Purchasing and Tendering Procedures
1. General Overview
The Office of the Comptroller is responsible for handling all purchases of goods and services of the University of which this set of purchasing and tendering procedures shall apply except for the purchase in relation to the following areas:
(a) Capital projects, irrespective of value;
(b) Specific departures agreed in advance by the appropriate Tender Board (e.g. Waive of Tender Procedures);
(c) Library Book Purchases.
2.1 Associate Comptroller
2.1.1 The Associate Comptroller is responsible for overseeing the purchasing functions of the University.
2.1.2 Her responsibilities are as follows:
- to ensure that purchases are made on time;
- to ensure that all purchases are carried out in accordance with approved procedures;
- to develop alternative sources of supply;
- to negotiate with suppliers on price and terms of purchase as and when required;
- to review and streamline the purchasing procedures in order to prevent irregularities and to improve efficiency;
- to assist the Management Accounting, Budgetary Control & Research Accounting Division in system development and maintenance of the Banner Integrated System.
2.2 Business Manager/Business Officer
The Business Manager/Business Officers' responsibilities are as follows:
- to assist in the provisioning of purchasing services to the University;
- to assist in developing alternative source of supply;
- to recommend prospective bidder list;
- to prepare tenders and quotations invitations;
- to issue tenders and quotations to prospective suppliers;
- to assist in the opening of tenders/quotations;
- to analyze tenders/quotations received and prepare price summary;
- to assist in the preparation of documentation to the approving authority on acceptance of tender/quotation;
- to liaise with users/suppliers in tenders/quotations evaluation;
- to monitor and expedite on outstanding purchase orders; and
- to upkeep the operation of the Banner Integrated System and Purchasing Sub-system.
2.3 Clerical Officers
The Clerical Officers' responsibilities are as follows:
- to provide the estimated amount of incoming PR as and when required by referring to recent orders or quotations;
- to assist in the issuance of tenders and quotations;
- to prepare price comparison table for approval;
- to file tenders and quotations;
- to prepare purchase order;
- to record and dispatch purchase order;
- to assist in monitoring and expediting outstanding purchase order;
- to ensure proper receipt and inspection of goods ordered;
- to ensure that discrepancies on items received are promptly and appropriately followed up; and
- to input, update and prepare printout for tendering details, tender results, purchase orders and supplier list.
3. Approval authorities for purchase requisition are as follow:
Purchase Requisition Value
Level of Authority
HK$600,000 and below
Associate Vice-President and Comptroller
Exceeding HK$ 600,000
All purchases of goods and services with the exception of items listed in paragraph 1 above must be obtained through the Office of the Comptroller (Business and Commercial Activities Division) which will act as purchasing agent for the University. Purchase orders (PO) will be placed with the supplier in compliance with Section 8 unless determined otherwise by the appropriate authority tabulated above.
3.1 The approving authorities may, from time to time, sub-delegate his/her delegated authorities for approving purchases of not exceeding $100,000 as appropriate. The written confirmation of delegation together with delegation conditions and specimen signature(s) should be kept by the Office of the Comptroller.
4. Purchase Requisitions
4.1 A Purchase Requisition Form (PR), shall be raised by the Requisitioning Department for all goods and services required. Upon receipt of the PR, the Business & Commercial Activities Division of the Office of the Comptroller will check to ensure that all PR (s) have been numbered and the Financial Accounting & Payroll Division and the Management Accounting Division will check:
(i) the correct account code(s) is/are stated on the PR;
(ii) the requested amount is within the approved budget;
PR with mandatory details missing shall be referred back to the Requisitioning Department for completion. In this case, the purchase may be delayed.
4.2 The duly completed and vetted PR will be submitted to the appropriate authority as specified in paragraph 3 for approval.
4.3 Early involvement of the Business & Commercial Activities Division in procurement of goods and services will facilitate planning, enhance synchronization and alignment of technical, operational and procurement strategies that would maximize savings and avoid potential duplication of efforts. To achieve the best possible results, adequate time must be allowed for thorough sourcing and tendering.
5. Officers appointed for the purchase of goods or services must ensure that the correct procedures are strictly adhered to the procurement regulations.
6. The monetary limits set in paragraphs 8.6 to 8.8 refer to goods and services of the same type acquired by single purchase order from a single supplier. Care shall be taken in this connection to ensure that the limits are interpreted strictly and shall not be evaded by dividing up purchases into installment or by reducing the usual duration of contracts, so as to escape the limits test. Where several purchases occur successively over a period of time (e.g. 12 months), with the cost of individual purchase that is within a certain level of monetary limit but the cumulative amount over a period of time may exceed a certain level of monetary limit, then the cumulative amount of the purchases, rather than the individual amount of purchases, shall be interpreted as the amount for considering whether tendering procedures shall apply. An example of these is the purchase of stationery and sundry office supplies.
7. When filling in the estimated amounts of purchases in the PR, the Requisitioning Departments may ask the Business and Commercial Activities Division to supply an estimate of price or obtain an initial quotation from suppliers before completing the PR.
8. Purchase of Goods and Services
8.1 Goods which are not held in stock or services and cannot be provided by the University internally may be acquired locally in accordance with procedures set out in paragraphs 8.2 and 8.3 below.
8.2 With the approval of the Department Head concerned, single purchase of non-capital items costing up to HK$500 can be made through petty cash by the department concerned under delegated authority as ad hoc purchase.
8.3 All purchases (except paragraph 8.2 above) must be placed through the Business and Commercial Activities Division of the Office of the Comptroller and the purchasing officer should obtain goods/services from local source as far as possible.
8.4 To ensure impartiality of the procurement process, related persons including but not limited to the University’s staff, members of the Finance Committees, Council Members, or indeed all persons involved in the process should be required to undertake not to divulge, without permission, any information relating to the tender/quotation submissions and that they should avoid and declare any conflict between their personal interests and their duties in connection with the procurement process, if any, related to the purchase concerned, by completing the “Undertakings by Members of Tender Opening Teams/Tender Boards/Consultants Selection Boards”. Individuals with any conflict and interests declared should exempt themselves from discussing, reaching decision and accessing to the related information. As a general rule, a declaration should be made in all cases of doubt.
8.5 Supplier Registration
8. 5.1 The Office of the Comptroller shall maintain a list of suppliers which are approved by the Associate Vice-President and Comptroller for invitation to quote or tender. The list is classified into groups and categories.
8.5.2 For those universities, education institutions, government departments and related organizations, schools and overseas vendors, exemption for inclusion into the University’s registered Supplier List may be granted by the Associate Vice-President and Comptroller.
8.5.3 Users/Consultant may recommend supplier(s) other than registered suppliers; however, these new suppliers have to complete the supplier registration procedures before the issuance of order. Users/Consultant should give justification(s) for their recommendations.
8.5.4 The approved lists of suppliers shall be reviewed at least once every three years by the Associate Vice-President and Comptroller or his delegates. New suppliers shall be added to the lists at any time provided that they have satisfied the pre-determined criteria.
220.127.116.11 New Suppliers Inclusion Procedure
(a) Potential suppliers who want to be included in the list of suppliers shall complete and return the "Application Form for Registration as Supplier”, which are obtainable from the Office of the Comptroller, together with copy of business registration certificate and a job reference list;
(b) The Application Form for Registration as Supplier should include the following information of the supplier:
(i) Company name
(ii) Address, telephone and fax number
(iii) Major business
(iv) Name of directors / partners / sole proprietor
(v) Banker information
18.104.22.168 Registered Suppliers Inclusion Criteria
The inclusion criteria are as follows:-
(a) the ability and willingness of the supplier to make timely delivery of goods and services of the required quality and quantity of goods/services;
(b) the price competitiveness of the supplier, viz. unit price, bulk purchase discount, transportation cost and credit terms; and
(c) provision of necessary information as requested by the University.
8.5.5 Potential suppliers will only be notified if they have been included in the registered lists.
8.5.6 The Associate Vice-President and Comptroller may delete suppliers from the registered list.
22.214.171.124 Procedures for the Deletion of Unsatisfactory Suppliers from the Registered List
Unsatisfactory suppliers shall be deleted from the Registered List if:
(a) verbal warnings have been given to the unsatisfactory suppliers (record of such warnings should be kept); and
(b) written warnings have been issued to the unsatisfactory suppliers who have shown no improvement after being verbally warned by the University;
(c) if there is no improvement observed within a reasonable period of time after both verbal and written warnings have been issued, a proposal will be made to the General Tender Board to delete such suppliers from the registered lists.
126.96.36.199 Criteria for the Deletion of Suppliers from the Approved Lists
The following are the factors for considering deleting suppliers from the Approved Lists:
(a) Frequent late delivery of goods/services without proper notification and justifications;
(b) Sub-standard goods/services;
(c) Poor after-sales service (e.g. slow response to maintenance calls);
(d) Frequent non-response to invitation to quote or tender without proper notification;
(e) Any other criteria as the Associate Vice-President and Comptroller considered deem necessary and appropriate in the interest of the University and in compliance with the stipulated procurement procedures.
8.6 Single purchase costing HK$ 20,000 or below
8.6.1 For single purchases costing HK$ 20,000 or below (except paragraph 8.2 above), a required number of telephone/fax quotations shall be obtained from suppliers from the Approved List, or other suppliers as may be recommended by the Department Head concerned or the Associate Vice-President and Comptroller or his delegates.
The minimum numbers of quotations necessary are:-
Minimum no. of
telephone quotation required
Minimum no. of Fax quotation required
HK$3,000 or below
HK$3,001 to HK$10,000
HK$10,001 to HK$20,000
8.6.2 The quotations obtained by telephone shall be recorded on a Price Comparison Table for approval by the Associate Vice-President and Comptroller or his delegates.
8.6.3 Where the minimum number of quotations cannot be obtained or where the offer selected is not the lowest quotation, justifications shall be made by the Department Head concerned and the Associate Vice-President and Comptroller or his delegates shall certify that the prices are reasonable and justified for acceptance.
8.7 Single purchase exceeding HK$ 20,000 and up to HK$ 100,000
8.7.1 For such purchases, not less than 3 written quotations shall be obtained in accordance with the quotation procedures as set out below. All purchases shall be committed only after the PR has been approved by the relevant level of authority as stipulated in paragraph 3 above.
8.7.2 The Business and Commercial Activities Division shall invite not less than 3 quotations from suppliers selected from the approved suppliers' list approved by the Associate Vice-President and Comptroller, one of which shall be a previous successful supplier and the other two shall be chosen by rotation in general.
8.7.3 In the event that it is impossible to obtain three quotations, the Associate Vice-President and Comptroller or his delegates and the Department Head concerned may consider accepting the single quotation.
8.7.4 The Business and Commercial Activities Division, in consultation with Requisitioning Department, shall make recommendations on the quotations received as well as the terms of payment, delivery, warranty, etc. The price quotations received with the recommendations shall be summarized in a "Price Summary" to be approved by the Associate Vice-President and Comptroller or his delegates. A summary report shall be compiled for periodic review. The Associate Vice-President and Comptroller or his delegates shall review all purchase decisions on a regular basis. Where the lowest offer is not selected, full justifications shall be made to the Associate Vice-President and Comptroller or his delegates for approval. All quotations, whether successful or not, shall be kept for 3 months after acceptance of the successful quotation.
8.8 Purchases exceeding HK$100,000.
This section shall apply to all purchases over HK$100,000 and the term "Tender Board" shall be substituted where appropriate by "the Associate Vice-President and Comptroller", "the General Tender Board"(GTB) or "the Main Tender Board"(MTB) according to the authority limits as stipulated in paragraph 3 above. The term "Chairman of the Tender Board" shall be substituted by "Associate Vice-President and Comptroller" in the case of purchases equivalent to or below HK$ 300,000.
8.8.1 Unless otherwise approved by the Chairman of the Tender Board, single purchases over HK$ 100,000 in value must be obtained by tender. In case of tender waiver, the reason for waiving the tendering procedures shall be documented and filed together with the approval. A list of all approved tender waivers shall be submitted annually to the appropriate Tender Board for reference. The levels of authority to waive tendering procedures for items above HK$ 100,000 and to approve (single tender) are as follow:
Level of Authority
Associate Vice-President and Comptroller
HK$ 100,001 to HK$300,000
Chairman of GTB
HK$ 300,001 to HK$l.5 million
Chairman of MTB
Exceeding HK$1.5 million
8.8.2 All tenders shall be submitted to the Associate Vice-President and Comptroller or the appropriate Tender Board for decision as stipulated in paragraph 3 above.
8.8.3 Prior to calling tenders, the list of tenderers chosen from the approved list of suppliers shall be sent to the Requisitioning Department for comment and to the Associate Vice-President and Comptroller or Chairman of the appropriate Tender Board for approval.
8.8.4 Single Tendering
188.8.131.52 for Single Tendering
(a) Single tender shall be avoided, as far as possible. Single tender may only be adopted when circumstances do not permit normal competitive tendering. Examples of such circumstances are given below:
(i) where there is unforeseen urgency;
(ii) where there are security conditions;
(iii) where the equipment to be acquired must be compatible with existing equipment;
(iv) where there is evidently only one source of supply;
(v) where "Patent" or "Proprietary" items are involved;
(vi) where services are to be provided by utility companies;
(vii) where there is exclusive maintenance on patented or specialized equipment; or
(viii) where lease terms requiring specific work that must be carried out by specified party/organization.
184.108.40.206 Procedure for Single Tendering
(a) Unless otherwise approved by the Chairman of the appropriate Tender Board, single tender must not be adopted. For the case of single tendering, the reason(s) for approving the single tendering shall be documented and filed together with the approval.
(b) When seeking authority to approve the adoption of single tendering procedures, the Requisitioning Departments shall:
(i) describe the background of the work to be carried out or the requirement of goods/service to be procured;
(ii) state the estimated cost;
(iii) explain why single tendering is required;
(iv) if the reason for the single tendering actions is urgency, explain why the need for the service/goods could not be envisaged earlier.
(c) The tenderer invited to quote under the single tendering procedures shall be advised to submit his tender in accordance with normal tendering procedures. Under no circumstances shall the tenderer be informed that the tender is being processed on a single tender basis.
8.8.5 Under normal circumstances, not less than 5 tenderers for purchase value over HK$100,000 shall be selected from the registered list of suppliers. Among these, one tenderer must be the successful supplier in recent tenders for the supply of similar goods/services and the others, (at least two for purchase value over HK$100,001) is/are those who have not been invited to tender recently.
8.8.6 The Purchasing Officer and the Secretary to the Tender Boards shall ensure the following are complied with:
(a) When a deposit is required as a guarantee, the tender document shall specify that the tenderer is to issue a notification stating the amount of the deposit, the specification of how it is to be paid and the requirement of attaching the deposit receipt to the tender.
(b) All "Invitations to Tender" shall clearly indicate the mode of dispatch to the specified Tender Box before the closing date and time. Tenderers shall be advised that if they submit their tenders by post, they are doing it at their own risk.
(c) A Control Record of the invitation sent and the subsequent follow-up actions for non-response must be kept. "Invitation to Tender" may be sent by registered post or be collected by the supplier upon request.
(d) A tender box kept under double lock shall be located at the counter of the Office of the Comptroller for the receipt of tenders. The keys shall be kept separately by the key holders (i.e. the President’s delegated staff and the Associate Vice-President and Comptroller’s delegated staff).
(e) The closing time and date for the receipt of a tender shall be clearly stated in the "Invitation to Tender".
8.8.7 From the time tenders are received until the award of the respective contract has been made, all relevant information and communications between Departments concerned must be kept confidential.
8.8.8 In the event of a tender received by post before the closing time, the Secretary to the Tender Board or the Purchasing Officer shall put it into the Tender box. If the date and time of opening tenders is deferred, the same privileges shall be extended to all tenderers and the opening of the Tender Box shall be deferred until the extended closing time.
8.8.9 Late tender, unless the Tender Board approves otherwise, shall not be considered except when only one tender has been invited. In such case, approval of the Tender Board shall be sought to accept such late tender as a valid offer.
8.8.10 The tender box must be opened promptly by the key holders at the closing time or such deferred closing time as approved by the Tender Board.
8.8.11 The Tender shall be opened in the presence of one Officer as nominated by the President, one Officer to be nominated by the Associate Vice-President and Comptroller and one additional Officer. The following actions are to be taken:
(a) All tenders, immediately after being opened, shall be sorted into original and duplicate copies and shall be stamped, authenticated and initialed by the witnesses to ascertain that they were duly received on time.
(b) The total number of tenders received shall be noted in a tender summary sheet. All officers witnessing the tender opening shall endorse the list. Those non-response invitations shall be followed up by the Business and Commercial Activities Division and wherever possible a written declination to tender be returned.
(c) If it is discovered, on the opening of tenders, that alterations have been made without supplier's signature, the witnesses shall encircle the alterations in red to certify that the alterations detected are made before the receipt of tender.
(d) Original tenders and a copy of the Tender Summary Sheet shall be retained by the Secretary to the Tender Board under lock and key. All photo or carbon copies of the provisional bills of quantities shall be handled under confidential cover as stated in paragraph 8.8.12.
(e) For any tender submitted without the required photo or carbon copy of the provisional bills of quantities, photocopies of the tender shall be taken and certified by the Secretary to the Tender Board.
(f) Tenders which have omitted the tender number from the envelope shall be opened by the Secretary to the Tender Board in the presence of the witnesses to see if they are related to the current tender or whether they are early tenders for the next tender exercise. In the latter case they shall be put back into the Tender Box for the next opening after the Secretary to Tender Board and the witnesses have certified on it.
8.8.12 The duplicated tenders shall then be listed and forwarded by the Secretary to the appropriate Tender Board under confidential cover by hand to the Requisitioning Department for assessment.
8.8.13 The Requisitioning Department shall prepare an assessment report for consideration by the Associate Vice-President and Comptroller or the appropriate Tender Board. The tender report shall contain at least a price summary in the form of a comparative statement, a recommendation and the budgeted amount with full justification.
8.8.14 The Chairman of the Tender Board may decide whether tender reports be considered by circulation or for discussion in a meeting at which representatives from the Requisitioning Department shall be present to answer queries from members.
8.8.15 The Secretary to the Tender Board shall proceed to obtain further approval from UGC, if required in accordance with the Tender Board resolution. Upon receipt of the necessary authority to accept the tender, the Secretary to the Tender Board shall inform the Requisitioning Department of the outcome and the Business and Commercial Activities Division shall proceed to finalize the contract.
8.8.16 Tenderers shall treat their returned tenders as being unsuccessful if orders are not confirmed within the tender validity period. Such unsuccessful tenders shall be retained for three months before disposal.
8.8.17 No post tender negotiation is allowed unless approved by the Chairman of the Tender Board. Any approved negotiation must be carried out by AT LEAST two officers, one from the Office of the Comptroller and one from the Requisitioning Department. All agreements reached must be clearly documented and signed by both parties.
8.8.18 Tender files shall be periodically examined by staff assigned by the Associate Vice-President and Comptroller in order to ensure that all "Invitations to Tenders" have been sent out accordingly and approved suppliers have a fair chance to compete.
8.8.19 For administrative convenience, it is permissible to re-apply previous approved quotations or tenders to new requisitions for goods or services which have been ordered or contracted before, provided that the quotation/tender is not more than 12 months' old and all relative terms, rates and conditions remain the same. This also applies to paragraphs 8.6 and 8.7 above.
8.8.20 Contracts awarded by tender may be extended for a further period subject to the tender specification with approval of the appropriate Tender Board.
8.8.21 The Business and Commercial Activities Division of the Office of the Comptroller shall provide a continuous diary of quotation and tender opening dates and time for the Associate Vice-President and Comptroller's inspection and scrutiny.
8.9 Tender handled by the Associate Vice-President and Comptroller
8.9.1 Terms of Reference
(i) To decide on the acceptance or rejection of tenders with purchase value between HK$ 100,001 and HK$ 300,000
(ii) To decide whether it is necessary to refer tenders and quotations not exceeding HK$300,000 in value to the General Tender Board for consideration.
8.10 General Tender Board
8.10.1 The structure of the General Tender Board is as follows:-
Associate Vice-President and Comptroller (Deputy Chairman)
One Dean by rotation to be nominated by the Chairman of the General Tender Board.
8.10.2 Terms of Reference
(i) To decide on the acceptance of tenders for values from HK$ 300,001 to HK$1.5 million.
(ii) To consider tenders and quotations not exceeding HK$ 300,000 in value which have been referred to the General Tender Board by any Head of the Requisitioning Department or the Associate Vice-President and Comptroller.
8.10.3 It is imperative that all members of the Board must make a clear declaration of his interests, if any, in connection with the tender/quotation under consideration. If any Member has a pecuniary interest, direct or indirect, in any contract or proposed contract or other matter, and is present at a Meeting at which the contract or other matter is a subject for consideration, he shall disclose this fact and the nature of his interest. The Chairman shall thereupon ask the Meeting to decide whether the Member should withdraw during the discussion of the matter or be present but abstain from participating and voting.
8.11 Main Tender Board
8.11.1 The Structure of the Main Tender Board in as follows:-
An external Council member
At least two external Council members,
Associate Vice-President and Comptroller
Three members with one external
Council member in the Chair
8.11.2 Terms of Reference
(i) To consider tenders in excess of HK$1.5 million.
(ii) To consider tenders not exceeding HK$ 1.5 million in value which are referred to the Main Tender Board by the General Tender Board.
(iii) To consider and make recommendations for the establishment of other subsidiary Tender Boards where appropriate and to draw up such rules as may be appropriate to regulate their procedures.
8.11.3 It is imperative that all members of the Board must make a clear declaration of his interests, if any, in connection with the tender/quotation under consideration. If any Member has pecuniary interest, direct or indirect, in any contract or proposed contract or other matter, and is present at a Meeting at which the contract or other matter is a subject for consideration, he shall disclose this fact and the nature of his interest. The Chairman shall thereupon ask the Meeting to decide whether the Member should withdraw during the discussion of the matter or be present but abstain from participating and voting.
8.12 Tender Evaluation
8.12.1 For tenders based on both price and technical/quality considerations, A two-envelope system should be adopted and the Business and Commercial Activities Division shall forward the duplicate copy of the tenders excluding price information under restricted cover to the requisitioning department for evaluation and recommendation. Tenderers should be informed in the tender document to submit the price proposal and technical/quality proposal in separate, sealed envelopes. In the evaluation, the price envelopes should be kept in the Tender Box and should only be released to the requisitioning department after the technical/quality proposals have been properly assessed.
8.12.2 A scorecard of evaluation factors with relative weightings shall be predetermined and agreed as appropriate between the requisitioning department and the Business and Commercial Activities Division before the issuance of tender. The technical/quality and price scores should be combined using pre-determined weightings.
9. The status of processing the purchase requisition should be updated whenever "Invitation to Quote / Tender" has been sent as well as after a Purchase Order has been issued.
10. After the tender/quotation has been awarded, the Business and Commercial Activities Division shall then take the following steps to complete the purchase:-
10.1 The Purchasing Officer shall prepare and check the Purchase Order (PO) before dispatch. The distribution of the PO shall be as follows:
Yellow copy and Green copy
Office of the Comptroller (Business and Commercial Activities Division)
Office of the Comptroller (Financial Accounting and Payroll Division)
White (Requisitioner's) copy
10.2 The Purchasing Officer preparing the PO shall ensure:
(a) that the PR is duly approved by the appropriate level of authority, and additional PR should be approved if the recommended order amount exceed the initial PR by HK$10,000; and
(b) that the account code quoted on the PO agrees with that on the PR.
10.3 The Purchasing Officer shall periodically review to ensure that all pre-numbered POs are properly accounted for. Any missing PO shall be reported to the Associate Vice-President and Comptroller.
11. Orders which specify the dispatch of goods by air must be justified by the Requisitioning Department. If the Associate Vice-President and Comptroller is not satisfied with the reasons given and is unable to reach agreement with the department concerned, he shall refer the matter to the Chairman of the Tender Board for decision.
12. The Business and Commercial Activities Division shall be responsible for maintaining a list of registered suppliers for each type of goods/services, from which reference shall be made in obtaining quotations. All suppliers approved shall be reviewed periodically by the Associate Vice-President and Comptroller to ensure that each of them has been given a fair chance to quote and that they have been providing satisfactory services.
13. For purchases where the original request is estimated to cost HK$ 100,000 or below but the final price exceeds this limit, such purchases should be submitted to the Chairman of the Tender Board for approval.
14. Any variation in the tender/quotation procedures or disagreement arises between the Requisitioning Department and the Business and Commercial Activities Division that may affect the acceptance of quotation/tender must be referred to the Chairman of the Tender Board for decision.
15. Emergency Procedure
15.1 In situations where goods or services are urgently required by the requisitioning department, the Business and Commercial Activities Division shall have the discretion to obtain quotations/tenders urgently in compliance with paragraph 8.6.1, 8.7.1 or 8.8.1 where applicable prior to the PR being duly approved by the appropriate level of authority. In all cases the details of all emergency purchases shall be submitted to the respective authority under normal procedures for subsequent review and ratification.
16. Order and Commitment Records
16.1 With proper approval for the purchase, a PO or a Letter of Acceptance will be issued to capture the financial commitment of the expenditure and to serve as an official acceptance of the offer by the suppliers. All POs must be placed through the Office of the Comptroller.
16.2 All data on PR raised, PO issued and payment made against such PO shall be recorded in the Banner Integrated System by the Business and Commercial Activities Division, the Management Accounting, Budgetary Control and Research Accounting Division and the Treasury Division.
16.3 The creation of data starts with an approved PR received by the Business and Commercial Activities Division. A record is created via the Requisition Data Entry Function. The PR record is subsequently updated by the creation of a PO record via the Order Confirmation Function.
16.4 At regular intervals (preferably month-end) the Business and Commercial Activities Division shall activate the Orders and Commitment System to produce an "Outstanding Purchase Requisition List" showing all PRs received by the Business and Commercial Activities Division pending for necessary actions (i.e. POs are not placed yet).
16.5 At regular intervals (preferably month-end) the Treasury Division shall activate the Banner Integrated System to produce an "Outstanding Commitment List" showing all POs placed but corresponding payments have not been made in full.
16.6 The amount under each account in the "Outstanding Purchase Order List" shall automatically be posted to the Departmental Financial Report and Internal Statement produced by the General Ledger System.
17. Follow-up on PO Issued
The Business and Commercial Activities Division shall monitor the receipt of goods. In this connection the Division shall be responsible for the follow-up actions:
a) follow-up with the Requisitioning Departments in preparing documents evidencing goods received (e.g. GRN);
(b) in the absence of GRN or any proper documents evidencing goods received, check the Requisitioning Department if goods or services are properly received;
(c) inquire into the outstanding undelivered PO with the suppliers.
17.2 Goods/Services Receiving Procedures
Services ordered shall be delivered directly to the Requisitioning Department whereas goods ordered shall be delivered to the Business and Commercial Activities Division to co-ordinate distribution. In cases where delivery of goods of a single order involves more than one requisitioning department, the Business and Commercial Activities Division shall act as an agent. The following general procedures apply to all cases of goods or services receipts, including those for the University's Store. However, additional steps need to be taken for University Store goods receipt. Please refer to the Stores Procedures for details.
17.2.1 Delivery of goods or services shall be accompanied by a delivery note, receipt, invoice or any other supporting document as evidence of receipt. Before accepting the goods or services and acknowledging such, the receiving staff should ascertain the following:
(a) that the goods or services delivered are requested under a legitimate PO issued by the University;
(b) that the quantity of goods and services delivered (including the figure shown in the delivery note and invoice) and the requested quantity as stated in the PO are exactly the same;
(c) that the condition of goods or the quality of services delivered are at acceptable level/standard as stated in the PO.
17.2.2 Any defective or damaged items found during inspection of goods shall be rejected and remarks shall be made on the document.
17.2.3 Where no inspection is possible in view of the time constraint, a note should also be made on the document evidencing the receipt to such effect.
17.2.4 A copy of the document evidencing the receipt of goods should be made as soon as possible and retained by the Receiving Department for onward submission to the Business and Commercial Activities Division of the Office of the Comptroller. The Receiving Department should mark on the document any defective or damaged items discovered during the receipt of goods and what actions have already been/will be taken.
17.2.5 For service contracts irrespective of the order value and for suppliers who have been awarded orders in excess of HK$100,000, performance assessment form shall be completed by the Requisitioning Department upon job completion and be forwarded to the Office of the Comptroller for record purpose together with the document evidencing the receipt of goods as mentioned in paragraph 17.2.4 above.
17.2.6 The copy of the document evidencing the receipt of goods or services shall form the basis for payment. The Receiving Department shall ensure that the document bears its proper authorization signature before forwarding it to the Office of the Comptroller for further processing.
17.2.7 Where the copy of the document evidencing the receipt of goods or services is lost, the department receiving the goods or services shall use the GRN copy (green copy) of the PO (or a photocopy in case of partial delivery marked with the exact quantity received) to certify that the goods or services have been received.
17.3 Goods Receipt Recording
17.3.1 For goods received and procured with the issue of a PO, the Business and Commercial Activities Division shall update the Purchase Order Data File of the Banner Integrated System. Documents relating to goods received and procured without a formal PO, shall not require data entry into the Banner Integrated System.
17.3.2 The quantity of goods or services received, no matter in acceptable conditions or damaged conditions shall be recorded. The Goods Received Note number/PO numbers, after final delivery is made, are to be recorded for future reference. All documentation about the receipt of goods relating to the same stock items shall be batched. Identification of such data (by way of file extension) shall be determined by the user at the beginning of data entries.
17.3.3 An "Outstanding Purchase Order List" showing all outstanding POs and their current status can be produced by the Banner Integrated System any time.
17.3.4 At the time when order is placed, a clerical officer shall mark the expected completion date on diary. He/She shall check against the order file to ensure that deliveries are completed on time.
17.3.5 The Business and Commercial Activities Division shall issue hasteners to suppliers for deliveries not made on or before (if required to do so) the specified delivery date.
The document evidencing the receipt of goods or services when after processing by the Receiving Department concerned, shall be recorded by the Business and Commercial Activities Division into the Banner Integrated System via the Goods Receiving Function. The invoice together with the PR and PO copies shall be passed to the Treasury Division for settlement. Date to the Treasury Division shall be marked on the PO for recording purpose.
17.5 Order Amendment
17.5.1 If changes have to be made to a PO regarding delivery address, specification, quantity, etc., the Business and Commercial Activities Division shall prepare an "Amendment to Order" in 5 copies and distribute them in the same manner as a PO.
17.5.2 Should the amendment affect the total value of the requisition, the Business and Commercial Activities Division shall seek prior approval from the appropriate authorities as prescribed in paragraph 3 above.
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