Stated below are the SCIRE activity level control objectives for purchasing and accounts payable.

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1 SCIRE PURCHASING AND ACCOUNTS PAYABLE AND SUMMARY The goals of the purchasing function at SCIRE are to achieve open, competitive and costeffective buying, while adhering to external funding sources for bidding, documentation and reporting and timely payment to vendors for goods and services purchased. Disbursements, including checks, wire transfers and electronic funds transfer transactions are processed by the Accounts Payable section in the SCIRE administrative office. All payments require approval by the appropriate PI or staff that has authority over the projects being charged. PI, staff and SCIRE employees may not procure goods or services for personal benefit through SCIRE channels, regardless of whether SCIRE is reimbursed for such purchases. Stated below are the SCIRE activity level control objectives for purchasing and accounts payable. VENDOR MASTER FILE (VMF) MAINTENANCE Changes to VMF data are made in accordance with proper authorization Access to VMF data is restricted to authorized personnel Access to add, change or delete vendor master files is limited to Accountant Access to posting AP entries is limited to the Accountant PURCHASE ORDER PROCESS Goods or services are purchased only with proper authorization Purchase orders are recorded accurately and in the appropriate period Purchase items only from legally qualified vendors and in conformity with applicable laws, regulations and contracts Loss of sponsored funding Non-compliance with federal and regulations that could lead to disallowance of costs Material misstatement on financial statements

2 SCIRE PURCHASING AND ACCOUNTS PAYABLE AND Appropriately signed purchase requisitions (PR) or check requests are required for all purchases All SCIRE expenditures are approved by the appropriate levels of management All invoices are reviewed by staff who are separate from the purchasing and invoice entry function Invoices or packing slips not received in a timely fashion are investigated Invoices are entered into the accounting system based on the date of the invoice SCIRE policies prohibit the award of a sub award, contract or any covered agreement for program administration, goods, services or other purpose with any suspended or disbarred parties All purchases over $25,000 must include documentation of the need for the purchase, the basis of the contractor selection and the price data All purchases greater than $50,000 must include three bids to ensure competitive pricing RECEIVING PROCESS Recorded receipts are for valid received goods and services. All goods and services received are authorized Goods or services received are recorded accurately and in the appropriate account Goods received are recorded in the appropriate period Misstatement on financial statements Inaccurate reports issued to PI and/or sponsors Packing slips are verified against PR upon receipt and signed by the person who has received the goods Partial shipments are noted on the packing slip and vendor is notified Packing slips are matched with the invoice and purchase order and are entered into the general ledger in the proper period RETURNS PROCESS All rejected items are returned on a timely basis. All goods returned are recorded accurately and in the appropriate period

3 SCIRE PURCHASING AND ACCOUNTS PAYABLE AND All returns must have vendor authorization Outstanding returns are reviewed on a regular basis Vendor credit memos are resolved promptly by cash refund or proper credit to the account PROCESSING ACCOUNTS PAYABLE Supplier invoices received are authorized and accurately recorded on the accounts payable ledger in the appropriate period Access to purchasing, receiving, and accounts payable records is adequately controlled to prevent or detect duplicate or improper payments. Expenses are legitimate and meet restrictions of applicable funding sources Expenses charged are reasonable and support the basic mission of SCIRE, research and education Loss of sponsored funding Non-compliance with federal regulations Inaccurate reporting of grant expenditures to PI and/or sponsor Inaccurate reporting of expenditures and related liability on SCIRE financial statements Jeopardized relationships with SCIRE vendors Jeopardized credit standing of SCIRE Expenses charged are reasonable and support approved research and education projects Accounting software prohibits duplicate invoice numbers to the same vendor Original invoices (fax or scanned copies OK) are required to issue payment All federal grant expenses are reviewed for reasonableness, allowability and allocability as stated in OMB Circular A-122 Adequate records are maintained for unmatched purchase orders, packing slips and unpaid invoices Invoices are reviewed for accuracy Reports are issued after the close of an accounting period

4 SCIRE PURCHASING AND ACCOUNTS PAYABLE AND ACCOUNTS PAYABLE AND PURCHASING GENERAL GUIDELINES Check stock is pre-numbered and kept in a locked drawer in the accounting office Checks are not issued to cash and are not signed in advance Purchase orders, packing slips and invoices are matched prior to entry into MIP Distribution of charges are reviewed by the Accountant AP aging reports are reviewed by Controller on a timely basis Individuals who are independent of approval process prepare checks for disbursement Project activity reports are reviewed by the Accountant before being issued to PI Accounting staff are prohibited from being check signers Signed checks are given to the Office Assistant, who has no access to the accounting system Two signatures are required on all checks HR/PURCHASING ADMINISTRATOR Receive signed purchase requisition from PI or designee Ensure proper signature authority and availability of funds Issue PO number and records in ledger Place orders with approved SCIRE vendors Receive goods and sign packing slip Match quantities ordered on PO to those listed on invoice Note any deviations from original order on packing slip Enter encumbrance in MIP PI initiates return process with SCIRE purchasing office if goods are not acceptable Return good once approval has been received from vendor Forwards return authorization to Accountant for entry into MIP Date stamp Purchase Orders, Check Request forms, invoices and packing slips ACCOUNTANT Perform mathematical checks and verify totals of all PO s and invoices Match PO, packing slip and invoice prior to entry into MIP Enter MIP account codes on form Enter invoices in Accounts Payable module of MIP Attach checks to invoice packets Match check address to address listed on invoice Ensure that credit memos or refunds are received from vendors for items returned Enter credit memos against original invoice if unpaid or request a refund from vendor Review AP invoices prior to posting in MIP Determine allowability of expenditure based on SCIRE policy guidelines and, if for a Federal Program, OMB Circular A-122 Post AP invoice session Select AP invoices to pay Release encumbrance in MIP Cut checks Send check packets to Executive Director

5 SCIRE PURCHASING AND ACCOUNTS PAYABLE AND EXECUTIVE DIRECTOR (ED) Review invoice packet to ensure checks meets SCIRE policy guidelines and allowability Verify multiple bids received by the PI for Federal expenditures that exceed $50,000 Return packet to AP if it does not meet the above-mentioned guidelines Sign checks and give to Office Assistant for distribution BOARD MEMBER Second signature on all checks OFFICE ASSISTANT Receive signed checks from the ED for distribution Attach check stub to invoice. Checks are either mailed or picked up directly by the PI or their designee File check packets in the project files in the accounting office CONTROLLER Review PI expenditures for Federal Awards to ensure allowability and allocability CREDIT CARD PURCHASES The ED is authorized to open credit card accounts and to establish card limits Changes to card limits are authorized by the ED Cards are not to be used for cash advances Credit cards are closely monitored by the ED to ensure proper limits have been set Separate statements are received for each credit card account and are sent unopened to the ED Unopened monthly statements are sent to the ED for review and approval Credit card purchases may be made online All purchases made by credit card must be approved by ED Credit cards are kept in a secure place All transactions are reviewed by the Accountant prior to posting in MIP