I. DEFINITION
According to the
Attorney General, in Formal Opinion #21 (July 22,
1976), a non-Purchase Bureau transaction is defined as one in which
there is an absence of an identifiable purchase interest of the State
as a consumer of goods and services, which involves the selection of
the supplier and the determination of the price, quantity and quality
of the subject matter of the agreement. In these cases, the Division
of Purchase and Property is not considered to have an involvement in
agency procurement. In such circumstances, according to the Attorney
General's Opinion, "...the statutory law provides for no involvement
of
the Division of Purchase and Property, but instead allows the direct
obligation of State funds by the agency whose appropriated funds a re
to be used."
Departmental administrators
are responsible to ensure that all
employees involved either directly or indirectly in the procurement
and/or fiscal process be cognizant of established procurement and
fiscal procedures prior to entering into any transaction with a vendor
that may result in the commitment of State or federal funds. This
responsibility includes, but is not limited to, directors of
administration, fiscal officers, personnel officers and program
administrators. All agency personnel should avoid informal dealings
with vendors.
Where there is
a question as to the existence of an identifiable
purchase interest, agencies must contact the Division of Purchase and
Property for a final determination prior to making a commitment with
a
vendor. Any individual who enters into a transaction that attempts to
by-pass procurement procedures will be considered to be acting in
violation of the statutes and will be subject to the penalties imposed
by law.
II. LISTING OF
NJCFS EXPENDITURES (NON-MACS-E)
The following
is a list of authorized transactions that will be used
as a basis for determining eligibility for processing through NJCF S.
All other purchase transactions must be entered through the Management
Acquisition and Control System - Enhanced (MACS-E).
A. State Aid.
Distributions to counties, municipalities and
instrumentalities authorized under existing statutes.
NOTE: Processing
third party contracts through the MACS-E Third
Party Contract Module is optional.
B. Grants-in-Aid.
Stipends, tuition aid, scholarships, loans to
students and other similar expenditures that are not payments to
a non-governmental agency for functions carried out on behalf of
a local unit of government and are not included within the category
of State Aid noted in Section II.A above.
C. Drawdown
of Lump Sum Appropriations. Such as those by State
colleges and universities for normal operating expenses incurred
during the fiscal year.
D. Reimbursement
to State Employees. For travel, lodging and
subsistence expenses associated with regular State business,
conventions, conferences, staff training, seminars and for
negotiated contract items.
E. Revenue Refunds.
Including refunds of amounts previously
received in payment of indebtedness to the State. Examples
include refunds refunds of taxes, fees, licenses and fines.
F. Inmate Wages
and Gate Money.
G. Postage.
Includes payments made to the federal government for
purchase of stamps and meter charges. However, payments for
contract messenger service and parcel delivery service must
be in accordance with Purchase Bureau procedures.
H. Claims. Includes
payment for loss of personal property, damage
or injury sustained by employees in performance of duties,
payment to victims of violent crimes and other casualty losses.
I. Legal Advertising.
In accordance with N.J.S.A. 35:1-2.1, whenever
an agency is required to publish resolutions, official
proclamations, or notices in advertising of any kind, including
proposals for bids.
J. Mandatory
Expenses. Includes payments authorized by independent
statutory authority or a court order.
K. Memberships
and Subscriptions. Includes agency memberships and
subscriptions to technical and reference materials, periodicals
and publications pertinent to an agency's activities or programs
up to an amount not exceeding the Direct Purchase Authority (DPA)
limit established by the Purchase Bureau per vendor. Payments
exceeding the DPA limit must be preceded by a Purchase Bureau
Requisition (RP) in accordance with Purchase Bureau procedures.
Payment of a membership for an individual employee is not
permitted except as follows:
Departments
and/or agencies may authorize reimbursement to
Senior Executive Service employees for two professional
memberships up to a maximum amount of $300 per year. Such
memberships must be paid via a Using Agency Vendor Payment
Voucher (U1) or by a Purchasing Card transaction and are
subject to the availability of funds.
L. Petty Cash
Fund Reimbursements. For procedures and guidelines
as to allowable expenditures, refer to Circular Letter 96-08-OMB.
M. Payments
for Services. Payments for third-party providers in
reimbursement for services to private individuals who are
eligible for public assistance or are medically indigent, to
defray the cost thereof.
Items falling
under this category include: payments for hospital
and convalescent care centers, foster care, nursing homes,
payments to doctors and other professionals providing services
for clients of State agencies where the agency itself is neither
the consumer of the service, nor the receiver of direct benefits
associated with such services. This does not include contractual
services for residents or patients of State institutions and
hospitals.
N. Small Construction
Projects. Those construction projects defined
by Circular Letter 96-12-GSA as not requiring the control and
approval of the Office of Design and Construction (ODC), formerly
the Division of Building and Construction (DBC). This dollar
threshold is revised by the Director of the Division of Purchase
and Property each odd-numbered year effective July 1, in accordance
with the New Jersey Statutes Annotated 52:34-7.1.
III. STAFF TRAINING
A. Other than
State-Sponsored Training Programs: Charges for all
regularly scheduled, formal residential or non-residential
training functions conducted for State employees, which is
sponsored and presented by a non-State organization at hotel,
motel, convention/training center, residential facility or
educational institution or facility. In these situations,
the employment of trainers or consultants is the responsibility
of the sponsor organization. The cost of the training charged
by the sponsor is usually a registration fee to be paid by the
attendee.
Payment may
be made for reimbursement to an employee for any
of the expenses enumerated in II.D above, and for payments on
behalf of an employee up to an amount not exceeding the Direct
Purchase Authority. Payment exceeding the DPA limit must be
in accordance with Purchase Bureau procedures.
B. State-Sponsored
Training Programs: Authorized programs, seminars
or conferences, whether for the agency's own employees or for
employees of other State or local government agencies, or for any
combination thereof, all expenditures for the rental of facilities,
provision of meals or other related expenses must comply with
the existing purchasing regulations. Employment of trainers
or consultants is subject to provisions of Circular Letter
98-14-OMB/DPP/OTS "Professional Services: Review, Control,
Monitoring and Extensions."
For any variations
of staff training that do not fall clearly within
the definitions of A or B above, it is the responsibility of each
agency to contact the Division of Purchase and Property prior to
making commitments with vendors in order to obtain instructions
for the proper procurement procedures.
IV. ACCOUNTING
CONTROLS
The Director of
the Office of Management and Budget may require that
agencies utilize an accounting encumbrance to obligate funds when
statutory authority or no purchase interest exists and a succession
of payments is to be made on a periodic basis as service is performed.
Further, the Director reserves the right to require an accounting
encumbrance or pre-encumbrance for any other activities when such
procedure is deemed necessary to exercise proper control over an
agency's fiscal activities. Agencies will be notified individually
as these situations develop.
