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.