Finance

Questions About Purchasing

What are the cost thresholds for requisition approval by various approval authorities?

Requisitions less than $500 can be approved by the Principal Investigator and GCS. From $500 up to $3,500 the Dean's signature is required in addition. Between $3,500 and $10,000, the Vice President's approval is required. The President's approval is necessary for requisitions exceeding $10,000. Beyond $200,000, the NJIT Board of Trustees' approval will be required. (Do not subdivide your requisitions to avoid these thresholds.) The threshold for competitive bidding is $17,700. If you are contemplating a non-standard purchase or a purchase in excess of $17,700, see the Director of the Purchasing Department.

Dollar Range Constraint Applicable In Range
0-$500 PI and GCS approval
$500-$3,500 Dean Approval needed in addition
$3,500 -$10,000 VP Approval needed in addition
Above $17,000 See Purchasing about competitive bidding
$10,000 and Above Presidential approval needed in addition
Beyond $200,000 Trustee's approval will be required


Back to the Top


What are the guidelines about purchasing near the end of the grant?

 Most sponsors limit equipment purchases at the end of a grant. They are concerned that a purchase (and especially equipment) late in the grant may not benefit the grant purpose. NJIT requires written justification for purchases made within 90 days of the expiration of the grant, and for reimbursements made more than 30 days after expiration of the award. Such justification, explaining how the purchase advances the grant purpose, should be entered on Purchase Requisitions, in the screen 254 "description" field.

Back to the Top


What are the guidelines about purchasing near the end of the grant?

Most sponsors limit equipment purchases at the end of a grant. They are concerned that a purchase (and especially equipment) late in the grant may not benefit the grant purpose. NJIT requires written justification for purchases made within 90 days of the expiration of the grant, and for reimbursements made more than 30 days after expiration of the award. Such justification, explaining how the purchase advances the grant purpose, should be entered on Purchase Requisitions, in the screen 254 "description" field.

Back to the Top


What are the reimbursement procedures for non-travel expenses less than $50 purchased by cash or credit card?

If the non-travel expenses are $50.00 or less, take your receipts to Accounts Payable (AP). AP is located in room 500 Fenster Hall. Petty cash is disbursed on Monday (or Tuesday when Monday is a holiday) from 1:00 to 3:00 PM while cash lasts. The University does not reimburse sales tax.

To get reimbursed, fill out a petty cash voucher. Petty cash vouchers are available from retailers, such as NUMAC. Get approval from your supervisor or department chairperson (one-up approval). Take the voucher and your receipts to AP, and they will reimburse you on the spot.

If the expenses are greater than $50.00, then prepare a GW requisition on the FRS, listing yourself as the vendor. When the requisition converts to a purchase order, submit the Purchase Order with your receipts to AP and you will be subsequently reimbursed by check.To get reimbursed, fill out a petty cash voucher. Petty cash vouchers are available from retailers, such as NUMAC. Get approval from your supervisor or department chairperson (one-up approval). Take the voucher and your receipts to AP, and they will reimburse you on the spot.

Back to the Top


I'm making an alteration, related to equipment purchased on a grant, to an NJIT building. How should I charge the cost of the alteration?

 If the alteration is exclusively for equipment procured with grant funds, then the cost of the alteration should be included in the cost of the equipment procurement. The cost of the alteration should be included in the cost of the equipment in the grant proposal. In FRS you would budget and charge the alteration to the same 3000-series object code that you use for the equipment procurement. For example, necessary platforms and electric power for equipment should be treated in this way.

If the alteration is partly in support of your grant, but predominantly supports other NJIT activities now or in the future, then consideration should be given to charging the cost to an NJIT facilities account, as part of general facilities expenses considered indirect costs of grants. Discuss alterations of this type with the Associate Vice President for Facilities and Public Safety.

Facilities alterations falling into neither of the above categories, and for which there is prior written approval from the grant sponsor, may be charged to the grant under object code 6202.

Back to the Top


What are the rules for travel on grants?

NJIT rules for travel on grants may be found under Administrative Departments, Finance and Budget, on the NJIT web site.

At a minimum, documented "one-up" approval by a person's supervisor is required before travel. Rules for allowability of expenses, discussed above, apply to travel, too.

NJIT employees' travel expenses are claimed for reimbursement via a travel expense voucher. Non-employees' travel claims should be requisitioned in FRS. Advance payment of travel costs (e.g., airline tickets, meeting registrations) of both employees and non-employees may be accomplished through an FRS requisition.

Reimbursement for costs in foreign currencies (on any given date) can be established by reference to the following web site: http://www.olsen.ch/

Foreign travel on federal grants must be on a domestic airline.

Grant funding sponsors require that NJIT require written justification for the trip, including the purpose of attendance (as part of the reimbursement procedure). A space for the travel purpose is provided on the NJIT Travel Expense Voucher form. Attach the conference agenda or schedule to your travel claim. The purpose should include the destination, and the name and sponsor of the conference(s) or meeting(s) attended. Also attach, if necessary, a written explanation for meal expenses that exceed the daily per diem. For instance, "People in my group took turns buying the communal meal, and it was my turn."

Back to the Top


When and how is requisition cancelled on FRS?

A requisition might be cancelled for any of several reasons. You might start a requisition and not to complete it, intentionally or by accident. Sometimes a decision is made to not make a purchase for which a requisition has been completed (perhaps because the material isn't needed, or due to insufficient funds). At the end of a fiscal year, requisitions on fiscal accounts (that end with the fiscal year) should be cancelled. At the end of a grant, there should be no active requisitions after the grant end date; residual requisitions should be cancelled. In any of these cases, you will want to know how to cancel a requisition.

The first step in canceling a requisition is to open a session in FRS (on the 30 screen). Then go to the 253 screen. At the top of the 253 screen, in the blank provided, write the number of the requisition that you want to cancel. Press enter . At the bottom of the screen text is a blank line after the words "Delete Lines." Tab to this blank. On the You can check the status of your requisition on the 21 screen of FRS. You can also check that the "Req Total" at the bottom right of the 250 screen is blank or zero after deletion. Deletion of the requisition may take an overnight cycle of the purchasing system. If you have problems with canceling a requisition after having tried the procedure above, contact the Purchasing Department for assistance.

Back to the Top


How and when is receiving report entered on FRS?

When you receive the material from a GR or UR requisition, you should do a receiving report. No receiving report is needed for a GW requisition. To record a receiving report, go to the 228 screen of FRS. Enter the Purchase Order number on the 228 screen. Press enter. Go to the 230 screen. Tab to the "multiple lines" section in "receiving data" of the 230 screen, and press enter.

In "Part II," tab to UOM. Key "ea", tab and key "1.", tab and key "A", then key "F", then press enter. Return to the 228 screen, and you have completed the receiving report.

Back to the Top


Is there an official document I can give to vendors to avoid paying sales tax on NJIT related purchases?

Click here to get the document

Back to the Top


How should I process Surplus Property?

NJIT is committed to ensure that all of the university's physical assets are used in a most effective and efficient manner. When such resources become surplus, the university endeavor is to dispose of those assets using a method which is fair and which maximizes any possible remaining value of the asset.

PROCEDURE FOR HANDLING SURPLUS PROPERTY

Step 1: Identify your property and send a "Surplus Property report Form: to the Purchasing Department (retain a photocopy for your files). A copy of the form follows. This form must be signed by the Department Head or Center Director.

Step 2:  Purchasing sends copies of the form to the Asset Management Department in Finance and Grant and Contract Services to: 1) Determine if NJIT has free title and 2) Relieve our inventory base.

Step 3:  Several times during the year but not less than semianually ( as long as there exists an inventory of surplus items) a list of surplus items will be circulated among the Chairman and Directors.

Step 4: Purchasing will obtain competitive bids and publicly advertise ( when the original equipment cost is greater than the current public bid limit).

Any questions concerning Asset Management procedures contact Sunil Patel at ext. 7737 or email: Patel@adm.njit.edu

Click here to get Surplus Property Form

Note: for additional information see Capital Equipment

Back to the Top


How are Consultant and Contractor Services Purchased?

For Consultant Information see: Consultant Form or for Independent Contractor Information see: Independent Contractor

Back to the Top


I've got a big interdisciplinary grant. What if I want to involve a consultant or sub-awardee (aka subcontractor) from outside NJIT?

Standard forms for consultant agreements or subcontract agreements are available from the Office of Sponsored Research Administration. The forms can also be downloaded from the Sponsored Research Administration website.  A consultant provides advice or information. A subcontractor accomplishes part of the objective of the grant.

The Principal Investigator is responsible for describing what is to be done by the consultant or subawardee, and the reasonable payments that will be made for that work upon achievement of technical objectives.

After signature by the consultant or subcontractor the agreement will be reviewed by Intellectual Property Counsel and other appropriate authorities at NJIT before the agreement is signed by the Associate Provost for R&D to authorize NJIT's participation in the agreement with the consultant. After signature of the consultant agreement by NJIT, the principal investigator is responsible to ensure that the terms of the agreement are fulfilled

Federal regulation requires NJIT to obtain an annual A-133 audit status from each subawardee institution. The sub-award agreement should require the subawardee to provide of a copy of this audit status report for each year of the sub-award. Office of Sponsored Programs can provide a pre-award survey to verify that a proposed subrecipient is compliant with audit regulations before a subaward is made.

In either case, consultant or subaward, you should make a requisition through FRS (see Q&A about requisitions) for payment of the subawardee or the consultant. The requisition would be entered after the agreement is signed. Cite the agreement in the requisition; otherwise approval of the requisition will be delayed while existence of an agreement is verified. That is, write "An approved agreement is on file" in the comments section of the 252 screen when you approve the requisition, if the statement is true. Use a blanket-order requisition if multiple payments are anticipated. The requisition should be a blanket order if multiple payments to the consultant or subrecipient are anticipated. The requisition will convert to a purchase order.

After they accomplish some work, the subawardee or consultant will invoice NJIT for reimbursement of their expenses under the agreement. The NJIT Principal Investigator should review the invoice. The invoice should be consistent with the subaward budget. The invoiced costs should be reasonable. If the PI is satisfied with the invoice, they should sign the invoice, mark it "Okay to pay," date it, and annotate it with the purchase order number before forwarding it to Accounts Payable (AP). AP will pay the invoiced amount to the consultant or subawardee, based upon the purchase order and the invoice.

 Back to the Top


What is the maximum hourly rate a Consultant can be paid on a grant or contract?

The maximum hourly rate a consultant can be paid is $67.13, not to exceed $537 ($67.13 x 8 hours) per day. If you have any questions on this matter please contact the Office of Sponsored Research Administration.

Back to the Top