Article
PROCUREMENT
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Purchasing authority is vested in the Indiana Department of Administration and delegated through the Secretary of FSSA to the FSSA Director of Administrative Services. Only authorized FSSA personnel may commit State and/or Federal funds for goods and services.
Policies, mission statements, systems development, and agency reporting are the responsibility of the Director of Administrative Services.
- The Director of Administrative Services or a delegate has the authority to review any and all records to assure compliance with agency policy.
- The Director of Administrative Services or a delegate is responsible for documenting and communicating purchasing policy to all divisions.
- The Director of Administrative Services or a delegate is also responsible for the implementation of agency purchasing policy, management of operational procedures, and the organization of FSSA Procurement Services.
General Information
The general pattern for handling purchases is as follows:
- A request (requisition) is initiated by a department requiring products/services and sent to the Procurement Department.
- Complete and accurate specifications are determined.
- Good business practices are followed in determining the best offer for required materials or services.
- A purchase order number is used in placing orders; the receipt of an invoice is necessary before payment can be made.
Definitions
Purchasing authority – the FSSA Procurement Services' authority to commit State and/or Federal funds for goods or services, and all agency powers associated with the business activities.
Purchasing – a process which includes:
- consultation with user departments
- selection of vendors
- solicitation of quotations
- awarding of orders
- recording of audit trail
Throughout the purchasing process, the purchasing departmental staff follows State policies, statutes, regulations, and ethical standards.
Confirming Purchase Order policy
Confirming orders (After-the-fact orders)
Definition
A confirming order is a purchase, letter of intent to purchase, or request for scheduling in advance of an order that is made by an individual, without having a valid purchase order number, p-card or approved payment request form.
Policy
The use of confirming Requisitions and Purchase Orders without an approved Agency payment method to authorize retroactively commitments to venders by personnel are a violation of State policy.
Any individual who engages in a prohibited purchasing practice is hereby notified that he or she is risking their personal funds only, and not the funds of FSSA. This policy applies to all funds on deposit with FSSA regardless of the source. Lack of knowledge of proper procedures, or a perceived lack of time to follow them, when circumstances do not indicate a true emergency (a threat to public health, welfare, or safety) existed, will result in the return of all payment requests, expense reimbursements or requisitions for handling by the individual making the charge, or the individual approving it after the fact within the business unit.
Applies to:
- Requisitions
- Payment request forms for unencumbered payments
Delegation
The FSSA Secretary, through the Commissioner of the Department of Administration, has delegated the procurement function to the Director of Administrative Services. Any requisition of a commodity or a service made before the Procurement Department issues a purchase order may become the personal obligation of the individual obtaining the commodity or service. The requirements stated herein apply to all purchases of commodities and contractual services regardless of the funding source.
It is the responsibility of the Procurement Department to determine the price and secure the source of the supply (vendor) for the purchase. Requisitions departments shall never assume that their recommended vendor will be the vendor/contractor to whom the purchase order will be issued.
Requisitioning departments are urged to contact the Procurement department prior to preparing a requisition to secure information about specifications, sources of supply, terms, and prices.
A contractor should never be allowed to provide a service or deliver a commodity before a requisition is prepared and a purchase order issued.
Prohibited purchasing practices
Placing orders for goods or services with vendors, instructing the vendor to invoice FSSA before the Procurement Department has issued a purchase order to that vendor.
The use of a personal credit card or personal funds to purchase goods or services for the business unit.
Announcements
- Confirming Orders
(After-the-fact orders) - Accounts Needing Purchase Orders