PURCHASING MANUAL. Questions? Contact Alane Wilcox, Purchasing Accountant (623) AESD Purchasing Manual (Revised September 2014) -1-

Transcription

1 PURCHASING MANUAL Questions? Contact Alane Wilcox, Purchasing Accountant (623)

2 Table of Contents PURPOSE AND OBJECTIVE 3 COMPLIANCE 3 ETHICS 3 PURCHASE ORDER PROCESS 4 SALES TAX AND FREIGHT 5 VERBAL QUOTES 6 WRITTEN QUOTES 6 COMPETITIVE BIDDING 7 CONFLICT OF INTEREST 7 BLANKET PURCHASE ORDERS 8 HAND CARRY PURCHASE ORDERS 8 CONTRACTED VENDORS 9 NEW VENDORS 9 RETURNS 10 VENDOR PERFORMANCE REPORT 10 REFERENCES/RESOURCES 11 VERBAL QUOTE SUMMARY APPENDIX 1 BOARD MEMBER/STAFF CONFLICT OF INTEREST APPENDIX 2 VENDOR PERFORMANCE REPORT APPENDIX 3-2-

3 Purpose and Objective This manual is a formal internal communications document of Avondale Elementary School District. It is intended to assist departments and school sites with compliance with the most common purchasing situations. It is not designed to be a complete and comprehensive document of all possible procurement situations. Compliance The purchasing office is responsible for compliance with Title 7, Articles 10 and 11, of the Arizona Administrative Code (AAC). These Articles apply to every expenditure using public monies by a school district, including grants and donations. The Uniform System of Financial Records for Arizona School Districts (USFR) defines the requirements for all purchases, including Title 7, and provides minimum audit standards for the procurement of goods and services. Additional compliance requirements are listed in Section D, Fiscal Management, of the Avondale Elementary School District policy manual. The District s auditors annually review compliance with Title 7, the USFR, and district policy. Ethics The District s Governing Board members and employees shall not use their offices or positions to receive any valuable things or benefits that would not ordinarily accrue to them in the performance of duties if the things or benefits are of such value or character as to manifest a substantial and improper influence upon the performance of their duties. This policy should not be construed to prohibit District Governing Board members and employees from accepting inexpensive novelty advertising items and holiday gifts or occasional business lunches. -3-

4 Purchase Order Process Employees must have a purchase order to obtain materials and services. The school or department secretary will enter the order as a requisition in the District s finance system. The requisition then goes through an electronic approval process. Several levels of approval are necessary, depending on the type of item and funding source. The employee s supervisor performs the first level of approval. If the order includes technology equipment, the requisition will be reviewed by the technology department. The requisition will be reviewed by the accounting office if the order is being paid with special funding (site funds, grants, tax credit, gifts and donations, etc.). Purchasing reviews all orders to verify compliance with various procurement rules. The Business Manager then reviews the requisition to verify the account code and to provide final approval of the requisition. A purchase order (PO) number is assigned to the requisition and the printed PO is sent to Purchasing. Orders are faxed to vendors and a copy of the PO is sent to the originating school or department. Verify the following details in your purchase requisitions to reduce the number of questions and to expedite processing: 1. Include a full and thorough description of the product/service It is better to have too much information than not enough information. 2. Forward quotes, order forms, registration forms, and any other supporting documentation to Purchasing. 3. Include location information (building, room #) for items that cost over $1, Use the correct account code Requisitions are often returned because the account number is not correct/appropriate for the purchase 5. Make sure funds are available Our finance system will not allow a requisition to be submitted if there is not enough budget capacity in that order s account code. -4-

5 Sales Tax and Freight The District s finance system, Visions, has a default rate of 9.8% sales tax for in-state purchases and 6.5% for out-of-state purchases. The District is only tax exempt for purchases of library materials (printed, photographic, electronic, or digital media materials), food service materials (food, drink, condiments or accessories for consumption at a public school during school hours), and items for resale. The District is required to pay tax on all other goods purchased. Visions also has a default rate of 13% for freight. This amount can be adjusted if you have been quoted a different rate. For purchases of large or bulky items, you should contact the vendor to obtain an actual freight quote. Unauthorized Purchases (aka After the Fact Purchases) An unauthorized purchase occurs when an order for goods or services is placed prior to obtaining an approved purchase order (PO). Unauthorized purchases, also referred to as after the fact purchases, are a direct violation of the procurement rules and District policy and will result in an audit finding during the District s annual financial audit. When an employee makes a purchase without ensuring that a purchase order has been issued, they assume personal liability for the expense. The District is not responsible for payment of any product or service provided without an authorized purchase order. When the District identifies an unauthorized purchase, the employee receives a notice explaining they have violated policy. The vendor is contacted verbally. We explain that they violated the District s policy and that additional action may be taken such as putting their account on hold status or removing them as a vendor from the District s finance system. Some common examples of unauthorized purchases include registering for conferences, authorizing services to begin, or ordering items without first getting an approved purchase order. Avoiding an after the fact purchase is simple. Get an approved purchase order prior to ordering goods and services. -5-

6 Verbal Quotes Verbal quotes are required from three or more vendors for cumulative purchases costing at least $10,000, but less than $50,000. The vendors contacted and their price quotations should be sent to the purchasing office as supporting documentation for the requisition. If three quotations cannot be obtained, document the vendors contacted who did not offer price quotations and the reasons they would not do so. If a vendor is selected because of reasons other than the lowest price, such as quality of the product or work to be performed, the reasons should be fully documented. A sample verbal quote form has been included at the end of the manual. Written Quotes Written quotes are required from three or more vendors for cumulative purchases costing at least $50,000, but less than the competitive purchasing threshold, currently $100,000. Written quotes must be submitted on company letterhead with a valid signature and date. quotes will only be accepted as an attachment on company letterhead with a valid signature and date. If three quotations cannot be obtained, document the vendors contacted who did not offer price quotations and the reasons they would not do so. If a vendor is selected because of reasons other than the lowest price, such as quality of the product or work to be performed, the reasons should be fully documented. The vendors contacted and their price quotations should be sent to the purchasing office as supporting documentation for the requisition. Also include a quote summary with an explanation for why the selected vendor was chosen. Procurement thresholds for total district-wide activity with a vendor: $10,000-$50,000 Verbal Quotes $50,000-$100,000 Written Quotes >$100,000 : RFP -6-

7 Competitive Bidding The District must conduct a formal competitive sealed bid/proposal process for cumulative purchases of goods that exceed the bid threshold amount, currently $100,000, and such purchases must be approved by the Governing Board. This is a process that must be performed by the purchasing office to ensure that the District is in full compliance with the complex legal structure associated with procurement activity over the bid threshold amount. Please contact the purchasing office if you have a large purchase that requires competitive bidding. You will be an integral part of the bid/proposal process, which usually takes weeks from beginning to completion. Purchasing will need your assistance during the process so that the end result will meet your needs. Conflict of Interest Pursuant to A.R.S , any Board member or employee of the District who has, or whose relative has, a substantial interest in any contract, sale, purchase, service, or decision of the District are required to file a conflict-of-interest statement and refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale, or purchase. Per A.R.S , "Relative" means the spouse, child, child's child, parent, grandparent, brother or sister of whole or half blood and their spouses and the parent, brother, sister or child of a spouse. A copy of the disclosure statement is included at the end of this manual. EXCEPTION TO QUOTE/BID REQUIREMENTS: If the vendor is currently under contract with the District, quotes/competitive bids are not required. Even though quotes or bids may not be required, we should still exercise due diligence to ensure the District is receiving the best value. -7-

8 Blanket Purchase Orders Blanket purchase orders may be used for items that are purchased on a recurring basis from the same vendor within a specified time frame such as vegetables, dairy products, and gasoline. Blanket purchase orders should state a specific period of time that the purchase order is in effect and a specific dollar limit. Hand Carry Purchase Orders Hand carry purchase orders (i.e. Home Depot, Hobby Lobby, Teaching Stuff) are to be used one time only and within 14 days from the PO date. They may not be used to purchase gift cards and the purchase may not exceed the amount of the PO. Submit receipts to your school/department secretary within 48 hours from the time of purchase. The purchase order should include a general description of the purchase and a maximum dollar amount. Blanket PO Example Blanket PO for diesel fuel for district buses not to exceed $x,xxx.xx valid through 6/30/15. Hand Carry PO Example Hand carry PO for classroom supplies not to exceed $xx.xx. -8-

9 Contracted Vendors The phrase "contracted vendor" means the vendor has competitively bid for certain products/services. We typically receive preferential pricing or discounted shipping as a result of the competitive bid. Please call the purchasing office at extension 5005 if you have questions about any of the contracts, or if you want to find out if a vendor is on a contract. New Vendors Please contact your school/department secretary if you need to place an order with a new vendor. The secretary will work with the purchasing office to get the vendor set up in our finance system. Need a product but don t know where to find it? Unsure if you re being offered the best price? Contact the purchasing office. Our vendor registration list is a great tool to find the right vendor for your purchase. -9-

10 Returns Please contact your school/department secretary if you need to return an item. They will work with Accounts Payable/Purchasing to make arrangements for the return. When possible, repack your item in its original packaging. Vendor Performance Report The District has a form to document vendor performance (good or bad). The purchasing office will follow up with the vendor regarding any appropriate action needed. By documenting vendor performance, we are able to retain strong vendors and eliminate vendors not performing to the District s expectations. A copy of the form has been included at the end of this manual. Did a vendor provide exceptional service? Did you have an unsatisfactory experience with a vendor? Fill out the Vendor Performance Report to let us know about it. -10-

11 References/Resources Arizona Administrative Code Education Arizona Auditor General Uniform System of Financial Records for Arizona School Districts Arizona Revised Statutes Avondale Elementary School District #44 Governing Board Policy Manual Avondale Elementary School District #44 Purchasing Website

12 Appendix 1 Verbal Quote Summary The district should obtain oral price quotations from three or more vendors for purchases costing at least $5,000, but less than $25,000. (USFR VI-G-8) The vendors contacted and their price quotations should be written on or attached to the district s file copy of the related requisition form or purchase order. If three quotations cannot be obtained, the district should also document the vendors contacted who did not offer price quotations and the reasons they would not do so. If a vendor is selected because of reasons other than the lowest price, such as quality of the product or work to be performed, the reasons should be fully documented. (USFR VI-G-9) The invitation for price quotes should be issued in sufficient time before the purchase is to be made and in sufficient detail to allow vendors to adequately respond. (USFR VI-G-9) Product/Service Description 1. Vendor Date Called Quote Provided By Quote Amount 2. Vendor Date Called Quote Provided By Quote Amount 3. Vendor Date Called Quote Provided By Quote Amount Misc Comments Employee Signature Date Appendix -1-

13 Appendix 2 BOARD MEMBER/STAFF CONFLICT OF INTEREST DISCLOSURE STATEMENT Pursuant to A.R.S , any Board member or employee of the District who has, or whose relative has, a substantial interest in any contract, sale, purchase, service, or decision of the District are required to file a conflict-of-interest statement and refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale, or purchase. The interest must be disclosed in writing and retained in a file exclusively for that purpose with the District. This file is public record. I,, do hereby indicate: 1. That I am presently an officer/employee of the Avondale Elementary School District #44; 2. That I (or my relative[s]: ) have a substantial interest in the contract, sale, purchase, or service to or decision by the Avondale Elementary School District Governing Board as described below. 3. That I shall refrain from participating in any manner in my capacity as an employee or officer of Avondale Elementary School District in such contract, sale, purchase, service to, or decision by the Governing Board unless specifically permitted to do so by law. Description of conflict: Signature Date Appendix -2-

14 Appendix 3 VENDOR PERFORMANCE REPORT This document should be used to document positive or negative performance by a District vendor. Please indicate if corrective action is required. Describe the performance issue. Be accurate, complete and factual. Use an attachment if necessary. Reporting incident, no action requested Specific action requested: Name Signature Date School/Department Phone Appendix -3-