Purchasing Policy and Procedures

Document Type Policy and Procedures

Administering Entity President, Vice President - Administration, Director –
Finance/Chief Financial Officer, Regional Heads – Finance and
Accounts (Finance Managers) , Heads of Campuses (HoCs),
Course Directors (Deans)
Latest Approval/ April 3, 2024
Amendment Date
Last Approval/ March 30, 2022
Amendment Date
Approval Authority Board of Directors
Indicative time of April 2, 2026
Review

1. Purpose

This policy defines the requirements and procedures for purchasing activities at the S P Jain
School of Global Management (S P Jain / the School).

2. Definition and Scope

a. For the purposes of this document purchasing activities are broken into operating and
capital expenditure items.
b. Operating expenditure include items which are expensed during the same accounting
period and for the purposes of this policy are broken into two subheads:
i. Regular expenses which include but are not limited to: staff salaries; lease rentals;
and annual maintenance contracts.
ii. Other purchase and expenses activities which include financial transactions such
as but not limited to: purchase of fixed assets; non- fixed asset purchases such as
stationary, consumables etc.; promotional and marketing expense; staff business
expense reimbursements; staff business travel etc.
c. Capital expenditure items include purchase of fixed assets or long-term use assets for
example furniture, air conditioners, building improvements and renovations etc.
d. This policy applies to all the campuses of the School referred to as S P Jain Global in the
policy.
e. All amounts stated are in Australian Dollars and equivalent limits in local currencies will
apply to other campuses.

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3. Policy Principles

a. The School is committed to robust financial management of its higher education

operations.
b. The Board of Directors approves S P Jain Global’s annual budget and monitors the financial
position on recommendation of the Finance Committee.
c. All expenditure outlined in this policy is approved within the context of the School’s
approach for financial and budget management.
d. The approach for purchases will be followed by the School’s campuses and by each
department in the campuses.
e. Any purchases over and above the approved budgets will need to be approved by the
Director – Finance/Chief Financial Officer or delegated staff prior to any commitment
towards such expenses.

4. Purchasing Approval & Delegations

a. Operating Expenditure

i. Departments Heads will approve up to $500 of budgeted operating expenditure items

subject to the department’s overall expenditure being within approved yearly
budgets.
ii. Heads of Campuses (HoCs) and Course Directors (Deans) will approve up to $5,000 of
budgeted operating expenditure items subject to the concerned department’s overall
expenditure being within approved yearly budgets.
iii. Select Department Heads designated jointly by Vice President- Administration and
Director – Finance/Chief Financial Officer will approve up to $ 25,000 of budgeted
operating expenditure items subject to the department’s overall expenditure being
within approved yearly budgets
iv. The Director – Finance/Chief Financial Officer/Vice President – Administration will
approve up to $ 50,000 expenditure being within approved yearly budgets.
v. The President will approve above $50,000 of budgeted operating expenditure items
subject to the department’s overall expenditure being within approved yearly
budgets.
vi. All unbudgeted operating expenditure up to $1,000 will be approved by the Finance
Manager (Head of Accounts -Location Specific) based on the need for the expense or
escalated to the Director – Finance /Chief Financial Officer at the Finance Manager’s
discretion.
vii. All unbudgeted operating expenditure above $1,000 and up to $10,000 will be
escalated to the Director – Finance /Chief Financial Officer/Vice President -
Administration for his or her decision.

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 viii. All unbudgeted operating expenditure above $10,000 will be approved by the
President.

b. Capital Expenditure
i. Budgeted capital expenditure per single item up to $5,000 will be approved by Select
Department Heads designated jointly by Vice President- Administration and Director
– Finance/Chief Financial Officer.
ii. Budgeted capital expenditure per single item up to $50,000 will be approved by the
Director – Finance/Chief Financial Officer/Vice President- Administration or his or her
delegate based on the Head of Accounts’(location specific) recommendation.
iii. Budgeted capital expenditure per single item above $50,000 will be approved by the
President or his or her delegate based on the Director – Finance /Chief Financial
Officer’s recommendation.
iv. All unbudgeted capital expenditure up to $10,000 will be approved by the Director –
Finance/Chief Financial Officer/Vice President – Administration based on the
recommendation of the Finance Manager (Head of Accounts - location specific).
v. All unbudgeted capital expenditure above $10,000 will be escalated to the Director –
Finance /Chief Financial Officer for his or her decision and will be approved by the
President based on the Director – Finance /Chief Financial Officer’s recommendations.

c. The table below summarises the above delegations:

Amount Budgeted Approving Authority

(All amounts are stated in
Australian Dollars and its
equivalent in local currency will
apply in other campuses)
Operating Expenditure – Budgeted
Up to $500 or equivalent Yes Relevant Department Head
Up to $ 5,000 or equivalent Yes Relevant Course Director (Dean) or HoC
Up to $25,000 or equivalent Select Designated Department Heads
Up to $50,000 or equivalent Yes Director – Finance /Chief Financial Officer /
Vice President (Administration)
Above $50,000 or equivalent Yes President
Operating Expenditure – Adhoc
Up to $1,000 or equivalent No Finance Manager (Head of Accounts -location
specific)
Up to $10,000 or equivalent No Director – Finance /Chief Financial
Officer/Vice President – Administration
Above $ 10,000 or equivalent No President

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 Amount Budgeted Approving Authority
(All amounts are stated in
Australian Dollars and its
equivalent in local currency will
apply in other campuses)
Employee Payouts
Monthly Salary Yes Regular Salary on approval of Finance
Manager (Head of Accounts-location specific)
and Director – Finance / CFO / Vice President
(Administration)
Bonus or Incentives Yes President /CFO / Vice President -
Administration
Capital Expenditure – Budgeted
Up to $5,000 or equivalent Yes Select Designated Department Heads
Up to $50,000 or equivalent Yes Director – Finance /Chief Financial
Officer/Vice President Administration
Above $50,000 or equivalent Yes President
Capital Expenditure– Adhoc
Up to $10,000 or equivalent No Director – Finance /Chief Financial Officer/
Vice President (Administration)
Above $10,000 or equivalent No President

d. All expenditure outside of pre-approved budgets must follow the below procedure:

i. Before committing to any expenditure, staff members must ensure they have the
required approval in writing. “In writing” includes email approval; approval via a
School policy; a petty cash voucher, quotation or contract signed by a person with
appropriate financial authority; or approved within the thresholds below.
ii. In their interactions with students, staff members must also be cautious not to
commit, either in writing or verbally, any expenditure that has not received
appropriate prior approval.
iii. This process also applies to staff reimbursements. Accordingly, staff members must
ensure they have appropriate approval before undertaking any activity for which they
will later seek reimbursement from the School.
iv. In particular, non-routine infrastructure, repairs, maintenance and other expenses
whether operational or not will
• Need accounts approvals at the proposal stage
• After due approval from Accounts the same will require 3 quotations
• Internal audit will review the quotations check with market and choose the best
option
• This will be then included in the monthly budget
• Purchase orders can then be placed
• Accounts will make the necessary transfer

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e. In addition, the following monthly purchases limits will apply:
i. The Administration Department is authorised to purchase essential stationery each
month up to a maximum value of $1500, after which further approval is required.
ii. The Facilities and Accommodation Department is authorised to purchase essential
items for the repairs and maintenance of campus and accommodation facilities up to
a maximum value of $1500 per transaction, after which further approval is required.
iii. The IT Department is authorised to purchase essential computer and telephone
hardware for staff members, in particular when a new staff member joins. The IT
Department is also authorised to purchase essential items for the repairs and
maintenance for campus, IT and accommodation facilities up to a maximum of AUD
$100 per transaction, after which further approval is required.
iv. The Library is authorised to purchase essential subject resources once the final subject
outline is received. The quantity of any one resource purchased will align to the class
size and is set by the Library Collection Development Plan.
v. All payments made by electronic funds transfer will be submitted by the Finance
Manager and released by the Head – Finance & Accounts, to ensure a dual-approval
process when releasing money from the School’s bank accounts.
vi. All expenses that exceed $5,000, whether capital or operations, must receive
endorsement from the Head – Finance & Accounts and be approved by the
President/Vice President (Administration) or Director – Finance/Chief Financial
Officer.
f. Any unavoidable emergency approvals done in exceptional circumstances when the
authorised staff is not contactable/available will need to be ratified by the approving
authority.

5. Purchasing Procedures

a. Purchase procedures aim to secure services, materials, supplies and equipment from a
responsible and responsive vendor who offers the lowest cost.
b. The Finance Manager will oversee, and coordinate purchasing and will be supported by
accounts/purchasing executives for this purpose.
c. As a general rule, and where applicable, all purchases above $1500 will be made through
a purchase requisition and after obtaining a minimum of two bids.
d. All expenses that are expected to exceed $5,000 must be accompanied by three written
quotations unless it is of the nature of regular purchases.
e. It is understood that there are occasions when more than one quotation is not possible.
Examples include specialised products not available elsewhere and agreements with
preferred suppliers.
i. In these instances, an appropriate justification must be provided, and the Finance
Manager will use his or her discretion for such amounts up to $ 1,000.
ii. For any amounts above $ 1,000 any waiver to the procedures of obtaining two
quotations will be approved by the Director – Finance /Chief Financial Officer or his or
her delegate.
f. Appendix 1 provides detailed purchasing procedures and processes which must be
followed.

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6. Conflict of Interest Declaration

a. Purchasers must not be involved in transactions with any suppliers where a conflict of
interest, real or perceived, may exist. If, in the normal course of a staff member's duties,
he/she is confronted with a purchasing decision where a conflict of interest may exist with
a supplier, the member of staff is to advise his/her supervisor of the conflict and take no
further part in the transaction.
b. Supervisors are to allocate the purchasing decision to another member of staff in such
circumstances. The staff member to whom the conflict relates to is to stand down from
the purchasing decision and take no further part in the transaction.
c. Examples of conflicts of interest include, but are not limited to:
i. A transaction between a staff member and a member of his/her family or close
friend or associate.
ii. A staff member being a director, officer, employee, agent, partner, associate,
trustee or consultant to an entity which enters into a contract or transaction with
the School.
iii. Accepting gifts, entertainment, discounts or other favours from any individual or
entity that is seeking to do business with the School.

7. Policy Compliance and Oversight

a. The purchaser is responsible for ensuring that purchases are supported by the appropriate
documentation, and that this documentation is forwarded to Procurement.
b. Purchase compliance testing and review will occur periodically. Non-compliance with this
policy will be notified to the manager or head of the area
c. The ‘splitting’ of expenses to avoid scrutiny and keep each transaction below a set
threshold breaches this policy.
d. Disciplinary action may be taken against staff members who breach this policy. The
School reserves the right to make salary deductions or not issue reimbursements when
staff members have been found to commit School funds without approval.

Related Documents

a. Delegations Authority Policy and Schedule

b. Financial Management Policy

c. Financial Accounting Procedures Handbook

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Appendix 1: Detailed Purchasing Procedures and Processes

Function Responsibility
Purchaser/Originator Raise Purchase Requisitions
Budget Manager/Approver Approves PRs
Checkers /Accounts Head and
Purchaser/Originator Checks and approves invoices
Account Payable Process payment for approved invoices

1. Purchase Origination
a. Appropriate pre-purchase strategy (e.g. solicitation of written quotes, request for
quotation, request for tender).
b. Step 2: Purchase Requisitions.
c. Step 3: Purchase Orders (including, where relevant, Open Purchase Orders).
d. Step 4: Purchase Approval Gate.
2. Purchase Requisition (PR)
a. Purchase requisitions (PR) must be raised online for all goods and services on a separate
email, except for:
i. Routine utility bills, rent, stationery where there is no increase
ii. Variable photocopier costs ("Click" rates, staples, etc.) where there is no increase
iii. Student refunds and prizes where there is no increase
iv. Bank Drafts and Telegraphic Transfers required in foreign currency where there is
no increase
v. Memberships and subscriptions where there is no increase
vi. Library stock acquisitions where there is no increase

b. Under no circumstances should the School receive goods or services without an approved
PR and an approved Purchase Order (PO) unless specifically exempted as above.
c. The person raising an online PR may not approve the requisition. Similarly, the person
approving a new supplier addition may not also be responsible for setting up the financial
and banking detail. Segregation of duty must be maintained at all time to ensure integrity,
respect and transparency.

3. Purchase Orders (PO)

a. A PR becomes a PO when the appropriate approval is obtained through the workflow
process from a head who has the appropriate financial authority to approve the
requisition.
b. Departmental units are responsible for validating the PO order details against the PO
number quoted on the tax invoice by the supplier.
c. An approved PO must be generated in Precoro prior to the acquisition and delivery of
goods and/or services.
d. POs that are not created in accordance with the requirements of the policy will not be
approved and will be referred back to the originator.
e. Suppliers are required to quote the relevant PO number on all tax invoices.

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f. When POs are raised as part of the awarding of a contract, such POs must not be released
until the contract or relevant written document has been completed and formally
executed in accordance with the School’s Contract requirements.

4. Purchase Approval Gate

a. A Purchase Requisition (PR) becomes a Purchase Order (PO) when the head of department
who has the appropriate financial authority approves the requisition.
b. The Procurement Department then reviews the purchasing process to ensure that all
required steps have been followed, and the PO can be created. An approved PO must be
created prior to the acquisition and delivery of goods and/or services.

5. Payment Terms
a. The payment terms in the Purchasing Terms and Conditions, attached to each PO,
supersede all payment terms specified unless prior approval is obtained from
Procurement or a Contract Agreement following Contract Agreement Policy is signed with
a different payment term.

6. Invoice approval and payment

a. The following process flow is implemented for payment of approved invoices:
i. Suppliers email invoices to Finance Department Head directly and not to the
Originator
ii. Finance scan, validate and forward the invoice to the purchaser/requestor for
approval
iii. Requestor approves or rejects invoice accordingly
b. By approving the invoice, requestor acknowledges that goods or services have been
supplied as per the purchase order, quantities and price are correct, and that the goods
or services provided are of the quality and in the condition specified.
i. The invoice is matched to the purchase order in the Finance system.
ii. The invoice is then forwarded to the Finance Department for payment

c. Wherever Precoro flow is available, we are going to use the automatic workflow of
Precoro and it is advisable to put all approvals in Precoro rather than manual mails.

7. Evaluating Quotations and Tenders

a. Procurement will be performing the evaluation of quotations and tenders and provide the
analysis to the requestor.
b. When evaluating quotations and tenders the following assessment criteria may include
but not limited to:
i. Compliance to the purchasing specifications
ii. Price
iii. Quality
iv. Service delivery timelines
v. Installation and maintenance support services
vi. Experience and reliability of the supplier
vii. Warranty or Guarantee
viii. Third party beneficiary

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 ix. Mitigation of risk to the School and compliance with requirements of the School’s
Risk Management Policy including a risk assessment and consultation where
applicable
x. Compliance with relevant Australian Standards (AS) where applicable or an
acceptable international equivalent
xi. Quotations for routine items will be reviewed yearly
d. An evaluation matrix will be generated for each category of purchase by Procurement
through consultation with the purchaser to ensure all needs from the purchasers are
captured in the evaluation of suitable suppliers. It should be noted that the mandatory
criteria provided in the matrix must be evaluated as part of the evaluation process. The
variable criteria may be tailored to suit the requirements of the individual tender.

8. Purchasing Procedure

a. The preferred methods of purchasing, in order of preference, are corporate credit card,
electronic funds transfer, staff member reimbursement and petty cash. The School
entirely understands that staff members may wish to opt for petty cash as opposed to
reimbursement and no explanation will be sought if this is the staff member’s preference.
b. To receive petty cash, staff members must complete and sign a petty cash voucher and
submit it to the Finance Manager. The Finance Manager will not issue cash unless they
are satisfied that appropriate approvals have been sought.
c. All requests routed through precoro system need to be aligned with the budget.

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