Kansas Administrative Regulations › Agency 112 - KANSAS RACING AND GAMING COMMISSION › Article 104 - MINIMUM INTERNAL CONTROL SYSTEM › Section 112-104-42 - Purchasing

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each facility
			 manager's internal control system shall include internal controls for
			 purchasing.
(b) The internal
			 controls shall indicate the amount of a single transaction or series of related
			 transactions that an individual or a group of employees, owners, or directors
			 may approve.
(c) The internal
			 controls shall include the following information for both manual and
			 computerized systems:
(1) Steps for initiating
			 purchasing procedures;
(2) detailed
			 procedures for the preparation and distribution of purchase orders, including
			 the following:
(A) The amounts that can be
			 authorized by various positions or levels of personnel;
(B) the sequence of required signatures and
			 distribution of each part of the purchase order;
(C) a statement that purchase orders shall be
			 issued only for a specific dollar amount. Each change to an issued purchase
			 order shall be returned to the purchasing department to initiate an amended
			 purchase order and obtain additional approvals, if necessary; and
(D) the maintenance of a purchase order
			 log;
(3) detailed
			 procedures for issuing and approving blanket purchase orders for purchases of
			 goods or services, including the following:
(A) The competitive bid requirements for
			 blanket purchase orders;
(B) a
			 statement that each blanket purchase order shall include a maximum amount, the
			 effective date, and the expiration date; and
(C) controlling, documenting, and monitoring
			 blanket purchase orders;
(4) requirements for competitive bidding
			 process, including the following:
(A) The
			 number of bids required. A minimum of two bids shall be required;
(B) a statement that the purchasing
			 department shall have the final responsibility for obtaining competitive bids.
			 The originating departments may provide the amount budgeted for the purchase,
			 cost limitations, and vendor recommendations;
(C) the steps for documenting bids and the
			 minimum amount required for written bids;
(D) a statement that all competitive bids
			 received shall be confidential and shall not be disclosed to any other vendors;
			 and
(E) criteria for qualifying
			 approved vendors of goods or services based on "fair market value," considering
			 factors including quality, service, and price;
(5) detailed procedures and approval process
			 for emergency purchases, including the following:
(A) A statement that emergency purchases
			 shall occur after normal business hours, on weekends or holidays or, in case of
			 immediate need of goods or services, in response to unusual occurrences during
			 normal business hours;
(B) a
			 statement that approvals may be verbal until purchasing documentation is
			 prepared. Purchasing documentation shall be finalized within five
			 days;
(C) a statement on the
			 purchase order documenting the reason for the emergency purchase; and
(D) the maintenance of an emergency purchase
			 order log;
(6) detailed
			 procedures to ensure that vendor files contain all company-required forms,
			 documentation, and approvals;
(7) a
			 prohibition against the purchase or lease of gaming equipment or supplies from
			 other than a licensed supplier;
(8)
			 detailed procedures for contracts, including the following:
(A) The management levels and the contract
			 amounts that managers may negotiate and execute;
(B) a statement that all contracts shall be
			 subject to the competitive bid process;
(C) the terms of all contracts;
(D) the approval process for payments made
			 against an executed contract; and
(E) the distribution and filing of executed
			 contracts;
(9) if
			 applicable, detailed procedures for the use of purchasing cards, including the
			 following:
(A) Authorized position titles to
			 be purchasing card holders and their spending limits, both single-transaction
			 and monthly;
(B) items that may be
			 purchased with the purchasing card;
(C) use of the purchasing card with approved
			 vendors only, if applicable;
(D)
			 responsibilities of the holder of the purchasing card, including maintaining
			 receipts and verifying monthly statements;
(E) responsibilities of the manager of the
			 purchasing card holder, including approving monthly statements;
(F) disputing fraudulent or incorrect
			 charges;
(G) payment to vendors for
			 purchasing card charges; and
(H)
			 the name of the department or position, as stated in the facility manager's
			 internal controls, that is responsible for overseeing the purchasing card
			 process;
(10) detailed
			 procedures for the receipt of all goods received by an employee independent of
			 the purchasing department as specified in the facility manager's internal
			 controls, including the following:
(A) The
			 verification process for the receipt of goods, including damaged goods, partial
			 shipments, and over-shipments;
(B)
			 the distribution of all receiving documentation; and
(C) the maintenance of receiving
			 documentation; and
(11)
			 payment of vendor invoices, including procedures for the following:
(A) Each time the invoice amount disagrees
			 with the purchase documentation;
(B) processing non-invoice payments;
			 and
(C) the approval process for
			 the utilization of a check request form, if applicable.