Policy: 212

Purchasing / Accounts Payable / Code of Conduct


Procedure:

The agency has adopted and mandates that all purchases be made in accordance with SCDDSN Directive 250-08-DD. The purchase process begins with a supervisor preparing a purchase request for goods or services needed. The purchase request is presented to the Department Administrator who determines legitimacy and assigns a priority number. Priority one is considered to be a necessary purchase needed for health, safety or licensing need. Priority two is considered to be highly needed but not health, safety or licensing related. Priority three is considered to be of great benefit but not needed immediately.

Written bidding will be the responsibility of the Business Director or designee and will be done in accordance with Directive 250-08-DD. All purchases over $10,000 must have written quotes (bids) or may be advertised in the South Carolina Business Opportunities Newsletter. Purchases above $25,000 must have written bids and must be advertised in the South Carolina Business Opportunities Newsletter; however, sealed bids are not required for purchases below $100,000.

Purchase requests are forwarded to Finance. Finance will date stamp and the Business Director or their designee will determine who needs to sign-off and will forward to the appropriate approval source. Purchases above $5,000 are to be approved by the Marion-Dillon County DSN Board. Purchases between $2,501 and $5,000 are to be approved by the Executive Director. Purchases between $501 and $2,500 may be approved by the Business Director. Purchases of $500 or below may be approved by the Financial Coordinator.

Upon approval of the purchase request, the Financial Coordinator prepares the pre-numbered purchase order and gets it signed-off by the appropriate person as indicated above for approval sources. Once signed, the purchase order is returned to the appropriate Department Administrator and the purchase is made. A receipt is obtained and the person actually receiving the goods should initial verifying receipt of goods on the invoice, and/or packing receipt. All receipts, invoices and packing slips should be returned to Finance immediately. The Financial Coordinator matches the receipt, invoice and packing slips with the purchase order. Approval of Invoices up to $500 may be approved by the Financial Coordinator. Purchases above $500 and less than $2501 may can be made by the Business Director. Approval for payment of invoices above $2,500 is to be made by the Executive Director. Once approval for the invoice is made, the Financial Coordinator enters account codes on the invoice and enters on the computerized accounting system. Care is taken to make sure due-dates are adhered to. The Financial Coordinator runs a Cash Disbursement Journal that is reviewed and authorized by the Business Director for a check run. The check(s) are printed with the appropriate authorized signature. The Check Register and the Accounts Payable Journal are reviewed and signed off on by the Financial Coordinator and the Business Director..

Authorized check signers are determined by the board and reviewed annually by the independent auditors. When an authorized check signer leaves the agency or board, the name is taken off of the bank authorization card. The Financial Coordinator mails the check to the appropriate vendor and files the check stub by attaching it to all the invoices, statements, receipts, packing slips for that particular check.

All purchases must be approved and have a purchase order number before the purchase is made. The exception to this would be for EMERGENCY PURCHASES.

EMERGENCY PURCHASES — may be made after business hours and on weekends if approval is secured from the appropriate Department Administrator. Examples could be broken HVAC systems, broken plumbing, electrical problems, and gas purchases when county gas pumps are closed, etc. In all cases, a purchase request must be forwarded to finance by the Department Administrator within 2 business days of the purchase along with a written report of the circumstances that necessitated the procurement and the selection of a particular source. This written report with proper authorizations will be attached to the invoice and purchase orders for the purchase. The Executive Director will be notified of the purchase and will sign off on the emergency purchase. Should an EMERGENCY PURCHASE be required that is over the minimum amount for bids, then the Executive Director must approve before the purchase is made. Any Emergency Purchase above $5,000 must also be approved by the Board.

Capitalization Procedure: - Any single purchase of equipment or furniture over $1,500 will be capitalized, (depreciated) using straight-line depreciation. Life period: Vehicles – 5 years, office equipment – 5 years, business furniture – 15 years, household furniture – 15 years.

Code of Conduct: The following code of conduct will govern board members, employees or agents as part of the procurement policy. No employee, board member, or agent of the local board shall participate in vendor selection or in the award or administration of a purchase supported by DSN award funds, as well as any other awards or money received by the Agency from any and all other sources, if a conflict of interest would be involved.

If a conflict of interest would be involved, such a conflict would arise when: (a) an employee, board member, or agent; (b) any member of his or her family; (c) his or her partner; or (d) an organization which employs or is about to employ any of the above; has a financial or other interest in the firm selected for the purchase. This Code of Conduct does not have to prohibit awards to these parties but does prohibit their participation in the selection process or in the administration of purchases where there would be a conflict of interest. This Code of Conduct also should prohibit employees, board members, or agents from soliciting or accepting personal gratuities, favors, or anything of monetary value from contractors/suppliers, potential contractor/suppliers, or parties to sub-agreements. The State Ethics code, South Carolina Code of Laws Sections 8-13-10 through 8-13-1020, governs disabilities and special needs boards. If a situation arises that may be considered a violation of the State Ethics Code, the Board would first review the situation and make a decision regarding conflict of interest. If further review is needed, the situation would be submitted in writing to the State Ethics Commission for guidance and/or a hearing if applicable.

Purpose

To establish guidelines and procedures for making purchases of supplies, services and equipment as well as the Agency Code of Conduct be considered when making such purchases.

Effective Date:
February 25, 2005

Revised:
June 23, 2011

Revised:
April 25, 2013

Revised:
June 11, 2020