Title: Purchase Requisition Policies & Procedures
Scope: This document covers the processing of a Purchase
Requisition, which are the source documentation that allows
data to be processed onto Banner to create a Purchase Order
for the supply of goods and services.
Objectives:
To ensure that the processing of the Requisition is accurate in
detail and meets all University and Audit requirements.
To ensure processing of the Requisition is of a timely nature
and satisfies the requirements under GST legislation.
Issues: Nil.
Policies:
Appropriate authorisations and approvals must be received
prior to processing.
With the exception of orders raised by Division of Library
Services & Division of Information Technology Computer
shop, all purchases require the completion of a Purchase
Requisition (Form FU3) prior to the order being raised or
payment of an invoice by Direct Pay.
Purchase Requisitions will be pre-numbered and prefixed RA,
RB or RW.
Purchase Requisitions are accountable documents and must be
stored securely and in such a manner as to allow accurate and
easy retrieval for query and Auditing purposes.
Procedures:
Raising Purchase Requisitions
When a School or Section wishes to purchase goods or obtain
services it is required to first raise a Purchase Requisition for
forwarding to the Purchasing Office.
The form should include all the information necessary to
enable purchasing staff to either obtain quotations or process
the requisition and raise a Purchase Order.
If written or verbal quotations have been obtained, or if the
item to be purchased is from a previously determined contract
source, full details should be included on, or attached to the
Purchase Requisition.
If a suitable vendor is known, the name and address should be
provided and only items which can be obtained from that
vendor should be included on the Purchase Requisition. If the
vendor is not known, only items of a similar nature which
would usually be available from a single vendor should be
included on the Purchase Requisition. Only one supplier per
Purchase Requisition is permitted with the exception of
Purchase Requisitions relating to Advertising, in which case
the University has approved that two suppliers (design of Ad
and placement of Ad) may be used for each requisition.
The requisitioner is to complete the form and sign to certify
that the goods/services contained thereon are required for
University purposes.
Pricing of each item to be purchased MUST BE GST
INCLUSIVE, except for goods imported which are to be
priced as GST exclusive. Customs will invoice CSU
separately for GST.
Approving Purchase Requisitions
The Budget Manager is required to sign the requisition to
evidence that funds are available to commit expenditure for
the purchase. It is the responsibility of Budget Managers to
satisfy themselves that the goods/services are required and that
funds are available for the purchase.
The completed Purchase Requisition is to be forwarded to the
Purchasing Office on the Campus.
On receiving the Purchase Requisition, the Purchasing will
assign the Purchase Requisition to a buyer who will initiate
action to complete it to a point where a Purchase Order can be
raised. This may include:
Checking NSF.
Calling quotations / tenders.
Locating a suitable supplier from contract sources.
Sourcing from preferred university supplier.
Submitting to Purchase Board for approval.
For Requisitions requiring PB approval the total of
Requisition including GST will be the determining
value. Eg all Purchase Requisitions with a value of over
$5000 will require PB approval.
Once the Purchase Requisition has been completed, Finance
will arrange for its authorisation under Section 12 of the
Public Finance and Audit Act 1983 in accordance with the
approved delegations by the Board of Governors.
Non Sufficient Funds
Upon receipt of an approved Purchase Requisition Finance
will check using the web Budget Available Inquiry form, to
confirm that funds are available for the purchase. Finance
staff may override the NSF indicator if there are funds
available from the web inquiry screen. No processing is
permitted without approval of the Finance Manager (Supply)
for any other Purchase Requisitions that indicate NSF.
Purchase Requisitions which indicate NSF must not be
processed, an e-mail will be sent to the appropriate Budget
Manager requesting a Budget transfer and Purchasing staff
notified of when this has been completed. Only then will
processing be undertaken for the Purchase Requisition.
Banner form FGIBAVL (Budget Availability Status Form) will
show the GST inclusive amount so cannot be used to
determine the true NSF situation. Only the DFS Web page
Budget Availability Inquiry form can be used to check
whether Budget is available for the Purchase Requisition.
Direct Pay Processing
Where the Purchase Requisition is received in Finance,
with an invoice attached, meaning the goods and/or services
have already been supplied to the University, the following
process will occur:
The purchasing officer will ensure all necessary approvals
have been obtained before processing.
The Purchase Requisition will be stamped with the Direct Pay
stamp and details entered. The Invoice will be stamped with
the appropriate Direct Pay Stamp and details from the
requisition accurately transferred.
The invoice will then be processed for payment.
Responsibilities:
Budget Managers of Faculties/Divisions:
Ensuring that accurate and complete Purchase Requisitions are
forwarded to Finance for processing.
Suggest suitable suppliers of goods and/or services.
Evaluation and recommendation of tenders / quotations called
on their behalf.
Ensuring that sufficient funds are available.
Ensuring that goods and/or services are required by the
University and are not for private use.
Finance:
Ensuring that purchase requisitions are accurately processed
with correct account code, supplier and other appropriate
relevant information in a timely manner.
Ensuring that appropriate authorising signatures are obtained
prior to processing.
Ensuring that University procedures are followed regarding
tendering and quotations.
Checking the web inquiry form for NSF on Purchase
Requisitions received and ensuring appropriate follow-up
action is undertaken.
Filing Purchase Requisitions in a manner that allows ease of
retrieval for query and Auditing purposes.
Implementation: This procedure has been implemented and is subject to regular
review.
Date Submitted: Originally submitted June 1994. Submitted for review June
2000. Reviewed November 2003
Date Approved:
Prepared by: Mike Smith, Finance Manager (Supply).
Reviewed by: Davin Kendall, Finance Manager (Payables) – Nov. 2003.
