Purchasing Authority Policy
***************************

The Purchasing Authority Policy defines who is authorized to make purchases on behalf of Maryland
Productions (MP) and Event Revolution (RV), and under what conditions. Clear purchasing controls
ensure responsible spending, prevent unauthorized commitments, and maintain accurate financial and
inventory records.

Only authorized individuals may commit company funds.


Purpose
=======

- Control company spending and financial risk.
- Define approval levels and purchasing limits.
- Prevent unauthorized or duplicate purchases.
- Ensure purchases align with operational and budgetary needs.
- Maintain accurate accounting and inventory tracking.


Who This Policy Applies To
==========================

This policy applies to:

- Employees (full-time and part-time)
- Freelancers and independent contractors
- Project Managers and Crew Leads
- Department Managers
- Administrative and accounting staff

Compliance with this policy is a condition of employment or engagement.


General Purchasing Rules
========================

- Only authorized individuals may make purchases on behalf of MP/RV.
- Purchases must be business-related, necessary, and reasonable.
- All purchases must comply with approved budgets and job scopes.
- Verbal approvals must be documented in writing.
- Personal funds should not be used unless explicitly approved.

Unauthorized purchases may not be reimbursed.


Authorized Purchasers
=====================

Authorization levels are defined by role and dollar amount and may include:

- Owners / Executives
- Department Managers
- Project Managers
- Designated Warehouse or Technical Leads
- Administrative staff

Specific approval limits are defined internally and may vary by company (MP vs RV).


Approval Thresholds
===================

Purchases may require approval based on:

- Dollar amount
- Category of purchase
- Job or project scope
- Capital vs consumable expense

Higher-value purchases require higher-level approval.


Pre-Approval Requirements
=========================

Pre-approval is required for:

- Capital equipment purchases
- New equipment categories or vendors
- Rentals from third parties
- Travel and lodging
- Non-standard or emergency purchases above set limits

Approval must be obtained **before** committing funds.


Purchasing Methods
==================

Approved purchasing methods may include:

- Company credit cards
- Approved vendor accounts
- Purchase orders
- Authorized online accounts

Personal accounts may not be used unless approved in advance.


Vendor Selection
================

- Use approved vendors whenever possible.
- New vendors must be approved before use.
- Pricing, quality, and reliability should be considered.
- Conflicts of interest must be disclosed.

Vendor relationships must serve company interests.


Documentation Requirements
==========================

All purchases must be documented with:

- Receipt or invoice
- Vendor name
- Date of purchase
- Amount
- Description of items
- Associated job or project

Documentation must be submitted promptly.


Inventory & Asset Tracking
==========================

- Capital equipment purchases must be:
  - Tagged with asset IDs
  - Entered into inventory systems (Current RMS or Flex)
- Consumables must be logged where required.
- Equipment must not be deployed until properly recorded.

Untracked assets create financial and operational risk.


Emergency Purchases
===================

- Emergency purchases may be made when required to protect safety or prevent job failure.
- Emergency purchases must be:
  - Reported immediately
  - Documented fully
  - Reviewed after the fact
- Abuse of emergency purchasing privileges is prohibited.

Emergencies do not eliminate accountability.


Returns & Credits
=================

- Return unused or incorrect items promptly.
- Obtain credits or refunds when applicable.
- Communicate returns to accounting or warehouse staff.

Timely returns protect budgets.


Prohibited Purchasing
=====================

The following are prohibited without explicit approval:

- Personal purchases using company funds
- Splitting purchases to avoid approval limits
- Purchases from unauthorized vendors
- Commitments beyond approved budgets
- Purchases that violate company policies or SOPs

Violations may result in disciplinary action.


Enforcement
===========

Violations of this policy may result in:

- Denial of reimbursement
- Revocation of purchasing privileges
- Disciplinary action
- Termination of employment or contract
- Legal action where appropriate

Severity depends on the nature and impact of the violation.


Responsibilities
================

Authorized Purchasers
---------------------

- Follow approval requirements.
- Make responsible purchasing decisions.
- Submit documentation promptly.

Managers
--------

- Approve purchases within authority.
- Monitor spending.
- Enforce policy compliance.

Administration
--------------

- Track expenditures.
- Maintain records.
- Audit purchasing activity.


Acknowledgement
===============

All personnel may be required to acknowledge this policy in writing. Failure to read or acknowledge
this policy does not exempt individuals from compliance.


Related Policies
================

- :doc:`expense_reimbursement`
- :doc:`conflict_of_interest`
- :doc:`equipment_responsibility`