Business/Non-Instructional Operations

Transcription

1 3324 Business/Non-Instructional Operations Purchase Orders & Contracts All contracts between CREC and outside organizations, agencies or vendors shall conform to prescribe standards as required by law and be reviewed by the Chief Financial Officer, subject to the approval of legal counsel, if necessary. Any contract that binds CREC in any financial or risk exposure manner must be signed by one of the following three individuals: the Executive Director, the Assistant Executive Director or the Chief Financial Officer. CREC shall not enter into any contract with a person, agency or organization if it has knowledge that such person, agency or organization discriminates on the basis of race, color, religious creed, age, marital status, national origin, sex, sexual orientation, or physical handicap or disability, either in employment practices or in the provision of benefits or services to students or employees. Legal Reference: Connecticut General Statutes 46a-58 through 46a-81 discriminatory practices Title VII, Civil Rights Act, 42 U.S.C. 2000e et seq. as amended by Title IX, Equal Employment Opportunity Act Title IX of the Education Amendments of 1972; 42 U.S.C. 1143n et seq. Policy adopted: May 18, 2005 Page 1 of 6

2 Business/Non-Instructional Operations Purchase Orders & Contracts - Procedures A request to purchase goods or services is called a requisition. approved by the purchasing agent, it then becomes a purchase order. When a requisition has been CREC will assume no responsibility for purchases made without the prior written approval of the CREC purchasing agent. All purchases made with funds received by CREC, for whatever program, must be made only on the express written approval of the Program Manager and the CREC purchasing agent. Every effort will be made to expedite the processing of all approved purchases. The purchase order is used not only as an order form to purchase goods but also as a record of all expenditures for accounting, grant reporting, and auditing purposes. Therefore these documents must be complete and accurate. To insure purchases are charged to the correct program, the following procedures must be followed: A requisition does not need to be completed if goods or services are purchased between two or more CREC programs. For Munis On-Line Requisitions Please see attached Exhibit I, MUNIS Requisition Entry Instructions, for step by step instructions. For Requisitions Off-Line 1. Complete a requisition/purchase order following the instructions on the attached sample, Exhibit J. Detach the gold copy and retain for files. All requisitions/purchase orders must be typed if off-line. Please take care to ensure the accuracy, legibility and completeness of orders; vendors can only process orders they can read. 2. Forward the completed requisition/purchase order to the Business Services department. 3. The requisition/purchase order will be reviewed, approved and signed by the purchasing agent. The white copy will be forwarded to the vendor within three to five working days of receipt by the Business Services department. Page 2 of 6

3 4. A blue copy of the purchase order will be sent to the program when the purchase order is issued. This serves as notification that the expenditure has been approved. 5. When all materials listed have been received, sign and date the blue copy attach the packing slip and return documents to Business Services. This serves as notification that the goods have been received and the invoice for payment can be processed. NOTE: Most invoices are sent directly to Business Services, therefore, unless there are special circumstances; do not wait for invoices before sending in blue slips on completed purchase orders. If programs do receive invoices, DO NOT KEEP THEM. Forward all copies to Business Services noting the program and P.O. #. For Both On-line and Off-line Requisitions Please note the following procedures apply to both on-line and off-line requisitions and purchase orders: 1. All addresses must be completed, the vendor s and the deliver to address, including zip code. 2. Vendor Name and Address: Please be sure to complete the vendor name and address section exactly the way that checks should be completed. 3. Include a completed W-9 (see Exhibit T) from the vendor with the Tax ID number when requesting any new vendor to be added. A vendor will not be added to the MUNIS database without a completed W-9 form. 4. Designate one person in each program whose name should appear on all requisition/purchase orders. The designee should receive materials and supplies and will be responsible for returning the blue copies for payment. 5. All requisitions/purchase orders must include a price, which can be a close estimate when exact figures are unavailable. Include shipping costs at approximately 10% of order value. Please note Estimate. 6. Program managers must sign each requisition/purchase orders in the designated area of the form, approve if on-line. 7. Program budget codes must be noted in the designated area of the form. 8. Programs are free to develop their own requisition numbering system. To facilitate inquiries, we recommend using the program number first, followed by a five digit number. Business Services will assign a purchase order number upon receipt/posting of the requisition/purchase order. Page 3 of 6

4 9. It is the program s responsibility to communicate with the vendor about any cancellations and back-orders. Send a copy of any correspondence to Business Services noting the P.O. # for Business Service s files. 10. Returns of merchandise need to be handled very carefully to insure proper credits. Check with the company before returning anything to insure proper procedures are followed. Send a copy of any correspondence to Business Services noting the P.O. 11. Attachments: If Business Services is required to mail any attachments with the purchase order, please supply Business Services with two (2) copies; one to mail and one to keep for audit purposes. 12. Long lists should be typed on a separate page. Please note on the requisition/purchase order Items per attached list. Please attach two (2) copies of the list. Open Purchase Orders An open purchase order is an issued purchase order covering a period of time within a fiscal year for which many partial payments will be made. An open purchase order is issued to one specific vendor and covers a specific period of time within a fiscal year. An open purchase order is used to pay numerous periodic payments to a vendor without the need to issue new purchase orders each time an invoice is received. Open purchase orders are most often used to cover telephone expenses, utility bills, rent, office supplies, and bottled water and courier services. Please contact the Business Services purchasing staff if there are other types of services being considered for an open p.o. The procedures for creating an open p.o. are the same as for creating a normal p.o. Refer to these procedures. CREC Program to CREC Program Purchases When one CREC program purchases goods or services from another CREC program, an Invoice Request form must be completed by the CREC program selling the goods or services. See Exhibit F within policy 3200 for a sample of this form. When completing the Invoice Request, the purchasing program needs to supply the program budget code in place of the purchase order number to the selling program. No purchase order needs to be completed. Please write the word Internal across the top of the form to indicate this sale is internal to CREC. The selling program forwards the completed form to Accounts Receivable in Business Services. Page 4 of 6

5 Vendors Requesting Pre-payment Some vendors require pre-payment for different reasons. If your vendor is one of these, include a copy of their statement requesting pre-payment and note PRE-PAY on the requisition. Before any pre-payment can be made, documentation is required supporting this payment both for general accounting procedures and internal controls. The best documentation is a statement from the vendor requesting pre-payment and listing actual prices. This can take the form of bids, order forms, subscription forms, registration forms, etc. A check will be mailed along with the white copy of the purchase order and any required documentation. In the case of pre-payment, Business Services must be notified of either the (1) receipt of the goods, i.e., a packing slip, or (2) other appropriate documentation such as conference registration forms Reimbursements to CREC Employees The following information must be contained on the purchase order for reimbursement to a CREC employee: 1. Description of the purchase. If a meal has been purchased, please include the names of all attendees on the back of receipt. 2. Reason for the purchase. 3. Date of purchase. 4. Original receipts must accompany the purchase order. No copies will be accepted. The purpose for reimbursements to employees is to assist with the purchase of goods and services that cannot be purchased through the standard purchase order process. Instructional supplies and office supplies are examples of two types of expenditures which are not allowable reimbursable expenses. Food for workshops; purchases from Home Depot and Lowes (as they do not take purchase orders); and trip and conference reimbursements are examples of acceptable types of reimbursable expenses. If an immediate small need arises for a purchase such as instructional supplies or office supplies, consider using petty cash available through the program or school. All receipts and reimbursements must be received by Business Services within two (2) months of the purchase. If an employee is submitting reimbursement for travel or trip expenses, please complete the Travel Expense Trip Report form along with the approved requisition. Page 5 of 6

6 Reimbursements to Independent Contractors 3324 R The following information must be contained on the purchase order for reimbursement to an independent contractor: 1. The name of the contractor, their job title and the company they are representing. 2. Description of purchase. 3. Reason for purchase. 4. Date of purchase. 5. Original receipts must accompany the purchase order. No copies will be accepted. The only allowable reimbursable expenses to independent contractors are those that are specified in their written contracts. Trip Expenses CREC does not offer travel advances to its employees. The Chief Financial Officer may grant an exception. Please submit any requests for an exception in writing. Prior to purchasing airline tickets through the CREC designated travel agent, a requisition must be created, made payable to the travel agent. The requisition needs to describe the purpose of the travel, to which location the flights will be, the dates of travel and conference data, if applicable. Employees can call the designated travel agent directly once the purchase order has been approved to purchase the tickets. Create a requisition made payable to the hotel when applicable. When the bill is received along with the blue slip after the conference, the invoice will be paid. If hotel and/or other airfare cannot be paid for in advance by CREC, the employee needs to complete the Travel Expense Trip Report form and submit to Business Services with an approved requisition and all original receipts. CREC does not pay for alcohol purchased by employees. Emergency Purchasing Procedures Occasionally an emergency situation arises where the normal purchasing procedures do not apply. Under these situations, the program should contact the purchasing agent in Business Services for assistance. Any special requirements should be discussed at this time. It is important that the needs of the program are met while maintaining the accounting integrity of the organization as a whole. There are many different courses of action that can be taken to accomplish this. If you have any questions, call the purchasing agent in Business Services. Regulation approved: May 18, 2005 Page 6 of 6