1.0   Purpose and Scope

1.1   Purpose

The purpose of this procedure is to define the mandatory requirements and processes relating to establishment and maintenance of Supplier records in The University of Queensland’s (UQ’s) Supplier Master File (SMF).

1.2   Scope

This procedure applies to the management of all Suppliers that UQ has purchased from or will purchase from, as well as Non-procurement Suppliers.  

These procedures apply to all UQ staff, students, contractors, and others who are responsible for engaging Suppliers on behalf of UQ.

2.0   Process and Key Controls

2.1   Supplier Creation Process

Where the purchase of goods and services will be generated via Purchase Orders, a record for the new Supplier must be established before a requisition/purchase order can be raised in UniFi and approved and before the receipt of the goods/services.

Before submitting a Request to Add or Amend an Australian Supplier or Request to Add or Amend a Foreign Supplier, as applicable, (Supplier Application), the Requestor must review the UQ Suppliers List to ensure the Supplier does not already exist in the SMF.                 

To request the creation of a Supplier record, the Requestor must send a completed Supplier Application to Enterprise Procurement.

Where the Supplier proposed to be added to the SMF is being engaged for the supply of consultancy or contractor services, the Requestor must supply a completed and approved Contractor Employment Taxes Checklist along with the Supplier Application.

A request to create a new Supplier record must be reviewed and approved by the Head of Organisational Unit. The approver should be satisfied that the request is compliant with this Procedure and that the contract, agreement or transaction proposed with the Supplier has been entered into with due regard to sound commercial principles and compliance with applicable Procurement Policy and Procedure requirements.

Enterprise Procurement will check the request and after being satisfied of all relevant details, enter the Supplier record into the SMF and advise the Requestor.

A completed Supplier application will be actioned by Enterprise Procurement within five business days of receipt of the application.

UQ Staff members or related entities as Suppliers

With respect to applications for establishing a UQ staff member or a company of which a staff member holds direct or indirect interest in the SMF, the requestor must:

• Provide explanation of the extenuating circumstances.
• Provide justification for the reason/s that the UQ staff member cannot be paid via the University’s payroll.
• Declare the Conflict of Interest and ensure that an approved conflict management plan is in place as per PPL 1.50.01 Code of Conduct.
• Comply with applicable tax requirements.
• Comply with all other associated UQ policies and procedures.

Applications to add a UQ staff member or related entity as Supplier in the SMF will be reviewed on their individual merit and circumstance. Completion of the Supplier Application in no way guarantees acceptance.

2.2   Amendment of a Supplier Record in the Supplier Master File

The Supplier or Requestor may contact Enterprise Procurement requesting an amendment to the Supplier record in the SMF. The following supporting documents are required.

• An approved Supplier Application; OR
• A letter on the Supplier’s official company letterhead that references the bank details or other details to be amended; OR
• A Quotation or Tax Invoice bearing the details of the Supplier to be amended.

Enterprise Procurement will review the documentation to ensure it is valid and carry out other checks as may be deemed necessary before actioning the change in the SMF.

Enterprise Procurement may initiate amendments to a Supplier record in the SMF based on changes to Supplier details that Enterprise Procurement is made aware of through any means, regardless of whether a Supplier Application is submitted. This may include details on a Supplier Invoice and changes to Supplier details on the Australian Business Register.

Enterprise Procurement may ask for such other documentation as may be required to provide evidence of the validity of the requested / proposed amendment to the Supplier record and may carry out other checks as may be deemed necessary before actioning the change in the SMF.

Amendment(s) to a Supplier record in the SMF are subject to a formal independent review to confirm validity and correctness. Until validity and correctness of the Supplier record is confirmed, Enterprise Procurement may effect suitable changes to the Supplier record in UniFi to block the Supplier from new Purchase Order activity, new Invoice entry, and/or payments.

2.3   Activation of an inactive Supplier record in the SMF

For reactivation of an inactive Supplier record in the SMF, the process for Supplier creation as outlined in Section 2.1 is to be followed, unless otherwise advised by Enterprise Procurement.

3.0   Key Requirements

3.1   Proper sourcing process

Suppliers, other than Non-procurement Suppliers, can only be added to the SMF following an appropriate sourcing process that is consistent with the UQ Procurement Policy and Procedures and compliant with the UQ Conflict of Interest Policy.

3.2   Standard payment terms for Suppliers

UQ's standard payment terms are 30 days net – i.e., the Supplier will be paid thirty days from the date of a correctly rendered invoice.

The Associate Director, Enterprise Procurement may authorise a variation to the standard payment terms applicable to a particular Supplier. In authorising such a variation, the Associate Director, Enterprise Procurement may request any supporting documents or information that may assist with the assessment of the request for variation to standard payment terms and may seek endorsement from the Manager, Accounts Payable.

3.3   Activation of 'Non-PO' Supplier flag for a Supplier on the SMF

Enterprise Procurement will activate the ‘Non-PO’ Supplier flag for a particular Supplier based on written authorisation from the Manager, Accounts Payable.

3.4   Credit application

If a Supplier requests that UQ complete a credit application form, the Requestor should inform the Supplier that UQ does not complete such credit applications and that UQ’s standard payment terms are 30 days net.

All other issues in relation to Supplier credit application forms should be escalated to Enterprise Procurement to be addressed.

4.0   Roles, Responsibilities and Accountabilities

5.0   Monitoring, Review and Assurance

Enterprise Procurement will review the data integrity and quality of the SMF including all changes to the SMF at monthly intervals.

Enterprise Procurement will deactivate a Supplier record in the SMF if there is no transaction against the Supplier record for the past 18 months.

Enterprise Procurement will deactivate a Supplier record if it is identified as a duplicate record after investigation.

Enterprise Procurement will identify and update, as it deems fit, any Supplier records in the SMF registered with an invalid or inactive ABN which may in some cases require submission and revalidation of relevant details by the Supplier.

Enterprise Procurement operational staff will escalate any serious irregularities noted in the SMF and/or any suspicious requests for Supplier record creation and/or amendment to the Associate Director, Enterprise Procurement for review. The Associate Director, Enterprise Procurement, will investigate the matter as appropriate and refer to the UQ Integrity and Investigations Unit where fraud or other serious irregularities are suspected.

6.0   Recording and Reporting

Enterprise Procurement will retain records of Suppliers including documents in relation to the creation/amendment/deactivation/reactivation of Supplier records as prescribed in this Procedure in a UQ approved record keeping system and in accordance with UQ’s Records Management Policy and guidelines.

7.0   Appendix

7.1   Apendix 1 - Relevant policies and procedures

Procurement Policy

Procurement Procedure

Probity and Integrity in Procurement Procedures

Records Management Policy   

UQ Cyber Security Policy

7.2   Appendix 2 - Definitions

ABN means Australian Business Number, a unique identifier issued by the Australian Business Register.

Contractor Employment Taxes Checklist means the Checklist developed by UQ to assess whether it is appropriate to engage a proposed resource as a supplier or an employee and to determine whether UQ has an obligation for payroll tax or superannuation on the payments to genuine contractors.

Credit application means a request for extension of credit.

Domestic Supplier means an Australian entity with Australian bank details.

Foreign Supplier means a Supplier who is not a domestic Supplier.

‘Non-PO’ Supplier flag means a custom field in the SMF that may be activated for a Supplier record. Once the flag is activated, any Invoices received from the Supplier follow a pre-determined Unifi workflow.

Non-procurement Supplier means individuals and/or entities (including UQ Controlled Entities) which are not otherwise regarded as suppliers of goods and services to UQ but are required to be entered into the SMF to facilitate payments.

Requestor means a UQ staff member who requests the creation/reactivation/inactivation of a Supplier in UniFi or amendment to an existing Supplier record in UniFi.

Supplier means a party that supplies goods or services to UQ.

Supplier Master File (SMF) means UQ's official record of all approved Suppliers which is utilised to facilitate purchases from and payments to Suppliers.

UniFi means UQs financial system used to process and record financial data.