Elementary School District #39
Purchasing Policies and Procedures Handbook
(Business office needs this on file every year. Required before purchases can be made)
All school districts in Arizona must follow the policies and procedures stated in the Uniform System of Financial Records for Arizona School Districts (USFR). The Department of Education and the Office of the Auditor General mandate this system to be used in all aspects of school district budgeting, accounting, and financial reporting. This system contains several different account types. The accounts most often used by the general body of the district will be briefly described here.
The USFR defines these accounts as: “The general fund accounts for all resources used to finance district maintenance and operation except those required to be accounted for in other funds.” The Maintenance and Operation budget is split into many different sections to pay for the needed services and equipment used to keep a school district running efficiently. Among the sections are regular education, special education, pupil transportation, and capital projects to improve school sites. All departments have an extensive list of account codes assigned to their area to cover their equipment, supply, and other miscellaneous needs. These account codes are generally known as “REVOLVING” accounts.
These accounts are for the revenues and expenditures of the money collected in support of extracurricular activities in the district. Taxpayers can donate money to a specific school site or activity and they receive a credit on their annual taxes by the government. The Business Services Office deposits the funds and advises the school administrator of the amount received. The school administrators are responsible for disbursing the funds throughout their site and keeping track of the current available balance for each specific account code. These account codes are generally referred to as “TAX CREDIT” accounts. The funds remaining in these accounts at the end of the fiscal year do rollover to the next fiscal year. ** Tax credit donations are allotted to a specific activity and/or site and CANNOT be used for any purpose other than the one originally chosen. **
The “GIFTS AND DONATIONS” accounts are similar to the tax credit accounts. Funds and donated items are given to a specific site, activity, or student group. As with the tax credit accounts, the Business Services Office deposits the funds and relays the amount to the appropriate administrator to track and disburse. These account balances also rollover to the next fiscal year.
The Business Service Office handles the “SPECIAL ACCOUNTS”. These accounts include Auxiliary Operation Accounts, Student Activities Accounts, and any revolving account code expenditure that requires a check issued immediately. The Business Services Office is responsible for the maintenance of accurate records and communication to administrators and sponsors regarding the account balances and activities. They are also responsible for processing the paperwork for any authorized expenditures from these accounts.
Auxiliary Operation Accounts (525)
These accounts are used to maintain the revenues and expenditures collected by school bookstores and athletic activities as approved by the district’s governing board. The funds generally consist of deposits for use of district supplies such as textbooks or locks, course fees for elective courses and/or activity, course fees for fine art and vocational classes, and money generated by the school’s athletic events. The first three numbers of all of the “AUXILIARY” account codes are “525”.
Student Activities Accounts (850)
The USFR definition is as follows: “Student Activities are defined in the Arizona Revised Statutes (A.R.S.) §15-1121 as student clubs, organizations, school plays, or any other student entertainment. Student Activities monies are raised by the efforts of students with the approval of the governing board.” The first three numbers of all the “STUDENT ACTIVITIES” account codes are “850”. ** See Section Three for complete details on these accounts.
Specified Revolving Account Purchases
The Business Services Office will not issue payment for services and/or merchandise until they have been received. The Director of Business Services must approve any exceptions to this policy. The Business Services Office handles these approved exceptions for a revolving account code. The Accounts Payable clerk handles all other revolving account code expenditures.
Credit Card Purchases
The issuance and use of a credit card is to provide an alternative purchasing method when traditional payment/procurement methods are not feasible.
A credit card may be used to facilitate the payment of travel expenses such as hotels and registrations for training and education while conducting School business, including fuel for School-owned vehicles. An approved purchase order must be in place prior to any credit card charges being incurred.
Walmart require an account card be used for purchases with a purchase order. These cards are assigned on a first come, first serve basis by business department personnel to District staff as authorized by an approved PO listing the name of the staff requesting the credit card.
All cards must be signed out and in on the same day by the same staff member. The approved staff member will be required to have the PO at time of requesting the credit card from business department personnel, sign the credit card out, make approved purchases, and return credit card, sign the card in, and turn in receipt for purchases with signature, date, and PO #. All unauthorized purchases will be the user’s personal responsibility.
Receipts for the purchase of gas or fuel must be signed by user, have date, and have vehicle ID#.
District/school credit cards may not be used for personal expenditures.
** For an informational slide show on special accounts click here
** For the special accounts Flowchart click here
The procurement process mandated by the Department of Education and Auditor General is extremely regulated and must be strictly adhered to. Procurements made by a school district must have complete, detailed paperwork to show how the district funds are used. There are several people involved in the procurement process, and each has their own set of essential responsibilities. This section goes over each employee‘s role and the entire procurement process in detail.
The purchasing process begins with a requisition. Properly completing a requisition will help the buying team prepare a purchase order in a timely manner
Generally, the requisition process involves the following steps:
.A requisition is required for every purchase regardless of the source of funds. If you expect a CESD check to be issued to the vendor, you must have a requisition in the system.
Furthermore, the requisition must be approved at all levels, including the Business Manager, and a purchase order must be prepared and approved. You may, of course, contact the intended vendor to obtain price and delivery information, but, DO NOT REQUEST DELIVERY until a purchase order has been issued.
There are many contracts being utilized by the district. (See Vendor Awards under Vendors in the Visions Program) Contract pricing has been negotiated by the various Cooperatives.
$10,000 - $99,999.99
Requires 3 written quotes
After-The-Fact purchase orders are purchase orders that are issued after the needed merchandise/service has been received or contracted for. After-The-Fact purchase orders are not permitted. Employees who place orders without a valid CESD order are subject to disciplinary action.
A purchase order must be issued PRIOR to any expenditure being made with district funds. A requisition is submitted through the Visions Accounting Program to start the purchase order process for all funds.
See Section Three for Student Activities expenditure requirements and procedures.
**PLEASE NOTE: The Business Services Office requires three to five business days to process expenditure paperwork after it has been received by the Accounts Payable. **
REQUISITIONS MUST CONTAIN THE FOLLOWING:
Required documentation for travel includes:
DETAILED PRODUCT DESCRIPTION
A description of what is intended for purchase throughout the year
The Definition of a Blanket or Open Purchase order (not to be used for capital item purchases):
A purchase order for a group of items, services or construction.
“NOT TO EXCEED” blanket/open purchase orders may not be increased without the approval of the site and the Business Manager. All blanket/open purchase orders require a specified time frame or expiration date not to exceed three months.
The requestor is responsible for calculating the subtotal and grand total for each requisition submitted.
When purchase totals exceed $9,999.99 the District procurement procedures apply:
$10,000 - $99,999.99 Requires 3 written quotes
PLEASE INCLUDE SHIPPING/HANDLING AND TAX IF APPLICABLE
Once a purchase order is prepared, it is generally faxed by the Accounting Office to the vendor unless instructed otherwise by the site on the requisition. The site may elect to have the vendor copy of the purchase order sent directly to the site for distribution by the requestor.
Procedure for Requisition Template
The originator must complete the excel requisition template located on the website (in all CAPS) in its entirety. This includes the Fund and Sub Fund in order for your site administrative assistant to properly code the expenditure.
FOLLOWING INFORMATION IS REQUIRED AND MUST BE TYPED IN ALL CAPS TO PROCESS.
Procurement requirements are: $10,000 - $99,999.99 - Requires 3 written quotes
(Procurement requirement limits are based on District wide totals – not site totals.)
If quotes are required, please send them as an attachment with the template or send to Business Office.
Email the template and all required paperwork as attachments to the business office.
Attachments required for:
Student Activity Accounts - Minutes must be submitted with requisition.
Tax Credit Accounts - Tax Credit Eligibility and Justification Form (located on website)
If approved by the Director of Business Services, the requisition template will be processed into a Purchase Order. The Business Services Department will then submit the Purchase Order to the vendors as required.
Please remember that you cannot commit funds or make any expenditure until a Purchase Order has been processed and approved. After-The-Fact purchase orders are purchase orders that are issued after the selected merchandise/service has been received or contracted for. After-The-Fact purchase orders are not permitted. Making purchases prior to a Purchase Order is a violation of the Arizona Revised Statutes, Article 10 and the Continental Elementary School District #39 policy.
As an overview – the requisition process involves the following steps:
Consultant Purchase Orders
All vendors, including consultants, must have a current IRS W9 form on file with the Accounting Office BEFORE a purchase order may be issued. New vendors must be added to our system and a W-9 must be requested. A vendor application form is available on the Website under Business Office forms. You can also contact the Accounting Office with questions regarding this requirement.
If you do not have a purchase order on or before the day a consultant is scheduled to begin services, please contact the Accounting Office immediately so that we may attempt to expedite your purchase order.
PROCEDURES WHEN PURCHASE ORDERS ARE PROCESSED
THINGS TO REMEMBER ABOUT ALL PURCHASE ORDERS
Each purchase requisition must be properly coded and approved by the principal or department head and funds must be available.
Upon receipt of a requisition, the Accounting Office will review it to ensure proper completion, including any required approvals and documentation. It is the responsibility of the principal or department head to give specific descriptions and accurate prices of the items whenever possible.
The Accounting Office will process the requisition and assign a purchase order number. Any further reference to the requisition will then be made by purchase order number. If, for any reason, the requisition is not approved, it will go back to the originator to complete or revise.
Dollar Limits Requiring Quotes & Bids
All staff involved in purchasing items and services for the district should be aware of the dollar limits and how they affect required competition. These requirements are established by the State Board of Education and the Auditor General and apply to all School Districts in Arizona.
Cumulative purchases for a specific vendor across the district for the fiscal year may be made without official quotes up to $9,999 (including ALL costs of shipping, taxes, fees etc.).
$10,000 - $99,999.99 Requires 3 written quotes
Cumulative purchases from $10,000 but less than $99,999.99 must have three written quotes. WRITTEN QUOTES MUIST BE SIGNED AND DATED BY THE VENDOR SUBMITTING THE QUOTE.
Exceptions may be made in sole source situations for purchases above $10,000, however, those situations are rare and a letter from the vendor stating that the company is a sole source will never serve as documentation for that vendor’s sole source procurement.
Sole source procurement requires written justification from the requisitioner to the Accounting Department, prior to commitment of an order. A sole source justification form can be found on the District’s website. All sole sources must be approved by the Governing Board at a formal Governing Board meeting.
If you believe there is justification to request, in lieu of competitive bidding, a specific product brand name, a specific manufacturer, or a sole or preferred supplier of a product or service, you must complete this form and send it to the Accounting Department. Justifications are to be supported by factual statements that will pass internal and state audits. It is the critical and necessary features of a product that make it a sole source.
Checking Your Order Status
You may call the vendor with your purchase order number regarding the status of your order. Also, you may call the Accounts payable to check on the status of a purchase order. Be certain to have your purchase order number ready.
If you need to contact the Accounting Department for any of your queries, call extension 7364, and you will get the help you are requesting. When calling the Accounting Department, please include as much information as possible including the requisition number, purchase order number, vendor name and budget code. This information will help expedite your request.
The school district may not actively distribute vendor information; i.e., hand out promotional flyers, sell items on District property, and/or hand out or post promotional posters*. We have been advised that this is a violation of the School District Procurement Code. Should you have questions, please contact the Director of Business Services.
*Unless you have submitted the REQUEST TO DISPLAY, POST, OR STACK INFORMATION/MATERIALS IN OR ON SCHOOL DISTRICT PROPERTY and have received approval from the Assistant Superintendent.
“AFTER-THE-FACT” PURCHASE ORDERS
WHAT IS IT?:
An “After-The-Fact” Purchase Order is Any of the Following:
WHY IS AN “AFTER-THE-FACT” PURCHASE ORDER SO BAD?
WHAT SHOULD WE DO?
WHAT ARE WE PROHIBITED FROM DOING?
A purchase made without a purchase order is a violation of the procurement rules and could result in the employee being held personally liable for the purchase.
Contact the Accounting Department if you have any questions or a special circumstance before making the purchase. We want to help make the purchase as efficient as possible
If you are requesting travel reimbursement, you must complete the travel reimbursement form and attach all receipts along with a copy of the Governing Board Agenda approving your travel within 5 days of travel completion.
The only time you will be reimbursed for your mileage for using your personal vehicle will be if a District vehicle is not available for your use. You must submit paperwork substantiating the unavailability of a District Vehicle.
When using a district vehicle and turning in the gas receipts from your trip, please be sure to sign the receipt and write the District Vehicle # on it.
There is no meal reimbursement for one-day travel
The person initiating a request to use district funds to make a purchase is the “REQUESTOR”. This person is responsible for submitting a requisition that has accurate and up-to-date information on the vendor and the products and/or services to be purchased and includes any other required documentation.
Every department administrator is responsible for reviewing and approving all expenditures submitted by their staff. This process includes verifying requisition totals, correct account coding and fund availability.
Account Code Verification
The account code must match the type of service/merchandise being purchased. For example, funds in a supply account code can ONLY be used to purchase supplies. They cannot be used to pay for registrations for classes, tournaments, etc.
** See the “Chart of Accounts” for complete account code description and approved uses.
The USFR specifically states that there must be funds available PRIOR to any expenditure being approved. Account balances reflect only those deposits verified by a bank receipt. The Business Services Office must receive the bank receipt in order to log the funds as being deposited and available to use. A budget transfer may be submitted along with a requisition if necessary.
“Combining” purchase orders or “rolling over” of change is not permitted. All unused funds are to be returned promptly and deposited back into the account before the funds can be used again.
Once the requisition has been reviewed by the site administrator, and all inaccuracies corrected, the supervisor approves the requisition to signify their authorization of the expenditure. The requisition is then forwarded through the Visions accounting program to the Director of Business Services for further final review and district authorization.
Business Services Office:
Once the Director of Business Services approves the requisition, a purchase order is issued.
If the requisition is rejected by the Director of Business Services, it will go back to the originator
The Director of Business Services handles the Auxiliary Operation Accounts, Student Activities Accounts, and any revolving account code requisitions that require immediate payment. The Accounts Payable clerk handles all other purchases.
Purchase order copies are then disbursed as follows:
If the purchase order will require delivery of items to the requestor, they must be shipped to the accounts payable. Accounts payable personnel receive each order, verify the order is correct and complete then deliver it to the requestor.
Requestors must forward receipts for purchases not needing to be delivered to the accounts payable clerk at the Business Services Office. ** Make sure to keep a copy of all receipts for your records. **
ALL RECEIPTS MUST BE DATED AFTER THE PURCHASE ORDER ISSUE DATE, INCLUDING ONLINE ORDERS AND HOTEL AND AIRLINE RESERVATIONS.
Receipts MUST contain:
5. Itemized description of purchase
Accepted receipt types:
*** The district will only pay the amount authorized on the purchase order, unless authorized by the department administrator or Director of Business Services. ***
The accounts payable clerks will issue payment once all required documents have been received. These include receipts or signed proof of delivery (packing slip) from the accounts payable and an invoice from the vendor. Payment will be mailed to the address provided on the purchase order or the address listed on the invoice. All travel expense forms must include receipts and event agendas in order to issue payment. Once the payment has been issued, the purchase order is closed in the District accounting system.
Student Activities Procedures
Division of Duties
The responsibility for the proper management of all monies at the school site is delegated to the Principal. The Principal may delegate any portion of these duties to other site personnel, including the processing of student activities money. The site employee delegated the responsibility over the Student Activities accounts are known as the “ASSISTANT STUDENT ACTIVITIES TREASURER”. The “STUDENT ACTIVITIES TREASURER” is responsible for all student activities funds at the District level and is located in the Business Services Office.
Student Activities Treasurer (District Office):
Assistant Student Activities Treasurer (Site Level):
Requirements to Form a NEW CLUB: (Per USFR Requirements below)
a) A Constitution outlining:
b) Name of at least one adult sponsor who is an employee of the District.
c) List of officers
Note: ALL Fundraisers must be Board Approved (Submit Fundraising Activities Request form to District Superintendent’s office).
All funds raised must be submitted to the school site’s front office for Deposit with a completed Cash Collection Report.)
Procedures of Forming a New Club:
** In the Continental Elementary School District, the Student Activities Treasurer is a Business Services Office employee (usually the director) and the Assistant Student Activities Treasurer is a school site employee (usually the school secretary). **
** Conflict of interest policies, as stated in District policy GBCA and ARS Title 38-503 apply to all student activities transactions. ARS Title 38-503 prohibits school employees from participating in any manner in a contract, sale or purchase where the employee or a relative has a substantial interest in the contract sale or purchase. **
** MISUSE OR MISHANDLING OF ANY STUDENT ACTIVITIES FUNDS IS GROUNDS FOR DISCIPLINARY ACTION. **
$10,000 - $99,999.99
Requires 3 written quotes
Reimbursements MUST be submitted within 5 days of disbursement or within 5 days of event completion. Without prior approval of District Student Activities Treasurer, reimbursement cannot exceed $500.
NOTE: Student Activities and Auxiliary Accounts ARE on Visions.
* Must complete and submit the Vision Requisition Template found on the District website.
Deposits & Expenditures are recorded in Visions.
Forms can be found on district website under Staff Resources
4. Individual clubs must maintain ledger balances:
Amount purchased from vendor
- Amount Left
= Amount Sold
= Estimated Proceeds
*** Don’t forget the inventory sheets that are to be attached to the deposit paperwork. ***
The following guidelines shall apply for the sale of food items:
The USFR defines a “fixed asset” as any item for which the District pays $1,000.00 or more. This total includes all tax, shipping and handling charges, set up fees, instruction, etc. These items are tracked by the District and include equipment, land, buildings, and improvements. Accounts payable personnel tags any item that meets the threshold set by the Business Services Office with a fixed asset label. All fixed asset descriptions and values are then logged into the District’s Fixed Assets system. Most computer software, towers, and monitors are considered fixed assets, but keyboards, mice and most other computer accessories do not fall into this category and do not need to be tracked.