301.01: Financial Management

Enterprise State Community College shall operate within available resources and shall maintain adequate operational balances as defined by the Chancellor and reported to the Board of Trustees to ensure the financial stability of the institution.

College Expenditure Policy

Enterprise State Community College is committed to fiscal responsibility and shall, at all times, conduct business with a focus on value and solvency. The College expects that all faculty and staff will endeavor to support these financial imperatives, in order that this institution shall remain a source of great educational opportunity. Enterprise State Community College recognizes the need for good stewardship of its resources and will continue to work toward optimum efficiency of expenditures.

The College has adopted a purchasing procedure intended to aid the institution in identifying, selecting, and acquiring needed materials and services in a cost-effective way, while ensuring that standards of quality and efficiency are maintained. Enterprise State Community College’s purchasing procedures are crafted to ensure adherence to all applicable state and federal laws and policies concerning purchasing by member institutions of the Alabama Community College System.

Purchasing

Enterprise State Community College utilizes a central purchasing system. Accordingly, no individual member of the staff, faculty or student body may place an order (written or verbal) to any supplier for the purchase of any goods or services to be paid for by the College. This procedural requirement shall not preclude individual discussions with potential vendors as to aspects of a potential purchase, but such discussions should include notice to the potential vendor that no contract shall be inferred from the discussion, as no contracts for purchases can be made by individuals without approval from the College’s Business Office.

All actions which encumber or commit College funds for any purchase require an approved purchase order from the Business Office.

The Business Office will periodically review and revise purchasing procedures. All revisions will be distributed to all manual holders in order that existing copies be updated. Any comments, questions, or concerns should be addressed to the Director of Financial Services.

The College exercises control on all externally funded or sponsored research programs.

The purchasing process is as follows:

The requisition is initiated by completion of a electronic requisition form and then forwarded to the following persons for approval:

Division Chairperson/Director
Appropriate Dean
Director of Financial Services
President of the College

The purchase order is prepared.
The purchase order is issued and funds are encumbered.
The purchase order (gold copy) is signed by the Purchasing Agent.
The purchase order (gold copy) is returned to the requesting department and serves as notification that the proposed order is ready to be placed with the vendor.
Goods or services are delivered.
The requesting department verifies the order for completeness and accuracy, signs the original (gold copy) purchase order and forwards to the Business Office.
After receiving the necessary documentation (see “H”), the Business Office pays the vendor.

Requisition Form Instructions for Processing

In order to obtain a properly processed gold copy purchase order from the Business Office, all personnel must first complete an electronic requisition form.

A requisition form should be submitted at least two (2) weeks before the item(s) are needed to allow full approval and processing of the purchase order and shipping of items to the College.

The following instructions apply to all requisition forms:

Prepare the requisition using the electronic requisition process

Enter a source of supply (a vendor).

[Note: A price quote that contains the name of the vendor along with items, quantity, and price will be required to attach for documentation. Items costing more than $1,000.00 require three price quotes with vendor names to keep on hand.]

Provide a specific date at least 2 weeks from the date of submitting the purchase requisition as the “Delivery Date.”
Provide an adequate description of the goods or services for ordering, indicating specifications such as quantity, item number and any other pertinent data needed to properly identify the item to be purchased.

All specifications must be clearly stated and must describe precisely the required identity of the items to be supplied by the vendor.
All specifications should, at a minimum, contain the following:

–- Physical, chemical, or electrical composition, or other characteristics that will correctly identify the item

– Quantity needed

– Any applicable shipping instructions or shipping pricing

In order for the Business Office to process a purchase order, a requisition form must go through the following signatures of approval:

Division Chairperson/Director
Appropriate Dean
Director of Financial Services
President of the College

After verifying the availability of funds in a department’s budget to cover the proposed expenditure and obtaining the President’s approval, the Business Office will issue an official College (gold copy) purchase order.

All items costing more than $7,500.00 must be purchased using a bid process. All bids are processed through the Business Office. Bid procedures may be used to obtain the best price even when the desired good or service costs less than $7,500.00. The Business Office will require at least fourteen (14) days to process most bids.

Purchase Orders

A properly executed purchase order, once approved, constitutes a binding contract on the part of both the College and the vendor. A gold copy of the purchase order is forwarded to the requesting department to inform the requester that the order is ready to be placed with the vendor.

The requisitioner should keep the approved gold copy purchase order until all items have been received. Once all items have been received, the requisitioner should sign the original gold copy purchase order and return it to the Business Office along with any packing lists or other pertinent shipping information. If the requester receives the invoice it should also be turned into the Business Office along with the gold copy purchase order for prompt payment.

Emergency Purchases and Confirmation of Orders

In emergency situations, individuals may find it necessary to place an order with a supplier in order to ensure immediate delivery of needed goods or services. Under appropriate circumstances, such a contract is allowable, provided that the individual requests and receives permission from the Business Office prior to purchase and then completes the necessary steps to complete a requisition to get expedited approval.

Bookstore Purchases

In order to purchase supplies from the Bookstore, the following procedure should be followed:

Requesters should submit a purchase requisition payable to the bookstore using the electronic requisition process for approval.
Once the purchase requisition is approved as a purchase order, the requester should take the approved gold copy purchase order to the bookstore to make their purchase as a departmental charge.
Bookstore processes the receipt on the computer/register and the requisitioner must sign the receipt.
The signed gold copy purchase order and receipt from the bookstore should be turned into the Business Office for payment and the department account will be debited.

State Contract Purchases

State laws make it possible for the College to procure materials, supplies, or equipment through State Purchasing. When state contracts are used, it is not necessary for the Business Office to obtain sealed bids.

Requisitions should contain the state contract number, the name of the vendor who holds the contract, and other pertinent data. By this method, the College can purchase items at the same prices and terms available to State departments.

To determine if a particular item can be purchased under state contract, a department should:

Access the Internet at web site: www.purchasing.state.al.us to determine if the item(s) desired for ordering are available on the AL State Contract.
To purchase the item, the electronic requisition form process should be completed by the department and submitted for proper approval. The state contract number is to be clearly indicated on the requisition. A College purchase order will then be issued and returned to the requisitioner for purchasing.

Receipt of Order

Shipments will be received by IT (in the back of the Student Center) and the requisitioner will be notified of delivery. Exceptions to this requirement are such items as deliveries of food, sand, building supplies, and some housekeeping and custodial supplies.

The requisitioner is to inspect the shipment to verify that it is complete, and no damage or errors exist.
Invoices for items are retained for payment in the Business Office. Any invoices that go directly to a division/department should be sent promptly to the Business Office.

Vendor Requests for Bid Results

Requests by vendors for copies of bid results awarded at least three months prior may be obtained from the Business Office in paper form at a cost of $10.00 each.

Requests for Checks

All requests for checks for any and all purposes must be submitted to the Business Office no later than two (2) weeks prior to the disbursement date.