Purchasing: Authorization and Control
OVERVIEW
All purchases must be made according to District Policy No. 6210, 6211 and ASB Policy No. 3510. Do not, under any circumstances, commit Richland School District funds with any vendor without budget authority approval (Request for Purchase Form, Procurement Card Request Form or a Travel Request Form) except as described in the Personal Reimbursement section. You could be held personally responsible for the payment.
Purchasing can be accomplished with: Standard Purchase Order, Blanket Purchase Order, Contract Purchase Order, Procurement Card, Personal Reimbursement and Travel Card.
Standard, Blanket & Contract Purchase Order
I. DEFINITIONS
Purchase orders are a means of providing clear information and order terms to vendors, encumbering, tracking budgets and providing historical data on orders.
The Standard Purchase Order is used to purchase goods, equipment, subscriptions and services.
The Blanket Purchase order is used for ordering over 20 items to avoid having to itemize each line. A list or quote of all the items being ordered must be electronically attached to the requisition for ordering and receiving purposes. A Blanket Purchase Order may also be used when multiple payments will be made to a vendor for one order, job or service.
The Contract Purchase Order is used for services acquired or received numerous times over the course of a fiscal year for the same monthly dollar amount. Examples include monthly recycling services, equipment leases and monthly maintenance contracts. The receiving requirement has been eliminated for payments to be processed. If there is a discrepancy in the dollar amount, Accounts Payable will verify the payment amount with the PO originator.
II. ESTABLISHMENT OF A STANDARD, BLANKET & CONTRACT PURCHASE ORDER
A. Submit detailed vendor and item information on the Request for Purchase Form to the building/department secretary to create the electronic purchasing requisition.
B. The secretary creates the purchase requisition.
C. Any supporting documents need to be electronically attached to the requisition by scanning and saving the attachment. Purchase requisitions awaiting original documents or contracts will not be processed until the relevant information has arrived to the Purchasing Office.
D. If ordering a Fixed Asset item, please complete and electronically attach the Fixed Asset Form to the Purchase Requisition.
E. The secretary approves the requisition which then routes electronically via workflow to the Administrator/Designee responsible for the budget for electronic approval.
F. After budget approval, the Purchase Requisition then electronically routes to the Purchasing Department who then audits the requisition.
G. Upon final processing of printing the purchase order by the Purchasing Department, the system then encumbers the expenditure against a specific budget line item to guard against the creation of liabilities in excess of revenues. This creates a Standard, Blanket or Contract Purchase Order.
H. The Purchasing Department will then fax, scan and email or mail the purchase order to the vendor according to instructions in the purchase order notes from the originator.
I. Goods and equipment will be centrally received at the District Warehouse. Exceptions are custom furniture, subscriptions and live items.
J. All orders are prohibited from being delivered to a home address.
Procurement Cards
I. DEFINITION
The Procurement Card is a separate bank credit card account established by Board authorization for individual, department or school use in purchasing.
The Procurement Card Custodian/Card Supervisor are the individuals who have responsibility for the Procurement card including authorizing disbursement, accounting and reconciliation of the Procurement Card account. The Card Custodian and Card Supervisor will sign a Memorandum of Understanding statement for the Procurement Card and will be responsible for all charges on the card account. Financial Services will establish the Procurement Card account. Financial Services will process the payment to the credit card company for the Procurement Card account.
II. ESTABLISHMENT OF A PROCUREMENT CARD
A. Having been notified of the need for a Procurement Card, the Financial Services Department will review your request. Upon approval of your request for a Procurement Card account, the Financial Services Department will send a Memorandum of Understanding statement and Request for Issuance of Procurement Card form. Sign the statement and form to designate responsibility and return them to the Financial Services Department.
B. The Financial Services Department will issue the building/department the Procurement Card and necessary forms for the use and reconciliation of the Procurement Card account.
C. Monthly card statements must be signed by the Card Custodian and Card Supervisor indicating approval of all charges. Statements must then be sent to the Procurement Card Administrator for retention.
D. The original receipts are kept at the building/department attached to the signed and approved Request for P-Card form.
III. PROCUREMENT CARD USE
The Procurement Card may be used to make purchases which do not exceed your authorized dollar amount.
A. Do not allow usage by an unauthorized individual (parent, spouse, volunteer or any other non- employee).
B. ASB students are allowed to make low dollar purchases, given they have signed the designated student MOU.
C. Items of appreciation may only be purchased if an Employee Recognition Form has been filled out and signed by all relevant parties. All stipulations on the Employee Recognition form must be followed.
D. Gratuities are allowed but must be nominal (no more than 15%).
E. Items are NOT to be delivered to a home address.
F. Sufficient supporting documentation is required, and must be provided to the Card Custodian for each transaction. P-Card Request Form completed and signed by budget authority. Check-Out Log signed by the approved user with check out time noted. Itemized Receipt when returning P-card to Card Custodian.
G. Loss of any receipt when using a Procurement Card will result in signing an Affidavit of Lost Receipt. Repeated incidences of lost receipts constitute “misuse” of the Procurement Card and will result in loss of privileges.
The following are PROHIBITED Procurement card purchases. The Card Custodian/Card Supervisor does not have the authority to make any exceptions or changes.
- GIFT CARDS
- Gifts/Items to show appreciation (with exception of items purchased under the guidelines of the Employee Recognition Form)
- Meals related to travel expenses (with the exception of Student field trip related meals)
- Donations
- Fuel for personal vehicle
- Consultant/Contractual services, salaries/wages
- Cash advances
- Alcoholic beverages, drugs, or pharmaceuticals
- Personal cell phones or phone calls
- Any other personal non-district purpose
If the card is used for prohibited purposes, the user must pay back the Richland School District immediately. If this does not happen, a payroll deduction will be processed.
IV. SAFEGUARDING OF PROCUREMENT CARD
A. The Procurement Card should be in a secure area that is lockable when not in use.
B. Notify the Financial Services Department immediately of any changes of the authorized Card Custodian/Card Supervisor for the building/department Procurement Card.
C. Misuse of the Procurement Card may result in discipline and/or personal liability for disallowed charges. Upon such revocation the Richland School District shall not be liable for any costs subsequently charged to the Procurement Card.
D. Notify the Financial Services Department immediately in case of theft or loss of your Building/Department Procurement Card.
Personal Reimbursement
I. DEFINITION
The Personal Reimbursement is a purchase made with an RSD employee’s personal funds. Use of this method is strongly discouraged; however, it is recognized that this may be the only option in some cases. Before doing so, obtain PRIOR APPROVAL.
II. ESTABLISHMENT OF A PERSONAL REIMBURSEMENT
A. Complete a Purchase Request form for personal reimbursement. It is available electronically on Sharepoint.
B. Submit completed form with detailed original receipt(s) to your building/department secretary. Original receipts must be dated within the current budget year and submitted in a timely manner. The original receipt(s) will remain with the building/department secretary with the backup paperwork for auditing purposes.
C. Anything purchased in July/August cannot be reimbursed out of next year’s budget until September.
D. Reimbursement for conference registrations cannot be processed until after the conference date.
E. Building/Department Secretary will process the request as a purchase order.
III. PROHIBITED PERSONAL REIMBURSEMENTS
A. Amazon – please note that no personal reimbursement requests will be accepted for Amazon, as all district Amazon orders should be placed using the district Amazon Business account, and a district p-card.
B. Costco – please note that no personal reimbursement requests will be accepted for Costco, as the district has Visa p-cards available for staff to check out, as well as a district Costco membership which must be used for any district purchase.
Travel Card
I. DEFINITION
The travel card is a designated credit card that is available for all out of district approved travel expenses for all district employees. It is available at the district office in the Financial Services Department. Use of a personal credit card to make any travel arrangements is prohibited. (Travel RR 6213).
II. ESTABLISHMENT OF A TRAVEL CARD
A. To obtain a Travel Card, you must complete and submit a Travel form. The travel form is on Sharepoint. On the Travel Form mark “Travel Card Required” to reserve a travel card.
B. District employees must sign a Memorandum of Understanding. You will need to travel with your Richland School District Badge for any identification needed.
C. Upon returning, the travel card must be returned the next working day to the Financial Services Department with all original receipts. All charges will be paid on the following statement with the approved Travel Request Form as supporting documentation.
- Allowable Charges: Hotel/Motel Car Rentals; Fuel for Car Rental Parking; Ride Sharing (taxi, Uber, shuttle, etc) gratuity not to exceed 15%; Telephone, internet & Fax Charges – work related only (actual cost as evidence by original itemized receipts)
- Prohibited Charges: Alcoholic Beverages/Restaurants/Food; Expenses not Approved on the Approved Travel Form Cash Advances Entertainment; Fuel – for personal vehicle
Loss of any receipt with the Travel Card will result in signing an Affidavit of Lost Receipt. Repeated incidences of lost receipts constitute “misuse” of the Travel Card and will result in loss of privileges.
