• In general, KSU does not enter into purchasing contracts with entities in which students, faculty, staff, or members of their immediate families have a direct or significant indirect interest.
• Rare exceptions may be allowed conditioned upon full disclosure, compliance by the other parties with all contracting requirements (including evidence of appropriate business insurance and licensing, and acceptance of the standard KSU contract terms), and a determination that the arrangement is in the best interest of KSU.
• These transactions are subject to KSU's Conflict of Interest ad Commitment Policy governing the conduct of employees relative to business relationships and require review and approval in accordance with that policy. All potential conflicts must be disclosed to the Purchasing Department and other appropriate authorities prior to any commitment.

Federally Funded Purchases

Purchases from federal funds will be reviewed for allowability of costs in accordance with Subpart E – Cost Principles of Title 2 CFR 200 (Uniform Guidance) and the specific terms and conditions of the federal award prior to authorization and payment. This includes ensuring that procurements made with federal funds adhere to applicable federal procurement standards (e.g., 2 CFR 200.317–200.327).

Unauthorized Purchases and Personal Liability

• Any employee who commits KSU to expenditures without proper authorization through established purchasing procedures (e.g., an approved purchase order or authorized procurement card transaction) may be held personally liable for the expenditure.
• Unauthorized purchases may also subject the employee to disciplinary measures, up to and including termination of employment, along with potential criminal and civil penalties.
• KSU will not be responsible for payment of unauthorized purchases.

Vendor Relations

• The Purchasing Department is the primary point of contact for vendors seeking to do business with KSU.
• KSU is committed to fostering fair, ethical, and professional relationships with all vendors.

Receiving and Payment

• Departments are responsible for inspecting goods upon receipt to ensure they meet specifications and quantities ordered. Any discrepancies must be reported promptly to the Purchasing Department and vendor.
• Payment to vendors will be processed by Accounts Payable upon verification of receipt of goods/services and a valid invoice, referencing an authorized purchase order.

REFERENCES AND RELATED MATERIALS:

Contract Management Policy