40-100-1 BOT 06-20-17 PURCHASING (PROCEDURE) Account coding of expenditures in compliance with funding and organization accounting requirements (program and other functional basis) shall be maintained. The following procedures are intended to help assure expenditures are allowable, necessary and reasonable and the proposed costs: 1. are consistent with grant terms and conditions, as applicable; 2. are consistent with grantor and College policies; 3. represent effective utilization of resources; and 4. do not constitute a change in objective or scope of grants and projects. Grant expenditures are governed by the Federal cost principles and must conform with grant policies and grant special provisions. The grant manager is ultimately responsible for ensuring all costs charged to grant awards meet the requirements of the cost principle as contained in the Uniform Guidance, grant terms and conditions, and any other specific requirements of both the award notice and the applicable program solicitation. In the event of any discrepancy between the summary information contained in the cost principles or special provisions specified by individual grants or granting agencies and any specific provisions of the costs principles contained in the Uniform Guidance, the cost principles in effect as of the start date of the grant will govern. There shall be a review of account coding prior to initiating the expense and again prior to recording. I. To ensure costs are allowable for the specific grant. II. To ensure compliance with OMB cost principles. III. Instructions for the allocation of costs applicable to various programs and other functions and costs applicable to a particular grant, cost-matching, or cost- reimbursement agreement shall be as follows: a. Purchases shall be made in accordance with established requirements of the governing board and of funding sources, if applicable (e.g. competitive bidding requirements of government grantors). b. Consistent treatment of costs will be applied uniformly to both federally- financed and other College activities. c. Pre-numbered purchase orders shall be used for all purchases. IV. The purchasing function shall be performed by, and have purchase orders prepared by, personnel independent of: a. Payables and disbursing functions. b. Governing board members. V. Copies of purchase orders shall be distributed to: a. Vendor. b. The acquiring department. c. Accounting. VI. Vendors shall be informed that no orders will be accepted or paid for without an approved purchase order number. Purchase orders shall be: a. Pre-numbered and used in sequence. b. Initiated on the basis of purchase requisitions approved by a responsible employee. c. Approved and signed by the Business Office Manager or the Vice President of Business. Purchase orders shall require independent approval that the expenditure is within budget or funding source restrictions. The numerical sequence of purchase orders shall be checked and appropriate action taken on those open beyond the usual processing time by an employee independent of initiation of purchases. There shall be procedures to follow for emergencies (requirements waived, etc.). There shall be no purchases of goods or services from governing board members, employees, their immediate families, or other suppliers that would create a conflict of interest. Consideration shall also be given to the Buy Indian Act preferential policy.
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