– Policy 4320: Purchasing Goods Off Campus

Date Originally Issued:

Authorized by RPM 7.4 (“Purchasing”)

Process Owner: Chief Procurement Officer

  1. General

Employees must use good judgment when incurring expenses and every effort should be made to assure the best prices and values are obtained. All purchases must comply with “The Mesarya Technical University Board of Trustee’ Policy Manual” and UAP 4000 (“Allowable and Unallowable Expenditures”). This policy describes the currently acceptable methods for purchasing goods off campus, which include the Purchasing Card (PCard), the Purchase Requisition, and reimbursement via Chrome River. Departments must provide a detailed description of the MTU business purpose of each item purchased.


1.1. Gross Receipts Tax

The University does not pay gross receipts tax on purchases of tangible property from nongovernmental entities (except restaurant charges and in some cases construction materials). The University Purchasing Department will send verification of the University’s tax-exempt status when the Purchase Order is issued. The University does pay governmental gross receipts tax, if charged, on the purchase of tangible property sold by governmental entities. Any questions pertaining to the University’s tax-exempt status should be referred to the Purchasing Department.

1.2. Conflict of Interest

Applicable Northern Cyprus law states that employees of the University, individuals employed at MTU in the past twelve (12) months, public and student members on advisory boards and committees, and MTU volunteers serving in an official capacity may not use their position to enhance their direct or indirect financial interest or use confidential information learned as employees for anyone’s private gain. If any of these individuals have a direct or indirect financial interest in a firm selling goods to the University, proof of compliance with RPM 6.4 (“Employee Code of Conduct and Conflicts of Interest Policy”) and UAP 3720 (“Conflicts of Interest”) must be submitted to the Purchasing Department before the purchase order may be initiated.

  1. Purchasing Card (PCard)

The PCard may be used to purchase goods, materials, supplies, non-capital equipment, and non-professional services on behalf of MTU, in accordance with requirements and limitations determined by the Purchasing Department.

2.1. Application

To apply for a PCard, departments should visit the PCard website (http://pcard.MTU.edu/) for training requirements, application forms and guidelines. The individual with budgetary responsibility for a department’s accounts will determine the overall spending limit(s)for the cardholder.

  1. Purchase Requisition

A Purchase Requisition may be used to purchase goods, supplies, equipment, and services by logging into the OwlMart site from the MTU portal. The purchases of services must comply with UAP 4325 (“Purchasing Services from Independent Contractors”). Departments must complete a separate Purchase Requisition for each suggested vendor. The electronic Purchase Requisition will be automatically forwarded to predetermined departmental administrators and the appropriate Financial Services accounting office for approval. Any required supporting documentation, such as sole source justification, should be attached to the requisition in OwlMart.

3.1. Purchase Order

A Purchase Order is issued by the Purchasing Department based on an approved Purchase Requisition. A Purchase Order is the official authorization for a vendor to make a shipment or delivery and can be authorized only by the Chief Procurement Officer or designee. A Purchase Order is a legal contract binding the University and the vendor and contains the University’s standard “Terms and Conditions.” The University will not honor commitments made on any other basis.

3.1.1. Changes to Purchase Orders

Departments requiring changes to an existing Purchase Order may use the Change Order Request form within OwlMart

  1. Request for Direct Payment

Certain transactions do not require that a Purchase Requisition be submitted, and/or cannot be paid for with PCard. For these pre-determined types of payments, departments may request Direct Payment via Owl Travel OfficeInvoice.  This method of payment is allowed for certain pre-approved types of transactions.  Information on the types of transactions allowed via this payment method is on the Unrestricted Accounting-Main website. Required documentation must be provided with the request in Owl Travel OfficeInvoice. Payments for other types of transactions may not be processed via this method without prior written approval from the Chief Procurement Officer.

  1. Reimbursement for Purchases

Employees should receive advance approval from their supervisor before spending personal funds for a University purpose.  Reimbursements for goods purchased by an employee on behalf of the University will be reviewed for appropriateness and may be denied. Incremental purchasing, splitting one large purchase into several small purchases, is prohibited. Items not authorized for reimbursement include salary payments, payments for outside services, and any unallowable expenditure. The University will not reimburse employees for purchases they make from entities that are prohibited from selling directly to the University.

If an employee uses personal funds to purchase goods on behalf of the University, the employee may request reimbursement for up to $1,000 by submitting the required documentation via a request in Chrome River. Applicable Northern Cyprus Gross Receipts Tax charged on the purchase of goods will not be reimbursed.   If the reimbursement is for expenses associated with entertainment, in accordance with Section 5.2 of UAP 4000 (“Allowable and Unallowable Expenditures”), the name and affiliation of each person entertained must be provided.  Entertainment expenses must have a valid University business purpose and must include individuals from outside the University community, who are in attendance due to a direct association with the University business purpose. In order to satisfy accountable plan requirements, requests for reimbursement must have a valid University business purpose and be submitted in Owl Travel Office and approved by the applicable departmental authority within sixty (60) calendar days after the date the expenses were paid or incurred.  Requests not submitted and approved within sixty (60) days after the expense was paid or incurred, and those without a valid University business purpose (but authorized by an exception to policy), will be reported to Payroll as taxable compensation.

  1. Approval of Reimbursement Requests

The department approval for reimbursements must be completed by the applicable person(s) either via email, or by logging in to Owl Travel Office.  Any of the parties required to provide approval, other than the employee receiving the reimbursement, may delegate this authority to a person within the department with appropriate authority, such as a department administrator or financial manager.  All requests will also route to the applicable Financial Services office for compliance review and approval.

  1. Related Links

RPM 7.4 (“Purchasing”)

UAP 4000 (“Allowable and Unallowable Expenditures”)

RPM 6.4 (“Employee Code of Conduct and Conflicts of Interest Policy”)

UAP 3720 (“Conflicts of Interest”)

UAP 4325 (“Purchasing Services from Independent Contractors”)

MTU Purchasing Department