Purchasing and Accounts Payable
The Research Foundation must ensure that all expenditures comply with sponsor, Research Foundation and University guidelines. In addition, in accordance with federal requirements all expenditures must be reasonable, allowable and allocable to the sponsored project. The Research Foundation purchasing operation at Binghamton is primarily decentralized. This means the authorization to purchase has been delegated to the project level. The roles of our purchasing and accounts payable staff are to assist project staff with the purchase of necessary project items and equipment at the best price possible; establish quality relationships with suppliers that will meet project needs; and get goods, products and services to project staff as quickly as possible. We also ensure funds are available to support the purchases. We work closely with the state purchasing office when state funds are being used to support sponsored project purchases.
We also monitor payments to suppliers and support the concept of prompt payment. The purchasing and accounts payable department in Sponsored Funds will work with you to resolve any delays of receipt of materials or payment problems.
Policies and Procedures
Purchasing Threshold
When Bids and Formal Proposals are Required
Bids or formal proposals are required based on the estimated total dollar amount of the purchase requisition. The following table shows the requirements for the solicitation of bids and proposals:
| If the total requisition amount is... | Then the project director or appropriate operating location office must obtain... |
|---|---|
| $.01 to $19,999.99 | no bids or proposals required. Discretionary purchasing without formal competition, but should have justification for the selection and reasonableness of price over $10,000.00. |
| $20,000 to $49,999.99 | a minimum of three written or verbal bids or proposals.
Note: If the purchase is for fabrications, construction or other custom purchases, refer to the following block, "Sealed Bids or Proposals." |
| over $50,000.00 | a minimum of three written bids or proposals.
Note: If the purchase is for fabrications, construction or other custom purchases, refer to the following block, "Sealed Bids or Proposals." |
Sealed Bids or Proposals:
Process
The sealed bid or proposal process includes the following steps:
- preparing and distributing the solicitation,
- receiving the bids or proposals,
- opening and evaluating the bids or proposals in a meeting, and
- selecting a supplier.
Single and sole source justification
A single source procurement is a purchase from a supplier chosen without soliciting the minimum number of bids or proposals, despite the fact that competition exists, because of extenuating circumstances (e.g., integration with current system is essential or changing equipment will have an adverse effect on research, emergency situation).
A sole source procurement is a purchase from the only available supplier for the product or service. Therefore, no bids or proposals are required. Note: Since "single" and "sole" source procurements are often difficult to document, it is important to contact the purchasing department in Sponsored Funds for assistance before making any commitment to a supplier. The following form must be used for single/sole source purchase: Single_sole source documentation.
Confirming phone orders
Principal investigator and or delegate have the ability to obtain confirming purchase order numbers to project personnel thru electronic purchase order (EPO). This process expedites purchasing of necessary supplies and/or services. You can provide a phone number to the supplier. We will proceed to pay suppleir within 10 days of receipt of invocie unless we hear from PI or staff to not make payment to supplier.
Invoices and payment authorization
After an order has been placed with a supplier, the original invoice is mailed to Sponsored Funds. If the original invoice is received by project personnel, forward it to Sponsored Funds. We will make payment to the supplier with original invoice unless special circumstances are noted on the copy of the invoice. It is important that we pay our suppliers on a timely basis. Forward to Sponsored Funds the receiving copy of the Purchase Order with an “OK to pay” note as soon as your supplies or services have been received.
Confirming orders, payment vouchers and reimbursements
If project personnel have already purchased items that are used for the conduct of a sponsored project and require reimbursement, a Research Foundation Purchase Requisition/Payment Voucher is completed. Attach all original paperwork pertaining to the reimbursement request. If there are any special circumstances involved, please note on the reimbursement request.
Reimbursement/payment for meal meeting expenses
This type of expense is generally not allowed on federal awards. However, is allowable on infrastructure/incentive awards. We require the original receipt, note as to purpose of meeting, why the meeting was held at that time and those in attendance.
Engaging Independent Contractors
To engage an independent contractor, the following actions are required:
Classification form is used to determine status of independent contractor and to verify individual is not an employee. The form Classification as Independent Contractor or Employee for Technical or Professional Services is completed. The form asks what is commonly referred to "Twenty Factors of the Common Law Test." The form and assistance are available from Sponsored Funds. If the classification determines the individual is an employee, then payment must be processed through the Research Foundation payroll system. If the classification determines the person providing the services is an independent contractor, payment is processed through the accounts payable process. The process for payment through the payroll system is addressed in the Personnel and Payroll section.
Determine the person's citizenship status for tax purposes. Two separate tax schedules are used dependent upon the independent contractor's citizenship. Non-U.S. citizen payments require pre-withholding of federal taxes. The contractor will be notified of status. If the payment to the contractor is between $600 and $2,499.99, then a technical services agreement is provided to the contractor. If payment is over $2,500, a formal technical services agreement is processed and must be signed by the contractor before payment. The contractor is provided a copy of the appropriate agreement. Once the independent contractor forms are completed and services provided, payment is made upon submission of an invoice. Payments to independent contractors are considered miscellaneous income and a Social Security number or Employee Identification number is required from each contractor. For payments greater than $600, the Research Foundation will issue IRS Form 1099 Miscellaneous Income to the contractor.
Note: Payment to non-U.S. citizens can be complicated and there are specific tax issues that require careful attention. Before any commitment of payment to a non-U.S. citizen, contact Sponsored Funds to ensure payment can be made and that required documents are completed.
Human subject payments
The Research Foundation makes payments to persons who participate in sponsored projects as human subjects. Payments to human subjects are considered non-employee compensation and are subject to Internal Revenue Service requirements for miscellaneous income reporting (1099 reporting). All financial details of the human subject are kept in strictest confidence and do not breach human subject confidentiality requirements. We can issue payment to the individual or issue a bulk payment to project staff. The project staff then accounts for the disbursement of funds and reconciles documentation with Sponsored Funds. For special arrangements with payments to human subjects contact the Assistant Director for Purchasing
Honorarium payments
An honorarium, and in some circumstances, reimbursement of expenses is often paid to a lecturer or speaker when the presentation is not extensive or the lecturer does not ask for compensation. SUNY policy does permit the payment of honoraria but limits to $100.00 per day plus expenses.
Advance accounts
The campus has an Advance Account to fund rush or emergency orders. This includes, but is not limited to, travel, registration, salary and prepaid orders. Advances should be used on an exception basis. Please note on the purchase requisition/payment voucherif rush processing is required, or call X6752 to discuss. We will advise you of the best way to expedite the order.
Wire transfers
We have the ability to wire transfer funds to most national and international locations. A notation needs to be made on the purchase requisition if a wire transfer is required. In some cases the wire transfer will not be any faster than first class or air mail. There is a fee for processing wire transfers. The bank name, address, account number, the name of the account, and routing number are required to accommodate wire transfers.
Non-Resident Alien payments
Payments to non U.S. citizens can be very complicated. Generally payments to nonresident aliens take approximately two weeks. In certain cases we cannot make payments for honorarium or travel costs. Please consult with the Sponsored Funds staff before engaging nonresident aliens. The following provides general guidance with the process for making payments to nonresident aliens:
-The Form "Request for Alien Information"is completed.
-Form "W-8 Certificate of Foreign Status" is completed by all non-resident aliens. All non-resident aliens must have an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN) before payment can be made.
-Based on the information received it is determined if the payment is taxable or exempt from taxation. If the individual is from a country that has a US Tax Treaty http://www.irs.gov/ind_info/treaties.html, Form "8233 Exemption from Withholding from Compensation" is completed. Upon submission of the Form 8233 to the IRS we will release payment to the non-resident alien after a mandated 10 day waiting period. If the United States and the non-resident alien's country do not have a tax treaty, all payments are subject to a 30% pre-withholding tax. Either the payment is taxed and the resulting payment to the non-resident alien decreased or the payment can be increased to cover the tax. In some cases payments to travel agencies are also taxable. Since each payment can be unique it is important to consult with Sponsored Funds prior to engagement of a non-resident alien.
The Visa Waiver Program (VWP) enables citizens of participating countries to travel to the U.S. for tourism or business for 90 days or less without obtaining a U.S. visa. To see entire text click this link: http://travel.state.gov/vwp.html
Tax exemption status
As a 501(c)3 non-profit corporation, the Research Foundation is exempt from sales tax on goods and services purchased or obtained within New York State. Tax exempt forms are available for Research Foundation purchases or payments. Most businesses in New York accept the tax exempt form. If the tax exemption is NOT waived by the supplier/business, then provide a notation on the reimbursement request and consideration of reimbursement for the tax will be made by Sponsored Funds. Many businesses outside of New York state do not accept the tax exemption waiver. The Research Foundation DOES reimburse for out of state taxes paid.
Endorsement on contractual documents
The campus has identified persons authorized to sign on behalf of the Research Foundation. It is imperative that if you are forwarded any type of document for an authorized signature, this could be maintenance, lease, rental and software agreements, changes to project terms and conditions, etc that you not sign but forward to Sponsored Funds for review and endorsement. An authorized signatory on the document provides you with the administrative and legal protection under the corporation. Please contact the Associate Vice Provost for Research Administration in Sponsored Funds if there are questions.
Direct Deposit of reimbursements and travel advances
We have the ability to make direct deposit reimbursements to you. Please complete this form and hand deliver to Donna Starr in Sponsored Funds. We will then set-up and or update the Oracle supplier record to make direct deposit to your selected bank or credit union account. After we make the payment you will receive an email notification of the payment so you know that payment has been deposited into your account.
