Supply Chain Managements wants customers to understand that after-the-fact purchase orders (PO) are a violation of University of California (UC) policy and pose serious risks to the University and individuals involved in the transactions. The UCSF community should follow the proper purchasing process and establish their PO before obtaining goods or services.

After-the-fact POs are used when goods or services are acquired without a valid PO and, subsequently, a PO is created after the services have been rendered or goods delivered. Less than one percent of UCSF transactions occur this way. Even with such a rare occurrence, we’d like to remind you about the importance of following our procurement processes. 

Here are a few issues involving an after-the-fact PO:

1. Violation of Policy: UC’s Business and Finance Bulletin 43 (BFB-BUS-43) policy outlines that after-the-fact POs are unauthorized purchases. These violations are reviewed by procurement staff, internal audit and external auditors and can lead to findings for your department and/or, in the case of federally funded transactions, loss of funding.
2. Personal Consequences: Individuals involved in after-the-fact POs may also be exposed to personal financial risks. UC policy cites unauthorized transactions may require employees to personally pay the associated invoice(s). Though this is rarely enacted, it is within UC policy.
3. Risk to UC: There are several risk-mitigation steps in place at UCSF when you use our standard procurement processes. Typically, these include separation of duties, checks for data safety, reviews for human resources compliance with state laws and union contracts, along with several other tactics that reduce risk. If our standard processes are not followed, it places the University at risk.

To avoid these negative outcomes, please make sure to follow UC's purchasing policy and establish your POs before obtaining goods or services. This ensures that all transactions are properly documented, reviewed, and approved, and that the University and individuals involved are protected.

If you have any questions or concerns about the purchasing process or POs, please do not hesitate to contact the Supply Chain Management Response Team for assistance.