Purchasing Manual
Introduction CONTENT Page 1 Purpose of the Purchasing Department Purchase Orders a. Processing of Purchase Requisition b. Processing of Purchase Orders c. Distribution of Purchase Orders d. Blanket Purchase Order e. Receipt of Items f. Follow-Up of Orders g. Increasing, Decreasing, Changing of Purchase Orders Bidding Requirements a. Dollar Limits b. Exceptions to Bidding Requirements c. Bid Specifications d. Receipt and Opening of Bids Equipment Inventory Procedures a. Additions b. Deletions c. Transfers d. Corrections e. Inventory Report Disposition of Personal Property Appendix 1.WinCap System a. Adding Purchase Orders b. Mass Approve/Issue of Purchase Orders c. PO Search d. PO Status Report e. Modifying Purchase Orders and Vendors f. Object Codes 2. Flow Charts a. Purchasing Procedure b. Bidding c. Equipment Inventory Procedure 2-3 4-5 4 4 4 5 5 5 5 6-8 6 7 7 8 9-12 9 10 10 11 12 13 14-32 14-26 14-21 22-24 24 25 25 26 27-29 30 31-32
INTRODUCTION The purpose of this manual is to define the responsibilities of the Purchasing Department and to clarify and streamline its procedures so as to render the process of purchasing as efficient as possible. The purchasing of supplies, equipment and services for an organization the size of Questar III is a substantial task requiring standardized procedures to comply with state laws and our Board policies. The Purchasing Agent is responsible for insuring that these procedures result in maximum utilization of purchasing dollars, while satisfying the legitimate needs of staff members requiring goods and services. Since purchasing impacts all staff members, it is important that the procedures be understood and followed by the whole organization. This manual should explain the framework within which Questar III's Purchasing Department operates. However, it cannot respond to all the questions that will inevitably arise. The Purchasing Agent should be viewed as the resource person responsible for handling questions at any stage in the purchasing process. This individual can be of great assistance even before the formalizing of a request in addressing issues of new products and/or suppliers, best buying practices, or coordinated purchasing. 1
Purpose of Purchasing Department It is the function of the Purchasing Department to insure that individuals requesting goods and/or services receive the proper materials or services within a reasonable period of time and at a reasonable cost. The objectives of the Purchasing Department are: a) Acquire services from vendors in the most cost effective manner guaranteeing favorable pricing to the BOCES. b) Maintain internal control within the BOCES operation, including delivery, receiving, distribution, storage and payment. c) Achieve cost reductions, where possible. The purpose of the Purchasing Department is: a) Provide for the efficient and effective deployment of BOCES revenue. b) Provide efficient and accurate reporting of all BOCES purchases and resulting payments to vendors. c) Provide data for budget preparation. d) Provide uniformity in the acquisition of supplies, equipment and services. e) Provide a method to meet the regulations and legal statutes established by the State of New York, the Commissioner of Education and BOCES Board. f) Provide services and information to BOCES staff members relative to new products, suppliers, economic information and forecast on product supply and cost. The purpose of this manual is: a) Document the responsibilities and authority of the purchasing agent. b) Educate administrators and staff on purchasing policies. c) Provide technical assistance with the WinCap purchasing module. 2
The purchasing agent has the following responsibilities and authority: a) Ensure that BOCES meets the competitive bidding legal requirements. b) Determine which purchases require a bid or a Request For Proposal (RFP). c) Determine which purchasing technique is most appropriate to acquire supplies or equipment. d) Approve all purchase orders and maintain the appropriate records. e) Add approved vendors to the master vendor file. 3
Processing of Purchase Requisitions The requisition for supplies, equipment, and services is initiated by the user. The information is entered onto the WinCap system by administrative assistants (see Appendix 1). The following information is required a. Vendor b. Requestor c. Complete description, including quantity and catalog number d. Unit price and extension e. Account code general and special aid program codes cannot be combined on a single purchase requisitions f. Appropriate supervisor approval. Requisitions for over $1000 require the supervisor s approval as well as their administrator s approval. g. Appropriate special instructions box must be checked when necessary. Processing of Purchase Orders Once the purchase requisition is entered and approved by the administrative assistant it will automatically forward to the appropriate administrator for approval. If the order is less than $1000, once approved, it will then automatically be sent to the purchasing agent for processing. If the order is over $1000 it will go from the administrator to their supervisor for approval and then to the purchasing agent for processing. After the purchasing agent has approved the requisition it will be made into a purchase order. The purchase order is then printed and distributed Distribution of Purchase Orders Once a purchase order has been approved by the purchasing agent it will be printed in the purchasing department. Each purchase order has four copies printed in different colors as follows: Vendor Copy this is the white copy of the purchase order. This copy is mailed to the vendor unless it is a blanket and or the items are to be picked up. Accounts Payable Copy This copy is blue. All quotes and back up documentation is attached to this copy which is filed in the accounts payable department. Receiving Copy This copy is green. It is sent to the requisitioning department or to the warehouse if the items will be delivered to the warehouse. This copy is kept until the items are received or the services have been preformed at which time it should be signed and sent to accounts payable. File Copy This copy is pink. It is sent to the requisitioning department for their file. 4
Blanket Purchase Orders Blanket Purchase Orders may be set up with Vendors from which various, low cost items will be purchased over a fiscal year and to cover needs requiring partial payments throughout the year, such as mileage and utilities. Blanket orders for supplies shall not exceed $500. It is of extreme importance that receipts be turned in to Supervisors, partial payment processed against the blanket order, and both be sent to Accounts Payable after each purchase. The WinCap accounting system keeps track of the monies being spent against each Purchase Order by budget code. Blanket Purchase Orders for mileage and utilities can be increased if necessary by submitting an e-mail request to the Purchasing Department. The request must include the Purchase Order number, account code and amount for which it is to be increased. Receipt of Items As stated above, all items should be delivered to the warehouse. The warehouse supervisor will send the merchandise on to the requisitioner. If the requisitioner finds that the wrong item has been ordered or that there is a problem with the order they should contact the purchasing department immediately. Follow-Up of Orders The urgency for follow-up will depend on circumstances such as the need for items by a certain date, experience with the vendor, market conditions, and nature of the material to be purchased. The requisitioner will notify the purchasing department if the order has not been received within 30 days or a reasonable length of time. The purchasing department will conduct the necessary follow-up. Increasing, Decreasing, Changing Purchase Orders Purchase orders can be changed only by the purchasing agent. In order to change a purchase order, the requesting department should send an e-mail to the purchasing agent with the change required and the purchase order number. 5
Bidding Requirements All tangible property purchases i.e. supplies and equipment in excess of $20,000 and all contracts for public works in excess of $35,000 require a sealed bid which has been advertised and publicly opened. These are total annual dollar thresholds that apply to each fiscal year. When purchases of tangible property i.e. supplies and equipment for less than $20,000 and public works for less than $35,000 the following documentation is required. Purchase of Supplies and Equipment Estimated Amount Requirement Responsibility Of Purchase Less than $5,000 No Quotes Required At the discretion of the Purchasing Agent $5,000 - $19,999 At least three written quotes Obtained by the requsitioner and attached to the pending order. $20,000 and Over Public, Advertised Bid Obtained by the Purchasing Agent Public Works/Service Contracts Estimated Amount Requirement Responsibility Of Purchase Less than $9,999 No Quotes Required At the discretion of the Purchasing Agent $10,000 to $34,999 At least three written quotes Obtained by the requsitioner and attached to the pending order. $35,000 and Over Public, Advertised Bid Obtained by the Purchasing Agent. 6
Exceptions to Bidding Requirements The following can be excluded from the bid requirements: a) A "public emergency", that being a situation which arises as a result of an accident or other unforeseen occurrence whereby circumstances affecting public buildings, public property, or the life, health or safety of the children or staff therein require immediate action which cannot await competitive bidding (general Municipal Law, Section 103, subdivision 4) b) Professional services, such as those performed by engineers, architects, attorneys, and insurance advisors, c) Supplies or services which can be obtained from only one source d) Equipment purchased from the Federal government, New York State, another political entity, school districts or BOCES, e) Textbooks or library books where the publisher is really the only supplier, f) Reimbursable supplies required as a part of an occupational program such as student kits and customer vehicle parts. g) Good and services to be purchased through the State Office of General Services, New York State Department of Correctional Services, or New York State Industries for the Handicapped, or h) Surplus items purchased from another BOCES, a school district, or from the Federal Property Assistance Distribution Center administered by OGS. Bid Specifications a) May specify a brand name, manufacturer's part number, etc., but an equivalent product would ordinarily be acceptable. b) May be awarded in total or by item, however, such a statement should appear in the Special Instructions to bidders or General Conditions of the bid c) May be rejected for reasons of excessive costs, unreliable vendor, failure to meet product or general conditions specifications, incomplete or incorrect execution of bid document, or d) May not be offered by a net discount off all items in a vendor' s catalogue. 7
Receipt and Opening of Bids: The Questar III Board Clerk will receive all bids at the Administration Building, 10 Empire State Blvd., Castleton, NY 12033. All bids will be publicly opened and read. No bid may be withdrawn for a period of forty-five (45) days after date of opening. Envelope containing the bids must be sealed, and bear the bidder's name, address, the title of the bid and the bid due date. 8
Equipment Inventory Procedures Items costing over $500 for general fund or $5000 for federal funds must be included in our fixed asset inventory. The following process has been established to complete inventory transactions. Addition Staff Member 1. Requests equipment from Supervisor. Supervisor 1. Approves the requisition inwincap. Business Office 1. Purchasing agent approves the purchase requisition and assigns a purchase order number. 2. Purchasing Agent issues purchase order. (a) Sends white PO to supplier (b) Sends blue PO to accounts payable (c) Sends pink PO to requesting staff members supervisor (d) Sends green PO to warehouse supervisor 3. Accounts payable receives green PO, packing slip, and Inventory Change Report from warehouse supervisor and attached to blue PO 4. Accounts Payable verifies information and processes payment. 5. Accounts Payable forwards verified Inventory Change Report to the warehouse supervisor to be entered into the fixed asset management system. Warehouse Supervisor 1. Receives green copy of PO when order is placed 2. Receives equipment (a) Sends packing slip to Accounts Payable in the Business Office with signed green PO copy. Completes Inventory Change Report. (b) When making partial payments, a completed Partial Payment Authorization Forms must be forwarded to Accounts Payable along with completed Inventory Change Report for the item(s) of equipment represented on the Partial Payment Authorization Form. 3. Assigns inventory control number to equipment 4. Warehouse Supervisor receives Inventory Change Report from Accounts Payable and files for use in updating master inventory records 9
Deletion Staff Member 1. Requests disposal of equipment from Supervisor Supervisor 1. Approves disposal of equipment 2. Completes all steps outlined by surplus property policy 3. Arranges for physical transfer 4. Completes Inventory Change Report and sends to the warehouse supervisor Warehouse Supervisor 1. Warehouse Supervisor receives approved Inventory Change Report 2. Warehouse Supervisor records deletion 3. Warehouse Supervisor files change report for future reference Transfer Staff Member 1. Requests transfer of equipment Supervisor 1. Approves equipment transfer 2. Completes inventory change report and sends to the warehouse supervisor 3. Arranges for physical transfer Warehouse Supervisor 1. Warehouse Supervisor receives Inventory Change Report 2. Warehouse Supervisor records transfer 3. Warehouse Supervisor files change reports for future reference 10
Correction Staff Member 1. Receives assigned inventory printout (September and June) 2. Verifies printout and returns to Supervisor Supervisor 1. Receives assigned inventory printout (September and June) 2. Sends printout to staff for verification 3. Corrects and/or receives corrected printout and returns to warehouse manager Warehouse Manager 1. Warehouse Manager provides assigned inventory printouts to all Program Supervisors and special program staff ( September and June) 2. Warehouse Supervisor receives corrected inventory printout compares with master copy 3. Makes corrections to data 11
page of (1) Account Name (2) Type Transaction: ADDITION ( ) DELETION ( ) TRANSFER ( ) CORRECTION ( ) ADTC ADTC ADTC T T T AC ADTC AC ADTC AC AC AC Current Former Prop Class Identi fication DESCRIPTION Acquistion DATE VENDOR PURCHASE Location Location or Cost ACQUIRED ORDER Equip No. (13) Dollars Bldg. Room Person Bldg. Area Person Code only Month Year (4) (5) (7) (8) (10) (11) Item Name, Brand Name, Model # Serial # Dimensions (14) (15) (16) (19) 12
Disposition of Personal Property Regular Assessment of Inventory s Condition Questar III administrative personnel shall be responsible for identifying obsolete and surplus equipment and supplies within their area(s) of responsibility. Periodically, a determination shall be made as to what equipment, supplies, or materials are obsolete and cannot be salvaged or utilized effectively or economically by Questar III. Procedures for Disposing of Personal Property All surplus equipment, supplies, or other personal property shall be sold only to the highest bidder. Any personal property whose market value would classify it as valuable personal property, but which is determined not to be marketable because it is damaged or in poor condition or has not been marketable after at least one prior attempt at competitive bidding, may be disposed of by Questar III in the most effective and efficient manner. No personal property shall be disposed of, even if it is determined to have little or no marketable value, without the prior approval of the District Superintendent or her/his designee. Prior to classifying it as disposable, an item of personal property shall be considered by the District Superintendent or her/his designee for reassignment to other locations, programs, or operations within Questar III as needed, or for storage in a central location if it has potential future usefulness. All sales of surplus or obsolete personal property by Questar III shall be offered to the public, except that a Questar III employee or official shall be excluded from purchasing surplused Questar III equipment. Notice of the sale or requests for bids shall be made through advertisements placed in local newspapers, and by other means calculated to assure public awareness. 13
Adding a Machine Generated Purchase Order-Information Tab To do a system generated Purchase order the process can be completed with the following three items: o o o A Vendor (Who is providing the goods or service) What goods or services are to be purchased From what budget codes are the items to be paid The following outlines the steps for generating a purchase order. Note: All fields have a search option containing tables with lists of requested information. To access the search, left click on the magnifying glass. Specify a Vendor by typing in a vendor number or searching the vendor file. Under most circumstances a Requestor will be defaulted based on security defined for the individual inputting the order. If a different requestor is desired, specify the requestor code or search the requestor file. In the event a requestor is specified, other fields on the PO information screen may fill with values, such as the other district defined tables, which could include Building and Ordered by, in addition to the shipping address. The 14
Ordered by or Room field should be filled in with the person whom the merchandise will be used by. Using the checkboxes on the right side of the screen, indicate if the following conditions apply to this order: Blanket Confirming Print Original Attachment Issue & Pay Prepay Manual If the Issue & Pay, Prepay, or Attachment options are selected, a notation will print on the bottom of the purchase order indicating the special instruction checked. When this notation is present the Purchasing Agent will not approve the order without back-up attachments. If multiple order addresses for the selected vendor are available, a different address can be specified using the order address ID field in the lower left corner of screen. If a ship to address for the items ordered is not consistent with what appears, specify a ship to address using the ship address ID field in the lower right corner of the screen. Deliveries should be sent to the warehouse except for in very rare cases. Contact the purchasing department if delivery is needed to a different location. A checkbox appears to the right of the shipping address ID field that can be used to suppress a shipping address from appearing on the order. Blankets for mileage as well as for stores where the staff person will be shopping require a copy of the purchase order. In these cases after clicking on Blanket you will also need to click on Print Original. 15
Adding a Machine Generated Purchase Order-Line Items Tab The line items form is used to describe what goods or services are to be purchased on the order, what budget accounts will be charged, the cost of the item(s) ordered, and the discounts, shipping, and contingent expense that may be associated with the order. In the column marked description, use a line to describe each item to be purchased. Included in this field would be the item or catalog numbers if required. For Technology Purchases, the person who will be using the items should also be included with the item. If more than 59 characters of description are required, double clicking in the line item description field will place the cursor in the expanded description field at the bottom of the display, along with any text that might have already been typed for that line item. If an extended description is entered, tabbing out of the extended description field will return the cursor to the end of the item description field in the line items grid of the purchase order. In addition, the line item description field will appear in aqua to indicate additional description is associated with the item. When the purchase order is for a conference, the description should include the person attending the conference, where the conference will be held, and the dates of the conference. If desired, the display size of the expanded text description field can be increased by selecting the Expand Item Descriptions option. Selecting this option will decrease the number of line items that appear in the grid, but it will not prevent additional line items from being added. Specify the desired quantity of the item to be ordered. If the order is marked as a blanket order on the information tab, the quantity can remain zero. Indicating the unit cost of the described item will calculate the total cost of the item being ordered. 16
If the item has only one budget code, it can be entered at this time. After the budget code is entered, an available balance and unencumbered balance will appear. The unencumbered balance reflects how much would be available in the budget code including the items assigned on this requisition, and the available balance utilizes the unencumbered balance and any additional requisitions assigned to the budget code but have not been issued as purchase orders by the purchasing agent. If any item on the requisition requires multiple budget codes per line item, double click on the budget code field. This will open a form where multiple codes can be entered. With the form open, if the budget codes are known for the line item, they can be typed in one at a time, specifying a dollar amount or percentage that should be applied to that code for the line item. The Select Accounts option can be utilized if the codes are not known, or if it is desired to make a mass selection. A window will appear requesting account information to be specified, such as a specific object code. Selecting the query option will display the codes that matched the criteria specified. Clicking on the desired codes will place a checkmark in the Sel column indicating the codes will be brought into the Line Item Budget Code window. The Select options that appear on the bottom of the display can also be utilized to make a Mass Selection of the budget codes based on the criteria specified. In this example 2110-450-04-2600 and 2110-450-04-3500, are the accounts that will be used on this order. Click OK when selection is complete. 17
The budget accounts will fill in the line item budget code form where the dollar amount or percentage that should be applied to that code for the line item. If the budget distribution for this item should be utilized for subsequent items on this order, the Use this distribution as default for Subsequent items should remain selected. The Re- Apply this distribution to all existing items option would be utilized if it is desired to change the budget codes and the distribution for all previous items entered on the order. 18
Selecting the OK option will assign the encumbrance distribution based on the codes and distribution specified. The budget account in the grid will display in GREEN to indicate the cost is distributed to multiple accounts. To display the accounts, double click on the budget account associated with the item that is displayed. For any item that has multiple codes assigned, the Available Balance and Unencumbered Balance will not appear in the line item grid. This information is available in the Line Item Budget Code display. If more than one item is to be ordered, the next line in the PO items grid can be used to repeat the steps above. After the required information has been entered, based on the user approval level, an Approve or Issue option is available on the line items tab. The approved order will be assigned a pending order number in addition to an approval level based on the security of the user entering the order. This approval will indicate that the order is available to be reviewed by the next individual in the approval process for the district. If a problem is detected, due to a data error or security restriction such as insufficient funds in the budget codes for the request, a display will appear indicating the problem. If the problem cannot be corrected, selecting the Save option on the form tool bar will save the requisition as an entry in progress so the information entered can be accessed at a future time. 19
Shipping, Discounts, Contingency Encumbrance The purchase order line items form includes the distribution of Discounts, Shipping and Contingency Encumbrance by line item or as Auto Distribute amounts. If appropriate, an amount or percentage discount, shipping or contingent encumbrance amounts can be entered for each item. The amount or percent entered will only apply to the item if the amount is entered within the grid for that item. The Auto Distribute Discount, Shipping, or Contingent Encumbrance fields can be utilized to enter information that will be distributed to all items proportionately. The default is to have Auto Distribute always on. The amounts can be entered as a percentage or fixed dollar amounts. If a contingent encumbrance amount is entered in Standard Text/Defaults option located on the Purchasing/Tables/Defaults menu, this percentage will default into each order. If a percentage is entered for the discount, shipping, or contingent encumbrance amounts, the fixed amount field for that amount type will be disabled. For each item entered, users will include the discount, shipping and contingency encumbrance as it applies to that item. If items are entered and Auto Distribute Discount and/or Auto Distribute Shipping are checked ON and a user UNCLICK s one of the distribution choices a warning message 20
will display as follows warning users the distribution will be reset for existing items to 0. If it is desired to remove the auto distribution but leave the existing items alone, the option No should be selected which will leave the amounts as they currently exist. If it is desired to change the amounts to 0, the Yes option should be selected. 21
Mass Approve / Issue of Purchase Orders The purpose of the Mass Approve/Issue Purchase Order option is to allow a rapid review and dispensation of purchase requests. The three main purposes of the Mass Approval are as follows: A program administrator reviewing the requests of their staff as to the appropriateness for the purchase or goods or services. Program administrator s supervisor approving orders over $1,000. The purchasing agent reviewing orders to determine if they should be issued to vendors. To utilize the Mass Approve/Issue option, select the APP option from the application tool bar. (Manage/Purchasing/Approve/Issue Purchase Orders) A screen will appear allowing a definition of the orders that are to be reviewed at this time. The criteria will be repeated for future use after it is utilized. Program manager s supervisors will need to use the blue options button next to the criteria and choose Over $1000 in order to view and approve orders that are over $1000. The definition of the criteria should be reviewed by the System Manager to determine the appropriate records for approval based on the purchasing procedures of the district. Under normal circumstances, the purchasing agent will review orders only after they have been reviewed by staff in the central office for information such as availability of funds. With the appropriate criteria on display, the OK option should be selected. 22
The system will then search for all records that meet the specified criteria. In the above example, all requests that have been approved at level 2 will display. If any records match the criteria, a display will appear that will break a purchase order into three components. If it becomes necessary to review information on the order in the Standard purchase order display, a double left click on the purchase order number field in the first display will bring open a purchase order window. With the single purchase order on display, the order can be further reviewed. The first display will include general information concerning the order, for example, the total dollar amount of the order, the vendor to receive the order, the requestor, etc. Additional information can be displayed by using the scroll at the bottom of the first display. Included is the ship to address identification in the grid. If you double click on this grid, a window will appear displaying the whole ship to address. The first display is also used to identify any action that should be taken regarding the approval/issuance of the order. The order of the fields can be changed and stored by user to view desired fields on a default basis. 23
Based on the Selected record from the 1st display, the subsequent two displays will contain information regarding that particular order. The small arrow on the left side of the first display identifies the selected record. The 2nd display will include information such as the first line of description, quantity, and unit cost of each item on the order. If an item has more than one line of description, the description of that item will appear shaded. The 3rd display will show the budget codes and budget information associated with that selected record. If it is necessary to view the entire order, a double click on the desired Doc Number will open a Purchase Order Maintenance window. There should be no designation in the SEL column for that order if it is desired to make any modification, including the addition of a purchase order note. PO Find or Search Enter only a single data element here. Multiple conditions can limit the success of the search. If the requisition number or the vendor code is known, enter it to find and display a PO. If the requisition number is the known, from the application toolbar, change the display from the default DocNumber to Other Ref. Select Go To and type in the requisition number. If the vendor is known, click on the binoculars and complete the search criteria by filling in the vendor and selecting under pending approved and entry in progress or issued PO s. 24
PO Status Report If it is desired to have a list of orders issued by the Purchasing Agent and still open, select Pending Orders- None and Issued Orders- Open. This report displays the PO s that are outstanding. To view requisitions that have been entered and are not yet PO s, select Pending All and Issued None. This report can also be generated for only Entries in Progress to show which orders were saved but did not have sufficient funds to approve. This report will be especially helpful at the end of the fiscal year when decisions must be made about which orders should be closed and which should be left open. Modifying Purchase Orders and Vendors Only the purchasing agent has the ability to modify purchase orders and vendors. If you need to have a change made to an order send an e-mail to the purchasing agent including the changes that you need to have made. 25
Object Codes A list of object codes is available under budget tables in WinCap. The object code needs to reflect what is being purchased on a purchase order. Questions regarding the appropriateness of object codes should be directed to the purchasing agent. 26
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