Purchase Order Hold Process

Unless the University of Illinois System can demonstrate that a conflict of interest does not exist, a purchase order hold should be placed on the vendor’s record in Banner when:

• the vendor has had a previously identified prohibited or potential conflict of interest;
• it is determined at the time of vendor setup that the vendor has a relationship with a University of Illinois System employee;
• the vendor is identified in a conflict of interest/commitment management and oversight plan; or,
• the vendor is disclosed in a Report of Non-University Activities (RNUA).

The University of Illinois System might not place a purchase order hold on a vendor record in certain situations that suggest no potential conflict exists, such as when:

• the vendor has not conducted business with the University of Illinois System within the last three years;
• the vendor is a not-for-profit organization or a governmental entity;
• the RNUA does not contain a legally accurate or complete vendor name; or
• the vendor is a publicly traded company subject to federal 10K reporting requirements established by the U.S. Securities and Exchange Commission.

Prior to completion of the purchase, the potential vendor will be required to complete a Financial Disclosures and Conflicts of Interest form. This form will be used to determine whether a prohibited or potential conflict exists at the time of the purchase. If a prohibited or potential conflict of interest exists, the Conflict of Interest Review Process must be completed to determine if the University may proceed with the purchase. The purchase order hold will remain in place until the prohibited or potential conflict of interest no longer exists.

Procurement Services will annually review approved RNUAs to identify reported relationships that may implicate the Procurement Code conflicts of interest provisions.

Effects of a Purchase Order Hold

Banner Purchase Orders

When a purchase order hold is placed on a vendor profile, a Banner purchase requisition can be created, submitted, approved and routed to the Purchasing Division. The Purchasing Division, however, may not complete the transaction until the purchase order hold is removed from the vendor’s Banner profile or the purchase order is otherwise approved by the Office of Procurement Services after completion of the Conflict of Interest Review Process without finding of an actual conflict of interest.

iBuy Purchase Orders

If a unit is creating an iBuy purchase requisition for a vendor with a known purchase order hold, the unit must submit the requisition on the “Route to Purchasing” form. This requisition can still be created, submitted, approved and routed to the Purchasing Division. However, the Purchasing Division will not complete the transaction until the purchase order hold is removed from the vendor’s Banner record or the purchase order is otherwise approved by the Office of Procurement Services after the Conflict of Interest Review Process has been completed without finding of an actual conflict of interest.

Procurement Services will run a monthly report to find purchase orders created in iBuy with vendors subject to a purchase order hold. Procurement Services will use the report to verify that a Conflict of Interest Review Process was completed on the purchase order in question. If a Conflict of Interest Review Process was not completed, the Office of Procurement Services may suspend any services not performed and delivery of any supplies not received in order to conduct the Conflict of Interest Review Process. If all services have been performed and all supplies have been delivered, Procurement Services will notify the unit of the vendor’s purchase order hold and instruct the unit to use the “Route to Purchasing” form for all future purchases from the vendor. The report also will be used to identify any iBuy purchases for which a Purchasing Division did not identify a purchase order hold on a vendor profile prior to completion of the transaction.

Last Updated: July 14, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: July 14, 2017