PO Policy & Procedures



Title: Purchase Requisition Policies & Procedures

Scope: This document covers the processing of a Purchase Requisition, which are the source documentation that allows data to be processed onto Banner to create a Purchase Order for the supply of goods and services.

Objectives:

• To ensure that the processing of the Requisition is accurate in detail and meets all University and Audit requirements.

• To ensure processing of the Requisition is of a timely nature and satisfies the requirements under GST legislation.

Issues: Nil.

Policies:

• Appropriate authorisations and approvals must be received prior to processing.

• With the exception of orders raised by Division of Library Services & Division of Information Technology Computer shop, all purchases require the completion of a Purchase Requisition (Form FU3) prior to the order being raised or payment of an invoice by Direct Pay.

• Purchase Requisitions will be pre-numbered and prefixed RA, RB or RW.

• Purchase Requisitions are accountable documents and must be stored securely and in such a manner as to allow accurate and easy retrieval for query and Auditing purposes.

Procedures:

Raising Purchase Requisitions

• When a School or Section wishes to purchase goods or obtain services it is required to first raise a Purchase Requisition for forwarding to the Purchasing Office.

• The form should include all the information necessary to enable purchasing staff to either obtain quotations or process the requisition and raise a Purchase Order.

• If written or verbal quotations have been obtained, or if the item to be purchased is from a previously determined contract source, full details should be included on, or attached to the Purchase Requisition.

• If a suitable vendor is known, the name and address should be provided and only items which can be obtained from that vendor should be included on the Purchase Requisition. If the vendor is not known, only items of a similar nature which would usually be available from a single vendor should be included on the Purchase Requisition. Only one supplier per Purchase Requisition is permitted with the exception of Purchase Requisitions relating to Advertising, in which case the University has approved that two suppliers (design of Ad and placement of Ad) may be used for each requisition.

• The requisitioner is to complete the form and sign to certify that the goods/services contained thereon are required for University purposes.

• Pricing of each item to be purchased MUST BE GST INCLUSIVE, except for goods imported which are to be priced as GST exclusive. Customs will invoice CSU separately for GST.

Approving Purchase Requisitions

• The Budget Manager is required to sign the requisition to evidence that funds are available to commit expenditure for the purchase. It is the responsibility of Budget Managers to satisfy themselves that the goods/services are required and that funds are available for the purchase.

• The completed Purchase Requisition is to be forwarded to the Purchasing Office on the Campus.

• On receiving the Purchase Requisition, the Purchasing will assign the Purchase Requisition to a buyer who will initiate action to complete it to a point where a Purchase Order can be raised. This may include:

➢ Checking NSF.

➢ Calling quotations / tenders.

➢ Locating a suitable supplier from contract sources.

➢ Sourcing from preferred university supplier.

➢ Submitting to Purchase Board for approval.

➢ For Requisitions requiring PB approval the total of Requisition including GST will be the determining value. Eg all Purchase Requisitions with a value of over $5000 will require PB approval.

• Once the Purchase Requisition has been completed, Finance will arrange for its authorisation under Section 12 of the Public Finance and Audit Act 1983 in accordance with the approved delegations by the Board of Governors.

Non Sufficient Funds

• Upon receipt of an approved Purchase Requisition Finance will check using the web Budget Available Inquiry form, to confirm that funds are available for the purchase. Finance staff may override the NSF indicator if there are funds available from the web inquiry screen. No processing is permitted without approval of the Finance Manager (Supply) for any other Purchase Requisitions that indicate NSF.

• Purchase Requisitions which indicate NSF must not be processed, an e-mail will be sent to the appropriate Budget Manager requesting a Budget transfer and Purchasing staff notified of when this has been completed. Only then will processing be undertaken for the Purchase Requisition.

• Banner form FGIBAVL (Budget Availability Status Form) will show the GST inclusive amount so cannot be used to determine the true NSF situation. Only the DFS Web page Budget Availability Inquiry form can be used to check whether Budget is available for the Purchase Requisition.

Direct Pay Processing

Where the Purchase Requisition is received in Finance, with an invoice attached, meaning the goods and/or services have already been supplied to the University, the following process will occur:

• The purchasing officer will ensure all necessary approvals have been obtained before processing.

• The Purchase Requisition will be stamped with the Direct Pay stamp and details entered. The Invoice will be stamped with the appropriate Direct Pay Stamp and details from the requisition accurately transferred.

• The invoice will then be processed for payment.

Responsibilities:

Budget Managers of Faculties/Divisions:

• Ensuring that accurate and complete Purchase Requisitions are forwarded to Finance for processing.

• Suggest suitable suppliers of goods and/or services.

• Evaluation and recommendation of tenders / quotations called on their behalf.

• Ensuring that sufficient funds are available.

• Ensuring that goods and/or services are required by the University and are not for private use.

Finance:

• Ensuring that purchase requisitions are accurately processed with correct account code, supplier and other appropriate relevant information in a timely manner.

• Ensuring that appropriate authorising signatures are obtained prior to processing.

• Ensuring that University procedures are followed regarding tendering and quotations.

• Checking the web inquiry form for NSF on Purchase Requisitions received and ensuring appropriate follow-up action is undertaken.

• Filing Purchase Requisitions in a manner that allows ease of retrieval for query and Auditing purposes.

Implementation: This procedure has been implemented and is subject to regular review.

Date Submitted: Originally submitted June 1994. Submitted for review June 2000. Reviewed November 2003

Date Approved:

Prepared by: Mike Smith, Finance Manager (Supply).

Reviewed by: Davin Kendall, Finance Manager (Payables) – Nov. 2003.

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