DFRS

POLICES & PROCEDURES
Department Of Fire & Rescue Services
Montgomery County, MD


PURCHASING PROCEDURES


 
 
No. 401
July. 1, 1990
PURPOSE
1.0 To establish formal purchasing procedures and provide for budget accountability.

APPLICABILITY
2.0 All DFRS personnel.

BACKGROUND
3.0 In August 1989, Purchasing Procedures were implemented to provide for improved efficiency and accountability. After six months of use, a review of the procedures was conducted. This policy incorporates the results of the review.

RESPONSIBILITY
4.0 The Chief, Bureau of Management Services is responsible for oversight and supervision of this policy.
4.1 Bureau Chiefs are responsible for approving, in advance, all Petty Cash purchases and Call Orders, and submitting the Petty Cash Voucher Log to the Bureau of Management Services for quarterly review.
4.2 The Management and Budget Specialist is responsible for reviewing and approving purchase requisitions, monitoring the quarterly petty cash voucher log and call order log.
4.3 Bureau of Management Services aides are responsible for maintaining control logs as indicated in this policy and processing forms and requests as required.

POLICY
5.0 The following positions have signature authority for approving Department Purchasing Requests.
  1. Director
  2. First Deputy Chief
  3. Chief, Bureau of Management Services
  4. Management and Budget Specialist
  5. Program Development Officer (CIP only)
  6. Bureau Chief (Petty Cash only)
  7. Bureau Chief (Purchase Approval Request)



5.1
Petty Cash

Personnel wishing to make a petty cash purchase ($50.00 or less) must receive advance approval from a Bureau Chief, or one of the individuals listed in 5.0 if the Bureau Chief is not available. Approval must be obtained prior to a purchase being made.

5.2 Each Bureau must maintain a log of petty cash transactions. See Attachment 7.0 for format.
5.3 The Petty Cash Voucher Log must be submitted to the Bureau of Management Services on a quarterly basis for review.



5.4
Call Order/Direct Payments

Call order purchases (maximum limit $1,000) must receive advance approval from the Bureau Chief prior to issuance of the call order number.

5.5 All Purchase Approval Request Forms must include proper Department, Pseudo and Object Codes.
5.6 The Bureau of Management Services must maintain a central Department log for all call order numbers. Call Order Numbers will be assigned by the Bureau of Management Services.
5.7 When merchandise is received, the invoice will be signed and dated to indicate receipt and a Direct Payment will be completed by each Bureau.
5.8 The Bureau of Management Services will maintain the central files of Direct Payments and invoices.
5.9 Direct Payments (an original and one copy) must be forwarded to the Bureau of Management Services for approval.



5.10
Purchase Requisition/Contracts

Purchase Requisition Forms are required for purchases over $1,000 and for any contractual agreements.

5.11 Forms must be forwarded to the Bureau of Management Services, for approval and signature.
5.12 The Bureau of Management Services should e listed as the billing address on the Purchase Requisitions. The requesting Bureau may utilize its own address for delivery (See Attachment 7.3).
5.13 Approved Purchase Requisitions will be forwarded to the Purchasing Department by the Bureau of Management Services.

PROCEDURE


6.0		 Petty Cash

Personnel desiring to make Petty Cash purchases must contact their Bureau Chief for approval. With approval, the purchase may be made.

6.1 Receipt(s) from the purchase are submitted to the Bureau Chief's aide. The aide will record the purchase in the Petty Cash Voucher Log and type a Petty Cash Voucher.
6.2 After signing by the Bureau Chief, the voucher is returned to the purchaser. Signed vouchers are reimbursed at the Division of Revenue, 5th Floor, EOB.



6.3
Call Order/Direct Payments

A Purchase Approval Form is completed and forwarded to the Bureau Chief for signature.

6.4 Once approved, the form is submitted to the Bureau of Management Services. In emergency situations, the Bureau's aide may call the Bureau of Management Services and obtain a Call Order number.
6.5 A Bureau of Management Services aide will assign a Call Order Number and enter the necessary information in the central Purchasing Tracking System.
6.6 Once the Call Order number is assigned, the Bureau can order the merchandise.
6.7 Upon receipt of the merchandise, the purchaser signs the invoice, types a Direct Payment and forwards the following to the Bureau of Management Services.

a. The Invoice b. The Direct Payment c. One copy of the Direct Payment and invoice d. Copy of Purchase Approval Form

6.8 A Bureau of Management Services aide records payment in the central Department Call Order/Direct Payment Log, obtains an authorized signature, forwards the Direct Payment to Accounts Payable and places the Direct Payment copy in a central file.



6.9
Purchase Requisitions/Contracts

A Purchase Requisition is completed and forwarded to the Bureau of Management Services. The billing for all Purchase Requisitions is the Bureau of Management Services, EOB, 101 Monroe Street, Rockville, Maryland 20850.

Exception: For Purchase Orders which require monthly billing, invoices should be billed to the requesting Bureau. The original Purchase Order will still be maintained through the Bureau of Management Services.

6.10 A Bureau of Management Services aide logs the Purchase Requisition and forwards the requisition to the Management and Budget Specialist for review.
6.11 After review and approval signature by the Chief, Bureau of Management Services, the Management and Budget Specialist returns the requisition to the Bureau of Management Services aide, who forwards the requisition to the Office of Purchasing.
6.12 Purchasing processes and returns the Purchase Order to Bureau of Management Services.
6.13 Bureau of Management Services notifies the requesting Bureau of purchase approval by forwarding a copy of the Purchase Order.
6.14 When the order is received, the ordering Bureau signs and forwards the receipt to the Bureau of Management Services.
6.15 Upon receipt of the invoice from the vendor, the Bureau of Management Services signs the Purchase Order, forwards to Accounts Payable.

ATTACHMENTS
7.0 Petty Cash Log
7.1 Request for Payment
7.2 Purchase Approval Request
7.3 Purchase Requisition
7.4 Petty Cash Flow Chart
7.5 Call Order/Direct Payment Flow Chart
7.6 Purchasing Requirements Flow Chart