DRAFT - Edl · Web viewTips and gratuities must be listed separately as they are not reimbursable Documentation from supervisor of prior approval for travel The GSA per diem rates

LLANO INDEPENDENT SCHOOL DISTRICTBUSINESS OFFICE POLICIES AND PROCEDURES

TABLE OF CONTENTSTOPIC PAGE

I. Introduction 2II. Business Office Staff 3III. Business Office Mission Statement 4IV. Account Codes 5V. Activity Funds 6VI. Athletics 7VII. Bank Accounts 9VIII. Budget 12IX. Fixed Assets 15X. Food Services 17XI. Open Records 19XII. Organization: Business Office Functions 20XIII. Purchasing 21XIV. Credit Card Use 26 XV. Records Management 27XVI. Reimbursements 28XVII. Insurance 34XVIII. Payroll 35XIX. State Sales Tax 36XX. Workers Compensation/Safety 39

Document adopted by Superintendent 8/31/2015Page 1 of 40


I. Introduction

This Business Office Policies and Procedures Manual has been prepared to provide general information about several Llano ISD business functions. Additional information may be available within the district’s Board Policies, Administrative Procedures, or other web resources.

If assistance is needed in any area of our business operations, please contact any of the staff members listed below.

***



II. Business Office Staff The Business Department staff shall perform multiple roles; however, adequate controls of separation of duties shall be maintained at all times. The staff consists of:

CFO, Jill Minshew [email protected] Manager, Cheryl Regmund [email protected] Assistant Business Manager, Jackie Center [email protected] Payable Coordinator Diana Burton [email protected] Coordinator, Sharla Wooten [email protected]

Business Office Main Phone Line: 325-247-4220

***



III. Business Office Mission Statement The Mission of the Llano Independent School District Business Office is to provide support to all District students, staff, parents, and the community and to ensure that all business operations are supportive of the instructional goals and objectives of the district.

The Business Office’s primary goal is to protect the assets of the district and to ensure that all financial transactions are performed in accordance with generally accepted accounting practices.

***



IV. Account Codes

All school districts are mandated to use the account code structure as defined in the Financial Accounting and Reporting (FAR) module of the Financial Accountability Resource Guide (FASRG). The appropriate fund, function, object, organization, fiscal year, and program intent code must be used for all financial transactions. Local use codes, such as the sub-object, shall be in accordance with district procedures.

The account code used for all financial transactions must match the intended expenditure. If funds do not exist in the appropriate account code, a budget amendment and/or transfer shall be submitted to appropriate the necessary funds in the appropriate account.

Failure to adhere to the required account code structure may result data quality errors in PEIMS reporting and the district’s financial statements. Additional consequences may be the loss of funds due to non-compliance with audit or grant requirements.

***



V. Activity Funds

Please see Activity Fund Procedures document, available on the Llano ISD web site at www.llanoisd.org

***



VI. Athletics

A. Distribution and Sales of Athletic Tickets: All receipts will be deposited to the depository bank account and accounted for by the Business Office.

i. The Principal and the Llano High School Secretary are responsible for the purchase and distribution of all season tickets.

ii. Season ticket holders are sold tickets prior to the beginning of the football season. Holders are assigned numbered seats for the home football games that season.

iii. General admission tickets are issued at the ticket booth when payment is made and collected when entering the gate.

B. Athletic Deposit Procedures

1. When the ticket booth closes, the cash collected and tickets sold are taken to a secure location.

2. All receipts will be placed in locked bank bags and the presiding administrator is accompanied to the bank by security for immediate deposit for home football games.

3. Keys to the bank bags are secured for home football games.4. The next working day the athletic deposit is released to the

Finance Secretary for home football games.5. The Finance Secretary retrieves the keys to the bank bags, and

the cash and coin is counted and compared to the tickets sold (or other documentation) and the gate box fund for home football games. Any differences are reported to the Business Office.

6. The Finance Secretary fills out the deposit slip for the Llano ISD General Operating Account, depositing athletic activity funds to 199-00-5752-00-000-0-00-000.

7. A copy of the game workers worksheet along with the yellow copy of the deposit slip is sent to the Business Office.

Purpose: to document cash received and safeguard cash receipts until deposited.

C. Tournaments: athletic tournaments are typically fundraisers for the students and student organizations involved in the athletic event. These funds are deposited to the activity fund. The activity fund then pays the General Operating checking account for the tournament officials. All officials are paid by the Business Office, from the General Operating checking account. This eliminates confusion at calendar year-end, when the Business Office produces 1099’s.



Purpose: to allow tournaments as fundraisers for the sports involved, and to provide the District with funds to pay for officials.

***



VII. Bank Accounts

A. Authorization of accounts: only the Board of Trustees may authorize new bank accounts and closure of bank accounts (excluding time deposits or other investment type accounts which are authorized by the board approved investment officer).

Purpose: limit authority to open accounts to those legally responsible for those accounts.B. Digital signatures: The use of digital signatures is currently permitted

only on the Finance Checking and Payroll Clearing accounts. The internal controls that protect the district’s assets in these transactions are as follows:

Accounts Payable: The Superintendent or Assistant Superintendent approves all purchase requisitions

and payment authorizations prior to posting in the system. This may be done electronically. This prevents unauthorized encumbrances of district funds and assures adequate review of all transactions.

The Accounts Payable Coordinator prepares invoices for payment, assures that all appropriate signatures are obtained, prints out a listing of invoices in the order that the checks will print, and submits the listing to the Chief Financial Officer for review.

The CFO reviews the documentation for appropriate signatures, vendor status and general appropriateness of the expenditure and returns the invoices to the Accounts Payable Coordinator.

The Accounts Payable Coordinator posts the transactions to the system, then prints the checks with digital signatures. The Accounts Payable Coordinator then prints the bank positive pay upload listing and submits it to the CFO.

The CFO compares the positive pay upload listing to the invoice listing to attest that it is consistent with the voucher listing.

Each accounts payable check register is electronically retained in sequential check number order.

Payroll: The Payroll Coordinator, with the help of the Assistant Business Manager,

collects nonexempt employees’ approved timesheets from supervisors, and posts all information to the payroll system.

The Payroll Coordinator prints documentation from the payroll system that supports the payroll calculation and the direct deposit amounts.

The Superintendent or Assistant Superintendent and the Chief Financial Officer each review the documentation and sign their approval.

For the employees and substitutes who are paid by check, the Payroll Coordinator (Accounting Manager for substitutes) prints the checks with digital signatures.

At month-end, the CFO reviews the checks that cleared the Payroll Clearing Account for appropriateness.



For each payroll that includes substitutes and student workers, the Human Resources secretary attests to the completeness of each new substitute’s and student worker’s employment paperwork. This assures that the District pays only substitutes and student workers who have been hired by the district.

Purpose: allow for convenience of automated signatures for high-volume accounts, while maintaining security of the district’s assets.

C. Authorized signers: the Business Office will keep copies of all valid signature cards. Copies will be maintained in a secure environment (e.g., safe or locked file cabinet with restricted access). The Board of Trustees determines authorized signers on these accounts. Two signatures are required on all checks.

The persons filling the following positions are authorized to sign checks for the respective accounts: Finance Checking, Interest & Sinking Checking, Scholarship Funds, Payroll Clearing: Superintendent, Assistant Superintendent, Chief Financial Officer, Superintendent’s Secretary, HR/Benefits Coordinator

Reynolds Scholarship Fund: Superintendent, Assistant Superintendent, Chief Financial Officer, Superintendent’s Secretary

LOGIC (General Fund, Scholarship Funds, Construction Funds), TEXSTAR and LoneStar Investment Pool (General Fund, Debt Service, Construction Funds): Superintendent, Assistant Superintendent, Chief Financial Officer

Activity Funds: Principal, Assistant Principal and/or PEIMS Secretary, and Finance Secretary

Purpose: the Trustees and district administrators must know who is authorized to sign checks for all account(s). The signature card copies and digital signature access must be secured to protect the account(s) from fraudulent signers.

D. Check requirements: all checks must be: Sequentially numbered Preprinted with the words Llano Independent School District (or appropriate

campus name for Activity Funds) on the face of the check, along with the general purpose of the account (e.g., “Llano ISD – Scholarship Fund”)

Purpose: to maintain accountability for all checks written or voided, and to assure that the person printing checks uses the appropriate check stock.



E. Maintenance of checks: the business office will maintain voided checks on the district premises or (for previous years’ disbursements) in an off-site storage facility. Currently, the district’s bank provides photocopies of canceled checks, but not the actual checks. These voided checks and copies of canceled checks will be maintained in accordance with the district’s records retention policies. The business office will maintain the stock of unused checks in a secured environment with limited access. The Accounts Payable Coordinator will account for voided checks in the accounting system. Voided checks for Activity Fund accounts are maintained at the campus level.

Purpose: to allow for audit and review of all checks written on behalf of the district, and to make blank checks unavailable to unauthorized individuals

F. Bank account reconciliations: all bank accounts (with the exception of the payroll account) must be reconciled by the Accounting Manager within 10 business days of the end of the month. Bank reconciliations should show, in detail, all outstanding checks and deposits in transit. The Chief Financial Officer and the Superintendent will review the bank reconciliations each month, verifying that the bank balances and book balances are correctly stated on the reconciliation reports, and reviewing outstanding transactions listed on the reconciliation reports (or attachments) for appropriateness. Bank reconciliations are to be stored at the business office, along with the corresponding bank statements and canceled checks or bank copies of canceled checks if the actual canceled checks are not returned. Payroll account reconciliation is performed by the Chief Financial Officer and reviewed by the Superintendent. Activity Fund reconciliations are performed by the Assistant Business Manager and reviewed by the appropriate campus principal each month.

Purpose: to allow for timely audit and review of bank account activity by individuals legally responsible for maintenance of these accounts.

***



VIII. Budget

A. Process and timeline: the annual budget process begins early in the spring semester of each year. Each campus and department will be provided budget worksheets to aid in the preparation of their budget. The Business Office will provide a budget timeline with dates for major tasks in the budgeting process. The calendar below outlines the major budget tasks and approximate dates.

Budget CalendarNovember Board approves budget process at regular board meetingJanuary Prepare proforma budgets for campuses/departments to use in preparing

budget requestsJanuary Initial preparation of salary computations and rough projections of other

expenses and revenue.March Campus enrollment projections prepared by principalsMarch – July Revenue projections for state, local and federal revenue generated

(initial projections in early March, updated throughout the summer as new information arrives)

Mid March Budget requests entered into Skyward by campuses/departments and departmental budget reports prepared

Early April Superintendent’s review of budget with CFOEarly April Review budget with principals/department heads and adjust requests if

necessaryEarly April Position control and salary scales finalized for board approval. Initial

staff salaries prepared and reviewedMid-April Budget workshop on position control and salary scalesMay or June Board approves position control and salary scales at regular meetingMay or June Budget workshop with the School Board; presentation to include

revenue estimates, chapter 41 costs estimate, salary data and budget overview as well individual campus/department budgets

July Make changes to budget based on workshop and certified appraisal values

Mid-July Hold public forum on budget if the School Board or administration deem necessary

Mid-July Hold second budget workshop with the School Board if necessaryLate July Make changes to budget based on workshop (hold additional workshops

if necessary)Late July Certified values due from Llano Central Appraisal DistrictJuly Board decides a date for budget and tax rate hearing at regular board

meetingEarly August Final budget draftedEarly/Mid August Publish notice of budget hearing (has to be 10 to 30 days before

hearing)Mid/Late August Budget hearing August Budget adopted; can be done at regular meeting – must be on or before

August 31.August or September Tax rate adopted – can be done at the same meeting as budget adoption

if certified values are available from appraisal district early enough.

Purpose: to assure adequate time to complete each major budget task.Document adopted by Superintendent 8/31/2015

Page 12 of 40


B. Responsibility and philosophy: each principal and department director is responsible for his or her budget. The budget process will involve collaboration between directors and principals in several areas, including Maintenance, Transportation and Technology. A principal or director may be asked to reduce his or her budget, but the specific items reduced will be up to the principal or director.

Purpose: to ensure that the appropriate parties address the instructional and/or operational needs of the campus and department.

C. Maintaining Budget Worksheets: each campus and department is responsible for maintaining budget worksheets that support the requested budget. Directors and Principals will not enter 6100 (Payroll) accounts, with the exception of overtime and extra duty estimates. Business Office personnel will prepare the payroll budget, with input from the District SBDM and information from the Superintendent regarding proposed new/deleted positions. Principals and Department Directors make any requests for payroll-related changes/additions/deletions in writing to the Superintendent. When entering budget worksheet lines, each major component should be itemized. This can be achieved by entering each item or group of like items (i.e. 2 Computers) as a separate entry.

Purpose: to allow the responsible parties to support the requested budget and to be able to address questions regarding the details behind a budget request.

D. Budget Amendments

A budget amendment is defined as a transfer of funds across different functions. For example: a budget amendment would result if instructional funds (function 11) were requested to be transferred to the library (function 12). Budget amendment line items should be stated in whole dollars. Budget amendments must be approved by the principal/director, superintendent, and then ultimately approved by the School Board prior to exceeding the budget in any functional level. Requests should be submitted in accordance with agenda deadlines posted by the Superintendent. Remember that if a purchase order is pending the outcome of a budget amendment, the purchase order will not be processed until after the School Board has approved the request.

E. Budget Reclass

A budget reclass is defined as a transfer of funds which is not across different functions. The appropriate principal/director shall approve all budget reclasses. Budget reclass line items should be stated in whole dollars. To keep budget



reclasses to a minimum, each budget manager should review his/her budget on at least a monthly basis to determine if any budget transfers are necessary.

Budget Amendment-Reclass Form

***



IX. Fixed Assets

In the spring of 2015, the District began the implementation of a new formal inventory system using the Destiny software (previous system began in 2005). This process is subject to change as Business Office personnel become more expert in the software and operational processes used. The Fixed Assets Program has been designed to allow the district to record, track, and report on items such as land/buildings, vehicles, equipment, and other inventoriable items. Having a fixed asset program is beneficial because it:

Provides the District with a system to value, track, and report items with significant value for accounting purposes. The program will enable the District to meet State and Federal Cost Accounting requirements and contributes to achieving a good financial rating during annual audits.

Includes a process for annual inventory of assets. If assets are found to be missing or at inappropriate locations, the problem is identified in a timely manner and allows for corrective action.

Assists in capital budget forecasting for equipment and infrastructure needs, and provides useful information for Risk Management/Insurance purposes.

Assists in identifying idle surplus property, thereby preventing unneeded purchases.

Fixed Asset: the District defines a fixed asset as a tangible item with a value of $5,000 or more, with a useful life of more than one year. Fixed assets should be purchased using the appropriate methods outlined in the purchasing procedures below, and should be coded to a fixed asset (6600) object code.

Inventoriable Asset: the District will recognize in its inventory system any tangible item with a value of $1,000 to $4,999.99 and a useful life of more than one year. In addition to these items, any “walkable” items and typical classroom objects with a unit cost less than $1,000 will also be tagged with an asset barcode. These items are not formally reported as fixed assets in the accounting system, but they will be included in the annual physical count.

Tagging of fixed asset and inventory items: technology personnel will tag technology items valued at $1,000 or more upon receipt of the item (or other “walkable” & “personal use” items valued under $1,000). The technology personnel will be responsible for the technology related items, but they are using the same system to barcode items as the business office so reports can be run at any time.

Since the District does not have centralized purchasing and receiving, other items will be tagged by campus secretaries and updated in the system by the Business Office. If any items are not barcoded at the time of delivery, they will be identified during the annual inventory.

Items that cannot be tagged (software, musical instruments, vehicles, buildings) will be maintained in the fixed asset system. Inventory tags will be issued for vehicles, and those



tags will be placed in the Vehicle Titles binder. No similar procedures exist at this time for other items that cannot be tagged.

Tracking: the District currently tracks items by campus, employee, and room number.

Physical Count: At the beginning of each year, each staff member is responsible for “checking out” each inventoriable item in their classroom for the year (using a barcode scanner or the Destiny app). If an item is not checked out that had been previously, the Business Office personnel will ensure the item has been sold during auction or included in the campus surplus. At the end of the year, the same staff members will “check in” those same items. If an item is not checked back in, the Business Office personnel and campus administrators will try to locate what happened to the item. Principals and Department Directors will be responsible for assisting Business Office personnel in locating items that may have been moved to another location. Principals and Department Directors will be responsible for maintaining proper storage of surplus items from their departments or campuses.

Surplus Property: if a campus or department no longer needs an item, it becomes surplus. The campus or department may contact the Business Office to arrange the removal of a surplus item. The Business Office and the Maintenance department will coordinate the storage of surplus items and those items will be identified as such in the inventory system.

Disposal of Property: once each year, or more if necessary, the District will dispose of surplus items that are no longer needed by the District and they will be removed from the inventory listing. The disposal must meet state and district policies, and cannot occur at the campus level. All disposals will be coordinated at the District level, in the manner that is most cost-effective to the District. For most items, this will involve sale of the item to the highest bidder. If the item is deemed beyond repair and nonfunctional, it may be disposed as scrap by the least expensive means possible. Proceeds of a surplus sale are pooled at the district level.

***



X. Food Services

Catering

The Llano ISD Child Nutrition Program is capable of catering events for school functions. Please make all arrangements for catering through Amy Grant at 248-2263 or Donna Meyers at 247-2493.

Catering Costs: the Child Nutrition Program will bill the requesting department for the cost of food and for overtime labor hours if applicable.

Llano ISD Cafeteria Charge Policies

Student Charges

Cafeteria’s procedure for charge notices:

No more than 3 charges for any student No a la carte charging Students who are over the charge limit will be offered a sandwich, fruit and a milk at no charge

End of School – No charging for the two weeks prior to the last day of school

Teacher Charges

No more than 3 charges for any teacherPrint charge notices $10.00 and higher once a month.

Free & Reduced Meal Application Information

LISD will adhere to all policies issued by the Texas Department of Agriculture.

Faxed Application - Schools may fax applications to the Food Service Office for immediate benefit review. Approval is contingent upon receiving applications with the original signature. Food Service RevenueCafeteria managers at each campus are assigned responsibility for the collection of money for tickets, meals, ala carte items, etc. These collections are counted and verified by two employees.

Daily Cash/Meal Reports and Cash Drawer Recaps are completed and deposit slips are prepared. The deposit slip includes necessary data for coding Food Service revenue in the financial records. These deposits are placed in a moneybag and taken to the Child Nutrition Program Office after the last lunch period every day.



Each manager is responsible for completing the deposit slip and making sure that the deposit is delivered to the Child Nutrition Program Office each day. The deposit will be taken to the depository bank daily. The Food Service Director/Staff handles any problems with these deposits.

The Child Nutrition Department prints a daily summary report at the end of each day. This report is reviewed and any areas of concern are addressed with the campus.

The Child Nutrition Director or designee generates a monthly report at the end of each month which includes all free/reduced/paid meals for the month. After careful review, the report is submitted to CNPIMS in order to receive federal money for meals served.

***



XI. Open Records

The Superintendent is the District’s Open Records Officer. All Open Records requests should be forwarded to the Superintendent’s Secretary for proper processing and invoicing, if applicable. Subchapter F of the Public Information Act, sections 552.261 through 552.275, generally provides for allowable charges for copies of and access to public information. All charges must be calculated in accordance with the rules promulgated by the attorney general under section 552.262. The rules establish the charges, as well as methods of calculation for those charges.

***



XII. Organization: Business Office Functions

The Business Office performs the following functions:Accounts Payable: process all requests for payments and maintain documentation for all District payments. Activity fund payments are made at the campus level, and documentation for Activity fund payments is maintained at the campus level. The Business Office produces 1099’s annually.Audit coordination: assist the independent auditors by providing requested data and coordinating meetings with district staff, board and committee members.Board reports: provide the Board of Trustees with reports regarding revenues, expenditures, investments, budget amendments and other financial concerns.Budget preparation: assist the Superintendent in the preparation of the budgetCampus/Department reports: provide campuses and departments with weekly reports of budget to actual expenditures, and other reports as requested.Depository contract evaluation: biannual solicitation and evaluation of bids for the District’s depository contract.Federal Funds Expenditure Reports: prepare and submit expenditure reports for all federal entitlements and special education funds. The Child Nutrition Program performs its own monthly billing.State Funds Expenditure Reports: prepare and submit reports for all restricted state funds.Insurance/Risk Management: solicitation and evaluation of bids for all District insurance contracts; review of loss runs; coordination of property and casualty insurance claims. A Central Office employee, who is coded 50% to the Business Office, is responsible for employee benefits, health insurance, unemployment and workers compensation.Inventory: maintain a listing of fixed assets and inventory items; perform an annual physical count of fixed assets and inventory items; coordinate disposal of surplus items no longer needed by the District.Payroll: a Central Office employee, who is coded 100% to the Business Office, is responsible for payroll, including all payroll-related reporting. Purchasing and Contracting: solicit bids and maintain lists of approved local vendors; assist departments in purchase of items requiring competitive bidsTax Office liaison: coordinate with the tax office to make sure that our records reconcile to the tax office records.

***



XIII. Purchasing

Purchases that total less than $50,000 may be made using a locally-approved vendor, a current purchasing cooperative contract, a state contract, or by obtaining three written price quotes (see Llano ISD Purchasing Levels & Requirements Chart). The Superintendent or the Requesting Director may choose to follow the formal purchasing processes described below for items that total less than $50,000.

The $50,000 limitation applies to all similar commodity-type purchases made in any 12-month period. For example, if the Technology Department purchases $45,000 in computers from one vendor in August, and plans another $45,000 purchase of the same type of equipment from the same vendor the following September, a formal purchasing process is required for the August and September purchases. In this example, if the September purchases are not planned before the August purchases are made, then the formal purchasing process is required for the September purchases.

A formal purchasing process is required when the item(s) to be purchased have a probable cost in excess of $50,000 and are available from multiple sources. The decision of which process to use should be made in consultation between the requesting Director and business office personnel. The following three Formal Purchasing Processes are available for purchases in excess of $50,000:

A. Request for Sealed BidB. Request for Sealed Proposal C. Purchase as a member of a Purchasing Cooperative or from a State of Texas

contract

A. Request for Sealed Bid (Invitation to Bid-ITB) – bid is awarded based on the lowest price that meets specifications

(1) Requesting Director submits product or service specifications to the business office with the suggested bid opening date. Where practical, specifications should be sufficiently broad to promote competitive bidding.

(2) Business office personnel complete the ITB packet including the requested specifications.

(3) Business office personnel advertise the ITB and mail a notice to prospective bidders.

(4) Received bids are opened and read aloud on the date and at the time specified. At least two District employees are to be present at the bid opening.

(5) Business office or requesting Director prepares a bid recap. (6) Business office or requesting Director checks references on lowest bidder

meeting specifications.(7) Business office or requesting Director verifies ability of the lowest bidder

meeting specifications to perform the contract. Document adopted by Superintendent 8/31/2015

Page 21 of 40


(8) Requesting Director makes a written recommendation for award of the bid.

(9) Business office secures appropriate level of District approval. (10) Requesting Director prepares Purchase Requisition including the

following statement: “Purchased in accordance with specifications, price and terms contained in Bid dated ___________ .”

(11) Business office notifies companies submitting bid of award. (12) Business office will maintain the official ITB file containing copies of all

pertinent documents.

B. Request for Sealed Proposal-(RFP)

(1) Requesting Director submits product or service specifications to the business office with the suggested proposal opening date. Where practical, specifications should to be sufficiently broad to promote competitive pricing.

(2) Business office personnel complete the RFP packet including the requested specifications.

(3) Business office personnel advertise the RFP and mail a notice to prospective bidders.

(4) Received proposals are opened and acknowledged on the date and at the time specified. At least two District employees are to be present at the proposal opening. (It is not required by state law that prices be read aloud.)

(5) Business office or requesting Director will prepare a proposal recap based upon selection criteria. If appropriate, companies submitting proposals are contacted to:

a. Clarify missing or confusing information.b. Negotiate for the best prices, products, services, and/or terms. c. Establish the deadline for all vendors to submit their “best and final” offer.

(6) Business office or requesting Director checks references on Best Value proposal/s. Best Value proposal/s is identified.

(7) Business office or requesting Director verifies ability of the Best Value to perform the contract.

(8) Requesting Director makes a written recommendation to the business office for award of the contract.

(9) Business office secures appropriate level of District approval. (10)Upon approval, the requesting Director prepares Purchase Requisition

including the following statement: “Purchased in accordance with specifications, price and terms contained in RFP dated ___________ .”

(11)Business office notifies all companies submitting proposals of award. (12)Business office will maintain the official RFP file containing copies of all

pertinent documents.



C. Purchases from a State of Texas Contract or as a Member of a Purchasing Cooperative

The District maintains membership in several purchasing cooperatives through Board approved Interlocal agreements. As a local governmental entity, the District is also allowed to access State of Texas procurement contracts. Purchasing through a purchasing cooperative or from a State of Texas Contract satisfies the legal requirement of competitive bidding.

Llano ISD Purchasing Cooperative Memberships and State Contract Resources: The Cooperative Purchasing Network (TCPN) Region IV (www.tcpn.org) 2013 Purchasing Cooperative Region XX (www.esc20.net/purchasing) Multi-Regional Purchasing Cooperative (MRPC) Region 2

(http://purchase.esc2.net) TIPS (www.tips-usa.com) Harris County Department of Education (http://catalog.ionwave.net/hcdeecat) US Communities (http://www.uscommunities.org) Cooperative Purchasing Venture (http://www.mmd.admin.state.mn.us) Buyboard Purchasing contracts and cooperatives managed by the Texas Comptroller’s

Office (under “Programs” at http://www.window.state.tx.us/procurement/) DIR (http://www.dir.texas.gov).

(1) Requesting Director will identify goods/services needed and establish specifications.

(2) Requesting Director will verify District membership and whether identical goods/services have been awarded on a current Purchasing Cooperative or State of Texas contract by consulting the list of awarded bids of goods and services at the coop site.

(3) Once verified that the requested goods and services have been awarded by the Purchasing Cooperative or State of Texas, the requesting Director will complete a purchase requisition and a written recommendation to the business office including Purchasing Cooperative or State of Texas Contract name, goods/services to be purchased, vendor, ID number and price.

(4) Business office will secure appropriate District approval. (5) Upon notice of approval, the business office will issue a purchase

order (PO) to the selected vendor for processing. (6) Purchase order must contain the following statement: “Purchased

in accordance with specifications, price and terms of ______________ (Purchasing Cooperative or State of Texas Contract) Bid (or Contract) # ____________.”

(7) Business office will maintain the official procurement file containing copies of all pertinent documents.

The State’s Centralized Master Bidders List (CMBL) does not meet the requirements of an approved vendor list. The vendors that appear on these lists but not on an approved


http://www.mmd.admin.state.mn.us/

http://www.uscommunities.org/

http://catalog.ionwave.net/hcdeecat

http://www.tips-usa.com/

http://purchase.esc2.net/

http://www.esc20.net/purchasing

http://www.tcpn.org/


vendor list (Purchasing Cooperative, State of Texas Contract or current Llano ISD Approved Vendor List) may only be contacted to submit bids and proposals.

Emergency PurchasesEmergencies occur as the result of unforeseeable circumstances and may require an immediate response to advert an actual or potential public threat. If a situation arises in which compliance with normal procurement practice is impracticable or contrary to the public interest an emergency purchase may be warranted to prevent a hazard to life, health, safety, welfare, property or to avoid undue additional cost to the state.

Notwithstanding the immediate nature of an emergency all procurements conducted as emergencies should be made as competitive as possible under the circumstances. If an emergency exists a written determination of the basis for the emergency and for the selection of a particular vendor shall be included in the procurement file in accordance with this section. Emergency purchases of goods or services should not exceed the scope or duration of the emergency.

Approval The Board of Trustees must approve purchases in excess of $50,000 made under emergency conditions. The Superintendent or Assistant Superintendent must approve those less than $50,000.Solicitation ProceduresAt least three written quotations are encouraged whenever practical on all emergency purchases. An award should be made based on best value, considering the type of emergency. (1) Business office or requesting Director prepares a recap of the offers

based upon selection criteria. (2) If appropriate, companies submitting proposals are contacted to:

a. Clarify missing or confusing information.b. Negotiate for the best prices, products, services, and/or terms.c. Establish the deadline for all vendors to submit their “best and final” offer.

(3) Business office or requesting Director checks references on offers. (4) Best Value offer/s is identified.(5) Business office or requesting Director verifies ability of the Best Value to

perform the contract. (6) Requesting Director makes a written recommendation to the business office

for award of the contract. (7) Business office secures appropriate level of District approval. (8) Upon approval, the requesting Director prepares Purchase Requisition

including the following statement: “Purchased in accordance with specification, price and terms contained in RFO dated ___________ .”

(9) Business office notifies all companies submitting offers of award.



(10) Receiving at least 3 sealed proposals from state approved vendors meets the legal requirements for competitive bidding. (11) Business office will maintain the official procurement file, containing copies of all pertinent documents.

Justification Requirements

Emergency purchases require a letter of justification, maintained in the procurement file, documenting the emergency which must be signed by the Superintendent or Assistant Superintendent and addresses the following: The nature of the emergency purchase (hazard to life, health, safety, welfare, or

property or to avoid undue additional cost to the state), and what caused the emergency situation; and

The estimated impact or damage either financial or otherwise that will occur by following normal procurement practices.

Other extenuating circumstances.

Legal Authority: ¹Texas Government Code, Title 10, Subtitle D, Section 2155.137; Texas Administrative Code, Title 1, Part 5, Chapter 113, Subchapter A, Section 113.11(e) (2) Texas Government Code, Title 4, Subtitle B, Chapter 418 et. seq.

***



XIV. Credit Card Use

The District provides credit cards to allow employees to make authorized expenditures of District funds. Employees must follow District purchasing procedures outlined in Section IX and XII of this document when using credit cards. Employees may not use District credit cards for unauthorized purchases. Employees may not charge tips on District credit cards, as these are not authorized expenditures. Employees assume personal responsibility for sales tax charged on items that should be tax exempt to the District.

The Superintendent or Assistant Superintendent may authorize an employee to carry a District credit card that bears the employee’s name. These cards are only authorized for employees who require frequent use of District credit cards, or for a department or campus employee who makes routine purchases.

Employees who infrequently use District credit cards may, with appropriate supervisor approval, check out a zero-balance credit card from the Business Office. A valid purchase order must be issued in the name of the credit card company, and the employee must submit an approved Credit Card Request form to receive a zero-balance credit card. These cards must be activated by Business Office personnel prior to use.

All credit card purchases with state and federal funds shall comply with the OMB Circular A-87 guidelines. Specifically, all credit cards purchases shall be recorded on the general ledger in detail to include the date of the transaction, the merchant, goods/services purchased, cost, and the purchaser. Grant administrator or other approvals required under the regular purchasing procedures of the school district shall be adhered to regardless of the method of payment.

***



XV. Records Management

A copy of a Records Management Publication from the Texas State Library Archives Commission provides a detailed description of the mandatory minimum retention periods for all student records.

***



XVI. Purchasing and Reimbursement Process

All items must be purchased from an approved vendor. The option that provides the best value for the district must be used. All orders must have the supervisor’s approval prior to ordering. The technology director will make purchases of technology equipment.

Llano ISD does not reimburse employees for purchases that circumvent District purchasing procedures. Schools are subject to very complex bidding laws in almost every category of supplies, and circumventing purchasing procedures can result in increased costs for the District. The district does not reimburse sales tax, so employees placing orders should make sure to obtain sales tax exemption for all supply purchases. The purchase process is as follows: 1. Teacher completes Purchase Requisition. 2. Teacher turns Purchase Requisition in to the campus secretary for proper account

coding and supervisor’s approval. 3. The secretary will electronically submit the Purchase Order to the Business Office,

Supervisor, and Superintendent (or Assistant Superintendent) for approval. 4. The Superintendent or Assistant Superintendent will have final approval of the

Purchase Order.

5. The Business Office will scan a copy of the Purchase Order and forward a hard copy (“green sheet”) to the campus to place the order.

6. Emergency purchase orders are those issued verbally when a situation exists that justifies immediate purchase. The principal shall secure an emergency purchase order number and approval from the Superintendent or designee.

The District shall assume no responsibility for purchases made except as provided in the preceding paragraphs. All purchase orders must have the approval of Superintendent or Assistant Superintendent.

All teachers who receive federal funds for the purchase of classroom supplies and travel should spend the federal funds first. When federal funds are not fully expended, the District is subject to carryover limitations and the result could be a reduction of funding. Most federal projects have a June or September 30th ending date. This is the final date expenditures may be charged to the project. If orders are not received by June 30th or September 30th, the cost is not allowed in that program year and local funds will have to pay for the purchase. All teachers who receive federal funds should submit orders as early as practicable and try to have all funds spent no later than March. This will give backorders or slow turn around times plenty of time to arrive and be utilized before the June 30th or September 30th ending date.



Workshops/Seminars and Other Required Travel The District believes deeply in professional growth and development and advocates faculty and staff members to attend meaningful workshops and seminars when time and funds permit. If the conference is sponsored by a professional organization, District faculty/staff members, who are officers in the organization, have priority in attendance over others wishing to attend. Each employee who wishes to attend workshops/seminars should submit a written request (Purchase Requisition) to their supervisor to request approval to register for the workshop/seminar. This approval should be included in the documentation submitted for reimbursement to the employee of expenses incurred. This section is not applicable when student travel costs are incurred. The “Student Travel” section of this document contains further information. Textravel on the comptroller’s website is a complete listing of the state travel policies. The information in the following paragraphs summarizes the rules that would be applicable in most instances of travel. Textravel may be accessed via the comptroller’s website at https://fmx.cpa.state.tx.us/fmx/travel/textravel/index.php . Travel reimbursements for district employees are capped at the state reimbursement rate unless the Superintendent or his designee specifically approves reimbursement in excess of the state rate. Specific approval must be obtained in writing or via email, and evidence of this approval must be attached to the purchase requisition. The request for specific approval must contain justification for the amount in excess of the state rate and evidence that an attempt was made to obtain the state rate. The comptroller’s website at https://fmx.cpa.state.tx.us/fm/travel/travelrates.php displays the current reimbursement rates. The rules are different for out of state travel. Employees should contact the business office prior to making reservations to ensure appropriate reimbursements will be allowable. The information for out of state travel is included in Textravel. If commercial air transportation is required, employees should contact the business office to determine the maximum reimbursable amounts. At that time the business office will specify what supporting documentation will be required based on the standards included in Textravel. Additional information on air transportation is included in Textravel. Employees should submit a written request that includes cost estimates of all expenses including hotel, meals, mileage and parking for attending the proposed event prior to making travel arrangements. The approval of the supervisor should be noted and attached to the reimbursement documents submitted to the business office. The request should clearly indicate the official business to be conducted. The district does not reimburse above the state rates that are less than the allowable rates set by the IRS without prior approval from the Superintendent or his designee. This means that employees may be entitled to claim unreimbursed expenses on their federal


https://fmx.cpa.state.tx.us/fm/travel/travelrates.php

https://fmx.cpa.state.tx.us/fmx/travel/textravel/index.php


income tax return. Employees should retain a copy of all necessary receipts for personal use prior to submitting the originals to the business office.

Employees should submit all travel reimbursements as soon as possible upon returning from the trip. In no case should the travel be submitted after the fiscal year end (August 31) if the travel occurs before June or within two months of the fiscal year end if the trip occurs in July or August. Hotels/Lodging Expenses Only hotel/lodging expenses incurred when an overnight stay is required are reimbursable by the District. The District may pay for lodging in one of three ways, all of which require a valid purchase order prior to travel:

Employee reimbursement after the fact Payment directly to the hotel at the point of check-in Payment via District credit card

Any expenses beyond the state authorized rate (plus associated local occupancy taxes) must be approved in advance by the Superintendent or his designee. Employees must demonstrate that effort was made to obtain lodging at the state authorized rate. Some grant-funded travel will require split-funding of the reimbursement amounts that exceed the state rate.

The state has contracts for lodging throughout Texas and in some other states. The current contracts are available at the Texas Comptroller’s website located at http://www.window.state.tx.us/procurement/prog/stmp/stmp-hotel-contract/. Employees may contact the hotel and make reservations using the state contract rates for required travel. Upon returning to work the employee should complete a travel expense voucher and submit the itemized receipt from the hotel for reimbursement. The Comptroller’s website at https://fmx.cpa.state.tx.us/fm/travel/travelrates.php displays current reimbursement rates. Please refer to Textravel at https://fmx.cpa.state.tx.us/fm/travel/index.php for rules regarding amounts that are reimbursable under conditions other than single occupancy. The lodging reimbursement rate does not include the county or municipal hotel occupancy taxes, so employees are eligible for reimbursement of the state rate plus the hotel occupancy taxes. Employees must submit a completed exemption certificate upon checking into a hotel to be exempt from the State hotel occupancy tax. State sales tax is not a reimbursable expense. If multiple employees share a room each person is required to file his or her own reimbursement request; if only one of these employees paid the lodging expenses, then that employee is the only person eligible for the lodging reimbursement.


https://fmx.cpa.state.tx.us/fm/travel/index.php


http://www.window.state.tx.us/procurement/prog/stmp/stmp-hotel-contract/


Required Documentation The district will require an unaltered itemized hotel receipt with the following minimum information:

Name and address of commercial lodging establishmentName of the employeeSingle room rateDaily itemization of charges

Documentation from supervisor of prior approval for travel

Meals Only meal expenses incurred when an overnight stay is required or when traveling with students (see “Student Travel” below) are reimbursable by the District. All receipts for meals must be submitted for reimbursement. The District will not reimburse expenditures for alcoholic beverages. The maximum amount reimbursable for a day is the rate set by the state (see https://fmx.cpa.state.tx.us/fm/travel/travelrates.php ). Tips and gratuities are not allowable reimbursable expenses for meals. A maximum of three receipts per day should be submitted: breakfast, lunch and dinner. If breakfast is included in the lodging rate and no expense is incurred then there is not a reimbursable expense. Only expenses incurred may be claimed as stipulated in Textravel. Each person is responsible for submitting his or her meal receipts to the District. Required Documentation:

Receipts for meals must include the following information:Name of restaurant/establishmentDate of mealItemized receipt Tips and gratuities must be listed separately as they are not reimbursable

Documentation from supervisor of prior approval for travel

The GSA per diem rates are broken down by meal, so the $71 per diem rate in Austin for October 1, 2014 –September 30, 2015, for instance, includes $12 for breakfast, $18 for lunch, $36 for dinner and $5 for incidentals (NOTE: incidentals do not include non-reimbursable expenses). These are per-meal maximum rates. For both the day travel begins and the day travel ends, the meal allowance allowed is based on the actual hours away from home on the first and last day. For example, if the employee leaves after lunch on the first day, only the dinner meal rate would be allowable for that day. This policy is in accordance with the IRS FSLG Fringe Benefits Guide.

Mileage




Employees may request use of a District vehicle if desired. The vehicle must be reserved through the Transportation Dispatcher. Such reservations are on a first come, first served basis except when students are involved. The transportation of students takes priority over faculty/staff transportation. If a district vehicle is used, there is no per mile reimbursement but simply reimbursement for the price of gasoline if purchased out of personal funds by a faculty/staff member. When a District vehicle is being used, a faculty/staff member may get a District fuel credit card from the Transportation Dept. for the purchase of fuel only. If the faculty/staff member elects to drive a personal or rented vehicle then the district will reimburse the faculty/staff member at the current state rate for mileage as published on the State Comptroller’s web site. The number of miles to be reimbursed will be based upon the mileage determined as the most cost-effective route utilizing a mapping web site such as Mapquest or odometer readings when a mapping web site is not practical. The state requires that the most cost-effective route be used as the basis of reimbursement. Employees must attach a printout from the mapping web site of the number of miles claimed to travel between two points.

When possible the district’s employees should coordinate travel to conserve funds. If employees who are attending the same event cannot travel together, then the Supervisor will need to include a statement as to why it was not feasible to coordinate travel to each of the employees travel reimbursement requests.

Employees may not be reimbursed for in-district mileage except when mileage is required to visit a student’s home on official business. Required documentation

Travel expense voucher with departure and destination points completed Voucher must state the official business conductedPrintout of mileage from a mapping web siteDocumentation from supervisor of prior approval for travel

Non-reimbursable Expenses The following expenses are not reimbursable, regardless of whether they are incurred while conducting official district business. This is only a partial list.1. Any expense that does not relate to official district business.2. Any expense, with the exception of parking, mileage, and toll expenses that is related

to the operation of a personally owned or leased motor vehicle.3. Tips or gratuities. 4. Excess baggage charges for personal belongings.5. Personal expenses, such as the rental or purchase of a videotape personal

entertainment, an alcoholic beverage, dry cleaning, or laundry.6. Kennel expenses for a pet.



7. Sales and use taxes if applicable law provides an exemption from those taxes and the employee fails to claim the exemption or does not follow the required procedures for claiming it.

Conference/Workshop registration

To register for a workshop or conference, employees must obtain the appropriate approval and then complete a purchase requisition. Once the purchase requisition is submitted to the business office, a purchase order will be created and this may be used to submit the registration. The District prefers to pay for registrations after the event is attended and most vendors will accept a purchase order. If the registration includes separate amounts for meals, food or lodging then the district must pay these amounts on a reimbursement basis and they should be submitted in accordance with the above sections regarding meals and lodging. If the amounts are not separated but the registration indicates a meal will be served or lodging provided then the employee is prohibited from claiming these reimbursements for the event. Student Travel A supervisor should approve all student travel costs. A purchase requisition should be submitted to receive approval for student travel costs for meals and/or lodging. Once the appropriate departments (business office, supervisor, superintendent) have approved the requisition, a purchase order will be generated. The room reservations may be made or invoicing of the meals may be arranged once the purchase order is approved. If the vendor will not accept a purchase order then a requisition should be completed for the best estimate of the meal and lodging expenses. The requisition must have the vendor name, location and cost per student. The amounts per student and per sponsor are not to exceed $8 for breakfast, $8 for lunch and $8 for dinner if an overnight stay is not involved, and $8 for breakfast, $8 for lunch and $12 for dinner if an overnight stay is involved, unless the Superintendent grants special approval for a different amount. The hotel costs should be quoted to include the room rates and applicable taxes excluding the state hotel occupancy tax. If a check is issued based on the best estimate, it is the employee’s responsibility to submit the itemized receipts upon return to substantiate the check that was written. If the proper documentation is not submitted within ten days of returning from the trip then the business office will notify the employee of the amount owed to the district. Another option for providing students meals is to complete a requisition made payable to the employee for the amount allowed per student times the number of students anticipated to participate. The employee should then disburse the funds at the appropriate mealtime during the trip and require each student to sign for the cash received. The students then pay for their meals individually and the student pays any excess charges. The signature page must be submitted to the business office as documentation for the check issued to the employee. If fewer students attend than was estimated, the excess cash must be returned and a receipt obtained. If the proper documentation is not



submitted within ten days of returning from the trip, the business office will notify the employee of the amount owed to the district.

***



XVII. Insurance and Other Employee Benefits

TRS Active Care is the health insurance provider for employees of the District. First Financial Group is the third party administrator for additional employee benefit plans. For detailed information regarding all employee benefits, please see the Employee Handbook on the District’s web site at www.llanoisd.org under “Staff Resources” from the “Staff” menu.

***



XVIII. Payroll

For detailed information regarding payroll policies and procedures, please see the Employee Handbook on the District’s web site at www.llanoisd.org under “Staff Resources” from the “Staff” menu.

***



XIX. State Sales TaxTaxable Status of Purchases

Purchases by the school for educational or instructional use or foradministrative use necessary to the educational function of the school are exempt from tax (office supplies, paper, etc.)

A school must provide the vendor with a valid signed exemption certificate when claiming state sales tax exempt status. Exemption certificates do not require numbers to be valid.

Parent, patron, or alumni organizations may not use The District exemption status to secure exemption from sales and excise taxes. Parent/teacher organizations and booster clubs must apply for their own exemption. Items that become the personal property of the student (cheerleader uniforms, band t-shirts, etc.), even though connected with a school or organization, are not exempt from tax. The exception would be that items that are purchased through budgeted or student activity funds as an award to a student (perfect attendance and honor roll t-shirts) are not taxable.

Meals purchased by the school for athletic teams, bands, etc. on authorized school trips are exempt from sales tax if the school contracts for the meals. The school must pay for the meals with a school district check and provide the eating establishment with an exemption certificate.

Individual members of the athletic team, band, etc., may not claim exemption from the sales tax on the meals they purchase while on a school authorized trip.

The school may also claim an exemption from the state portion of the Hotel Occupancy Tax if the school contracts and pays for the accommodations.

Collection and Remittance of Sales Taxes: the school shall collect sales tax on all taxable sales according to the current sales tax rate.

When imposing sales tax, the school has the option of: Adding the tax to the item’s selling price - thus, if the selling price of an item

were $2.00 and the tax rate was 8.25%, the school would collect $2.17 ($2.00 x 1.0825) from the buyer for each item sold.

Absorbing the tax in the item’s selling price - thus if the item sold for $2.00 including tax, the school would retain $1.85 and remit $0.15 for sales tax. If this method is used, divide the total sales by 1.0825 (assuming a tax rate of 8.25%) to find the taxable sales. To determine the sales tax amount, subtract the taxable sales from the gross sales.

All sales tax collected by the school shall be remitted quarterly to the district’s accounting office unless contractual agreements with a vendor stipulate that such taxes should be remitted to the vendor (school picture and book fair sales).

Schools must submit a sales tax report each quarter for the previous quarter’s collections. This report must show the gross sales, taxable sales, and the amount of tax due. This



report must be accompanied by a check for the amount of tax due and forwarded directly to the Accounting Department.

All schools must file a sales tax report, even if no taxable sales are made in a given reporting period as all non-taxable sales must be reported. This would include vending and food sales. Campuses should not report textbooks fines, cash overages/shortages, student picture sales, etc. in the gross sales figure. Gross sales should only include those amounts that represent actual sales by the campus.

Taxable Status of Sales: school and school-related organizations need not collect sales tax on the following:

Admission tickets Club memberships Sale of food and soft drinks sold during a regular school day, subject to an

agreement with the proper school authorities (must be in accordance with school nutrition policies).

Food and drinks sold at PTO/PIE carnivals. Vending machine sales. Meals and food products, including candy and soft drinks, served in an

elementary or secondary school during the regular school day (must be in accordance with school nutrition policies).

Candy and food items sold through fund raising drives by PTO/PIE or students of the school who are under eighteen years of age.

Two tax-free sales of otherwise taxable merchandise per calendar year, per school, per organization are allowed. A record of the sale must be included on the regular annual sales tax report.

Therefore, state and local sales taxes shall be imposed and collected on all sales for:

Yearbooks, directories, athletic programs, and other student publications except newspapers.

Items sold by the school store (i.e. pencils, erasers, paper, etc.) Any type of booster club materials. Any other item(s) sold as personal property (i.e. school pictures, uniforms,

sweaters, etc.) Fees for materials when the end product becomes the possession of the student

(i.e. vocational projects) All sales of items such as handicrafts, t-shirts, candles, cups, books, and school

supplies sold by a school associated organization during a fund raising drive. All other personal property except for those items specifically excluded above.

Tax Exemption CertificatesA school district is a political subdivision of the State of Texas and is, therefore, exempt from paying state sales tax and no tax number is assigned. A tax exemption certification should be completed and sent to a vendor who has requested a tax number for his/her



records. A Hotel Occupancy Tax Exemption Certification may be furnished to a hotel or motel when a district representative is occupying a room overnight while on school district business. These forms may be obtained from the Llano ISD Central Office.

Hotel Tax Exemptions Religious, charitable and educational organizations and their employees, including college and university personnel traveling on official business of the organization are exempt from the state hotel tax. The organizations and their employees must pay local tax. Educational groups are defined as those that provide instruction or training, and include public and private schools, colleges and universities.

Exempt organizations, governmental entities and their employees must furnish the hotel with a Texas Hotel Tax Exemption Certificate. When a hotel accepts a signed exemption certificate in good faith from the organization or its representative, the hotel is not required to collect the tax. However, the hotel must either collect the tax or have an exemption certificate in its records.

One certificate may be issued by an organization for more than one room, and the method of payment does not affect the tax nor determine the exempt status.

Questions concerning the hotel exemption certificate should be referred to the Business Office.

***



XX. Workers Compensation Insurance

TASB Risk Management Fund is the workers’ compensation insurance provider for employees of the District. For detailed information regarding all workers’ compensation benefits, please see the Employee Handbook on the District’s web site at www.llanoisd.org under “Staff Resources” from the “Staff” menu.

***


Documents

DRAFT - Edl · Web viewTips and gratuities must be listed separately as they are not reimbursable Documentation from supervisor of prior approval for travel The GSA per diem rates