Section 3358:5-11-10.1 - Purchasing proceduresThe purchasing procedures establish specific guidelines to ensure adequate internal accounting controls. There are four methods by which to complete purchases as an employee of the college: initiate a purchase requisition in order to generate a purchase order, initiate a check request, utilize the petty cash fund, or utilize a college-issued credit card.
(A) Purchase requisition/purchase order process(1) The purchase requisition is to be used for purchases involving the receipt of goods, when a purchase order is required by the vendor, and/or due to the nature of the purchase other methods are not permissible. The purchase order, which is the formal offer to buy, is initiated from the purchase requisition. The purchase requisition may also be used to request blanket orders. These are used when small repetitive orders are placed with one supplier. A dollar value must be assigned. Blanket purchase orders may be increased by fifty dollars or fifty per cent (whichever is greater of the original amount as needed upon written authorization of the budget manager. If more than this is needed, a new purchase requisition must be issued. All blanket orders expire on June 30 of the current fiscal year. A dollar value must be assigned and a new purchase requisition must be issued when the dollar value has been exhausted.(2) The initiator must complete the following information on the purchase requisition and ensure its accuracy before it can be processed:(a) Department and "deliver to" information .(b) Budget code(s) - the first two digits designate the fund (i.e., unrestricted, restricted, auxiliary, or agency); the next five digits designate the department/division; and the last four digits designate the object code.(c) Name and complete address of vendor.(d) Quantity, description, cost information and all other pertinent information. If an order form or other document must be submitted to the vendor with the purchase order or if the purchase must be pre-paid, it should be attached to the purchase requisition and noted.(e) Complete the information regarding the possible requirement of a material safety data sheet (MSDS).(3) The initiator shall retain a copy for their record which establishes the date the process began and is for the initiator's protection in the event the purchase requisition is lost. The original with appropriate attachments shall be forwarded for signatures as follows:(b) Other budget managers (if utilizing more than one departmental budget code to share in the cost of the purchase).(c) The appropriate hazcom coordinator if the purchase requires an MSDS or if it is unclear whether an MSDS is required. (d) Executive director of information technology (for all technology purchases).(e) Controller (to verify budget code, availability of funds, mathematical accuracy, completeness of information, proper signatures). The initiator should allow enough time for the signature process to be completed so that vendors are given a reasonable amount of time to fill the order once they receive the purchase order. Purchase orders shall be mailed to the vendor within five working days of receipt of the purchase requisition by the business office.
(4) Purchase requisitions shall be returned for the following reasons: (a) Incomplete information - returned to initiator.(b) Inadequate funds in budget/incorrect budget code - returned to budget manager to either request a transfer of funds or to correct the budget code. Budget transfers shall be submitted to the controller for approval.(c) Incomplete signatures - returned to the appropriate person for signature.(d) Unapproved/inappropriate purchase - returned to supervisor.(e) Incomplete or missing information regarding MSDS - returned to initiator. In order that purchases are not delayed, each signatory must ensure accuracy/appropriateness of the purchase.
(5) If a rush or emergency situation arises requiring the immediate need for a purchase order or purchase order number, the initiator shall hand carry the purchase requisition through the approval process. If the purchase requires an MSDS, the initiator shall hand carry the purchase requisition to the appropriate hazcom coordinator. A purchase order or the purchase order number shall be issued by the business office after the approved purchase requisition is received. If an order is called in to the vendor referencing a purchase order number and the original purchase order is also mailed, the word "confirming" shall be noted on the purchase requisition in order to avoid duplicate shipment.(6) In order to comply with auditing requirements, the college- will establish a deadline for processing purchase requisitions for each fiscal year. Purchase requisitions received by the controller after July first shall be charged to the next fiscal year budget. This is necessary so that goods are ordered, received, and paid within the same fiscal year. This deadline only affects requests for the ordering of goods to be received and does not pertain to travel reimbursements, membership dues, emergency repairs, or any other items that fall under the check request process.(7) A five-part purchase order is generated from a properly processed purchase requisition. The distribution of the purchase order is as follows:(a) White copy - mailed to vendor with any attachments.(b) Pink and blue copies - forwarded to initiator(c) Goldenrod copy - retained by business office.(d) Green copy - forwarded to bookstore.(8) All goods ordered are received by either the receiving department (office services center) or the initiator. Each delivery must be inspected for visible damages and the proper notations must be made on the transport company's receiving document (bill of lading).(9) The initiator shall: (a) Check the packing slip against the items received. The items received shall be noted on the blue copy of the purchase order.(b) Verify that goods are acceptable and payment of the invoice should be made.(c) If goods are acceptable, initiator shall sign and date the blue copy of the purchase order and return it to the business office along with packing slips and all other documents. Please note that invoice information is often included with the merchandise and shall also be forwarded to the business office.(d) If goods are not acceptable, initiator shall notify the vendor and arrange a settlement. The business office shall also be notified so that payment can be withheld until the matter is resolved.(e) If a partial payment is necessary, the initiator shall forward a photocopy of the blue copy of the purchase order to the business office noting the items received and that partial payment should be made. This process shall be repeated as often as necessary until the last item is received. At that time, the blue copy shall be forwarded to the business office as described in paragraph (A)(9)(c) of this rule. Partial shipments shall be noted on the blue copy as "received" with date of receipt.(10) Payment of an invoice for goods ordered shall not be made until the business office has been notified (as described in paragraphs (A)(9)(c) and (A)(9)(e) of this rule) that goods have been received and are as ordered. In order to keep the college's credit with vendors in good standing, it is important that the blue copies of purchase orders are promptly forwarded to the business office as soon as the items are received and accepted.(11) A copy of invoices exceeding fifty per cent or fifty dollars (whichever is greater) of the purchase order amount shall be returned to the initiating department/division for authorization to pay. Payments for these substantial variances shall also require the signature of the vice president for business affairs. It is important to note that if the reason for the increase is due to additional items being purchased against that purchase order without the prior authorization of the vice president for business affairs it may cause the initiator to be held personally liable for the additional cost.(12) For all capital inventory items (object code 5940), the business office shall forward, in addition to the green copy of the purchase order, a copy of the invoice and all other relevant documentation to the manager of bookstore and office services. This information is used to record the value of the asset in the inventory records and initiates the process for tagging the equipment.(B) Check request(1) The check request method is used when a purchase order is not required (when goods will not be received) and expenses have already been incurred or shall be incurred. Employees who are unclear as to whether the purchase should be processed via a purchase requisition or check request shall contact the controller. Following are examples of when a check request would be initiated: (a) Purchased personal services (non-employee) such as honorariums, modeling, consulting, etc. However, in many instances this service should be initiated via an independent contractor services contract rather than a check request. Employees who are unclear as to which process is appropriate shall contact the vice president for business affairs prior to negotiating a contract with the service provider. (b) Equipment repairs and maintenance agreement contracts. If an annual maintenance agreement is being processed whereby payments are to be made on a monthly or quarterly basis throughout the fiscal year, a blanket purchase requisition shall be initiated instead of processing several check requests throughout the year.(c) Conference registration fees.(d) Institutional memberships and dues. Payment of personal memberships may be acceptable as long as the membership furthers the educational and public policy goals of the college.(g) Freight charges not covered on purchase order.(i) Miscellaneous payments (boiler/elevator inspections, licenses, legal fees, etc.).(2) The initiator shall complete the following information on the check request and ensure its accuracy before it can be processed:(b) Name and complete address of vendor.(c) Description of expenditure.(e) Other pertinent information.(3) Check requests must be submitted with an invoice or other vendor generated documentation which clearly shows the cost and description of expenditure.(4) Initiator shall retain a copy of the check request as well as a copy of the supporting documentation for their records which establishes the date the process began and is for the initiator's protection in the event the check request is lost. The original check request with appropriate attachments shall be forwarded for the appropriate signatures as follows:(b) Other budget managers (if utilizing more than one departmental budget code to share in the cost of the purchase).(c) Appropriate hazcom coordinator if an MSDS is required or if it is unclear whether an MSDS is required. (d) Executive director of information technology (for all technology purchases).(e) Controller (to verify budget code, availability of funds, mathematical accuracy, completeness of information, proper signatures). (5) Checks are printed bi-weekly on Fridays. In order for a check to be processed, the check request with requisite signatures, documentation, and appropriate budget codes must be received in the business office no later than three working days (Tuesdays by five p.m.) prior to the check run. If a rush or emergency situation arises requiring the immediate need for a check, the initiator shall hand carry the check request through the approval process and obtain the approval for a manual check from the controller.(6) Check requests shall be returned for the following reasons:(a) Incomplete information - returned to initiator.(b) Inadequate funds in budget/incorrect budget code -returned to the budget manager to either request a transfer of funds or to correct the budget code. Budget transfers shall be submitted to the controller for approval.(c) Incomplete signatures - returned to the appropriate person for signature.(d) Unapproved/inappropriate purchase - returned to supervisor.(e) Incomplete or missing information regarding MSDS -returned to initiator. In order that checks are not delayed for these reasons, each signatory must ensure the accuracy/appropriateness of the purchase.
(C) Petty cash (1) This method permits employees to receive immediate reimbursement for items purchased when the purchase requisition process is not feasible due to the nature of the purchase (i.e., small dollar amount involved). Individual purchases are limited to twenty five dollars. In order to receive reimbursement, a completed petty cash form (available in the business office) and original receipt must be submitted to the business office.(2) The petty cash form must include the dollar amount to be reimbursed, reason for purchase, appropriate budget code(s), and employee's signature. Since the college is a tax-exempt organization, sales tax cannot be reimbursed.(3) This method could result in an employee not being reimbursed if the transaction is deemed to be in violation of college policy (i.e., greater than twenty-five dollars) or if there are insufficient funds in the account(s) to be charged.(D) College-issued credit card Upon approval by their immediate supervisor, an employee can be issued a college credit card to purchase goods to be used for the college. An employee shall contact the controller to begin this process. Once approved, guidelines shall be distributed to the employee. Employees who accept a college credit card agree to abide by the guidelines, shall not use the card for personal use, and also agree that improper use of this card may result in disciplinary action.
Ohio Admin. Code 3358:5-11-10.1
Effective: 10/31/2012
Promulgated Under: 111.15
Statutory Authority: 3358.04
Rule Amplifies: 3358.04
Prior Effective Dates: 7/1/98, 5/12/06