General Purchasing Guidelines. February Financial Services Page 1 of 27

February 2013 Financial Services Page 1 of 27

Financial Services GENERAL PURCHASING GUIDELINES Responsible Position: Manager, Financial Operations Approved by: Chief Financial Officer Table of Contents OVERVIEW...5 PURPOSE... 5 COVERAGE... 5 GUIDELINE OBJECTIVES...6 VALUE FOR MONEY... 6 PROBITY AND ACCOUNTABILITY... 6 KEY CONSIDERATIONS...7 RESPONSIBILITIES... 7 FUNDING AND APPROVAL... 7 DETERMINING UNIVERSITY EXPENDITURE... 7 PURCHASING AND SUSTAINABILITY... 7 PLANT, EQUIPMENT AND CHEMICAL PURCHASES... 7 AUSTRALIAN BUSINESS NUMBER (ABN)... 8 THE PURCHASING PROCESS: PURCHASING METHODS...9 METHODS OF PURCHASE: PETTY CASH, BUSINESS CARDS AND PURCHASE ORDERS... 9 PURCHASE SPECIFICATIONS... 9 QUOTATIONS... 9 PETTY CASH PURCHASES... 10 PURCHASES USING PETTY CASH... 10 AUTHORISATION OF PETTY CASH... 10 PETTY CASH PURCHASES THEN REIMBURSED FROM PETTY CASH FLOAT... 10 ADVANCES FROM PETTY CASH FLOAT FOLLOWED BY PURCHASE AND ACQUITTAL... 11 BUSINESS CARD PURCHASES... 11 Financial Services Page 2 of 27

PURCHASE ORDERS... 11 RAISING PURCHASE ORDERS... 11 APPROVAL OF PURCHASE ORDERS... 11 PURCHASES FOR NEW SUPPLIERS... 11 SUPPLIER PURCHASING AND INVOICING ADDRESS... 11 CODING INVOICES... 12 PURCHASE DOCUMENTATION... 12 RETENTION OF DOCUMENTATION... 12 DOCUMENTATION REQUIRED... 12 OTHER DOCUMENTATION... 12 MISSING DOCUMENTATION... 12 PURCHASES WITH SPECIFIC PROVISIONS... 13 PURCHASES WITH SPECIFIC POLICES AND GUIDELINES... 13 PREFERRED SUPPLIERS... 14 CONTRACTS... 14 CONTRACTS AND THE UNIVERSITY LEGAL OFFICE... 14 ENGAGEMENT OF CONTRACTORS... 14 INTERNET PURCHASES... 15 FOREIGN CURRENCY TRANSACTIONS... 16 HEDGING... 16 CABCHARGE... 16 ISSUE OF CABCHARGE ACCOUNTS... 16 USE OF CABCHARGE... 16 SECURITY... 16 RECONCILIATION AND PAYMENT OF CABCHARGE INVOICES... 16 MISCELLANEOUS PURCHASING INFORMATION... 17 FRINGE BENEFITS TAX (FBT)... 17 PURCHASING DISPUTES... 17 CATEGORIES OF MISCELLANEOUS EXPENDITURE... 17 GOODS OR SERVICES PROVIDED BY EMPLOYEES... 18 GOODS AND/OR SERVICES PROVIDED BY EMPLOYEES... 18 GOODS AND/OR SERVICES PROVIDED BY ASSOCIATES OR RELATIVES OF EMPLOYEES... 18 FURTHER INFORMATION ON CONFLICTS OF INTEREST... 18 RELEVANT POLICY DOCUMENT... 19 OTHER RELATED POLICY AND PRACTICE DOCUMENTS... 19 POLICIES... 19 PROCEDURES AND GUIDES... 19 FORMS... 19 LINKS... 19 ABOUT THIS DOCUMENT... 20 Financial Services Page 3 of 27

APPENDIX A: UNIVERSITY TERMS AND CONDITIONS... 21 UNIVERSITY TERMS AND CONDITIONS... 21 TERMS AND CONDITIONS SUMMARISED ON PURCHASE ORDER... 23 APPENDIX B: MISCELLANEOUS EXPENDITURE TABLE... 24 Financial Services Page 4 of 27

Overview Purpose This guideline covers the general provisions for purchasing for the University. All expenditure must be for University business purposes. This guideline needs to be considered in conjunction with other University policies, procedures and guidelines. All references to monetary amounts in this guideline are on a GST inclusive basis. Coverage This guideline relates to the acquisition of all goods or services, either purchased or leased, from suppliers external to the University. This guideline only provides information regarding purchasing. Please refer to the Finance Training Room for training on how to raise purchase orders in system. The General Purchasing Guideline applies to all University budget centres including Institutes, Centres, Divisions and the Foundation. Exclusions This guideline excludes information regarding: Corporate Credit Cards refer to Business Card Guidelines Payment Processing refer to Invoice Payment Guidelines Petty Cash maintenance and custody refer to Petty Cash Custodian Guidelines Tendering refer to Tendering Guidelines Hospitality refer to Hospitality Guidelines Travel refer to Travel Guidelines Internal Service Charges i.e. the supply of services from within the University, these purchases are covered under guideline Internal Service Charges. Financial Services Page 5 of 27

Guideline Objectives Value for Money The University must seek to obtain value for money in purchasing goods and services. The concept of Value for Money is not restricted to price alone. The value for money assessment must include consideration of: non cost factors such as sustainability, fitness for purpose, quality, service and support; cost related factors including whole of life costs, and transactions costs associated with acquisition, use, holding, maintenance and disposal; and the University s preference to support Tasmanian businesses where the purchase requirements such as price, quality and product support are equivalent to alternative suppliers. Probity and Accountability The University must conduct its purchasing activities with probity and accountability. All University staff should observe the following ethical standards: All business should be conducted in the best interests of the University, avoiding any situation which may impinge, or might be deemed to impinge, on impartiality. University funds will be spent efficiently and effectively and in accordance with University guidelines, procedures and policies. Purchase without favour or prejudice and maximise value in all transactions. Maintain confidentiality in all dealings. Decline gifts, gratuities, or any other benefits which may influence, or might be deemed to influence equity and impartiality. Employees (or related businesses) must not provide goods or services to the University in any capacity, outside of those provided through their employment relationship. Refer to the relevant section of the guideline for further details. Financial Services Page 6 of 27

Key Considerations Responsibilities All staff involved in purchases are responsible for ensuring they adhere to the policy and guidelines regarding purchasing. Heads of Budget centre are responsible for monitoring purchasing within their budget centre. Funding and Approval Staff must not enter into a commitment for the supply of goods or the performance of services unless funds are available and the appropriate approval has been obtained as set out in University delegations. All staff approving purchases should: ensure they are familiar with the restrictions outlined in the delegations documentation; ensure that the appropriate account codes have been used; and ensure that funds are available for the commitment or expenditure. In some instances staff may be required to report on expenditure over a certain limit. Refer to the delegations documentation for further details. Determining University Expenditure Financial Services provides guidelines for the treatment of expenditure where the appropriateness is unclear. All staff involved in purchasing must be aware of these guidelines and adhere to the individual provisions. Any exceptions to the provisions regarding miscellaneous expenditure must be approved by the Chief Financial Officer. Refer to Appendix B, the Miscellaneous Expenditure Table for guidelines on individual expenditure categories. Purchasing and Sustainability The University is committed to sustainable purchasing practices and it is essential that purchasing staff make themselves aware of University policy and guidelines in this regards, prior to making any purchasing arrangements. More information is available on the sustainability website. Plant, Equipment and Chemical Purchases Prior to the purchase of equipment and/or chemicals staff are advised that the University has in place policy and procedures to ensure Australian Standards are met. Financial Services Page 7 of 27

Staff purchasing any equipment or chemical purchases should consult the Work Health and Safety website for details of the policy and pre-purchasing checklist. Australian Business Number (ABN) The University will only engage a supplier of goods or services if that supplier has an Australian Business Number ( ABN ). The only exceptions will be if: i. The supplier is not carrying on an enterprise in Australia. This exception will apply to the majority of the University s imports (provided the supplier is not carrying on business through a permanent establishment in Australia). It will also apply where University staff travel overseas and make payments for various expenses (such as accommodation) to overseas suppliers. ii. The supplier is an individual and has completed a declaration stating that the supply of goods or services is made in the course of an activity done as a private recreational pursuit or hobby, or is wholly of a private or domestic nature. This exception will have limited application but may include examples such as: A painting is purchased for display on University premises from someone who paints as a hobby; A budget centre pays rent for a shack in the central highlands whilst research is being undertaken. The rent is paid to an individual who does not normally rent out the premises (i.e. the shack is for private purposes). iii. The payment is not for the provision of goods or services (i.e. there is no supply). Examples of this type of payment include: Scholarship payments to students; Prize payments to students; Refunds of HECS to students. Except in the above circumstances, should a supplier not provide an ABN, the University is required to withhold tax from the payment to the supplier at the highest marginal rate. The Australian Government has an ABN Lookup where ABNs can be verified. Financial Services Page 8 of 27

The Purchasing Process: Purchasing Methods Methods of Purchase: Petty Cash, Business Cards and Purchase Orders University Business Cards A University business card is the preferred method for purchases less than $5,000. Petty Cash Petty cash may be used where a business card cannot be used for purchases under $200, however a University business card is the preferred method of purchase. Purchase Orders A purchase order should be raised for purchase orders over $5,000. Purchase Specifications Where no purchase order is raised, the purchaser must take care to ensure clear purchase specifications are provided to the supplier. Specifications include but are not limited to goods, price, delivery and payment terms. Quotations All quotations must be attached to the purchase order documentation. Refer to the Finance Training Room for details of how to attach documents in TechOne. Quotation requirements vary depending on the amount of the purchase as detailed below. Even where there is no requirement for quotations to be sought, it is strongly recommended that they be sought in order that guideline objectives are met regarding value for money. Purchases under $10,000 Budget centres are not required to obtain quotations for purchases under $10,000. Purchases $10,000-$99,999 Budget centres should obtain at least two written quotations for purchases under $100,000. If it is deemed necessary, a budget centre may opt to go to tender. The only exceptions to the above will be if the purchase meets one of the following criteria: there is only a single supplier; or the purchase is to match existing equipment; or internal supply by another University budget centre. Financial Services Page 9 of 27

If one of these exceptions applies, the budget centre should maintain appropriate supporting documentation as evidence, for a period of seven years. Purchases $100,000 and over The University must follow the formal tendering procedure, for purchases of $100,000 or more. Refer to Tendering Guidelines for details. Petty Cash Purchases Purchases using Petty Cash The University operates a petty cash system to effect purchases less than $200 where a University business card cannot be used. Petty cash floats are maintained centrally by the University Cashiers, and by petty cash custodians within some budget centres. The floats maintained are accessible by all budget centres to effect petty cash purchases. Refer to the separate Petty Cash Custodian Guidelines further information on petty cash, such as information on maintaining the petty cash floats. Authorisation of Petty Cash Petty cash claims must be approved by an authorised financial delegate. In order to protect themselves, petty cash custodians should ensure that they not approve a reimbursement to themselves and that someone else in involved in such transactions. Petty Cash Purchases then Reimbursed from Petty Cash float The staff member may make the purchase then seek reimbursement from the petty cash float as follows: complete the details of the purchase on a Petty Cash Voucher and attach appropriate supporting documentation; obtain authorisation from an authorised financial delegate on the Petty Cash Voucher; give the Petty Cash Voucher to the petty cash custodian with the supporting documentation; the reimbursement will be paid from the petty cash float; the staff member signs the acknowledgement of the reimbursement on the Petty Cash Voucher. Financial Services Page 10 of 27

Advances from Petty Cash Float followed by Purchase and Acquittal Where the staff member requires an advance of petty cash to make a purchase, the following steps should be undertaken: complete a Petty Cash Voucher; obtain authorisation from an authorised financial delegate on the Petty Cash Voucher; petty cash custodian advances the staff member that amount of cash; after the purchase has been made, the missing details are completed on the petty cash voucher, with appropriate supporting documentation for the correct amount; any change is returned to the petty cash custodian. Business Card Purchases Refer to separate Business Card Guidelines for the rules regarding use and administration of University business cards. Purchase Orders Raising Purchase Orders All purchase orders must be raised through TechOne Financials. All suppliers must conform to University Terms and Conditions, in particular that the University pays on 30 day terms. The University should not engage the services or purchase goods from suppliers who do not agree to these terms. Refer to Appendix A for a list of the terms as they appear on purchase orders. Approval of Purchase Orders Staff must not split transactions on a single item to reduce the authorisation limit required. Purchases for New Suppliers If a purchase order requires a new supplier to be created, staff should complete the Supplier/Customer Creation Request if the supplier is an Australian organisation or individual. If the supplier is a foreign entity, the purchaser should first contact Financial Services. Supplier Purchasing and Invoicing Address Staff should take care that when specifying the delivery address for goods, that the invoice address held by the supplier is not changed, and invoices still go direct to Financial Services. Financial Services Page 11 of 27

Coding Invoices Budget centres are responsible for ensuring the correct dissections are used. Refer to the Chart of Accounts for details. Purchase Documentation Retention of Documentation For audit and taxation purposes, the University is required to retain all appropriate documentation, such as tax invoices, supporting all purchases of goods and services. In most cases, this documentation should be in the form of a tax invoice. This documentation must be held for a minimum of seven years. Documentation Required Purchases including GST: All purchases including GST should be supported by a tax invoice. This document enables the University to claim a refund of any GST paid. Refer to GST Guidelines which details the content and requirements for a tax invoice. If a tax invoice is not obtained a refund of GST will not be able to be claimed and the budget centre will be charged with the GST. The only exception is where the GST-inclusive price is $82.50 or less, in which case an invoice should be obtained and a credit will be able to be claimed for any GST paid. It is important in this case that if a tax invoice is not supplied, some form of valid invoice documentation must be provided to support the claim. Purchases not including GST: If the purchase does not include GST in the price, an invoice should be obtained. Other Documentation Where University policy requires additional supporting documentation, such as Work Health and Safety information, this must be supplied. Missing Documentation If supporting documentation has been misplaced or not received, a budget centre should arrange to obtain a duplicate copy from the supplier. In the case of business card or people payments, if a duplicate copy cannot be obtained, a Missing Supporting Documentation Declaration must be completed for audit purposes. Financial Services Page 12 of 27

The declaration should be authorised by the Head of Budget Centre where the total expenditure exceeds $100. A refund of GST will not be able to be claimed and the budget centre will be charged with the additional GST cost. Purchases with Specific Provisions Purchases with Specific Polices and Guidelines Certain purchases are subject to additional policies, procedures and/or guidelines. The following list outlines some of the major categories Sustainable Purchasing Practices The University is committed to principles of sustainable procurement and purchasers should refer to the information available through the sustainability website. Building and Property Works Purchase orders and/or contracts for the provision of minor or major works to property owned or leased by the University are only to be issued by Commercial Services and Development. Fuel Purchases Refer to Commercial Services and Development for details. Hospitality Refer to the Hospitality Guidelines for any purchases related to hospitality provided by the University. IT Hardware and Software IT purchases should be referred to Information Technology Resources for advice. Leases and Financial Arrangements Finance arrangements including borrowings and leases can only be entered into with the written approval of the Chief Financial Officer. Mobile Phones University mobile phones must be purchased in accordance with procedures managed by Information Technology Resources. Photocopiers Uniprint must be contacted prior to the purchase or lease of photocopiers. Financial Services Page 13 of 27

Travel Expenditure Refer to Travel Guidelines for any purchasing related to travel. This includes airfares, hire cars, accommodation and travel insurance matters. Preferred Suppliers The following suppliers are preferred suppliers for the University and should be used in preference to other suppliers. Stationery The preferred supplier for office stationery is Corporate Express. Contracts Contracts and the University Legal Office Any purchases that involve a contract must be made with reference to the University delegations documentation, Legal Office information and templates, or in consultation with the Legal Office. In some instances a contract might conflict with purchase order terms. In these cases the University Legal Office should be consulted. Engagement of Contractors Prior to the engagement of services, the Work Health and Safety website should be reviewed to ensure that induction information is satisfactory. Financial Services Page 14 of 27

Internet Purchases Specific guidelines should be followed when purchasing goods or services over the internet, and staff should take all due care to adhere to the following guidelines. Use of University Business Card Purchases over the Internet are only permitted when using a University business card. When purchasing over the Internet, staff are to comply with Business Card Guidelines relating to business card usage. Security The cardholder should ensure that the Internet site is secure and that they are dealing with a reputable and established supplier. The security of the Internet site can be checked by viewing the padlock in the taskbar at bottom of the Web Browser. Never send University business card details by email. Documentation for Internet Purchases Cardholders should print or save all supporting documentation for their purchases made with a business card on the Internet. This documentation will assist the cardholder in disputing a transaction in the event that goods or services are not received. For purchases where GST is included in the price, a tax invoice should be obtained. For all other purchases an invoice or receipt should be obtained. Monitoring Internet Purchases The cardholder should regularly check the BCMS for transactions that have been made over the Internet and ensure that the goods or services are received within a reasonable time frame. If the goods or services are not received the transaction in the BCMS should be coded to Disputed and a Disputed Transaction Declaration form completed. This form is to be immediately forwarded to the Business Card Administrator. Commonwealth Bank guidelines indicate that a transaction should be disputed within one month of the transaction appearing on the Business Card Statement, so disputes must be auctioned immediately to meet bank deadlines. Financial Services Page 15 of 27

Foreign Currency Transactions Hedging Where transactions occur in foreign currency, payments should be made in the foreign currency in order to minimise transaction costs. In order to determine if hedging should occur, Financial Services should be contacted prior to any purchase of $20,000 or more in foreign currency. Where it agreed with the budget centre that hedging is required, Financial Services will arrange for foreign exchange hedging. Cabcharge Issue of Cabcharge Accounts Cabcharge account applications will only be issued with the approval of the relevant head of budget centre. Once approval has been granted, the budget centre must liaise with Financial Services, who will set up the account with Cabcharge. Use of Cabcharge Cabcharge issue e-tickets which are given to staff/students and/or visitors undertaking travel. Each e-ticket has a serial number which can be used to track the use of Cabcharge. Budget centres are advised to keep a register of all e-tickets issued, for reconciliation purposes when the invoice is paid. Cabcharge should only be used by University staff/students and/or visitors on University business. Security E-tickets are held by the budget centre and should be treated with the same level of security as cash or credit cards. Reconciliation and Payment of Cabcharge Invoices Approval for payment of a Cabcharge invoice is through the normal payment methods. All expenditure is to be authorised by an officer other than the person taking the travel. Budget centre staff should reconcile their Cabcharge account at the time of payment, to ensure that there is no unauthorised usage. Financial Services Page 16 of 27

Miscellaneous Purchasing Information Fringe Benefits Tax (FBT) Due to the complexity of FBT information, please refer to the FBT Guidelines for further information. Purchasing Disputes Financial Services will provide assistance, however it is the responsibility of the head of budget centre to resolve any disputes regarding the purchase of goods or services. A copy of all documentation must be kept regarding the dispute, in addition to other relevant purchasing documentation. Refer to Invoice Payment Guidelines for additional information. Categories of Miscellaneous Expenditure Refer to Appendix B for details of how to treat various minor expenditure categories. Refer also to Miscellaneous Payments to Staff Guidelines for details regarding other unusual payments. Financial Services Page 17 of 27

Goods or Services Provided by Employees Goods and/or Services Provided by Employees Goods and services must not be provided to the University by employees, outside those they are contracted to provide through their employment relationship. The key to understanding this is that employees must not engage in purchasing practices that could be perceived as partial or contrary to the interests of the University. As such, employees must not provide goods or services to the University as these situations could create allegations of partiality or a conflict of interest. It is recognised that there may be situations where the situation may need to be discussed. In such situations the Manager, Financial Operations must be contacted to discuss the matter prior to any purchasing process. Goods and/or Services provided by Associates or Relatives of Employees It is recognised that a situation may arise where a close associate or a business that the employee has an interest in, or a relative of the employee may be able to provide goods or services to the University. To avoid conflicts of interest employees with such relationships must not be involved these transactions, and purchases must be made by someone without such an association. Where purchasers are aware of such relationships, they must be particularly careful to demonstrate that value for money is obtained, such as through the provision of sufficient quotations. The Manager, Financial Operations should be contacted if there are any concerns regarding the probity of the transaction. Further information on Conflicts of Interest Note that this guideline only relates specifically to the purchase of goods and/or services from employees, their associates or businesses. Due to the number of potential circumstances staff are advised to discuss the matter with the Manager, Financial Operations if there are any concerns. Staff should also refer to the policy website for further information on disclosure and conflicts of interest. For purchases of a sufficient value, information is also available through the Tendering Guidelines. Financial Services Page 18 of 27

Relevant Policy Document General Purchasing Policy Other Related Policy and Practice Documents Policies Hospitality Policy Tendering Policy Travel Policy Procedures and Guides Business Card Guidelines Chart of Accounts Delegations register FBT Guidelines GST Guidelines Hospitality Guidelines Invoice Payment Guidelines Miscellaneous Staff Payments Guidelines Petty Cash Custodian Guidelines Tendering Guidelines Travel Guidelines Forms Disputed Transaction Declaration Missing Supporting Documentation Declaration Petty Cash Voucher Supplier/Customer Creation Request Links ABN Lookup Finance Training Room Financial Services Page 19 of 27

About this Document Title Date February 2013 Responsible Officer Chief Financial Officer Name John Clements Review Cycle 3 years Status of version Version 1.1 Author David Nolan Financial Services Page 20 of 27

Appendix A: University Terms and Conditions University Terms and Conditions The University of Tasmania Purchase Order Terms and Conditions ( Terms and Conditions ) 1. Agreement 1.1 These Terms and Conditions apply to the order for goods ( Goods ) or services ( Services ) placed by the University of Tasmania ( University ) as described in the purchase order ( Purchase Order ). 1.2 These Terms and Conditions and any terms and conditions in the Purchase Order and/or any attachment expressly incorporated in writing, will form a binding agreement between the parties ( Agreement ). 1.3 No other terms, conditions or amendments apply to the Purchase Order or are binding upon the University except where the University agrees in writing. 1.4 Forwarding the Purchase Order to the Supplier constitutes an offer by the University to purchase the Goods and/or Services on the terms and conditions contained in the Purchase Order and these Terms and Conditions. Notification of acceptance or delivery of the Goods and/or Services by the Supplier as described in the Purchase Order constitutes and acceptance of these Terms and Conditions. 1.5 The Supplier must notify the University as soon as possible if it does not accept the Terms and Conditions of the Purchase Order. Any variation to the Purchase Order, must be approved in writing by University prior to delivery. 1.6 Unless the contrary intention appears, in this Agreement: a) references to the singular includes the plural and vice versa; and b) references to person or individuals include that person s successors, administrators, executors and assigns and a firm, a body corporate, a partnership, a joint venture, an unincorporated body or association, or any government agency; and c) words of inclusion are not words of limitation. 2. Price and Payment 2.1 The Purchase Order is to include the price of the Goods and/or Services. The University agrees to pay to the Supplier the price specified in the Purchase Order in consideration for the provision of the Goods and/or Services specified. 2.2 Where a Purchase Order does not contain the price, the price is to be agreed between the parties prior to the delivery of the Goods and/or Services. 2.3 Any adjustment to the price shown on the purchase order is to be agreed to by the University prior to delivery of the Goods and/or Services. 2.4 Subject to any other arrangement in writing, the University agrees to pay the Supplier within 30 days of receipt and acceptance of an invoice by the University. 2.5 The Price shown on the Purchase Order is to include GST. It is the responsibility of the Supplier to determine the GST status of the Goods or Services. 3. Delivery 3.1 The Supplier must deliver the Goods and/or Services at the time, date and place specified on the Purchase Order. Failure to so will constitute a breach of an essential term of this Agreement. 3.2 The Supplier must ensure that any Goods are suitably packed to avoid damage in transit or storage. 3.3 Where special delivery or unloading requirements exist in relation to Goods, the Supplier is to make that fact known to the University at the time of acceptance of the Purchase Order. Financial Services Page 21 of 27

3.4 At the time of delivery, the Supplier is to provide the University with documentation stating the order number, quantity and description of each item delivered. The signing of such documentation by a University employee will constitute acknowledgement of delivery but not acceptance of the terms and conditions contained on it. 3.5 Payment of any invoice by the University will not be deemed acceptance of suitability or merchantable quality of any Goods and/or Services. 3.6 The property will pass to the University upon payment and risk will pass to the University upon satisfactory delivery of the Goods and/or Services to the University. 3.7 If Goods are lost or damaged prior to delivery, whilst in transit or whilst otherwise in the Supplier s care, the Supplier will replace the goods or arrange repairs whichever is acceptable to the University. 3.8 Where Goods and/or Services are incorrectly delivered to the University or are not in accordance with the description contained on the Purchase Order or these Terms and Conditions, those Goods and/or Services will be cancelled and Goods will be returned to the Supplier or removed at the Supplier s expense. Any money paid up front for incorrect Goods and/or Services will be refunded to the University by the Supplier. 4. Cancellation and Changes by the University 4.1 The University may at any time before delivery change or cancel the Purchase Order. 4.2 If the Supplier has incurred expense in preparing to fulfill the obligations of the Purchase Order prior to cancellation, the University agrees to pay the Supplier s reasonable costs or expenses so incurred. 4.3 If the University has changed the Purchase Order and any change causes an increase or decrease in the cost of the Goods and/or Services, or time required to deliver the Goods and/or Services, an appropriate adjustment to the Purchase Order is to be made and agreed to between the University and the Supplier. 5. Sub-contracting and assignment 5.1 The Supplier may not sub-contract or assign any obligations under this Agreement without the prior written consent of the University. 6. Indemnity, Insurance and Warranties 6.1 The Supplier indemnifies the University against all actions, claims, liabilities, expenses, losses, damages and costs (including but not limited to legal costs) and consequential and indirect losses and damages including those arising out of any third party claim it directly or indirectly sustains or incurs as a result of this Agreement except to the extent that any negligent act or omission of the University contributed to the loss or damage. 6.2 The Supplier warrants that: a) all personnel engaged by the Supplier in connection with carrying out the obligations of the Purchase Order will have the required experience, skill and knowledge to perform the Services or complete delivery of the Goods, and any such personnel will provide the Goods or Services to a professional standard. b) the Goods and/or Services will be fit for the purposes intended and fit the description of the Goods or Services outlined in the Purchase Order; c) where applicable the Goods and/or Services will match any sample or demonstration of the Goods and/or Services given to the University by the Supplier. d) the Goods are of merchantable quality and are free from defects in design materials and workmanship; e) it has all rights, title, licences, interests and property necessary to provide the Goods and/or perform the Services; Financial Services Page 22 of 27

f) where applicable it is entitled to use and licence, free from encumbrances, any intellectual property rights used or transferred to the University under this Agreement and the University s use of any intellectual property will not infringe the rights of any owner of the intellectual property; and g) it will supply to the University with all documentation associated with the use of the Goods and/or Services. 6.3 This clause does not limit the Supplier s obligations under a warranty either implied in statute or expressly provided for in writing or contained in these Terms and Conditions. 7 Termination 7.1 The University may terminate this Agreement or withhold any amounts due under the Agreement by written notice to the Supplier if: a) if the Supplier breaches a term of this Agreement and fails to remedy the breach within 14 days after receiving notice requiring to do so; or b) if the Supplier is or becomes insolvent or unable to meet its debts, or is made bankrupt or has a receiver appointed, is wound up, under voluntary administration or such similar proceedings. 8 Miscellaneous 8.1 This agreement is governed by the laws of Tasmania and each party submits to the non-exclusive jurisdiction of the Supreme Court of Tasmania. 8.2 A provision of this Agreement or a right created under it may not be waived or varied except by agreement in writing by the parties. A failure of a party to exercise a right arising out of this Agreement does not constitute a waiver of that right or other rights existing under this Agreement 8.3 The Supplier must observe the University s by-laws, rules and policies, including but not limited to the Occupational Health and Safety Policy when on or in any land or building owned or occupied by the University. 8.4 Where the Purchase Order relates to Goods and/or Services which are the subject of a contract between the University and the Supplier, the terms of the Contract apply to the extent of any inconsistency with these Terms and Conditions. 8.5 The Supplier must hold and maintain all relevant insurance. Terms and Conditions Summarised On Purchase Order TERMS OF PAYMENT Payment is scheduled to occur on the basis of 30 days from the date of invoice, unless specific payment terms are stated on this order. TERMS AND CONDITIONS 1. The order number must appear on all invoices, delivery dockets and shipping documents. Goods and services must be delivered at the price, time, place and in the manner specified in the Purchase Order. The University of Tasmania reserves the right to cancel this Order in the whole or in part if delivery of the goods, or performance of the service is not made as specified. 2. Any goods or services supplied incorrectly, damaged or in excess of quantities specified on this Order will be returned at the Vendor s expense, and the supplier will refund any money paid by the University. 3. Title in the goods or services passes upon payment, risk passes upon delivery. 4. Unless otherwise agreed in writing, all goods received are subject to check and inspection before acceptance, which shall take place at the point of delivery as per this order. GOODS AND SERVICES TAX (GST) Where GST applies to the goods or services shown on the purchase order the total price is inclusive of GST. Financial Services Page 23 of 27

Appendix B: Miscellaneous Expenditure Table Type Examples Reasonable Expenditure Approval Likely FBT Status Catering supplies Tea, coffee, sugar & milk Standard supplies only In accordance with Delegations documentation Employees Partner / Visitors / Spouses Students No No No Newspapers & Journals Relevant newspapers, journals, Relevant articles determined by the In accordance with magazines approver. Subscriptions are to be in Delegations Register the name of the University. See also Miscellaneous Staff Payments Guidelines Memberships of Travel Clubs Hotel club memberships, gourmet Private in nature and to be paid by the clubs employee. No No No - - - - Graduations Gown Hire Where staff are expected to attend for Head of Budget work purposes. Hire costs only. Centre No No No Clothing Hire for University Dinner Suits for formal dinners or External Functions Private in nature and to be paid by the employee. - - - - Financial Services Page 24 of 27

Visas Required overseas travel for work Visa fees Head of Budget purposes. Centre No No No Passports Private in nature and to be paid by the employee. Some senior staff may have these provided for under their contract of employment. Costs are subject to FBT. Medical Costs Medical costs directly related to University overseas travel or business. - - - - - Medical expenses not reimbursed by Head of Budget Medicare/Private Health Centre No No No Laundry, Dry Cleaning Costs Required while travelling for work Reasonable amounts based period of In accordance with purposes. travel and/or on the circumstances delegations determined by the approver. documentation No Yes No Small Gifts, Floral tributes Visitors and other tokens of appreciation Reasonable amounts based on the Head of Budget circumstances determined by the Centre approver. No No No Staff Gifts up to $100 to recognise Head of Budget significant event. Centre No No No Financial Services Page 25 of 27

Flu Injections Medical expenses not reimbursed by The University undertakes annual Head of Budget Medicare/Private Health vaccinations. Any other vaccinationscentre must only occur as approved by the Chief Financial Officer No No No Parking & Speeding Fines Private in nature and to be paid by the employee. - - - - - Personal Memberships Professional Private in nature and to be paid by the employee. Some senior staff may have these provided for under their contract of employment - - - - - Pet Care Private in nature and to be paid by the employee. - - - - - Childcare Expenses Refer to Carer's Policy - - - - - Fuel Costs for University use May be claimed on a per KM basis. of private motor vehicle Refer to Human Resources Actual fuel costs cannot be reimbursed. - - - - - Financial Services Page 26 of 27

Personal Care items Private in nature and to be paid by the employee. - - - - - Luggage Private in nature and to be paid by the employee. - - - - - IT Equipment (Mobile Refer to IT resources dependent on the phones, laptops, ipads etc.) type of equipment. Equipment to be used primarily for work purposes and must remain the property of the University. - In accordance with delegations documentation No No No Uniforms & Clothing Refer to Work Health and Safety website and to the Miscellaneous Staff Payments Guidelines - - - - - Financial Services Page 27 of 27