POLICY OF BOARD OF TRUSTEES OF PEARL RIVER COMMUNITY COLLEGE
Adopted: Tuesday, December 7, 1993
Revision Number: 5
Revision Date: Thursday, June 14, 2022
Reference: Financial Resources
Policy:
Purchasing regulations will be followed by all college employees.
Procedure:
1. All purchases of materials, supplies and equipment with a cost of $5,000 or less will originate with the faculty or staff member desiring to make the purchase.
2. A purchase requisition form will be completed by the originator and must contain the quantity, description and cost of the item(s) to be purchased. The general ledger account number to be charged should be noted.
3. The signed requisition form will be submitted to the immediate supervisor for review and approval.
4. If approved, the administrator will also sign the requisition and forward it to the Business Services Office.
5. The Chief Financial Officer or designee will code and enter the requisition into the computer system for the purpose of confirming available funds, and for the creation of the purchase order. If funds are not available, the requisition will be rejected as NSF, and the requisition will be returned to the originator for assistance. If funds are available, the general ledger account will be encumbered for the amount of the requisition.
6. The Business Services Office has the primary responsibility of producing the purchase orders as needed.
7. Upon producing the purchase order, an electronic copy of the purchase order is emailed to the originator. Once the merchandise is received, the originator will return the email to the Business Services Office confirming receipt of the merchandise. This confirmation will serve as authorization for the Business Services Office to process and pay the related invoice for the merchandise.
8. The original purchase order is created and printed within the Business Services Office on a single-part form containing all required information as well as a system-generated signature of approval by the institution’s purchasing agent. The form is emailed to the requisitioner.
9. A purchase order report is generated by the computer system and made available to the Warehouse Comptroller/Shipping and Receiving Clerk.
10. A file copy of the purchase orders is generated and provided to the Staff Accountant, who will later match the copies to incoming invoices for processing.
11. The Staff Accountant supervises the entry of the approved invoices into the computer system. The previous encumbrance is then removed and the general ledger account is charged with the actual cost of the purchase.
12. Accounts Payable checks are generated weekly to pay approved invoices.
13. Purchases that do not involve an expenditure of more than $5,000, exclusive of freight or shipping charges, may be made without advertising or otherwise requesting competitive bids. See Mississippi Code 31-7-13 for further details.
14. Purchases that involve an expenditure of more than $5,000 but not more than $75,000, exclusive of freight and shipping charges, may be made from the lowest and best bidder without publishing or posting advertisements for bids provided that at least two competitive written bids have been obtained. See Mississippi Code 31-7-13 for further details.
15. Purchases that involve an expenditure of more than $75,000, exclusive of freight and shipping charges, may be made from the lowest and best bidder after advertising for competitive sealed bids once each week for two consecutive weeks in a regular newspaper published in the county. See Mississippi Code 31-7-13 for further details. The Vice President for Enrollment Management and Business Services will present the bids to the Board of Trustees for final approval. Any bid accepted other than the lowest bid will have justification written into the minutes of the Board meeting.
16. Purchases made as “Confirmation Only,” (i.e. purchase order is obtained after placing and/or receiving materials) may be used only in an emergency situation. Such emergency purchases will be presented to the Board of Trustees for their information only. Written justification must be attached to the requisition. Abuse of this procedure may result in the suspension of purchasing privileges.
17. The purchase of computer hardware and/or software is to be coordinated with the Chief Information Officer.
18. Due to the nature of their work, the Maintenance Department and the Transportation Department are allowed to make emergency purchases less than $150 per day, per vendor, with the use of the departmental short form requisition.
19. The intent of this Procurement Card (Credit Card) is to allow employees to make small purchases of commodities, repairs, or services easier and more economical. A credit card should only be used for the following reasons:
• A vendor does not accept purchase orders
• Approved out-of-state-travel and in-state travel that involves students
• An emergency (unforeseen circumstance that must be addressed immediately for reasons of safety or to prevent the disruption of regular services of the college).
The maximum amount of a single purchase transaction on a procurement card shall be $5,000. Prior to receiving a credit card, the employee shall sign a statement verifying that he/she has read these minimum requirements and any additional policies established by the college, and that it is understood he/she will be personally liable for any purchase that is made which is not in compliance with these procedures.
In addition to being responsible for any such charges, the employee may lose the privilege of using the credit card.
• Any purchases made using a credit card will adhere to all applicable purchasing procedures, including submitting an approved requisition prior to the transaction.
• When purchasing commodities, employees must submit documentation with the requisition that the vendor does not accept purchase orders.
• Vendors should be notified that the purchase is being made in the name of a government entity which is exempt from state and local taxes.
• Credit cards should be returned to the Business Services Office within 24 hours after a purchase is made or returning from travel or the next business day (if applicable)
• A detailed sales receipt or an order description that includes an itemized list of all items purchased is to be turned into the Business Services Office with the credit card. This list should have the purchaser’s printed name and signature.
• Employees should notify the Business Services Office that all items are received (no back orders allowed).
• The Business Services Office will review monthly statements and applicable documents to assure that only proper purchases have been made and that the statement accurately reflects the charges indicated on the receipts, logs, and dispute documents. The Business Services Office shall verify all statements and submit for payment.
• The Business Services Office shall maintain a file with the statements and all applicable receipts and dispute documents.
• For any missing documents or receipts, employees will be required to complete a notarized Missing Document Affidavit.
20. Grant Funded purchases will adhere to the stricter regulation: PRCC policy or grant policy.
