Purchasing

Policy

FIACCT 04-00_00 Purchasing- Procurement payment procedures in FINET

Effective: July 1, 1994
Revised: September 27, 2023
Reviewed: September 27, 2023

Purpose/objective

  1. Prior to making purchases of goods and services, agencies must follow the Utah Code Annotated (UCA) 63G-6a, Administrative Rule R33, and GovOps Division of Purchasing policies, or contact the GovOps Division of Purchasing assigned agent.
  2. This policy details how to record payments in FINET related to the following procurement types:
    a) Purchases From Other State Agencies – See the purchasing flowchart on the GovOps
    Division of Purchasing website to determine which agencies are mandatory use
    agencies.

    b) Payments That Do Not Require Procurements – See UCA 63G-6a, Administrative Rule R33, and GovOps Division of Purchasing policy PURCH-03.

    c) State Cooperative Contracts – Contracts created by the GovOps Division of Purchasing for use by all Utah public entities (e.g. cities, counties, higher education, public education) and are required to be used by all executive branch agencies, see Utah Procurement Code 63G-6a-2105.

    d) Agency Direct Contracts – Contracts that are not required by statute to be solicited by the GovOps Division of Purchasing.

    e) Agency Purchasing Contracts – Contracts over $10,000 that are solicited and issued by the GovOps Division of Purchasing when a cooperative contract does not exist for the procurement item(s).

    f) Emergency Procurements – See UCA 63G-6a-803 and Administrative Rule R33-8-401.

    g) Limited Purchasing Delegations – Grant specific limited procurement authority from the Chief Procurement Officer (CPO), who is the Director of the GovOps Division of Purchasing, to designees or to any department, agency, or official.

General information

  1. The GovOps Division of Purchasing creates and maintains a library of purchasing forms, which offer additional procurement rules and guidance.
  2. The GovOps Division of Finance Support Center can provide additional information about FINET transactions and processes.
  3. For information on the State’s procurement policies, including bidding requirements and contracting procedures, see the purchasing flowchart on the GovOps Division of Purchasing website.
  4. Exceptions to this policy must be requested in writing and approved by the GovOps Division of Finance Director prior to purchase.

Policy

  1. The FINET Payment Chart below details the required FINET transactions and procedures for making payments in FINET.
  2. All contracts, Memorandums of Understanding (MOU), and Memorandum of Agreements (MOAs) over $10,000 (original and amended) between the state of Utah or a state agency and a vendor (including contracts with other Utah governmental entities) must be recorded in FINET before
    making payments. This policy is not applicable to contracts, MOUs, MOAs, or other agreements between state agencies. Contracts not solicited by the GovOps Division of Purchasing or contracts entered into by agencies should be emailed to the GovOps Division of Finance at [email protected] for entry into FINET. Contracts up to $10,000 are optional.
  3. All contracts created under the Limited Purchasing Delegation (LPD) authority must be recorded
    in FINET before making payments. These contracts should be emailed to the GovOps Division of
    Finance at [email protected] for entry into FINET.
  4. Recording a contract in FINET does not establish an encumbrance in FINET. Encumbrances for contracts are established by the agency creating a delivery order (DO) against the contract. The DO can be for the entire contract amount, for only the amount currently being ordered, or for any other amount (i.e., monthly, quarterly, or annual purchases). The DO can be fully or partially liquidated by payment transactions. Agencies may bypass the DO and make the payment directly
    against the contract using a commodity-based payment request (PRC) referencing the contract. A
    DO can also be used when a purchase order is required by the vendor.
  5. Agencies must report to the GovOps Division of Finance Assistant State Comptroller all rental or
    lease contracts for office space and equipment, subscription-based information technology (software) contracts, and other installment purchases when periodic payments exceed 12 months. If you have questions regarding any of the aforementioned purchase types, please contact [email protected].
  6. This policy does not apply to revenue-generating contracts (such as leases of State office space
    to outside entities). Agencies should consult with the GovOps Division of Purchasing and the
    Division of Facilities and Construction Management for further direction on how to proceed with
    these types of contracts.

References and Links

  1. Utah Procurement Code (UCA 63G-6a)
  2. GovOps Division of Purchasing policies
  3. Purchasing Forms
  4. Finance Support Center
  5. Purchasing Flow Chart
  6. GovOps Division of Purchasing website

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