SECTION
1. INTRODUCTION
Subsections
Purpose of the Procurement Manual
This manual describes the policies and procedures used by HUMANITARIAN ORGANIZATION OF SULIMANGHAR CULTURAL ASSOCIATION (HOSCA) to manage procurement procedures.
Disclaimer
The policies described in this manual are the general policies that have been adopted by (HOSCA). If (HOSCA) works with donors then in many cases would be agreed to follow specific policies and procedures related to the programs and projects that the NGO administers on its partners’ behalf. These specific policies and procedures will be outlined in the memorandum of understanding (“MOUs”) negotiated with (HOSCA)’s donors who are maintained by the Finance and Administration Department. Where there is a conflict between the policies and procedures described in this manual and those outlined in a specific MOU, those agreed upon in the MOU take precedence.
Maintenance of the Procurement Manual
This manual is to be updated on an annual basis to ensure that it accurately reflects the policies and procedures in use by (HOSCA) as the institution grows and evolves. The Administration/Finance Manager along with DIRECTOR GENERAL each in their separate roles has the overall responsibilities for ensuring that the manual is updated each year.
SECTION
2. INSTITUTIONAL OVERVIEW
Note Contains the same institutional overview content as the Administration & HR Manual. See 02-administration-and-hr-manual.json for full details.
SECTION
3. PROCUREMENT POLICY AND PROCEDURES
Subsections
Procurement Process
Achieving the most competitive prices and ensuring the quality of goods and services purchased are critical to making the most efficient use of (HOSCA)’s resources. It is also important that HOSCA comply with guidelines provided by donors regarding the use of their funds (if any).
Steps in the Procurement Process
Steps
- The template purchase request form from (HOSCA)’s administration department will be filled in by a requester, signs it by him/herself, then checked by line supervisor and Verified by Program and Review by A&FM, all purchase requisition will be signed by DIRECTOR GENERAL for final approval and then submits the form to the appropriate person in the Administration Department. The purchase request form contains the reason for the purchase, an estimated cost and a description of the item or service.
- The purchase request is compared to the department’s budget, and the Finance Department determines whether funds are available for the proposed purchase.
- Quotations are obtained for goods or services valued at equivalent USD 200 or more. To obtain quotations a request for quotation containing the description and quantity of the goods, as well as desired delivery time and place will be circulated to several vendors, and no less two. Quotations may be submitted by hand or by mail. Exceptions to this policy must be approved by (HOSCA)’s DIRECTOR GENERAL in advance.
- The Head of Administration prepares a comparison of the quotations. The appropriate procurement committee and the head of department requesting the purchase will review both the comparison document and the original quotations and select a vendor.
- The appropriate approvals are obtained. The committee or person empowered to approve the purchase varies based on the amount of the purchase.
- Once the items have been received or the service has been performed, the head of the department requesting the purchase signs a goods receiving form and submits it along with the invoice to the Finance Department.
- In order to process payment, it is strictly advised to make the bank transfer to the designated bank account of the vendor. In some circumstances crosses check is written and signed by two people who are determined by the size of the purchase. Cash payment can be made after verification of the Tazkira and ID card of the vendor, copies of the same must be kept with the invoices.
- The disbursement voucher is produced in order to record the transaction by the designated Finance Officer into a ledger that is kept in an Excel spreadsheet and is used to track the balances of petty cash and the various bank accounts maintained by (HOSCA). The payment is then entered into accounting system by the Finance Officer.
- If the payment is made through check; hence the check is remitted to the vendor and a receipt for the payment is obtained.
Documents filed together
- Purchase Request Form
- At least Three quotations (when a quotation process has been used)
- Comparison of quotations signed by committee or accept/decline form
- Goods receiving form
- Invoice
- Disbursement voucher
- Bank transfer document, or copy of check to vendor or receipt or stamped “paid” invoice
Note Regarding Purchases of Hardware and Software
Due to its highly technical nature, the officer Information Technology Resources must be involved in the procurement process for all hardware, software and other MIS-related purchases if available. All employee requests for such purchases must be submitted to the employee’s department head for his/her approval. The department head will then ask to create a purchase request and submit it to the Administration Department, which will determine whether the item is covered in the department’s budget. The purchase request will then be passed to the Officer Information Technology Resources, who will determine whether the requested item is needed and, if so, the best specifications for the requested item. The Officer Information Technology Resources will develop the request for quotations, including very detailed product specifications, and submit it to the Administration Department. The Procurement Department will obtain quotations and submit them to the Officer Information Technology Resources, who will prepare the comparison of quotations and present it to the appropriate approval committee. When the items have been purchased, the Officer Information Technology Resources will inspect them to ensure that the items match the requested specifications.
Procurement Committees
HOSCA convenes Procurement Committees as necessary to approve the procurement of goods and services. The procurement committee up to USD 1,000 will be chaired more than the stated amount the committee will be chaired by the DIRECTOR GENERAL. Goods or services valued at less than USD 100 and covered by HOSCA’s budget can be purchased based on the approval of the DIRECTOR GENERAL.
Committees
Value USD 100 to USD 300
Members The Requester, Head of Department, A&FM and DIRECTOR GENERAL
Value USD 301 to USD 1,000
Members The Requester, Head of Department, A&FM and DIRECTOR GENERAL
Value more than USD 1,000
Members The Requester, Head of Department, A&FM and DIRECTOR GENERAL
Purchase of Goods or Services Value Less than USD 200
Purchases of common items used in the day-to-day operations of HOSCA are funded through petty cash. An employee from the procurement department is assigned to handle petty cash. The employee describes the required purchase to the Finance Head who is designated to handle cash and specific amount for the same is provided. The Finance Head approves the purchase and provides a cash advance in the estimated amount of the purchase. The employee makes the purchase and brings back the goods, the receipt and any remaining cash. The Finance Head who is designated to handle cash enters the purchase into a ledger kept in an Excel spreadsheet, and returns any remaining cash to the safe. The receipt is then passed to the other Finance Head, who enters it into the accounting system and prepares a disbursement voucher. Petty cash is reconciled with accounting system at the end of each month. Surprise counts of petty cash are conducted at least once per month.
Purchases of Goods or Services of Value from (1USD -200 USD)
Details
Receiver of initial purchase requisition Administration & Finance Manager
Approval authority DIRECTOR GENERAL
Purchases of Goods or Services of Value from USD 201 up to USD 1000 and More
Details
Receiver of initial purchase requisition Head of Administration
Approval authority Procurement committee consisting of the Head of Finance, Head of Administration, IT Resources (for IT purchases only)
Quotation process The Head of Administration issues a request for quotation (“RFQ”) to at least three vendors. The Head Administration documents the comparison of quotations in writing, and the original quotations and comparison document are used by the procurement committee and the head of department requesting the purchase to select a vendor.
Above 1000 usd If more than USD 1000 the above process will be involved along with DIRECTOR GENERAL approval in all processes. If the procurement exceeds more than 1000USD, the payment will be done through cheque.
Summary of Purchase Processes
Table
Format PRF, GRN, Invoice, PV
Amount limit 1 USD to 200 USD
Committee No
Format PRF, RFQ, CBA, GRN, Invoice, PV
Amount limit 201 or More
Committee Committee of 3 employees, including DIRECTOR GENERAL
Gate Passes for goods
In general, staff members are not allowed to take inventory items outside of the office premises for use at home or for other purposes. However, when a staff member needs to use an inventory item outside of the office he/she will seek prior approval from his/her department head. The Officer Administration/Head of Admin shall issue a gate pass for the item prior to its removal from the premises and shall be responsible for ensuring that the employee has returned it. Exceptions to this policy are assets such as mobile phones and laptop computers assigned to specific staff members. The Head of Administration is responsible for keeping a list of assets that have been assigned to specific staff members. Upon a staff member’s departure from (HOSCA), all such items shall be returned to the Officer Administration.
Source: HOSCA organizational documents. Refer to the approved internal version where a current or signed copy is required.