Accounting Procedures Handbook

18 PROCUREMENT I. OVERVIEW The Procurement Department plays a key central operational and control role for the WCBOE with regard to the origination and coordination of requests to commit funds on behalf of the organization (via the purchase requisition/order approval process) for purchases of goods and services. The Procurement Department plays a vital front-end role in the ultimate expense/ expenditure and liability origination process for the WCBOE, specifically as it relates to purchases generated via the central purchase requisition/order approval process. As such, the Procurement function is closely linked to the Accounts Payable/Disbursement function of the WCBOE, as purchases coordinated via the Procurement Department will typically result in later submission of vendor invoices for payment upon the vendor’s fulfillment of approved purchase orders (POs). Vendor invoices, which are matched against approved purchase orders when received, are typically processed and paid by the Accounts Payable Department upon evidencing of corresponding receipt of applicable goods/completion of vendor contract services, etc. Funds are typically encumbered via the purchase order approval process. Once a purchase order for goods or services has been approved, funds are considered specifically committed or allocated for such designated purpose and thus not available for other future expenditures. A reserve for encumbrances is established to record encumbrances outstanding at the end of a reporting cut-off period (month/ quarter/ fiscal year end), based on purchase orders and contracts signed by the Board but not completed as of the close of that period. The Procurement Department reports functionally to the Comptroller within the overall organization structure of the Business Support Services Department. The Procurement Manager has day-to-day management responsibility for the procurement process as delegated by the Comptroller. In this capacity, the Procurement Manager has direct responsibility for purchases made for the Board of Education. Some purchases may be handled by appointed personnel, serving as designated Buyers. Designated Buyers may include Principals, Directors, Supervisors, Coordinators, and Facilities Engineer/ Planner and Manager of Maintenance/Operations (per the WCBOE’s Procurement Guidelines referred to below). In addition, there are also currently two centrally designated Buyer positions within the Purchasing Department. The main formal procedures utilized by the Purchasing Department in their central coordination/ control role (and other WCBOE personnel involved in originating purchasing requests) are contained in the WCBOE’s Board approved Procurement Guidelines. A copy of the Procurement Guidelines is located in Section 23 (Appendices). The Procedures documented in Sub-Section III of this section of the manual are more limited in nature giving due reference to the comprehensive Procurement Guidelines as the primary reference source for the overall purchasing/ procurement process. Within the Purchasing Department, a team approach is generally taken with regard to the allocation of procedural/ control performance accountabilities between the Buyer(s) and Purchasing Associate positions. The Procurement Manager provides review/oversight of procedural and control activities performed by Purchasing Department personnel.