Policy: Approval of Purchases
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Policy: Approval of Purchases

PURPOSE:

1.To establish a system of approval limits for operating expenditures to ensure that the Agency is accountable for the funds it receives.

POLICY:

2. The Annual Service Plan, as approved by the Board of Governors, shall provide the guidelines for approved operating expenditures within a fiscal year.

3. All operating expenditures must be approved by an appropriate signing authority to ensure that the expenditure is within the approved Annual Service Plan and in accordance with the Broader Public Sector Procurement Directive.

PROCEDURE:

4. All operating expenditures are approved by the Board of Directors through the Annual Service Planning process. (see D 1.1 Budget Development and Accountability)

5. A schedule of Authorized Approval Limits for Operating Expenditures for Senior Leadership is submitted to the Finance Committee of the Board of Governors for approval. This schedule must be reviewed and updated on a timely basis to reflect changes in Senior Leadership and areas of responsibilities.

6. Once approval limits have been authorized, a Program or designated Assistant Director or CAO may delegate signing authority to any member of his/her staff. However, delegation of authority limits does not delegate the responsibility of the Program or designated Assistant Director. The Program or designated Assistant Director is responsible with coordination of spending within any area where signing authority has been delegated. The Program or designated Assistant Director will be held accountable for the financial results of the programs within his/her area of responsibility.

7. Notice of delegation of signing authorities must be forwarded to the CAO or designate in the Finance Department. The notice must include a signature specimen to place on file for reference to approved documents.

8. The Finance department will review all source documents for the appropriate level of authorization prior to processing in the financial records of the Agency.

9. The following Procurement Method Schedule prescribes what procurement method is to be followed based on the procurement value.

PROCUREMENT METHOD SCHEDULE
Goods and Non-Consulting Services
Petty Cash$0 up to $30
Purchase Order$30 up to $5,000. Orders between $1000 and $5,000 should be on approved Vendor of Record list.
Purchase Order with Invitational Competitive Procurement (minimum 3 Vendor of Record Suppliers invited to submit a bid)$5,000 up to but not including $100,000 Three quotes should be attached to Purchase Order
Open Competitive Process$100,000 or More

10. All consulting services must be competitively procured through an invitational or open competitive process irrespective of value (see Policy D 3.2).

11. All procurement procedures are subject to meeting specific funder contract requirements. Compliance with contract requirements overrides Lutherwood policies only when contract requirements are more stringent. It is the responsibility of the authorizing person to ensure the procurement requirements are adhered to for any funding agreement affected by authorized procurement.


Date Issued: May 1999
Date Revised: September 2015
Date Policy Reviewed by HR Committee of the Board: n/a
Next Review: September 2018