Ohio Administrative Code › Title 3358:5 - Clark State College › Chapter 3358:5-11 - College Policies on Expenditures, Technology In General › Section 3358:5-11-10.1 - Purchasing procedures

Current through all regulations passed and filed through July 1, 2024
The purchasing 
								procedures establish
				specific guidelines to ensure adequate internal accounting controls. There are
				four methods by which to complete purchases as an employee of the college:
				initiate a purchase requisition in order to generate a purchase order, initiate
				a check request, utilize the petty cash fund, or utilize a college-issued
				credit card.
(A) Purchase
			 requisition/purchase order process
(1) The
			 purchase requisition is to be used for purchases involving the receipt of
			 goods, when a purchase order is required by the vendor,
			 and/or due to the nature of the purchase other methods are not
			 permissible. The purchase order, which is the formal offer to buy, is
			 initiated from the purchase requisition. The purchase requisition may also be
			 used to request blanket orders. These are used when small repetitive orders are
			 placed with one supplier. A dollar value must be
			 assigned. Blanket purchase orders may be increased by fifty dollars or fifty
			 per cent (whichever is greater of the original amount as needed upon written
			 authorization of the budget manager. If more than this is needed, a new
			 purchase requisition must be issued. All blanket orders expire on June 30
			 of the current fiscal year. A dollar value must be assigned and a new purchase
			 requisition must be issued when the dollar value has been exhausted.
(2) The initiator must complete the following
			 information on the purchase requisition and ensure its accuracy before it can
			 be processed:
(a) Department and "deliver to"
			 information .
(b) Budget
			 code(s) - the first two digits designate the fund (i.e., unrestricted,
			 restricted, auxiliary, or agency); the next five digits designate the
			 department/division; and the last four digits designate the object
			 code.
(c) Name and complete address
			 of vendor.
(d) Quantity,
			 description, cost information and all other pertinent information. If an order
			 form or other document must be submitted to the vendor with the purchase order
			 or if the purchase must be pre-paid, it should be attached to the purchase
			 requisition and noted.
(e) Complete
			 the information regarding the possible requirement of a material safety data
			 sheet (MSDS).
(3) The
			 initiator shall retain a copy for their record which establishes the date the
			 process began and is for the initiator's protection in the event the purchase
			 requisition is lost. The original with appropriate attachments shall be
			 forwarded for signatures as follows:
(a)
			 Budget manager.
(b) Other budget
			 managers (if utilizing more than one departmental budget code to share in the
			 cost of the purchase).
(c) The
			 appropriate hazcom coordinator if the purchase requires an MSDS or if it is
			 unclear whether an MSDS is required.
(d)
										
										Executive
			 director of information technology (for all 
										technology purchases).
(e)
										
										Controller (to verify budget code, availability of
			 funds, mathematical accuracy, completeness of information, proper signatures).
The initiator should allow enough time for the signature
				process to be completed so that vendors are given a reasonable amount of time
				to fill the order once they receive the purchase order. Purchase orders shall
				be mailed to the vendor within five working days of receipt of the purchase
				requisition by the business office.
(4) Purchase requisitions shall be returned
			 for the following reasons:
(a) Incomplete
			 information - returned to initiator.
(b) Inadequate funds in budget/incorrect
			 budget code - returned to budget manager to either request a transfer of funds
			 or to correct the budget code. Budget transfers shall be submitted to the
			 controller for approval.
(c)
			 Incomplete signatures - returned to the appropriate person for
			 signature.
(d)
			 Unapproved/inappropriate purchase - returned to supervisor.
(e) Incomplete or missing information
			 regarding MSDS - returned to initiator.
In order that purchases are not delayed, each signatory must
				ensure accuracy/appropriateness of the purchase.
(5) If a rush or emergency situation arises
			 requiring the immediate need for a purchase order or purchase order number, the
			 initiator shall hand carry the purchase requisition through the approval
			 process. If the purchase requires an MSDS, the initiator shall hand carry the
			 purchase requisition to the appropriate hazcom coordinator. A purchase order or
			 the purchase order number shall be issued by the business office after the
			 approved purchase requisition is received. If an order is called in to the
			 vendor referencing a purchase order number and the original purchase order is
			 also mailed, the word "confirming" shall be noted on the purchase requisition
			 in order to avoid duplicate shipment.
(6) In order to comply with auditing
			 requirements, the college-
									will establish a deadline for processing purchase
			 requisitions for each fiscal year. Purchase requisitions received by the
			 controller after July first  shall be charged to the next fiscal year budget. This is
			 necessary so that goods are ordered, received, and paid within the same fiscal
			 year. This deadline only affects requests for the ordering of goods to be
			 received and does not pertain to travel reimbursements, membership dues,
			 emergency repairs, or any other items that fall under the check request
			 process.
(7) A
			 
									five-part purchase order is generated from a properly
			 processed purchase requisition. The distribution of the purchase order is as
			 follows:
(a) White copy - mailed to vendor
			 with any attachments.
(b) Pink and
			 blue copies - forwarded to initiator
(c)
										
										Goldenrod copy -
			 retained by business office.
(d)
			 Green copy - forwarded to bookstore.
(8) All goods ordered are received by either
			 the receiving department (office services center) or the initiator. Each
			 delivery must be inspected for visible damages and the proper notations must be
			 made on the transport company's receiving document (bill of lading).
(9) The initiator shall:
(a) Check the packing slip against the items
			 received. The items received shall be noted on the blue copy of the purchase
			 order.
(b) Verify that goods are
			 acceptable and payment of the invoice should be made.
(c) If goods are acceptable, initiator shall
			 sign and date the blue copy of the purchase order and return it to the business
			 office along with packing slips and all other documents. Please note that
			 invoice information is often included with the merchandise and shall also be
			 forwarded to the business office.
(d) If goods are not acceptable, initiator
			 shall notify the vendor and arrange a settlement. The business office shall
			 also be notified so that payment can be withheld until the matter is
			 resolved.
(e) If a partial payment
			 is necessary, the initiator shall forward a photocopy of the blue copy of the
			 purchase order to the business office noting the items received and that
			 partial payment should be made. This process shall be repeated as often as
			 necessary until the last item is received. At that time, the blue copy shall be
			 forwarded to the business office as described in paragraph (A)(9)(c) of this
			 rule. Partial shipments shall be noted on the blue copy as "received" with date
			 of receipt.
(10) Payment
			 of an invoice for goods ordered shall not be made until the business office has
			 been notified (as described in paragraphs (A)(9)(c) and (A)(9)(e) of this rule)
			 that goods have been received and are as ordered. In order to keep the
			 college's credit with vendors in good standing, it is important that the blue
			 copies of purchase orders are promptly forwarded to the business office as soon
			 as the items are received and accepted.
(11) A copy of invoices exceeding fifty per
			 cent or fifty dollars (whichever is greater) of the purchase order amount shall
			 be returned to the initiating department/division for authorization to pay.
			 Payments for these substantial variances shall also require the signature of
			 the vice president for business affairs. It is important to note that if the
			 reason for the increase is due to additional items being purchased against that
			 purchase order without the prior authorization of the vice president for
			 business affairs it may cause the initiator to be held personally liable for
			 the additional cost.
(12) For all
			 capital inventory items (object code 5940), the business office shall forward,
			 in addition to the green copy of the purchase order, a copy of the invoice and
			 all other relevant documentation to the manager of bookstore and office
			 services. This information is used to record the value of the asset in the
			 inventory records and initiates the process for tagging the
			 equipment.