THE PURCHASING PROCESSPresented by Crystal Korpan, Manager of Purchasing

Summary of Purchasing Process

Requisition Purchase Order Input Purchase Order Review/Approval Purchase Order Processing Ordering and Receipt of

Goods/Services Vendor Payment

Purchase Requisition

Finance

AdminBudget

Procurement

Requisition Each site/department has a set of

discretional budgets and funds from which to use (Maintenance and Operations Fund, Capital Funds, Student Club and Auxiliary Funds, Extracurricular Activities Tax Credit Funds, Civic Center Funds, Gifts and Donations Funds, etc.)

Requisition

Purchase requisitions are created to document and track the request and authorization to purchase goods/services

Requisition

Each site/department administrator is responsible for reviewing and approving purchase requisitions and the funding used to pay for them

Purchase Order Input

Upon approval by authorized site or department administrator, purchase requisition can be input into District purchasing system (AS400). Exceptions – Funds that require

additional review or authorization before inputting such as Capital, Student or Auxiliary Funds

Purchase Order Review/Approval At the end of each work day, the Purchasing

Department prints off reports containing every PO that was input into the AS400 that day. (Green Bar) These include: General Purchase Orders (M&O, Tax Credit, Gifts and

Donations Funds) Grant Purchase Orders (Any Grant Funds) Capital Purchase Orders (Any Capital Funds) Student Account Purchase Orders (Student Club Funds)

Purchase Order Review/Approval All Green Bar reports are distributed the next morning

in the Finance Department to their respective fund group manager. Fund managers review each PO for: Fund Compliance Budget Compliance Account Code Compliance(Anything needing to be changed is either modified or held

until compliance is in check.)

Purchase Order Review/Approval Finance Department delivers Green Bar reports to

Purchasing Department for final review (same day). Review is for: Procurement Code Compliance Proper Authorization (e.g., Technology Services authorization on

technology, Governing Board approval on out of state/overnight student trips)

Purchasing Efficiency (e.g., We may be aware of more cost efficient solutions in some cases.)

Accounting of every PO number for the day has been reviewed (Typically 50 – 100 PO’s daily)

Authorization Threshold 50K Governing board has authority to approve or

delegate authority for bids at other levels (Procurement Code)

Bids at threshold (50k) are brought before the board (Policy DJA)

State Contracts (incl. ADE approved SPED) are excluded from this process

Number of vendors over 50k (all 116 are already on contract)

Currently number of vendors 35k – 50k (of 43 only 3 are not already on contract)

Purchase Order Processing

The Purchasing Department prints all approved PO’s from the daily Green Bar reports (same day).

The Purchasing Department separates and distributes all PO’s to their respective campus or department for inter-office mail delivery.

Ordering and Receipt of Goods/Services Campuses/Departments requesting

the purchase receive an authorized PO and may place the order with the vendor at this time.

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Ordering and Receipt of Goods/Services Orders for goods are received at the

District warehouse and delivered by the warehouse to the originating site.

Vendor Payment Accounts Payable Department receives

invoices and compares to receiving report (prepared by either warehouse or site).

Payments to vendors made weekly. Each group of checks produces a voucher.

Voucher report is printed for final review by the Governing Board Clerk.

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