Purchasing Overview and Training
August 2013
Contacts Director of Purchasing: Janice Dellinger P: 5353 E-mail:
[email protected] Procurement Specialist: Elaine Reese P: 5232 E-mail:
[email protected] Fax: 864-503-5258
Training Objectives 1. Examine methods of procurement 2. Show how to effectively manage your financial resources when utilizing these procurement methods 3. Provide a working knowledge of the procurement processes 4. Examine proper inventory control and property management
Purchasing Department Responsibilities • Review, approve and process all procurement transactions • Ensure compliance with the SC Consolidated Procurement Code and USC Policies and Procedures.
Purchasing Department Goal To provide professional services to meet the needs of the academic and administrative departments of the University at the lowest possible cost. We provide a full range of purchasing services and are here to assist you through all stages of the procurement process: 1. 2. 3. 4. 5.
Planning your purchase Quotation and solicitation process Vendor selection Processing documents Tracking and delivery of goods
Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
5 Stages of the Procurement Process
Stage 1 - Planning Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
Planning It is important to plan appropriately before a purchase is made. Each employee is charged with being good stewards of university funds.
Stage 2 - Purchasing Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
Types of Procurement Competitive:
The University’s preferred method of procurement for purchases. Utilizes quotes, solicitations, or proof that the price is fair and reasonable (see next slide). Emergency:
Procurements performed when a situation or condition occurs which “creates a threat to public health, welfare or safety”.
Sole Source
Only when there is a single supplier for the requirements. Requires written authorization from USC Director of Purchasing and USC Vice Chancellor for Business Affairs. Upon approval, orders are issued by USC Columbia Purchasing Office.
COMPETITIVE PROCUREMENT GUIDELINES Amount Up to $10,000
Over $10,000 up to $50,000 Over $50,000 up to $1,000,000 INFORMATION TECHNOLOGY Over $50,000 up to $1,500,000 GOODS AND SERVICES Over $1,000,000 INFORMATION TECHNOLOGY Over $1,500,000 GOODS AND SERVICES
Action required Price must be deemed fair and reasonable by the procurement officer Advertised, written solicitation of quotes, bids or proposals
Lead time (days) 1-3 days
Advertised written solicitation of bids or proposals
Comments Any back up pricing should be included with purchase requisition Upstate Purchasing Dept. must prepare and issue the solicitation USC Purchasing must prepare and issue the solicitation
Advertised written solicitation of bids or proposals
USC Purchasing must prepare and issue the solicitation
21-60 days (dependent upon complexity)
Advertised written solicitation of bids or proposals Advertised written solicitation of bids or proposals
State Information Technology Management Office State Materials Management Office
45-90 days
10-21 days
21-60 days (dependent upon complexity)
45-90 days
Methods • Purchase Order – issued by USC Upstate or USC Columbia purchasing department depending on type of procurement after receiving completed purchase requisition submitted by user department.
• Visa Purchasing Card – issued upon request to individuals who are responsible for purchasing
• Direct Expenditure Voucher (DEV)– submitted with invoices for payment of items that are not suitable for processing through other procurement methods. Some examples are: – vehicle repairs – subscriptions – contributions and dues
Methods: Purchase Order A written sales contract between buyer and seller detailing exact merchandise or services to be rendered from a single vendor. It specifies item identification, quantities, shipping and payment terms, delivery instructions, and all other obligations and conditions. Blanket Purchase Order – used for small, repetitive orders with same vendor; examples are: leases, rentals, and maintenance contracts.
Methods: Purchase Requisition Complete Purchase Requisition and include: signature approval as required for dollar limit Department, fund, and class Department name, building, room no., and contact phone no. Item number, quantity and unit Description of articles – catalog no., and unit price
Mail to: Purchasing Administration 301 Attn: Elaine Reese or fax to: 5258
Link: http://purchasing.sc.edu/doc/pur-req2.pdf
Methods: State Purchasing Card • Purchasing cards are issued to individuals only, not to a department. • No purchases exceeding $2,500 per transaction • Also known as the “P-Card” • Purchasing cards CANNOT be used for travel, food, gift cards, rent, or postage expenses
Methods: State Purchasing Card • Detailed receipts for p-cards must be submitted to card liaison. • P-card charges automatically default to an assigned department/fund/class code • If your charges need to be changed to a different object code or allocated to a different account, see your card liaison. • P-card accounts are audited periodically by USC Internal Audit.
Methods: Direct Expenditure Voucher Examples paid by DEV: Books Subscriptions Contributions or dues • Vendor’s Federal Identification Number is required on all services and goods greater than $500 •DEV’s are not to be used to process after-the-fact procurements
https://web.admin.sc.edu/entryV.php
• DEV form must be complete with attached original invoice before submitting to the Purchasing Department
Authorized Signatures • Purchase requisitions must have signature of authorized principal investigator or department head • Purchase orders will be signed by the authorized buyers or managers of the Purchasing Department • All leases and contracts MAY ONLY be signed by either : – USC Upstate Chancellor (if the contract is no greater than $25,000) or – Secretary of the USC Board of Trustees or authorized delegate
Unauthorized Purchases • Unauthorized purchases are transactions in which a vendor extends credit to an individual representing the University without purchase authority. • To ratify an unauthorized purchase, the purchaser must write a memo explaining the purchase, why the purchase was made without authorization and how further unauthorized purchases will be avoided. • Authority to ratify an unauthorized purchase ultimately lies with the President of the USC System
State Term Contracts Based on demand by state agencies, the State Materials Management Office establishes term contracts with various vendors for goods and services and information technology. Use of these term contracts is mandatory. Exception may be granted under the 10% rule; if the item can be procured from another vendor for less than 10% of the contracted cost, and only if the contract vendor will not meet the lower price.
http://www.mmo.sc.gov/PS/PS-index.phtm
Stage 3 - Receiving Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
Receiving Campus Receiving is responsible for receiving and delivery of all materials and equipment purchased by the departments. When receiving a package, Campus Receiving will: – Check to insure accuracy – Handle claims for damages and shortages – Notify the ordering department of the discrepancy and the action taken – Deliver package to the designated location
Receiving • The Purchasing Office requests that receipt of merchandise processed on purchase orders be routed through Campus Receiving. If alternative delivery arrangements are required, please advise the purchasing department prior to issuance of the purchase order. • Return shipments should be coordinated and processed with Campus Receiving
Stage 4 - Payment Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
Payment The department receiving merchandise or services should forward all packing, sales slips, and invoices to the USC Upstate Accounts Payable office.
Stage 5 – Tracking and Inventory Planning
Tracking and Inventory
Purchasing
Procurement Process
Payment
Receiving
Inventory and Property Management • Physical Inventory • Surplus Property • Warehouse Management
Physical Inventory • Departments are responsible for maintaining an annual physical inventory for furniture, fixtures and/or equipment greater than $5,000.00. These items are identified with an assigned number affixed to the asset. • Physical inventory is conducted annually by the USC Consolidated Service, with all items verified by the owning department • Departments are responsible for reporting changes in status of inventory such as relocation, departmental transfers, trade-in, and disposed items, by completing a Form-7 http://purchasing.sc.edu/doc/Form7.pdf • University property shall NOT be disposed or sold without PRIOR review and approval by SC State Surplus Property
Surplus Property University departments must turn in surplus items when no longer needed or broken. Items in “serviceable” condition may be reissued to another department or sold by the State Surplus Office. The sale of items may be held “on-site” at the agencies location, taken to the State Surplus warehouse, or sold via auction on-line through http://www.govdeals.com/
Warehouse Management The University maintains a 28,000 square foot warehouse located at 8000 Valley Falls Rd. The University Services Building is the depot for bulk inventory storage and surplus staging for reutilization or disposal. Depending on space availability, it may be used for temporary storage.
Thank You! Important Links • Purchasing • Accounts Payable • Receiving and Consolidated Services
