Purchasing Policy. Temperate Wholesalers employees must have regard to the following principles in all purchasing activities:

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1 Purchasing Policy INTRODUCTION This document sets out Temperate Wholesalers policy for the acquisition of goods and services and carrying out of the procurement principles. This policy applies to the procurement of all goods, equipment and related services, construction contracts and service contracts (including maintenance). POLICY OBJECTIVE Temperate Wholesalers purchasing activities aim to achieve advantageous purchasing outcomes by: achieving value for money openness and accountability in all financial dealings ensuring compliance with appropriate accounting standards. RESPONSIBILITY All Temperate Wholesalers employees responsible for purchasing goods and services must comply with this policy. It is the responsibility of all employees involved in the procurement process to understand the meaning and intent of this policy. It is the responsibility of the Director s of Temperate Wholesalers to ensure that all employees likely to be involved in the purchasing of goods or services, regardless of role within the company, nature of the purchase or the purchasing amount involved have received training in this policy. GENERAL PURCHASING PRINCIPLES Temperate Wholesalers employees must have regard to the following principles in all purchasing activities: Open and effective competition Purchasing should be open and result in effective competition in the provision of goods and services. Employees must give fair and equitable consideration to all prospective suppliers. Value for money Temperate Wholesalers must harness its purchasing power to achieve the best value for money. The concept of value for money is not restricted to price alone.

2 The value for money assessment must include consideration of: contribution to the advancement of Temperate Wholesalers priorities fitness for purpose, quality, services and support whole of life costs including costs of acquiring, using, maintaining and disposal internal administration costs technical compliance issues risk exposure the value of any associated environmental or marketing benefits. Encouragement of the development of competitive local business and industry Temperate Wholesalers encourages the development of competitive local businesses who are able to support the aims of our organisation. Temperate Wholesalers may accept a tender or offer from a Local Supplier in preference to a comparable tender or offer from a Non Local Supplier even if the tender from the non local supplier is cheaper. This should be considered in light of the support requirements for the purchased item and the advantages that may be gained from establishing good relationships with local businesses. Environmental protection Temperate Wholesalers wishes to promote environmental protection through its purchasing procedures. This is in line with the green image that is increasingly demanded by our customer base. In undertaking any purchasing activities Temperate Wholesalers will: promote the purchase of environmentally friendly goods and services that satisfy value for money criteria; and foster the development of products and processes of low environmental and climatic impact; and provide an example to business, industry and the community by promoting the use of climatically and environmentally friendly goods and services; and encourage environmentally responsible activities. Ethical behaviour and fair dealing Temperate Wholesalers employees involved in purchasing are to behave with impartiality, fairness, independence, openness, integrity, and professionalism in their discussions and negotiations with suppliers and their representatives. Notwithstanding, it is our intent to seek the best possible value for money within the terms described in this policy.

3 GOODS AND SERVICES TAX In this policy, a reference to a price or purchase value is intended to be inclusive of Goods and Services Tax (GST) PURCHASES UNDER $10, All purchase requests for amounts under $10,000 must only be made by a Temperate Wholesalers employee who has undertaken appropriate training in this purchasing policy and who has been provided written authorisation for expenditure by the company Director s. Where quotations are to be sought Temperate Wholesalers employees must endeavour to ensure that invitations to submit quotations made verbally or in writing include relevant suppliers. Purchases Made Using a Company Purchasing Card Purchasing cards will only be issued to employees at the Director s discretion. In all cases, transaction limits and card limits will be determined by the Director s. A list of Purchasing Card holders is included as an Appendix 2. Purchasing cards are to be used for company related expenditure. In no circumstances should a company Purchasing Card be used for personal expenditure regardless of the intent to reimburse the company for any such expenditure. Minor and Petty Cash Purchases up to $ Petty Cash is only used for local purchases up to a maximum of $ in value unless prior approval is given by a company director. The total value of Petty Cash, the Imprest amount, is not to exceed $ Petty cash purchases should generally be used where use of a company Purchase Order or Purchasing Card is not possible or practical in the given circumstances or where a reimbursement for miscellaneous expenses made by an employee is authorised by a financial delegation holder. All receipts for which an employee is seeking reimbursement from Petty Cash must be provided to the designated Imprest Officer. Employees may not be reimbursed for petty cash expenditure which is not approved by a delegation holder. In such instances, the delegation holder should refer the expenditure to a company director for consideration. Purchases less than$2,000 For purchases less than $2,000 written quotations are not required but are considered to be desirable. In these instances, a verbal or internet price is adequate but there is no need to seek more than one price provided that the cost is reasonable for the goods or services sought. Details of any quotations obtained must be recorded on the Purchase Requisition form for the purchase.

4 Purchases between $2,000 up to $5,000 For purchases between $2,000 up to $5000, a minimum of two verbal quotations or internet prices must be sought where possible. Details of quotations obtained must be recorded on the Purchase Requisition form prepared for the purchase. Note: For purchases between $2,000 and $5,000, quotes received via or from a suppliers website will be accepted. Verbal quotes should indicate: date, person who gave quote, price details. These should be printed and attached to the Purchase Requisition. Purchases between $5,000 and $15,000 For purchases between $5,000 up to $15,000, a minimum of two written quotations must be obtained. All written quotations obtained must be attached to the Purchase Requisition form prepared for the purchase. PURCHASES BETWEEN $15, AND $50, Temperate Wholesalers requires a minimum of three written quotations for all purchases between $15,000 and $50,000. All quotations received must be evaluated against the product specification and reasons for the accepted quote documented. A quotation evaluation form must be completed. PURCHASES ABOVE $50, All purchases greater than $50,000 must be evaluated and approved by a company Director. Three written quotations are required or tenders will be called. In such instances, while the requesting officer may make recommendations, the Director must provide written approval prior to the issuing of a purchase order. Notes relating to all purchases (excluding petty cash) All purchase requisitions must be provided to an authorised delegation holder for the issuance of a Purchase Order. Delegation holders may issue a purchase order directly without the need to first complete a Purchase Requisition provided they are authorised to the total order amount.

5 EXCEPTIONS TO THE NEED TO SEEK QUOTATIONS Temperate Wholesalers authorised purchasing officers are exempt from the requirement to seek tenders or quotations, if: the purchasing officer is satisfied that there is only one supplier reasonably available for the required products or services a genuine emergency exists goods are purchased at an auction the purchase is for second hand goods which represent significant cost savings to the company that the supplier is an existing supplier of long standing, having provided excellent past service known as preferred suppliers purchasing authorisation for the goods or services has been given by a company Director. PREFERRED SUPPLIERS Temperate Wholesalers may compile a list of the names of organisations or persons suitably qualified to provide specific goods and services. In most instances, these will be existing suppliers with whom the company has a long standing relationship. The company Director s are solely responsible for determining preferred suppliers but may seek advice from its employees who have specific knowledge of suppliers. EXPENDITURE DELEGATIONS Only the Temperate Wholesalers employees listed in the Register of Financial Delegations are entitled to sign requisitions, purchase orders or petty cash vouchers and then only in accordance with their stated financial delegation limits. By signing a Requisition, Purchase Order or Petty Cash Voucher, all officers are confirming that they have taken full notice of this policy and will comply with all of the requirements of this policy. Under no circumstances must expenditure be authorised by non approved employees. To confirm expenditure delegations, please refer to Appendix 1. REVIEW It is the responsibility of the Board of Director s to monitor the adequacy of this policy and recommend appropriate changes. The Director s commit to a review of this policy annually.

6 Appendix 1 Purchasing Delegations Name Single item purchase limit Aggregate purchase limit Financial policy training Limitations completion date Henri Gleitman Unlimited Unlimited N/A Nil Maree Taylor Unlimited Unlimited N/A Nil Ivan Kruber Unlimited Unlimited N/A Nil Kim Richards $5,000 $15,000 12/01/1998 Purchases over $5,000 to be approved by a company director. Assistant to Director s $2,000 $15,000 03/05/200X Purchases over $2,000 to be approved by the Office Manager or Director. Tam Ng $50,000 Unlimited 05/09/1989 Director approval required for purchases over $15,000 Samuel Dawes $10,000 $15,000 23/08/2001 Media related expenditure only Kate Schaefer $10,000 $25,000 31/05/2006 Nil Tim Crowe $10,000 $25,000 12/02/2004 Nil Diane Welford $5,000 $15,000 20/03/2000 Nil James Nott $5,000 $15,000 04/04/1998 Nil Dorothy Pease $5,000 $15,000 27/12/2003 Nil Gemma Sprate $5,000 $10,000 16/07/2002 Training related expenditure only Teresa Donte $5,000 $10,000 19/11/1989 Nil

7 Appendix 2 Purchasing card register Name Single item purchase limit Aggregate purchase limit Card issue date Limitations Henri Gleitman Unlimited Unlimited 01/05/1985 Nil Maree Taylor Unlimited Unlimited 01/05/1985 Nil Ivan Kruber Unlimited Unlimited 01/05/1985 Nil Kim Richards $5,000 $15,000 15/02/2002 Nil Tam Ng $100,000 Unlimited 17/09/1989 Director s prior approval required for purchases over $50,000 Samuel Dawes $10,000 $50,000 23/08/2001 Media related expenditure only Kate Schaefer $10,000 $50,000 31/05/2006 Nil Tim Crowe $10,000 $50,000 12/02/2004 Nil