9.1.3. BOTTLED WATER PURCHASE
“Bottled Water” includes individual bottled water up to and including five-gallon bottled water and water cooler rental. Bottled water can be purchased with state funds for educational, research, and experimental purposes as well as for departments located in buildings without access to drinking water (water utilities). Otherwise, the purchase of bottled water is for personal consumption by employees and guests and is considered an entertainment expense, in which case it may only be purchased with local funds on accounts where entertainment expenses are allowable as outlined in the Entertainment and Official Occasions Expenditure Policy Chart.
B. Purchase Requirements
A department should not process individual purchase orders monthly for any known, long-term requirements, including monthly water purchase. If the purchase of bottled water is an ongoing requirement and recurs on a monthly basis, an annual blanket purchase order must be in place. All water purchases must following these guidelines:
- For annual blanket orders or individual purchases of $15,000 or less, competitive bids are not required and the order may be processed on a PBO document. Additionally, the purchase may be processed on a procurement card (Procard) up to the maximum transaction limit for the card and keeping in mind that total is the annual total for blanket orders.
- For orders that total between $15,000.01 up to a maximum of $50,000, a minimum of three bids are required and the order should be processed on a PB3 document.
- For orders totaling over $50,000, formal bids must be solicited by the Purchasing Office and should be submitted on a PB4 document.
These guidelines apply to drinking water only, not water for lab use. Purchase of drinking water is not allowed on state funds.* Possible commodity codes to use on a purchase order include:
- 390-91 Water, drinking (including distilled, mineral, sparkling, and spring)
- 962-94 Water Services, bottled and bulk delivery (tanker services)
- 985-28 Coolers, drinking water (rental or lease)
*Use of state funds is only allowed if there is no source of potable water available in the facility making the purchase.
C. Voucher Processing
1. Payment Document
- If the department is using a purchase order for direct purchase from a vendor, process the payment on a VP1 document. Entertainment object codes are allowable on the VP1 using format 01.
- If the department is using a Procard, the payment will process as a VP7.
- For one-time reimbursement to an individual, process the payment on a VPE.
2. Supporting Documentation Required
- An itemized invoice from the vendor is required.
- Regardless of the document type, if the water purchase is for entertainment purposes, an Official Occasion Expense Form is required.
3. Voucher Coding
Code 1415 – Food for Education and Research
Use state or local funds for educational, research, and experimental purposes as well as for departments located in buildings without access to drinking water (water utilities). This code does not require an Official Occasion Expense Form.
Code 1347 – Official Occasions / Meals, Refreshments, and Expenses for Conferences, Workshops, and Seminars / Business Meetings.
Use local funds if bottled water is purchased for the purpose of official occasions, conferences, workshops, seminars, or business meetings. An Official Occasion Expense Form is required for each event. A blanket Official Occasion Expense Form is acceptable only if monthly recurring payments are renewed Sept. 1 of each year for a given fiscal year.
- Official Occasions
Cost of food, beverages, catering charges, waiters, decorations, flowers, invitations, room rentals, and other expenses associated with an official occasion. The event is usually a reception, luncheon, or dinner hosted by an administrative officer. Many events are associated with special programs, university guests, faculty and staff recruitment or business meetings that span the lunch hour. Examples include conferences, development events (donor receptions, fundraising activities, etc.), planned retreats, staff meetings, and other similar activities.
- Meals, Refreshments, and Expenses for Conferences, Workshops, and Seminars
Cost of food, beverages, flowers, and related expenses associated with conferences, workshops, seminars, and contract and grant programs. This object code should not be used for payments to speakers, travel costs for speakers, and participant support fees.
- Business Meetings
Cost of food, beverages, flowers, and related expenses for working business meetings, luncheons, and dinners; faculty and staff retreats; staff meetings; staff recruitment functions; and similar University activities where University business is conducted.
Code 1309 – Official Student Occasions
Use local funds if bottled water is purchased for the purpose of official student occasions when the cost of food, beverages, and other expenses associated with official student occasions are paid for with student fee and flat rate tuition funded accounts. These expenses must be in support of student academic services and can never include the purchase of alcohol.
Part 9. Expenditure Procedures - Table of Contents