AGENCY: OFFICE OF MANAGEMENT AND BUDGET
EFFECTIVE DATE: 4-4-05
EXPIRATION DATE: INDEFINITE
SUBJECT: ACCOUNTING FOR THE PURCHASE OF GOODS OR SERVICES FROM STATE COLLEGES AND UNIVERSITIES
ATTENTION: CHIEF FISCAL OFFICERS AND BUSINESS MANAGERS
FOR INFORMATION CONTACT: PATRICIA LEAHEY
PHONE: (609) 292-8938
This circular letter establishes the proper procedure to procure and account
for the purchase of goods or services from the state colleges and universities.
There is an expressed preference for the use of other Agencies, such as the
state colleges and universities to provide professional services rather than
outside private vendors. The reason is that where feasible, the direct, actual
use of in-state, professional resources of state entities are always preferable.
However, the preference does not extend to those situations where, while
some professional services may be provided by the state college or university,
the major portion of the services are to be provided by subcontracts to private
companies or independent contractors. In such situations, the State Agency
should contract directly with the state college or university for only those
professional services or student resources as are provided directly and use
advertised or non-advertised competitive procurements to obtain the subcontracted
services. Further, a waiver of advertising is not required if the services
are being directly provided by a state college or university. The use of
entities such as the state colleges and universities does not preclude compliance
with Circular Letter 98-14-OMB/DPP/OTS Professional Services: Review, Control,
Monitoring, and Extensions.
All state colleges and universities are autonomous and operate independently of the New Jersey Comprehensive Financial System (NJCFS) and banking system. Therefore, the state colleges and universities cannot be paid via a using agency payment transaction (UA). The proper procedure to account for the procurement of goods or services is as follows:
- Obligate funds payable to a state college or university by entering an
agency contract order (AO) into NJCFS. The statement "supporting documentation
is on file at the agency" must
be included in the text. A print screen of the AO, text and the formal contract
must be kept on file at the agency for a period of seven years.
- Prepare an Accounting
Bureau payment voucher (A1) to issue payment to the college or university.
Reference the agency contract order indicated in (A) above.
for completion of the above forms are contained in the NJCFS manual, Expenditure
Accounting Section, Chapter 4, pages EXP 4-10 for the AO and EXP 4-35 for
- The autonomous colleges and universities are as follows:
The Richard Stockton College of NJ
Thomas Edison State
University of Medicine and Dentistry of NJ
William Paterson University
|NJ Institute of Technology
Montclair State University
College The College of NJ
NJ City University
Ramapo College of NJ
Charlene M. Holzbaur