This procedure was developed to allow university departments to create agreements for annual procurements of honorariums (not to exceed $100 per individual) and consultant/speaker engagements (not to exceed $350 per transaction). When quotes or invoices
are received for these services throughout the academic year, a release (purchase order) is written against the departmental (Outline) agreement. The implementation of an outline agreement for these services will minimize or eliminate the possibility
of “After the Fact” transactions for these services and expedite the payment for the services.
The dean or department chair enters a requisition for $1.00 to authorize Procurement Services to create an outline agreement for the services for a department. Procurement Services will create the outline agreement and forward to the dean or department
chair a copy of the contract for the academic year. Included in the requisition is the fund center that will be charged when expenses are incurred. The contract number on this agreement will be referenced on requisitions entered for quotes or invoices
received for the services.
When the department receives an honorarium or consultant/speaker quote or invoice for services rendered or to be rendered, a requisition will be entered for the date and dollar amount of the service. (Department budgets are encumbered at this point in
time.) Procurement Services will write a release (purchase order) against the agreement created by the department for the academic year. The transaction will be handled in a normal manner without delays, even if the purchase order is entered after
the service has been received. (The transaction was approved by the department’s outline agreement for the service at the beginning of the academic year. The transaction complies with the word and spirit of Commonwealth law.)
Note: Consultant/speaker engagements will still require the
information entered in the requisition as outlined in the Consultant/Speaker
amount of Honorariums is limited by the PASSHE Expenditure of Public Funds
Guidelines, standards, and limits issued on August 31, 2010:
5. Gifts and Awards to Students and Others.
b . Universities may use public funds to purchase noncash gifts and
awards of no greater than $100 to recognize outstanding service or achievement
by a student, volunteer, alumnus, community member, official visitor, or other
friend of the university, or as an honorarium for an unpaid speaker or
performer, or as part of a gift exchange with an international college or
university. Exceptions to this limit may be approved by the Chancellor upon
request with appropriate documentation.