Pre-Approval Required for all Purchases $10,000 and Over. The University has a certain set of procedures in place to properly handle and process payments that are over $10,000. This process typically includes bidding your desired service/good to area vendors in order to find the best price for your student organization. UM's Procurement department has this policy in place for three reasons:
- Protection- Procurement will sign contracts to protect you as an individual, your group, and the University of Michigan
- Stewardship- Students who hold positions within their organization at UM should be expected to know how to navigate policies when they graduate
- Education- As Authorized Signers, students should gain transferable skills on how to properly manage large payments
In the case that you are only able to receive a service/good from one specific company that no other business offers, a sole source form can be filled out and the bidding process will be excluded. The Procurement team will notify you if this is necessary during step 4 listed below.
Before thinking about spending $10,000 and over you must follow these procedures.
- An Authorized Signer should fill out our PDF form with your desired purchase details (do not submit a Purchase Request)
- Email this form to email@example.com with "Payment over $10K- Your Group Name" as the subject line. You will also need to attach an invoice to the email.
- SOAS staff will double check your Signer status and balance, place a hold on your account, then forward on to our Procurement Team
- The Procurement Team will send you a confirmation email, bid out your needed service/good, and provide you with a summary of your options a few business days later
- If a sole source form is needed, the team will direct you to fill this out
- Your group will communicate to our Procurement Team which vendor you would like to do business with
- The Procurement team will notify you when a PO has been created and SOAS will release the hold on your account
- The Procurement team will initiate payment with Accounts Payable and a check will be created in 3-5 business days, or based on the net terms of the invoice
What You Can Expect:
- The whole process will roughly take 3 weeks
- You can direct questions to firstname.lastname@example.org along with the name of your group and your Project/Grant number
- The Procurement team will communicate with you to confirm your request has been received and when a PO has been created.
- SOAS will place a hold on your account in the amount on your invoice