Transcript 3 - 5850 - 050 - 311 The Basic Account Structure Fund Function

The Basic Account Structure
Fund
Program
Report Code
3 - 5850 - 050 - 311
Function
Object
Expenditure Codes
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FUND CODES
The Source of $$$
State funds = 1
Local funds = 2
Federal funds = 3
Capital funds = 4
Child Nutrition funds = 5
Trust = 6
Community Schools = 7
Purpose Codes
The reason for the expense
The purpose for the expenditure
 5000 - Instructional Programs
 6000 - System Wide Support
 7000 - Community Schools/CNP
 8000 - Non-Programmed Charges
 9000 - Capital Outlay
Purpose Codes
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5110- Regular Curricular Services
5120- CTE Curricular Services
5210- Children with Disabilities Curricular
Services
5500- Co-Curricular Services
6110- Regular Curricular support and
Development Services
6201- Children with Disabilities Support and
Development Services
PRC - Program Report Code
What pot of
money the
funds are
coming from?
Object Codes
Service or Item Obtained
Salaries = 100 series
 Benefits = 200 series
 Purchased services = 300 series
 Supplies and Materials = 400 series
 Equipment and Capital Outlay =
500 series
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Object Codes
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311-Contract Services
312-Workshop Expenses
341-Telephone
342-Postage
411-Supplies and Materials
412-State Textbooks
414-Library Books
418 Computer Software and Supplies
461-Furniture and Equipment-Inventoried
462-Computer Equipment-Inventoried
541-Equipment-Capitalized (greater than $5000)
542-Computer hardware-capitalized (greater than
($5000)
Why a Purchasing/Finance
Manual?
G.S.
115C-441 requires
– the
finance officer to determine if a sufficient balance remains
in the budget to pay the invoice when it is received, and that
the finance officer certify this by signing a “pre-audit
certificate” and put it on the contract, agreement, or purchase
order before it can become an obligation of the governmental
unit.
–Approval of the disbursement—The finance officer may
approve the claim only if he/she determines the amount to be
payable, the budget resolution includes an appropriation
authorizing the expenditure and either (i) and encumbrance
has been previously created for the transaction or (ii) an
unencumbered balance remains in the appropriation sufficient
to pay the amount to be disbursed. A bill, invoice or other
claim may not be paid unless it has been approved by the
finance officer, or under subsection (c) of this section, by the
board of education.
Why a Purchasing/Finance
Manual?
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G.S. 115C-522(a) Grants Power to Contract for local boards
of Education for purchasing
– According to Session Law 2003-147, Section 10 (b), if
during the fiscal year a local board of education is certified
as E-Procurement compliant, it must use E-Procurement to
expend at least 30% of its remaining unencumbered funds
to purchase supplies, equipment, materials, computer
software and other tangible personal property. In the first
year after certification, the minimum E-Procurement
purchase percentage rises to 35% of the above mentioned
goods, with a State encouraged goal of 50%. In the
second and following years, the mandatory minimum rises
to 40%, with a State encouraged goal of 70%.
– http://www.doa.state.nc.us/PandC/keyword.htm#C
Why a Purchasing/Finance
Manual?
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carrying out the purchasing process in the best interest of the
Newton-Conover City Schools, the taxpayers of Catawba County, and
according to N.C. General Statues, local Board of Education
procedures, and recognized professional purchasing practices.
getting maximum benefits from the school system's monies for the
students.
providing a climate of fair and open competition for all qualified
vendors.
purchasing goods and services expediently and awarding bids to the
lowest responsible bidder. The lowest responsive and responsible
price allows consideration of terms and conditions, delivery
schedules, types and degrees of service, inspection, transportation
and delivery cost, warranties, etc.
assuring that bids are complied with in terms of price, quality, and
service requirements.
General Provisions
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Each school/department is responsible for:
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(a)
(b)
(c)
(d)
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(e)
(f)
(g)
(h)
(i)
The selection of responsible vendors
Issuance of all requisitions
Searching for new products and services
Preparing and/or providing assistance with
preparation of specifications for products or
equipment
Obtaining bids for purchases exceeding $1,000
Evaluating bids to select the lowest responsible bidder
Pre-auditing funds before requisition is prepared
Obtaining repairs for equipment
Confirming prices on goods/services with a cost of
$500.00 and under $1,000, which do not have to be
bid
General Provisions
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In selecting vendors, the purchaser
will consider:
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Quality
Price
Ability to deliver
Warranties or guarantees
Service
Conflict of interest
General Provisions
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In evaluating price quotations, the following will be
considered:
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(a) Price
(b) Quality of item offered
(c) General reputation and performance capabilities of bidder
(d) Suitability of items for intended use
(e) Conformity with intent of specifications
(f) Conformity with terms and conditions of the invitation to bid
(g) Conformity with mandatory site visit (if specified)
(h) Recommendation of the end user
(i) Future cost relative to sustainability
Procedures
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The following apply only to the items
not covered by a term contract….
Purchases up to $999—price
quotations are not required; however,
competitive prices should be sought
whenever possible.
Procedures
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Purchases over $1,000 but less than
$2,500
– Three quotes must be obtained, either written
or telephone quotations.
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Purchases of $2,500 but less than $5,000
– Written invitation to bid and written
responses. Faxed quotations are acceptable.
Procedures
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Purchases of $5000 but less than
$90,000
– Written informal quotes
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Purchases greater than $90,000
– Must be handled through a formal bid
process
The maximum applies to the total order rather
than a line item cost.
Procedures
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Equipment, materials, and supplies not covered by any existing
contracts may be purchased locally after seeking competitive
quotations according to purchasing procedures already
identified. Bid dates and bid selection criteria must be fully
documented. Items may not be divided to avoid this
provision.
Generally, purchases requiring prepayment are not allowed
because we are approving payment before the goods or
services are received. Exception could be made on an
individual basis if the goods/services are essential, no other
source is available, and reputation of the company/person is
beyond reproach. Another exception could involve travel, such
as airline tickets. Good purchasing practices, however, require
that invoices not be paid until the goods/services are received.
Procedures
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Construction of repair work with third parties is governed by
Chapter 143, Article 8 of the General Statutes. All such
contracts are to be handled by the Finance and Maintenance
Departments.
The technology director and finance director are responsible
for maintaining information regarding telephones lines for
school system locations. Additional telephone service
requests and/or additional lines must be approved by the
technology and finance director. Additional lines or additional
services, upon approval, will be ordered as requested and the
invoice will be sent to the school for payment each month.
Procedures
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All transactions over $1,000 must be documented. This includes a
record of all quotes received, written and verbal, and written
justification for awarding to other than the low bidder. All purchasing
files, regardless of dollar value must be maintained for five years.
The form used for written quotes should:
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Clearly identify its purpose (ex. Request for quotes)
Identify the agency by name
Provide the FOB destination address, a clear description of
the item needed, the return by date, the state’s terms and
conditions (must clearly state shipping terms)
Provide a signature section for the company representative to
sign confirming the price and certifying that the quotation
was made competitively and without collusion
Provide a space for delivery time and all other specific
requirements applicable to the purchase (for example, any
additional cost for setup, additional yearly maintenance fees)
Allow at least 10 calendar days for the return unless this
requirement is justifiably waived
Procedures
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Lack of competition
Waiver of Competitive Bidding
Rejection of Bids
Award of Bids
Sole Source
Page 23 and 24
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Also page 45 and 48 forms to use for
phone quotes and written quotes
Contractual Services
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Service needed clearly identified
Highest level of service for most reasonable
cost
Requisition completed identifying services to
be provided and the anticipated cost. Copy
of signed contract should be attached. The
contract should be very specific to the work
to be performed. What, when, who, why
should be included on the requisition,
contract and follow through on the purchase
order.
Contractual Services
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The purchase order will state that the payment will not be
made until the services have been complete and the
appropriate invoice is received and approved for payment by
the person who initiated the service request.
The invoice should be submitted after the service is provided
and should state the following: description, date, and cost of
the service and number of the purchase order. The invoice
must be very descriptive as to what service was performed,
when it was performed and any other information necessary
for payment of the invoice.
This is a federal requirement to have this level of
detail for contract services. The contract can not
say for services performed.
Contractual Services
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A purchase order can be issued for a single
occurrence or for multiple days or months of
service through means of a blanket purchase;
however, the actual invoice or invoices for regular
or blanket purchase orders must state the dates of
service, description of the service, and cost. (See
the contract service form for guidance; however,
this form is not required because an individual or
company may have their own contract.) Page 50
Preparing Purchase Requisitions
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Requisition to be completed by individual requesting items. (A paper
requisition is attached for use by individual requesting needed
supplies) p.51
After approval from supervisor, the individual responsible for entering
requisitions enters the on-line requisition.
After the on-line requisition is entered, a printed copy is sent to the
purchasing director for approval. Attached should be any phone
quotes or written quotes or other necessary information to show
competitive bidding took place. Also, if contract services, a copy of
the contract should be attached.
Once the purchasing director has approved, it will be forwarded to
the finance director. The finance director will then approve the
requisitions on-line.
No requisition will be approved if there is no budget amount in the
account code or if the expenditure is greater than the budget
amount in the account code. A message will be sent to the
originator to re-code the requisition or to determine other funding
sources.
Open Purchase Orders
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As an internal control issue, effective July 1,
2007, all credit cards should be canceled. You
will no longer be able to use credit cards as a
means of procuring purchases. Open purchase
orders will be used to obtain items from local
vendors.
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The dollar limit on open purchase orders is $750
except for maintenance which is $1,000.
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Open purchase orders are not to be used solely
for convenience.
Open Purchase Orders
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Once the items have been picked up, the individual will sign
and turn in the receipt along with a copy of the purchase
order to the school treasurer or other individual responsible
for approving open purchase orders. The school treasurer or
other responsible individual will verify that the items
purchased were appropriate items and also sign the receipt
and then forward to the finance department immediately for
payment. Two signatures will be required on the receipt.
The following credit card vendors have been set up to accept
open purchase orders:
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Harris Teeters
Sam’s Club (still working on setting this up)
Wal-mart
Lowe’s Home Improvement
Pressing Need/Emergency PO
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We have put measures in place for
emergency purchase orders. You can
read the details on page 31 of the
purchasing/finance manual
Receiving Procedures
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In order for the finance department to determine an invoice to be
payable, the receiving procedures are essential.
When purchase orders are issued, the yellow receiving copy of the
purchase order will be sent to the appropriate school/department and
the pink copy is kept in finance.
When complete orders are received, all relevant data on packages,
cases, individual items, etc. should be matched against the yellow
receiving copy of the purchase order, and quantities received should
be verified. The receiver should then verify, stamp, sign and date the
yellow copy. The yellow copy should be stapled to the vendor's
invoice and sent to the Accounts Payable Department for payment
processing.
If all items are not received and back-orders will not be accepted, the
necessary adjustments should be made on the yellow copy. It should
then be signed and forwarded to the Accounts Payable Department.
Once the yellow copy has been forwarded to the Accounts Payable
Department, back-orders should not be accepted.
Receiving Procedures
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When partial orders are delivered to the schools/departments, the
receiver should indicate by check marks ( ) which items are
complete and by writing the quantity received in numerals by items
which are incomplete.
The receiver should attach vendor invoice to the yellow receiving copy
of the purchase order.
The receiver should make a copy of the yellow purchase order, write
partial order on the copy, stamp, sign in the receiving space and
forward the copy to the Accounts Payable Department.
Each time a partial shipment is received against the order, this process
should be completed.
When the final shipment is received, the yellow copy should be
marked complete, signed and forwarded to the Accounts Payable
Department.
Fixed Assets
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GASB 34
What is a fixed asset?
– $700 or useful life of 1 year or more
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Example, tv may not be $700 but would be a
fixed asset. Something we would report if
stolen.
Fixed Assets
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Finance department will complete acquisition form with as much data
as possible from invoices and send to designated person at
school/department.
The designated person where the fixed asset is located will complete
the remaining portion of the form, attach the fixed asset tag and
return the completed form to finance.
The fixed asset contact person will be responsible for notifying the
finance department when assets are removed from inventory or
transferred.
The technology department will be responsible for tagging and
completing the fixed asset acquisition/retirement forms on all
computer equipment.
Forms on page 43 and 44
School Property Disposal
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Items that are declared surplus will be
disposed of in three following methods:
– Sold at a public auction
– Sold through NC Department of Administration,
Division of P and C surplus Property System
– Delivered and sold to the local scrap metal buyer
for the current market value scrap metal.
Staff Development Monies
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A requisition should be submitted to the finance office for approval
by the finance director and/or superintendent. The requisition
should identify the vendor where food is to be obtained (grocery
store, catering service, child nutrition, etc.), a description of the
workshop activities, date of the activity and the cost of the
refreshments. A copy of the agenda and number of attendees or
participants must be attached to the requisition.
Every effort should be made to use state funds when available and
you have 20 participants or more. With 20 participants or more,
state funds can be used to pay $4.00 per person per day.
If there are fewer than 20 participants and/or cost for food exceeds
$4 per participant local funds must be used.
Staff Development Monies
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Meals should not be served for meetings that are less than four
hours. If a meeting is four hours or longer, a meal can be served
using the $4.00 allowable by state, and supplemented with local
dollars to a maximum not to exceed the state rate used for lunches
for travel reimbursement. (In order to use the $4.00 allowable by
state, you must have at least 20 participants, otherwise local funds
must be used.)
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If the workshop is less than 4 hours refreshments can be served but
should be limited to $2 per participant.
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Every effort should be made to use the Child Nutrition Department,
as they are typically more cost effective.
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If any question exists about whether an activity is appropriate for
use of staff development monies, finance director should be
consulted for prior approval.
Staff Development Monies
Excerpts from the NC Public Schools Travel Policies and Regulations
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LODGING: Written authorization by an official designated by the
local superintendent must be obtained in order to qualify for
reimbursement for overnight stays. Supervisory personnel certifying
the reimbursement request as necessary and proper must require
documentation from the traveler to substantiate that the overnight
lodging was necessary and accomplished.
Reimbursement - Specific dates of lodging must be listed and
substantiated by a receipt from a commercial lodging establishment
not to exceed $63.75 for in-state and $75.50 for out-of-state.
Excess - Excess lodging authorization must be obtained in advance
from the local superintendent/or finance director. Excess lodging is
allowed when the employee is in a high cost area and unable to
secure lodging within the current allowance. Every attempt should
be made to room together when possible to lower the individual rate
per room.
Staff Development Monies
Excerpts from the NC Public Schools Travel Policies and Regulations
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Meals
– Breakfast
– Lunch
– Dinner
In-State Out of State
7.50
9.75
16.75
7.50
9.75
19.00
Staff Development Monies
Excerpts from the NC Public Schools Travel Policies and Regulations
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Daily travel (overnight)
– Breakfast-depart prior to 6:00 am
– Lunch-depart prior to 10:00 am
– Dinner-return after 8:00 pm
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Daily travel (not overnight)
– Breakfast-depart 6:00 am and extend the work day by 2
hours
– Lunch-not allowed if not overnight stay
– Dinner-return after 8:00 pm and extend the work day by 3
hours
– Must also involve a travel destination at least 35 miles
from the employee’s regular assigned duty station.
Grant Applications
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All grants submitted by departments are to
be reviewed by the Finance Office prior to
being submitted to the granting agency.
Individual school grants exceeding $5,000
must be reviewed by the Finance Office
prior to being submitted to the granting
agency. Individual school grants exceeding
$5,000 will be processed through the
Finance Office; this includes reviewing and
disbursing funds.
Stipend Request
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This form is to be used when paying
staff additional compensation for
attending a workshop or for duties
performed outside of the normal
workday. A stipend cannot be paid if
the employee is attending the
workshop during the regular school
day and is on payroll. Page 42