Wimberley Independent School District Purchasing Guidelines I. RESPONSIBILITY FOR PURCHASING A. Statues, Regulations, and Board Policy Applicable to Purchasing B. Purchasing Authority II. LEGAL BASIS FOR BIDS, PROPOSALS AND QUOTATIONS III. PURCHASING PRINCIPLES A. Purchase Orders IV. INTERNAL PROCEDURES A. Specifications B. Vendor List C. Equipment Warranty, Maintenance, Repair D. Open Records E. Sales Taxes F. Delivery and Receipt of Orders G. Verification of District Data
Preface The Wimberley Independent School District s Purchasing Guidelines are intended to be a guide to help you understand purchasing procedures for our district. By providing information concerning the procedures for purchasing and bidding, these Guidelines will assist you in understanding the complex financial requirements of the educational world in which we live. The main focus of the Business Department s purchasing function is to facilitate the acquisition of goods and services in accordance with state and federal law in order to meet the needs of schools and departments. Our focus is on educating staff members primarily responsible at the campus and department levels for purchasing so that they can make most purchases directly. The Wimberley ISD utilizes a decentralized purchasing decision making process. From a purchasing perspective this means the schools and departments (the end-users) determine what they need and when they need it. These subject matter experts determine how to best meet the needs of our students. However, the final commitment of District funds can only occur by the Business Department
I. RESPONSIBILITY FOR PURCHASING Statues, Regulations, and Board Policy Applicable to Purchasing 1. Texas Education Code (Primarily sections 44.031 through 44.033). An electronic version of the Texas Education Code can be obtained by going to the Texas Education Agency s website (http://www.tea.state.tx.us/), click on the tab A-Z Index, click on the letter T at the top, and then click on Texas Education Code. 2. Complete purchasing policy and procedures followed by the district may be found in the Texas Education Agency Financial Accountability System Resource Guide (FASRG) in the Purchasing Module. 3. FASRG can be accessed through the TEA website at: http://www.tea.state.tx.us/, on the left had side click Funding, then FASRG. 4. Board policies pertaining to purchasing can be accessed through the Wimberley ISD website at: http://www.wimberleyisd.net/, click on Board, About the Board, and then Board Policies. Purchasing Authority 1. The following persons are delegated the authority to act as agents for Wimberley ISD in carrying out the purchasing activities of the district: a. Superintendent b. Chief Financial Officer 2. Each Principal acts as purchasing agent for all expenditures made from his/her campus Activity Fund. II. LEGAL BASIS FOR COMPETITIVE BIDS & QUOTES A. Bids, Proposals and Quotes Unless property or a service agreement has been previously approved for contract award by the Board of Trustees or property or service is available through a cooperative purchasing agreement (such as the Texas Comptroller of Public Accounts, TCPN, or the Buy Board), the following guidelines shall be used to determine to select the vendor representing the best value to the district. Personal Property: It is the intent of the Wimberley ISD to utilize the many purchasing co-operatives that it is a member of to satisfy the legal requirements of the purchasing function. These purchasing co-operatives are 3
intended to increase the purchasing power of government entities throughout Texas. Each product and service on the co-operatives have been competitively bid and awarded based on Texas Statutes, thereby satisfying the requirements under Texas Education Code 44.031 (a); (b). To obtain a listing of the purchasing co-operatives, along with a listing of vendors, contact the Business Office. a. When a single item to be purchased is more than $3,500.00, but less than $10,000.00, and the vendor is not on a purchasing cooperative, at least three (3) written competitive price quotations are required. Written quotes may be faxed from the vendor. All quotes are to be submitted to the Business Office with the purchase request/order number written on the quote. You may also scan the quotes and attach it to the electronic requisition. If an item other than the low price is selected as the best value for purchase, the rationale for this decision shall be documented and also submitted to the Business Office b. When a single line item or a group of similar line items to be purchased is more than $10,000.00 contact the Business Office for procedures. (See Board of Trustees policy, CH (LEGAL/LOCAL) and Texas Education Code, Sec. 44.033). c. When a single line item or a group of similar line items to be purchased is more than $50,000.00 ($25,000.00 for federal money) contact the Business Office for procedures since contract award must be accomplished by the Board of Trustees. (See Board of Trustees policy, CH (LEGAL/LOCAL) and Texas Education Code, Sec. 44.031). Services (Consultants): All consultants must use and sign the District s consultant agreement form. To obtain copies of this form please contact the Business Office. a. When professional services are to be acquired, there is no requirement to obtain price quotations, however it is normally a good business practice to compare the qualifications and to evaluate experience, obtain references, etc., from at least three (3) sources. b. When non-professional services are to be acquired, written quotations or proposals are normally requested from at least three (3) sources (if available) when the amount to be purchased is more than $5,000.00. Examples of non-professional services are: radio advertising, billboards, etc. Copies of written quotations/proposals along with the rationale for vendor selection are approved by the campus principal or department director and attached to the business office copy of the purchase order. c. When non-professional services are to be acquired and the projected expenditures are more than $50,000.00 ($25,000.00 for federal money) contact the Business Office for procedures since contract award must be accomplished by the Board of Trustees. (See Board of Trustees policy, CH (LEGAL) and Texas Education Code, Sec. 44.031). Receiving procedures: a. When goods or services are received, the person receiving the goods or service must make sure that the district receives the item(s) ordered. Inspect the goods or service and sign and date the packing slip, invoice, and/or the common carrier delivery ticket. You can also receive the items online via the District s financial management software. Note any exceptions on these documents prior to the delivery person departing. 4
b. Attach the packing slip, invoice and/or delivery ticket and submit it to Accounts Payable in the Business Office to effect payment. c. District personnel receiving property or services for the district need to be certain that all items are accounted for. d. If the delivery is partial delivery with some items back-ordered, then make a notation of this partial payment on the documentation submitted to Accounts Payable. Remember to fully receive the purchase order once the remaining items are received, in order to close the transaction. e. Forward documentation to Accounts Payable as soon as possible after items are received. Vendors making deliveries are entitled to prompt payment for their goods or services. Follow-up Procedures: a. When items ordered have not been received within a reasonable time period (e.g., 30 days), the using activity (campus or department) should follow up on the purchase order by calling the vendor to determine if the purchase order was received and, if so, when the delivery may be expected. b. If it is determined that the item(s) ordered will not be received for any reason or that the length of time involved means that the order should be canceled, notify the Business Office by sending a copy of the purchase order marked Void - Order Canceled and sign and date the copy, and indicate the name of the person and date contacted, at the vendor s place of business. Make sure that the vendor knows the order is canceled. The vendor should be advised in writing that a purchase order is canceled. c. Contact the purchasing office if assistance is needed to cancel purchase orders. The District does not assume responsibility for debts incurred by persons making unauthorized purchases. III. PURCHASING PRINCIPLES The Purchasing Prime Directives Approval for purchases must be made prior to purchase. Request for payment without a purchase order approved by the Business Office will become the responsibility of the person ordering the merchandise. General Guidelines Before a purchase order is issued and purchases are to be made, the Business Office must approve purchases via the District s online financial management software s (Skyward) purchasing module. 5
Materials for preview must follow the same purchasing procedures as detailed in this section. Employees should not purchase materials with their own money with the intention of being reimbursed by the district. Instead, the purchasing procedures outlined in this section should be followed. A. Purchase Orders No purchases are authorized without issuance of a purchase order, as payment will not be made for such purchases. Anyone creating or authorizing such a commitment prior to securing a purchase order number will be held personally liable for payment of such agreement and/or may be liable to prosecution under the Texas Penal Code Chapter 39 Abuse of Office, Section 39.01. General Purchase Order Procedures 1. Purchase Orders are processed on a daily basis. Once a purchase order is approved by the Business Office the budgeted funds are encumbered at the same time. A purchase order is considered to be only a purchase request until approved by the Business Office. 2. Contracts for Purchase will be put into effect by means of a purchase order(s) executed by the respective campus/department after bids have been awarded to purchase goods or services. 3. The merchandise should not be ordered until the purchase order has been returned to the campus. 4. If it becomes necessary to change the terms of a Purchase Order, the school or department must first advise the Business Office. The Business Office has the responsibility to adjust the encumbrance on the Purchase Order. 5. Once a Purchase Order is issued, the same P. O. number cannot be used for reorders. 6. In the event it is necessary to cancel a Purchase Order, the requisitioning individual must advise the Vendor. The Business Office will then liquidate the encumbrance. 7. The Business Office will: a) Verify compliance with bid laws b) Verify correctness of coding, and 6
c) Give final approval if everything is in order or reply via email to the requisitioning individual or if a problem exists. 8. Following final approval, the purchase order will sent back to the requisitioning individual. The order may now be placed. 9. When all merchandise/goods/services/expectations have been received on the purchase order, the requisitioning individual receives the purchase order and submits it to Accounts Payable for payment. IV. INTERNAL PROCEDURES A. Specifications 1. If an item cannot be purchased from a purchasing co-operative and it is determined that a bid advertisement must take place, preparation of specifications shall be the responsibility of the requesting school or department. The responsibility of the Business Office is to review the specifications to determine whether competitive bids can be obtained and assure that Board policies and state laws are followed regarding the purchase. 2. Specifications must contain adequate technical descriptions to clearly identify for prospective bidders the type of material, equipment, or services required. In addition to the detailed specifications, brand names or equal, model numbers, and like descriptions may be referred to as product meeting specifications to inform prospective bidders of the type of quality required. Descriptions must include quantitative data such as size, weight, or volume and qualitative data such as commercial grade, texture, finish, strength, chemical analysis, or composition where possible. B. Vendor List Wimberley ISD has inter-local agreements with the following purchasing cooperatives: 1. BuyBoard 2. TCPN 3. Region 20/13 4. TIPs/TAPs 5. State of Texas (DIR, CMBL, TxMASS) 6. Choice Partner s 7. 1GPA 8. CTPA 9. US Communities 10. TexBuy 11. Texas 20 7
For information (including vendors) on the above purchasing co-operatives please contact the Business Office. C. Equipment Warranty, Maintenance, and Repair For repair of equipment that has been received and paid, a School or Department has one of the following options: 1. If the equipment is under warranty, contact the vendor from whom it was purchased. If the product was purchased through a District bid, contact the Business Office. (Warranties start the day the equipment is received even if school is not in session and the item is not put in use right away.) 2. If the equipment is no longer under warranty, contact the Maintenance Department for repair assistance. 3. For those items covered by outside maintenance contracts such as duplicating equipment, and copiers, contact the appropriate service company holding a maintenance agreement with the District. 4. For all computer equipment, contact the Technology Department. D. Open Records All information collected, assembled or maintained by governmental bodies pursuant to law or ordinance or in connection with the transaction of official business is public information and available to the public during normal business hours of any governmental body with certain exceptions. Three exceptions clearly concern the purchasing operation found in: Texas Education Code Title 110A, 6252-17a, Section 3 1. information, which if released, would give advantage to competitors or bidders; 2. information pertaining to the location of real or personal property for public purposes prior to public announcement of the project, and information pertaining to appraisals or purchase price of real or personal property for public purposes prior to the formal award of contracts therefore; 3. trade secrets and commercial or financial information obtained from a person and privileged or confidential by statute or judicial decision; The concern is that information is not disclosed at inappropriate times leaving the District unprotected. E. Sales Taxes 1. Wimberley Independent School District is exempt from the payment of state sales taxes by the fact it is a political subdivision of the State of Texas. 2. Staff members may not use the District's tax-exempt status for purchases of personal property. Anyone avoiding the payment of sales tax by using this exemption may be liable for prosecution under Texas Penal Code, Chapter 39, Abuse of Office, Section 39.01. (This also applies to booster clubs, PTOs and other outside 8
organizations they must apply and receive their own tax-exempt status.) 3. All Purchase Orders notify vendors of the District's tax-exempt status. When placing a confirming Purchase Order with a vendor, the school or department should indicate to the vendor that the District holds this exempt status and should not be charged tax. F. Delivery and Receipt of Orders 1. Orders will be delivered to the appropriate campus/office. 2. Do not allow vendors to deliver goods to a campus if the purchase order states otherwise. If they try to do so, direct them to the appropriate campuses. 3. All orders must be inspected within five (5) days. Claims for damages or incorrect orders need to be submitted promptly to the vendor. 4. Returning orders - Contact that vendor directly for pickup instructions. G. Verification of District Data Before checks are written purchase orders are matched against invoices for amounts, vendor information and expenditure coding, and receiving documentation showing acceptable receipt of goods and/or services. The Business Office makes available budget activity printouts to each principal/department head. This helps detect any coding errors on individual budgets. 9