Attachment A_Purchasing and Procurement Policy - Approved by Res. 2024-100.pdf

Ute Mountain Ute Tribe Finance Department

PURCHASING AND PROCUREMENT POLICY

AND PROCESSES

ADOPTED BY RESOLUTION NO.: 2024-100 on July 23, 2024.

2 MAR. 2024

Procurement Process Description

The process governs the purchasing methods that optimize price, quality, value, and efficiency when purchasing goods and services. It is intended to govern for standard tribal governmental department purchases.

Purpose

The purpose of this process is to explain the steps for requisitioning and ordering goods and or services for departmental use. This process provides standardized and consistent methods by which to purchase the above mentioned goods and services.

Scope

These procedures apply to the purchase of all goods and services of all tribal departments.

(The Tribe’s independent enterprises, member service function and travel are excluded from these procedures).

1.0 Departmental Purchases

Departmental purchases will be separated into three main categories: Normal non material amount purchases, recurring purchases and special and major purchases.

1.1 Normal Non Material Amount Purchases

A. For normal non material amount purchases that will be ordered from an outside vendor, the department will have the following data entry options: enter the purchase order into the accounting system from their Departments’ workstation.

B. The following information is needed to enter the purchase order into the system:

vendor, department number, ship-to address, description of the goods or services, quantity, estimated cost, and account number to be charged either in the purchase order detail, invoice, in circumstances a quote can be acceptable from the vendor. Entering the information in the PO detail and attaching an invoice and other appropriate documentation will be the Department’s responsibility.

C. The Purchasing Department will review the PO information for completeness and accuracy. Budget availability and appropriate account coding will also be reviewed. It is the department’s responsibility to ensure that the budgeted funds are available. For those purchases that are greater than the available budget, the department will not be allowed to override the system limitation of the request.

The Department must request a budget adjustment in order to have the purchase order printed. Ultimately, budgetary compliance is the responsibility of the Department Director.

3 MAR. 2024

D. Purchase orders that are determined to have acceptable information will be printed within the following business day by the Purchasing Department, and placed in the Department’s Interdepartmental mailbox. For those that are not complete, the Purchasing Department will notify the requesting department of the deficiency within 2 Business Days. The Department is then responsible for correcting the information.

E. Once printed the Department is responsible for attaching an invoice, or other necessary documentation. The Department is responsible for determining the allowability with consideration to allocable, necessary, reasonable to the program’s or project’s performance, functions, services and activities. If Tribally funded, and after the Department’s signature approving the procurement for goods or services the PO must be submitted to the Finance Dept. for review and approval. If Grant funded, and after the Department’s signature approving the procurement for goods or services the PO must be submitted to the Grants & Contracts Department for review and approval.

F. Finance Department will review the PO for completeness and accuracy, with regards to budget availability, appropriate account number, appropriate signatures and invoice, and procurement methods are met.

Grants & Contracts Department will review for appropriate and accurate documentation, general allowability, budgetary compliance of approved project funding.

G. Signed purchase orders are returned to the Finance office window and will be forwarded to the Accounts Payable Department.for Payment Processing. Signed Purchase Orders for normal non material purchases are considered to be approved when a combination of the following have reviewed and approved the Purchase Order: , Department Signature, Accountants, Controller or CFO, and Grants & Contracts Department when applicable. CFO must sign all PO’s greater than $50,000. Approved PO’s will be distributed as follows

Purchase order copies:

White copy – retained by the Accounts Payable Department for the Tribe’s record.

Yellow copy – To purchasing for numeric file copy

Pink copy – To department for their records

H. Approved purchase orders create an encumbrance of funds against the budgeted line item. The encumbrance will be removed upon payment of the invoice and the expense then becomes actual.

4 MAR. 2024

1.2 Recurring Purchases

A. For recurring purchases that will be ordered from an outside vendor, the department will be encouraged to enter a monthly open purchase order into the accounting system or enter an annual open purchase order. Examples goods and services that may require open purchase orders include but not limited to, utility expenses, fleet repairs and maintenance, monthly supply purchases, and recurring professional services.

services, quantity, estimated monthly or annual cost, and account number to be charged in the purchase order detail. The open purchase order may be charged to a single account number or multiple account numbers.

C. The Purchasing Department will review the information for completeness and accuracy. Budget availability and appropriate account coding will also be reviewed. It is the department’s responsibility to ensure that the budgeted funds are available. For those purchases that are greater than the available budget, the department will not be allowed to override the system limitation of the request. The department must adjust the line item in order to have the purchase order printed. Ultimately, budgetary compliance is the responsibility of the Department Director.

D. Blanket purchase order requests that are complete in all aspects will be printed and placed in the Department’s interdepartmental mailbox within 2 business days. . For those that are not complete, the Purchasing Department will notify the requesting department of the deficiency within 2business day. The department is then responsible for correcting the deficiency.

E. Once printed and signed the Department must now sign the purchase order and obtain a grants signature if needed before returning to the finance office department window.

F. Signed purchase orders are returned to the finance office window for additional approval depending on materiality or purchasing director approval. The following individuals are able to sign to approve: Purchasing Director, Sr.

Accountants, or CFO. CFO must sign all PO’s greater than $50,000. Approved PO’s will be distributed as follows

Purchase order copies:

White copy – Retained by the Accounts Payable Department for the Tribe’s records Yellow copy – To accounts payable for Alpha Open PO file Pink copy – To department for their records

5 MAR. 2024

G. A copy of the approved blanket purchase order must be given to the vendor in order to initiate the purchase. This will usually be done by the department.

Vendors will be instructed to not process a purchase request without and approved purchase order. Monthly open PO’s are addressed in the next section.

1.3 Special and Major Purchases

A. Special and major purchases are those that do not fall into the categories of normal purchases or recurring purchases. These may be purchases where an outside vendor does not accept our purchase order. Specific examples include, but are not limited to, Wal-Mart purchases, City Market purchases, out-of-pocket purchases and major purchases such as vehicles and major contracts (greater than $1000.00). For these types of purchases, specific procedures must be followed outlined in Section 5. COMPETITIVE BIDS.

B. Wal-Mart Purchases:

Departments will input a Purchase Order with correct account numbers into the MOM system for the amount needed.

Purchasing Department will run the Purchase Order request during the business day and place the completed Purchase Order signed by the purchasing director in your mail box in the Mail Room.

Department will bring the Purchase Order with required signatures (Purchasing Director and Grants Office, if applicable) attached to a memorandum with a detailed listing of the items to be purchased to the Finance Office window. The person in charge at the Finance Office window will log the Purchase Order in and give it to Accounts Payable. Accounts Payable will have the departments sign out a “Gift Card” and provide them with the tax exempt information to be used at Wal-Mart. Accounts Payable will keep the original Purchase Order and memorandum. The “Gift Card” and receipts are to be returned to Accounts Payable before the end of the business day. Additional gift cards cannot be purchased with a gift card. At that time, Accounts Payable will return the Purchase Order to the department in order for the department to review the Purchase Order for correct account coding. Accounts Payable will give the department a copy of the final Purchase Order and receipts.

Accounts Payable will process the replenishment of the Gift Card for the amount of the receipts from the Purchase Order and memorandum that was created for this request.

6 MAR. 2024

C. City Market Purchases:

Procedures are the same as the Wal-Mart purchases described above

D. Out-of-Pocket Purchases:

Out-of-pocket purchases are usually urgent in nature and recommended to be

$200 or less. The Department ensures that budgeted funds are available. The purchaser buys the required goods at a retail location using their own cash, credit or debit. Within 25 business days, the purchaser requests a purchase order from supervisor into the accounting system with the vendor being themselves.

They enter a description of the goods, quantity, actual cost, and account number to be charged. The printed purchase order must be signed by the purchaser’s supervisor with proof of purchase documentation. The Department then forwards the purchase order to the Grants & Contracts Department, if applicable, for review and approval, if a Grants & Contracts review and approval is not required the purchase order must be submitted to the Finance Department for review and approval, and payment processing.

E. Vehicle Purchases:

The Fleet Department will coordinate all vehicle purchases in order to ensure the property system and vehicle registration and licensing all takes place the way it should and to obtain the necessary signatures from the Tribal Chairman on vendor contracts. Process the same as normal non material purchases only done by the Fleet Department.

F. Major Subcontract Purchases:

Each department will need to work with the Justice Department to utilize the tribal standard contract template. A contract provided by an outside contractor may be used with legal review and approval. At the direction of the Tribal Chairman, based on the legal review, contracts requiring any waiver of sovereign immunity are presented to the Tribal Council for approval by Tribal Resolution. Contracts with no waivers may be presented to the council for approval or executed by the chairman if part of a budget already approved by the council, and have been through the Tribe’s internal review process.

2.0 White Mesa Purchases

A. For all purchases that will be ordered from an outside vendor, a White Mesa Department will have the following options: (1) get a purchase requisition from the White Mesa Administration office. White Mesa Administration office will obtain department signoff on the requisition, attach appropriate documentation

7 MAR. 2024

for Administration approval (White Mesa Administrator). (2) Enter the purchase order into the accounting system from their workstation.

services, quantity, estimated cost, and account number to be charged either in the PO detail, invoice, in circumstances a quote can be acceptable from the vendor. Entering the information in the PO detail and attaching an invoice and other appropriate documentation will be the Department’s responsibility.

C. Administration can scan and email or fax the approved requisition to the

Purchasing Director, or deliver physically.

D. The Purchasing Department will review the information for completeness and accuracy. Budget availability and appropriate account coding will also be reviewed. It is the department’s responsibility to ensure that the budgeted funds are available. For those purchases that are greater than the available budget, the department will be notified within 2 business days. The department must adjust the line item for the purchase order to be printed. Ultimately, budgetary compliance is the responsibility of the Department Director.

E. Purchase orders that are complete in all aspects will be printed within 2 business days signed by the Purchasing Director and submitted to the Finance Department. For those that are not complete, the Purchasing Department will notify the requesting department of the deficiency within 2 business days. The department is then responsible for supplying or correcting the information.

F. Finance Department will forward for all proper signatures in order for the PO to be approved. For Purchase Order less than $10,000.00, a signature is required by any one of the following individuals: Controller, Senior Accountants, Chief Financial Officer. For Purchase Order greater than $10,000 to be approved, two signatures from any combination of the following: Controller, Senior Accountants, Chief Financial Officer. The Chief Financial Officer must sign all PO’s greater than $50,000. A Grants & Contracts Department signature is required when a PO utilizes grant funding.

G. A copy of the approved purchase order must be sent to the White Mesa

Administration. White Mesa Administration or a Department of White Mesa will be responsible for communicating with the selected vendor any status updates regarding purchases or purchase orders.

8 MAR. 2024

3.0 NECESSARY ITEMS TO BE PRESENTED TO ACCOUNTS PAYABLE IN

ORDER FOR PAYMENT PROCESSING

Purchase Order:

Open Purchase Orders in Accounts payable open PO file.

PO under $10,000 – Department Director or authorized fiscal person on the department request line

Grants approval if applicable Accountants, Controller or Chief Financial

Officer on the approved by line any one of the listed approvers

Purchase Order above $9,999.99 – As above plus second Finance authorizing signature

Purchase Order above $49,999.99 – As above and CFO mandatory signature

All “blanket” purchase orders (either monthly or yearly) will be created by the department and the appropriate signatures obtained. The original purchase order will be retained by the department and a copy of the signed purchase order will be attached to each invoice submitted to Accounts Payable i.e. utility bills, coffee service, etc.

Orders Over $10,000 will follow Section 5.0 COMPETITIVE BIDS multiple bids to document best price or sole source justification.

Invoice

All invoices will be mailed to either the Department or the accounts payable function.

Invoices not received by the accounts payable function will not be processed until submitted by the department. Original invoice (statements generally are not acceptable) matching purchase order request, in some cases a Quote may be substituted if approved by CFO. Handwritten invoices are not an acceptable form of invoice. The remittance advice must accompany the invoice so that it can be mailed with the Accounts Payable check to ensure proper credit to our account.

Accounts Payable Check Issue System

Purchase Orders with the original invoice attached must be presented at the vendor window in Finance where it will be logged in and given to Accounts Payable. Upon receipt, payment will be processed in Accounts Payable as follows:

Purchase Orders and invoices presented on Fridays will be processed and check issued on the following Monday.

Purchase Orders and invoices presented on Monday and Tuesday will be processed and check issued on the following Wednesday.

9 MAR. 2024

Purchase Orders and invoices presented on Wednesday and Thursday will be processed and check issued on the following Friday.

The Accounts Payable department will match invoices and purchase orders to checks printed and mail vendor checks the day checks are printed unless other arrangements are made with the Controller. All necessary remittance documentation must accompany the Purchase Order given to Accounts Payable in order for payment to be correctly submitted/credited by vendor.

A log will be kept by the Accounts Payable Department of all checks mailed with the date mailed recorded and a copy of the check retained by Accounts Payable.

Those departments that have approval to pick up their Accounts Payable checks will be notified when their checks are ready and given to the Finance Department front desk person to log and give to the appropriate departments.

A copy of the total amount of accounts payable checks run will be given to the Controller after each run is complete.

After each payable run the completed “package” (check stub, purchase order and invoice) will be filed in the accounts payable vendor files.

4.0 NEW VENDOR SETUP:

Departments should look up any vendor they are planning to use in the existing vendor file in the accounting system. If a department is planning to use a new vendor it is the department’s responsibility to get a blank W9 form to the vendor and turn it in to purchasing with the initial request to set up a new vendor. Since the Tribe receives federal funding all new vendors must be cleared against a federal debarment list, Departments will be responsible for obtaining the vendors Unique Entity Identifier (UEI). Prior to setting up a new vendor the purchasing director will compare the w9 for against the debarment list and set up the new vendor.

5.0 COMPETITIVE BIDS:

Departments must utilize one of the following three method of procurement for purchases of goods or services over $10,000.00.

A. A Sealed bid will be required for the goods or services over $250,000.00.

i. A complete, adequate, and realistic specification or purchase description is available;

ii. Two or more responsible bidders are willing and able to compete effectively for the business; and

10 MAR. 2024

iii. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

iv. Bids must be solicited from an adequate number of qualified sources, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised;

v. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;

vi. All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly;

vii. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of;

and

viii. Any or all bids may be rejected if there is a sound documented reason.

B. Request for Proposals will be for an individual good or service in excess of $10,000.00 but less than $250,000.00.

i. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Any response to publicized requests for proposals must be considered to the maximum extent practical;

ii. The Department must have a written method for conducting technical evaluations of the proposals received and making selections;

iii. Contracts must be awarded to the responsible offeror whose proposal is most advantageous to the Department, with price and other factors considered; and

iv. The Department may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby offeror's qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms that are a potential source to perform the proposed effort.

C. Noncompetitive procurement can occur when one or more of the following applies:

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(1) The acquisition of property or services, the aggregate dollar amount of which does not exceed $10,000.

(2) The item is available only from a single source;

(3) The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation;

(4) The Federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the Department; or

(5) After solicitation from 3 separate vendors, competition is determined inadequate.

Any individual item exceeding Tribal capitalization guidelines of $10,000 will require at least 3 competitive bids or sole source justification being generated and approved by the Executive Director and the CFO. Evaluation of the competitive bids and selection will normally be awarded to the low bidder unless other circumstances exist which justify awarding the bid to someone else. This would require a written memorandum similar to sole source justification also approved by the Executive Director and CFO.

6.0 CONFLICT OF INTEREST

A Department’s staff member, staff members, or agent may not participate in the selection of procurement if he or she has a conflict of interest. A conflict of interest would arise when a department’s staff member, staff members, or agent, staff member’s immediate family member, or an organization which employees the individual or individuals has a financial or other personal benefit.