University purchasing is governed by Kentucky laws and University and Foundation policies. Two documents with which you need to be familiar are the Quick Reference Table for Purchasing Limits and the University's Discretionary Spending Policy. The Quick Refernce Table provides a general guide on the approved methods of purchasing at various levels of dollar value. The University's Discretionary Spending Policy provides guidance on what types of expenditures can be made from State/Grant, Vending, or MSU Foundation Accounts.

There are four areas where University purchasing policies may differ slightly:

• Grants
• MSU Foundation
• Tax Exemptions
• Donations/Gifts in Kind

GRANTS

Purchases using Grant Accounts are subject to all University Purchasing Regulations unless a conflict arises between a grant provision and a regulation. In such an event, the grant prevails. A copy of the grant provision is required as confirmation. All grant purcahses are reviewed by the Grant Accountant either at payment, or before pre-payment or requisition is approved. Policy clarification on limits, expiration dates, etc should be obtained from the Grant Accountant.

MURRAY STATE UNIVERSITY FOUNDATION

While the Foundation does have its own policies pertaining to expenditure of funds, the January 1991, policy stated in part: "The Foundation adheres to the principles of purchasing utilized by Murray State University with certain exceptions ..."

1. Two signatures will be required on all Foundation expenditures. The two parties authorized to sign on a particular account are determined at the time of establishment of a new account. Generally, the two signatures will be determined as follows:

A. Individual initiating the expenditure and department chairman or director, or

B. Department chairman or director initiating the expenditure and dean of college or vice president, as appropriate, or

C. College dean initiating the expenditure and the Provost, or

D. Vice president initiating the expenditure and the President.

3. Off-campus purchases under $500 may be made directly from the vendor, with the MSU Purchase Requisition form processed for confirmation.

4. Off-campus purchases of $500 or more should be submitted to MSU Procurement Services Department before a commitment is made to the vendor.

NOTE: In some circumstances (e.g., real property purchases or when the purchasing unit specifically states in advance a concern for the "best" as well as "lowest" price), the Executive Director (<$25,000) or the Executive committee (>$25,000) may modify or waive the above procedures.

5. Charges may be transferred from a University account to a Foundation account by processing a Murray State University Inter-Account Bill. The Inter-Account Bill should list the vendor, purchase order number or other reference, and the amount of the charge to be transferred. Because of restriction on the use of State funds, charges cannot be transferred from a Foundation account to a University account, except on a limited case-by-case basis.

6. Payments or requisitions can not be processed using a combination of University and Foundation accounts. The payment or requisition should use the University account and an Inter-Account Bill processed to charge the Foundation the desired amount.

TAX EXEMPTIONS

Murray State University is a nonprofit educational institution which qualifies for income tax exemption under section 501(c) (3) of the Internal Revenue Code as follows:

1. Tax does not apply to sales of tangible personal property or services to such institutions provided the property or service is to be used solely within the educational, charitable, or religious function.
2. Tax does not apply to sales of food to student in school cafeterias or lunchrooms if the University operates their own services.
3. Tax does not apply to sales by school bookstores of textbooks, workbooks, and other course materials if self operated.

Murray State University is tax exempt. The tax number assigned to the University is #A-355. Murray State University Foundation tax number assigned is #C-13546. Always refer to these numbers when vendors may ask for tax exempt status. If vendors request a tax exempt certificate, the certificate is available in Procurement Services. The only person authorized to sign certificates for purchases is the Director for Procurement. Upon request, the form will be filled out and mailed to you.

DONATIONS & GIFTS IN KIND

Donations/contributions to Murray State University are greatly appreciated. In order to properly acknowledge these contributions or to place certain items under protective insurance coverage, the proper personnel must be informed of all donations. Therefore, a form is available from the Office of Development to make a record of such donations.

You must remember it is important to have an appraised value of the gifts so the donor may take advantage of any tax deductions which might apply as a result of the gift. The university cannot appraise gifts nor assume responsibility for the accuracy of the appraisal.

Individuals may not accept donations for their department. Pre-approval must be obtained from the Department Chair, Dean, Vice President over the recipient department and the Vice President for Finance & Administrative Services. The final approving authority for all gifts and/or donations is the Murray State University Board of Regents.

Gifts in kind are not recognized nor sanctioned by the Procurement Services Department. Any agreements entered into will not be forwarded to Procurement Services for processing. Procurement Services has recommended in the past that such agreements made without the benefit of Procurement Services procedures be sent directly to the Foundation.