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22.1.3. Approvals for Purchases

Approvals for purchases: All purchase requisitions and check requests must be approved by the appropriate index financial manager.

Financial Manager: The department employee who is appointed to operate and maintain a particular index, also known as the account custodian. The financial manager is responsible for all expenditures to that index.

Capital Additions: Items with a unit cost of $5,000.00 or more and a useful life of two or more years; items comprising a system are capitalized upon initial purchase; and items which add value to an equipment item.

Properly approved requisitions are reviewed electronically by Accounting Services or Research Accounting for sufficient fund balance (budget checking). The properly approved and reviewed requisition is then electronically forwarded to Purchasing for further processing.

Requisitions in excess of $5,000 require the approval of the department head/ chair. The department head/chair is responsible for all department purchases and the department will be responsible for obtaining the correct signature(s). Departments must use the correct requisition form (with a revised date of 4-2001 or later) or the web-based requisition form found at http://www.admin.mtu.edu/pur/forms/index.html. It is recommended that departments run a periodic (weekly, monthly) report of purchases $5,000 or more for the department head/chair to review.

All purchase requisitions must be approved by the appropriate financial manager. Only those persons assigned as the financial manager for a particular index are authorized to issue and approve purchase requisitions. Additional approvals are required in certain instances. The approval process is as follows:

• Requests less than $5,000, except for blanket orders — must be approved by the financial manager of the index number shown on the requisition.
• Requests for blanket orders — must be approved by the department head regardless of value.
• Requests for $5,000 or more — must be approved by director/department head/department chair, associate dean or dean.

Requests for capital additions of $25,000 or more, require the following electronic approvals in addition to the above:

• The Accounting and Purchasing Departments may process purchase requisitions for capital additions of less than $25,000 without additional approval.
• Purchase Requisitions for capital additions of $25,000 to $100,000 must have the approval of the chief financial officer/treasurer.
• Purchase Requisitions for capital additions of $100,000 to $500,000 must have the approval of the president.
• Requests for capital additions in excess of $500,000 must first be approved by the chief financial officer/treasurer, then be submitted by the president, upon approval, to the Board of Control for approval. The requestor will be informed of the Board of Control’s decision.

NOTE: Refer to Board of Control policy manual, section 13.11. Policy Regarding Capital Additions for the capital additions policy in its entirety.

NOTE: Processing of requisitions requiring additional approvals may be delayed while additional approvals are being obtained.

Requests for advertisements for vacancy positions, except faculty — must be approved by Human Resources. See section 22.4.2. Advertisements for the entire procedure for purchasing an advertisement.

Requests for advertisements for faculty vacancy positions — must be approved by Affirmative Action. See section 22.4.2. Advertisements for the entire procedure for purchasing an advertisement.

Requests for all services, except recognized establishments — must be approved by Human Resources. See section 22.5.3. Professional Services Contracting for the entire procedure for requesting professional services.

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