370.3 Ethical and Proper Spending Practices

370.3 Ethical and Proper Spending Practices

A. Background

The University has a purchasing policy in place that delegates purchasing responsibilities to a number of people located throughout the campus. These individuals are responsible for exercising sound purchasing practices when performing these duties.

B. Policy

Individuals with purchasing responsibilities are expected to exercise prudence in the way funds are expended, thereby assuring maximum utilization of the budget dollar. They are responsible for complying with university purchasing policies and for following ethical and proper spending practices.

C. Guidelines

1. The Purchasing Department is available for assistance to delegated purchasers, and questions relating to propriety can be referred to this department. Assistance is also available regarding product specifications and bid processes.

2. Delegated purchasers are responsible for placing purchase orders in a manner that precludes the suspicion of unethical purchasing practices. They are agents of the University and must always be aware that they represent the institution. They must be mindful of conditions and situations that could raise suspicions of vendor favoritism, self-dealing, and other unethical purchasing practices.

3. Purchasing transactions that may raise questions regarding propriety and ethics should be accompanied by documentation that recognizes these conditions and includes justification as to why it is beneficial for the University to enter into such transaction.

4. Expenditures involving travel and entertainment must be approved by at least one person who is listed above the traveler in the reporting chain. (See File 388.4.)

5. Purchasing activities should adhere to the following guidelines that are based on the Code of Ethics of the National Association of Educational Buyers:

• Give first consideration to the objectives and policies of Furman University.
• Strive to obtain the maximum value for each dollar of expenditure.
• Decline offers of personal gifts or gratuities by suppliers.
• Grant all competitive suppliers equal consideration insofar as state or federal statutes and institutional policy permit.
• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.
• Demand honesty in sales representation whether offered through verbal or written statements, advertisement, or a sample of the product.
• Receive consent of originator of proprietary ideas and designs before using them for competitive purchasing purposes.
• Make every reasonable effort to negotiate an equitable and mutually agreeable settlement of any controversy with a supplier, and/or be willing to submit major controversies to arbitration or to third party review, insofar as University policies permit.
• Except for university-wide programs, budgets are not ordinarily provided for regular holiday celebrations such as Christmas, Thanksgiving, Valentine's Day, and Secretaries Day.
• Accord a prompt and courteous reception for all who call on legitimate business missions.
• Foster fair, ethical and legal practices.

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