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Introduction

The purpose of this document is to establish clear and comprehensive purchasing rules for Guardian Recovery. These rules are designed to ensure that all procurement activities are conducted in an efficient, transparent, and cost-effective manner, in accordance with company policies and applicable laws. The Purchasing Department is the only authorized entity to make purchases on behalf of Guardian Recovery. This policy applies to all departments and employees within the organization.

General Principles

  1. Centralized Purchasing Authority: All purchasing activities must be conducted through the Purchasing Department to ensure consistency, control, and accountability. No other department or employee is authorized to make purchases independently.
  2. Compliance with Company Policies: All purchases must comply with Guardian Recovery’s policies, including budgetary constraints, ethical standards, and strategic objectives.
  3. Vendor Selection and Management: The Purchasing Department is responsible for selecting vendors, negotiating terms, and managing vendor relationships to ensure the best value for the company.

Purchasing Process

Requisition Submission:

  • Departments needing goods or services must submit a purchase requisition form to the Purchasing Department.
  • The initiating department must complete a purchase requisition form, through accessing the company’s catalog, detailing the required goods or services, and justification for the purchase.

Requisition Review and Approval:

  • The Purchasing Department will review the requisition for completeness, accuracy, and compliance with company policies.
  • Approval must be obtained from the relevant department head for all purchases exceeding $200.
  • For purchases exceeding $500, at least three written quotations must be obtained from different suppliers to ensure competitive pricing.

Vendor Selection:

  • The Purchasing Department will solicit bids or proposals from multiple vendors, when applicable, to ensure competitive pricing.
  • Vendor selection will be based on criteria such as price, quality, delivery time, and past performance.

Purchase Order Issuance:

  • Once a vendor is selected, the Purchasing Department will issue an order to the vendor.
  • The order must clearly state the terms and conditions, including delivery dates, payment terms, and any other relevant details.

 

Receiving and Inspection

Receiving Goods/Services:

  • All deliveries must be directed to the designated receiving area. The Receiving Department will inspect deliveries for accuracy and condition.
  • Any discrepancies or damages must be reported immediately to the Purchasing Department.

Verification:

  • The Receiving Department will match the received items against the purchase order and delivery documents.
  • Verified deliveries will be documented, and the relevant department will be notified for further action.

Invoice Processing and Payment

Invoice Approval:

  • Invoices must be sent directly to the Accounts Payable department.
  • The Accounts Payable department will match invoices with purchase orders and receiving reports to ensure accuracy.
  • Payment Authorization:
  • Payments will only be authorized after verification of the invoice against the order and receipt of goods/services by the responsible requisitioner.
  • The CFO must approve all payments exceeding $5,000.

Exceptions and Emergency Purchases

Exceptions:

  • Any deviation from the standard purchasing process must be justified in writing and approved by the CFO.
  • Emergency purchases, where immediate procurement is necessary to prevent significant operational disruptions, must be approved by the CEO or CFO.

Documentation and Reporting:

  • All exceptions and emergency purchases must be documented and reported to the Board of Directors on a quarterly basis.

Ethics and Compliance

Conflict of Interest:

  • Employees involved in the purchasing process must avoid any conflict of interest, whether actual or perceived.
  • Any potential conflicts must be disclosed to the Purchasing Department and resolved appropriately.

Confidentiality:

  • All purchasing activities, including vendor negotiations and pricing information, must be kept confidential.