R990-100-15. Purchasing, Receiving and Accounts Payable

A. Grantee agencies shall develop and have approved procedures for handling purchasing, receiving, and accounts payable. (In the absence of a local procedure, the state procedure shall be followed.) These procedures should include:

(1) Pre-numbered purchase orders and/or vouchers for all items of cost and expense.

(2) Procedures to insure procurement at competitive prices.

(3) Receiving reports to control the receipt of merchandise.

(4) Effective review following prescribed procedures for program coding, pricing and extending vendors' invoices.

(5) Invoices matched with purchase orders and receiving reports.

(6) The local grantee must have adequate controls, such as checklists for statement - closing procedures to insure that open invoices and uninvolved amounts for goods and services are properly accrued or recorded in the books or controlled through worksheet entries.

(7) Adequate segregation of duties in that different individuals are responsible for:

(a) Purchase;

(b) Receipt of merchandise or services; and

(c) Voucher approval

B. A list of anticipated equipment purchases must accompany the application for funding. Purchases over $1,000 must receive written state approval.