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Policy 509.20
 
Policy 509.20
 
== Introduction ==
 
== Introduction ==
1.1 This policy provides guidance related to service contracts entered into by Appalachian State University to insure compliance with all applicable federal and State laws, and University policies.
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1.1 This policy provides guidance related to service contracts entered into by Appalachian State University to ensure compliance with all applicable federal and State laws, and University policies.
  
 
== Scope ==
 
== Scope ==
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== Definitions  ==
 
== Definitions  ==
 
=== Personal and Professional Services ===
 
=== Personal and Professional Services ===
:“Personal and professional services” are those performed by a professional individual on a temporary or occasional basis, including but not limited to those provided by a doctor, dentist, attorney, architect, professional engineer, scientist, or performer of the fine arts and similar professions.
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:"Personal and professional services" are those performed by a professional individual on a temporary or occasional basis, including but not limited to those provided by a doctor, dentist, attorney, architect, professional engineer, scientist, or performer of the fine arts and similar professions.
  
 
=== Consultant Services ===
 
=== Consultant Services ===
:“Consultant services” shall mean work or task(s) performed by state employees or independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel, review, analysis or advice in formulating or implementing improvements in programs or services. This includes, but is not limited to, the organization, planning, directing, control, evaluation and operation of a program, agency or department.
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:"Consultant services" shall mean work or task(s) performed by state employees or independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel, review, analysis or advice in formulating or implementing improvements in programs or services. This includes, but is not limited to, the organization, planning, directing, control, evaluation and operation of a program, agency or department.
  
 
== Policy and Procedure Statements  ==
 
== Policy and Procedure Statements  ==
  
 
=== Contracts ===  
 
=== Contracts ===  
4.1.1 Personal service contracts are not reviewed by the Purchasing Office unless the services are consulting in nature, in which case they will be forwarded for review and approval by the Department of Administration. Care must be taken to ensure that personal service contracts are not used to circumvent personnel procedures and that the appearance of an employer/employee relationship is not created. A checklist is provided to assist with this determination in the event the relationship is not clear.
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4.1.1 Personal service contracts are not reviewed by the Purchasing Office unless the services are consulting in nature. Care must be taken to ensure that personal service contracts are not used to circumvent personnel procedures and that the appearance of an employer/employee relationship is not created. A checklist is provided to assist with this determination in the event the relationship is not clear.
  
4.1.2 It is the policy of Appalachian State University that goods and services will not be purchased from Appalachian State University employees or state employees.  
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4.1.2 It is the policy of Appalachian State University that goods and services will not be purchased from Appalachian State University employees or state employees. Any exception to this policy must be reviewed and approved in advance of services being provided or goods being purchased.
  
4.1.3 For contract amounts less than $10,000.00 aggregate that are not consultative in nature, the responsible individual or project director should complete the Standard Contract form and obtain all approvals in advance of the service being performed. This will assist with verifying that the contractor performing the service can legally be paid for contracted services and is not classified as an Appalachian State University employee.
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4.1.3 The responsible individual or project director should complete a contract using a university approved template and obtain all approvals in advance of the service being performed. This will assist with verifying that the contractor performing the service can legally be paid for contracted services and is not classified as an Appalachian State University employee.
  
4.1.4 The contract shall include the following information:  
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4.1.4 The contract shall include the following information:
#The name, address, and social security number of the person (or tax identification number of the firm) with whom the contract has been made.  
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#The name, address, and social security number of the person (or tax identification number of the firm) with whom the contract has been made.
#The services to be performed by the individual or firm and the dates the services begin and end.  
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#The services to be performed by the individual or firm and the dates the services begin and end.
#The total amount of compensation for the services performed (an all-inclusive amount, unless otherwise approved by the Controller).
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#The total amount of compensation for the services performed (an all-inclusive amount, unless otherwise approved by the Controller or their designee in advance before the contract is signed).
#Signatures by: The person or firm providing services, the chairperson of the department for which the services are performed, the dean of the appropriate college, and the applicable vice chancellor. The vice chancellor, if he or she desires, may delegate his or her signature authority. Such delegation must be in writing and communicated to the Controller.
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#Contracts are not considered valid unless they have been reviewed and signed by the University Controller or that official’s designee.
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4.1.5 Contracts that exceed $10,000.00 must be completed on either the approved ASU Contract for Personal Services or the ASU Contract for Professional Services long form.
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The contract shall be signed by the applicable Vice Chancellor or Cabinet Member (including the HR Director and Athletics Director), and the person, company or firm providing the services. Signatures should be gathered after all appropriate reviews have been completed.  The Vice Chancellor or Cabinet Member may delegate his or her signature authority on a temporary or permanent basis, however, all such delegations shall be made in writing and delivered to the Office of General Counsel.  
  
4.1.6 Contracts evidenced by a form other than the standard templates provided by the University can also be used provided they are approved by the chancellor or a vice chancellor in advance. An example might be a contract associated with a performer or entertainer.  
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4.1.5 Contracts evidenced by a form other than the standard templates provided by the University can also be used provided they are approved by the chancellor or a vice chancellor in advance. An example might be a contract associated with a performer or entertainer.
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4.1.7 Payment for Services - Contractors paid for services performed will be paid from the Direct Payment form with a copy of the contract attached for each payment. 
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4.1.8 Advance Payments – In general, payments to contractors should not be made in advance.  The project director is responsible for making sure the services are complete and satisfactory before releasing funds to the contractor.
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4.1.6 Payment for Services - Contractors paid for services performed will be paid from the Direct Payment form with a copy of the contract attached for each payment.
  
4.1.9 Exceptions to Policy – With the exception of payments as described in 4.1.8 above, failure by a department to obtain all necessary approvals prior to the commencement of work is deemed non-compliant with university policy.  Non-compliance carries the risk that the payment may be delayed or denied. In cases of non-compliance the following steps are taken to request payment:
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4.1.7 Advance Payments - In general, payments to contractors should not be made in advance. The project director is responsible for making sure the services are complete and satisfactory before releasing funds to the contractor.
  
4.1.10 In addition to submitting the Direct Payment Form with a copy of the contract attached, a memo is written by the person authorizing the commencement of work explaining why ASU policy was not followed, and lists steps to be taken to make sure policies are followed in the future. This memo is acknowledged by the vice chancellor or other senior administrator.
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4.1.8 Exceptions to Policy - With the exception of payments as described in 4.1.7 above, failure by a department to obtain all necessary approvals prior to the commencement of work is deemed non-compliant with university policy. Non-compliance carries the risk that the payment may be delayed or denied. In cases of non-compliance the following steps are taken to request payment: In addition to submitting the Direct Payment Form with a copy of the contract attached, a memo is written by the person authorizing the commencement of work explaining why policy was not followed, and lists steps to be taken to make sure policies are followed in the future. This memo shall be acknowledged by the Vice Chancellor or other Cabinet Member responsible for the Department or Unit that is supplying the memo.
  
 
== Additional References ==
 
== Additional References ==
  
 
== Authority ==
 
== Authority ==
Internal Revenue Code, 26 U.S.C. 1, et seq.
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:Internal Revenue Code, 26 U.S.C. 1, et seq.
  
 
== Contact Information ==
 
== Contact Information ==
Materials Management 828-262-2080 or Controller’s Office 828-262-2110
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:Office of General Counsel - 828-262-2751
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:Controller’s Office - 828-262-2110
  
== Effective Date ==
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== Original Effective Date ==
 +
:February 20, 2012
  
 
== Revision Dates ==
 
== Revision Dates ==
February 20, 2012
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:May 25, 2016
 
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[[Category:Contents]]
 
[[Category:Contents]]
 
[[Category:Business Operations]]
 
[[Category:Business Operations]]
 
[[Category:Purchasing]]
 
[[Category:Purchasing]]

Latest revision as of 17:33, 3 August 2016

Policy 509.20

1 Introduction

1.1 This policy provides guidance related to service contracts entered into by Appalachian State University to ensure compliance with all applicable federal and State laws, and University policies.

2 Scope

2.1 This policy applies to all faculty and staff.

3 Definitions

3.1 Personal and Professional Services

"Personal and professional services" are those performed by a professional individual on a temporary or occasional basis, including but not limited to those provided by a doctor, dentist, attorney, architect, professional engineer, scientist, or performer of the fine arts and similar professions.

3.2 Consultant Services

"Consultant services" shall mean work or task(s) performed by state employees or independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel, review, analysis or advice in formulating or implementing improvements in programs or services. This includes, but is not limited to, the organization, planning, directing, control, evaluation and operation of a program, agency or department.

4 Policy and Procedure Statements

4.1 Contracts

4.1.1 Personal service contracts are not reviewed by the Purchasing Office unless the services are consulting in nature. Care must be taken to ensure that personal service contracts are not used to circumvent personnel procedures and that the appearance of an employer/employee relationship is not created. A checklist is provided to assist with this determination in the event the relationship is not clear.

4.1.2 It is the policy of Appalachian State University that goods and services will not be purchased from Appalachian State University employees or state employees. Any exception to this policy must be reviewed and approved in advance of services being provided or goods being purchased.

4.1.3 The responsible individual or project director should complete a contract using a university approved template and obtain all approvals in advance of the service being performed. This will assist with verifying that the contractor performing the service can legally be paid for contracted services and is not classified as an Appalachian State University employee.

4.1.4 The contract shall include the following information:

  1. The name, address, and social security number of the person (or tax identification number of the firm) with whom the contract has been made.
  2. The services to be performed by the individual or firm and the dates the services begin and end.
  3. The total amount of compensation for the services performed (an all-inclusive amount, unless otherwise approved by the Controller or their designee in advance before the contract is signed).

The contract shall be signed by the applicable Vice Chancellor or Cabinet Member (including the HR Director and Athletics Director), and the person, company or firm providing the services. Signatures should be gathered after all appropriate reviews have been completed. The Vice Chancellor or Cabinet Member may delegate his or her signature authority on a temporary or permanent basis, however, all such delegations shall be made in writing and delivered to the Office of General Counsel.

4.1.5 Contracts evidenced by a form other than the standard templates provided by the University can also be used provided they are approved by the chancellor or a vice chancellor in advance. An example might be a contract associated with a performer or entertainer.

4.1.6 Payment for Services - Contractors paid for services performed will be paid from the Direct Payment form with a copy of the contract attached for each payment.

4.1.7 Advance Payments - In general, payments to contractors should not be made in advance. The project director is responsible for making sure the services are complete and satisfactory before releasing funds to the contractor.

4.1.8 Exceptions to Policy - With the exception of payments as described in 4.1.7 above, failure by a department to obtain all necessary approvals prior to the commencement of work is deemed non-compliant with university policy. Non-compliance carries the risk that the payment may be delayed or denied. In cases of non-compliance the following steps are taken to request payment: In addition to submitting the Direct Payment Form with a copy of the contract attached, a memo is written by the person authorizing the commencement of work explaining why policy was not followed, and lists steps to be taken to make sure policies are followed in the future. This memo shall be acknowledged by the Vice Chancellor or other Cabinet Member responsible for the Department or Unit that is supplying the memo.

5 Additional References

6 Authority

Internal Revenue Code, 26 U.S.C. 1, et seq.

7 Contact Information

Office of General Counsel - 828-262-2751
Controller’s Office - 828-262-2110

8 Original Effective Date

February 20, 2012

9 Revision Dates

May 25, 2016