Proper Procurement
A policies and procedures training session
CHAPTER 1
Purchasing Policies
Purchasing Options
University Sources
Whenever possible and practical, all goods required by the
various departments of the University should be obtained from
the University’s own Central Stores. Because of the new
mandatory state office supplies contract, we are reducing the
number of office supplies carried by Central Stores.
Purchasing Department
All materials, supplies, equipment, or services which are not
available from Central Stores and are to be acquired by
purchase, lease, or rental shall be requisitioned through the
Purchasing Department.
Non-University Suppliers
The Purchasing Department is responsible for all inquiries
and investigations regarding the purchase of goods from a
non-university supplier.
All correspondence with suppliers must be conducted by
Purchasing except when Purchasing deems it advisable
to delegate this authority to others.
In such cases, all documentation shall be maintained by the
department.
All preliminary correspondence must accompany the purchase
request and will become part of the records of the Purchasing
department if the purchase is $5,000 or more.
Under NO circumstances should you sign ANY
documents on behalf of the University.
Equipment Service Agreements
The Director of Purchasing must approve all service and contractual
agreements.
No other staff member can sign for or commit the University to any
such agreement.
Any service agreement contract received by the department should be
attached to the requisition when submitted to Purchasing.
All service agreements shall be covered by a University Purchase Order
which specifies the item(s), period covered, and the total cost.
The department is responsible for assuring that the services contracted are
actually received.
Any problems involving a service agreement should be reported
immediately to the Purchasing Department.
Emergency Procurements
Emergency – Loss of life or limb
Tornado
Flood
Fire
Other acts of God
Lack of planning/foresight is NOT an emergency
Must be coordinated through the Director of
Purchasing as delegated by the Chancellor and
must be reported directly to the Office of State
Purchasing
Purchasing Department
Responsibilities
Staff members should not give any information which
might commit the University or sign any lease or
purchase agreement on behalf of the University.
The University will not assume responsibility for any
purchase made directly by any staff or faculty member other
than authorized Purchasing Department personnel. In such
cases, you have made a financial obligation—NOT the
University and you will be held responsible for the purchase
or agreement.
Never give information (on the phone or in person) about the
University’s computers, printers, phones, etc. to a non-university
agent.
Sales Representatives
ALL sales calls involving representatives must
come through the Purchasing Office.
NEVER verbally agree to anything when dealing
with a vendor (oral contracts are binding in the
state of Arkansas).
Always contact the Purchasing Department to
obtain the best prices.
Personal Interests
Under no circumstances will the Purchasing
Department make any purchase for the personal
or private use of any person.
Purchase orders will not be issued to the business
interest of any university employee (or family
member) of a university employee for the
procurement of any materials, supplies, services,
or equipment.
Questions
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CHAPTER 2
Requisitions
Requisition Regulations
All requisitions should be submitted far enough in advance of
the need to permit correspondence, investigation of sources
of supply, and securing of competitive prices.
Quantity requirements for a reasonable period should be
anticipated to avoid unnecessary repetition of requests and
orders.
Requisition Procedures
Funds Availability
Prior to the request, the department must ensure that
adequate funds are available for requested purchases.
300 accounts
Each line item is less than $500.00
Purchases of software
350 accounts
Each line item is more than $500.00 and less than $2500.00
400 accounts
Each line item exceeds $2500.00
Requisition Form Completion
Requests for the purchase or lease of ANY
materials, supplies, equipment, or services are
submitted via an on-line requisition.
The on-line requisition form must be filled out
completely and correctly in order to be
processed
At the $ prompt: type DPS
Then click on REQ
Press Help or use the F8 Key
Highlight and click:
Add a new document
Req #: The program will generate this number
Req Date: The system will provide this information
Request Type: The system will provide this information
Prepay: The system will provide this information
Computer Purchase: Default is no (Remember to change if needed)
Vendor: Enter the vendor number (if known) or
Enter first few letters to find vendor
Only enter TBA for new vendor if you are sure the vendor does not
already exist
Vendor Listing: Thoroughly search for your vendor.
Scroll up and down and search all possibilities: ARK, AR,
Arkansas, etc.
Advertising: Default is no (be sure to change to y if necessary)
Delivery method: Leave blank
Vendor contact: If known, may leave blank
Vendor Fax: If you want your order faxed, there MUST be a correct
number here
Requested By: The requestor’s name must be here
Inv. Number: Leave Blank
Inv. Date: Leave Blank
Message: Click for options
Message Button:
1. Purchasing will mail the PO to the listed vendor and address.
2. The PO will be returned to the requestor. (No order will be made.)
3. The PO and necessary attachment will be faxed to the listed number.
4. The PO will be sent to accounts payable for a check.
THIS OPTION IS FOR MEMBERSHIPS/SUBSCRIPTIONS ONLY
PURCHASING WILL DO EXACTLY AS YOU REQUEST ON YOUR MESSAGE
Message Continued:
5. DO NOT choose this option. If attachments are needed, attach a note
to the requisition indicating the status of the attachment.
6. This option is for bookstore & library only
7. The items listed on the PO will be ordered on-line by the Purchasing Dept.
Campus button:
Most of you will choose option 7, others choose
accordingly.
When the screen is complete then click on
help and select option: Add a new line
item to this document.
Line #: The system will provide this number
G. L. Acct #: Your account number here (double check this)
Item Description: Be very detailed here
Quantity: This must be correct
Unit of Measure: Choose correctly-DO NOT LEAVE BLANK
Cost per Unit: Double check for accuracy
New Line Items
Repeat this step for each different item included on the
requisition.
There is no longer a need for Purchase Order
Attachment forms, please enter all items directly on the
requisition.
Remember to fill out each section completely and
correctly.
When each item has been entered then add your
shipping line and your tax line.
Shipping is taxable, so make sure to add the tax line
last.
A Tax line figured at a site specific
rate must be added to ALL requisitions
Tax Rates by Campus Location
Beebe 8.5%
Searcy 8.00%
Bald Knob 10.00%
Heber Springs 7.625%/8.625%
LRAFB 9.00%
The description on your tax line should
read: Tax @ ______%
Shipping Line
Contact the vendor to find out shipping
costs.
Shipping must be included on the
Requisition.
No separate shipping charges will be paid.
This line is not necessary if you are sure there is no
shipping charge. Currently only Office Depot and Dell do
not charge shipping for ASU Beebe.
To add notes to your requisition just
click Help and choose Manage notes.
Next select:
Add new note line
Notes can not be seen by vendors or by Accounts Payable
Add all necessary notes and details
here
When your requisition is complete
press Help and exit the system
DO NOT
use the
OUT
button
Helpful Hints for Requisition Form
Completion
Always use Enter (never tab) The system will not store your data if you
TAB.
Every requisition must have a separate tax line figured at a site specific
rate.
Requisitions should have a shipping line that is listed before your tax line!
When using a new vendor, the ordering department must make sure the
new vendor will accept a Purchase Order.
Each item should be clearly described and detailed specifications given
this will ensure receipt of satisfactory materials.
A definite delivery date should be indicated when possible, especially when
dealing with time sensitive materials.
Never ―x-out‖ of POISE always click ―Help‖ and then choose ―Exit to
Previous Screen‖ and then click on the ―Exit‖ button.
Each request must show a correct price.
If the cost significantly exceeds the departmental estimate, Purchasing
will cancel the order and a new requisition must be entered.
Tax Line
Each year the Gross Receipt tax laws change, you should
not and could not be expected to know all of these changes.
Monitoring Departmental budgets is difficult because of these
changes in law and because of the lack of a tax line being
included on the initial purchase requisition.
If no tax is due the encumbrance will be released after the
invoice is paid.
It is imperative that a tax line item be entered on each and
every purchase requisition.
Departmental Approval
Approvers:
CHECK YOUR
Approver’s
PENDING BOX
DAILY OR Signature
CONTACT
YOUR PROXY
Funds Are
Approving Form
Available and
The Use Is Complete
From the Correct
Of Funds & Correct
Account
Submission of Requisition
Submit requisition Attachments
All logos and promotional Any service agreement
items to Rose Mary Jackson contract received by the
for approval BEFORE your department should be
Purchase Order has been attached to the requisition.
completed. Attachments should be
included for subscription
Questions about your
renewals, artwork, etc.
purchase may arise. You
Send quotes via e-mail with
should be available to answer
requisition number listed in
these questions. body of e-mail.
Copies of quotes sent via
campus mail should have
requisition number listed in
top right hand corner.
Computer Purchases
All computer and computer related
purchases will be coordinated through
Information Systems Manager, Sandra
Adams. 882-8887
Most software can be
purchased license only.
The IT department can
install from the master copy of media cds.
Requisition Status
Check your status folders to see where
your requisition stands.
Pending
Rejected
If your requisition has been rejected you will receive an email from
Purchasing stating the reason why it was rejected.
Completed
When your requisition receives a PO # and you receive the goldenrod copy
of the PO, move your requisition from your pending folder to your
completed folder
How to see where your requisition is
in process
Click HELP or F8 to browse the
current document folder. Click ok
Locate the requisition by scrolling up
or down
Once you have selected the
requisition, hit ENTER to bring it up
Click HELP or F8 and choose Browse
for signatures on this document
You can now see who has approved your
document and where it might be “stuck”
Codes for Approvals
A= means that your approver has approved the
document on the date by their name
P=means that it is Pending this approver and
cannot go further up the approval chain
X=means that the requisition has not arrived for
the approver yet.
Purchasing CANNOT override an approval chain. It
must go through the established chain approved
by your budget manager and by finance.
Select Folder Selection to see each folder (rejected or pending)
When you receive your PO choose Browse the current document
folder to change pending to completed
Highlight the folder you would like
to view and click OK
Highlight select this item and click
Your requisition will appear on the
screen. Then click on the Help button
To transfer to completed folder
highlight and click
Choose yes to move your
requisition to completed folder
Reasons for Requisition Rejection
Incorrect or insufficient vendor information
TBA on an existing vendor
Insufficient vendor info
No shipping line
No tax line
Insufficient item description
No price listed
No item number, manufacturer, etc.
As an approver, you should be able to read the item description and know exactly what item or service is being
requested. If not don’t approve the request
Questions concerning orders that go unanswered for more than 5
days.
Questions
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CHAPTER 3
Bid Policies and Procedures
Bid Policies
The Purchasing Department obtains
competitive bids and places orders with
the lowest and most responsible bidder in
accordance with state laws and
regulations.
The lowest bid meeting the specifications is accepted if
any award is made
Purchasing is authorized to reject any and all bids that do
not meet specifications or for which cost is excessive
Purchasing will utilize existing state and local contracts for
goods and services when applicable
Bid Procedures
Competitive Bid Sealed Bid
Total cost (must include
shipping cost) of $5,000.00 to Total cost (must include
$25,000.00. shipping cost) of over
Purchasing may ask you to $25,000.00.
provide at least three
suggested vendors with the Allow for extra time, as the
requisition form. If you have bid procedure can take
suggested vendors or quotes several weeks.
please forward them to
Purchasing. Contact the Purchasing
Purchasing may contact Department for any items,
additional vendors known to equipment, or services
provide the same service in requiring a sealed bid.
order to obtain the best price.
Examples Items under State Contract
Mandatory Non-Mandatory
Air Conditioner/ Heat Pumps Information Technology Services
Ammunition Floor Maintenance Machines & Accessories
Diploma Inserts & Covers Medical Supplies
Envelopes (Blank & Printed) Laboratory Supplies & Products
Letterhead Furniture
Custom Continuous Forms Pager Leases
Custom Snap Out Forms Computers
Custom Printed Index Tab Dividers Grainger Items
Lamp Ballast
Lamps (Light Bulbs)
Copier & Print Shop Paper
Continuous Paper Stock
Paper Towels and Bathroom Tissue
Software
Laundry Supplies
Warewashing supplies
Telephone Instruments
Tires
Vehicles
Videocassettes
Office Supplies
Questions
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CHAPTER 4
Store Purchases
Office Depot Procedure
Office Supplies are now on a mandatory State contract with
Office Depot.
Office Depot orders will come directly to Central Stores.
To Beki Wisdom
Only non-consumable items require requisitions.
You will be notified via e-mail if a requisition is required.
DO NOT enter a requisition unless you receive an e-mail asking
you to enter one. Only enter the requisition for the item(s) on
the request. This may not be for your entire order.
Office Depot Ordering Procedure
Place your order on-line.
bsd.officedepot.com
Print your order.
Use the printer friendly version.
This copy will be used as a ―suspense‖ copy to keep on file until
your order arrives.
This copy will also be used as your ―receiving report‖.
Write the following information across the printed order
Received
Date received
Whether the order is complete or partial
The account number to be charged
Legibly sign your name
Send to Beki Wisdom.
Office Depot Online
Central Stores
Supplies Package Pickup
Central Stores will notify you
ALL items stocked in Central by e-mail or phone within 24
Stores are posted on the hours of receipt of a package.
website. No personal packages please.
Check website (under ―order All copier paper orders MUST
status‖) to see when your item be submitted prior to 10 am on
Fridays to ensure afternoon
is ready to be picked up. delivery.
In Process—Items are not yet
ready for pick-up.
Delivered—Items are ready
for pick-up.
Questions
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CHAPTER 5
Receipt of Merchandise
Receipt of Merchandise
Each department is responsible for the inspection of all orders.
Departments should thoroughly inspect all merchandise within 5 days of receipt.
Each department is responsible for notifying Purchasing of any
damaged, incorrect, or incomplete order.
Departments must report any damages or deficiencies immediately to the
purchasing department.
No item can be returned after 15 days from the delivery date if damages have
not been reported.
Each department is responsible for receiving form completion.
Receiving Form
Departments are responsible for filling out the
receiving form correctly and completely.
The receiving form is located along the bottom of the goldenrod
copy of the Purchase Order.
Once completed this form should be sent to INVOICE AUDIT in
Purchasing.
-------------------------------------------------------------------------
RECEIVING REPORT – TO BE COMPLETED BY DEPARTMENT
Complete______Partial_____(If partial please indicate item numbers & quantities received below)
Date Items Received____________________________
Signature – Receiving Party_______________________
Department & Room _____________________________
Account # _____________________________________
Incorrect or Defective Merchandise
Policy
The purchasing department conducts all
negotiations for the replacement of
damaged or incorrect goods or services.
You should contact the Purchasing Department
immediately upon receipt of incorrect or defective
merchandise. Do not contact the vendor.
Invoices will not be processed until the goods
have been replaced or necessary adjustments
have been made.
Incorrect or Defective Merchandise
Procedures
Contact the purchasing department to make
arrangements for a replacement item
Company should pay for the return of broken
merchandise
These items may be brought to Central Stores for
shipment (package must have a call tag or RMA.)
Departments pay for the return of incorrectly
ordered merchandise
These items must be taken to the bookstore for shipment.
Questions
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Chapter 6
Proper Inventory Procedures
Inventory Control Policy
Whenever a University owned item is
transferred (room to room, department to
department, person to person, or to M&R
for disposal) a transfer of property form
MUST be completed.
The transfer of property form (located on
the Central Stores webpage) must be filled
out and submitted on-line.
Transfer of Property
Complete & Submit Form On-line
Call Maintenance for removal
Of Heavy Furniture
Central Stores will pick up any other items
There will be no same day pick-up.
You should plan ahead if you need the
Item removed by a certain day.
Inventory Control Reminders
These inventory control rules refer only to non-
consumable items.
Never throw away any item that is owned by the
University.
When completing the transfer form, make sure it
is complete.
If there is a tag number on the item, make sure you put it
on the transfer form.
If there is not a tag number on the item, a serial number
and/or a complete description of the item must be present
on the transfer form.
Questions
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CHAPTER 7
Goals
Purchasing Department Goals
To provide at the time and place needed in the
proper quantity and of the proper quality: all
materials, supplies, tools, equipment and services
required for the organization’s operations.
To secure such materials, supplies, tools,
equipment and services at the lowest possible
cost, consistent with prevailing economic
conditions, while establishing and maintaining a
reputation for fairness and integrity.
Questions
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Contact Information
Purchasing:
Stephanie Creed sacreed@asub.edu ext 4547
Emily Fisher enfisher@asub.edu ext 4547
Ima Tooley itooley@searcy.asub.edu ext 6207
Invoice Audit:
Tonya Luten tsharmon@asub.edu ext 4549
Central Stores & Receiving:
Beki Wisdom bawisdom@asub.edu ext 4546
Jim Davidson jldavidson@asub.edu ext 4548