4.A.10 Purchasing

Business Administration

 

 

Administrative Procedure: Purchasing

 

EFFECTIVE DATE:

October 27, 2004

 

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ADMINISTRATIVE PROCEDURE CODE:

4.A.10

AMENDED DATE:

 

Policy Reference

 

 

Legal Reference

 

 

 

 

 






















PURCHASING

The purchasing and distribution of necessary supplies, equipment, direct services, and related auxiliary services for use in educational programming represents a significant expenditure in the Divisional budget.  These items must be procured efficiently and economically. All purchases are to be made competitively without prejudice and should seek maximum educational value for every dollar expended. Purchasing  shall be in compliance with the Public Schools Act and the established guidelines and procedures.  The Secretary-Treasurer will be responsible for overseeing the acquisition of all goods and services in accordance with budget provisions and/or by Board motion.

 

Guidelines

 

  • The Secretary-Treasurer shall establish and maintain procedures that ensure all purchasing is done according to policy and the requirements of the Public Schools Act (PSA).
  • The authority to purchase may be delegated to other administrators within their area of responsibility.
  • Opportunity shall be provided to all responsible suppliers to do business with the Border Land School Division.The Division shall take into consideration the past and projected performance of a company as it pertains to such areas as the procurement of goods, the quality of goods provided, and the satisfaction of service.
  • As stated in the PSA, no employee of the Division shall act as agent for any person in promoting the sale of anything for use in a school in the Division, or receive any remuneration or other compensation for the sale or promotion thereof.
  • Subject to the PSA, all expenditures for provision of goods and/or services exceeding $20,000 shall be made by public tender, except when emergency situations exist requiring immediate availability of goods or services.
  • For expenditures less than $20,000, invitational tenders and/or the request for price options may be made when, in the opinion of the Secretary-Treasurer or designate, it is to the advantage of the Division.
  • Purchases are usually awarded to the lowest tender that meets specifications within budgeting limits.A tender that is incomplete or does not meet specifications will be rejected.The Division reserves the right to reject any or all tenders.
  • Items commonly used in one or more locations shall be standardized whenever:
    • An increase in efficiency and economy will result.
    • Consistency with educational goals is a factor.
  • The materials, equipment, supplies and/or services to be purchased shall be of the quality required to serve the function in a satisfactory manner, as determined by the specifications and the judgement and expertise of appropriate Division Office personnel.
  • The purchasing activity of the Division is designed solely to serve the school system.Major purchases for individuals will not be made through the Division or through the schools, unless authorized by the Superintendent, Secretary-Treasurer or the Board.

 

Procedure

 

The following systems are available to schools/departments to be used in the procurement of goods and/or services:

  • Direct-to-Vendor System
  • Purchase Order System (PO)
  • Local Purchases:
    • Cash payment to supplier from school funds and claim for reimbursement.
    • Under certain circumstances or subject to the approval of the Secretary-Treasurer, arrangements may be made for central payment of local purchases direct to the supplier (i.e. home economics program, auto shops program, cafeteria supplies).

 

Each system is described as follows:

 

Direct-to-Vendor System

 

Under the Direct-to-Vendor system, the Division may contract with vendor(s) for the supply and delivery of certain commonly used and/or ordered items of equipment and/or supplies at a fixed price and quality.

 

 

To purchase supplies Principals/Administrators will be required to use the following procedures:

 

  • The Division will develop a catalogue of available items.
  • Schools are required to:
    • Generate and provide the purchase order, properly approved by the school administration, to the supplier.
    • Approve the invoice by signing/dating as to verifying satisfactory receipt of goods/services.
    • Code the invoice with the proper school budget category account number.
    • Forward the completed purchase order to the accounts payable department to be processed for payment.
  • Vendors will invoice the Division directly.

 

Purchase Order (PO) System

 

Under the Purchase Order System:

 

  • School/departments may submit a purchase order to the Division Office for those items of equipment, furniture, supplies, and/or services not available through the Direct- to-Vendor system for processing as and when the need arises.
  • The purchase order shall include:
    • An adequate description of the item(s) to be ordered
    • Name of suggested supplier
    • Estimated price for each item
    • Cost and budget category number
    • Proper approval for expenditures
  • The Secretary-Treasurer will:
    • Review all purchase orders.
    • Solicit competitive quotations/tenders in connection with all purchases whenever possible or economical.  Quotation/tenders shall be awarded to the lowest acceptable bidder complying with specifications and other stipulated bidding conditions. It is recommended that a minimum of three tenders be considered.

 

 

 

 

 

 

 

 

  • The Division Office will:

 

  • Ensure that the equipment and/or supplies to be purchased are of a quality required to provide satisfactory service as determined by the school/department and the Secretary-Treasurer, with preferred consideration to those labelled environmentally responsible items.
  • Make alternate suggestions to the school/department if, in the judgement of the Secretary-Treasurer, the specifications of the item would restrict competition to otherwise preclude the most economical purchase of the required item.
  • In consultation with the school/department, determine the selections of goods to be ordered.In the case of dispute by either party, the matter will be referred to the Superintendent, who shall make the final decision
  • In the case of a low bidder proposing an alternate as an equal to the item or service specified, it would be the responsibility of the Secretary-Treasurer to consult with the school/department to determine if the proposed substitution is in fact an equal.In the case of dispute by either party the matter will be referred to the Superintendent who shall make the final decision.
  • Forward one copy of each purchase order to the school.

 

Local Purchases

 

Provision is made for schools to make limited purchases against school budget allocation accounts or from local school funds and claim reimbursement.  Under certain circumstances, subject to the approval of the Secretary-Treasurer, arrangements may be made to have local purchases paid directly to the supplier.

 

Such purchases shall be made only for goods and services that cannot be obtained efficiently and/or economically through the normal purchasing procedures; or because of the nature of the program, should be purchased directly at the school level.

 

Purchases of equipment are subject to the following conditions:

 

  • The value of an individual piece of equipment shall not exceed $500 before tax.
  • Equipment purchased by the school is to be entered on the school fixed asset inventory list of the school/department.

 

Reimbursement of local purchases or direct payment of local purchases shall be made only on the approved form supplied by the Secretary-Treasurer and certified by the principal.  Invoices, voucher receipts, or a statement certified by the principal shall be provided for all purchases.

 

In the case of a cash register receipt being the only supporting documentation provided by the vendor, schools/departments are required to complete the Miscellaneous Purchases Reimbursement Form (for audit purposes) describing the purchase. 

 

MISCELLANEOUS PURCHASES REIMBURSEMENT FORM

 

(This form is to be completed by the individual requesting reimbursement.  This will provide supporting documentation for receipts without name and detail and is to be submitted with the reimbursement claim.)

 

School/Department_________________________________Date ___________________

 

Person Requesting Reimbursement ___________________________________________

 

                                                       Detail: List Items purchased

 

 

 

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Duplicate form for your use.