School Finance 101: Procurement and Financial Management Training Overview
This document provides insights into school finance focusing on procurement, human resources management, and financial planning within the education sector. It covers topics such as pitfalls to avoid in procurement, school site payment options, and true/false questions related to school purchases. The training aims to enhance understanding and efficiency in managing financial aspects within educational institutions.
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Presentation Transcript
School Finance 101 2015-2016 Budget Services & Financial Planning Division
Introduction The objective of this training is to provide a better understanding of school finance. This training will provide an overview of school site Procurement and Human Resources Management. 2
Agenda Procurement Pitfalls to Avoid School Site Payment Options School Site Needs Human Resources Pitfalls to Avoid Request for Personnel Action Request for Freeze Exemption/PC Review Special Position Guidelines 3
Pitfalls to Avoid - Procurement 1. Bid Splitting 2. Rebates, Premiums, Incentives and Kickbacks 3. Overlooking Competition 4. Lack ofFunding 5. After-the-Fact Contracts 6. Failure to request Freeze Approval (if necessary) 4
TRUE/FALSE QUESTIONS 1. A purchase can be split into multiple transactions in order to complete the transaction quickly because it is convenient for schools. FALSE This would be considered bid splitting which is unlawful and against LAUSD policy. 2. General Stores Warehouse prices are higher than the prices of outside retail vendors, i.e., Office Depot and Staples. FALSE General Stores Warehouse prices are usually lower, and in cases where they are not, price matching is offered. 3. You can get deliveries quicker from outside vendors. FALSE General Stores Warehouse offers same day delivery, overnight delivery and walk through. 4. Schools should secure three (3) quotes for items costing more than $1,500. TRUE 5. If a budget transfer has been submitted to your Fiscal Specialist, you may use your P-Card to make purchases using that funding line because you know the funds will be there soon. FALSE The purchase should not be made until the budget adjustment has been processed. 6
School Site Payment Options Shopping Carts Imprest Fund Credit Cards 7
Shopping Cart Shopping Cart is used to purchase items from the LAUSD General Stores or from outside vendors for goods and services not found in the General Stores. Commonly purchased items are computers, laptops, instructional materials, general and professional services, textbooks etc. Master Contracts/Agreements Dollar thresholds Goods Receipts 8
Shopping Cart Title I BUL-6517.0, Additional Review Process for Supplemental Instructional Materials (SIM) Purchased with Title I funds,dated June 22, 2015, will be in effect FY 2015-2016. New Workflow School approves the SIM requisition in Shopping Cart and attaches the additional documentation. Local District Title I Coordinator will review the expenditure and the documentation before the school can purchase the item. 9
Imprest Fund An Imprest fund allows an administrator to make direct purchases of items utilizing a local site checking account. REF-1706.4, Imprest Funds,dated September 15, 2015, is in effect for FY2015-2016. An Imprest fund does not represent additional funding for the school. To be used for minor purchases not to exceed $1,000 per item including sales tax and delivery fee. Fiscal Support: Elementary Schools Fiscal Specialists at the Local District assist these schools with their Imprest Fund. Secondary Schools CoordinatingFinancial Managers at the Local District assist these schools with their Imprest Funds. 10
Imprest Fund Amounts For schools and early education centers that have a restricted/specially funded program or two or more schools sharing one Imprest Fund account under the same administrator: Combined Enrollment Maximum Under 300 - $1, 100 300-749 - $1,500 750-1,199 - $1,800 1,200 and over - $2,000 The Principal may increase the amount of the Imprest Fund to a maximum of $5,000 by transferring funds from 13027-General Fund School Program or 14173 Continuation Schools Supplies. 11
Imprest Fund Establishing an Imprest Fund for a New Administrator Close the Imprest Fund of the previous administrator. Complete and sign an "Imprest Fund Request" form. Contact the Treasury Section to update your signature card. 12
Imprest Fund Operation of the Imprest Fund Should have Principals original signature in blue ink on Imprest Claim Form, Imprest Reconciliation Form, and Bank Reconciliation Form. Submit claim forms when approximately one-third of the Imprest Fund is expended. Claims that total less than $50 should not be submitted except at the end of the fiscal year to clear the fund. Every quarter, a copy of the Imprest Reconciliation Form, the Bank Reconciliation Form, and the Bank Statement must be sent to your school s Fiscal Specialist or your school s Coordinating Financial Manager. 13
Imprest Fund Authorized Expenditures Conference Registration fees Contract bus services Admission Fees Refreshments for Advisory Committee Meetings Equipment <=$1,000 per item Postage, shipping or freight Supplies <= $500 per item Membership fees 14
Imprest Fund Prohibited Expenditures Alterations or repairs Business cards, letterheads and envelopes Cell phones Conference or convention expense other than registration Contracts, down payments or installment purchases Entertainment 15
Imprest Fund Prohibited Expenditures Gifts or donations Party supplies or non-instructional decorations Meals and lodging Payments to speakers, artists and other personal services Rental of facilities Salary payments of any kind 16
Imprest Fund Closing Procedures Administrator leaving the school site for any reason must close the Imprest Fund. This involves submitting a final claim and a check in the amount of the unexpended funds payable to LAUSD. The two together must total the amount of the Imprest Fund advanced by the District. 17
Imprest Fund Title I The following are the only allowable Title I expenditures: Conference or registration fees for employees Admissions to approved educational activities Allowable parent training and parent travel expenses Contract bus services for educational field trips Supplemental Instructional Materials 18
Imprest Fund Title I When procuring materials with Title I funds, the Imprest Fund should be utilized only if a vendor does not accept a purchase order or P- Card. Fund administrator must ensure that expenditures charged to restricted federal funds are in compliance with the Title I program requirements. Fund administrator will be required to reimburse the Imprest Fund for any disallowed expenditures. 19
TRUE/FALSE QUESTIONS 1. School site administrators are required to approve Shopping Carts entered into the new SAP Procurement System before a purchase order can be issued. TRUE 2. For orders from outside vendors, there is no need to process a Goods Receipts. FALSE 3. Imprest Funds must be closed at the end of each fiscal year. FALSE Schools should submit a claim form before the end of the fiscal year for all of the items they would like to be charged to the current fiscal year, but there is no need to close the Imprest Fund. 4. Title I includes programs 7E046, 7S046 and 70S46 and 7S176. FALSE Title I does not include program 7S176. 5. A school has $3,000 budgeted for Maintenance of Equipment in Program 7S046. The SAA writes a check to the vendor to cover the bill from the vendor for the month of August. Is this appropriate? This is not appropriate. The Imprest Fund can only be used for 5 Title I items see slide #18. 20
District Credit Cards Policies & Procedures Applying for, updating, or using District Credit Cards involves three different roles at the school or office. o The Site Administrator designates Cardholders and Approving Officials. o The Approving Official accepts responsibility for review and approval of Cardholder transactions in SAP. The Approving Official must be senior in position to the Cardholder. o The Cardholder assumes responsibility for making purchases with the P-Card, and reconciling transactions in SAP. o See Procurement Manual, 6th Edition, November 2014 for guidelines. 21
District Credit Cards Title I BUL-6518.0, Restricted Use of P-Card, Ghost Card, and Travel Card (T-Card) for Title I Program Purchases, dated June 22, 2015, will be in effect FY 2015-2016. Any transactions reconciled with Title I funds will be periodically reviewed by Federal and State Education Programs office. If a school uses any District Credit Card for unallowable items, the school will be asked to identify general funds to pay back the Title I program within the same school year to avoid additional consequences. 22
Procurement Credit Card (P-Card) General Information A specialized MasterCard that allows authorized District employees to purchase goods and services. A timesaving tool that allows users the freedom to shop competitively from suppliers nationally, whether at a store, by phone, or on the Internet. Each location may choose either: one card only with spending limits of $3,000 per transaction / $20,000 per month or two cards with spending limits of $1,500 per transaction / $10,000 per month each. Pre-authorization forms are needed for P-Card purchases of $500 or more. 23
Procurement Credit Card (P-Card) Guidelines for Card Usage Purchases may be made over the internet, by phone/fax or in person. Protect your credit card as you would your own personal credit card by utilizing the following safety procedures such as: Look for a padlock in the locked position at the bottom of your screen. Read any security alerts that pop up informing you that you are entering or leaving a secure Internet connection. Try to avoid doing business with unknown vendors. When faxing an order form, never write the credit card number and expiration date on the form. Instead, contact the vendor and provide the card information over the phone. Never provide a photocopy of your P-Card to a vendor, front or back. 24
Procurement Credit Card (P-Card) Sales Invoices/ Receipts Cardholders must obtain receipts/invoices from vendors for all purchase transactions. P-Card users must keep pre-approval form, original sales invoices / receipts on file and available for immediate inspection for 7 years. The sales invoice / receipt must include the following: Name of merchant Itemized description of purchase Purchase amount Date 25
Procurement Credit Card (P-Card) Reconciliation All purchases must be reconciled by the cardholder by the 18th day of the following month. Failure to reconcile monthly transactions by the 18th will result in the card being placed in temporary suspension status until reconciliation is completed. It is the responsibility of the Approving Official to review all reconciled transactions and either accept or challenge by the 21st day of the following month. Failure to review monthly transactions by the 21st will result in the card being placed in temporary suspension status until review is completed. 26
Procurement Credit Card (P-Card) Prohibited Expenditures (not a complete list) Book Purchases from Program 14152 Cell phones, Pagers and Associated Service Fees Computers and Laptops Gift Cards, Greeting Cards, and Gift Wrapping Gifts, Donations or Contributions Memberships such as Amazon Prime, Costco, Sam s Club 27
Procurement Credit Card (P-Card) Prohibited Expenditures (not a complete list) Microsoft Software Personal Items Rental of Non-District Facilities Restaurants and Bars, Alcoholic and non- alcoholic beverages, and Entertainment Transportation Travel Expenses 28
Procurement Credit Card (P-Card) Title I The use of the P-Card is restricted to only three items and under certain circumstances. The items are: Conference Attendance fees SIM Admission fees Supplemental IMA 29
Procurement Credit Card (P-Card) Title I When reconciling P-Card expenditures with Title I, schools must: 1. Provide a specific description of the items purchased/conference in the Extras tab 2. Upload the following: - The page from the SPSA or SPSA Update that specifically describes the item(s) purchased. - The receipt/invoice for the purchase and/or the approved 10.12.1 form for Conference Registration Fees. After three (3) violations, the schools will not be allowed to use Title I funds to reconcile the P-Card, for the rest of the school year. 30
Toshiba Ghost Card Policies & Procedures The Toshiba District-wide program established an exclusive digital copier contract with a single qualified vendor to improve overall service and accountability. Centralized all billing into a single invoice for each LAUSD location. A Ghost credit card account will be linked to the school s location for monthly charges. The account will be issued to the Cardholder who must be the same individual as the P-Card holder. You will receive an online invoice from Toshiba and will be responsible for reviewing the charges for your location, having sufficient funds and reconciling those charges in SAP. 31
Toshiba Ghost Card Policies & Procedures Schools and offices do not purchase equipment, pay lease/rental payments, pay for toner/supplies, or pay for maintenance service contracts. Network data drops and electrical connections for copier and print devices are provided at no charge. There are no excess copy charges. Locations pay by the amount of copies they make. Black and white copies cost $0.0098 per copy Color copies cost $0.0395 per copy Duplo copies cost $0.0085 per copy 32
Toshiba Ghost Card Reconciliation: Toshiba Ghost Card transactions should be reconciled by the 18th of the month. Failure to reconcile the copier expenditures by the 18th of the month, may result in force reconciling of the Toshiba copier charges to the default funding line or other appropriate account. This may also result in suspension or cancellation of the location s Procurement Card (P-Card) privileges. For Approvers: Failure to review and approve reconciled copier expenditures by the 21st of the month may also result in suspension or cancellation of the location s Purchase Card (P-Card) privileges. 33
Toshiba Ghost Card Toner Supplies: Service calls and requests for supply items (toner and staples) for all imaging devices (copiers, duplicators and laser printers) go through Toshiba. Billing Process: Toshiba Business Solutions invoices are required to be attached to the Citibank LAUSD Toshiba Card Statement. Physical files are required to be kept for seven (7) years. 34
Toshiba Ghost Card Title I When completing the monthly reconciliation for the Toshiba Ghost card, schools should not assign more than 50% of the monthly expense to the Title I program. 35
Travel Card Policies & Procedures See BUL-5525.2, District Policy on Travel, dated July 1, 2014 for more information. The Travel Card is used to pay for airfare, hotel and transportation expenses for employees and students. Account issued to the Cardholder who must be the same individual as the P-Card holder. Approved Travel Request Notification (ATRN) numbers generated must be obtained for travelers prior to booking or making travel purchases. Approved/signed copies of the 10.12.1 should be uploaded/attached to the related Travel Card reconciliation document/transaction in SAP. 36
Travel Card Title I Per Procurement Manual, Chapter 7 and Title I restrictions, Travel Credit Card may only be utilized for travel arrangements for employees . The use of the T-Card for approved Title I conferences must be reasonable, necessary, allowable and properly supported. Title I charges on the T- Card, must have the approved page from Single Plan for Student Achievement/SPSA Update uploaded and attached along with the receipt for the purchase and the approved 10.12.1 form. 37
TRUE/FALSE QUESTIONS 1. All receipts from P-Card Purchases should be uploaded to the transaction in SAP. TRUE 2. The signed pre-authorization form needs to be uploaded to the transaction in SAP along with the receipt for every purchase on the P-Card. FALSE The signed pre-authorization form should be uploaded for purchases in excess of $500. 3. You may use your P-Card to purchase gift cards, gift wrap and greeting cards for a Teacher Recognition ceremony. FALSE The P-Card must not be used to purchase these items. 4. When a cardholder or approving official leaves a site, the P-Card Unit automatically updates the card accounts. FALSE The school site must submit Update Forms to the P-Card unit if there are any changes to the Approving Official or Cardholder. 5. The Toshiba Ghost card is a physical credit card that can be used to pay to Toshiba Unified Print program invoices. FALSE 38
School Site Needs Supplies, Equipment and General Services Travel/Conference Attendance Rental of Non-District Facility Professional Service Contracts 40
Supplies, Equipment and General Services General Stores Distribution Shopping Cart transactions General Stores Distribution Section stocks over 2,800 educational tools, office supplies, furniture, equipment, and specialty items that support a variety of instructional programs. In accordance with MEM-6326.0, schools and offices are required to purchase items from the District s General Stores Distribution Center. Master Contracts/Agreements Shopping Cart transactions Diplomas - Herff Jones Computer software and hardware Arey Jones Dell, Hewlett Packard, Lenovo Apple Apple products Dollar thresholds $1 - $25,000 Shopping Cart (Auto-Generated Purchase Order)/P-Card Over $25,000 to below State Competitive Bid Limit Shopping Cart At or above the State Competitive Bid Limit Shopping Cart 41
Travel & Conference Attendance BUL-5525.2, District Policy for Travel and Attendance at Conferences or Conventions will be in effect FY 2015-2016. All School request(s) for Travel, Conference or Convention Attendance require the completion of Form 10.12.1 approved by the Site Administrator and the Local District Superintendent or Administrator of Operations (AOO). All out-of-state or international conference/convention and travel must be approved by the Senior Deputy Superintendent, School Operations. All requests must be received by the Procurement Travel Desk no later than 20 calendar days in advance of travel. Approved travel expenses will be settled in SAP Travel Management Module (TMM), transferred to Payroll, and paid on the employee s next regular scheduled paycheck. 42
Rental of Non-District Facility Input Shopping Cart Product Category 91852 and Object Code 560001 - facilities rental and Product Category 64020 and Object Code 450002 - catering services. Review BUL-5447, Purchase of Meals/Refreshments/Food for Advisory Committees/School Site Councils. The school or office must then complete the Request for Use of Non-District Facility/Catering form. Completed forms and requisitions should be submitted to PSD for processing 20 business days prior to the desired date of the event. 43
Professional Services Contracts Master Contracts/Agreements Shopping Cart transactions Dollar thresholds $1 - $25,000 Shopping Cart (Auto-Generated Purchase Order) Over $25,000 to below State Competitive Bid Limit PSD requires three proposals in writing, with selection rationale explained, along with the RFPA package At or above the State Competitive Bid Limit Informal RFP process Unauthorized Uses Services related to an existing contract (Amend existing contract.) Maintenance or repair of Equipment Alterations and Improvements (A&I) projects Tuition Reimbursement 44
Pitfalls to Avoid Human Resources 1. Lack of Funding 2. Hiring without a Position Control Number 3. Neglecting to request Freeze Approval/PC Review 4. Multiple Incumbents 46
Human Resources Request for Personnel Action (RPA) Freeze Exemptions/PC Review 47
Request for Personnel Action What is an RPA? A District form completed by a school or office requesting Personnel to assign an employee to a budgeted position or assignment or to modify a position or assignment with the exception of norm positions. 48
Request for Personnel Action RPA s are used: to assign personnel to positions to make changes to an employee s assignment to discontinue an unclassified assignment to notify Personnel of the continuation of an unclassified assignment for the new fiscal year. (ex. Community Rep, Prof. Expert, etc.) RPA s are not used for: Special Ed assignments in Programs 12002, 12003, 12005 or 12215 Administrative positions 49
Request for Personnel Action Information needed to complete an RPA can be found on the following reports: Position With Incumbent (PWI) School Budget Signature Form 50
