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| Policy 509.8 | | Policy 509.22 |
| == Introduction == | | == Introduction == |
| You may copy this page's source to start a new policy page. Be sure to remove or overwrite the examples. Second level headings should NOT be altered. | | You may copy this page's source to start a new policy page. Be sure to remove or overwrite the examples. Second level headings should NOT be altered. |
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| == Policy and Procedure Statements == | | == Policy and Procedure Statements == |
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| === Necessary Form ===
| | '''Definition''' |
| All requests for materials and services from commercial vendors must be submitted by requesting departments on either the standard procurement request form or by using FRS On-Line Requisitioning procedures as discussed in Procedure Statement 1, Purchasing from Commercial Vendors.
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| === Budgetary Approval ===
| | The North Carolina Agency Purchasing Manual, Section V-2, effective November 15, 1998, defines small purchases as those purchases of commodities, services or printing, not covered by a term contract, involving an expenditure of public funds of five thousand dollars ($5,000) or less. |
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| *Hard copy procurement request. After removing the departmental copy, the completed procurement request is submitted to the Controller's Office for budget approval. If sufficient unobligated funds remain in the general ledger account, the request is approved and forwarded to the Purchasing Office. If sufficient funds are not available, or if the request does not have the appropriate authorizing signature, the procurement request will be returned to the department.
| | COMPETITION |
| *On-Line Requisition. It is the responsibility of the requesting department to ensure that the general ledger account has adequate budget balance available (BBA) in the appropriate budget pool prior to submitting an on-line procurement request. On-Line requisitions must be submitted in accordance with the detailed instructions in the FRS On-Line Requisitioning Manual. Once submitted, the requisition will be transmitted on-line to the established approving authority which has administrative responsibility for the account. If approved, the requisition will then be transmitted on-line to the Purchasing Department.
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| === Purchase Orders ===
| | Competition is not required by statute for those purchases of equipment, supplies, materials, and services which meet the definition of small purchases. However, it is the responsibility and obligation of all University employees to seek the best possible value when making purchases with University funds. Accordingly, where appreciable value can be gained without undue sacrifice of convenience and/or necessity, the Purchasing Department may seek competition for certain purchases under $5000. |
| The Purchasing Office processes the procurement request to issue a purchase order. If bids are necessary, the Purchasing Office will request bids or arrange for the State Purchase and Contract Division to request bids. All other necessary approvals will be coordinated by the Purchasing Office.
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| After a purchase order has been processed, a copy is returned to the requesting department indicating that the materials have been ordered. The departmental receiver copy of the purchase order is forwarded to the Central Warehouse.
| | DOCUMENTATION |
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| === Goods Received ===
| | This small purchase policy in no way changes the requirement to obtain proper authorization documentation through the Purchasing Department or the Controller's Office prior to committing any University funds for the procurement of commodities or services. Normal purchases processed through the Purchasing Department require a purchase order. Certain small purchases as indicated below may be accomplished without a purchase order and documented as specified in the [Accounting Accounting] Section of this manual. |
| Most goods bought on purchase order will be received by the Central Warehouse and delivered to the department. The department should check the shipment for correctness and for damage as soon as possible, but no later than 5 days after receipt. If the shipment is correct and undamaged, no further action is required. The Receiving Section at Central Warehouse will automatically electronically receive the purchase 5 working days after delivery to allow payment by the Controller Office. If the shipment is incorrect or damaged, the Central Warehouse must be notified immediately (prior to the 5th day after receipt).
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| Purchased goods which are delivered directly to the department by the vendor have not been processed through the Central Warehouse. Therefore, it is essential that the department notify the Central Warehouse of satisfactory receipt as soon as possible, so the receiving report can be processed to allow payment.
| | PETTY CASH PURCHASES |
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| All invoices should be forwarded to the Purchasing Office by the vendor. If an invoice should be received by a department, it should immediately be forwarded to the Purchasing Office. Prompt payment for supplies and equipment insures Appalachian's good credit rating and services rendered by vendors.
| | As a result of the increasing costs of issuing procurement requests, purchase orders, and checks, petty disbursing funds have been established for small purchases and emergency purchases. |
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| All purchases from commercial vendors must be made in accordance with the policies and procedures detailed in this Manual.
| | Petty disbursing funds are available through the Controller's Office for use by University departments and areas under University control. |
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| 1 - Purchasing from Commercial Vendors
| | This procedure does not replace the routine purchasing procedures. However, if the purchase meets the criteria outlined below, this procedure may be used in lieu of the regular purchasing procedures. |
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| Procedure References - Review Policy Statement 7, Purchases from Commercial Vendors, and other policy statements applicable to the type of purchase.
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| Procedure Description - All purchases of goods and services from commercial vendors must be requested on a procurement request, Form PR-001, or by using FRS On-Line Requisitioning procedures. The requesting department submits the completed procurement request to the Controller's Office for budget approval. The Controller's Office then forwards approved requests to the Purchasing Office for processing. The Purchasing Office coordinates the obtaining of bids and approvals where necessary.
| | The Central Petty Disbursing Fund may be used when: |
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| The Purchasing Office then issues a purchase order and sends an informational copy to the requesting department. | | *There is a need for items that can be purchased locally at an economical price. |
| | *The University Warehouse does not have the items in stock. |
| | *The reimbursement amount is within the limits established in Accounting, Policy 16. |
| | *The budget account to which the purchase is being charged is maintained by the ASU Controller's Office. |
| | *State Term Contract items must be purchased from contract vendors. |
| | *The purchase of first aid supplies must be approved by the Safety Officer before reimbursement will be made by the Controller's Office. |
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| All purchases from commercial vendors must be made in accordance with the policies and procedures in this Manual.
| | If there is any question about a purchase being legitimate, the Petty Disbursing Officer in the Controller's Office should be asked for clarification prior to making the purchase. |
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| Procedure Steps
| | The University cannot be responsible for the purchase if it does not meet the established purchasing regulations and criteria listed in items 1 through 6 above. |
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| LOOK AT OTHER STATEMENTS
| | For details on this procedure, see Accounting, Policy #16? and Accounting, Procedure #5?. |
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| Check this Manual for specific information pertaining to the item you want to purchase. The following steps are for the general task of purchasing "something" from a commercial vendor.
| | CHECK REQUEST PURCHASES |
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| FOR ON-LINE REQUISITIONING
| | Certain small purchases totaling less than $1,500 including taxes, delivery and costs to place item into operation may be made using a Check request in lieu of following the normal purchase procedure. |
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| Departments which are trained and approved for on-line purchase requisitioning should use the procedures outlined in the FRS On-Line Requisitioning manual for most of their procurement requisitions. This manual is available at department level. Additional copies and/or updates will be provided by the Purchasing Department as needed.
| | The following restrictions must be strictly adhered to by all personnel making procurements under this procedure: |
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| FOR A PAPER PROCUREMENT REQUEST (Form PR-001)
| | *Total value of the purchase (including taxes, delivery, and costs to place item into operation) must be less than $1,500. Orders may not be split to avoid this threshold. |
| | *Contracted personal services. |
| | *Items listed on State Term Contracts must be purchased from a State Contract Vendor. |
| | *Items stocked in the Central Warehouse stores. These items must be purchased through the warehouse. |
| | *Purchases from overseas vendors. |
| | *Purchases requiring prepayment. |
| | *Research gases. |
| | *Radioactive materials. |
| | *First aid supplies should be approved by the Safety Officer prior to purchase. |
| | *Purchases unauthorized for State Fund expenditure, such as: items for personal use, alcoholic beverages, and entertainment expenses (to include food). |
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| Indicate the following information in the labeled blocks:
| | The Controller's Office has the responsibility for management and oversight of this procurement procedure. For details on this procurement method, see Accounting, Policy #15 and Accounting, Procedure #4?. |
| Date: The date of preparation.
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| Requisition Number: A number assigned by the department for internal reference purposes.
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| Person Originating Request: Name of person requesting the purchase.
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| Department: Name of requesting department.
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| Requested Date of Delivery: Date items are needed.
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| Check Distribution: Check the appropriate box if prepayment is required with the order, indicating how the check distribution is to be routed. All prepayment orders must be accompanied by an invoice or "document" from which price was obtained.
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| Vendor: The name and address of a known source for the items requested. If a source is not known, leave this block vacant.
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| Vendor Number; Terms; Cert., Bid, Quote Number; F.O.B.: For Purchasing Office use only.
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| Item No.: Leave blank.
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| Quantity: The number of each item requested.
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| Unit: The standard quantity measure used to sell the item, i.e. each, pair, thousand, hundred, ream, box, etc.
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| Commodity Number: To be filled in by the Purchasing Office.
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| Description: Give as thorough a description as possible for the items listed. If catalog numbers are available, include them. If prepayment is required for an order, indicate "PREPAY" in the description column, and attach an invoice or "document" indicating prices of the items. Specify if the item is a new asset or a replacement part.
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| Unit Price: The price per unit, pair, thousand, hundred, ream, box etc.
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| Total Prices: The product of the quantity times the Unit Price for each item listed.
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| After listing all items, subtotal the total price column.
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| Figure applicable sales tax and list in the total price column.
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| Show estimated total by adding the subtotal and the sales tax amounts.
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| Forward request to the department head for her/his signature of approval and date. If the department head is authorized to expend funds from the budget account for these items, he/she should also sign in the space for Dean of College/or authorized signature, fill in the appropriate budget account code, and the current date.
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| If approval is required at the Dean's level or if someone other than the department head must authorize the expending of funds from the applicable budget account, forward the request to the appropriate person for her/ his approval signature and the proper budget account number.
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| Forward request to the Controller's Office for final budgetary approval.
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| The Controller's Office will forward an approved request to the Purchasing Office for processing and will return any unapproved requests to the requesting department.
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| PURCHASING OFFICE ACTION
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| When the procurement request is received in the Purchasing Office, they will review it thoroughly to make the following determinations:
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| Are these items available at the Central Warehouse?
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| Are these items available on a State Contract?
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| Is adequate information provided to process a purchase order?
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| Are competitive bids required? If so, may the bidding be done by the University or must it go through the Purchase and Contract Division of General Administration?
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| If competitive bids are required, the Purchasing Office will process the necessary paperwork to solicit bids locally or through the State Purchase and Contract Division and coordinate all transactions with the requesting department.
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| When a definite vendor has been determined, Purchasing will issue a purchase order and forward a copy of the purchase order and the procurement request to the requesting department.
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| Procedure 2 - Receiving Purchased Items
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| Procedure Reference - Review Central Warehouse Policy Statement 2, Central Receiving?, and Purchasing Policy Statement 7, Purchases from Commercial Vendors.
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| Procedure Description - Since the Central Warehouse has been designated as the central receiving point for the University, most purchases are initially delivered there. For the same reason, when purchase orders are processed by the Purchasing Office, the departmental receiver copies are forwarded to the Central Warehouse until the items are received. Upon receipt, warehouse personnel deliver the purchases to the requesting departments.
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| Procedure Steps
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| WAREHOUSE DELIVERS PURCHASED ITEMS
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| When the Central Warehouse delivers materials:
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| Sign the warehouse receiving report for the shipment only as to the number of packages.
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| Check the shipment contents as soon as possible but no later than five (5) days after receipt.
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| If questions arise as to content of packages delivered, or if the shipment is discovered to have concealed damage, report this to the Central Warehouse (262-3160) and to the Purchasing Office (262-2080) at once .
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| If there is no problem with the shipment it will not be necessary to call the warehouse; the purchase will be automatically electronically received by central receiving 5 days after delivery.
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| DIRECT SHIPMENT TO DEPARTMENT
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| For items not received at the Central Warehouse, but forwarded directly to the department, the parcels should be opened and inspected for compliance with the purchase order and for concealed damage. The warehouse must be notified when the order is complete so the purchase can be electronically received. If damages exist, follow the same procedure as for items delivered by the Central Warehouse.
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| == Additional References == | | == Additional References == |
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| == Revision Dates == | | == Revision Dates == |
| Last modified 04/08/2011 08:55:49 AM by Matt McNaney
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Policy 509.22
Introduction
You may copy this page's source to start a new policy page. Be sure to remove or overwrite the examples. Second level headings should NOT be altered.
Scope
Definitions
Definition phrase or word
- Definition summary
Policy and Procedure Statements
Definition
The North Carolina Agency Purchasing Manual, Section V-2, effective November 15, 1998, defines small purchases as those purchases of commodities, services or printing, not covered by a term contract, involving an expenditure of public funds of five thousand dollars ($5,000) or less.
COMPETITION
Competition is not required by statute for those purchases of equipment, supplies, materials, and services which meet the definition of small purchases. However, it is the responsibility and obligation of all University employees to seek the best possible value when making purchases with University funds. Accordingly, where appreciable value can be gained without undue sacrifice of convenience and/or necessity, the Purchasing Department may seek competition for certain purchases under $5000.
DOCUMENTATION
This small purchase policy in no way changes the requirement to obtain proper authorization documentation through the Purchasing Department or the Controller's Office prior to committing any University funds for the procurement of commodities or services. Normal purchases processed through the Purchasing Department require a purchase order. Certain small purchases as indicated below may be accomplished without a purchase order and documented as specified in the [Accounting Accounting] Section of this manual.
PETTY CASH PURCHASES
As a result of the increasing costs of issuing procurement requests, purchase orders, and checks, petty disbursing funds have been established for small purchases and emergency purchases.
Petty disbursing funds are available through the Controller's Office for use by University departments and areas under University control.
This procedure does not replace the routine purchasing procedures. However, if the purchase meets the criteria outlined below, this procedure may be used in lieu of the regular purchasing procedures.
The Central Petty Disbursing Fund may be used when:
- There is a need for items that can be purchased locally at an economical price.
- The University Warehouse does not have the items in stock.
- The reimbursement amount is within the limits established in Accounting, Policy 16.
- The budget account to which the purchase is being charged is maintained by the ASU Controller's Office.
- State Term Contract items must be purchased from contract vendors.
- The purchase of first aid supplies must be approved by the Safety Officer before reimbursement will be made by the Controller's Office.
If there is any question about a purchase being legitimate, the Petty Disbursing Officer in the Controller's Office should be asked for clarification prior to making the purchase.
The University cannot be responsible for the purchase if it does not meet the established purchasing regulations and criteria listed in items 1 through 6 above.
For details on this procedure, see Accounting, Policy #16? and Accounting, Procedure #5?.
CHECK REQUEST PURCHASES
Certain small purchases totaling less than $1,500 including taxes, delivery and costs to place item into operation may be made using a Check request in lieu of following the normal purchase procedure.
The following restrictions must be strictly adhered to by all personnel making procurements under this procedure:
- Total value of the purchase (including taxes, delivery, and costs to place item into operation) must be less than $1,500. Orders may not be split to avoid this threshold.
- Contracted personal services.
- Items listed on State Term Contracts must be purchased from a State Contract Vendor.
- Items stocked in the Central Warehouse stores. These items must be purchased through the warehouse.
- Purchases from overseas vendors.
- Purchases requiring prepayment.
- Research gases.
- Radioactive materials.
- First aid supplies should be approved by the Safety Officer prior to purchase.
- Purchases unauthorized for State Fund expenditure, such as: items for personal use, alcoholic beverages, and entertainment expenses (to include food).
The Controller's Office has the responsibility for management and oversight of this procurement procedure. For details on this procurement method, see Accounting, Policy #15 and Accounting, Procedure #4?.
Additional References
Authority
Contact Information
Effective Date
Revision Dates
