purchasing

Purpose

The purpose of this operating procedure is to establish, document, and communicate the process for purchasing at YOUR CHURCH.

Scope

The purchasing process should be used by paid staff and/or ministry area volunteers for purchases required during the course of conducting ministry activities at YOUR CHURCH. Purchases include but are not limited to supplies, equipment, books, subscriptions, and any other purchase not normally done via business expense reporting, check request, or petty cash processes. The process begins with the completion of a Purchase Requisition Form and concludes with the receipt of purchased goods.

Responsibility

As with all procedures and other documentation contained in the Management System, it is the responsibility of all ministry area leaders to ensure the details of this process are known and followed by all paid staff and ministry area volunteers. The primary responsibility for this process rests with the Bookkeeper.

Procedure

(1) Complete and Submit Purchase Requisition Form

(1.1) To make a purchase the requester should complete a Purchase Requisition Form.

(1.2) The purchase requisition should be filled out completely by the requester including the requester’s name, department, recommended supplier (if known), account number (selected from the Chart of Accounts), need date, item number (if applicable), description, quantity, and unit price.

(1.3) The requester should include any notes and special instructions that will assist the reviewer(s) in making the approval decision. If needed the reason for the request should also be included in the notes and special instructions section of the form.

(1.4) Once the Purchase Requisition Form is completed and saved for the requester’s records, attach it to an e-mail and send it to the approver (department leader or Executive Pastor). Be sure to CC any other staff members that should be aware of the request.

(1.5) If the requester is a department leader, the completed purchase requisition should be e-mailed directly to the Executive Pastor for final approval.

(2) Review Purchase Requisition Form

(2.1) Every purchase requisition requires the review and approval of a department leader.

(2.2) The department leader should ensure the purchase requisition is completed correctly and that all requested purchases are appropriate and reasonable within established guidelines and departmental expense budgets.

(2.3) Once the department leader reviews the purchase requisition, their approval should be indicated by forwarding the e-mail to the Executive Pastor, including the word “Approved” in the body of the e-mail.

(2.4) The Executive Pastor will review the purchase requisition and indicate final approval by forwarding the e-mail to the Bookkeeper with the word “Approved” in the body of the e-mail. To ensure the requester is notified of the approval, the Executive Pastor will CC them on the final approval e-mail to the Bookkeeper.

(2.5) If the purchase requisition is denied, it will be returned to the requester by return e-mail, along with an explanation of why it was denied. The requester should resolve the issue and resubmit the purchase requisition if desired.

(3) Make Purchase

(3.1) The Finance Department will review the purchase requisition to ensure it is properly completed, including all necessary information as well as the proper approvals.

(3.2) If a purchase requisition is found to be improperly completed or does not include all necessary information, it will be returned to the requester for resolution.

(3.3) After verification of the purchase requisition, the order will be placed based on date needed and availability of funds.

(3.4) Once the purchase has been completed, the Bookkeeper will notify the requester that the purchase has been made and the approximate due date for the goods purchased.

(3.5) In some cases, the Bookkeeper may return the completed, approved purchase requisition to the requester to allow them to make the purchase. In this case, the requester should notify the Bookkeeper when the purchase is completed, including the approximate due date for the goods purchased.

(4) Receive Requested Materials

(4.1) When the Finance Department has received the goods purchased, they are delivered to the requester or other individual as deemed appropriate and/or indicated in the notes and special instructions section of the purchase requisition.

(4.2) The requester is responsible for letting the Finance Department know if there is a problem with the order and if any action needs to be taken.

Purchasing Operating Procedure