After the Fact Justification for Unauthorized Purchases
Purchases for goods and services that are made outside of the authority delegated by the Chief Procurement Officer is an unauthorized commitment of University funds and may become the personal responsibility of the person making the unauthorized purchase. A Purchase Order (PO) must be executed before the goods and services are ordered to ensure the UC Terms and Conditions are communited to the Suppliers receiving the order. Reimbursements are limited to low risk transactions and are defined on the Controllers website; Payment Request Form.
The Chief Procurement Officer for Berkeley has delegated purchase authority for Low Value purchases to the campus departments up to a limit of $10,000.00 except for the following order types. All other good and service requests under $10,000.00 are processed by your Regional Team and will require a PO.
- Services that contain UC protected information; health, personal, or credit card payment data
- On-site labor related services of any kind (on-site includes University owned, leased or rented properties)
- Construction/Capital Strategies
- Goods or services from employee or near relatives of any University employee
- Laboratory and other animals - Office of Laboratory Animal Care
- Specialized equipment regardless of cost - Equipment Management
- Restricted items - Environment, Health and Safety site
Any purchase that is made outside of the delegated authority is subject to review and determination of financial responsibility.
Before processing the requisition for this unauthorized purchase, Supply Chain Management requires the following information in the requisition (questions 1-5) or departments can use the ATF justification form:
- A written justification for why the unauthorized procurement action was taken.
- A statement regarding whether or not the price is considered reasonable and the basis for making that determination.
- An explanation of the action taken to preclude any future unauthorized purchases.
- Department to assume all risks for unauthorized transactions related to insurance, wages, data security breach and intellectual property rights.
- The department head is required to sign the justification.
Specifically, BFB-BUS43 UNAUTHORIZED PURCHASES states:
Responsibility – An individual who has not been delegated purchasing authority who makes an unauthorized purchase of goods or services shall be responsible for payment of the charges incurred. The unauthorized individual can be required to pay either the full amount whenever the purchase is found to cover unneeded items or items whose purchase would not otherwise be authorized and the transaction cannot be cannot be canceled, or the amount of any cancellation charges incurred when cancellation can be arranged. Furthermore, the unauthorized individual can be required to pay the difference between the charges such individual incurred and those the University would be reasonably expected to have incurred whenever the purchase is otherwise found to have been proper.