203: Unauthorized Purchases or Contracts
Procurement and Contract Services Policy & Procedures Manual
Section 200: Regulations and Authority
A purchase or Contract made outside PaCS granted Purchase Authority or Contract Signature Authority is unauthorized. Unauthorized purchases or Contracts are not legal or binding on OSU and are voidable at OSU’s discretion. Individuals that purchase or sign Contracts beyond their granted authority may be held personally responsible for the purchase or Contract, which could include personal liability for payment to the vendor for the purchase or contract, or repayment to OSU. The university must address unauthorized procurements or Contracts by documenting the circumstances and taking corrective action.
203-001: Rectification of Unauthorized Purchases or Contracts
Unauthorized purchase of goods may be rectified by cancellation of the purchase and return of the goods. Unauthorized Contracts for goods or services may be rectified by cancelling the contract before receipt of goods or services. If goods or services have been received, and return or cancellation is not an option without incurring a cost that must be paid, then ratification of the Unauthorized Purchase or Contract must occur.
203-002: Ratification of Unauthorized Purchases or Contracts
Unauthorized purchases or Contracts may be ratified if approval is granted through the ratification process described herein. Payment for the procurement or Contract may not be made until after ratification has been granted by the appropriate Purchase Authority or Contract Signature Authority.
- Departments or Business Centers should first try to rectify unauthorized purchases or Contracts.
If the purchase or Contract cannot be rectified and the unauthorized purchase or contract is a first time occurrence then someone from PaCS will contact the individual to counsel and education as appropriate given the specific situation. The person responsible for the unauthorized purchase or contract should ensure they understand how the situation should have been managed and acknowledge the person they were working with in PaCS
- If there is a second occurrence, the individual will be required to sign an unauthorized procurement/contract Activity – 2nd Notice” letter of understanding.
- Further occurrences will result in notification to the Dean or Department Head and may result in the individual facing being held personally liable to pay the contractor or repay the University
If legal review would have been required for the purchase or Contract, then ratification must be managed between PaCS and OSU Office of General Counsel.