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Policy Manual

SECTION VI: Accounting Services

VI.1     Purchasing/Procurement

VI.1.1  Top 10 Employee Responsibilities When Making a Purchase (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)
           

• Comply with all procurement laws, rules, regulations, executive orders, policies and procedures concerning the purchase of goods and services.
• Remember competitive quotes are required for purchases in excess of $1,000, competitive fax or written quotations for purchases in excess of $5,000, and competitive sealed bids for purchases in excess of $25,000.
• Divide no purchase to a smaller purchase under $1,000 to avoid bid requirements or to reduce a purchase to a lesser bid solicitation requirement.
• Receive prior written or verbal approval from the Purchasing Department on all purchases of goods and services in excess of $1,000 unless delegated, in writing, a higher purchasing authority level by the Executive Director of Procurement.
• Submit descriptive, functional or performance specifications for all quotations and competitive bid solicitations that outline the requirements and criteria for determination of low bid award.
• Sign no contract or agreement for the purchase of goods or service that obligate the University.
• Obtain office supply needs through University Stores on Skip Bertman Drive or through the Office of State Purchasing statewide contract with Corporate Express using your procurement card.
• Follow guidelines for special requirements such as advertisements, purchases of food and beverages, memberships, framing, etc.
• Forward Receiving Reports to Accounts Payable in a timely manner verifying quantity and condition of goods or performance of services.
• Refer often to Purchasing Department Home Page located at www.fas.lsu.edu/purchasing/.

VI.1.2  Internal Transaction (excerpted from Sponsored Program Accounting A-Z Index located on the Sponsored Program Accounting Website)

An Internal Transaction (IT) is used to procure goods or services from other University entities. Only departments which are a University approved service center are allowed to charge federally sponsored program accounts via an IT.  When processing cost transfers involving ITs, the cost center policy must be followed if transferring from a non-federal account to a federal or federal pass thru account. Restricted accounts cannot be pre-invoiced. In other words, all services must have been rendered before they can be reimbursed. For more detailed procedures, contact the Office of Accounting Services.

VI.1.3  Direct Charges (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Purchases Not Exceeding $1,000
Purchases of supplies, materials, and services not exceeding $1,000 (when not available from University Resources or University contracts) may be made from off-campus vendors. University employees with the written authorization of their department head may make these purchases from vendors without getting competitive prices from additional sources, provided the price is reasonable. Please note, however, this procedure does not include the following exceptions that must always be requisitioned through the Office of Purchasing, regardless of the dollar amount.

• Advertising
• Catering
• Compressed gases
• Improvements to facilities (new construction, alterations, modifications, remodeling, etc.), inclusive of carpet, draperies, mini-blinds, locks, and locksmith supplies (please refer also to PS-84).
• Items normally available through University Resources, Facility Services, Gasoline Station, Printing, Copier Services, Graphic Services, University Relations, and University Stores.
• Professional, Personal and Consulting Services
• Unusual items (decorative, personal, or any items appearing inconsistent with a department's mission)

Splitting of purchases to stay within the $1,000 limitation is STRICTLY PROHIBITED and subjects the University to a critical audit review. Vendors suggesting or offering to put materials on multiple invoices to avoid the $1,000 limit should be reported to the Office of Purchasing. Departments guilty of "splitting" invoices risk having to pay the invoices with non-University funds and possibly losing their delegated purchasing authority.

If the vendor involved will deliver, or ship, or allow a department to pick up an order of $1,000 or less based on the department's verbal order, then the invoice for that purchase (approved for payment with proper budget codes) may be submitted directly to Accounts Payable for payment.

VI.1.4  Procurement (Requisitions & Purchase Orders) Using PRO System (excerpted from Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

All purchases are to be made in accordance with procedures established pursuant to Louisiana R.S. 39. Small purchases (any procurement not exceeding $25,000) may be made in accordance with procedures prescribed by Small Purchase Procedures Executive Order (reference Louisiana R.S. 39:1596) which may be viewed at the following address: http://www.state.la.us/osp/LegalInfo/docs/30SmallPurchaseOrder.pdf. Procurement requirements shall not be artificially divided so as to constitute a small purchase, as described in this section.  Public works contracts (construction, remodeling, and additions) are to be made in accordance with procedures established pursuant to Louisiana R.S. 38 and must be coordinated through Facility Development or Facility Services and the Office of Purchasing.

Requisitions and Specifications:
In general, a PRO on-line requisition is required for all purchases of supplies, materials, equipment, and services purchased from off-campus vendors when the total cost exceeds $1000.  All full-time faculty and staff are automatically given PROPUBLIC security which allows requisitions, purchase order alterations and receiving reports to be created - no special authorizations are required. PROAUTH security is required to electronically approve requisitions, bid tabulations and purchase order alterations. All requests for PROAUTH security must be submitted to and approved by the Chief Procurement Officer using Form PUR600: PRO Electronic Signature Authorization.

It is important to provide adequate specifications on the requisition form. See: Tips for Preparing Specifications.

Purchasing Requirements within Specified Dollar Range:

• Purchases not Exceeding $1,000
• Purchases Exceeding $1,000 but not Exceeding $5,000
• Purchases Exceeding $5,000 but not Exceeding $25,000
• Purchases Exceeding $25,000

VI.1.5. La Carte Procurement Card (excerpted from Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

The La Carte procurement card is a credit card issued to authorized employees for the purpose of making low dollar purchases. La Carte is
intended to simplify the buying process and improve the cycle time from ordering to payment. Typical examples of items that may qualify for this program include books, subscriptions, computer accessories, materials, and supplies.

The La Carte card is a payment method and departments must evaluate their procurement needs as a whole to make sure La Carte is the appropriate purchasing and payment method. For procurement needs greater than $1,000, competitive pricing is required and the Office of Purchasing is to be contacted. Splitting invoices to stay under the $1,000 per day limit is against the Governor's Executive Order and will require you to use private funds for anything over the initial $1,000 if deemed a split purchase. If in doubt, refer to the Office of Purchasing website, Splitting Purchases under the A-Z listing, or contact the Office of Purchasing.

With the approval of the Department Head and the Associate Vice Chancellor for Accounting and Financial Services, the standard purchasing limit can be increased to $5,000 per transaction. The increased $5,000 spending limit is available for cardholders to make only Non-Competitive Direct Charge purchases as outlined in the Purchasing Memorandum PUR 04-05 (dated Jan 15, 2004). The La Carte card cannot be used for equipment purchases or professional, personal or consulting services at any dollar limit.

For complete details as well as information on how to apply, click here: La Carte Purchasing Card.

VI.1.6  Professional, Personal, and Consulting Services Contracts (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Professional Services:
A profession is a vocation founded upon prolonged and specialized intellectual training that enables a particular service to be rendered. The word "professional" implies professed attainments in special knowledge, as distinguished from mere skill. External contracts for professional services may be negotiated by the end user with a responsible contractor without competitive bidding. For contracts with a total amount of compensation of $50,000 or more, the definition of professional service shall be limited to lawyers, doctors, dentists, psychologists, certified advanced practice nurses, veterinarians, architects, engineers, land surveyors, landscape architects, accountants, actuaries, claims adjusters, and any other profession that may be added by regulations adopted by the Office of Contractual Review of the Division of Administration.

Personal Services:
Personal services include work rendered by individuals that requires use of creative or artistic skills, such as, but not limited to, graphic artists, sculptors, musicians, photographers, and writers, or that requires use of highly technical or unique individual skills or talents, such as, but not limited to, paramedicals, therapists, handwriting analysts, foreign representatives, and expert witnesses for adjudications or other court proceedings. External contracts for personal services may, regardless of the amount of compensation, be negotiated by the end user with a responsible contractor without competitive bidding.

Consulting Services:
Consulting services include work, other than professional or personal services, rendered by either individuals or firms who possess specialized knowledge, experience, and expertise to investigate assigned problems or projects and to provide counsel, review, design, development, analysis, or advise in formulating or implementing programs or services, or improvements in programs and services, including but not limited to such areas as management, personnel, finance, accounting, planning, data processing, and advertising contracts. External contracts for consulting services where the total amount of compensation is less than $50,000 may be negotiated by the end user with a responsible contractor without competitive bidding. Contracts for $50,000 or more must be awarded by Request for Proposals (RFP) pursuant to the requirements of Louisiana R.S.39:1503. Failure to comply shall result in having to re-do the entire process.

However, prior to the commencement date on any contract, the contract shall have been processed and approved by the Office of Purchasing. Contract approval could take up to sixty (60) days, depending on the dollar amount of the contract and the reviews and approvals required from other University offices or from other state agencies.

Under no circumstances should an individual sign an agreement with any proposed contractor.  Guidelines and required contract forms(s) may be reviewed and downloaded from Forms.
           
VI.1.7  Promotional Items and Items Requiring Use of the LSU Logo (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Under specified conditions, University departments may purchase promotional items of no intrinsic value to be distributed without charge in anticipation of generating additional revenues. The following procedures are required.

• All purchasing rules and regulations must be followed.
• Form PUR522: Procurement of Promotional items and items requiring use of the LSU logo regardless of the total cost needs to be submitted to the Purchasing Office prior to any commitment of funds.
• All items bearing or containing the University name or other indicia are subject to provisions of PS-93 titled "Use of University Name and Indicia"
• Purchases less than $1000 may be direct charged or paid using the La Carte Card provided that the Form: PUR522 is submitted and approved before any purchase is made.
• If item is over $1000 then a Purchase Order must be issued and competitive bids received in accordance with the Small Purchase Procedures Executive Order.
• Additional Documentation requirements may include: a copy of department's Uniform policy, clarification/documentation that the purchase is allowed by grant, mission to promote department/University etc.

Below is a listing of approved vendors for obtaining the various promotional items.

Licensee Category	.pdf
Buttons
Cup and Beverage Containers
Gifts & Novelties
Pens & Pencils
Pins
Screen Printers and Embroiders
Stickers

VI.1.8  Participant Stipends

Incentive payment for participants in sponsored projects.  Please contact the Dean’s Office of Sponsored Programs and Accounting for assistance in processing all participant stipends.
     
VI.1.9  Equipment (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Computer Hardware & Hardware Related Purchases:
For data processing hardware purchases >$1,000, the requisition must be forwarded to the Office of Purchasing for review and processing. The requisition should contain the same information as required for competitive bid purposes unless it is for the purchase of State Contract items. The Purchasing Department upon receiving the requisition will process the requisition in accordance with state data processing guidelines.

Laptops:
LSU ITS offers a laptop locator tool, which once installed on a computing device, may be used to track it down should it be lost or stolen. LSU faculty and staff may download this resource free of charge through TigerWare.

Hardware Maintenance and Support Services:
Purchases of data processing hardware maintenance and support services with a value greater $1,000 but less than $50,000 may be purchased non-competitively provided price documentation supporting the purchase price is attached to the requisition. For purchases greater than $50,000, the following procedures will apply:

Purchases of data processing hardware maintenance for mission critical equipment (such as mainframes, mainframe peripherals, enterprise servers, or network backbone components) obtained from the OEM can be non-competitively purchased provided price documentation supporting the purchase price is attached to the requisition. Hardware maintenance not acquired through the OEM must be competitively purchased through either the Invitation to Bid (ITB) or Request for Proposal (RFP) process. The successful vendor must be authorized by OEM to perform warranty service on the specific devices. (Documentation of this authorization is required for our files.)

NOTE: Data processing hardware and associated software, hardware maintenance and support service purchases in excess of $100,000, require processing through the State Central Purchasing Agency Procurement Support Team and review by the Office of Information Technology (OIT). Contact the Purchasing Office for additional information. For software purchases see Computer Software & Software Related Purchases.

Purchasing Procedure for Research Scientific and Laboratory Supplies and Equipment:
Small Purchase Procedures Executive Order, Section 5.A.(26), allows for a non-competitive process for the procurement of “scientific and laboratory supplies and equipment when procured by colleges and universities for laboratory or scientific research not to exceed twenty-five thousand dollars ($25,000) per transaction.” To qualify, purchases are to be from scientific or laboratory supply vendors. Please contact the Office of Purchasing if you are uncertain if a purchase qualifies under this exemption.

LSU Purchasing Memorandum PUR07-05 adopted this Executive Order provision as policy effective April 26, 2007. This means qualifying research supplies and equipment may be requisitioned and purchased based on the receipt of one (1) acceptable Vendor quotation. The procedure, paperwork requirements and process flow for such research purchases up to $25,000 are discussed below. Purchases exceeding $25,000 must be requisitioned by the Department and competitively bid by the Purchasing Office.

Definition of ‘Research-Related:
The University will use our existing cost accounting structure to define qualifying research supplies and equipment under this Executive Order provision. To qualify for the non-competitive status, the 7th and 8th digit of your LSU account number (which identifies function) must be in the range from 10-19 as listed in the LSU Accounting Code Structure. Research services do not qualify and remain subject to State and University competitive bid requirements.

Paperwork Requirements and Process Flow:
The required documents and process flow for research-related purchases greater than $1000 are stated below.

• Department identifies a qualifying need, prepares an on-line requisition and electronically submits to the Office of Purchasing to secure a quote from the department’s designated Vendor.
• The Office of Purchasing secures a written fax quotation from the Vendor and issues the Purchase Order. Departments may choose to secure the quote from the Vendor using the PRO procurement system. Vendor quotation forms often include provisions contrary to state procurement laws, rules and regulations; requiring Purchasing to negotiate acceptable terms and conditions prior to an award. Use of the LSU RFQ form helps to eliminate flaws commonly associated with Vendor quotation forms.

Valid and Acceptable Vendor Quotations:
To avoid procurement delays, Departments should advise Vendors of the following minimal requirements for a valid and acceptable quotation:

• Quotations must be signed.
• Prices must be quoted F.O.B. LSU/Destination; i.e. title does not pass to LSU until receipt and unit prices quoted inclusive of freight. Quotes stating F.O.B. Origin/Shipping Point and/or Freight Collect are not acceptable. If freight is quoted separately and not included in the unit prices, it must be quoted as a definitive or ‘not to exceed’ amount – estimated freight charges to be prepaid and added to the invoice are not acceptable.
• Payment terms must be at least Net 30 days from date of invoice, or from LSU receipt and acceptance, whichever is later. Vendor payment terms requiring advance payments (partial or full), C.O.D., or less than 30 days are not acceptable. Prompt payment discount terms (e.g. 2%/10 Days/Net 30) are acceptable.
• The LSU purchase must be governed by and construed in accordance with the laws of the State of Louisiana. Governing laws of another state are not acceptable.

VI.2     Property Management (excerpted from Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Moveable property is defined as items of a nonexpendable nature costing or being valued at $1,000 or more with a life expectancy of one year or greater. Items meeting the $1,000 original acquisition cost/value threshold shall be tagged with an LSU inventory number and carried on the University’s inventory records. Software is not considered moveable property. However, departments should take steps to establish a record keeping system to track software acquisition in order to prevent abuse and ensure applicable programs are purchased. Each department is responsible for maintaining adequate internal records for property/equipment valued under $1,000 in the event a claim for loss under Risk Management guidelines is required for these items. Copies of appropriate purchase orders and/or direct charge invoices are recommended. Departments are advised to familiarize themselves with requirements of the University’s Office of Risk Management.

Property Custodians:
Each department must designate a suitably knowledgeable employee as Property Custodian. The individual’s name, office, and telephone number is to be forwarded to the Assistant Dean for Finance and Administrative Services. For the College of Education, the Assistant Dean for Finance and Administration serves as the Property Custodian with technical support provided by the Office of Educational Technology Services. Generally, the departmental Property Custodians are responsible for coordinating the annual inventory, updating current inventory information (such as room location changes) to the Equipment Records Inventory System, and acting as the administrative liaison with the College and ETS in completing the College’s and inventory for submission to Property Management.  In addition, Property Custodians assist Property Management staff in the identification and tagging of equipment.

Use of University Property/Equipment:
University property/equipment is to be used only in performances of University duties. It is contrary to University policy to lend University property (Ref. Article 7, Section 14 of Constitution) to individuals or organizations for their personal use. With respect to this policy, particular care is to be exercised regarding use of fleet vehicles. It is contrary to University policy for anyone to remove University property/equipment from the University premises for purposes other than University business. Request to remove equipment from University premises must be approved by the Property Manager is writing (Remote Location/Home Storage Request should be utilized) prior to removal. However, where circumstances justifies, blanket approval may be granted upon written request.

Identification, Marking, and Tagging:
In general, Office of Property Management staff will be responsible for affixing an LSU property tag on equipment after items are delivered to a final location. Departments are required to assist Property Management staff by providing access to equipment and helping with technical identification. A tag will be placed on the front of the equipment near the manufacture’s nameplate or logo or somewhere near the front in a position for easy scanning or sighting. Additional identifying information such as serial or model numbers will be recorded or verified at this time. Because of surface or material conditions, certain equipment may require tag numbers to be attached or written with a permanent marker. If Property Management is unable to obtain access to department equipment, tags will be assigned to the equipment and issued to the Department Heard or Property Custodian along with a copy of the respective purchase order marked to identify and match tag numbers with purchase order item numbers. A Property Management file copy of the purchase order with a list of the LSU tag numbers assigned must be signed for at the time of issue by a department representative. This file copy will be retained as a record for audit purposes. The equipment item and assigned inventory numbers will be added to the department’s inventory records. It shall be the responsibility of the department to affix tags which are assigned in the manner cited above to the proper equipment. After tagging, any additional tagging information, such as serial or model numbers, building, and room location, should be forwarded to the Office of Property Management. Departments are responsible for notifying Property Management of any equipment under their control that does not have an LSU inventory tag if equipment is valued at $1,000 or more.

Utilization of Equipment:
It is the responsibility of each department to provide proper and adequate care, maintenance and security for all equipment under its control in order to maximize useful lifespan and minimize loss from acts of theft. If repairs to property or equipment are required, they should be completed expeditiously in order to maintain the property in good working condition. Every effort should be made to properly utilize equipment. If equipment is no longer of use to a department, it must be transferred in accordance with this policy. If equipment becomes obsolete, it must be disposed of or dismantled for parts as provided in this policy.

Disposition of Equipment:
Property items/equipment, tagged or untagged, may be disposed of, transferred, scrapped, or dismantled for parts only after prior approval has been attained from the State Division of Administration/Louisiana Property Assistance Agency(LPAA) through the University’s Office of Property Management.

Transfer to other University Departments:
The Office of Property Management must be notified in writing of equipment transfers between University departments. It is the responsibility of the department transferring the equipment to obtain a signed receipt from the receiving department using the Equipment Inventory Action Request Form. The new account number and location must be indicated. After completion, the original for must be sent to the Office of Property Management in order for inventory record adjustments to be executed. Copies should be retained by each department. The receiving department is responsible for updating Equipment Record Inventory (ERI) information for equipment transferred to a different building or room.

Transfer to University Surplus Warehouse:
Departments are responsible for obtaining a signed receipt for their records when releasing equipment to the Surplus Property division of the Office of Property Management. A memo listing the equipment or the Equipment Inventory Action Request form may be used for this purpose. Missing/Unaccounted for items will not be credited as surplused without receipt documentation.

Transfer to State Surplus Property Agency:
When departments are willing to transfer their surplus inventory delivery to the Louisiana Property Assistance Agency (LPAA), prior approval must be given through LPAA. An active request must be forwarded to Property Management for prior approval from LPAA. Once approval is given by LPAA, Property Management will inform departments to transfer equipment directly to LPAA Surplus Warehouse. Departments are responsible for obtaining a signed receipt, even if items are delivered by Facility Services, from LPAA Surplus Warehouse. Signed receipts are to be returned to Property Management to have items removed from the ERI records. Failure to provide signed receipt could result in items listed on the suspense category.

Transfer to Other State Agencies:
Prior approval must be given by LPAA to transfer items to other State Agencies. An Action Request must be forwarded to Property Management for prior approval from LPAA. The State Agency, contact person, and telephone number are required on the Action Request. For grant/contract items, approval must be acquired from the Sponsored Program Accounting Office.

Transfer to Non-Louisiana State Institution:
The LSU Property Management Office must be notified in writing if equipment is to be transferred to non-Louisiana State institutions/agencies. It is the responsibility of the department to provide property Management information on the items requested to be transferred. An Equipment Inventory Action Request Form is to be submitted with complete itemized list of all equipment proposed for transfer. It should be noted that the time required processing forms and other necessary paperwork and to obtain approval from all parties concerned can be lengthy. Therefore, plans should be made accordingly and allow for sufficient lead time. Additional information can be found in BOP 4-2 and 4-5.

• For items purchased with State funds, equipment should remain with the department. If the department has no need for the equipment, department head is to contact various disciplines within the University to see if the equipment could be of further use. If there is no need for the equipment within the University community, Property Management will process the necessary form to state LPAA requesting a transfer. The receiving institution is to submit a written request indicating items to be transferred and the dollar amount the institution is willing to pay. Of course, the final decision will be made by State LPAA. Whatever dollar amount is agreed by the receiving institution, the University, and State LPAA, the check will be made to State of Louisiana-Division of Administration. No funds will be received for the rendering department unless a special request is made to use such funds to purchase like items. The request is to be made in advance with appropriate signatures provided by the department head, dean or director, and appropriate Vice Chancellor. The request is to be forwarded to the Office of the Vice Chancellor for Finance and Administrative Services.
• For items purchased with Sponsored Projects funds that have expired, in most cases the equipment ownership is transferred to the University. Therefore, the above scenario is the same when a request is made to transfer equipment to another institution. However, depending on the grant type, 80% of the funds generated will be kept by the University department relinquishing the equipment.
• For items purchased with Sponsored Projects funds whereby the grant is still active, the Granting Agency must provide a written statement to the University indication their approval to transfer equipment to another institution.

Dismantle for Parts:
An action request for permission to dismantle for parts must be sent to Property Management prior to any action being taken. Property Management will forward request to LPAA for approval. If approved, Property Management will submit to department document indicating approval. Dismantling equipment prior to approval will place equipment on suspense.

Scrap:
An action request for scrap approval must be sent to Property Management prior to any action being taken. Property management will forward request to LPAA for approval. If approved, Property Management will submit to the department documentation indicating approval with recommendation to scrap item(s). Departments are responsible for actual scrapping of approved item(s). Scrapping equipment prior to approval will place equipment on suspense.

Stolen/Missing Inventory Property:
If a department determines that an item on their inventory has been stolen from campus, it must be reported to the LSU Police immediately. LSU Police will provide a copy of the Incident Report form to Property Management and the District Attorney’s Office. The department must submit an Equipment Inventory Action Request Form to Property Management at this time. For items stolen from an offsite location, the local law enforcement in that area is to be contacted immediately and a police report obtained. The department must promptly notify Property Management and provide a copy of the police report along with an Equipment Inventory Action Request Form. Property Management will submit this report to LSU Police who will provide a copy to the District Attorney’s Office. In either instance, once Property Management received written notification, copies will be forwarded to the Legislative Auditors.
Theft/loss “…involving computing resources either attached to a LSU operated network or in a functional unit shall be reported immediately to the Network Operation Center (NOC).” Please refer to PS-114 (Security of Computing Resources) for further information. It should be noted equipment suspected of being stolen cannot be routinely removed from departmental inventories and must be placed on a department’s inventory discrepancy list if proper reporting procedures are not followed or if evidence of some forced entry is not documented in the police report.

Trade-In or Sale of Equipment for Credit:
Trade in(for credit) or sale of used or obsolete equipment when purchasing similar replacement items is permitted only under certain circumstances and must be coordinated through the Office of the Director of Purchasing and the Office of Property Management. Prior approval is required from the State Division of Administration/Louisiana Property Assistance Agency before a trade-in or sale can be authorized. A department’s intention to pursue a trade-in sale under this provision must be made known to the Purchasing Office at the time the original requisition is submitted.

Gifts/Donations:
In accordance with State Property Control Regulations, all items of moveable equipment acquired by the University through acts of donation or as gifts become the property of the University, except for items donated specifically to the LSU Foundation, which will remain the property of the Foundation. Gifts and donations must be accompanied by documentation provided by the donor indication fair market value. However, in certain cases further evaluation of a donated item after receipt may cause for the receiving department and/or Office of Property Management to determine a revised value for inventory control purposes. Donated items will be tagged and recorded in the inventory if value is established at $1,000 or more. Departments receiving gifts or donations of moveable equipment that meet inventory requirements must directly notify the Office of Property Management in writing within ten (10) days, and provide the following information using form A5522 (http://www.fas.lsu.edu/spa/forms/as522.pdf): (a) name of donor; (b) item description; (c) model and serial number (if applicable); (d) value; (e) location; and (f) date received.

Department must take all necessary steps to ensure that items of equipment accepted as gifts or donations have some value and will be of use to the University. Furthermore, particular care should be taken to ensure that new and/or unexpected additional costs will not be incurred by the University after receipt of an item to make it operational. This would include costs for repairs or accessories, renovations required for laboratories or buildings in order to properly house the item, and similar expenses. Equipment with no value or potential for use becomes a burden to the University. Because of State mandated procedures and labor costs, acceptance of junk items results in a needless expense to the University.

Annual Physical Inventory of Equipment:
State statutes require an annual inventory of moveable property and/or equipment be taken by each department. The University’s inventory is generally conducted between the months of February and May, inclusive equipment acquired through December 31 of the previous year. The Office of Property Management will notify each department by letter and furnish necessary equipment lists and procedure guidelines for departmental use. Each department is responsible for conducting its own inventory and must be taken in a thorough and diligent manner with proper time allotted and adequate and knowledgeable personnel assigned. Departments with significant amounts of technical, scientific and/or laboratory equipment should make every effort to assign staff capable of identifying equipment. Use of students is often inappropriate and should be closely monitored. Procedures must be in accordance with the guidelines established in the Instructions for Updating the Departmental Inventory List which are included in each inventory packet issued to departments. Departments are strongly advised to keep a photocopy of each year’s inventory for their records and for use as a submittal backup in the event the original is misplaced.

Pursuant to State Property Regulations, all items that departments are unable to locate during an inventory must be carried in a suspense file (discrepancy list) maintained by the Office of Property Management for a minimum period of three years before any action to remove them from the inventory can be initiated, unless authorized otherwise by the Property Manager. Discrepancy lists are subject to detailed audit by the University’s Internal Auditors and by the Legislative Auditor’s Office.

Changes/Updates in University Equipment Records Inventory (ERI)
The Property Manager or authorized staff in the Office of Property Management will execute the approved addition, deletion, transfer, or specific changes in the equipment records of the University. Other updated, such as location changes and comments will be made by the department as soon as changes occur. Departments are encouraged to have the property custodian contact Property Management for training on the ERI system.

VI.3     Payroll
           
The Payroll division processes salary and wage payments for all employees – academic, administrative and professional, classified, students and graduate assistants – and accounts for the salary and wage expenditures by budgetary unit. Payroll administers payroll deductions required by law – federal and state income tax withholding, Medicare and social security taxes and retirement contributions, federal and state tax levies, garnishments and child support – as well as employee-authorized deductions such as health and life insurance premium deductions and supplemental retirement account contributions. Payroll ensures compliance with USCIS regulations, verifying all I-9 documents for graduate assistants and student employees.
Payroll monitors and ensures compliance with income tax treaties between the United States and foreign countries for all nonresident alien employees.
Payroll's Insurance section maintains tax sheltered premium amounts for the LSU Flexible Benefits Plan as well as the records for employee and retiree group insurance coverage and premi­um deductions.
The Disbursements section of Payroll processes all federal and state tax deposits and payroll tax returns, submits retirement contributions and the employer match with monthly reports of earnings to all retirement systems, and processes payment for all other payroll deductions.

VI.4     Personnel Activity Reports (PARs)

The Office of Management and Budget (OMB) Circular A-21 establishes principles for determining costs applicable to Federal grants, contracts, and other agreements with educational institutions. All Federal agencies which sponsor research and development, training and other work at educational institutions must apply the provisions of the Circular in determining the allowability of costs incurred for such work. Consequently, accounting practices of individual colleges and university must 1) support the accumulation of costs as required by the Circular and 2) provide adequate documentation of charges to sponsored agreements. To comply with payroll distribution requirements of OMB Circular A-21, LSU implemented the Personnel Activity Report (PAR) system which documents 100 percent of the activity for which certain employees are compensated. The system provides the documentation necessary to support charges of salaries and wages to sponsored agreements (i.e., grants, contracts, cooperative agreements). The system is also used to document cost sharing of salaries and wages. Failure to complete and certify PAR forms correctly could result in loss of funds to the University.

A Personnel Activity Report (PAR) is a computer-generated document that reflects the workload percent (%) distribution during the reporting period derived from personnel action forms in the Human Resource Management (HRM) System. The Budget Salary Management (BSM) system provides an HRM database from which PARs are generated. The workload % distribution is based on the current personnel action form in effect for that PAR period. The purpose of the PAR system is to confirm after-the-fact the employee’s workload distribution and earnings “that should have been paid” (i.e. based on personnel form in effect at the time the PAR is generated) represents a reasonable apportionment of the employee’s actual workload distribution. The PAR system also documents personnel cost sharing. The PAR accounts for 100% of each employee’s effort.

Graduate assistants, fiscal employees, and academic salary employees working in academic units and centers receive PARs. Also, employees working on sponsored agreements will receive a PAR. Classified employees do not receive a PAR unless working on a sponsored agreement. A manual PAR must be created whenever a classified employee will be used to cost share to a project. PARs are not produced for student and contingent/transient employees because their timesheets are an auditable method of documenting time and effort.

Visit the complete Personnel Activity Report (PARs) User’s Manual located on the Website for the LSU Office of Sponsored Program Accounting.

VI.5     Petty Cash Purchases

Petty cash transactions are governed by FASOP: AS-03 which identifies the following procedures for seeking reimbursement for approved small purchases of $100 or less.

Reimbursement Procedures:

• Receipts for Expenditures

Each disbursement must be substantiated by an original receipt, providing reasonable documentation that the actual purchase was made. The receipt should provide at least the following information:

• Date of purchase.
• Clear description of item purchased.
• Name of vendor.
• Amount paid.
• Signature and printed name of University employee making purchase or accepting delivery.
• Brief description of purpose.

Note: Items listed above must be written on the receipt or otherwise identified if not printed on the vendor-provided receipt.

• Limitations on Use
• The splitting of purchases to stay within the $100 limitation is not permitted.
• Food items related to an official University function may not be purchased from petty cash. Such official functions must be approved on an AS499, “Request for Approval of Special Meal”. Reimbursement for related expenditures should be requested on an AS300, “Travel Expense Reimbursement Request”, and sent to the Accounts Payable & Travel Office for processing. A copy of the approved AS499 should be attached to the AS300.
• No disbursement to cover the following items should be made from petty cash.
• Purchases in excess of $100
• Purchase of items inconsistent with University policy, such as, but not limited to desk sets, decorative items, and internet service for home office
• Any wage or salary payment or earnings advance
• Check cashing.

• Receipts for petty cash expenditures should be processed through the Bursar Operations division for reimbursement on a GLS on-line “PC” entry. Immediate reimbursement for such expenditures will be provided by Bursar Operations during the hours of 10:00 a.m. – 11:45 a.m. and 12:30 p.m. – 4:00 p.m. Individuals requesting petty cash reimbursements must prevent a valid University ID card.

• Post Audit

Accounting Services performs a post audit of all petty cash reimbursements. Any reimbursement for unauthorized or improperly documented purchases will be disallowed, and a refund of such reimbursement will be required.

VI.6     Travel

All University travel is governed by an LSU System Permanent Memorandum, PM-13.  Prior authorization is required in advance of initiating travel arrangements and can be obtained through the use of the Request for Authorization to Travel (AS 292) form. In additional to departmental and college approvals, AS 292 requests for international travel must also be approved in advance by the Office of Academic Affairs.

VI.7     Graphic Services (excerpted with emphasis provided in Purchasing Policies and Procedures A-Z Index located on the Purchasing Website)

Five separate operations make up LSU Graphic Services - Printing Services, Digital Services, Mailing Services, Paw Prints, and Copier Management. You can find the website at Graphic Services. Persons using Graphic Services for printing should also consult PS-10 to determine what, if any, approvals are needed.

Printing Services (578-2800), located on River Road, is capable of meeting almost any printing need of the University from simple one-color leaflets to complex four-color printing of brochures, booklets, flyers, and posters. The largest printing unit at any southeastern university and among the four largest in the country, the facility is linked to campus users through the mainframe computer and over the internet.

Digital Services is a full-service design studio offering experienced designers including student interns from the School of Art and the Manship School of Mass Communication. Another component of Digital Services is digital color output. The 31 ppm high-speed color printer produces color flyers and brochures quickly.

Mailing Services (578-2710), located in the Copy and Mail Center, South Stadium Drive at CEBA Lane, offers first class, international, and bulk mailing services. Package mailing is offered, along with overnight, registered, certified, and special-needs mailing services. Mailing Services is also an authorized UPS Shipping Center.

Paw Prints (Duplicating Services)(578-2017), in the Copy and Mail Center, South Stadium Drive at CEBA Lane, offers quick turn-around pickup and delivery service for faculty, staff, and students' needs, including high speed copying, color copying, engraving, and binding.

Copier Management(578-2003) is responsible for all office copying machines on campus. Copier and printer supplies and copier maintenance are provided by Copier Management; new copiers and billing administration are from Graphic Services. Individual departments may not purchase or lease copier equipment from off-campus vendors. Coin-operated copiers, located throughout the campus, are also serviced and administered by Copier Management.