Purchasing
Procedures
Procedure 1 - Purchasing from Commercial Vendors
Procedure References - Review Policy Statement 7, Purchases from Commercial Vendors, and other policy statements applicable to the type of purchase.
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 Purchasing Office then issues a purchase order and sends an informational copy to the requesting department.
All purchases from commercial vendors must be made in accordance with the policies and procedures in this Manual.
Procedure Steps
LOOK AT OTHER STATEMENTS
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.
FOR ON-LINE REQUISITIONING
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.
FOR A PAPER PROCUREMENT REQUEST (Form PR-001)
Indicate the following information in the labeled blocks:
- Date: The date of preparation.
- Requisition Number: A number assigned by the department for internal reference purposes.
- Person Originating Request: Name of person requesting the purchase.
- Department: Name of requesting department.
- Requested Date of Delivery: Date items are needed.
- 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.
- Vendor: The name and address of a known source for the items requested. If a source is not known, leave this block vacant.
- Vendor Number; Terms; Cert., Bid, Quote Number; F.O.B.: For Purchasing Office use only.
- Quantity: The number of each item requested.
- Unit: The standard quantity measure used to sell the item, i.e. each, pair, thousand, hundred, ream, box, etc.
- Commodity Number: To be filled in by the Purchasing Office.
- 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.
- Unit Price: The price per unit, pair, thousand, hundred, ream, box etc.
- Total Prices: The product of the quantity times the Unit Price for each item listed.
After listing all items, subtotal the total price column.
Figure applicable sales tax and list in the total price column.
Show estimated total by adding the subtotal and the sales tax amounts.
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.
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.
Forward request to the Controller's Office for final budgetary approval.
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.
PURCHASING OFFICE ACTION
When the procurement request is received in the Purchasing Office, they will review it thoroughly to make the following determinations:
- Are these items available at the Central Warehouse?
- Are these items available on a State Contract?
- Is adequate information provided to process a purchase order?
- 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?
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. 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.
Procedure 2 - Receiving Purchased Items
Procedure Reference - Review Central Warehouse Policy Statement 2, Central Receiving, and Purchasing Policy Statement 7, Purchases from Commercial Vendors.
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.
Procedure Steps
WAREHOUSE DELIVERS PURCHASED ITEMS
When the Central Warehouse delivers materials:
- Sign the warehouse receiving report for the shipment only as to the number of packages.
- Check the shipment contents as soon as possible but no later than five (5) days after receipt.
- 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 .
- 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.
DIRECT SHIPMENT TO DEPARTMENT
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.
Procedure 3 - Making Emergency Purchases
Procedure References - Refer to Policy Statement 12, Emergency Purchases, and Policy Statement 7, Purchases from Commercial Vendors.
Procedure Description - As with all types of purchases, the University Purchasing Office has the sole authority for entering into contracts to secure all emergency materials.
Use one of the following procedures to make an emergency purchase based on the available time:
- Conditions allow for the procurement request to be hand carried through the normal procedures to obtain the vendor copy of the purchase order or the purchase order number:
Procedure Steps
- Prepare the procurement request as described in Procedure Statement 1, obtaining the necessary approval signature.
- Hand carry the procurement request to the Controller's Office and obtain final budgetary approval.
- Take procurement request to the Purchasing Office and explain the reason for making the emergency purchase. Depending on immediate circumstances, the Purchasing Office will either:
Prepare a purchase order and give you the vendor's copy, or
Give you a purchase order number to use in making the purchase.
- Take the vendor's copy or a purchase order number and make the purchase. Either obtain an invoice from the vendor and deliver it to the Purchasing Office, or ask the vendor to send an invoice to the Appalachian State University Purchasing Office. The purchase order number should be referenced on the invoice.
- The emergency is such that it does not allow time for a procurement request to be hand carried through the normal procedure:
Telephone the Purchasing Agent to obtain approval to make the purchase and a purchase order number.
Make purchase using the purchase order number. Obtain a vendor's invoice with the above purchase order number referenced.
As soon as possible, prepare a confirming Procurement Request and send it through the normal channels to the Purchasing Office, along with the vendor's invoice.
Procedure 4 - Using Blanket Purchase Orders
Procedure References - Refer to Policy Statement 13, Blanket Purchase Orders, and Procedure Statement 1, Purchasing from Commercial Vendors.
Procedure Description - Blanket purchase orders may be used by a department or office within the University having a recurring need for miscellaneous supplies of a minor nature which are not available under existing contracts or from the Central Warehouse. Instead of calling for specific items, a blanket purchase order is issued to a vendor for a specific type of item, for purchasing over a specified period, and within a specified cost limitation. The Purchasing Office is responsible for soliciting prices, terms, etc., for blanket purchase orders.
Procedure Steps
REQUESTING A BLANKET PURCHASE ORDER
When a department determines the need for a blanket purchase order, the request should be forwarded to the Purchasing Office in the following manner:
- Prepare a procurement request as described by Procedure Statement 1, including the following additional information:
Period of time covered by the order, e.g., quarterly, semiannually, annually.
Category of materials needed, e.g., plumbing supplies, automotive parts, etc.
Total estimated cost for the period covered.
List of persons authorized to make purchases against the blanket purchase order.
This information may be stated in a manner similar to the following:
This is to establish a blanket order for furnishing miscellaneous (insert type of commodity, i.e. automotive parts) as authorized and called for by (name of authorized person) of the (requesting department name) during the fiscal year ending June 30, (year) in the amount of ($). The following individuals are authorized to make purchases against this blanket order:
(List individuals' names)
Prepare a justification memorandum and forward it along with the procurement request to the Controller's Office and then to the Purchasing Office.
MAKING PURCHASES AGAINST A BLANKET PURCHASE ORDER
When items covered by a blanket purchase order are needed, the following procedures should be followed:
- Check to determine whether the required items may be obtained either from some University stock or under an established contract.
- An individual named on the blanket purchase order makes the purchase and obtains a delivery ticket or invoice with the following information:
Name of supplier.
Number of the blanket purchase order. Date of purchase.
Name of person receiving merchandise.
Itemized list of supplies furnished.
Quantity, unit price(s), and extension(s).
Applicable discounts.
Date of delivery or pickup.
- Person authorized to make purchase must sign the delivery ticket.
- Forward ticket to the appropriate office for review.
- Office responsible for purchase promptly forwards all tickets to the Purchasing Office for payment.
Procedure 5 - Fixed Asset System Inventory
Annual Physical Inventory - The Fixed Asset System is a system of control over the location, condition, and disposition of fixed assets. Therefore, the State Auditor's Office requires each agency to take an annual physical inventory of those assets.
University Department Inventory - Each University department is responsible for completing a yearly inventory of those assets assigned to that department. During the spring semester or at an appointed time, worksheets listing each department's assets will be distributed (Fixed Asset System Form 090.)
Inventory Procedure - The following is the procedure for conducting the department inventory with the FAS worksheet:
- For each item on the Fixed Asset System worksheet which is on hand, enter a check ( ) in the comments column. Any changes for the building room number location should be entered in the comments column.
- If items on the worksheet cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice Of Disposal Or Change In Location form for each missing item.
- Items not on the inventory list should be added, noting the FAS number (if available), description, location, manufacturer, serial number, and condition.
The Fixed Asset System worksheet and disposal forms should be returned no later than April 15 of the year of the inventory to the Fixed Asset Office, located in the Business Affairs Annex Building, on State Farm Road. Questions concerning inventory should be directed to the Fixed Asset System Officer, telephone number 262-2636.
Assets Traded or Sold - Assets traded or sold between departments must be reported to the Fixed Asset System Office through the use of the Movable Equipment - Notice of Disposal Or Change In Location form. Assets traded or sold to other agencies must have prior approval from the Fixed Asset System Office and the State Surplus Property Officer.
Missing Assets - For each asset on the Fixed Asset System worksheet which cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice Of Disposal Or Change In Location form for each missing item.
The form must be signed by the department head and appropriate Vice Chancellor accompanied by an investigation report completed by the University Police. The Fixed Asset System Office will compare these items against assets which appear as additions to the inventory worksheets of other departments. Even though an item is reported missing, it will remain on that department's inventory listing until found or for two years. Items not located at the end of this two year period will be written off after obtaining approval from the Chief Fiscal Officer.
Stolen Assets - If items are known to be stolen, notify the University Police to report the theft and request a copy of their investigation report. Then notify the Fixed Asset System Office by completing the Movable Equipment - Notice Of Disposal Or Change In Location form. The form must be signed by the department head and appropriate Vice Chancellor, accompanied by an investigation report and forwarded to the Fixed Asset System Office.
Damaged Or Destroyed Assets - Assets damaged beyond use should be reported to the Fixed Asset System Office through the use of the Movable Equipment - Notice Of Disposal Or Change In Location Form. Two persons from the Physical Plant and/or the Central Warehouse and/or the Fixed Asset System Office will verify that the item is damaged beyond repair and should be scrapped.
Disposal Forms Filed - The Fixed Asset System Officer photocopies each lost/stolen disposal form and accompanying reports. The forms are then filed numerically by the department's assigned RCC Code.
Yearly Report - The Fixed Asset System Officer sends a report to the Chancellor, all Vice Chancellors, Associate Vice Chancellor for Fiscal Operations, Director of Purchasing, Director of Office of Internal Audits, and Controller, indicating total assets lost/stolen for the year.
Fixed Asset System Questions - Any questions concerning the Fixed Asset System should be directed to the Fixed Assets System Office, telephone number 262-2636.
Procedure 6 - Purchasing from the University Bookstore
Procedure References - Review Policy Statement 11, Purchases from University Facilities, and other policy statements applicable to the type of purchase.
Procedure Description - All purchases at the Bookstore that will be charged to a University department must follow the procedures outlined below:
- Complete a three part University procurement request which should include a description of the items to be purchased, the appropriate twelve digit budget code and an authorized signature.
- All request for computer equipment and supplies must be routed through the University Controllers Office for budget approval.
- Requests for non computer equipment and supplies costing less than $1500.00 may be taken directly to the Bookstore Cashier at the point of sale.
- The approved procurement request should be presented to the Bookstore cashier at the point of sale. The purchaser will retain one part of the procurement request and receive one copy of the Bookstore charge ticket for departmental records. The remaining two parts of the procurement request and charge ticket will be retained by the Bookstore and used to charge your account.
Procedure 7 - Procedures for Borrowing Computer Equipment
Procedure References - Review PURCHASING Policy Statement 21, Borrowing Computer Equipment .
Procedure Description - All computer equipment that is borrowed by a faculty or staff member must be recorded on an equipment check-out permission form. The form can be requisitioned from the warehouse. The form must be completed with the appropriate signatures and distributed properly.
Steps to complete the Equipment Check-out Form:
- The Fixed Asset System property identification tag number.
- The equipment description including the make, model, and serial number.
- Purpose for off-campus use - a brief explanation describing which project/grant etc. for which the equipment will be used.
- Duration of authorization - the dates the equipment is expected to be used.
- Read the certification carefully, sign and date.
- The Department Chairperson or department head should sign the form giving authorization to the borrower for the loan of the equipment.
- Distribute the appropriate copies when the equipment is borrowed.
- When the equipment is returned, identify the equipment and have the Department Chairperson sign the form.
Procedure 8 - Payment for Contracted Services Performed
Procedure Reference - Review Purchasing Policy Statement 22, Personal Service Contracts .
Procedure Description - Payment for services performed will be made from a contract and a procurement request. See Purchasing Policy Statement 22, Personal Service Contracts for restrictions and limitations.
Procedure Steps
- Contact the Controller to verify that the person performing the service can legally be paid for contracted services.
- Have the person being contracted with fill out a W-9 form for IRS purposes. If the person contracted with normally works for another N.C. State agency, a CP-30 form is to be filled out in lieu of a W-9 form.
- Initiate a procurement request (not necessary with a CP-30 form).
- Submit the contract, the procurement request and the W-9 form (or the contract and the CP-30 form with all carbons) to the Controller's Office for payment.
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