Rules and Procedures for Disbursements These are the rules and - PowerPoint PPT Presentation

Rules and Procedures for Disbursements These are the rules and procedures you must follow to ensure your school’s expenditures are appropriate and adequately documented.

Where do you find the rules and procedures?  Redbook - Financial and Program Cost Accounting and Reporting for Florida Schools - Chapter 8 (this is state statute and a link to the Redbook can be found on the Auditing Website under “Resource Links”.)  School Board Policy (Policy Manual can be found on the district website. Go to “About Us” and choose “District Bylaws and Policies”.)  Manual of Internal Fund Accounting - Expenditures are found in Chapter 6 (this is our procedure manual and a link to the manual can be found on the Auditing Website under “Resource Links”.)

Two forms are used to document purchases  Manual of Internal Fund Accounting, Chapter 6 states: “ Since the purchasing of goods and services results in the expenditure of school funds, two required forms are used to document the process: the purchase requisition and the purchase order. “

Expenditures must have prior approval  Redbook, Chapter 8, Section III 3.2(a) states: “A signed commitment from the principal or designee(s) must be on file before any purchase is made.”  Redbook, Chapter 8, Section III 2.3 (d) states: “…Disbursements shall be approved by the appropriate organization officer, the sponsor, and the principal.”  Manual of Internal Fund Accounting, Chapter 11 states: “ any school group that wishes to perform a community service in the form of a contribution must secure the permission of the appropriate Director of School Operations, as well as the Principal, prior to engaging in any fundraising activity.”

The Internal Purchase Requisition form (PCS Form 3-2902) is the first document prepared in the purchasing process. A properly completed purchase requisition should look like this: The sponsor or teacher completing the Requisition must fill in the date on the form and also record the date that he/she signs the requisition. If club officer approval is required, that person should also date his/her signature. The principal or designee must also date his/her signature. Remember Redbook… “A signed commitment from the principal or designee(s) must be on file before any purchase is made.”

The Requisition should clearly: Document the • Vendor Information Describe the • item/s to be purchased and the cost, either exact or estimated. Document the • account name and account number

The “Purpose of Purchase” MUST be completed. It must be • specific. The purpose of the • purchase must align with the intended use of the funds. When you receive • the requisition, compare the Purpose of the Purchase to the funds that are to be used to verify that it is an appropriate use of the funds.

All funds receipted into your internal fund should be “supported” by documents which show how the funds are intended to be used. Adopt a Class Funds – Maintain a copy of the school’s adopt-a-class • solicitation form. That form should specifically state what the donation can be used for and give the parent/business a place where they can indicate how they want unused funds to be handled. Restricted Donations (6-2400.xx) – When you receive restricted • donations you should have documentation in writing from the donor specifically detailing how the money is to be spent. Example: For Teacher Appreciation to include food. Keep this documentation on file and attach a copy to the voucher packet. School Wide Fundraisers (6-2685.xx) – Maintain the Request For • Activity form for the fundraiser. This form documents the intended purpose for the profits of the fundraiser. Also, maintain the advertisement to the students/parents which tells them how the school will use the profits. This could be either a • fundraiser flyer/brochure or possibly the school newsletter. •

Appropriate use of funds in other accounts: General Administration (7-0350.00) – The General Administration • account is for expenditures pertaining to general office supplies. School Picture (7-0450.xx) – The school picture commission account • is for expenditures that benefit the general welfare of the student body; they are not intended for expenditures related to staff appreciation luncheons or any other personal expenses on staff. Un-Restricted Donations (7-0545.xx) – Unrestricted donations are • those donations that come to the school from various businesses or the general public, without a specific purpose. These funds must be spent for the general welfare of the student body; they are not intended for expenditures related to staff appreciation luncheons or any other personal expenses on staff. Vending (7-0550.86) – Vending commissions generated by • the teachers are receipted in this account and may be used for staff expenditures such as staff appreciation luncheons or staff recognition.

Did you know that the bid policy has changed? School Board Policy 6320 - PURCHASING AND BIDDING • When making purchases the following thresholds shall apply … A. $0.01 to $5,999.99: No minimum number of quotations required. The Superintendent shall have the authority to initiate a purchase without further action required. B. $6,000.00 to $24,999.99: A minimum of three (3) written quotations must be requested. No minimum number of responses are required. E-mail shall qualify as a written response. C. $25,000.00 to $49,999.99: A minimum of three (3) written quotations must be requested. Three (3) responses are required. E-mail shall qualify as a written response. Requires approval of Executive Director or above. D. $50,000.00 or more: A minimum of three (3) competitive solicitations for sealed proposals shall be requested in accordance with F.A.C. 6A-1.012(7). A public bid opening shall be conducted on the date and time when bids are due. Board approval shall be required before a purchase order may be released unless the purchase qualifies as an emergency under F.A.C. 6A-1.012(12)(e).

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (1) Equipment, supplies, forms, and postage for curricular or classroom use for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes. (2) Curricular-related travel; professional, technical, or consultant services; or other items for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes.

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (3) Articles for the personal use of any student, employee, or other person; except those items which are identifiable as being in recognition of service or promotion of school activities and those items identified under Rule 6A-1.043, FAC, Promotion and Public Relations Expenditures. (4) Personal memberships or subscriptions .

Restricted Expenditures from Internal Funds Redbook, Chapter 8, Section III, 3.0 Purchasing The following expenditures from internal funds are deemed inappropriate and shall not be made except from trust funds collected for a specifically identified purpose. (5) Salaries or other compensation for duties or assignments which are the responsibility of the school district. (6) Loans, credit, or accommodation purchases for anyone . (7) Repairs and maintenance of school board equipment for which school board funds are available. However, revenue derived from vocational education production shops may be used for these purposes.

After the requisition is approved by the principal or designee, a purchase order is to be prepared in the Manatee System  Manual of Internal Fund Accounting, Chapter 6 states: “ The purchase order is the school’s official notification to the vendor that goods or services are being requested. Based upon a properly prepared and approved purchase requisition, the purchase order is to be printed and signed by the Principal or designated administrator. “

 The purchase order is initiated AFTER the purchase requisition is approved by the principal and BEFORE a purchase is made.  The Purchase Order notifies the vendor that the items listed on the PO have been approved for purchase…. AND If a PO encumbers the funds in the accounting system so that they will be available when the school is billed.

Worth Noting…  A purchase order is not required for the following: (1.) Vending machine refills (2.) Travel reimbursement (3.) Refunds (4.) Emergency repairs (5.) Submitting funds to the district (Leases, tuition, gate receipts) For these types of expenditures … After your requisition is approved…You can create an invoice and pay from the invoice.  For School to Pay purchases, the Internal Purchase Order is made to the PCSB and is to be created at the time of the purchase. (1.) The Manatee Purchase order should be created at the same time you enter the purchase into TERMS.