Purchasing

Contents

• State Purchasing Law (Summarized)
• District Purchasing Guidelines
• Purchasing Methods
• Adjustments to Purchase Orders
• Procurement Cards
• Procurement Card Authorization Form
• Revolving Funds Procedures - Checkbooks
• Bidding Opportunities
• Interlocal Agreements

The district has developed a variety of ways for you to make purchases. Regardless of the method used, all purchases must meet certain requirements.

State Purchasing Law (Summarized)

• Bid:
  When the total purchases of like items exceed $50,000 per fiscal year districtwide, the item must be bid. Items that are included in a bid must be purchased from the vendor awarded the bid, unless the district can document that the item was not available from the bid vendor at the time of purchase.

• Three Quotes:
  When the total purchases of like items exceed $15,000 per fiscal year districtwide, the purchaser or with the help of the buyer must document that price quotes were obtained from three different vendors before the purchase was made.

• Public Works Project:
  When the total cost of a building, improvement, repair, or other public works project exceeds $15,000 the work shall be awarded on a competitive bid process. If a small works roster (legally defined list of approved contractors) is maintained, projects up to $50,000 may be awarded to a contractor on the roster without a competitive bid on the basis of competitive verbal or written quotes.

• Sole Source:
  Only the Board of Directors can declare a vendor to be the "sole source" of an item or service regardless of cost. However, this option requires extensive documentation that the vendor is in fact the only supplier of the item or service, and is not easily nor frequently applied.

To assist you in knowing what items have been bid and must be purchased from a particular vendor, the Purchasing Department has created a Bid List, available in paper form from the Business Services Department.

District Purchasing Guidelines

The following guidelines apply to ALL purchases made with district funds, regardless of purchasing method:

Funds may be used to purchase goods and services which further the educational mission of the district. This includes supplies and materials, consultant services, and capital fixed assets for classrooms, buildings, programs, and administrative needs. Due to IRS requirements, all salary and benefit payments to active district employees must be made through the Payroll process, and may not be processed through the Purchasing Department.

You are encouraged to check the warehouse catalog before making a purchase from an outside vendor; the prices listed in the warehouse catalog include tax, and will usually be delivered to you within one business day of receipt of the order in Purchasing.

Funds may not be used to purchase:

1. Gifts (including flowers for individuals),
2. Personal items or services,
3. Donations to charities,
4. Alcoholic beverages or illegal substances, or
5. Items from district employees or relatives

Purchasing Methods

District staff may use one or a combination of purchasing methods, with limited restrictions on the two methods that actually pay for merchandise before the purchase has been officially approved (again, state law requires the district’s Purchasing Department to review and approve all purchases).

Available purchasing options:

• Submit manually-prepared paper requisitions to Purchasing.
• Prepare requisitions on the computer, which are electronically sent to Purchasing.
• Use a district-issued Procurement Card*.
• Use a district-issued Checkbook*.
• Requisition items from the district Warehouse.
• Pre-approved reimbursements through accounting.

* NOTE: these methods do not generate a district-issued purchase order, and may not be used to purchase capital fixed assets (equipment over $5,000)

Submit paper forms:

1. Send a completed Requisition (Form B-150) to Purchasing.

Prepare on-line requisitions:

1. Through the WISE system, complete the data entry of your requisition information. Purchasing will routinely check for completed requisitions, and pull them into the district file for processing.
2. After editing your requisition file, Purchasing will generate a computer-printed Purchase Order, send the original to the vendor, and send a copy to you.

Use a district-issued Procurement Card – General Fund Only: (limits: $2,500 per purchase, $10,000 per month)

1. Complete an application form and submit it to Purchasing. Purchasing will process your request with the bank, and send you the card when it is received.
2. Keep all receipts of items purchased with your card.
3. Reconcile your bank statement every week, and send all receipts and the reconciled statement to Purchasing.
4. Purchasing will submit a summarized payment voucher to Accounts Payable to have your expenditures recorded in the accounting system.

Use a district-issued Checkbook - General Fund Only: (limits: $250 per purchase, $1,000 per pay date)

To open a checking account:

1. Complete an application form and submit it to Purchasing. Purchasing will process your request with the bank, and you may pick up the checkbook when you have been trained in its use.
2. Keep all receipts, order forms, and requisitions of items purchased with your checkbook.
3. Reconcile your bank statement every month. Send all receipts and the reconciled statement to Purchasing.
4. To have your account replenished, send the Reimbursement Request Form to Purchasing.
5. Do not use district checkbook for B-140 Contract for Services.

Requisition items from the district Warehouse:

The district maintains a warehouse of frequently used items, usually purchased in bulk at favorable prices. You are encouraged to check the warehouse catalog before making a purchase from an outside vendor; the prices listed in the warehouse catalog include tax, and will usually be delivered to you within one business day of receipt of the order in Purchasing.

1. Send a manually prepared Request for Warehouse Stores (Form B-155) to Purchasing.

Adjustments to Purchase Orders

When you need to tell the vendor or the district information about a change to a processed PO, submit a completed Purchase Order Follow-up (Form B-130) to Purchasing.  This form may be used to report the following information related to a PO:

Please DO NOT send merchandise to the Business Office.  With the assistance of the Mail Room, you may be able to send the merchandise with a Shipping Requisition (Form B-145) to the ESC for return to the vendor, but that process is currently separate from the Purchase Order Adjustment process described above.

Procurement Cards

Procurement cards are bank debit cards, issued to individuals or programs in the school district, that may be used to pay for purchases without going through the process of issuing purchase orders. Expenditures are charged to the account code(s) identified by the cardholder on the weekly reconciliation of the card statement. Procurement cards are available to employees who have budgetary authority -- administrators or their designees. In addition, the District offers "travel only" procurement cards for employee use while in travel status, which can be checked out from the Accounts Payable department in Business Services (additional information is available in the Travel section of this manual).

Procurement cards have the following restrictions:

1. Cards are for General Fund use only.
2. Because the bank charges us for purchases on a weekly basis, statements must be reconciled each week, with all receipts attached and submitted to Purchasing.
3. The cards are limited to certain types of purchases:
   • Eligible: Supplies, Instructional Materials, Conference Registration, Meals (authorized cards only), Lodging (authorized cards only), Lodging (authorized cards only), Airfare (authorized cards only), General Fund only.
   • Ineligible: Wages, Consultant Services, Equipment over $5,000, Gifts/Dontations/Flowers, Alcoholic Beverages, Non-reimbursable personal expenses, Funds other than the General Fund. Any ineligible transactions are the responsibility of the cardholder.
4. Cards used to make ineligible purchases will be suspended for ninety (90) days, then cancelled if there is a second occurrence.

Instructions to the Cardholder

1. You are the only person authorized to use your card.
2. The card is not to be used for:
   1. Personal use or any non-district purpose
   2. Travel (except travel check-out cards or authorized travel cards
   3. Service Contracts
   4. Gifts or charitable contributions
   5. ASB Contributions
   6. Capital Projects purchases
   7. Equipment over $5,000 (use the requisition/purchase order process)
3. Keep all of your original itemized receipts, sales slips or packing slips in the envelope provided. We need to show if sales tax was paid and your itemized receipts will be the backup.
4. Use a copy of the order form for professional book orders, subscription orders, or conference registrations as your backup.
5. You will need the packing slip or invoice for orders placed over the telephone.
6. Immediately report any stolen or lost cards to Purchasing at extension 7067. If Purchasing is not available, call the 24-hour customer service number: 1-800-300-3084.
7. The cardholder Reconciliation Memo or Cardholder Activity report will be sent to you weekly for matching your receipts and completing the Transaction Summary Form.
   1. List only the last four (4) digits of the card number.
   2. The Procurement Card Transaction Summary has been populated with each school’s building account Code. If this is different than what you would like to use, please write or type in the correct account code to be charged. Remember your regular Building Account Code will be used if your statement is not returned on time for Reimbursement.
   3. The total Statement Summary should equal the Card report.
   4. Attach the receipts, sign the form, place in the envelope provided, and return to Purchasing the next day, or no later than Friday of the same week.

The bank will charge our account two (2) days after the statement date, so it is important that the receipts are turned in promptly for audit and entry into the accounting system. If you have any questions please feel free to call Purchasing at ext-7067. We want to make this as easy as possible for all of us to work with, so if you have any questions, suggestions, comments, etc., please pass them on to Purchasing.

Procurement Card Account Authorization Form

Revolving Fund Procedures - General Fund

Definitions

• Revolving Fund:
  The Revolving Fund is a separate bank checking account established by Board authorization for a school or department to use in making general fund small, or emergency payments.
• Revolving Fund Custodian:
  The Revolving Fund Custodian is the principal or department head who has responsibility for the Revolving Fund including authorizing disbursements, accounting and reconciliation of the Revolving Fund. The custodian will sign a responsibility statement for the Revolving Fund and will be responsible for it. Business Services will establish the Revolving Fund. All reimbursement warrants will be issued and deposited to the individual Revolving Fund checking account by Business Services.

Authorization of Revolving Funds - Board Approval

1. All new Revolving Funds and any changes in Revolving Fund amounts must be approved by the Board of Directors.
2. Annually, a resolution will be sent to the Board with requested changes in Revolving Funds.

Establishment of Revolving Funds - Bank Account

1. Once Board approval is obtained, the Accounting Supervisor will open the Revolving Fund checking account in the District's authorized bank.
2. All supplies needed for the Revolving Fund (e.g. check register, checks, etc.) will be provided by Business Services.

Revolving Fund Custodian

1. After receiving your request to open a Revolving Fund checking account, and upon approval, the Checkbook Manager will send to you a statement of responsibility to sign, for you to designate who will be responsible for this money. We must have on file the signature(s) of any person(s) who will be signing the checks. No unauthorized individual(s) shall be allowed to sign any check(s), to do so could constitute fraud.
2. Upon return of this responsibility statement, the Checkbook Manager will contact the District’s banking institution to establish your revolving fund checking account. This statement must include the proper signature(s) of user(s) on the bank’s checking account signature card.
3. The Checkbook Manager will issue to you the revolving fund check book, check register, and the necessary district forms to obtain reimbursement of your revolving fund checking account, in addition to walking you through all the necessary steps.

Use of Revolving Funds - Authorized Uses

1. The Revolving Fund may be used to write checks which do not exceed $250.00.
   1. No supplies and materials over $250.00.
   2. No travel reimbursements/mileage/parking.
   3. No payment prior to receipt of goods (except for professional books and subscriptions).
   4. No personal service contracts/consultant agreements/performance groups.
   5. No refunds of fines and/or fees.
   6. No minor repairs.
   7. No purchase of equipment.
   8. No gifts (i.e., balloons, flowers, staff treats, student prizes).
   9. No charitable contributions.
   10. No grants and donations.
   11. No employee discretionary funds.
   12. No Capital or ASB funds.

Prior Approval

1. All purchases from a Revolving Fund need to have an authorized signature approval from the manager or designee of the chargeable account code on Requisition Form B-150 prior to the check being written. All Reimbursement Forms B-105 require two (2) signatures and must be accompanied by original receipts.
2. A Revolving Fund check can only be issued for charges to a budget for which you are responsible.

Reimbursements

1. Reimbursement requests must be made no later than four (4) business days prior to any monthly paydate. (Check your email for special paydate day changes, regular paydates are the 10th and the 24th of each month.)
2. Compensating tax shall be charged to your budget for out-of-state vendors when sales tax was not included in your payment.
3. Reimbursements must be requested at least monthly, regardless of the number of checks written. (The only exception is if NO checks were written.)
4. Reimbursement requests must be turned in at the end of the school fiscal year in accordance with the date set by Business Services (August) to ensure expenditures are charged to the proper year.
5. All reimbursement requests must be accompanied by appropriate documentation for each disbursement, including original invoices or receipts for goods. Attach a copy of the professional book orders or professional subscription orders sent with your check.
6. Reimbursement warrants are deposited into the revolving checking bank account by Accounts Payable. Warrant stubs will be returned to you as confirmation of deposit. The reimbursement warrant is the only deposit allowed in your Revolving Fund. DO NOT deposit any other receipts or revenues received at your school or department.

Reconciliation

1. The following reconciliations are required MONTHLY:
   1. Reconcile bank statement to checkbook register.
   2. Reconcile authorized Revolving Fund amount to checkbook register/bank s statement.
2. Send a front and back copy of the monthly bank statement which indicates you have performed the monthly reconciliation to the Checkbook Manager.

Safeguarding - General Guidelines

1. The Revolving Fund checkbook and blank checks should be in a secured area/place that can be locked when not in use.
2. All voided Revolving Fund checks should be maintained on file. They should be marked VOID and the signature corner should be torn out.
3. Notify Checkbook Manager immediately of any changes in the authorized signer or custodian of your Revolving Fund.
4. Misuse of Revolving Funds may result in closure of the Revolving Fund Bank Account (certain misuse may constitute fraud).
5. Notify Purchasing immediately in the case of theft or loss of your Revolving Fund checkbook or check(s).