business Services Section for advice. Only in   exceptional circumstances and with the approval of Business Services, will   the terms and conditions of the supplier be agreed to over those of the   University.

All purchase orders are   issued by the Business Services Section. They are based on purchase   requisitions entered into Finance One (FMIS) by a staff member within the   Budget Unit.

Credit Card
University credit cards   are to be used for University accommodation and other travel related   expenditure. They can also be used for the acquisition of goods/services when   it is not cost effective to raise a purchase order. Examples of such   purchases are conference booking fees, some overseas payments over the   internet, internal catering, small equipment items, etc. Refer to the Credit   Card Policy.

Petty Cash
Petty cash is used for   advances/reimbursements for staff members with a legitimate and urgent need   to be reimbursed or to purchase small goods/services up to the value of   A$100.00 (GST exclusive) where there is no acceptable alternative method of   payment.

The preferred payment options are:
  • A supplier   invoice processed by Accounts Payable
  • Direct payment   by utilising the University’s Business Card
  • Direct   reimbursement of expenses incurred to the claimant’s nominated Bank Account.

It is the responsibility   of the Delegated Officer authorising the payment to ensure that the request   for reimbursement satisfies all the policy requirements. Claims that are   deemed to be for other than University purposes will not be reimbursed.

Non-negotiable limits apply to Petty Cash transactions. They are:
  • No salary or   wage related payments will be accepted.
  • Reimbursements   by the Cashier are restricted to a total of A$100.00 (GST exclusive), per   person per day.

Business Services Section, Office of Financial Services

Business Services can provide assistance to Budget Units of the   University on all matters related to the acquisition of goods/services.

Business Services is the only office authorised to issue official   University orders. After a purchase order is issued, no correspondence is to   be undertaken with suppliers without consultation and approval by the   Business Services Section.

It is the responsibility of the purchasing officer issuing the order to ensure that:
  • All required   procedures, including quotation requirements and sustainable options have   been followed where applicable.
  • The details on the order are accurate.
  • Blanket   orders
    Blanket orders can only   be approved by the Assistant Director, Business Services Section. They are   used for:
    • the regular   supply of specific goods during the calendar year
    • cleaning   contracts
    • maintenance   contracts
    • mail services.
    Blanket orders are closed   at the end of each calendar year.
  • Variations   to Orders
    Variations   to orders must be kept to a minimum. A written request to vary the order,   approved by an authorised officer, must be forwarded to the Business Services   Section for processing.
  • Renewal   of Blanket Orders
    A list of blanket orders   due for renewal must be submitted annually to the Assistant Director,   Business Services Section for revision and approval.
  • Cancelling   orders
    Orders   are binding contracts and can only be cancelled if the supplier cannot   fulfil the contract or by negotiation between the University and the   supplier. When an order is cancelled, funds committed are automatically   returned to the account from which the order was raised.
    Blanket orders can be   cancelled at any time during the year, except those governed by the   conditions of a contract. Those orders can only be cancelled by mutual   agreement with the contractors.
    All requests to cancel a   blanket order must be sent to the Business Services Section, in writing, for   processing.
    Once the order is closed,   any remaining commitment is credited to the original account. No delivery   will be accepted against a cancelled order.
  • Delivery   and Acceptance of goods and services
    For all North Ryde   purchases, the University operates a central store for receipt of goods   ordered. The Central Store is located at 299 Lane Cove Road, North Ryde.
    When goods are delivered   to the Central Store, the Stores receiving staff print a Store Delivery   Advice (SDA) from the order in Finance One. The SDA and the consignment are   delivered to the Budget Unit. If the order is a blanket order, a copy of the   supplier's delivery docket is sent with the SDA. This SDA form provides   details of all items delivered. A Budget Unit officer must sign for receipt   of the goods at the Budget Unit.
    A copy of the   SDA is left with the officer concerned and the original is to be returned to   the Business Services Section with the delivery driver.
  • Petrol   Cards
    Business Services is   responsible for the issue of Petrol Credit Cards to Budget Units and   University staff members. Petrol cards are for use with University-owned   vehicles or vehicles hired or leased by the University for official business.

Procedure Information

Contact OfficerPurchasing and Asset Manager, Office of Financial Services
Date Approved18 October 2013
Approval Authority

Vice-President, Finance and Group Chief Financial Officer

Date of Commencement1 November 2013
Amendment History

9 July 2019 - Amendment to position title: ‘Chief, Financial Officer’ updated to ‘Vice-President, Finance and Group Chief Financial Officer’ with effect from 6 June 2019.

June 2014 – Financial Delegations of Authority Schedule replaced by Delegations of Authority Policy and Wiki
February 2014 – added Procurement Handbook

Date for Next ReviewOctober 2016
Related DocumentsCredit Card Policy
Contract Management Policy
Delegations of Authority Policy / Wiki
Entertainment Policy
Financial Delegations of Authority (Administrative Functions) Policy
Petty Cash Procedure
Procurement Handbook
Purchasing Checklist Appendix A
Purchasing Terms & Conditions Appendix B
Travel Policy
KeywordsGoods, services, purchasing, procurement, purchase orders, blanket orders, petrol cards
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