The URL can be used to link to this page

Browse Search

Home My WebLink About790961.tiff RESOLUTION RE: RESCINDING SECTION OF ADMINISTRATIVE CODE ENTITLED "PURCHASING POLICIES SECTION" AND ADOPTION OF PURCHASING POLICIES AND PROCEDURES. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, discussions have been held with department heads concerning purchasing policies and procedures for Weld County Government. A copy of said purchasing policies and procedures is attached hereto and incorporated herein by reference, and WHEREAS, the Weld County Finance Officer has recommended that said purchasing policies and procedures be adopted, and WHEREAS, the Board of County Commissioners deems it advis- able and in the best interests of Weld County to rescind the section of the Administrative Code entitled "Purchasing Policies Section" and to replace said section with the purchasing policies and procedures packet which is attached hereto. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado that the section of the Admin- istrative Code entitled "Purchasing Policies Section" is hereby rescinded and further that said section shall be replaced with the purchasing policies procedures packet which is attached hereto . The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 14th day of February, A.D. , 1979 . .,- , e> BOARD OF COUNTY COMMISSIONERS ATTEST: /I jL:tu'AJ LC._ L,:.„ ,.,14. &A.40.444.ar✓ D COUNTY, COLORADO �y Weld County Clerk and Recorder �i- C._ and Clerk to the Boyd BY ..,ieW Lc L eputy County erk 'i Wnit AP R ED AS TO FORM: �_ O County Attorney v DATE PRESENTED: FEBRUARY 21, 1979 790961 mEmORAnDUm °, To Board Members ` _ Da, January 30, 1979 COLORADO From Don Warden i Subject Purchasing_Policies and Procedures____ The attached policies and procedures , discussed with you at a January 8, 1979 work session, have been discussed with all departments and agencies in sessions held January 24 & 25, 1979. No major policy or procedure changes were made because of the discussions with all departments and agencies; however, some clarifications have been made in the policies and procedures and the topics have been placed in a more logical order. Specific changes made since the draft are: 1 . General information for requisitions: Under "Approved For Purchase Orders Over $1 ,000" the policies, as ammended, call for the asign- ment of a Commissioner Coordinator and pro tem to each elected office for approval of purchase orders only. 2. Notice of confirming orders : Communications and Civil Defense have been added to the activities that are authorized to make purchases outside regular business hours to avoid cessation of vital services . 3. Examples of forms have been added to the procedures for clarification. 4. An outline of the suggested filing of forms in the process at the departmental level has been provided. 5. A copy of the Purchasing Agents Code of Ethics has been included for information for all county employees . Hopefully, the guidelines will describe good business practices and ethical conduct in dealing with the business community. Based upon the purchasing policies and procedures as ammended, staff is confi- dent that they will improve the purchasing process in Weld County, provide better management control , assist department heads and elected officials in monitoring their budgets , and establish a relationship of mutual confidence and satisfaction between the county and vendors. From the meetings with the departments and agencies , we feel that all departments and agencies are in agreement with the policies and procedures and are receptive to the changes. Therefore, we would recommend your approval of the attached policies and pro- cedures for purchasing, and that you rescind the section in the Administrative Code entitled "Purchasing Policies Section" and replace it with the attached policies and procedures. INDEX STATEMENT OF POLICY RELATIONSHIP WITH VENDOR'S REPRESENTATIVES BIDS AND QUOTATIONS COOPERATIVE PURCHASING PAYMENTS TO VENDORS EXPENDITURES NOT REQUIRING REQUISITIONS LIMITED PURCHASE ORDERS REQUISITIONS BLANKET REQUISITIONS QUESTIONED PURCHASE REQUISITIONS GENERAL INFORMATION FOR REQUISITIONS HOW TO PREPARE A REQUISITION NOTICE OF CONFIRMING ORDER CANCELLATION OR CHANGE TO A REQUISITION REGULAR PURCHASE ORDERS AMENDED OR VOIDED PURCHASE ORDERS RECEIVING PROCEDURES INVOICE FROM VENDORS GENERAL INFORMATION DAMAGED MERCHANDISE PRODUCT STANDARDIZATION DISPOSAL OF SURPLUS PROPERTY REQUISITION/PURCHASE ORDER SUGGESTED FILING FOR DEPARTMENT STATEMENT OF POLICY The Local Government Budget Law of Colorado, CRS (1973) Section 22-1 -104, provides that each local government shall adopt an annual budget. Such budget shall present a complete financial plan for the ensuing fiscal year. It shall set forth all proposed expenditures for the administra- tion, operation, and maintenance of all offices , departments , boards , commissions , and institutions of such local government including publicly owned and operated utilities and enterprises. Section 29-1-111 and Section 14-2 of the Weld County Home Rule Charter provide that before the begin- ning of the fiscal year, the Board of County Commissioners shall enact an ordinance making appropriations for the ensuing fiscal year. The amounts appropriated for the offices , departments , boards , commissions , and other spending agencies shall not exceed the amount fixed therefore in the budget adopted by the governing body. Section 29-1-113 provides that during the fiscal year, no officer, depart- ment, board, commission, or other spending agency shall expend or contract to expend any money, or incur any liability, or enter into any contract which, by its terms , involves the expenditure of money for any of the pur- poses for which provision is made in the appropriation ordinance in excess of the amount appropriated in said ordinance for such officer, department, board, commission , other spending agency, or purpose, for such fiscal year. Any contract, verbal or written, made in violation of this section shall be void as to the local government, and no moneys belonging thereto shall be paid thereon. Section 29-1-118 provides that any member of the governing body of any county, or any member, officer, employee, or agent of any department, board, commission, or other spending agency who knowingly or willfully fails to perform any of the duties imposed upon him by the foregoing sec- tions of the Colorado Revised Statutes , or who knowingly and willfully violates any of its provisions is guilty of malfeasance in office, and, upon conviction thereof, the court shall enter judgement that such officer so convicted shall be removed from office. Accurate records of expenditures and encumbrances must be kept by the ' Finance Office so that department heads and elected officials can be in- formed on a timely basis of expenses and obligations in comparison to the adopted budget of Weld County. By utilizing a consistent policy of pur- chasing procedures , Weld County' s elected officials and department heads will find it easier to comply with the provisions of the Colorado State Statutes and Weld County Home Rule Charter. Statement of Polir^ Page 2 This manual will provide reference for questions that may arise, and will assist in prompt procurement consistent with economy. The Weld County Home Rule Charter provides that Central Purchasing shall : Establish, maintain , and operate the Central Purchasing Office for the county. Responsibilities of the Purchasing Office shall include the purchase, storage and distribution of supplies , materials , property, equipment and inventory pursuant to poli- cies and procedures established by the Board and in accordan:e with this Charter and the laws of the state. The policy of the Purchasing Department in the discharge of these duties will include, with the assistance of other departments and agencies , the establish- ment of reliable and reputable sources of supply, the fostering of competition , and good procurement practices consistent with timely accomplishment of its goals. All negotiations will be conducted on the highest level of business ethics. All contacts with existing or potential suppliers after submission of a Rurchase requisition are to he made by or with the knowledge and appro- val of purchasing. While establishing and maintaining satisfactory supplier relationships , the acceptance or solicitation of entertainment, loans , gifts or special considerations by any Weld County personnel will not be permitted. Compliance with the provisions of this manual is mandatory. Any provisions which adversely affect the performance of any department' s vital services shall be immediately called to the attention of the Finance Director. Should any portion of this manual be in conflict with the State Statutes , the provisions of the State Statutes shall apply. It shall be deemed a violation of this manual for any employee to : 1 . Seek or accept, or to offer to provide, directly from or to any indi- vidual , partnership, association , corporation, or other business entity or representative thereof, doing or seeking to do business with Weld County, loans (except with banks or other financial institutions) , services , payments , entertainment and travel , vacation or pleasure trips , or any gift or money in any amount. 2. Knowingly exaggerate requirements for the purpose of temporarily enjoying a better price. 3. Knowingly underestimate requirements or deny the existence of a re- quirement to avoid doing business with a particular supplier. Statement of lolly& { Page 3 4. Knowingly misrepresent competitor's prices , quality or services to obtain concessions. Any employee found in violation of the provisions of this section will be subject to disciplinary actions. RELATIONSHIP WITH VENDOR'S REPRESENTATIVES PURCHASING DEPARTMENT RELATIONSHIP The relationship between the purchaser and the seller is one of mutuality. No contract that proves unsatisfactory to the vendor can be regarded as totally satisfactory to the buyer. It is the responsibility of the Pur- chasing Department to establish a relationship of mutual confidence and satisfaction between the county and its suppliers. Those departments who do not wish to be burdened with visits from suppliers should observe the following procedures : 1 . All vendor's representatives will be received by the Purchasing Department; and when necessary for them to talk with department heads , the interview will be arranged by the Purchasing Depart- ment. If a vendor should contact the department direct, he shall be immediately referred to the Purchasing Department. 2. The Purchasing Department will inform or pass along to department heads , useful information received from interviews , catalogs , ad- vertising, etc. 3. All correspondence with suppliers shall originate in the Purchasing Department. When necessary for the departments to correspond with the vendors on some technical matter, copies of that correspondence will be sent to the Purchasing Department. 1 BIDS AND QUOTATIONS Section 14-9 of the Weld County Home Rule Charter specifies that: 1 . The Board of County Commissioners shall adopt bidding procedures for county purchases which shall assure open and competitive bid- ding on all county purchases , and the Central Purchasing Division shall follow the procedures adopted in all county purchases. 2. Bid specifications shall be prepared in such a manner as to invite and encourage bidding from all suppliers of the goods and equip- ment being purchased by the County. No specifications shall be submitted to bidders so restrictive in detail as to eliminate any line of competitive equipment. 3. The County Commissioners shall give preference to resident Weld County bidders in all cases where the bids are competitive in price and quality. 4. The County Commissioners shall enter in the minutes of the meeting at which a purchase is made for other than a low bid, the reason for not accepting the low bid. 5. All purchases of $2,000.00 or more shall be by written , sealed bid, and bids over $2,000.00 shall be followed by a ten day period for consideration and investigation of the bids submitted to determine comparisons of quality and price. The Commissioners shall accept the bid they find to be most beneficial to the County. POLICY Purchasing shall continually strive to increase competition and obtain new sources of supply. Bidding shall be open and unrestricted; however, the County shall not be obligated to solicit bids from every supplier for every requirement. Quotations and bids shall be based on established standards and specifica- tions whenever possible. Formal Bids (over $2,000.00) All bidding shall be in accordance with and pursuant to Section 14-9 (1 -5) of the Weld County Home Rule Charter, and all purchases of Two Thousand Dollars ($2,000.00) or more shall be followed by a period for consideration Bids dnd Quotation,,;,, Page 2 ,. k and investigation of the bids submitted to determine comparisons of quality and price. PRIOR to advertising for such bids , the purchasing agent shall verify that the purchase is authorized in the current budget. Formal bids may be advertised in the official newspaper, except as statu- torily required, and may be advertised in other publications. Such adver- tisement shall include, but not be limited to the following : 1 . General description of required commodity or service. 2. Location to obtain required bid documents. 3. Cost of bid documents (if applicable) . 4. Amount of bid bond (when applicable) . 5. Time and place of bid opening. 6. Reserve the right to: a. Waive informalities. b. Reject all bids. c. Accept proposal deemed most advantageous to the best interest of the County. The Purchasing Department shall maintain a vendor's bid list. Invitations to bid shall be mailed to all appropriate vendors on the bid list. The Purchasing Department shall advertise quarterly in all Weld County papers of general circulation soliciting the names of vendors who wish to be placed on a vendor's bid list. When bids are received, they shall be stamped with the date and time re- ceived, initialed by the person receiving them, and filed until opened. After the bids are opened, the proposals shall be reviewed by the purchasing agent and the department head who initiated the requisition. The department head and the purchasing agent will make a recommendation to the Board of Commissioners. The final award of the bid will be approved by the Board of County Commissioners. All formal bids shall be submitted sealed and shall be publicly opened at the time and place indicated in the advertisement. Bidders are invited , but are not required to attend the bid opening. Bids ° Quotations Page 3 6 Quotations/Informal Bids (under $2 ,000.00) On purchases of goods or equipment other than those supplies purchased pursuant to Title 30, Article II , Section 109 through 112, CRS 1973, over fifty dollars ($50.00) but less than two thousand dollars ($2 ,000.00) , the purchasing agent shall request quotations from three or more suppliers , if possible, and shall purchase at the lowest and best quotation. The County shall reserve the right to reject any and all bids. The formal bid procedures may be used for purchases under $2,000. 10 when the best interest of the county so dictates. Normally the informal bid procedure is used for small dollar value items or to speed delivery and reduce administrative cost. Informal purchases may include any of the following: 1 . Secure quotations on standard quotation forms. 2. Obtain telephone quotations. 3. Purchase on the basis of parts history cards. 4. Recent competitive bid prices may be used to avoid duplication of effort. 5. Sole source items if emergency conditions exist or if such re- quirement is obtainable, for practical purposes , from only one source. 6. Double source items , when required, to provide operating depart- ments with sufficient requirements. In all cases , the procedure used to obtain prices shall be calculated to achieve maximum economy for the county. All informal bid prices received shall remain confidential until the award is made. After the award is made, all information regarding the bid shall be open for public inspection during regular business hours. I COOPERATIVE PURCHASING The purchasing agent may participate in joint bidding with other public agencies if it is deemed in the best interests of the county. PAYMENTS TO VENDORS All bills paid by Weld County fall into one of the following three cate- gories : 1 . Expenditures not requiring a requisition. (Listing of this type of expense is shown in the manual . Please refer to index. ) 2. Expenditures requiring a limited purchase order. (Listing er this type of expense is shown in the manual . Please refer to index. ) 3. Expenditures requiring a requisition and purchase order. (Every pur- chase that does not qualify under items 1 and 2 must be covered by a requisition and purchase order) . NO DEMAND FOR MONEY AGAINST THE COUNTY SHALL BE APPROVED, ALLOWED, AUDITED OR PAID UNLESS IT SHALL BE IN WRITING, DATED AND SUFFICIENTLY ITEMIZED TO IDENTIFY THE EXPENDITURE. EXPENDITURES NOT REQUIRING REQUISITIONS POLICY It has been determined that it is not in the best interests of the County to require requisitions on all purchases of goods or services. Following is a listing of the types of expenses which will be processed for payment in the Finance Office without a requisition and purchase order: 1 . Advertising. Advertisements placed in newspapers for job openings , bids , legal notices , etc. 2. Allocations to outside agencies. Payments made to agencies outside County government for which an amount was determined at budget hear- ings. (Emergency search and rescue, libraries , cities , etc. ) 3. Auto mileage and personal reimbursements. Reimbursements to county employees or individuals for expenses paid out of pocket. Mileage to be reimbursed at current rate per mile for authorized travel on county business. 4. Coroner's fees. Fees paid to County Coroner, investigators. 5. Dues , meetings , and travel expenses. Dues to organizations , regis- tration fees for seminars , conventions , expenses incurred while attending seminars and conventions such as hotel bills , food, cab fare, etc. 6. Education and training expenses . Fees paid to organizations for training of county employees Tincluding manpower and other human resources department clients) . 7. Expert witnesses. Expert witnesses called by the District Attorney, County Attorney, or Sheriff to testify in Weld County's behalf. 8. Personal services. Doctors , dentists , lawyers , or researchers used occasionally. 9. Postage. Stamps , postage paid envelops , or postcards . 10. Rent payments. Monthly rental payments on office equipment, buildings , vehicles, etc. Expenditures Not •"--quiring Requisitions Page 2 11 . Telephone. Regular telephone bills , telephone answering service. 12. Transcripts. Transcripts for the District Attorney, County Attorney, or other county offices. 13. Utility bills. Monthly charges for electrical , water, gas (including propane) service. 14. Temporary employees. Those employees who are not on the County pay- roll . Hired to perform such functions as clerical work, shift relief, motor vehicle rush assistance, etc. , and whose work site is a county office. These employees must have si_gped a contract stating that they are independent contractors. ROUTING OF VOUCHER AND INVOICES ON EXPENDITURES NOT REQUIRING REQUISITIONS An original and one copy of the invoice plus a properly completed county voucher input form must be forwarded to the Finance Department. A copy of the invoice should be retained in the files of the using depart- ment and marked with the date submitted to Finance for payment. Department head or authorized signature must appear on the voucher form. Note: Employees of Weld County must furnish the vendor with the name of the department making the purchase. Do not sign a sales slip with employee name and Weld County. Be specific. Example: John Doe, Data Processing Department, Weld County. j♦ LIMITED PURCHASE ORDERS POLICY The limited purchase order shall be used for an item or items with a total cost of $50.00 or less only. This type of purchase order exists to help county departments in expediting the procurement of small amounts of mat- erials and equipment. The system holds buying abuse to a minimum with: 1 . The $50.00 limit. 2. The department head is responsible for the purchase orders issued to his department. 3. The yellow copy, which must be presented with the invoice to Finance for payment. PROHIBITION AGAINST SPLITTING ORDERS No order shall be split to avoid the $50.00 maximum for Limited Purchase Orders. Example: A chair costing $80.00 cannot be split up and submitted on two Limited Purchase Orders to avoid submission of a requisition to Purchasing. RESPONSIBILITY The department head shall be directly responsible for the Limited Purchase Order forms issued to his department. Only those forms signed by the de- partment head, or authorized representative will be honored for payment. Use of the Limited Purchase Order forms should not he overly restricted, and a department should not hesitate to use this system if the purchase is ne- cessary. An "unsupported" invoice will cost the County many dollars in lost personnel time. PROCEDURE • The following procedures shall be employed in using the Limited Purchase Order: 1 . Prepare a Limited Purchase Order form in triplicate (white , canary , and pink) , filling in all blanks and securing department head signa- ture. The description shall identify item(s) purchased and shall not LIM i,, d ,a Page 2 ,. ki read "per attached invoice" . If the order is being mailed to the vendor, fill in the "send to" and "attention of" blocks also. Many shipments are misdirected to Accounting or Purchasing. 2. Cash with order - When mailing cash with order, forward both the white and yellow copies of the Limited Purchase Order to the Finance Department with any necessary attachments. Write across the body of the Limited Purchase Order "cash with order" . The white copy, war- rant, and any attachments will be mailed to the vendor by the Finance Department. 3. Present the white copy to the vendor upon receipt of the material . If the supplier writes out a sales slip, he should refer to the number pre-printed on the Limited Purchase Order form in the upper right hand corner. 4. The yellow copy serves as a receiving ticket to support payment of the vendor' s invoice. The yellow copy should be returned to the Finance Department. If the vendor provides the county employee with a copy of the sales slip, it should be attached to the yellow copy. 5. The pink copy is a department record of purchase and shall be retained by the originating department. ADVANTAGES 1 . Expedites delivery. Experience with limited purchase orders has proved that the majority of orders are for items that are needed immediately. The nature of a formal purchase order requires a mini- mum delivery in terms of days rather than minutes. Also , many of the items that are purchased are not normally delivered by suppliers in small quantities . 2. Use of limited purchase orders saves the purchasing department per- sonnel time for larger and more complicated buying. 3. Cuts the cost of paperwork. A limited purchase order form costs only a few cents and the time taken to write it. Even a routine regular purchase order costs several dollars when all clerical costs are considered. DEPARTMENT ASSISTANCE 1 . Department heads are requested to insist on planned purchases for all except emergency situations. Limited Purchase orders Page 3 2. Department heads are requested to check files of Limited Purchase Orders periodically to see if two or more orders to the same company are being written on the same or consecutive days. This could in- dicate a violation of the $50.00 limit or a waste of manpower and unnecessary use of equipment due to poor planning. PURCHASING DEPARTMENT ASSISTANCE The Purchasing Department will : 1 . Assist in locating any commodity, service or equipment. 2. Advise recommended sources and prices for specific commodities. REQUISITION POLICY The purchase requisition is the basic document authorized for procurement, and as such, it is the only authority for the issuance of a purchase order, unless otherwise directed by the Board of County Commissioners. THE PURPOSE OF A REQUISITION The purchase requisition is to inform the Purchasing Office of the needs of the requisitioning department, and to correctly identify the require- ments . ROUTING OF REQUISITION An original and two (2) copies of the requisition will be prepared. The original and one (1 ) copy will be sent to the Purchasing Department, and one (1 ) copy will be retained in the files of the using department. The Purchasing Department will complete the requisition by obtaining bids , selecting the lowest and best bidder, with approval of the department head, inserting the successful bidder's prices , vendor selected, vendor's address , terms , date delivery is promised , F.O.B. point, terms , purchase order num- ber, and other information as required. Department heads will be given the opportunity to review the bid abstract prior to the completion of the requisition by purchasing. r. t b. BLANKET REQUISITIONS A department may find it useful to submit a requisition to cover repeated purchases from one supplier, where the exact price, or items to be pur- chased is not known at the time of preparation of the requisition. This can be accomplished by filling out the requisition as usual except that in the description area the requisition should read: (Examples) a. Gasoline for the months of May, June, and July in an amount not to exceed: $2,000.00 b. Medical supplies for the first quarter of 1976 in an amount not to exceed: $300.00 The purchase order written from such a requisition shall be known as a blanket purchase order. The receiving copy of the purchase order shall be retained until the final payment is made, at which time it shall be forwarded to the Finance Depart- ment. 6• QUESTIONED PURCHASE REQUISITIONS The finance Director has the right and the duty to question any item(s) on a requisition that may be unnecessary and/or unreasonable. The Finance Director does not, however, assume the authority to refuse to authorize the purchase of the item(s) requisitioned. In the event of a questioned requisition , the matter will be brought to the attention of the Board of County Commissioners , who, in their capacity, will make the final admin- istrative determination concerning the purchase. (In the case of elected officials , the only requisitions questioned would be those, which if filled, would cause a budget overrun) . k GENERAL INFORMATION FOR REQUISITIONS Requisitions for equipment, such as automobiles , trucks , graders , office machines , etc. , must show the make, serial and county inventory number of the equipment to be traded, if a trade-in is involved. In all cases , show the location of items to be traded and the department contact. The Board of Commissioners reserves the right to retain the trade-in and transfer to other departments as needed. USING DEPARTMENT Prepare purchase requisition far enough in advance of the date require- ments are needed, to enable the purchasing department to secure competitive bids , and to allow for delivery by vendor. All requisitions must be signed by the department head or his authorized representative. The Finance Director must certify that funds are available prior to the order being placed with vendors . The department head shall not authorize requisitions for items that exceed the unencumbered balance in the department budget. Where funds are not available, expenditures can only be made upon approval of the Board of Commissioners for a transfer of funds from other appropriations. HOW TO PREPARE A REQUISITION To be properly processed, a purchase requisition must contain the following information: DATE - Insert the date the purchase requisition is written. DEPARTMENT - Insert name of department. FUND - Insert name of fund (general , road, public works , etc. ) DELIVER TO - Insert exact location where item(s) are to be delivered includ- ing street address , floor room number, etc. QUANTITY - Insert ordering quantity. UNIT - Insert ordering unit (feet, dozen , gallon) . Do not use box , case, etc. DESCRIPTION AND SPECIFICATIONS - Present the item desired clearly as to size, color, type, grade , etc. When necessary, the information may be put on a separate sheet, attached to the requisition, and transmitted to the Purchas- ing Department. The Purchasing Department shall , when the purchase of a commodity requires formal and detailed specifications , receive from the of- ficials of the using department, any technical assistance which may be re- quired to prepare the specifications. The requisition will , in a descriptive form, state the purpose for which the material will be used: Examples : "To replace supplies" , "To repair unit #304 (INC Truck)" , and "To resurface county road #25" . The requisitioner will state the specific delivery date required. Do not use such terms as "Rush" , and "As Soon As Possible" ACCOUNT NUMBER - Insert fund number, department number, and account number to which the materials , equipment or supplies will be charged. Example: 01-101-700. UNIT PRICE - Will be filled in by Purchasing Department. AMOUNT - Total amount will be extended and inserted by Purchasing. SUGGESTED VENDORS - When possible, refer the purchasing department to a particular vendor or vendors , whose product has been used previously and has been found to be satisfactory. Vendors suggested will be given full How To Prepare a IJsauisition Page 2 • consideration by the Purchasing Department. A sole source vendor will be considered if sufficient documentation of reasons is shown by the depart- ment head. BALANCE OF REQUISITION - Will be completed by the Purchasing Department. APPROVALS (Under $1 ,000.00) - 1 . Department Head 2. Finance Director 3. Purchasing Agent APPROVALS (Over $1 ,000.00) - 1 . Department Head 2. Finance Director 3. Purchasing Agent 4. One member of the Board of County Commissioners (Commissioner Coordinator or Pro Temp) . In the case of elected officials , each office will be assigned to a Commissioner Coordinator and Pro Temp for approval purposes only. NOTICE OF CONFIRMING ORDER When a purchase is made outside normal business hours , advise the vendor to hold the invoice until a purchase order number is obtained. Only the Road Department, Sheriff, Communications , Civil Defense, and the Mainte- nance Departments are authorized to make purchases outside regular busi- ness hours , and then only when failure to do so would result in cessation of vital services. A requisition accompanied by a memorandum explaining why purchase was made on a confirming basis must be submitted to the Pur- chasing Department by 10:00 a.m. on the following normal workday. The Purchasing Department will submit a completed purchase order to the vendor within 24 hours. CANCELLATION OR CHANGE TO A REQUISITION If a requisition is received in purchasing and it is determined that the amount is not enough to justify writing a purchase order, the requisition department will be informed that the purchase can be made by using a Limited Purchase Order. The requisition will , at this time, be cancelled and a short statement written across the face explaining the reason for cancellation and procedure to be followed in obtaining the material . The requisition will then be returned to the originating department. Any change shall be clearly recorded on the requisition and initialed by the person authorizing the change. If a change or cancellation affects pricing and has been made after the Finance Director has approved funds , he/she must be notified of such change or cancellation. REGULAR PURCHASE ORDERS PURCHASING DEPARTMENT The Purchasing Department shall complete the purchase order which consists of four parts. Distribution of the copies is as follows : 1 . White copy returned to department from which requisition oriyinated pending receipt of goods or services. 2. Canary copy retained by originating department. 3. Pink copy forwarded to vendor. 4. Blue copy forwarded to Finance Department. Before any distribution of copies is made, Finance Director or designated shall review all purchase orders and certify that funds are available with- in the department budget by initialing the purchase order. The Board of Commissioners (one member) will initial all orders over $1 ,000.00. DEPARTMENT RESPONSIBILITY It shall be the department's responsibility to keep unfilled purchase orders in a file and to notify the Finance Department if there is any discrepancy between the listing of purchase orders appearing on the General Ledget re- ports and those in the department files. It is especially important that any difference in coding be reported. It shall be the department's responsibility to forward the receiving copy to the Finance Department immediately after merchandise is received. A separate section on procedures for receiving appears in the manual . AMENDED OR VOIDED PURCHASE ORDERS The Purchasing Department shall notify the Finance Department and the using department immediately, in writing, if a puchase order is voided. Any change in pricing occurring after distribution of the copies of the purchase order in an amount greater than 5% shall result in the follow- ing: 1 . Voiding of the original purchase order. 2. Issuance of an amended purchase order by the purchasing department, contingent on the approval of the department head of the originating department. s. RECEIVING PROCEDURES PURCHASING AGENT To determine compliance with purchase order requirements , the purchasing agent may inspect, or supervise the inspection of all merchandise received. Where the word merchandise appears in the procedure , it shall also mean material , supplies , equipment and services. INSPECTION The receiving agency shall inspect, check, and count the merchandise re- ceived, to see that it conforms as to quantity, quality, and specifications on the purchase order. This authority will be assigned by the department head only to personnel qualified to perform such inspection. Caution must be exercised by receiving agent to insure quantity received, as noted on the receiving report, is correct. (See section on Damaged Merchandise under General Information) . DEPARTMENT PROCEDURE Upon receipt of merchandise, and after inspection and/or testing, the re- ceiving agent will : 1 . If all items are received at one time: a. Date and sign the buff (receiving) copy of the purchase order, and forward to the Finance Department. 2. Contact purchasing immediately regarding defective material , shortages , wrong quantities or material . Do not forward receiving copy to Finance until satisfied with order. (See Section on Damaged Merchandise under General Information) . 3. If partial delivery of items and/or quantities are received: a. Complete partial receiving ticket for items received and forward the ticket to Finance. (Retain buff copy of the purchase order) . b. When last item(s) has been received, repeat 3-a and attach the buff copy of the purchase order. Date and sign the buff copy of the purchase order. Receiving Pro( e duF) Page 2 c NOTE: Blanket purchase orders shall require completion of a partial re- ceiving ticket for each item, or lot received, except in cases where ser- vices rather than goods are being provided. In these cases , reference to the purchase order number must be made on the voucher document. PURCHASING DEPARTMENT Merchandise received over, short, partial , rejected, or received in damaged condition: Contact vendor and arrange for return , replacement, records correction, credit and/or delivery schedule as applicable. Mark any items which will not be paid on purchase order, initial , and forward a copy to Finance. NOTE: Invoices will not be paid by Finance unless the invoice agrees with the purchase order, or unless the change is approved by the department head and the purchasing agent. INVOICE FROM VENDORS POLICY Invoices will normally be sent directly from the vendor to the originating department. When exceptions are necessary, the invoicing instructions shall be noted on the requisition and purchase order. Invoices received by operating departments should be forwarded to the Fi - nance Department immediately upon receipt, with voucher and the receiving copy of the purchase order. When the invoice is received by the Finance Department, the accounts payable clerk will match invoices and the finance copy of the purchase order. If the quantities and prices agree, the invoice will be processed for payment. Shipping charges may be added, if so noted on the purchase order. If the quantities and/or prices do not agree, all documents will be placed in a holding file until reconciled by the purchasing agent or the department head. Invoices shall be paid on a timely basis for all items received. It is not necessary that the purchase order be completed to make payments. (Use the partial receiving ticket) . Vouchers are processed on a continuous basis and warrants are written once a week. The warrants are normally placed in the mail on Thursday. Due to the volume of warrants written, and for proper internal control , warrants will not be released for pick up by vendors or individuals unless approved in advance by the Finance Director or a designated staff person. All documentation (purchase order, receiving report, invoice, voucher, etc. ) that is received, matched, and in proper order by Friday is normally paid in the following week. GENERAL INFORMATION A smooth flow of requisitions , purchase orders , and invoices must be accomplished. Departments can assist by giving Purchasing as much time as possible to fill an order. Purchasing will endeavor to complete the order in a reasonable amount of time. If there are problems or complaints that cannot be worked out between departments and Purchasing, the Finance Director should be notified. The purchasing agent shall purchase only those supplies , material , and equipment requested by a using department. He/she should, however, keep the department heads informed on price changes , deliveries and other infor- mation that would be in the interest of sound County fiscal policy. The Board of County Commissioners of Weld County, Colorado, may, by motion or resolution , purchase items of used equipment which , by their very nature are not biddable as a practical matter, but all such purposes of used equip- ment and contracting of services , must be approved by the Board of County Commissioners at a regular board meeting by motion or resolution of the Board. All provisions of the Weld County Home Rule Charter prohibiting employees and elected officials of Weld County, Colorado, from doing business with Weld County, Colorado, shall be strictly adhered to in connection with the purchase of all supplies , services, materials and equipment by the Purchasing Director and department heads. You are encouraged to seek the assistance of the purchasing staff as early in the acquisition process as possible and necessary. It is at this point that the using departments can realize the major benefits provided by the Purchasing Department staff. Purchasing will : suggest products or services to meet your needs; contact vendors to obtain literature and set up demon- strations for you; obtain price and delivery information ; and investigate alternatives , including their advantages , disadvantages , and costs. These services are available to you as soon as you decide to solve a supply pro- blem. Departments should contact the Purchasing Department prior to budget- ing and/or submitting a requisition. The using departments and agencies should call the Purchasing Department for product assistance, rather than the vendors. If it is necessary to contact a vendor, call the Purchasing Department and we will set up an appointment with the vendor for you. The Purchasing Department provides this service to save the time of the department and to help provide the department with the proper materials to do their jobs. DAMAGED MERCHANDISE There are two types of damaged merchandise: 1 . Visible 2. Concealed In either case, receive the merchandise. In cases of Visible Damage - Note on both copies of freight bill "case damaged in shipment" and, if the item is visible and the damage is visible also include "item visibly damaged. " Obtain a signature from trucker on both copies of freight bill . Return one copy of freight bill to trucker. Forward one copy of freight bill to Purchasing, together with note identify- ing damage. In cases of Concealed Damage - After the merchandise has been accepted from the common carrier, you should open the package immediately, inspect the merchandise, and report any discrepancies or damage. If damage has occurred, you must keep all packaging and report the damage to Purchasing. The County has 15 days in which to file claim for damage with the carrier, after which claims will not be accepted by I .C. C. rules. WARNING: Do not destroy damaged item, or any packaging materials. PRODUCT STANDARDIZATION The Weld County Standards Committee is established by directive of the Board of Commissioners . The purpose of the Weld County Standards Committee is to aid the purchasing agent in conducting the standardization program and to establish purchasing policy in the various commodity fields that lend themselves to standardization. The main benefits of standardization are : better prices through quantity purchases of fewer varieties of materials ; and the selection of materials which are best suited for County uie. All materials , supplies, and equipment purchased by the County will be standardized as much as possible. When economically feasible, standard items are carried by supply in continuous inventory. Specific commodity committees will be established to aid the purchasing agent in arriving at standards on common use items within specific commodity areas. These commodity committees are comprised of representatives of var- ious using departments and Purchasing. Anyone serving on a Standards Com- mittee benefits the County as a whole as well as their own department. Purchases will be made through the use of standard specifications whenever possible. These standards may be established by a standards committee to meet special County needs, or they may be selected from existing Federal , industrial , or trade association standards. DISPOSAL OF SURPLUS PROPERTY This procedure shall be used for disposing of all County owned material , equipment, and supplies except for property seized by the Sheriff's de- partment. All departments shall submit to the purchasing agent , on an annual basis , a report showing stocks of all supplies , materials , and equipment which are no longer used or which have become obsolete, worn out or scrapped. The purchasing agent shall have the authority to transfer such commodities which are usable to another department in lieu of filling out requisitions for the purchase of new and additional stock of the same or similar articles. The purchasing agent, with the approval of the Board of County Commissioners , shall have the authority to sell all such supplies , materials , and equipment, which cannot be used by any department, or which have been found by the Board not to be required for public use, or to exchange or trade-in such articles in part or full payment for new supplies , materials , or equipment of a simi- lar nature. Estimated sales in amounts , or estimated amounts of $2,000.00 or more , shall be formally advertised and sealed bids shall be taken and the bids received shall be submitted to the Board of County Commissioners for award. Sale by public auction may be used in lieu of sealed bids. When public auction is used, the purchasing agent and department representatives may establish a minimum gross amount prior to the auction. Estimated sales in amounts , or estimated amounts of less than $2 ,000.00 shall be made by informal procedures calculated to achieve maximum benefit to Weld County. Sealed bids or public auction shall be used to the maximum extent possible. Revenue received from said sales shall revert to the General Fund of Weld County, except as follows : 1 . Revenue from exchange or trade-in articles shall be applied against the gross amount of the invoice for new puchases. 2. Revenue from sales of Road Department equipment shall be credited to the Road and Bridge Fund or the Motor Vehicle - IGS Fund. Transfer of supplies , materials and equipment between departments shall re- sult in a debit and credit to the accounts of the departments involved, pro- vided the departments are within the same fund. The value of the item(s) transferred shall be established by the purchasing agent to the mutual satis- faction of the department heads involved. An inventory transfer slip shall be filled out, signed by both department heads , and forwarded immediately to the Finance Department. Disposal of SurpI Properly Page 2 Transfer of supplies, materials , and equipment between departments in different funds shall result in a warrant being written from one fund for deposit in the other fund. No supplies , materials , or equipment shall be sold, or otherwise disposed of, without prior approval of the Board of County Commissioners and/or the purchasing agent. Nothing contained herein shall be construed to prohibit the return of un- used materials , supplies , or equipment which are surplus to the requirements of Weld County. Materials , supplies , or equipment may be returned with or without a restocking charge if this method of disposal will result in a higher benefit to Weld County. All materials , supplies or equipment re- turned shall be reported to the purchasing agent. { REQUISITION/PURCHASE ORDER SUGGESTED FILING FOR DEPARTMENT 1 . When order is made place blue copy of requisition in pending requi- sition file. 2. When purchase order is made, Purchasing will return canary cc.py of requisition with the purchase order number stamped on it. This copy should be matched with the blue copy of the requisition in the pending requisition file. 3. When the purchase order is approved by Accounting and/or the Board , the white and canary copies of the purchase order will be sent to the department. The purchase order copies should be matched with the canary and blue copies of the requisition in your pending file. 4. When goods or services are received, match receiving ticket with the purchase order and requisition copies pending receipt of an invoice. 5. Once an invoice is received, compare it to the purchase order and receiving ticket to insure no errors exist on the invoice. 6. If invoice is correct, then take the following action : A. If only a partial order is received, complete a "Partial Receiving Copy" for the purchase order. Note on the purchase order the amount received and attach copy of "Partial Receiving Copy" to the purchase order and requisition copies . Then com- plete a voucher and forward the "Partial Receiving Copy" , voucher, and invoice to Purchasing. B. If the complete order is received, send a copy of the invoice , white copy of purchase order, completed voucher, receiving tic- ket, and blue copy of the requisition to Purchasing. 7. File the canary copy of the requisition , canary copy of the purchase order, copy of invoice, and if desired, a copy of the voucher in a completed purchase order file. Hello