Sample Code of Ethics
Ethical conduct in managing _______________’s purchasing activities is essential. Staff must be mindful that they represent the Board of Directors and share a professional trust with other staff and the general membership.
Staff shall avoid conflicts of interest in purchasing and other decisions.
SPECIFIC POLICIES PERTAINING TO FEDERAL GRANT AWARDS
1. Procurement Under Federal Awards
a. Procurement of goods and services whose costs are charged to federal awards received by _________are subject to all of the specific ___________ purchasing policies described earlier. In addition, procurements associated with Federal awards are subject to the following supplemental policies:
1. __________ shall avoid purchasing items that are not necessary for the performance of the activities required by a Federal award.
2. Where appropriate, an analysis shall be made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal government.
3. Documentation of the cost and price analysis associated with each procurement decision shall be retained in the procurement files pertaining to each Federal award.
4. For all procurements in excess of the threshold (currently $100,000) established by the Federal Awarding Agency, procurement records and files shall be maintained the include all of the following:
a. The basis for contractor selection.
b. Justification for lack of competition when competitive bids or offers are not obtained.
c. The basis for award cost or price.
5. _______________ shall make all procurement files available for inspection upon request by a Federal Awarding Agency, or local grantee.
2. Equipment and Furniture Purchased With Federal Funds
_______________ may occasionally purchase equipment and furniture that will be used exclusively on a program funded by a Federal agency. Equipment and furniture charged to Federal awards will be subject to certain additional policies as described in _________________’s federal award contracts.
3. Conflict of Interest
No employee, officer or agent of the grantee or subgrantee shall participate in selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when:
i. The employee, officer or agent,
ii. Any member of his immediate family,
iii. His or her partner, or
iv. An organization which employs or is about to employ, any of the above, has a financial or other interest in the firm selected for award. The grantee’s or subgrantee’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to subagreements. Grantee and subgrantee may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. To the extent permitted by State or local law or regulations, such standards of conduct will provide for penalties, sanctions or other disciplinary actions for violations of such standards by the grantee’s and subgrantee’s officers, employees, or agents, or by contractors or their agents. The awarding agency may in regulation provide additional prohibitions relative to real, apparent, or potential conflicts of interest.
OTHER SUGGESTED POLICIES:
The Purchasing Policies and Procedures outlined below provide a means of ensuring that _________________ adheres to ethical, responsible, and reasonable practices related to purchasing goods and services, and entering into agreements, contracts, or leases.
Responsibility for Purchasing
The Executive Director and Finance Director shall have the authority to initiate purchases on behalf of _______________ within the guidelines described in these policies. In addition, the Executive Director may delegate purchasing authority to other responsible individuals within the organization.
All requests for purchases shall be in accordance with the approved budget allocations and demonstrated need. The objectives of the purchase system are twofold:
a. to maintain adequate levels of needed materials, supplies & services for the efficient operation of ________________.
b. to ensure an adequate flow of documentation supporting each purchase.
Unauthorized purchases will either be returned to the supplier or will become the property and payment responsibility of the individual(s) who ordered them. ________________will not pay for unauthorized purchases or services.
The bookkeeper shall be responsible for processing invoices and check requests in accordance with Accounts Payable policies. The Executive Director and Finance Director have approval authority over all purchases and contractual commitments as defined in this policy. The Executive Director or Finance Director shall make the final determination on any proposed purchases where budgetary or other conditions may result in denial.
All documentation relating to the request order, purchase and payment shall be maintained for a minimum of three (3) years.
2. Non-Discrimination Policy
a. All vendors/contractors who are the recipients of ____________ funds, or who propose to perform any work or furnish any goods under agreements with ______________shall agree to these important principles:
1. Vendors/Contractors will not discriminate against any employee or applicant for employment because of race, religion, color, sexual orientation or national origin, except where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of the vendors/contractors.
2. Vendors/contractors agree to post in conspicuous place, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause. Notices, advertisement and solicitations placed in accordance with Federal law, rule or regulation shall be deemed sufficient for meeting the intent of this section.
Required Solicitation of Quotations from Vendors
a. Purchases in excess of $10,000 for labor, equipment, supplies or services purchased, leased or contracted for shall be made only after receiving, whenever possible, oral quotations from at least three (3) vendors. The initiator of the purchase should document the oral quotations including price, date and any other relevant information.
b. Expenditures exceeding $25,000 for labor, equipment, supplies or services purchased, leased or contracted for shall be made only after receiving whenever possible, written quotations from at least three (3) vendors. Specific selections shall be recommended, via the initiator of the contract, to the program/project manager for approval with written quotations attached for review. Recommendations shall be based on consideration of all applicable criteria as described under “Evaluation of Alternative Vendors” below.
c. Solicitations for goods and services (requests for proposals) should include all of the following:
1. A clear and accurate description of the technical requirements for the material, product or service to be procured.
2. Conditions which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals (see the next section entitled “Evaluation of Alternative Vendors” for required criteria)
3. Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient.
4. A description of the proper format, if any, in which proposals must be submitted.
d. Oral and written quotations will be considered valid for one year from the date the quotation, and may be used as the basis for similar purchases within that one year timeframe.
5. Evaluation of Alternative Vendors
a. When written proposals are solicited, alternative vendors shall be evaluated based on criteria which may include some or all of the following:
1. Adequacy of the proposed methodology of the vendor
2. Skill and experience of key personnel
3. Demonstrated company experience
4. Other technical specifications
5. Compliance with administrative requirements of the request for proposal (format, due date, etc.)
6. Vendor’s financial stability
7. Vendor’s demonstrated commitment to the nonprofit sector
8. Results of communications with references supplied by vendor
9. Ability/commitment to meeting time deadlines
10. Cost
11. Minority- or women-owned business status of vendor
12. The environmental health of the product or service being offered
13. The organization’s past experience working with the vendor
14. Other criteria specific to the proposal, as determined by the initiator of the purchase.
b. After a vendor has been selected and approved by the program/project manager, the final selection shall be approved by the Executive Director or Finance Director prior to entering into a contract.