Policy - Purchase Order and Vendor Approval

Section: Human Resource Policies
Policy Owner: Ignition633 Ministries Human Resources
Policy Name: Segregation of Duties Policy
Origination Date: April 2025

Purchase Order and Vendor Approval Policy

Purpose:
The Purchase Order and Vendor Approval Policy establishes procedures for selecting, approving, and managing vendor relationships and purchase transactions. This policy ensures that all purchases are properly authorized and documented while maintaining vendor quality standards. The policy promotes fair vendor selection and helps prevent unauthorized or fraudulent purchases.

Scope:
This policy applies to all purchases made on behalf of 633Donor Solutions and all employees involved in purchasing activities. It covers vendor selection criteria, purchase order requirements, and approval processes for different purchase thresholds. The policy includes guidelines for vendor evaluation and documentation requirements.

Policy:

Vendor Categories and Preferred Suppliers:
Primary vendors like Amazon, Staples, and other major suppliers must be evaluated annually based on pricing consistency, delivery reliability, and return policy flexibility before renewal of preferred vendor status. Company account credentials for online vendor platforms must be controlled and monitored with appropriate user permissions based on purchasing authority levels. Departmental managers must review and approve the use of specialty vendors when standard suppliers cannot meet specific product requirements or timelines. Business accounts with volume discounts must be established with frequently used vendors to maximize cost savings and streamline the ordering process.

Purchase Authorization Procedures:
Routine office supply purchases under $500 from approved vendors may be processed by department administrators with monthly spending reports submitted to Finance. Non-routine purchases between $500-$2,500 require department manager approval with documentation of business purpose and alignment with budgetary allocations. Equipment or technology purchases between $2,500-$10,000 require director-level approval and IT department review when applicable. Any purchase exceeding $10,000 requires formal quotes from multiple vendors when available and must receive executive approval with comparison documentation before processing.

Order Processing and Receiving:
All online orders must be placed using company accounts rather than personal accounts with reimbursement to maintain proper expenditure tracking. Receipts and order confirmations must be saved electronically with notation of the associated purchase order number and business purpose. Delivered items must be inspected upon arrival with documentation of any damaged or missing items and prompt initiation of return procedures when necessary. Packing slips must be reconciled with original purchase orders and forwarded to Accounts Payable within three business days of receipt to facilitate timely payment processing.

Vendor Account Management:
Company credit cards used for vendor purchases must be reconciled monthly with itemized receipts matched to each transaction and appropriate approvals documented. Vendor account access credentials must be updated immediately when personnel changes occur in positions with purchasing authority. Automated payment methods must be reviewed quarterly to ensure they remain active only for current, approved vendors with proper authorization levels. Annual vendor spending analysis must be conducted to identify opportunities for consolidation, volume discounts, or renegotiation of terms with major suppliers.

This policy will be reviewed annually and is subject to change. Any changes will be communicated to all employees promptly.
For any questions or further assistance regarding this policy, employees should contact the HR department at hr@ignition633.org.