D 4 - General Purchasing Procedures

The responsibility to implement the foregoing procedures has been delegated to the Purchasing Agent at the District Office, and the cooperation of all individuals and divisions/departments is requested. The Purchasing Department will seek bids and purchases from certified targeted small businesses and will award contracts when deemed appropriate. Revisions in policies and procedures will be made in future publications of this document when required. Suggestions from the faculty and staff for future changes will be welcomed by the Purchasing Office.

Before procurement, the following points warrant special emphasis:

1. Plan your needs well in advance!
   Initiate requisitions well in advance of the date required.
    
2. Unauthorized Purchases
   No individual has the authority to enter into purchase contracts, or in any way obligate EICCD for procurement indebtedness unless specifically authorized to do so by the Chancellor, Board of Directors, or the District Purchasing Office. Any such negotiations are considered as unauthorized purchases and the individual may encounter a personal obligation to the vendor.
3. Emergency Purchases
   Emergency purchases are allowed by District Purchasing Office when conditions warrant immediate action that would lead to disruption of College business. When an emergency purchase is required, contact the Business Office for approval.
    
4. Conflict of Interest in Procurement
   The college will not enter into contracts for the purchase of property, supplies, or equipment from persons presently employed by the Eastern Iowa Community College District, unless such material or services are sent for competitive bidding and that person  or persons presently employed by the District is determined lowest bid by the Purchasing Department.
    
5. W-9 & 1099’s
   W-9s are required from all vendors. W-9’s ensure EICCD is doing business with a legal vendor. The Federal ID number provided on the W-9 will be used on the year-end 1099 tax form. Accounts payable will send 1099’s for both goods and services received by any 1099 designated vendor that is paid over $600 in a single year.
    
6. Recurring Purchase Orders/Vouchers
   Recurring PO Vouchers enable you to encumber an entire contract on one PO. The PO is set up to pay the same amount monthly/bi-weekly/etc. Recurring vouchers are used for car leases, rent payments and other regularly scheduled payments. The requisition should be created on a manual Recurring PO Form (found on eicconnect) and signed by the originator, division head/director, president, and purchasing agent. For leases that run 3-5 years, the total lease amount should be typed on one requisition. A new recurring voucher number will then be assigned each year to that one requisition.
    
7. Internal College Charges/Invoices
   Invoices for EICC services are paid by a journal entry/internal charge. The expense requires the same approvals as an expense put on a regular requisition. Please have all approvers sign JE/invoice and send signed/dated receiving slip, invoice, & JE to purchasing office.
    
8. Blanket Purchase Order
   Blanket PO’s are used for goods & services that involves variable dollar amounts that occur over a period of time. Blanket purchase orders are used for purchasing office & school supplies, HVAC/repair services, contract services, ect. The amount entered on a blanket purchase order cannot be increased unless approved the Purchasing Office or CFO. A blanket purchase order can cover one month, six months, up to one fiscal year. A blanket purchase order can be closed at any time. An invoice can be split between two blanket purchase orders if one of the blanket purchase orders does not have enough money to cover the expense. Once a payment is made against a blanket purchase order, that amount cannot be added back.
    
9. Regular Purchase Order
   Regular requisitions require a price quote or estimate of item. Estimate should be high to cover any price increase. If requisition estimate does not cover the actual cost then another requisition is done. On this requisition type in the description area that this covers the price increase and refer to the old purchase order number. Mark it as a “Confirmation” so we know the vendor is aware of the change. Send both receiving slips so accounts payable can set them up for payment when the invoice arrives. *Note that we can add shipping and handling to any purchase order, not blanket purchase orders.
    
10. Over encumbered Budgeted Accounts
    All requisitions are checked against the working budget to see if there are sufficient dollars to cover the requested expenditure. If there are sufficient dollars, the requisition will be processed. If there are non-sufficient funds to cover the requested expenditure, the requisitions will be returned to the originator. In order to avoid a delay in purchasing, all individuals should check their budgets to see if sufficient funds are present. If they are not, a Budget Change Order should accompany the requisition.
     
11. Monthly Budget Reviews
    Each month a review of all cost center budgets will be done by Purchasing. The cost center budget that shows the over encumbered accounts will be sent to the college presidents and/or individual who is responsible for cost center budget. They will be asked to make the necessary budget changes to bring the over encumbered accounts back to a positive status. If within thirty (30) days, each over encumbered account, is not brought back to positive status, a freeze will be placed on that particular object code for the cost center involved. If within sixty (60) days, the account has not been brought back to positive status, a freeze will be placed on the entire cost center, including salaries. This freeze will be removed once the account is brought back to positive status.

REQUISITION FLOW

Anyone may request a requisition through his or her division/department. Only approved individuals in each division/department are set up to enter requisitions.

1. Requisition is created in Ellucian. (see steps on following pages on how to enter a requisition)
2. Copy of the requisition with all of the back-up is scanned & emailed to all approvers.
3. Budget codes are checked for available funds before final approval from Purchasing & Director of Business Services. If insufficient funds the requisition will be returned to the Division Director with a request for a Budget Change Order (BCO).
4. The Purchasing Office has the option to bid the item(s) or change the vendor. In any case the originator is notified of any changes. Changes to a requisition may require all approvers to re-approve. Purchasing office will send an email if this is the case.
5. After requisition is approved by all, the Purchasing Office will assign a Purchase Order number.
6. Copy of Purchase is forwarded to Accounts Payable & emailed to Vendor (please be sure to include vendor email in comments section of requisition).

EMERGENCY REQUISITIONS

Emergency requisitions are to be used for emergencies only, such as plumbing repairs, electrical repairs, repairs that will immediately effect the normal order of business operation.

The proper procedure is as follows:

1. Initiate a requisition with estimated amount as soon as possible and send email for electronic approvals.
2. Call the Purchasing Office to let them know an emergency PO # is requested and email a copy of the requisition to the district office with all necessary backup.
3. After proper approvals from the district office, a PO # can be assigned.
4. The Purchasing Office will call or e-mail the originator with the PO #.

C.O.D.s

C.O.D.’s will not be accepted without prior approval of the Purchasing Office.

ENERGY STAR EQUIPMENT

EICCD is to purchase Energy Star equipment for both single and mass purchasing actions whenever financially possible.

CANCELLATION OR MODIFICATION OF ORDER

The Purchasing Office only has the authority to cancel or modify a purchase order.

If it is necessary to take such action, a written request via email from the originator should be forwarded to the Purchasing Office including the vendor, purchase order number, and item(s) to be cancelled or modified.

DISTRIBUTION OF PURCHASE ORDERS

Once the completed requisition has been received by the Purchasing Office and approved, a purchase order number is assigned. Copies of the Purchase Order are distributed as follows:

• PURCHASE ORDER COPY: To Accounts Payable - File alphabetically and they will wait for signed receiving slip from initiator showing merchandise/services have been received/completed. Once received payment will be made to vendor.
   
• VENDOR COPY: To Vendor - Emailed or faxed to the vendor.

PROCEDURE FOR PREPARING A REQUISITION

1. Use Ellucian Colleague R18-Live, CF, to initiate a requisition. (See below steps on how to enter a requisition). Must be set up in system to be able to enter a requisition.
    
2. Before completing Requisition note:
   1. All requisitions totaling $5,000 or more must have three bids, unless a Letter of Justification has been approved by the Purchasing Office.  Be sure to attach all bids, registration forms, quotes, Letters of Justification, etc. when submitting a requisition.
   2. A single requisition should not include items that are purchased from a variety of vendors, nor can it include a general fund and plant fund account together. General fund and plant fund accounts must be on separate requisitions.
   3. Item/Service should not be ordered/started until requisition is approved and PO issued. If emergency order please see Emergency Requisitions.
3. How to enter a Requisition in Ellucian :
   1. Go to REQM
       
   2. REQ LOOKUP OR ADD -Type “A” for add.
       
   3. DATE - The current date will automatically fill in. Hit enter.
       
   4. INITIATOR - If you know your employee ID #, enter it here. If not, enter your last name, comma, space, and first initial. Enter. A new screen with your employee ID # will appear. Check the box by your name, save, and your name will appear in the Initiator box.
       
   5. VENDOR ID - If you know the vendor’s ID #, enter it here (less the zeros before the first number). If not, enter the vendor’s name. A new screen will appear with their ID #. If the address is not correct, still select the vendor number, save, and the address will automatically fill in on the first screen. Click the icon (looks like paper) next to the address and all addresses for that vendor should show up. Click the box in front of the correct address, save, and the correct address will appear. If none of the selections have the correct address, contact the Purchasing Office by e-mail and they will add the new address or new vendor and respond by e-mail. A new w9 may be required to change or verify address.
      
      If you need to make a field delete in a table, like changing the vendor, hit: Ctrl+Alt+D.
      
      It will say “Warning: All items and GL entries will be recalculated.” Hit OK. Then change the vendor #. The “Warning…”message will appear. Hit Ok. Then save and update.
       
   6. SHIP TO-Type the two digit letter and/or number that represents your location and/or department. Example: District Office = D1, SCC = S1, CCC=C1, MCC=M1, etc. If you don’t know your number, type “…” and a listing of ship to codes will appear. Click the box in front of the correct address, save, and the correct address will appear.
       
   7. APPROVALS - Click on the icon (looks like paper) to add approvers (first initial and last name) to the right side under “Next Approvals.” See below for required approvers.
      1. If over $5,000 need 5 Approvers. ( Cabinet, Division Director, Purchasing , Director of Business Services, CFO)
      2. If under $5,000 need 4 Approvers. ( Cabinet, Division Director, Purchasing , Director of Business Services)
      3. Any purchase of computer equipment must have Director of IT approval attached. (This should be a hand written or email approval)
   8. AP TYPE - AP for all funds except plant fund. PF for plant fund. Be sure account number matches the fund type indicated.
       
   9. LINE ITEM - Click on the magnifying glass (Advance Search). It will take you to the next tab (RQIL). Detail into the magnifying glass (Advance Search) by item 1.
       
   10. DESCRIPTION - Click on the magnifying glass (Advance Search) to add a detailed description of the item. For ordinary purchase items, briefly describe the item. Either add the catalog number here or go to Vendor Part # and add the number in that space. Any notes, comments or explanations that are necessary are written or typed on the first screen under “Comments” or “Printed Comments.” Add the date of the event for workshops, hotel stays and travel. If staying at a hotel, indicate details, including the event name, who will be attending and dates. Computer orders need a line item for each line listed on their quote. For Blanket POs, type “Blanket PO for (services, supplies, etc.) to cover the period (time span).”
        
   11. EST PRICE - Indicate the price per item or if covering an entire invoice amount, type that total figure. If the cost per item is not known, estimate high. If the item is more than the amount listed, a second requisition is necessary for the balance of the amount.
        
   12. QUANTITY - Indicate quantity desired.
        
   13. UNIT OF ISSUE -This is not a required field, it can be left blank. Type “…” to get a listing of appropriate units of measure, such as each, dozen, package, case, etc. If ordering pens, pencils, etc., be sure to indicate if the price is per item, per dozen, etc.
        
   14. GL ACCT # - Type the account number (16 characters) without dashes, enter. A box with the GL Funds Availability will pop up showing available funds. On all general fund accounts, if the figure on the requisition is greater than the balance in the account, attach a BCO to the requisition and make a note on the first tab under “Comments.” If the item is being split between several account numbers, type the first account number and the amount for that number. (Look to see if there are sufficient funds.) Hit enter and it will show account line two (2). Repeat step above until 100% of the total is covered. *Be sure account numbers match the AP Type. Any account that starts with 07 is plant fund (PF). The rest are general fund (AP).
       
       Save (F9) and update. If there is a second line item, repeat steps above. When complete, (F8 or hit cancel at the top of the page) and update.
       
       This will take you to the second tab RQIL. If all the information looks okay, including totals, save (F9) and update.
       
       You should be on the first tab (REQM).
        
   15. PRINTED COMMENTS (VENDOR) - Not a required field, it can be left blank. To add a comment to the vendor, detail into the magnifying glass (Advance Search). Type comments, such as Prices Quoted, Confirmation, directions about delivery, etc.
        
   16. COMMENTS (DISTRICT OFFICE) - Not a required field, it can be left blank. To add a comment to the Purchasing Office, detail into magnifying glass (Advance Search). Type comments, such as Fax PO to (fax number), Mail check to (department or person) by (date), etc. *All Plant Fund Accounts should include a note as to what program the money is taken from, such as SCC Plant Fund, bond referendum, a specific grant, etc.
        
   17. REQUISITION DONE - Change from “No” to “Yes” unless the requisition has not been completed. Then keep it as “No” until all the information has been filled out. A requisition number will be assigned either way. If this is not changed to “Y” then the approvers may not be able to see the requisition in their que to approve.
       • A note will appear that all approvals must be entered before the document will be flagged as approved. Click OK or enter.
       • Another note will pop up indicating “Update record, cancel or return.” Click Update or enter.
       • The requisition number will appear. Make a note of this number, including the zeros before hitting enter again. Number should be seven digits.
       • “Req Lookup or Add” will appear. If you have a second requisition to add, type “A” for add and repeat steps above, or click finish (or enter).
4. Email requisition and back-up to all approvers. Keep a copy of the requisition and all attachments. When the order has been received print a copy of the requisition in Web Reporter. The PO number will appear in the right hand corner of the requisition. Sign & date the requisition at the bottom and forward with any packaging slips or invoices to accounts payable. For service contracts, please email signed invoice together with signed receiving slip to A/P. All invoices for service contracts (object code: 60100, 60300, 60600, 60900, 61000, 62600) must be signed by the division head/director.

PERTINENT INFORMATION REGARDING ORDERS, SHIPMENT AND RECEIVING

BIDDING PROCEDURES

1. It is the policy of Eastern Iowa Community College District to purchase products And services from within the area community provided that such products and Services shall be available and competitive.
    
2. No official may enter into a purchase or service contract in the name of the District Exceeding $5,000 (five thousand dollars) for any single item or single group of items without three (3) competitive quotations. 

   Any purchase made under this threshold should be competitively bid if it is deemed that this action will result in savings to the college. Segmenting a purchase to circumvent the competitive bidding process is not allowable.

3. If it can be demonstrated that fewer than three vendors are able to provide the specified goods or services, a letter of justification can be submitted to the Purchasing Office in lieu of three competitive quotes.

4. Bids must be attached to the requisitions.

5. Only the Purchasing Office has the authority to cancel/modify a purchase order.

ADVERTISEMENT/BIDS/DEPOSIT

1. When the estimated total cost of construction, erection, demolition, alteration or repair of any improvement exceeds $25,000 (twenty five thousand dollars), the District shall advertise for bids on the proposed improvement by two publications in a newspaper published in the county in which the work is to be done and on the college’s website. The first advertisement for bids shall be not less than 15 (fifteen) days prior to the date for receiving bids.
    
2. Complete specifications/detailed plans should be made available to all the bidders and must be referred to in the bids submitted.
    
3. All bids must be opened in the presence of both of the following officials:
   1. Responsible department head/its representative
   2. Purchasing Agent/its representative
4. The District shall award the work to the lowest bidder submitting a sealed proposal. However, if in the judgment of the District, bids received are not acceptable, all bids may be rejected and new bids requested. The bids must be listed and such list shall be signed by the bid opening officials and college president and sent to the Purchasing Department along with the requisition.
    
5. A bid shall be accompanied, in a separate envelope, by a deposit of a certified check or credit union certified share draft. It should be in an amount named in the advertisement for bids as security that the bidder will enter into a contract for doing the work. The checks/share drafts of the unsuccessful bidders shall be returned as soon as the successful bidder is determined and the check/share draft of the successful bidder shall be returned upon execution of the contract documents.
    
6. When emergency repairs costing more than $25,000 (twenty five thousand dollars) are necessary in order to prevent the closing of any campus, the provisions of the law with reference to advertising for bids shall not apply, and in that event the Board of Trustees may contract for such emergency repairs without advertising for bids. However, before such emergency repairs can be made, it shall be necessary to procure a certificate from the Area Education Agency administrator that such repairs are necessary to prevent the closing of the school.

NOTE: If a division/department wishes to accept a bid other than the low bid or wishes to select a “brand” name, a letter of justification must be forwarded to the Purchasing Office. This letter must give in detail the advantages of the preferred item over that of the low bid and must be signed by the division/department head and college president.

INSPECTION, CHECKING AND RECEIVING OF GOODS

The division/department receiving the merchandise is responsible for promptly unpacking and carefully inspecting shipments.

PARTIAL SHIPMENT

If a partial shipment is received, the originating division/department should sign and date the requisition copy, noting the PO # and highlighting only the items received. If most items are received, they can make a note “All items received except …” When the final item and/or items are received, highlight them on the requisition copy or write in the last item(s) received. Sign and date the requisition copy, noting the PO # and submit to the Accounts Payable Office with a note “PO Complete.”

COMPLETE SHIPMENT

Upon receipt of materials, supplies or services, the originating division/department signs and dates the requisition copy, noting the PO # in the upper right hand corner. This signed copy is returned to the Accounts Payable Office for processing and eventual payment. Accounts Payable cannot pay for an order without an invoice and signed receiving slip.

Computers and multi-media equipment: Add “Received and installed” above your signature. This ensures that all items have been received and are working. For bulk purchase of computers, where we are holding off on installation, the IT department head must verify in writing that all items have been received and request payment without installation. Then we can pay without installation.

Service Contracts: All invoices for service contracts must be either signed by the provider, or if sent electronically, electronically approved by the provider and the e-mail page attached to the invoice. All invoices for service contracts (object codes: 60100, 60300, 60600, 60900, 61000, 62600) must be signed by the division head/director. Please email signed invoice together with signed receiving slip to A/P.

CLAIM PROBLEMS INVOLVING DAMAGES OR SHORTAGES

In the case of damage or shortage to a shipment, a written report should be made immediately to the Purchasing Office giving the following information:

1. Order number and date.
2. Vendor to whom the order was issued.
3. Invoice number and date (if available)
4. Extent of damage and shortage (be specific)

In the case of lost shipments or if a part of a shipment is astray, the report should give items (a) through (d) above and list the number of items in the shipment which are lost or astray. It is important to note that the driver who makes the delivery must indicate on the freight ticket the shortage or damage which has occurred. He/she is also required to sign his/her name and the date of delivery.

If the damage or shortage is not evident at the time of delivery, we must in all cases notify the carrier within fourteen (14) days of a shortage or damaged shipment so that he/she will arrange for an inspection report. It is often advisable to notify the carrier verbally and confirm that notification in writing. It then becomes extremely important that all containers, packaging material, wrappers, etc. be retained for the carrier’s inspection. Failure to keep this material will, undoubtedly, void any chance of obtaining a claim.

RETURN OF SUPPLIES OR EQUIPMENT

Supplies or equipment returned to suppliers or manufacturers for adjustment or credit must be cleared through the Purchasing Office. Most companies must be notified for a return authorization. Credit memos received that cannot be identified with returns will receive disposition at the discretion of the accounting office. Departments are urged to keep all such requests to the absolute minimum.

REVISED 7/88, 7/07, 11/10, 11/12, 02/22, 4/24, 8/24, 9/24