Unauthorized or “After the Fact” Procurements

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What is an unauthorized transaction?

Unauthorized or “after the fact” procurements are any unauthorized purchases and/or commitments made by UMD department staff, requiring a purchase order, for which the department lacks the delegated authority to commit the university. These actions  include submitting requisitions after services have been started or rendered, after the materials/equipment have been ordered or received, and/or signing a procurement contract without proper authority.  A key indicator that an action is unauthorized is receipt of an invoice.

Unauthorized transactions put the university at risk and restrict P&BS’ ability to review and negotiate terms and conditions the university cannot agree to.  Unauthorized procurements can jeopardize our access to Federal contract and grant funding.

 

Unauthorized actions are a policy violation.  Repeated instances of unauthorized actions will be escalated to P&BS leadership for follow up to ensure future compliance.  Additional documentation will be required prior to completion of unauthorized procurements. 

  • Processing of unauthorized orders and payments for unauthorized orders will not be expedited and may be delayed until all required documentation is obtained.
  • The campus department is required to provide a detailed written explanation detailing the reasons for failing to follow the policies and procedures of the university and a statement indicating understanding of the university policies and procedures and future compliance.
  • The procurement officer will record and classify the order and vendor choice as “Unauthorized Purchase Order” in the Finance System.