Review of Purchasing Guidelines

Transcription

1 Review of Purchasing Guidelines

2 Board Policy CH Local Persons making unauthorized purchases shall assume full responsibility for all such debts. All purchase commitments shall be made by the Superintendent or designee on a properly drawn and issued purchase order, in accordance with administrative procedures.

3 Purchasing Procedures Click on District Departments Click on Business Operations Click on Purchasing Click on Purchasing Manual

4 District Approved Vendors Available Online thru District Internet Page Click on District Click on Business Operations Click on Purchasing Department Click on Awarded Vendors by Category or Awarded Vendors by Alpha

5 Purchasing Thresholds Purchases under $3,000 Use Primary vendor. If you are not using the Primary vendor, you may use the Secondary or Qualified vendors and provide justification. In the event that none of the awarded vendors can be used, a justification must be provided. Purchases from $3,000 - $49,999 Require 3 quotes through awarded vendor on a bid or Interlocal Cooperative Agreement Purchases in the amount of $50,000 or greater in District Annual Aggregate Require Competitive Bids and Board Approval

6 Purchase Order Required Do not order any goods or services without a purchase order or authorization from Purchasing

7 Personal Purchases District employees shall not be permitted to purchase supplies or equipment for personal use through the District's business office.

8 Ethics Avoid conflict of interest situations Accepting gifts, money, going out to lunch with vendors, etc. Avoid preferential treatment of vendors Do not offer unfair advantage to any one vendor Do not use your position to secure gifts, discounts or special treatment from vendors

9 Ethics continued Do not use restrictive specifications that inhibit competition Do not disclose a competitor s price Vendors may tell you that they will give you a discount from the lowest price you get Do not allow that They should give you their best offer up front If a vendor is allowed to re-price then all vendors should have a chance to re-price through a best and final offer

10 Conflict of Interest Disclose to your immediate supervisor a personal financial interest, a business interest, or any other obligation or relationship that in any way creates a potential conflict of interest Relatives working for a vendor that you deal with regularly Buying from a company you have a financial interest in

11 Separate, Sequential, or Component Purchases Employee shall not make or authorize separate, sequential, or component purchases to avoid the purchasing requirements Violation of this provision is a Class B misdemeanor and an offense involving moral turpitude Conviction shall result in dismissal from employment.

12 Open Market Purchases Purchase orders for goods or services where the annual district aggregate does not exceed $50,000 may be purchased on the open market Purchasing monitors expenditure levels Total for that category of goods or service Not total for vendor

13 Sole Source An item for which competition is precluded because of the existence of a patent, copyright, secret process, or monopoly Sole source letter required from vendor as backup Contact Purchasing for sample letter

14 Blanket Purchase Orders What is the maximum amount allowable for blanket orders? $500 (exceptions for certain circumstances) Contact Purchasing if you need a larger amount approved. How long can Blanket POs stay Open? Maximum is six months Exception: Copiers, Leases, etc. stay open until end of fiscal year or end of contract term, whichever occurs first. Exception: HEB maximum is one month since statements are received monthly. What vendors are approved for Blankets? HEB Copier companies Suppliers for Facilities, Transportation, and Child Nutrition Departments

15 Item Descriptions Need to be specific and not too general Consultant services - Date of event, Topic, Audience, Location General items - Include item numbers followed by the description of the item being purchased Include pertinent information such as Board approval date, if known If reimbursing an employee, state where items were purchased even if purchased at different locations.

16 Obtaining Quotes Contact at least 3 vendors Provide them the specification and quantities Brand Model # Description Use or equal Give them a deadline by when to submit

17 Obtaining Quotes continued Transfer quote information on Quotation Tabulation Form Recommend awarded vendor Provide justification if you are not selecting low quote Obtain signature approvals Upload and attach documentation from vendors (quotes, confirmation, invoice, etc.) to Sungard PO System Submit with your requisition

18 Catalog Bids Awarded on a Primary, Secondary, Qualified Vendor basis for a category of goods/services Primary Vendor was evaluated to provide the best overall pricing Secondary and Qualified Vendors used for comparing pricing through quotes If Primary can t meet the needs, purchase from Secondary or Qualified

19 Why Do We Ask For Quotes? Sampling of items used to determine Primary, Secondary, Qualified Vendor status Quotes are required for purchase orders over $3,000 To ensure vendors are consistent with bid awards To ensure pricing is still competitive Catalog bids are not all-inclusive

20 Length of Time to Pay Texas Government Code Chapter 2251 Payment for Goods and Services dictates when a penalty can be assessed for late payment. Include a statement that the district is on a Net 30 payment basis after receipt or goods/services or invoice, whichever occurs last! Interest on late fees must Code Chapter be in accordance with Texas Government , currently 1% plus prime rate.

21 Cooperative Purchasing BuyBoard TCPN TIPS Region One HGAC DIR

22 Workflow Approval Process Approval Access Granted only to Principals/Administrators Do Not Approve Requisitions on Behalf of Principal/Administrator To request changes to Workflow, follow new process in Accounting Manual

23 Requisitions Status Codes What s the status of my requisition? Status can found on POCSMC Screen or user s entity list

24 Requisition Status Codes Status Codes: PR, PO, PP, FP, DE, CA PR- Purchase Requisition- PR has not been printed- in the approval process PO- Purchase Order - PO- Purchase Order- PR becomes PO when the PR has gone through the approval PP- Partially Paid- An invoice was received for partial shipment, partial delivery of services, and the Accounting Department has issued a check FP- Fully Paid- Invoice was received for total amount of PO, and the Accounting Department has issued a check. DE- Disencumbered- PO was generated, but only some items or services were received and the rest of the items or services will not be needed. This will disencumber the balance on the PO. User must notify accounting at the time that they submit for final payment CA- Cancelled- PO was generated, but no activity ever occurred on that PO, and the products or services will not be needed. This will disencumber the total amount of the original PO. Submit Request to PO clerk to cancel PO

25 Parent Record Vendor & Ship To Fields Vendor IDs start with the letter V Shipping IDs start with the letter S Central Warehouse- S800 Work Order Field- Only for Plant Operation/Purchasing Warehouse/Child Nutrition use Requested By Field Requested by field info is now being reflected on PO Teacher requesting material or Program info for which you ordering from should go here Example: M. Garza/ Kinder Rowe/21 st Century Bid # and PO Type User is able to refer back to POs as a reference by doing a vendor search/using their entity list Utilizing MISD Purchasing Website- Awarded Vendors

26 Notes PR NOTES PR Notes are internal. They will not print on PO. This field can be used to let PO clerk know You have used the online net pricer Prices reflect discount PRINT BEFORE Print Before Notes are for the Vendor. Any notes on here will print on your PO BEFORE your first line item. Things to note on here Quote #s given by company Special Instructions PRINT AFTER Print After Notes are for the Vendor. Any notes on here will print on your PO AFTER your first line item. Things to note on here Deadline for delivery

27 Attaching Documentation Enable Attachment Feature Attach document by selecting Add Attachment and selecting file from your computer Name Attachment preceded by requisition number. If you do not name your attachment it will not attach properly.

28 Approving a Requistion Workflow The Green Checkmark is to approve and release to the next approver on the workflow. The Red X is to reject (intended for approvers above the originator). This does not delete the requisition. Instructions on how to delete a requisition can be found in the Purchasing Website under Sungard Notes The Forward Arrow will allow the user to send the requisition with a question or message to someone. This person will then send it back for user to take action, if this option is chosen. The Forward Arrow will also allow the option to delegate the approval to someone else so that when that person finishes reviewing, and approves it, the requisition will go onto to the next approver in the workflow without having it come back to the person that forwarded. This Option is only functional through the Task List Workflow.

29 Cancelling Purchase Orders/ Reprints your PO clerk to Cancel Include the following information in your request to cancel: PO Number PR Number Current Status of Purchase Order Fully Paid (FP) PO s can not be cancelled Or you can attach POs individually to POs must have CANCEL, signature, date, and status of PO your PO clerk for Reprints

30 Useful Reports PO Requisition Pending Report Run report once a week or every two weeks User is able to drill on requisitions PO PO Inquiry Report After receiving items online, print this report to submit to accounting Report displays item, account, payment, workflow approval details

31 Online Receiving Function Accounting will not be able to make vendor payments on requisitions if User does not receive the Purchase Order line items electronically through the Receiving system Module Receive Online Receiving a Full Order Receiving a Partial Order Correcting previously saved quantity

32 Online Receiving Function The system will not allow User to Receive more items than those that were ordered. System will not allow Users to Receive on Fully Paid POs Receiving Date- extremely important! The user must make it a regular practice to electronically receive on a PO on the date that items were received, in order to minimize the need to change the default Date Received on the screen (an eliminate the possibility of error in data entry). It is critical at year end, when any orders received prior to 06/30, must be paid from 06/30 fiscal year.

33 Bid Calendar Reminders sent several months prior to contract expiration dates Annual Bid Calendar Posted on our Website Plan accordingly

34 Evaluation of Bids The purchase price The reputation of the vendor and of the vendor s goods or services The quality of the vendor s goods or services The extent to which the goods or services meet the District s needs The vendor s past relationship with the District The impact on the ability of the District to comply with laws and rules relating to historically underutilized businesses The total long-term cost to the District to acquire the vendor s goods or services For a contract for goods and services, other than goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor s ultimate parent company or majority owner: has its principal place or business in this state; or employs at least 500 persons in this state, and And, any other relevant factor specifically listed in the bid

35 Senate Bill 9 Criminal Background Check In September 2007, Senate Bill 9 went into effect, codified as Section of the Texas Education Code. Affects both employees of districts and contractors of districts Important date: January 1, 2008 For contractors hired prior to this date criminal background checks can be run by any law enforcement agency For contractors hired after this date, fingerprints are required to be processed through the DPS criminal history clearinghouse

36 Criminal Background Checks continued Three Questions to Determine Whether a Criminal Background Check is Required: Is there a direct contractual relationship Subcontractors are exempt Are the duties to be performed by the contractor continuing in nature? More than one day? Does, or will, the contractor have direct contact with students?

37 Delinquent Taxpayer Vendors In accordance with law, the District shall not enter into a contract or other transaction with a person indebted to the District, nor shall the District award a contract to or enter into a transaction with an apparent low bidder or successful proposer indebted to the District.

38 Approval of Contracts Contracts, agreements, and MOUs can only be signed by: Superintendent Board of Trustees

39 Review of Purchasing Guidelines