Purchasing Procedures Manual
Table of Contents
INTRODUCTION .............................................................................................................. 2
PURCHASING PROCEDURES ....................................................................................... 3
PROCURING INSTRUCTIONS........................................................................................ 4
REQUISITION TYPES ...................................................................................................... 5
INFORMATION REQUIRED ........................................................................................... 7
ATTACHMENTS ............................................................................................................... 9
AUTHORIZED SIGNATURE REQUIREMENTS ........................................................... 9
PURCHASE ORDERS ..................................................................................................... 10
BLANKET PURCHASE ORDER POLICY/PROCEDURE ........................................... 11
INVENTORY ................................................................................................................... 13
Page 1 of 13
Revised 8/23/2012
INTRODUCTION
These procedures have been updated with the purpose of making
available to faculty, staff, and administrators useful information regarding the
purchasing procedures of the South Orange County Community College District.
It is one of the Purchasing Department’s goals to keep this information current by
periodically updating the Purchasing Manual. All procedures described herein
are in conformance with the laws of the State of California, the rules and
regulations of the District’s Board of Trustees, and the high standards of
purchasing practice for Governmental Agencies in California.
These procedures have been established not only for the protection of the
South Orange County Community College District but also for the benefit of its
vendors. They promote fair and unbiased practices by the District; guarantee the
process of equal and competitive bidding; and serve as evidence to the citizens
of this District that a conscientious effort is being made by the District to obtain
the best prices available to conserve its resources.
It is sincerely hoped that these procedures will provide assistance to
District and colleges’ staff and promote a better understanding of their
interrelationship with the Purchasing Department. It is also hoped that vendors
will use them as a guide in dealing with the District.
REVISED 8/23/2012
PURCHASING PROCEDURES
1. These Purchasing procedures are in accordance with Sections 54202 and
54204 of the California Government Code. They have been established to
assure fairness and professionalism in all purchases as well as securing the
maximum value for the funds expended.
2. The Board of Trustees of the South Orange County Community College
District has the authority to purchase on behalf of the district and has sole
responsibility for all purchases of materials and services.
3. The district has designated the Purchasing and Facilities Planning
Department to carry out all purchasing activities for the district.
4. It shall be the duty of the Director of Purchasing and Facilities Planning and
his/ her staff to assure compliance with all the applicable provisions of the law
and with these policies and procedures.
5. The purchasing functions shall be carried out in a professional and efficient
manner consistent with service to the district and sound business practice
and shall be based upon the highest standards of fairness, honesty and
integrity.
6. The Purchasing and Facilities Planning Department is responsible for
providing purchasing services to all divisions and departments of the District
and colleges. To accomplish this purpose, the following fundamental
functions shall be fulfilled:
a.
Buy the proper product for the purpose required;
b.
Have the product available when needed;
c.
Buy the proper amount of the product;
d.
Buy at the proper price; and
e.
Buy without favor or prejudice.
7. At every Board of Trustees meeting, the Accounts Payable Department shall
submit
for approval a listing of all purchase orders issued.
REVISED 8/23/2012
PROCURING INSTRUCTIONS
1.
All requests for prices, repair service, and all purchasing shall be made by
the Purchasing and Facilities Planning Department. Employees shall not
commit the District to any purchase or service obligation except through
the Purchasing Department.
2.
No employee shall make any commitment to a vendor, by implication or
otherwise, on preference for any product or source or give any information
regarding performance or price which may be detrimental to the
competitive bidding process.
3.
All communications with suppliers shall be through the Purchasing and
Facilities Department, except in special cases where technical matters
make it advisable for the requisitioner to discuss the details with a vendor.
No communication between requisitioner and vendor shall take place
without the knowledge and approval of purchasing staff.
4.
Employees of the District shall have no personal interest in any of the
following:
5.
a.
A contract between the District and the Employee;
b.
A contract between the District and a partnership, or unincorporated association of which the employee is a partner or in
which they are the owner or holder, directly or indirectly, of a
proprietorship interest; or
c.
A contract between the District and a corporation in which an
employee is the owner or holder, directly or indirectly, of
outstanding common stock.
The selection of the material and services needed is the responsibility of
the requisitioning department. The requisitioner shall provide clear
specifications describing his/ her requirements.
Brand names or
manufacturers may be used for the purpose of facilitating the description
but, unless specifically excepted by law, they shall be deemed to be
followed by the words “or equal”. The Purchasing and Facilities Planning
Department shall purchase materials and services as requested from the
supplier offering the most advantageous terms to the district.
REVISED 8/23/2012
REQUISITION TYPES
1.
Materials and services may be requested by departments and divisions
using the appropriate forms. Separate requisitions should be submitted
for each type of purchase, i.e. equipment, supplies, services, etc.
1.1.
The following is a description of the different on–line forms:
A. District’s and colleges’ funds:
A.1 Standard PO Requisition. This type of requisition should be
used to request the purchase of items from outside vendors. It
has line items, so quantity, description and price for each item
may be entered. As the different items are received, the
warehouse records receipt of each item in Escape and the
Accounts Payable Department is able to process payments. If
advance payment is required and items will be received at the
warehouse, a note saying “Pay in Advance” should be included
in the body of the requisition. Also, if payment in advance is
required for equipment with a unit price of more than $1,000
(including tax), a standard requisition must be used so the item
can be inventoried. NOTE: Although the program will allow you
to enter more than 26 lines of description, only 26 lines will
print on the purchase order. If your description needs to be
longer, select F2 for another line item (do NOT include unit
cost) and enter “CONTINUED” across the top of the description
box.
A.2 Blanket PO Requisition. This form has a single, note-pad
style description area which will print 26 lines of description. It
should be used for open purchase orders for supplies; annual
purchase orders; maintenance agreements; all service
contracts (object code 5811; this does not include repairs
which are object code 5650 and should be done on a direct pay
requisition); paid in advance (except when items are to be
received at the warehouse, see above); memberships;
magazine subscriptions; construction contracts; and in general
for all purchases where payments are to be made without items
being received by the warehouse. NOTE: A blanket requisition
must always be used for contract services (object code 5811),
even if the work has been completed.
REVISED 8/23/2012
A.3 Direct Pay Requisition. This form should be used for the
following:
a)
b)
c)
d)
e)
f)
Travel (refer to the travel section of this manual).
Conferences
Credit card purchases
Repairs
Purchases which are completed, with an invoice or receipt
Reimbursements as authorized in the respective section of
this manual.
A.4 Stores Requisition:
This form should be used to request items stocked in the
warehouse. It also has individual line items where each stock
item may be listed.
B. Other Organizations Requisitions:
These forms should be used when purchases are being paid with
funds from one of the following organizations:
1)
2)
3)
4)
5)
IVC Foundation
Saddleback Foundation
Associated Students Government
Saddleback Community Education
IVC Community Education
Under each one of the above organizations there are several
options:
a) PO Requisition (standard line item requisition)
b) Blanket Requisition
c) Direct Pay Requisition
These options are similar to the respective four basic types of
requisitions described for district’s and colleges’ funds in paragraph
1A above. Requisitioners should choose the appropriate option
under the applicable organization. For stores requisitions these
organizations should continue using the old manual forms.
REVISED 8/23/2012
INFORMATION REQUIRED
1.
Standard PO Requisition. The following information is needed:
a)
Requisitioner. Enter the name of the requisitioner and department
and telephone extension in the same field (abbreviate as
necessary). Example:
J. Smith/ Purch/ 4680
It is important that you ALWAYS enter this information so that we
may contact you and so that we have an address to forward your
copy of the completed Purchase Order.
b)
c)
d)
e)
f)
g)
Order site. This is the location where the items are to be delivered.
Enter the site code.
Ship to site. This is the campus where the vendor will ship the
merchandise, the codes are: SC for Saddleback College, IVC for
Irvine Valley College, and ATEP for the Advanced Technology &
Education Park. NOTE: this must be manually entered or the field
will default to the order site code and the PO will print without an
address.
Room number. This is the room in the above location where the
items are to be delivered. NOTE: no more than 5 characters will
print on PO.
Information. Enter a brief description of the contents of the
requisition. This description also appears, along with the total cost
of the order, on the summary of purchase orders submitted for
board approval, therefore, the description must be consistent with
the price. For example do not write “chair” if the price is several
thousand dollars, write “classroom furniture” or specify the number
of chairs. Also, do not write “miscellaneous”, a more specific
description is needed for the board report. This description will not
print on the Purchase Order. For credit card purchases, enter the
name of the vendor from whom the item or service was purchased.
Do not use all capital letters in this field.
Vendor. This field is not mandatory but if there is a recommended
vendor it should be entered. Only vendors already in the vendor list
can be entered, if the recommended vendor is not in the list, the
name, address, phone and fax numbers should be noted in the
notepad. (F10) Purchasing staff will assign a vendor number. If
there is more than one vendor, additional information may be
entered in the notepad.
Account number. Requisitioner shall verify that the account used is
correct, including that the account with the appropriate object code
is used (4600 for office supplies, etc.). Also verify the account
REVISED 8/23/2012
h)
balance to make sure that funds are available, the system will not
allow requisitions with insufficient funds to go through.
Line items. Enter all line items specifying for each one of the
following:
1.
2.
3.
i)
Quantity.
Unit cost. This is estimate cost for budgeting purposes.
Purchasing staff is available to assist requisitioners in
estimating the costs.
Description. Describe in the fullest detail possible. Include
stock number, brand, make/ model, color, size, options or
accessories required, etc. Also include information regarding
optional services required (assembly, installation, training, etc.);
regarding equipment utility requirements (electrical voltage,
etc.); and information regarding any trade-ins. Remember,
although the system will allow you to continue your description
for more than 26 lines in both the Blanket & Standard PO, only
26 lines will print.
Delivery date. In the appropriate field enter a realistic delivery date
required.
2.
Blanket Requisition. Information required is similar to the above, except
that the description of the purchase is to be entered in the notepad-style
description area. (26 lines are available for your description) In all cases,
all required documentation (pro-forma invoices, subscription renewal
notices, maintenance agreement renewal notices, etc.) must be submitted
to the Purchasing Department attached to a “snapshot” (F6) of the
requisition. A note should be typed in the note pad indicating how the
back up information will be sent to Purchasing (inter office mail, fax, email, etc.) and also indicating the date sent.
3.
Direct Pay Requisition. For specific requirements for travel, credit card,
and other type of requisitions, refer to the respective section in this
manual. For all completed requisitions where an invoice already exists,
the invoice must be sent to Accounts Payable attached to a “snapshot”
(F6) of the requisition. In all other cases, the required documentation
(registration forms, hotel information, repair estimates, etc.) must be
transmitted to the Purchasing Department with a “snap shot” of the
requisition. “Snap shots” for conference/ travel requisitions must be faxed
to Purchasing immediately, while the requisition is still in “open” or
“submitted” status.
4.
Stores Requisitions. Information required is also similar to the above,
except that an item number must be entered for each item. To view a list
REVISED 8/23/2012
of all items and their numbers press shift enter when you are in the item #
field.
5.
Office Supplies Requisitions. Requisitioner must enter for each line item:
a)
b)
c)
d)
Item catalog number.
Quantity.
Unit price.
Description.
ATTACHMENTS
In all cases, when documentation is necessary to process the requisition, the
requisitioner should attach all the documents to the Requisition using the
attachments tab.
Examples of cases when this is required are:





Pay in advance requisitions must include an invoice, proforma invoice, notice
of renewal, or similar documentation that shows the amounts to be paid.
Direct pay requisitions must include itemized original receipts (credit card
slips or cancelled checks are not acceptable)
Travel requisitions must include all pertinent information as described in the
travel section of this manual.
When the vendor requires an order form to be included with the purchase
order, requisitions for books or similar items must include the order form.
All requisitions that require contract execution prior to approval shall include
attachment of executed contract.
AUTHORIZED SIGNATURE REQUIREMENTS:
1.
All requisitions must go through the established approval process. Until all
required approvals are completed, the Purchasing Department cannot
begin working on a requisition.
2.
Approver should scrutinize all requisitions in the best interest of the
District.
3.
Approver is responsible for checking that the account number and making
sure that the appropriate object code is used.
4.
Individuals responsible for approving requisitions should periodically check
their computers to see if there are requisitions waiting for their approval.
REVISED 8/23/2012
5.
All Escape users may access the Approval tab to determine if approvals
are moving forward. A date will appear after the last approver’s name. The
first no for which no date appears is the next approver in the approval
process.
PURCHASE ORDERS
1.
A Purchase Order is a legal document between the South Orange County
Community College District and the vendor. Any deviation from the
original purchase shall be agreed upon by both parties. Members of the
District, Irvine Valley College or Saddleback College staff shall not contact
the vendor to request exchange, cancel, increase, duplicate, etc., without
the coordination of the Purchasing Department.
2.
Order of distribution for hardcopy documents:
Blue:
Immediate supervisor (requesting department)
Goldenrod:
Purchasing Department with white copy of requisition
attached and backup, quote information attached.
Green:
Receiving Department (Typically Warehouse)
Pink:
Accounts Payable for alphabetical filing until complete and
paid
Yellow:
Business Office for numerical filing
REVISED 8/23/2012
BLANKET PURCHASE ORDER POLICY/PROCEDURE
1.
2.
When recurring purchases of relatively small value are requested from a
single vendor throughout a period of time, a blanket purchase order to that
vendor may be issued. Authorized Individuals then may purchase
unspecified supplies as needed through a defined period (i.e., fabric from
a fabric house for a theater production). Considerable control is required
with a blanket purchase order and it is prudent to curb possible abuse or
misuses by imposing the following restrictions on users:
a.
Specifying or limiting categories or materials.
b.
Naming those authorized to use the blanket purchase order (if none
is designated, the Purchasing department will put the requisitioner’s
name as authorized user).
c.
Limiting the total amount of the blanket purchase order. Dollar
amount should be based on the cost of items to be purchased and
the anticipated needs during the specified period.
d.
In no case may blanket purchase orders be used to buy equipment
items.
e.
Blanket purchase orders are not to be used to by-pass the standard
purchasing procedures.
Procedure
a.
A blanket purchase order requisition must be submitted to
Purchasing. Requisition shall include the name of the vendor,
amount requested, correct account number, names of authorized
users, and all required approvals. In addition, it should be noted
whether the items will be picked up by the authorized users or
delivered to the Warehouse.
b.
The green copy of the purchase order will be sent to the initiator
and should be used to monitor the purchases made and keep track
of the balance. If any items are to be received by the Warehouse,
a copy of the requisition will be sent to the Warehouse by the
Purchasing Department.
REVISED 8/23/2012
3.
c.
Immediately after completing a transaction against a blanket
purchase order, the official receipt showing detailed list of items
and prices, date, and reference to the purchase order number,
must be signed by the purchaser and forwarded to Accounts
Payable.
d.
When purchase order is completed, either because all funds have
been expended or because there is no further need for it, the green
copy of the purchase order should be marked "COMPLETED",
signed, dated, and sent to Accounts Payable. Accounting will
unencumber any unused funds.
The manager requesting the blanket purchase order shall be responsible
for ensuring that the above procedure is followed. Prior to issuing a
blanket purchase order, the Purchasing department shall verify that all
previous blanket purchase orders for that department and vendor have
been completed in accordance with this procedure.
REVISED 8/23/2012
INVENTORY
1. The District shall create and maintain a Fixed Asset Inventory for all
equipment items valued at $1,000 dollars or more.
2. This will be accomplished following the following procedures:
2.1
Buyer creates a Fixed Asset record in the electronic purchasing
system at the time of issuing the Purchase Order.
2.2
Warehouse receives item, assigns tag number and location based
on the Division number on the Purchase Order.
2.3
Warehouse completes fixed asset record in the system, adding
receiving date, tag number, Division/Department number, and serial
number.
2.4
Warehouse also writes the tag number on the green copy of the
Purchase Order. Purchase Order is then sent to Accounts
Payable.
2.5
Warehouse delivers item to the Department.
3. The Purchasing Department will maintain and update the Fixed Assets
Inventory. Every year, on or about November 1, Purchasing will generate
a Fixed Assets Report by department and forward it to every department.
Departments are required to verify the information on the report, note
discrepancies, and return to Purchasing with comments.
4. If Fixed Assets items need to be moved from the location listed on the
inventory report, it will be the responsibility of the Department to create a
Property Transfer Request, obtain the necessary signatures and submit
to purchasing.
5. If Fixed Assets items are missing or have been stolen from the location
listed on the inventory report, it will be the responsibility of the Department
to create an Unusual Occurrence Report, obtain the necessary
signatures and submit to Purchasing.
6. Purchasing will update the Fixed Assets inventory using information
contained in the Property Transfer and Unusual Occurrence Reports.
7. See Warehouse Sharepoint for information on Surplus.
REVISED 8/23/2012