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Purchasing Procedures: DJB-R

  • Fiscal Management: D
Purchasing Procedures: DJB-R
Updated
  1. The unit administrator will be responsible for the review and approval of purchase orders originating from within his/her scope of budgetary authority.
  2. The purchasing power of the district shall not be used to obtain goods or services for the private use of any employee.
  3. Any employee who makes an unauthorized purchase will be held personally liable for that purchase.
  4. All purchases must be charged to the correct budgetary account (not only where funds are available).
  5. The department or office requesting the purchase of goods and/or services shall maintain records as to the status of all such requests and shall be responsible for verifying that the items actually received were the items and quantities ordered. The finance office will process payment only after receiving the necessary paperwork from the department/office making the purchase.
  6. Requests for receiving items to preview should still cause a purchase order to be activated. If the items are kept, a written notification to the finance office requesting payment must be made.

The following type of purchases may be made:

Purchasing Card

The Procurement Card Program is intended to streamline and simplify the Purchasing and Accounts Payable functions by using a procurement card for low-value purchases. The procurement card is a tool that reduces transaction costs, facilitates timely acquisition of materials and supplies, automates data flow for accounting purposes, and offers flexible controls to help ensure proper usage. The purchasing card is the preferred method for the purchase of low cost items. Purchasing cardholders:

  1. understand that they are being entrusted with a School District Purchasing Card for the purposes of making authorized purchases on behalf of the District.
  2. understand the requirements for using the card in accordance with the District Cardholder Handbook.
  3. understand and follow cardholder controls identified for each user by the Authorizing Official (principal/supervisor).

All employees participating in the Procurement Card Program must sign the Cardholder Agreement.

Petty Cash

Petty cash will be issued at the beginning of the school year. This money is to be used for instructional or office supplies and materials. This fund is made available for purchase of items of $50.00 or less.

  1. Petty cash will be kept in a locked strong box and one person given responsibility for all disbursements.
  2. Merchandise is purchased with cash and the purchaser obtains a receipt from the vendor. (Sales tax exemption certificates are available and should be used.)
  3. Purchaser is reimbursed from to the petty cash fund upon presentation of a vendor's receipt and by signing a petty cash voucher.
  4. The vendor's receipt is attached to the signed petty cash voucher and placed with the petty cash fund. The sum of the signed petty cash vouchers and the sum of cash on hand shall equal the total petty cash fund at all times.
  5. To replenish the petty cash fund, a petty cash fund balance sheet must be completed with all petty cash expense forms and receipts attached and forwarded to the finance office for issuance of a reimbursement check.
  6. Petty cash shall not be loaned or used for check cashing services or for any other reason that is for the personal benefit of an individual.
  7. Petty cash funds in schools must be closed for the summer months by reconciling the account at the end of the school year and forwarding a final reimbursement request to the finance office along with any cash balance.

Purchase Orders

  1. A purchase order request is completed by the individual requesting the purchase and submitted to the unit administrator for approval.
  2. Approved requests are entered into the computer system at each site.
  3. Availability of funds is checked at time of approval. If funds are not available, the computer will not approve the requisition on purchase order. Budget transfers must be initiated.
  4. Approved requisitions are forwarded to the finance office through the computer system which processes, prints and distributes the purchase order.
  5. The vendor will ship the merchandise to each individual unit, referencing the purchase order number. The unit will check the merchandise and if acceptable signs for the receipt of the merchandise and forwards the documentation to the finance office.
  6. When the receipt record, purchase order and invoice are reconciled, the finance office will process payments.
  7. If the school/department receives an item(s) that is not wanted after it was ordered, it is the unit administrators’ responsibility to re-package the product, affix address labels and return the merchandise to the vendor and to notify the finance department of the rejected merchandise to protect against inadvertent payment of the invoice submitted directly to the Finance Department.

“Open” Purchase Orders

"Open" purchase orders limited to $5,000 may be requested by a unit administrator where direct purchasing is required. For example, Brighton High School could request an "open" purchase order to be issued to a supermarket for Home Economics, designating the authorized person who may charge groceries.

  1. The authorized person must sign the charge slip and provide the purchase order number on the charge slip.
  2. The person responsible must provide all charge slips, invoices, etc. to the finance office for payment.

Request for Payment

This procedure applies to purchase and services for where no purchase order has been issued and should apply only to the following:

  1. Recurring expenses, such as utilities, for which there is a short elapsed time between commitment to pay and time of actual payment.
  2. Expenses which cannot be handled through the normal purchase order process or petty cash procedure. Examples would be postage meter reimbursements, payment of dues for professional organizations, subscription renewals.
  3. Personal credit card use is strongly discouraged. Personal credit cards are to be used only when no other method of payment is available. Reimbursement will be made when a Request for Payment is accompanied by an original receipt.

Cash Change Funds

From time to time it is necessary to issue cash to individuals or units for the purpose of making change at a school site for payment of fees during enrollment or on activity where admission is charged on goods sold.

  1. Such cash fund should be established by a check written against the activity fund or unit budget, and these funds should remain intact for the period needed.
  2. No amounts should be added to cash charge funds except by properly authorized check and no cash change fund can be expended for any purpose.
  3. Cash change fund should be established and handled in the same manner as petty cash funds.
  4. Cash change funds should be retained in a separate strong box in the school office and amount "checked out" as needed using a cash change funds form.
  5. A copy of the cash change fund form (sample attached) should be completed in duplicate with the original copy placed in the cash change fund box and the copy given to the authorized individual or organization checking out the funds.
  6. When the funds are returned, the original copy of the form is removed from the box and both copies are marked "cash returned." The duplicate copy is then retained by the individual or organization to serve as a receipt for the return of the money.

Memorandum of Agreement

In most cases, the payments to consultants, speakers or other services where a receiving report would be inappropriate, is handled by a memorandum of agreement. The memorandum of agreement will be used only for independent contractors as determined by IRS regulation. It is very important that the originator of the agreement clearly identify what services are expected. Appendixes should be attached if the space on the form is not sufficient to clearly identify these services. The procedure for processing a memorandum of agreement is as follows:

  1. The originator will prepare the agreement including all monies to be encumbered as well as the account to be charged and necessary signatures and forward to the Finance Office.
  2. The Finance Office will send the proper copies to the independent contractor and the originator.
  3. Upon completion of services, the originator will forward a copy of the memorandum of agreement attached to a request for payment form to the Finance Office for payment.
  4. The Finance Office will make payment to the independent contractor.