Procurement Procedures:
3.4 - Limited Purchase Orders

PURPOSE

To define the Limited Purchase Order (LPO) and the limitations of usage.

POLICY

The Limited Purchase Order is delegated authority from the Purchasing Department that enables department personnel to order directly for specific commodities not exceeding $300 (including shipping and handling).

Limited Purchase Order authority is a privilege and may be rescinded by the Purchasing Department if proper procedures are not followed.

Use of multiple Limited Purchase Orders to circumvent the $300 limit is considered an irregular activity and may result in the loss of the Limited Purchase Order privilege.

PROCEDURE

To Obtain Limited Purchase Order Forms

  1. Submit a Requisition form to the Purchasing Department

  2. Purchasing will issue a block of 25 pre-numbered LPO's with a Control Log sheet

  3. Reorders must be requested on a Requisition and accompanied with a completed LPO Control Log before another block is issued.

Processing a Limited Purchase Order

  1. Type all information on the LPO (instructions are on the reverse of the form)

  2. Distribute copies

    • Original copy to vendor

    • Forward a copy to Accounts Payable

    • Keep one copy for the Department file

  3. Payment is made upon receipt of an invoice in Accounts Payable

Restrictions

The following items may not be purchased on an LPO, regardless of value:

Departmental Responsibilities

  1. Security of unused Limited Purchase Order forms

  2. Preparation of LPO and its proper use

  3. Maintenance of the LPO Control Log

  4. Appropriate distribution of LPO copies

  5. Follow-up with vendors on deliveries, returns, damages

  6. Maintenance of LPO files that are subject to audit by the Purchasing Department, the Office of Internal Audit or other authorized audit agency

  7. Forwarding invoices to Accounts Payable if they are mistakenly mailed to the department

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    Revised 3/02