PURCHASING AND BUDGET CONTROL:

Any Purchase (other than from Petty Cash) must go through the Purchasing Agent and/or the Board of Directors be handled in the following manner.

Account Purchases:

1.                  Large purchases (e.g. lawn mowers, etc.) purchaser must get three quotes for pricing, and discounts must be requested.

2.                  When a decision to purchase is established, a firm price, including all taxes and less any discounts will be brought to the Purchase Agent.

3.                  Purchasing Agent will peruse and ensure that money is currently available within the budget to make the purchase. If not within budget, purchase must not, be made.

4.                  Any problems arising on a refusal to purchase by Purchasing Agent will go before the Finance Committee or Board of Directors for decision.

5.                  If purchase requested is within budget, Purchasing Agent will complete a purchase order (3 parts) indicating the following information:

a)     quantity;

b)     description of item;

c)      account number

d)     price;

e)     tax;

f)        discount, if applicable;

g)     purchasing agent’s signature;

h)      vendor’s name and address;

i)        Co-op’s name and address.

6.                  Distribution and Control of Purchase Orders

#1 copy – purchaser will take to vendor

#2 copy – forward to Treasurer, to be held for match up with Vendor’s invoice for payment.

#3 copies – copy to be kept on file by Purchasing Agent

NOTE:           The above procedure will only be used to purchase items from vendors with whom we have set up purchasing accounts.

Cash Purchases:

Following the same procedure as with Account Purchases, but with the following exceptions:

1.      When approval to purchase has been confirmed by Purchasing Agent, a purchase order will be completed with all pertinent information.

#2 copy – will be taken to Treasurer by Purchasing Agent, who will retain copy on file and issue a cheque to cover amount of purchase.

2.      #1 copy – purchaser will take to vendor with cheque to cover purchase.

3.      #3 copy – retained in Purchasing Agent’s file.

4.      On receipt of paid invoice or sales bill, purchaser will return it to Purchasing Agent, who will take or forward to the Secretary-Treasurer for match up with 32 copy of purchase order.

NOTE: It would be much easier for all concerned if purchasing accounts were set up with a few specific vendors for most major purchases.