Policy:Purchasing and disbursements procedures

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Revision as of 22:26, 24 November 2010 by VeroniqueKessler (talk | contribs)

WMF Purchasing and Disbursement Process

General

Best practices for purchasing in an organization requires that purchases be approved in advance, whether the purchase is made by credit card, phone, in person, via the internet, via staff's personal funds and then reimbursed, etc. Purchases also include the signing of contracts for equipment, services, etc.

Purchase Authorization Limits

In order to achieve balance between best practices and operating efficiency, staff members will be authorized to make purchases of up to US$250.00 without prior approval.

The following staff will be authorized to make purchases of up to US$5,000.00

  • Deputy Director
  • CFOO
  • Chief Legal Counsel
  • Chief Technology Officer

Purchase Approvals

Staff members not listed above who wish to make a purchase greater than $250 must seek approval in advance by emailing their supervisor. If the supervisor is not available, the staff person may seek the approval of the CFOO via email.

All purchases greater than $5,000 must be approved by: Your supervisor plus the ED or the Deputy Director plus the CFOO

Recurring Expenses/Contracts for Goods/Services

If you have a recurring expense such as an annual contract for services which will be paid monthly or quarterly, you can obtain authorization for the year by emailing the appropriate person(s) for approval and outlining in your email the beginning and ending period of the contract as well as the billing schedule. You can then attach the email to invoices throughout the year but you do not need to obtain separate approval each time.

Capital Expenditures

  • Capital expenditures are items over $700 with a useful life of more than 3 years.

Items listed on the approved annual capital expenditures budget which are $25,000 or less do not require approval again but the budget with the item(s) highlighted must be attached to the invoice.

  • Capital expenditures which are not on the approved list would be purchased following the normal purchasing guidelines. By definition, these items would be greater than $250 and would require pre-approval by email for those staff whose limit is $250.

Travel

In general, all travel shall be approved in advance, subject to the approval limits listed above. Staff can plan their travel details using the approved travel website (currently Expedia), but the actual payment check-out must be done by the Office Manager (for staff except the Executive Director and Deputy Director) or the Personal Assistant (Executive Director, Deputy Director and Board only). Exceptions to utilizing the approved travel website must be approved in writing via email to and from the CFOO. Reasons for exceptions would primarily be due to a compelling cost savings.

Please refer to the separate Travel Policy and Travel Approval Policy for more information and detailed guidelines.

Submission of Invoices/Expense Reports for Payment

When an invoice is submitted to Accounting for payment, it should be validated (via signature) by the person who initiated the purchase. If the purchase requires a pre-approval email per the guidelines above, the approval email must be attached to the invoice.

If a staff person is seeking reimbursement via an expense report, the employee and the employee's supervisor must sign the expense report regardless of amount and receipts must be attached. Reimbursement for mileage driven will be at the current rate allowed by the IRS. Staff must provide printed maps which show the beginning and ending address and resulting number of miles. The CFOO will sign the report of the Executive Director.

Credit card statements for corporate cards that are in individual's names will be paid directly by the individual. It is the individual's responsibility to submit an approved expense report with receipts to Accounting in order to be reimbursed for the expenses incurred on the card. As stated in the Credit Card Usage Policy, the card should only be used for legitimate Foundation purposes.

The Accountant will prepare checks for all invoices/expense reimbursements that are properly prepared/authorized. The prepared checks and supporting documentation will be given to the CFOO for review and signature. In the event that the CFOO is not available, the Executive Director is an authorized signer.