Who is authorized to purchase?

Purchasing goods and services on behalf of the corporation is a serious responsibility. Various roles have the authorization to purchase goods and services with a pre-established purchasing limit. This document clearly outlines our policy and procedures for buying. Buyers must not usurp these procedures and should closely adhere to them. Failure to do so will constitute a breach of policy and is likely to require disciplinary action. 

Only certain roles are eligible to purchase goods and services, and only approved employees are in those roles. A Director of Operations may add a layer of procedures for his or her division, provided these procedures do not conflict with this policy. 

A "purchasing limit" is the maximum amount a buyer can spend on a transaction. No purchasing is authorized that exceeds a Service center-approved Live Budget or Annual Budget.

Roles Who Purchase & Their Purchasing Limits

Role	Purchase Limit - Snow Markets	Purchase Limits - Non-Snow Markets	Authorized to Use Gas Card	Authorized to Use Purchasing Card	Authorized to Use Purchase Order Requisition System
Branch Administrator	$2,000	$1,000	No	Yes	Yes
Crew Leader	May only purchase fuel on a fuel card.		Yes	No	No
Field Supervisor	May purchase fuel on a fuel card, and every credit card transaction must be approved by a Production or Operations Manager.	May purchase fuel on a fuel card, and every credit card transaction must be approved by a Production or Operations Manager.	Yes	Only with approval for each transaction.	No
Production Manager	$7,500	$5,000	Yes	Yes	Yes
Operations Manager	$12,000	$7,500	Yes	Yes	Yes
Account Executive	May only use a credit card with authorization from the Director of Operations.	May only use a credit card with authorization from the Director of Operations.	Yes	Only with approval for each transaction or a written and approved budget for the current month.	No
Director of Operations	$20,000	$10,000	Yes	Yes	Yes

Although each role has a purchasing limit, the roles generally buy different types of goods and services. Operations management teams are focused on spending that supports the fulfillment of services, whereas the Home Office is focused on Capex, insurance products, professional services, etc. Below is a chart that will provide an example of who purchases what. It is not a comprehensive list but should serve as a guide.

Responsible Purchasing Party Examples

Home Office	Director of Operations	Operations Manager	Production Manager	Field Supervisor	Crew Leader	Branch Administrator
Truck	Marketing Event Spend	Shop Supplies	Project Materials	Fuel w/Card	Fuel w/Card	Office Supplies
Lawn Mower	Recruiting Ad Spend	Fleet Maintenance & Repair	Rental Equipment	Emergency Parts and Supplies with Purchasing Card		Shipping & Handling Services
Real Estate Lease	Meals & Entertainment	Fuel	Sub-Contractors
Legal Services	Training Costs	Uniforms	Parts for Equipment

Procedures for each type of purchasing tool

Gas Cards

The Operations Manager issues gas cards. The Operations Manager coordinates with the Compliance Manager at the Home Office to order, activate, or manage the spending limits of Gas cards. Gas cards should ONLY be issued if they are needed. It is preferred that all fueling is done at one of our fuel depots. 

Drivers are not required to turn in the receipts because the Compliance Manager has methods to reconcile purchases using internal security procedures. The Compliance Manager will follow the reconciliation procedure for Gas Card transactions. If the Compliance Manager identifies fraud or possible fraud, he must immediately take protective action and notify the responsible Director of Operations. 

Purchasing Cards

The Director of Operations issues Purchasing Cards or Visa Cards to his team members. He requests these from the Director of the Home Office. Although the DOO may request a credit limit, the limits are still set by the Home Office. Visa cards are NOT for the routine purchasing of goods and services. Purchase requisitions must be used for the majority of purchasing transactions. Team members may use their Visa credit cards for such things as travel expenses, meals if authorized, and unique purchases where charge accounts have not yet been set up with suppliers. 

Purchases are coded using the Expensify application. The buyer must upload all receipts. Expense reports for the prior week's purchases are due every Monday at 4:00 PM. 

It is unacceptable to usurp the purchase procedures by using credit cards to purchase materials, services, and equipment unless it is necessary. The operations team must work with the Home Office to establish charge accounts with suppliers so terms and conditions can be negotiated for our purchasing. 

Purchase Requisitions (PR)

Buyers must trigger a purchase requisition prior to purchasing goods and services. Purchase requisitions allow us to purchase according to spending limits and pre-code the purchase so that it can be easily reconciled when the vendor invoice arrives. Operators must use planning to ensure they have an authorized purchase order in time for production requirements. 

Purchase Orders (PO)

Once the appropriate accounting clerk receives a PR, they will process it during normal business hours and issue a PO. Normal business hours are from 8 AM - 5 PM Eastern Standard Time, and the average turnaround time is 1-2 hours. All buyers must ensure suppliers list the approved PO number on the face of their invoice so the invoice can be properly reconciled. 

Setting Up New Suppliers

Buyers must purchase goods and services from an approved vendor. You may request a new supplier/vendor using this form: APPROVED VENDORS.

• Attach a VENDOR ACCOUNT FORM
• Attach a W-9 FORM
• Attach a certificate of insurance if the Vendor is a Sub-Contractor  

Do not usurp the purchasing procedures!

Examples of usurping the purchasing procedure

1. Splitting up the total cost of a transaction over multiple purchase orders to evade the purchasing limit
2. Buying goods or services before issuing a purchase requisition (or relying on manual approval forms)
3. Utilization of the purchasing card instead of setting up charge accounts with suppliers
4. Manual approval forms are an exception to the workflow, not the norm 
5. Making purchases with personal credit and then seeking reimbursement

Professional Ethics Guidelines

Our suppliers must provide safe working conditions, treat workers with dignity and respect, and act fairly and ethically. As such, it would be inappropriate for any employee of East Coast Facilities, Inc. to accept gifts, whether they be objects, money, services, or entertainment, with a value greater than a professional lunch or dinner. Gifts of promotional items without significant value are routinely distributed by suppliers to their clients, and courtesy copies of professionally printed materials may be accepted. If you are offered or invited to share in hospitality, events, or experiences with a greater cost value than a professional working dinner or lunch, please receive approval from your Director. If you are a Director, receive prior approval from your Vice President or the President. 

Buyers, especially Directors, are responsible for procuring goods and services of the highest quality and best price, considering terms and conditions and therefore determining the best value. Favoritism, personal relationships, or simplicity to the buyer never determines purchasing awards. The Home Office will closely monitor supplier relationships and may prohibit a buyer or division from utilizing certain suppliers. 

Failure to observe our ethics guidelines will result in disciplinary action, including termination.