Field Purchase Orders - Procedure 008

 

1. PURPOSE

   To define, establish criteria for use, and provide instructions for processing field purchase orders (FPO).

    

2. SCOPE:

   This procedure applies City wide.

    

3. DEFINITION AND USE:

   An FPO is the same as any other purchase order in that when properly completed commits City funds for the procurement of goods/services necessary for City operations. There are several basic differences in the uses of FPOs that distinguishes them from other purchase orders.

    

   1. FPOs are primarily intended as a means of expediting the acquisition of goods/services with a total cost not to exceed $749.99. They are utilized for one time purchases or for non-recurring purchases that do not exceed $749.99 annually.

       

   2. FPOs are preprinted with a number in the top right-hand corner. This is the number by which all phases of the transaction are identified. With other purchase orders the number is assigned by Procurement at the time of purchase.

       

   3. FPOs are controlled documents and will be issued in blocks by the Procurement Division upon the request of the department designee.

       

4. RESPONSIBILITIES:

    

   1. It is the responsibility of the department designee to whom the FPOs are issued to ensure that they are properly used and that they are utilized for legitimate City acquisitions. It is also the responsibility of the department to ensure that the use of any FPO is properly recorded (as in a log book) and that proper distribution is made of the various copies. It will also be the department designee’s responsibility to ensure that the Procurement Division’s copy (pink) of the FPO is returned to the Procurement Division.

       

   2. It is the direct responsibility of the department designee to ensure that FPOs are not abused in any manner, i.e., "pyramided purchases" (using two or more FPOs to purchase an item costing more than $749.99).

       

   3. The Procurement Division has the responsibility of monitoring FPOs to alert using department heads of any abuses. Procurement will also monitor repetitive purchases which lend themselves to term contracts.

       

   4. For accounting and auditing purposes, it is best to avoid having one person sign all signature blocks. Having separate personnel approve, purchase and receive goods reduces the chance of error or improper conduct. All signature blocks are to be properly signed.

       

   5. Departments should only issue an FPO for items the vendor has in stock.

       

5. FIELD PURCHASE ORDERS ARE NOT TO BE USED FOR THE FOLLOWING:

    

   1. Partial shipments or back orders

       

   2. Inventory items/stock replenishment

       

   3. Fixed assets (equipment)

       

   4. Items that are on City or State Contracts

       

   5. Blanket purchase orders

       

   6. Shipping charges for purchase orders already issued

       

   7. Recurring purchases of like items/services that would exceed $749.99 annually (i.e. film developing).

       

6. COMPLETION OF A FIELD PURCHASE ORDER:

    

   1. The using department shall complete the items on the FPO as shown in Exhibit 008-A1 and distribute as follows:

       

      1. White copy to vendor.

          

      2. Canary, pink, and goldenrod copies retained by department designee until all invoices have been received.

          

   2. The using department shall complete the remaining items on the FPO as shown in Exhibit 008-A2 and distribute as follows:

       

      1. Canary copy to Finance Department upon receipt of final invoice. If there are multiple invoices for one FPO number, they should be submitted together for payment, but no later than 30 days from the date of the first invoice.

          

      2. Pink copy returned to Procurement Division upon receipt of final invoice.

          

      3. Goldenrod copy to be retained in department records.