HomeMy WebLinkAbout4.2 Management Directive 305, Purchasing Authority and DefinitionsMANAGEMENT DIRECTIVE
305 -Purchasing Authority and Definitions
PURPOSE: To clearly define and establish purchasing authority and the process for
initiating a purchase.
CONTENT
1. Pre-Purchase Planning:
a. Initiator shall work with the Purchasing Agent to develop specifications and
sources which will allow financial preparation for expenditures and to assure
proper procedures are followed.
b. The Engineering Department shall provide the Purchasing Agent an estimated
materials list for the annual order for those construction projects they expect to
perform.
2. Authorized Signatures and Limits:
a. Authorized limits and signers are identified per the attached.
b. In the absence of the General Manager, the General Manager's designee shall
assume the General Manager's purchasing authority and reporting
responsibilities identified in Board Policy #401.
c. All purchases over $25,000 must conform to Management Directive #306,
Procurement.
3. Types of Purchases:
All purchases shall be in compliance with the authorized signatures and limits noted
above and shall be handled as follows:
a. Purchase Requisition (for most purchases):
i. Requestor shall submit a completed "Purchase Requisition," HEA Form
#0132, for items to be purchased. If suggested vendor or prices are not
available, please so state. The Purchasing Department will obtain the
Accounting Department and General Manager's authorizations.
MD 305, Page 2 of 4
ii. If the requisition is processed, a copy of the completed purchase order
(P.O.) will be sent to the requestor.
lll. If the requisition is rejected, it will be returned to the requestor with an
explanation
IV. If additional information is required, the requestor shall be so advised.
v. If an item is not received shortly after expected delivery date, the
requestor should notify purchasing, who will contact the vendor for an
update on delivery.
b. Items Not Requiring a Purchase Requisition:
Certain administrative items do not require a purchase requisition. A
Department Director, Manager, or Supervisor's signature on a completed check
request may be used for the payment of the following types of purchases:
Airline travels
Air taxi service (all types)
Annual meeting services
Attorney fees
Banking fees
Board meeting expenses
Call out meal expenses
Collection and credit expenses
Courier services
CPA services
Credit card payments
Donations
Dues and membership fees
Employee expense statements
Employee recognition expenses
Freight expenses
Utility bills
Hotel expenses
Insurance premiums & deductibles
Maintenance Agreements
Medical expenses
Newspaper advertisements
One-Call locate services
Payroll taxes/CSED
Permits
Petty cash
Postage
Purchased power
Radio advertisements
Recruitment expenses
Rental cars
Scholarships
Seminars and conferences
Subscriptions & updates
Telephone bills
c. Local Purchase Order (LPO): A local purchase order may be used for purchases
that do not exceed $500. The Purchasing Agent will be responsible for and
issuance of LPO books.
d. Annual (or Blanket) P.O.: A vendor providing materials, supplies, or a service to
the Cooperative on a continuing or monthly basis may be issued an annual
purchase order. Follow purchase requisition procedures above.
MD 305, Page 3 of 4
e. Air Travel: For local air travel, travel vouchers may replace a purchase order.
For out of state travel or special travel arrangements, a check request must be
signed by the General Manager.
f. Meals: For local meals (e.g., call-out meals, travel meals, etc.) a meal voucher
may be submitted for reimbursement and a purchase requisition/order is not
required.
g. Invoices: Invoices $500 or less for goods and services (not including construction
material, construction services or capital budget items) may be approved by the
authorized signer on the invoice.
h. Purchasing cards may be used for purchases included in items b., c., f., and g.
above that are within the current approved budget and spending limits.
4. Emergency Purchases:
Only purchases which meet the qualification of "emergency purchase," as established by
Board Policy #401, may be processed under this provision. In the event of an
emergency, a Department Manager may authorize purchases without following the
required purchase process. All such events, paperwork and justification will be
presented to the General Manager for review.
5. Non-Authorized Purchases:
The Accounting and Purchasing Departments shall work together to resolve non-
authorized purchases or problem invoices to assure timely payment to vendors.
RESPONSIBILITY:
It is the responsibility of each employee to adhere to these guidelines.
DATE ~~-r:~ Bradley P. Janor ke
/Z-/Z--/f
GENERAL MANAGER
DIRECTIVE HISTORY Formerly MD 601
Date Adopted: March 3, 1994
Revision Dates: 10/15/1994,10/25/1994,5/11/2000,07/07/2004, 09/22/2004, 02/06/2006,
06/13/2006,05/08/2008,12/14/2010
BOARD POLICY REFERENCE(S)
BP 401, Contracting and Purchasing
MANAGEMENT DIRECTIVE REFERENCE(S)
MD 306, Procurement Procedures
FORMS REFERENCE(S)
Form 0132, Purchase Requisition
MD 305, Page 4 of 4