roger haskett
Case 3-2: Roger Haskett
Name: ________________
Group: ___A or B________
Date: ________________
Situation:
Roger Haskett, director of purchasing for Morrow University in San Antonio, Texas
Professor kahsay , from engineering faculty
Menard ,the supplier
Purchasing department
The purchasing department’s mandate was to maxi- mize the value of funds spent on supplies, equipment, and services; ensure ethical buying practices; maintain good supplier relations; and ensure compliance with the regula- tions governing taxes, accounting procedures, and other related university policies.
Most faculty and staff tended to handle their own pur- chasing needs for low-value purchases, which had been made easier with online purchasing applications
For pur- chases greater than $100,000, the purchasing department assigned a senior buyer to monitor and assist throughout the acquisition process
Prior to acquir- ing goods or services with a value in excess of $7,500, two written quotes were required.
Three quotes were required for acquisitions in excess of $10,000, and state policies re- quired all acquisitions over $100,000 to be posted electron- ically to allow all potential vendors an opportunity to quote
Capital Leases If any of the following criteria are met, a lease must by classified as a capital l ease: 1. Ownership of the property is transferred to the lessee at the end of the term, o r 2. The lease contains an option to purchase the property for less than fair market value, o r 3. The lease term is greater than 75 percent of the property’s estimated economic life, o r 4. The present value of the lease payments exceeds 90 percent of the fair market value of the property. Operating Leases Any lease that is not a capital lease is an operating l ease.
Professor Kahsay had arranged a capital lease because he did not have sufficient funds within his annual operating budget to cover the cost of purchasing the equipment outright. Professor
Name: ________________
Group: ___A or B________
Date: ________________
Situation:
Roger Haskett, director of purchasing for Morrow University in San Antonio, Texas
Professor kahsay , from engineering faculty
Menard ,the supplier
Purchasing department
The purchasing department’s mandate was to maxi- mize the value of funds spent on supplies, equipment, and services; ensure ethical buying practices; maintain good supplier relations; and ensure compliance with the regula- tions governing taxes, accounting procedures, and other related university policies.
Most faculty and staff tended to handle their own pur- chasing needs for low-value purchases, which had been made easier with online purchasing applications
For pur- chases greater than $100,000, the purchasing department assigned a senior buyer to monitor and assist throughout the acquisition process
Prior to acquir- ing goods or services with a value in excess of $7,500, two written quotes were required.
Three quotes were required for acquisitions in excess of $10,000, and state policies re- quired all acquisitions over $100,000 to be posted electron- ically to allow all potential vendors an opportunity to quote
Capital Leases If any of the following criteria are met, a lease must by classified as a capital l ease: 1. Ownership of the property is transferred to the lessee at the end of the term, o r 2. The lease contains an option to purchase the property for less than fair market value, o r 3. The lease term is greater than 75 percent of the property’s estimated economic life, o r 4. The present value of the lease payments exceeds 90 percent of the fair market value of the property. Operating Leases Any lease that is not a capital lease is an operating l ease.
Professor Kahsay had arranged a capital lease because he did not have sufficient funds within his annual operating budget to cover the cost of purchasing the equipment outright. Professor