The University has implemented the Small Value Purchase Order Program (SVPO), which is available to selected departments. The SVPO is intended to reduce the amount of staff time committed to both the issuance of small value purchase orders and the associated invoice payment process. Normally, small transactions require little involvement of the Purchasing Department to negotiate or expedite the purchase.
The SVPO is a purchase order and check combined into one form which is completed and authorized at the department level. Designated departments are allowed to issue the SVPO to vendors for certain supplies and materials transactions not in excess of $300. Generally, University departments that have a high volume of small transactions with local vendors are allowed to participate in this program. The Director of Purchasing and the Controller will determine the eligibility of a department to participate.
It must be noted, however, that the SVPO does not replace the University purchasing system. As stated above, the SVPO is intended to reduce staff time involved in the processing of small transactions and to provide specified departments an efficient means of ordering and receiving supplies and materials. Specific program guidelines follow.
The following controls will be applied to all purchases:
The SVSU tax exemption and federal identification number appears on the SVPO document. Please inform vendors that SVSU is exempt from Michigan sales and use tax.
Copies of the Small Value Purchase Order form will be distributed by the account manager in the following order:
Blue copy - originating department retains
White copy - original copy which the vendors will retain for their files
Yellow copy - send to the Purchasing Department
Pink copy - send to Accounts Payable
NOTE: The account manager will transmit daily or weekly in batch the pink copy of the SVPO to Accounts Payable. Accounts Payable will enter the transactions in the management reporting system for posting to accounts. Additionally, for month-end closing, pink copies of the SVPO must be forwarded to Accounts Payable within one business day of month end. The yellow copies of the SVPO must be forwarded to the Purchasing Department no less frequently than weekly. SVPOs can be obtained from the Controller's Office or Purchasing.
Departmental records and documents from the SVPO program are subject to audit or inspection without notice by the University's Controller or an auditor. The departmental account manager will be responsible for security and integrity of the SVPOs. Immediate notification of any lost SVPO forms must be provided to the Controller's Office. Any financial loss accruing to the University resulting from careless security of SVPO forms or other misuse will be assessed to the department. The Controller and the Director of Purchasing will have the authority to disqualify a department from participation in the SVPO program if abuse of the program occurs.
Adopted 02/94 VP-ABA