Financial Policies

CHAPTER 1:

PURCHASING POLICIES AND PROCEDURES

II. PROCEDURES

The following procedures can be implemented only if two conditions are fulfilled:

• Adoption of a balanced budget by the Board of Trustees
• Availability of financial resources

The purchasing procedures consist of three primary categories of activities:

1. authorization and control of purchase requests,
2. pricing and vendor selection, and
3. reception of goods and distribution to the users.

These procedures and the related procedures of interfacing departments, such as accounting, help to ensure the accuracy, completeness, efficiency and independence of the purchasing function.

A. Authorization and Control of Purchase Requests

A numbered Purchase Request will be prepared by the user schools and departments for all equipment, services and normal academic and administrative supplies used in recurring operations. The Purchase Request must include a detailed description of the item and information on the intended use and purpose for acquiring the item. Following approval, all Purchase Requests should be sent to the Director of Purchasing.

Blank Purchase Requests will be issued to user schools and departments by the purchasing department.
Users are responsible for ensuring that items are included in authorized budgets and must assign appropriate cost center codes and budget references.

The purchasing department will maintain a file of all open and completed Purchase Requests by school and department.

Purchase Requests must be planned by the user schools and departments and submitted well in advance of the expected date required. In general, requests expected to involve local suppliers should be submitted for approval such that the purchasing department will receive approved orders one month ahead of expected arrival. Requests expected to involve foreign suppliers should allow at least eight to ten weeks from receipt of approved Purchase Requests by the Purchasing Department.

To assist in the ordering of office supplies, the schools and departments will be provided with a list of the items normally carried in stock and a recent price for each item. The users should use these prices to complete their formal Purchase Request. All office supplies requests should go first through the budget service for the required imputation.

B. Pricing and Vendor Selection

Formal pricing and vendor selection will be processed only upon submission of a properly prepared and approved Purchase Request Form to the Purchasing office (see these requirement below). Having received this form, the Purchasing Department will proceed as follows, unless otherwise decided by the President, to determine prices and vendor selection:

A. For purchases below DH 2.000,00 comparative bids are not necessary and the department's head can process the procurement. The head of the department can either ask for a petty cash to pay the supplier or, in case an employee advances the payment, he may ask for the reimbursement based on the regular supporting documents (Budgeted PR, invoice, delivery report). In case of a petty cash advance request, the head of department is asked to provide the said supporting documents no later that one week after the money reception.

B. For all purchases in excess of DH 2.000,00 but less than DH 200. 000,00 three comparative bids at least should be provided. When a supplier has a monopoly in a specific product, a certificate of exclusive rights should accompany the purchasing file.

Once a vendor has been selected for a general category of products, repeated purchases may be made from the same supplier for similar products for a period of one year unless such products experience significant price change. If this occurs, the comparative bids’ procedure should be renewed.

All external purchase orders should be signed by the purchasing director, stamped by the budget control department and approved by the VPFA. A purchase order may be submitted to the ordering department for signature when the need to do so is determined by the nature of the order, ex. technical specifications related to computing material should be approved by the ITS Director.

The purchasing department will participate in the receipt and verification of all goods. The reception may take place in Building 12 or at the user’s premises, whichever is more appropriate for the items involved.

Users will sign the delivery document along with the Purchasing Department to acknowledge receipt in good condition with any exceptions noted. The ordering school or department has primary responsibility for determining the accuracy of items received and the presence of any damaged goods. In cases where inspection of large, detailed or technical purchases requires a period of time to conduct, the ordering school or department will conduct such inspections and notify purchasing, as soon as possible, of any missing or damaged goods.

For deliveries which do not have an external delivery document (i.e., Bon de Livraison) the Delivery Report must be prepared and will serve as the primary delivery document. The Delivery Report should generally be used to provide a detailed listing of delivery exceptions and will be the basis for returning goods to suppliers or requesting credit for undelivered items. The delivery report should be signed by both the purchasing department and by the ordering school or department.

C. Reception of Goods and Distribution to Users

Invoices for transactions authorized and received by the same individual without the involvement of the purchasing department will not be accepted for payment with the exception of nominal (generally less than DH 1 000), emergency purchases by individuals with direct budget responsibility.

Completed delivery documents with matching invoices will be forwarded to the accounting department for payment. The invoice is furnished to the ordering school or department for validation by the department head.