REVISIONS TO ADMINISTRATIVE PROCEDURES ON PROCUREMENT

APM A8.275, PARAGRAPH 4.h

h.Contract Payment Processing Fiscal Administrators are not authorized to process payment documents: 1)When the contract or purchase order is not completed (except where progress payments are specified in the contract) or is completed after the contract completion date;

h.Contract Payment Processing (continued) 2)For purposes of making an advanced payment or deposit of any kind, unless approved in writing by the Chancellor or his/her designee or Vice President for contracts or purchase orders within departmental purchasing authority or the Vice President for Budget and Finance and Chief Financial Officer for contracts or purchase orders exceeding departmental purchasing authority, with the exception of advance payments for insurance, airfare, conference fees, subscription services, software license fees and software maintenance, organizational membership, accreditation and related fees, cellular telephone fees, security alarm fees, rental and related fees for the lease/use of outside space or facilities, postage meter fees, equipment lease and maintenance

h.Contract Payment Processing (continued) 2) (continued) fees, cable services fees, internet connectivity fees, and costs associated with the publication of articles in scholarly journals. In addition, advance payments or deposits for these exceptions are only allowed when advance payment is expressly stated provided for and/or required in the contract or purchase order; OPRPM Form 154, Request for Advance Payment and/or Deposit (Attachment 275.4) may be used for the purpose of securing approval from the Chancellor, Vice President and/or Vice President for Budget and Finance and Chief Financial Officer for an advance payment or deposit. Chancellors may delegate the authority to approve advance payments to their respective Vice

h.Contract Payment Processing (continued) 2) (continued) Chancellors for Administration. However, no further delegation of such authority is permitted. Any request for an advance payment or deposit for a contract or purchase order exceeding departmental purchasing authority shall include the written concurrence of the Chancellor or his/her designee or Vice President for purposes of its submission to the Vice President for Budget and Finance and Chief Financial Officer for approval.

h.Contract Payment Processing (continued) 3)When the University has not received an invoice or other supporting payment document from the contractor. Under no circumstances should Fiscal Administrators create pro forma invoices on behalf of a contractor to process or expedite payments; or 4)When a contractor requests the University to pay a third party except as provided for in A8.275(4)(o)(Assignment of Payment).

APM A8.265, PARAGRAPH 23

23.Performances a.Occasionally, departments may wish to secure the services of performers, promoters, or performers agents for the presentation of plays, concerts, recitals, or other performances to be held as part of their program operations. Pursuant to Section A8.220, performances, including entertainment, speeches, and cultural and artistic presentations, are exempt from the requirements of Chapter 103D, HRS, and the standard methods of source selection. Nevertheless, when securing services relating to such performances, departments shall adhere to the guidelines set forth below.

23.Performances b.Guidelines 1)When securing such services where a deposit or advance prepayment is required, the following procedures shall apply: a)Departments shall obtain prior written approval of the advance deposit or advance prepayment from their respective Chancellor or his/her designee or Vice President for contracts or purchase orders within departmental purchasing authority or the Vice President for Budget and Finance and Chief Financial Officer for contracts or purchase orders exceeding departmental purchasing authority as provided in Section A8.275.

23.Performances b.Guidelines (continued) 1) (continued) b)For contracts or purchase orders for performances, of $2,500 or more, total deposits or advance prepayments shall not exceed TEN PERCENT (10%) of the total amount or $25,000 whichever is less. This limitation shall not apply to contracts or purchase orders for performances which are less than $2,500. In addition, the contract or purchase order shall require that in the event of cancellation of the performance, all deposits or advance prepayments shall be refunded in full to the University upon cancellation.

23.Performances b.Guidelines (continued) 2) When a performer is represented by a promoter or agent and the University contracts with the promoter or agent on behalf of the performer, the contract shall state that payments by the University shall be made only to the party with whom the University enters into the contract.

23.Performances b.Guidelines (continued) 3) The party with whom the University enters into the contract shall also be required to indemnify the University and maintain liability and event cancellation insurance with appropriate coverage limits as determined by the University Office of Risk Management. The respective Chancellor, Vice President or the Vice President for Budget and Finance and Chief Financial Officer may waive all or part of this insurance requirement, if necessary, when the activity services the best interest of the University and there is an adequate showing of responsibility by the University department and the contractor.