Purchasing/Reimbursement Guidelines

Purchasing/Reimbursement Guidelines

Updated October 2003

These guidelines are designed to assist college employees in obtaining supplies, equipment, goods, services, and reimbursement of non-travel expenses as well as processing bills for payment. The forms used to complete these transactions include: Cash Reimbursement Vouchers, Invoice Vouchers, Purchase Requisitions/Field Orders, Food/Light Refreshment Approval Forms, and Personal Service Agreement (for Non-Employee) Forms.

The guidelines are necessary to ensure compliance with all state laws, procedures, and regulations as well as to verify that competitive procurement requirements are met, that funding is appropriate, and that proper approvals have been obtained. The purchasing and accounting departments at Shoreline Community College administer procurement for all budget units in accordance with the authority delegated by the State of Washington. The purchasing department buys equipment, supplies, and services giving prime consideration to price, quality, delivery, departmental requirements, and vendor performance.

The use of state contracts is mandatory in some cases. Check the following web site prior to sending purchase requisition to the purchasing office . If mandatory-use state contract exists, the contract number should be noted on the purchase requisition along with vendor information and pricing from the state contract.

The Purchasing Office at Shoreline Community College should be contacted for questions regarding purchase requisitions and personal service contracts at (206) 546-4511 or email . The Accounts Payable Office should be contacted for employee reimbursements, small personal service contracts, utility bills, and payment of memberships and subscriptions at (206) 546-4527 or email .

For travel guidelines, please refer to Shoreline’s travel procedures book which has been provided to all Dean, President and Vice Presidents’ assistants, Division Secretaries, and numerous support staff. For travel questions or to obtain the travel manual, contact the travel desk at 546-4501 or email .

These guidelines are arranged in alphabetical order based on the form used. Appendix A provides a crosswalk between the activity and the form to use.

**Shoreline Community College will never purchase or reimburse an employee for alcoholic beverages or tobacco products per state requirements.**

To assist with year-end closing and ensure that we follow all state guidelines and requirements, all purchase requisitions that are not emergency in nature must be submitted to the business office by May 1 of each year. If submitted after May 1, your request may not be processed in the current year. Please plan accordingly. We appreciate your cooperation.

Budget Authority

Only individuals who have budget authority signatures on file with the Financial Services and Budget Office may approve Purchase Requisitions, reimbursements, printing, motor pool usage, food, contracts, etc. Please direct your questions to a Budget Analyst at (206) 546-4696 or email at .

Cash Reimbursement Vouchers

For employee reimbursements of $50.00 or less, a Cash Reimbursement Voucher can be submitted to the college cashiers for immediate payment. The original receipt must be attached and the employee’s supervisor must approve the form. Reimbursement for travel, parking, registration fees, memberships, subscriptions, equipment, salary, or awards will not be processed through a Cash Reimbursement Voucher.

Contracts

Personal Service Contracts:

A Personal Service Contact is required when an independent contractor performs a professional or technical service. The company or individual must be in the business of providing services to many clients, should have a business license, and a Federal Tax Identification Number (TIN). Examples: Speakers, Entertainers, Coordinators, Consultants, and Negotiators.

$500 or Under - may be submitted directly to Accounts Payable on an Invoice Voucher.

$501 to $5,000 – may be submitted to the Purchasing Office on a Purchase Requisition with a Non-Employee Agreement for Services. The agreement must be signed by the Vice President of Administrative Services, Dean, or College President and contractor. Attention should be paid to making sure the contract is exact and complete and is satisfactory to the college. Purchasing must receive the paperwork a minimum of two weeks prior to the contractor’s start date.

$5,001 to $20,000 – may be submitted to the Purchasing Office on a Purchase Requisition with a Non-Employee Agreement for Services attached. The agreement must be signed by the Vice President of Administrative Services, Dean, or College President and contractor. Attention should be paid to making sure the contract is exact and complete and is satisfactory to the college. All personal Service Contracts over $5,000 (with certain exceptions) must be filed with the Office of Financial Management. Purchasing must receive the paperwork a minimum of three weeks prior to the contractor’s start date. Failure to comply with OFM’s 15-day advance filing requirement may result in a $300 civil penalty.

Over $20,000 – may be submitted to the Purchasing Office on a Purchase Requisition with a Non-Employee Agreement for Services attached. The agreement must be signed by the Vice President of Administrative Services, Dean, or College President and contractor. Attention should be paid to making sure the contract is exact and complete and is satisfactory to the college. Agreements for this amount and greater must be competitivelybid. All personal Service Contracts over $20,000 (with certain exceptions) must be filed with the Office of Financial Management. Purchasing must receive the paperwork a minimum of eight weeks prior to the contractor’s start date. Failure to comply with OFM’s 15-day advance filing requirement may result in a $300 civil penalty.

Personal Service Contracts cannot be used with any state employee. This question must be asked before entering into a contract. This includes full-time, part-time and work-study employees. All work performed by state employees must follow SCC Personnel/Payroll procedures available in the Human Resources Office.

Only a Vice President, Dean, or College President can sign an Agreement for Services for a Personal Service.

Purchased Service Contracts:

Purchased Service Contracts are for services provided by a vendor to accomplish routine, continuing and necessary functions.

Any $ Amount – may be submitted to the Purchasing Office on a Purchase Requisition with a Non-Employee Agreement for Services attached. The agreement must be signed by the Vice President of Administrative Services, Dean, or College President and contractor. Attention should be paid to making sure the contract is exact and complete and is satisfactory to the college. Purchasing must receive the paperwork a minimum of two weeks prior to the contractor’s start date.

Purchased Service Contracts cannot be used with any state employee. This question must be asked before entering into a contract. This includes full-time, part-time or work-study employees. All work performed by state employees must follow SCC Personnel/Payroll procedures available in the Human Resources Office.

Only a Vice President, Dean, or College President can sign an Agreement for Services for a Purchased Service.

Client Service Contracts:

Client Services are defined as services provided directly to agency clients (students) including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.

Client Service Contracts cannot be used with any state employee. This question must be asked before entering into a contract. This includes full-time, part-time or work-study employees. All work performed by state employees must follow SCC Personnel/Payroll procedures available in the Human Resources Office.

Only a Vice President, Dean, or College President can sign an Agreement for Services for a Client Service.

Encumbrances

An encumbrance (open purchase order) is a legal contract for on-going, unspecified, small, and emergency goods and services on an “as needed” basis. An encumbrance acts as a “line-of-credit” with a particular vendor or supplier and limits the total amount of purchases that can be made throughout the year. The encumbrance is established through a Purchase Requisition issued by the department and a subsequent Field Order issued by the Purchasing Office.

Accounts may be opened with specific vendors for miscellaneous purchases throughout the academic year for up to $3,000. This amount is an annual cumulative total not a maximum per order. If this amount is not sufficient, a written justification for a greater amount must be attached to the Purchase Requisition. If the purchasing office receives an encumbrance request for over $3,000 but without written justification, the purchasing office will process the encumbrance for the maximum amount of $3,000. Once approved through Purchasing, you may place an order directly with the vendor. Make sure that you give the vendor the complete Field Order number (not the purchase requisition number) each time you place an order. If a division needs to increase the amount on an existing encumbrance, send a memo or email to , Director of Financial Services and Budget, explaining in detail the need for the additional funds.

Equipment Inventory

Purchased Equipment:

Shoreline Community College maintains an inventory of its fixed assets, which consists of furniture and equipment (non-consumable items, generally over $1,000 and small & attractive items regardless of price, either purchased or donated to the college). The purchasing office will issue a Washington State or SCC Local Tag to each of these items and attach to the form “REPORT OF NEW EQUIPMENT PURCHASES”. This form needs to be filled out by the division and returned to Accounts Payable with the divisions signed Field Order.

Donated Equipment:

If someone has contacted you about donating equipment to the college, please contact the Shoreline Community College Foundation Director at (206) 546-4755 or email .

Surplus Equipment:

For equipment to be surplused complete a Repair and Special Work Request Form with the respective Administrator and Vice President’s signature(s).

Please include the following on the form:

Description of the equipment to be surplused. This is a physical description such as type of equipment, dimensions, weight, special handling/storage requirements, color, etc.
Source of acquisition, e.g. acquired with state, federal funds or donated.
Date of acquisition/donation
Estimated value, current (provide source of estimate if possible)
State Inventory tag number (if any)
Location of the equipment
Requested date of removal and relocation (if applicable)

Send the original form to the Director of Facilities . A copy of the form will go to each of the following: the respective Vice President, Financial Services and Budget Office, and the Development Office.

The Director of Facilities will make arrangements to dispose of the equipment through accepted General Administration and OFM procedures and processes.

Proceeds from any sale of equipment and the related expenditures to surplus the equipment shall be charged to a general fund account.

Field Orders

A Field Order (purchase order) is issued only by the Purchasing Officefor goods and services requested by the ordering department (please note that all memberships and subscriptions are processed on a Invoice Voucher form, not a Purchase Requisition/Field Order). The Field Order is a legal contract between the College and its suppliers. It is also the document against which the vendor’s invoice will be paid. The Field Order will be issued only upon receipt of a properly completed Purchase Requisition. If your department uses an internal purchase requisition number, it will appear on the Field Order.

After Purchasing has completed the Field Order, a copy (white, stating “Receiving Div./Dept. Copy”) will be sent to the division. When you receive delivery of the goods or services indicated, the budget authority should sign and date this copy of the Field Order and return it to Accounts Payable. This informs Accounts Payable that goods have been received and payment can then be made.

The Purchasing Office must approve any change to a Field Order. Requests to change a Field Order should be made in writing to the Purchasing Office by the appropriate budgetary authority.

Food Purchases

The Legislature has chosen to limit the amount of food and light refreshments that may be purchased with public funds. This includes state funds, federal funds, student funds, self-support funds, grants & contracts. Where specific rules are not provided by the funding entity, Washington State Law applies. “Reimbursement for serving coffee and/or light refreshments at agency sponsored meetings, conferences, conventions, or training sessions is provided under RCW 43.03.050(4). This authority is not intended for use in the normal daily business of Shoreline Community College employees or officials, but rather for special situations or occasions such as college sponsored training, workshops, or college meetings which included participants from off campus.”

Shoreline’s Board of Trustees approved Policy 3804 in 1999. Requests to serve coffee and/or light refreshments must be approved at least three days in advance by the use of an Advance Approval Form. The request should include a justification statement supporting the request, a meeting agenda, the names of the state organizations or persons attending the meeting, and the purpose of the event. Please thoroughly read Policy 3804 for additional details.

Requests must meet all of the following requirements:

the purpose of the meeting, conference, convention or training session is to conduct official state business or to provide formal training that benefits the state; and

the coffee and/or light refreshments are an integral part of the meeting, conference, convention, or training session;

and

the college obtains a receipt for the actual cost of the coffee and/or light refreshments;

and

expenditures for coffee and/or light refreshments are to be accounted for under object code “GD” as defined is Subsection 7.2.6.2 of the OFM regulations;

and

Advance Approval form for serving coffee and/or light refreshments is signed by the organizational unit administrator responsible for the meeting, conference, convention, or training session as well as the College President, prior to the event.

Restrictions: Serving coffee and/or light refreshments for anniversaries of the college, individual employment anniversaries, receptions for new, existing, and/or retiring employees or officials, etc., constitutes “hosting” which is prohibited under state regulations. Hosting includes, but is not limited to, those activities that are intended either to lobby a legislator or governmental official or are to be social rather than governmental business events; hosting includes providing meals for which the college is not legally authorized to reimburse.

Once the above requirements are met, a Purchase Requisition and the Advance Approval Form should be forwarded to the Purchasing Office for processing.

For reimbursement of meals while in travel status, please refer to Shoreline’s travel manual.

**Shoreline Community College will never purchase or reimburse an employee for alcoholic beverages or tobacco products per state requirements.**

Invoice Vouchers

An Invoice Voucher is another form of a Purchase Requisition/Field Order for smaller, incidental items and reimbursements. The Invoice Voucher Form is available from the Financial Services and Budget Office at (206) 546-4513 or email. An invoice voucher is used for:

Employee Reimbursement for supplies and materials up to $300. Approval by your immediate supervisor is required for all employee reimbursements even if you are the primary signer on the budget to which the expenditure is charged. This is necessary for internal control. It is advised that you obtain pre-approval prior to spending your own money otherwise you may not be reimbursed.

Service Contracts to non-employees up to $500. When the amount is more than $500, compensation needs to be processed with a Purchase Requisition/ Field Order.

Faculty Development reimbursement upon request by faculty up to $400 per year. Please note that the purchase is for Faculty/Professional Development.

Classified Training and Staff Development reimbursement upon request from classified staff up to $100 per year. Approval to spend from the Classified Training and Staff Development Account administered by Human Resources must accompany the Invoice Voucher.

Petty Cash Reimbursement for departments that have approved petty cash funds (Lake Forest Park, Physical Education, and Cashier’s Office).

Payments to vendors confirming orders up to $500.00.

Purchasing Credit Card Purchases (Visa) for those divisions using the JPMorganChase Visa credit card, please refer to the Purchasing Card Policies.

Prohibited Purchasing Card transactions include but are not limited to:

a)Travel related expenses (lodging, registration, mileage, rental cars, meals, etc.).

b)Purchases of computers, computer related hardware, peripheral devises, and software, unless TSS has granted approval (either by signing the Purchase Requisition or documentation via email) and instructed the division to proceed with the purchase.

c)No payments for services are allowed.

Refunds for ticket sales, scholarships, etc.

Operational expenses for telephone, utilities (electric, gas, water, sewage, etc.) and bookstore freight.

Purchase Requisitions

A Purchase Requisition is an internal department request for goods and services (please note that all memberships and subscriptions are processed on a Invoice Voucher form, not a purchase requisition/field order). This is not a legal or binding order and should never be sent to a vendor. Any budget unit that needs equipment, materials or supplies, must complete a Purchase Requisition. Purchases of computers, computer related hardware, peripheral devises, and software, must first be approved by Technology Support Services prior to sending to the Purchasing Office (either by signature on the purchase requisition or documentation via email). After approval by the appropriate budget authority and TSS (if applicable), send to the Purchasing Office. The Purchasing Office will process requisitions on a first come, first served basis. This is the only way we can serve all equitably. Always keep a copy of the Purchase Requisition for your records.