Purchasing

Purchase Processing Procedures

1. General Requirements
   1. All merchandise or services being purchased or reviewed for purchase from outside of the institution must be processed and ordered by the Purchasing Department. The President, Vice President of Business and Finance, and the Director of Purchasing are the only personnel that are authorized to commit college funds for purchase.
   2. The only exceptions to the above requirement are the following:
      1. Library subscriptions, interlibrary loan charges, on-line data base charges
      2. Payments to students (i.e. refunds and Foundation support)
      3. Fees for official/government inspections, such as of elevators
      4. Postage, freight and shipping charges
      5. Student club expenditures (i.e., agency accounts)
      6. Classified advertisements
      7. Awards, grants, and professional development funding provided by Pellissippi State Foundation
      8. Facility fees for special courses (bowling, swimming, golf, etc.)
      9. Payments to TBR, campus food services, and the campus bookstore
      10. Payroll (insurance, taxes, direct deposit, etc.)
      11. Petty cash reimbursement to the custodian of the petty cash fund
      12. Fee waiver payments to UT and TBR schools
      13. Airfare for travel on college business
      14. Refund to student loan lenders
      15. Other exceptions as approved by the Vice President of Business and Finance


2. Purchase Requisitions

   A requisition form will be completed by the staff member requesting the purchase and forwarded through his/her financial manager and his/her supervisor(s) to obtain approval.

   1. Requisition forms are available on-line at www.pstcc.edu/finance/purchasing.
   2. Requisition forms are to include the following:
      1. Vendor name and address
      2. Description of merchandise or service(s) to be ordered
      3. Quantity of each item
      4. Cost of each item
      5. Total cost of items [#3 x #4]
      6. Grand total of order
      7. Index number to which the purchase will be charged
      8. Authorizing signatures (financial manager and/or supervisor)
      9. If the purchase request includes computer hardware or software, a Request for Computer Hardware or Software form must be completed and attached to the requisition. This form is available electronically at www.pstcc.edu/finance/purchasing.
         Additional comments or information should be typed in the lower portion of the requisition form and enclosed in parentheses. These comments will not be entered on the purchase order.
   3. The requisition form is forwarded to the Purchasing Office where a purchase order will be issued to the vendor. The gold copy of the purchase order will be returned to the financial manager for his/her files.
   4. Pellissippi State is not responsible for payment for any merchandise or service ordered without submission and processing of a requisition prior to placing of an order, except in the case of a petty cash purchase.
      Petty cash purchases must comply with the following guidelines before the employee will be reimbursed:
      1. Petty cash may be used for required purchases not to exceed $250 per day per Index number.
      2. The original receipt must be submitted with the completed petty cash reimbursement form and must clearly identify the item(s) purchased.
      3. Services CAN NOT be purchased using the petty cash process.
      4. Sales tax is only reimbursed with agency account purchases (i.e., student clubs, foundation).
      5. The petty cash form must be completed in ink or typed, signed by the account financial manager and his/her supervisor, and include the employee's college e-mail address. The petty cash form is available electronically at www.pstcc.edu/finance/purchasing.
      6. Reimbursement to the employee may be by check or cash depending on the amount of the purchase.
   5. Requisitions that total less than $5,000 (with shipping) will be processed within five (5) days of receipt by the Purchasing Office. If the items ordered have not been received within 60 days of the date on the purchase order, the purchaser should call the Purchasing Office.
   6. Requisitions that total $5,000 or more must be processed by bid. A bid request is submitted to at least three vendors, or to the number on the bid list. Requisitions that total $25,000 or more must be processed by written bid. If possible, fifteen vendors will be sent bids. Bidders will have 14 working days to respond. After 14 working days, all bids that have been received will be opened, logged, and returned to the requesting staff for review. When the bid package is returned to Purchasing with a recommendation, the bid will be reviewed by the Vice President of Business and Finance and, if appropriate, a purchase order will be issued.
   7. Requisitions for computer hardware and/or software require additional review by Information Services; therefore, additional time should be allowed for processing. The request for computer hardware or software form is required before review will occur.


3. Receipt of and Payment for Merchandise
   1. All merchandise ordered must be received by the Shipping/Receiving Department located in the Physical Plant Building. Exceptions are the following:
      1. Requisition indicating "Hand carry" - The original and the receiving (pink) copies of the Purchase Order will be sent to the requestor.
         1. The original Purchase Order is presented to the vendor as the staff member receives the merchandise ordered.
         2. Once the staff member is certain that the merchandise is correct and working, the staff member must sign the receiving copy (pink) of the Purchase Order and forward it to the Accounts Payable Office. The receiving copy should be in the Accounts Payable Office within 10 days after receipt of the order to expedite prompt payment.
      2. Requisition for Services - The receiving copy (pink) of the Purchase Order will be sent directly to the financial manager responsible for the order. When all services are completed in a satisfactory manner, the financial manager must sign the receiving copy (pink) and forward it to the Accounts Payable Office.
      3. Requisition for Subscriptions - The receiving copy (pink) is sent directly to the responsible financial manager. When it has been verified that the subscription has begun, the financial manager must sign the receiving copy (pink) and forward it to the Accounts Payable Office.
   2. After a delivery has been received at the Physical Plant Building, the Shipping and Receiving staff will record the order and prepare a key-rec form.
      1. The purchase order will be compared to the shipment to verify the completeness of the order.
      2. The key-rec form will be marked "shipment complete" or "partial shipment received." If the shipment is complete, the receiving copy (pink) of the purchase order as well as the key-rec form will be attached to the goods for delivery to the department.
   3. Shipments that have been received will be delivered to the department(s) within two (2) working days of receipt.
      1. The staff accepting the merchandise must sign the key-rec form. The yellow copy of the form will be given to the staff member for his/her files.
      2. After a review of the shipment determines that it is complete, the responsible financial manager must sign the receiving copy (pink) and forward it to the Accounts Payable Office.
   4. No invoice will be paid in full or in part until the Accounts Payable Office has the receiving copy (pink) or an email from the financial manager confirming receipt of goods.
      1. By signing the receiving copy (pink) or the partial of the purchase order, the financial manager indicates that the order has been received and is correct.
      2. The signed receiving copy (pink) or the partial must be received by the Accounts Payable Office within 10 days of delivery to avoid interest charges from the vendor.
      3. For partial deliveries, Accounts Payable will compare the invoice to the partial receiving report or key-rec form. If the invoice matches the order received, a partial payment will be processed.


4. Returned Merchandise
   1. If the merchandise that has been received is incorrect or not in proper working order, the merchandise must be returned to the vendor by the Shipping/Receiving Department. At no time should the merchandise be returned to a vendor without notifying the Purchasing Department.
      STEPS:
      1. Contact the Purchasing Department to obtain a Return Authorization form, or download it from the Web at www.pstcc.edu/finance/purchasing. Purchasing will contact the vendor and provide the following information to the employee:
         1. Pellissippi State's Returned Goods Authorization (RTG) number
         2. Vendor's Return Merchandise Authorization (RMA) number
      2. Complete a Return Authorization form listing all requested information. Retain a copy for department records.
      3. Package the merchandise for return to the vendor. Include in the package a copy of the Return Authorization form and a photocopy of the invoice, if available.
      4. Contact Shipping/Receiving to arrange for the merchandise to be returned. At the time of the return, the Return Authorization form will be signed and dated by the department employee who is returning the package as well as by the Shipping/Receiving employee who is receiving the package.
   2. The departmental account will be credited upon verification of the returned shipment.
      Note: If the purchasing procedures have not been followed (i.e., processing of requisition prior to purchase, etc.), the employee who ordered the merchandise or service is responsible for returning the merchandise and/or payment of the invoice.

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Approved: Executive Council, March 4, 1991
Editorial Changes, April 20, 1993
Reviewed/Recommended: President's Council, December 18, 1995
Approved: President Allen G. Edwards, December 18, 1995
Approved: President Allen G. Edwards, August 13, 1998
Approved: President Allen G. Edwards, March 8, 2000
Approved: President Allen G. Edwards, December 10, 2002
Removed from Policy Manual / Transferred to Purchasing Website, November 8, 2010