FILE:  DJE-P

Cf:  DJE

 

PURCHASING PROCEDURES

 

 

SCHOOLS

 

All School Activities Account purchases shall be regulated in accordance with the following regulations and procedures:

 

    1. Prior to any procurement, sufficient funds/budget must be available for the purchase/project, otherwise permission from the St. Martin Parish School Board is needed.

 

The purchasing process should not be initiated until Board approval is granted.

 

    1. Material and Supply Purchasing
       

Method I - Purchasing

 

The purchase of a single item or a group of similarly related items (such as football helmets and football shoes) where the estimated aggregate total cost would not exceed $2,500 may be approved by the principal by contracting directly with the vendor offering the product(s) at the best price.

 

      1. The principal or designee must be assured of the reasonableness of the price by obtaining as many verbal or written quotations as deemed appropriate.
         

      2. If in the opinion of the principal, informal quotations are desirable to assure the reasonableness of the purchase, the informal purchasing procedures described in Method II may be followed for any purchase of less than $2,500.

 

Method II - Quotes

 

The purchase of items having an estimated total aggregate cost exceeding $2,500 but less than $10,000 may be made by the school after obtaining at least three (3) written (preferable) quotations before making the obligation.  Use of the quotes form provides each vendor with the same information thereby permitting fair and comparable quotes.  In addition, records of the transaction are simplified and easy to maintain for file and audit purposes.

 

If in the opinion of the principal, formal bids are desirable to assure that correct purchasing procedures have been followed the request should be made as described in Method III.

 

      1. It is important that vendors be given a reasonable amount of time to prepare and return their quotes to the School.
         

      2. All informal quotations must be on comparable merchandise and must be properly evaluated, awarded and maintained on file for audit purposes.
         

      3. Since the school has control over the three (3) vendors selected to quote, the award shall be made to the firm quoting the lowest price.
         

        (1)

        In the event an alternate product is offered at the lowest price, it may be considered as a substitute for the intended product provided the alternate product is clearly of equal or better value and that its purchase will in no way compromise the quote award.  Such purchase may not be made if other vendors could or would have offered the same or equal product, but did not do so because they did not know such quote would have received consideration.

         

        (2)

        If an alternative product is quoted at the lowest price, and after careful evaluation is found not to serve the need, the school must reject the item(s) and state the rejection reason in writing on the price quotation form. The award of the business is then made to the next lowest bidder who did quote as specified.

 

      1. As a part of the quote solicitation, the principal or his/her designee shall inform all vendors that the school reserves the right to reject any or all quotes.
         

      2. Purchases more than $7,500 but less than $10,000 needs to be approved by the principal and Chief Financial Officer (CFO) PRIOR to awarding quotes.

 

Method III - Formal Bids

 

The public bid law of the State of Louisiana (La. Rev. Stat. Ann. ยง38:2212, et seq.) governs and sets a dollar threshold on all purchases for materials (products) and all public works.  The law applies to the School Board and each of its schools, individually or collectively, as appropriate.

 

The St. Martin Parish School Board has set its limits lower than the legal requirements.

 

      1. Formal bidding is a lengthy procedure; it is therefore incumbent upon the school to anticipate their needs and plan accordingly. At least five to twelve weeks are required to process a requisition through the several steps of the procedure for formal bidding.  The school should take this into consideration and allow a reasonable period of time for delivery by the successful bidder when planning for receipt of the items wanted.
         

      2. When material or supply purchases with costs in excess of $10,000 must be made, the school shall prepare a letter to the CFO containing the following statement:
         

        I certify that         (Name of School)       , has available funds sufficient to purchase the item(s) (or services) requested hereon provided the actual low bid received does not exceed $ (insert amount)   , including applicable transportation charges.

         

        (1)

        The school shall submit the complete descriptive brochures, literature, pictures, specifications, current price lists, and other pertinent information to the CFO.

         

         

         

        a.   The school will be required to assist in evaluating the bids to determine the lowest acceptable bid meeting specifications.

         

         

        (2) 

        Copies of the bid awards, as approved by the Board, will be given to the school to permit the immediate issuing of school purchase order(s) to the successful bidder(s).

         

        1. Delivery conditions and instructions (as also contained in the bid specifications) will be shown on the purchase order.

        2. Payment will be made by the school after all item(s) have been delivered and accepted in good order by the school.

         

         

    1. Public Works (Labor and Material)

 

Quote and Bid thresholds for public works are different than for Materials and Supplies.  However the methods (I, II, III) still apply.

 

Exceptions:

 

Some items or services do not lend themselves to the procedures set above and will be handled in accordance to the following procedures:

 

    1. Field Trips:     An approved field trip which costs less than $250 may be paid from cash collections collected for that purpose; however, form 16 and all receipt vouchers shall be submitted to the school administration and then forwarded to the Business Office.
       

    2. Items purchased for fundraising activities; however, all purchase order procedures set forth in the School Activity Manual (SAM) shall apply.

 

Petty Cash Fund

 

Each school may maintain a petty cash fund as set forth in SAM.

 

GENERAL INFORMATION

 

  1. A bill will not be paid on the basis of a statement.  The original invoice must be attached to the voucher or purchase order.
     

  2. If purchase orders or vouchers are submitted without signed invoices, they will be returned to the school.  Items purchased for fundraising activities, however, all purchase order purchases set forth in SAM shall apply.
     

  3. Schools may not purchase equipment and/or supplies on the installment or lease purchase plan without prior approval of the Business Office.
     

  4. Deposits/Transfers of Funds

 

    1. All schools shall deposit and/or transfer funds as dictated by SAM.
       

    2. The school account in the local bank must be at or near zero balance at the end of each month.  However, because of the possibility of NSF checks, schools are allowed a $200.00 balance at the end of the month if it is felt that this is necessary.

 

  1. Financial Transactions

 

    1. Checks are issued by the Business Office twice a month.  At the end of each month, the Business Office will provide the school a journal for all checks written, deposits made, and any necessary adjustments.  The school will receive a statement of receipts and expenses.
       

    2. Each month the principal or his/her designee shall reconcile Quicken to the computer print-out.

 

  1. Time permitting, all school finances will be reviewed at least once during the school year by the Business Office.
     

  2. If a new account is needed, the Business Office shall be contacted and a new account number will be issued.
     

  3. Schools are exempt from paying sales tax.
     

  4. The school number must appear on all school purchase orders.
     

  5. School purchase orders must be used for purchases to be paid by the school clearing account.  A general fund purchase order may be used with the expenditure and other approved budget allocations.

 

MAINTENANCE DEPARTMENT (School)

 

All purchases for maintenance less than $100 may be made only upon approval by the principal.  All other such purchases shall be approved by the Maintenance Foreman in accordance with policy DJEG, Purchase Orders and Contracts.

 

 

St. Martin Parish School Board