40-100-1 BOT 09-20-07 PURCHASING (PROCEDURE) Account coding of expenditures in compliance with funding and organization accounting requirements (program and other functional basis) shall be maintained. There shall be a review of account coding prior to recording. I. 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. Pre-numbered purchase orders shall be used for all purchases. II. 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. III. Copies of purchase orders shall be distributed to: a. Vendor. b. The acquiring department. c. Accounting. IV. 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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