Procurement

10.01         Interdepartmental Orders, Issued: May 15, 1998

1.   Definition

An Interdepartmental Order (IDO) is an order placed by one University department to purchase a good or service from another department. Typically the department providing the good or service is a service department; however, the University does have some auxiliary departments providing services. Currently, the following departments provide goods and services to other departments.  

Departments Providing Goods & Services to Other Departments

2.     Initiation

2.1 IDO is initiated with a properly completed Purchase Requisition submitted to the appropriate office in the Fiscal Affairs Department.  

2.2 An IDO number will be assigned and an encumbrance entry posted into FAMIS. If the encumbrance entry is accepted by FAMIS, the white, green and yellow copy of the Purchase Requisition will be forwarded to the department providing the goods or services and the goldenrod copy will be returned to the requesting department. If the encumbrance entry is rejected by FAMIS, the Purchase Requisition will bereturned to the requesting department for insufficient funds.  

3.     Delivery of Goods or Services

Subsequent to the receipt of the approved IDO (i.e. white copy of the Purchase Requisition), the auxiliary or service department will deliver the goods or services to the requesting department. The receiving department will generally be required to sign the order or invoice as  proof of delivery. Exceptions to this are standard billings for services such as utilities and telephone.  

4.     Billings

The auxiliary or service department will submit an invoice and a copy of the IDO to the Accounting Office in the Fiscal Affairs Department for posting. When the revenues and expenses are recorded, the associated encumbrance will be liquidated.

5.     Blanket Orders

Blanket Orders are orders placed for the entire year. All items listed on the Fixed Cost Sheet provided to departments during the budget preparation cycle are treated as Blanket Orders.  [Note: The auxiliary or service department providing the goods or servicesmust have procedures in place for handling Blanket Orders to ensure that they areable to keep up with the available balance.]

6.     Cancellations

A department wishing to cancel an IDO must notify the appropriate auxiliary or service department and must submit a written request for cancellation to the same office in Fiscal Affairs that received the original requisition. An encumbrance liquidation entry will be recorded in FAMIS.

7.     Year-End Closeout

        At the end of each fiscal year, all outstanding IDOs are canceled and the encumbrances liquidated.

8.     Forms

        Purchase Requisition forms may be purchased from Central Stores.  

Contacts:      Encumbrances - Restricted Funds or Budget Office
                    Delivery of Goods or Services - Applicable Service or Auxiliary Department
                    Recording Error - Accounting Office