(A) Purchase
requisition/purchase order process
(1) The
purchase requisition is to be used for purchases involving the receipt of
goods
, when a purchase order is required by the vendor,
and/or due to the nature of the purchase other methods are not
permissible. The purchase order, which is the formal offer to buy, is
initiated from the purchase requisition. The purchase requisition may also be
used to request blanket orders. These are used when small repetitive orders are
placed with one supplier.
A dollar value must be
assigned. Blanket purchase orders may be increased by fifty dollars or fifty
per cent (whichever is greater of the original amount as needed upon written
authorization of the budget manager. If more than this is needed, a new
purchase requisition must be issued. All blanket orders expire on June 30
of the current fiscal year. A dollar value must be assigned and a new purchase
requisition must be issued when the dollar value has been exhausted.
(2) The initiator must complete the following
information on the purchase requisition and ensure its accuracy before it can
be processed:
(a) Department and "deliver to"
information (see paragraph (E)(2) of this rule
regarding the purchase of books, subscriptions, and other
publications).
(b) Budget
code(s) - the first two digits designate the fund (i.e., unrestricted,
restricted, auxiliary, or agency); the next five digits designate the
department/division; and the last four digits designate the object
code.
(c) Name and complete address
of vendor.
(d) Quantity,
description, cost information and all other pertinent information. If an order
form or other document must be submitted to the vendor with the purchase order
or if the purchase must be pre-paid, it should be attached to the purchase
requisition and noted.
(e) Complete
the information regarding the possible requirement of a material safety data
sheet (MSDS).
(3) The
initiator shall retain a copy for their record which establishes the date the
process began and is for the initiator's protection in the event the purchase
requisition is lost. The original with appropriate attachments shall be
forwarded for signatures as follows:
(a)
Budget manager.
(b) Other budget
managers (if utilizing more than one departmental budget code to share in the
cost of the purchase).
(c) The
appropriate hazcom coordinator if the purchase requires an MSDS or if it is
unclear whether an MSDS is required.
(d) Dean of library and educational
resources (only if ordering video tapes, books, subscriptions, or other
publications).
(e)
(d)
Director
Executive
director of information technology (for all
computer-related
technology purchases).
(f)
(e)
Business office
Controller (to verify budget code, availability of
funds, mathematical accuracy, completeness of information, proper signatures).
(g) Controller (for final
approval).
The initiator should allow enough time for the signature
process to be completed so that vendors are given a reasonable amount of time
to fill the order once they receive the purchase order. Purchase orders shall
be mailed to the vendor within five working days of receipt of the purchase
requisition by the business office.
(4) Purchase requisitions shall be returned
for the following reasons:
(a) Incomplete
information - returned to initiator.
(b) Inadequate funds in budget/incorrect
budget code - returned to budget manager to either request a transfer of funds
or to correct the budget code. Budget transfers shall be submitted to the
controller for approval.
(c)
Incomplete signatures - returned to the appropriate person for
signature.
(d)
Unapproved/inappropriate purchase - returned to supervisor.
(e) Incomplete or missing information
regarding MSDS - returned to initiator.
In order that purchases are not delayed, each signatory must
ensure accuracy/appropriateness of the purchase.
(5) If a rush or emergency situation arises
requiring the immediate need for a purchase order or purchase order number, the
initiator shall hand carry the purchase requisition through the approval
process. If the purchase requires an MSDS, the initiator shall hand carry the
purchase requisition to the appropriate hazcom coordinator. A purchase order or
the purchase order number shall be issued by the business office after the
approved purchase requisition is received. If an order is called in to the
vendor referencing a purchase order number and the original purchase order is
also mailed, the word "confirming" shall be noted on the purchase requisition
in order to avoid duplicate shipment.
(6) In order to comply with auditing
requirements, the college-
has established
will establish a deadline for processing purchase
requisitions for each fiscal year. Purchase requisitions received by the
controller after July first
April 15 of each year
this date shall be charged to the next fiscal year budget. This is
necessary so that goods are ordered, received, and paid within the same fiscal
year. This deadline only affects requests for the ordering of goods to be
received and does not pertain to travel reimbursements, membership dues,
emergency repairs, or any other items that fall under the check request
process.
(7) A
six part
five-part purchase order is generated from a properly
processed purchase requisition. The distribution of the purchase order is as
follows:
(a) White copy - mailed to vendor
with any attachments.
(b) Pink and
blue copies - forwarded to initiator
(c)
Canary and
goldenrod copies
Goldenrod copy -
retained by business office.
(d)
Green copy - forwarded to bookstore.
(8) All goods ordered are received by either
the receiving department (office services center) or the initiator. Each
delivery must be inspected for visible damages and the proper notations must be
made on the transport company's receiving document (bill of lading).
(9) The initiator shall:
(a) Check the packing slip against the items
received. The items received shall be noted on the blue copy of the purchase
order.
(b) Verify that goods are
acceptable and payment of the invoice should be made.
(c) If goods are acceptable, initiator shall
sign and date the blue copy of the purchase order and return it to the business
office along with packing slips and all other documents. Please note that
invoice information is often included with the merchandise and shall also be
forwarded to the business office.
(d) If goods are not acceptable, initiator
shall notify the vendor and arrange a settlement. The business office shall
also be notified so that payment can be withheld until the matter is
resolved.
(e) If a partial payment
is necessary, the initiator shall forward a photocopy of the blue copy of the
purchase order to the business office noting the items received and that
partial payment should be made. This process shall be repeated as often as
necessary until the last item is received. At that time, the blue copy shall be
forwarded to the business office as described in paragraph (A)(9)(c) of this
rule. Partial shipments shall be noted on the blue copy as "received" with date
of receipt.
(10) Payment
of an invoice for goods ordered shall not be made until the business office has
been notified (as described in paragraphs (A)(9)(c) and (A)(9)(e) of this rule)
that goods have been received and are as ordered. In order to keep the
college's credit with vendors in good standing, it is important that the blue
copies of purchase orders are promptly forwarded to the business office as soon
as the items are received and accepted.
(11) A copy of invoices exceeding fifty per
cent or fifty dollars (whichever is greater) of the purchase order amount shall
be returned to the initiating department/division for authorization to pay.
Payments for these substantial variances shall also require the signature of
the vice president for business affairs. It is important to note that if the
reason for the increase is due to additional items being purchased against that
purchase order without the prior authorization of the vice president for
business affairs it may cause the initiator to be held personally liable for
the additional cost.
(12) For all
capital inventory items (object code 5940), the business office shall forward,
in addition to the green copy of the purchase order, a copy of the invoice and
all other relevant documentation to the manager of bookstore and office
services. This information is used to record the value of the asset in the
inventory records and initiates the process for tagging the
equipment.
(B) Check
request
(1) The check request method is used
when a purchase order is not required (when goods will not be received) and
expenses have already been incurred or shall be incurred. Employees who are
unclear as to whether the purchase should be processed via a purchase
requisition or check request shall contact the controller. Following are
examples of when a check request would be initiated:
(a) Purchased personal services
(non-employee) such as honorariums, modeling, consulting, etc. However, in many
instances this service should be initiated via an independent contractor
services contract rather than a check request. Employees who are unclear as to
which process is appropriate shall contact the vice president for business
affairs prior to negotiating a contract with the service provider.
(b) Subscriptions. Please refer to
paragraph (E) of this rule for purchasing video tapes, books, subscriptions or
other publications.
(c)
(b) Equipment repairs
and maintenance agreement contracts. If an annual maintenance agreement is
being processed whereby payments are to be made on a monthly or quarterly basis
throughout the fiscal year, a blanket purchase requisition shall be initiated
instead of processing several check requests throughout the year.
(d)
(c)
Conference registration fees.
(e)
(d) Institutional
memberships and dues. Payment of personal memberships may be acceptable as long
as the membership furthers the educational and public policy goals of the
college.
(f)
(e) Insurance premiums.
(g)
(f) Utility
bills.
(h)
(g) Freight charges not covered on purchase
order.
(i)
(h) Postage.
(j)
(i) Miscellaneous
payments (boiler/elevator inspections, licenses, legal fees, etc.).
(2) The initiator shall complete
the following information on the check request and ensure its accuracy before
it can be processed:
(a) Budget
code(s).
(b) Name and complete
address of vendor.
(c) Description
of expenditure.
(d) Amount of
check.
(e) Other pertinent
information.
(f) MSDS
requirement.
(3) Check
requests must be submitted with an invoice or other vendor generated
documentation which clearly shows the cost and description of
expenditure.
(4) Initiator shall
retain a copy
of the check request as well as a
copy of the supporting documentation for their
record
records which
establishes the date the process began and is for the initiator's protection in
the event the check request is lost. The original
check
request with appropriate attachments shall be forwarded for the
appropriate signatures as follows:
(a) Budget
manager.
(b) Other budget managers
(if utilizing more than one departmental budget code to share in the cost of
the purchase).
(c) Appropriate
hazcom coordinator if an MSDS is required or if it is unclear whether an MSDS
is required.
(d) Dean of library and educational
resources (only if ordering video tapes, books, subscriptions, or other
publications).
(e)
(d)
Director
Executive
director of information technology (for all
computer-related
technology purchases).
(f)
(e)
Business office
Controller (to verify budget code, availability of
funds, mathematical accuracy, completeness of information, proper signatures).
(g) Controller (for final
approval).
(5) Checks are printed bi-weekly on Fridays.
In order for a check to be processed, the check request with requisite
signatures, documentation, and appropriate budget codes must be received in the
business office no later than three working days (Tuesdays by
5:00 five p.m.) prior to the check run. If
a rush or emergency situation arises requiring the immediate need for a check,
the initiator shall hand carry the check request through the approval process
and obtain the approval for a manual check from the controller.
(6) Check requests shall be returned for the
following reasons:
(a) Incomplete information
- returned to initiator.
(b)
Inadequate funds in budget/incorrect budget code -returned to the budget
manager to either request a transfer of funds or to correct the budget code.
Budget transfers shall be submitted to the controller for approval.
(c) Incomplete signatures - returned to the
appropriate person for signature.
(d) Unapproved/inappropriate purchase -
returned to supervisor.
(e)
Incomplete or missing information regarding MSDS -returned to initiator.
In order that checks are not delayed for these reasons, each
signatory must ensure the accuracy/appropriateness of the purchase.
(C) Petty cash
(1) This method permits employees to receive
immediate reimbursement for items purchased when the purchase requisition
process is not feasible due to the nature of the purchase (i.e., small dollar
amount involved). Individual purchases are limited to twenty five dollars. In
order to receive reimbursement, a completed petty cash form (available in the
business office) and original receipt must be submitted to the business
office.
(2) The petty cash form
must include the dollar amount to be reimbursed, reason for purchase,
appropriate budget code(s), and employee's signature. Since the college is a
tax-exempt organization, sales tax cannot be reimbursed.
(3) This method could result in an employee
not being reimbursed if the transaction is deemed to be in violation of college
policy (i.e., greater than twenty-five dollars) or if there are insufficient
funds in the account(s) to be charged.
(D) College-issued credit card
Upon approval by their immediate supervisor, an employee can
receive
be
issued a college issued
college credit card to purchase goods to be used
for the college. An employee shall contact the controller to begin this
process. Once approved, guidelines shall be distributed to the employee.
Employees who accept a college issued
college credit card agree to abide by the
guidelines, shall not use the card for personal use, and also agree that
improper use of this card may result in disciplinary action.
(E) Purchasing video tapes, books,
subscriptions or other publications
The library recognizes that all
divisions/departments need to have certain publications on hand in order to do
their work effectively. At the same time, these materials are college property
and occasionally other members of the college community may need to have access
to them. The following procedures, which will also reduce unnecessary
duplication of orders, shall be used when purchasing video tapes, books,
subscriptions or other publications.
(1) The purchase requisition/check
request shall be forwarded to the dean of library and educational resources
after the signature of the appropriate budget manager is obtained. The library
staff shall check to see whether the material is already on hand. If the
requested item is owned by the library and if it is not generally used by
students, the library may be able to make a long-term loan to the
division/department. Otherwise, the purchase requisition/check request will be
approved and forwarded to the next signatory.
(2) The name of the dean of library
and educational resources shall appear on the purchase requisition under
"deliver to". Upon receipt of the material, the library shall immediately
catalog the publication and notify the requesting division/department. Orders
for newspapers and journal subscriptions shall include the specific
departmental name and address for the mailing label so that no unnecessary
delays occur.
(3) When and if the publication is
no longer needed in the division/department, the item shall be returned to the
library for housing or to be officially withdrawn from the
collection.
