Policy Manual / 400 GOVERNANCE
432 Purchasing Policy / School Council:
August 2005
Information: 0260761566 / DEECD Schools Reference Guide: 7-12 – 7:16 / Revised: June 2014
Manager: Business Manager / Associated Processes: Consultation, Budgeting / Issue No: 2.3
PURCHASING POLICY
Rationale
To ensure an orderly approach to purchasing goods and services. Ensure that the Department guidelines are followed. Ensure accounts are processed properly so that suppliers are paid promptly. Ensure that we get the best possible value obtainable from available school resources.
Operational Guidelines
1.Before ordering, staff must complete an order form using the college’s intranet online record system detailing goods or services required, who they are purchased from, date, account that the order is to be recorded against, CASES code for the expense item and total amount of order inclusive of 10% Goods and Services Tax. The value of the order should be the current quoted costs from the supplier. This must be signed by the principal or his delegate. No unbudgetted items should be ordered without prior approval of the Finance Committee / Principal.The Bursar can check the budget with individuals as required. Orders will not be signed by the Principal unless all areas of the order form are completed.
2.The Business Manager can check the budget with individuals as required. The Principal or delegate may sign orders that are approved by the Finance Committee. Orders that do not comply with budgets will need to be signed by the Principal or approved by Finance Committee prior to signing. Approved copy of order is to be returned to the staff member to enable them to place their order.
3.When the order arrives it is to be checked against the delivery docket (or invoice) and order form and dated and signed as correct. If the invoice is included with the delivery it should be returned to the Business Managerupon receipt. If order is incorrect the staff member should contact the supplier to correct the error.
4.Payment cannot be made without an invoice unless supplier completes a “statement by supplier” form.
5.If goods or services differ to those ordered have been supplied, the acceptance of the principal or delegated officer is needed for the change from the original approval to incur expenditure. Where incorrect items are delivered and are not required they will be returned at the cost of the supplier. No purchase is to be made by a staff member without an official order form/number. If this occurs the payment becomes the responsibility of the staff member. (see exceptional circumstances)
6.Where items are received as ‘on approval’ without a staff member requesting the item, goods will be returned as unsolicited and not required.
7.Should the quantity or price be more than stated on the purchase order, payment is not to be made in accordance with the purchase order unless the approval of the council, principal or designated officer (i.e. Business Manager) as appropriate, is obtained to accept expenditure for any oversupply or price variation.
8.The Principal and the designated officer (Business Manager) may authorise payments up to 15% in excess of prices indicated on purchase orders up to a maximum of $500 additional. Specific approval for payment should be obtained from Finance Committee and School Council.
- The approval to incur expenditure for the variations noted above may be obtained either by an amending purchase order or by the signature of the principal or delegated officer on the suppliers invoice after suitable notification such as:
- ‘oversupply accepted’;
- ‘price increase accepted’.
- The College discourages the use of petty cash. In exceptional circumstance petty cash can be used to purchase items to the value of $50. Prior approval should be sought from the Business Manager and all relevant documentation (e.g. tax invoices) promptly returned. The Business Manager will process any reimbursement upon receipt of tax invoices.
- Staff members who organise programmes or events are required to ensure that payments are made to suppliers by processing order forms and returning invoices (signed, stamped and dated) to the office at their earliest convenience.
- Orders will (where practicable) normally be processed by the Business Manager each afternoon and then signed by the Principal. They will then be given to staff members to send to supplier.
Explanation to Staff
This policy and a flow chart will be provided and explained to staff at the start of the school year.
Exceptional Circumstances
Very rare occasions wherein authorisation is given to purchase without an official order form due to an exceptional situation. Tax Invoice and prior permission from Principal/Business Manager is essential. Decision to be presented to the next Finance Committee for endorsement.
Guidelines re Quotations
Up to $15,000 – at least one written tender. Between $15,000 and $50,000 at least three written tenders are required - if unable to obtain 3 written quotes the acquisition may only be approved by prior consultation and agreement between the School Council President, Principal and Business Manager.
Evaluation and Review
Minor review by Business Managers in consultation with the Principal each year.
Major evaluation by Finance Committee – Once every 4 years.
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