PURPOSE

For the purposes of this policy, HPZ staff are hourly-paid employees, managers are Carol Miron, Marc Miron, and Samantha Rolfe, and the director is John Miron. Within the terms specified below, employees, manager, and director may act as agents to incur financial obligations on behalf of HPZ Crusher Services Inc (the corporation).

PURCHASE COMMITMENTS

This policy covers purchase commitments (e.g., Purchase Orders), corporate credit card use, and expense claims. In making each purchase commitment or credit card use, or seeking expense claims, the HPZ agent warrants the following:

1. All purchase commitments, all credit card use, and all expense claims sought, or on behalf of, HPZ Crusher Services Inc are in furtherance of the profitability of the corporation and/or according to stated corporation policy. No other purchase commitments or credit card use are to be made or authorized and no other expenses reimbursed on behalf of the corporation.
   

2. In making the purchase commitment, credit card use, or incurring the expense claim, the HPZ agent has made a reasonable effort to seek out the lowest or best price possible.
   

3. The supplier has negotiated the agreement in accordance with fair competition principles and observed the highest level of diligence. The supplier has not concluded any formal or informal contracts or agreements intended to prevent or restrict competition, or result in the prevention or restriction of competition, or contracts or agreements that breach applicable laws relating to competition or fair trade.
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4. The supplier has not engaged in, or caused the corporation to engage in, any form of corrupt practices. The supplier has not offered anything of value to improperly influence any corporation employee. The supplier has avoided all potential conflicts of interest while engaged with the corporation and notified the corporation of any potential conflicts of interest that cannot be avoided. The supplier has engaged in the corporation’s supplier due diligence process, with a commitment to transparency, quality and speed.
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5. Except where permitted by stated corporation policy, HPZ agents may not themselves make a purchase commitment or seek an expense claim from which they also will personally benefit, either directly or indirectly. This includes kickbacks or any other pecuniary or nonpecuniary benefit accruing to the staff, managers, and director or to any related person.

INVOICES and RECEIPTS

For every purchase to be paid directly by the corporation, the corporation requires the supplier’s invoice. For every purchase on a corporate credit card and every expense claim, the corporation requires an itemized receipt from the supplier.

PURCHASE ORDER FORM

The corporation uses a Purchase Order Form to record large purchase commitments, and a Purchase Order Number to identify all purchase commitments (large or small). Each purchase commitment must be authorized by a manager or director. Where feasible, credit card use should be in conjunction with a Purchase Order Number.

CATEGORIES OF PURCHASES

The corporation divvies up purchase commitments and expense claims as follows: (a) Purchases of inputs used directly in production, (b) Machinery and equipment, (c) Shop expense, repairs and maintenance, and office expense, (d) Prepaid transportation, (e) Communications, (f) Travel and (g) Other expenses.
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1. Inputs used regularly and directly in production. Items and freight charges are normally obtained by Purchase Order and billed directly to the corporation.
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   • These purchases require an HPZ Purchase Order Number, with details posted to the “Vendor POs” Signal group.
     

   • For purchases of $3000 or more, an HPZ Purchase Order Form must be sent to the Vendor and cc'd to office@hpzcrusher.com. HPZ managers can prepare the PO Form themselves OR delegate this task to Sam/Carol by telling the Vendor and Sam/Carol:

     
     "I will ask our Operations Manager/Chief of Operations to draw up a Purchase Order on this basis. She will get back to you shortly."
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   • Prior authorization is required from the director if the purchase subtotal is greater than $50,000 OR a deposit is required OR this is a new vendor.

   • For small purchases, under $3,000 per purchase, from existing vendors or retailers, a Purchase Order Form is not required: e.g., Pallet Recyclers, Spectrum Supply, WLT

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2. Machinery and equipment. These purchase commitments normally are to be obtained by Purchase Order and billed directly to the corporation.
   

3. Shop expense, repairs and maintenance, and office expense. Where these purchase commitments are large, they are normally are to be obtained by Purchase Order and billed directly to the corporation. For other or small purchase commitments, expense claim or corporate credit card use is normally appropriate. HPZ managers have the authority to purchase materials required for shop and office operations using a corporation credit card. Each manager has a maximum accumulated limit of $20,000 per fiscal year (October 1st through September 30th).
   

4. Prepaid transportation of HPZ product to customers. These purchases require reference to the shipment’s HPZ Sales Order Number and billed directly to the corporation. Where this is infeasible, expense claim or corporate credit card use is appropriate.
   

5. Communications. Phone and internet services. Normally, these purchases require an ongoing service contract. Initiation of new services are to be approved in advance on a one-up basis.
   

6. Travel. Travel expense includes use of personal automobile, food, and accommodation outside of regular HPZ operations. Limits on credit card use and expense claim for this purpose are to be approved in advance on a one-up basis (by the person to whom the HPZ agent reports) and are subject to CRA guidelines. Please refer to the Travel Expense Guidelines and Requirements section for more details.
   

7. Other expenses. Expenses that do not match any of the previous category descriptions must be approved in advance on a one-up basis.
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8. Marc Miron is also authorized to make small purchases of equipment and materials for Research & Development, up to $5,000 each, up to an accumulated limit of $25,000 in a fiscal year. A Purchase Order Form is NOT required

EXPENSE CLAIMS

An expense claim is used for small purchases (normally not exceeding $1,000 per item) on behalf of the corporation, undertaken by HPZ agents. Most purchases should be made by Purchase Order or using a corporate credit card, however there may be situations where this is not feasible.

1. An expense claim is subject to prior approval on a one-up basis. Normally, this includes purchases from retailers.
   

2. Purchases charged to a corporate credit card is a pre-approved expense, subject to the guidelines and exceptions stated in this policy.
   

3. HPZ’s safety footwear allowance is a pre-approved expense for HPZ staff, managers and director. For more information, refer to the Safety Footwear Procedure and the Safety Footwear Allowance Claim Form.
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4. HPZ’s mobile device allowance is a pre-approved expense for HPZ managers and director with an HPZ mobile service plan. Refer to the Mobile Service Plans and Devices Policy for more details

CORPORATE CREDIT CARDS

The corporation maintains corporate credit cards for managers and director. The user can use these cards to incur appropriate purchase commitments on behalf of the corporation. Carol Miron is authorized to use the corporate credit card to pay regular bills (e.g., utilities, cellphones, trash removal)​ 

CREDIT CARD PURCHASES

Purchases charged to a corporate credit card must comply with the following guidelines.

1. In every case, the user is responsible for ensuring an itemized receipt with taxes paid is provided. The user is to compensate the corporation for any unapproved use. Receipts for all credit card purchases should normally be submitted (online using the HPZ Expense Claim Form) within one month of the purchase date.
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2. Credit card purchases that must be approved by Carol prior to payment are:

   1. Prepaid freight for shipping HPZ product to customers

   2. Purchases totalling $2,000 or more, taxes included

   3. Subscription of consumable purchases, such as Amazon subscription for monthly paper towels

   4. Contract or subscription for services
      

3. Credit card purchases that do not require prior authorization, under $2,000, taxes included.

   1. Consumable materials needed for day-to-day shop or office operations purchased occasionally, such as disposable gloves, lumber, toilet paper, safety goggles, pens.

   2. Equipment or appliances needed for more efficient shop or office operations, such as a drill or printer.

   3. Freight charges for shipping of materials or equipment to HPZ.
      

4. Prohibited expenses

   1. Shop or office expenses purchased with cash or charged to a personal debit or credit card without one-up prior approval. HPZ managers will not normally be reimbursed for these expenses.

   2. Purchases for personal use.

   3. Food or drink, except for bulk coffee supplies for office use.​

RESOURCES

• Purchase Order Form. Speak with Sam or Carol for more information.

• HPZ Expense Claim Form

• HPZ Employee Handbook