Peckham Industries, Inc.

Procedures on Purchases

Effective April 1, 2006Last updated 3/23/06

General Requirements

Guidance for plant clerks and plant managers on the proper tracking and review of purchases:

  1. The Plant Manager is responsible for the proper tracking and review of all purchases. Any discrepancies noted must be promptly investigated, documented and communicated to Regional VP and Accounting.
  2. The Plant Manager is responsible for the existence of all deliveries.
  3. Plant personnel assigned to oversee the delivery process must exercise due care to ensure that the quantities delivered matched and reconciled to the amount purchased.
  4. The person taking delivery must take the original bill of lading, delivery slip or invoice (delivery document) that accompanied the delivery and verify the items and quantities shown on the delivery document.
  5. All bulk materials delivered from non-PII plants must be weighed or measured.
  6. Such materials include fuels, aggregates and asphalt.
  7. The Plant Manager must not accept any variance on bulk weighed that is greater than 0.5%.
  8. During busy times, aggregate deliveries should be randomly checked.
  9. Delivery tickets must be collected on delivery and reviewed.
  10. Fuel deliveries must be metered with net gallons shown on receipt.
  11. Repair parts should be seen and if applicable, counted for verification.
  12. Discrepancies in items or quantities should be promptly investigated and brought to the attention of the delivery personnel. If unable to resolve, the Plant Manager should be promptly notified.
  13. If the Plant Manager is unavailable, the plant clerk must clearly indicate problem on all copies of paperwork with signatures from both parties.
  14. The Plant Manager must investigate discrepancy and resolve with vendor. All matters under investigation must be properly documented and such documentation must be properly retained for future reference.
  15. When the Plant Manager is unable to resolve a dispute, he must promptly notify the Regional VP and Accounting.
  16. Invoices for disputed materials will be vouchered into the system and placed “on hold” at the Plant Manager level. Do not hold disputed invoices in a file.

Confidential – For Internal Distribution OnlyPage 1