Policy Number Effective Date

A2000 June 1, 2011

CORPORATE POLICY - PURCHASES of NON- RESALE GOODS I. POLICY STATEMENT

The acquisition of all goods and services are to be made through the purchasing department. All payments through the Accounts Payable Department will be made only if purchase orders have been issued with exceptions as noted in the Definition section. This policy excludes purchases of Capital assets. II. SCOPE This policy covers all purchases made from all operations. III. DEFINITION A) Purchase Orders Required For The Following Types Of Purchases: 1) Purchases for goods and services which require a purchase order are to include but are not limited to: * * * * * * Advertising Consultants Furniture & Fixtures Professional Services Supplies Seminars * * * * * * Agencies (Temps) Contract Services Leases (Equipment) Rentals (Equipment) Tools & Equipment Recruiting Fees

2) All purchases from the aforementioned list, which are under $250 dollars, do not require a purchase order, but must be approved by the department manager in accordance to the Grants of Authority. A) Approval for payment will only be recognized by Accounts Payable when the invoice is signed by the appropriate management level. B). HR) * Benefits * * * * * Expense Accounts / Reports * Insurance Payments * Real Estate Leases * Subscriptions / Publications * Utility Payments Freight Payments Payroll Accounts Relocation Expenses Tax Payments Customer Refund Payments * Employee Purchase Orders Not Required For The Following Types Of Purchases: * Bank Account (Transfers) * Confidential (Legal,

Authorization for all expenditures will fall within the guidelines of the grants of Authority.

C).

Process for Obtaining a Purchase Order: 1) Submit to the Purchase Requisition Desk (in Email) a completed Purchase Requisition. a) The requisitioned will complete the form (per attached instructions) and forward to their manager for approval. The manager will approve via Email by stating approved and with the following information: requisition # and Dollar amount. The manager will then forward to the Purchase Requisition Desk.

b) The requisition will be assigned a requisition number by the Manager of the Purchase Requisition Desk. A log will also be kept for all requisitions issued, to whom and on what date, date returned and date approved. 1) A status report on all open requisitions will go out bimonthly. 2) The Manager of the Purchase Requisition Desk will forward to the Controller all expense requisitions over $500. In addition, all Capital requisitions will be forwarded to the Controller by the Manager of the Purchase Requisition Desk. 3) All requisitions forwarded to the Controller will be printed out and physically signed and sent to purchasing. The Controller will also obtain all appropriate signatures. Once completed the Controller will also copy the Manager of the Purchase Requisition Desk so they can update their log. 4) d). Once Purchasing gets the properly approved requisition they will issue a purchase order. As a reminder, all approvals will be within the appropriate Corporate Grants of Authority Guidelines. IV. RESPONSIBILITY A) Requesters are responsible to submit Purchase Requisitions properly approved per the Grants of Authority to Purchasing. Purchasing will be responsible to review the requisitions for the appropriate authorization levels, as well as , logging the requisition. B) Purchasing will forward to Accounting (Controller) for approval all expense purchase requisitions over $ 500 dollars.

C) Purchasing will forward to Accounting (Controller) for approval all inventory purchases over $ 2,500 dollars. D) Accounts Payable is responsible to reject any invoice for a purchase not approved via a Purchase Order except as noted above.