TC-3000-1
3000—FISCAL MANAGEMENT
3010 Goals
3050 Budget Planning
3100 Annual Operating Budget
Priorities
Deadlines
and Schedules
Encumbrances
Recommendations
Dissemination of Budget Recommendation
Hearings
and Reviews
3170 Line
Item Transfer Authority
3200 State
and Federal Funding Proposals and Applications
3280 Borrowing
and Debt Service
Short
Term Loans
Sale
of Bonds
Debt
Service
3300 Investment
of Funds
3340 Fees,
Payments and Rentals (Cf. 9250)
Rental
and Leasing of District Property (Cf. 9250)
Gate
Receipts and Admissions
Income
and Payments from Sales and Service
3400 Depository
of Funds
3430 Bonded
Employees
3460 Accounting
and Reporting
System
of Accounts
Financial
Reports
3500 Audits
3550 Authorized
Signatures
3570 Petty
Cash Accounts
3580 Payroll
Procedures and Schedules
3600 Reimbursement
of Expenses (Cf. 1168, 5330)
3605 District
Credit Cards (Cf. 1162, 1168, 3600)
Issuance
Documentation
Lost
Credit Cards
Return
of Credit Cards
Payment
Misuse
and Unauthorized Use
3610 Purchasing
Goods and Services
Purchasing
from District Employees
Purchases
through the District
Emergency
Purchases
3620 Administrative
Leeway (Cf. 2750, 3660)
TC-3000-2
3660 Bids
and Quotations Requirements (Cf. 3620)
Competitive
Bids
Bid
Specifications
3690 Local
Purchasing
3730 Vendor
Relations
3750 Payment
Procedures
3800 Fund
Raising
Money Raising Projects by Community Groups at School Activities
3820 Management of Student Funds
3850 School Organization Fund Management
3900 Surplus
Books, Equipment and Supplies
3950 Surplus
Land or Buildings
3010 Goals 3010
The quantity and quality of learning programs are directly dependent on the funding provided and the effective, efficient management of those funds.
It will be the responsibility of the Superintendent to see that the District’s fiscal management methods are up-to-date and modeled after the best accepted business practices in order to serve the goal of a modern continually improving educational program for the children and the youth of the District.
Further, the Board recognizes the important trust it has been given with the responsibility of managing a large amount of public resources. As trustee of local, state, and federal funds allocated for use in public education, the Board shall be vigilant in fulfilling its responsibilities to see that these funds are used wisely for achievement of the purposes to which they are allocated.
Approved: February 13, 2002
Reviewed:
3050 Budget Planning 3050
The Superintendent shall be responsible for planning the District’s budget. The Superintendent shall keep the Board informed during the planning process and secure input from the Board through discussions or workshops.
The Board may approve a special committee to work with the Superintendent in determining budget priorities.
Approved: February 13, 2002
Reviewed:
3100 Annual Operating Budget 3100
The District budget serves as the control to direct and limit District expenditures. Overall responsibility for this control rests with the Superintendent, who will establish the procedures for budget control and reporting throughout the District.
It shall be the goal of the Board to fund the operating budget according to approved fiscal and budgetary procedures adhered to and required by the State of Michigan. The budget shall be the vehicle by which the educational goals and objectives of the District are to be met.
Priorities
The Board shall establish priorities for the District on a short-term, intermediate and long-range basis.
Deadlines and Schedules
In order for the District’s budget preparation to proceed in an orderly fashion, deadlines and time schedules shall be established by the Board.
Encumbrances
Encumbrances shall be made when the purchase is made or when an approved purchase order is processed. All encumbrances shall be charged to a specific fund.
Recommendations
Recommendations of the Superintendent and professional staff concerning the educational program of the District and related budget figures shall be presented to the Board prior to submission of the tentative draft budget.
Dissemination of Budget Recommendation
At least two copies of the proposed budget shall be on file in the office of the clerk-Treasurer for public inspection for at least 10 days before its adoption.
The availability of the proposed budget information will be advertised in at least one publication 10 days prior to the date of the public hearing on the budget.
3100 Annual Operating Budget 3100-2
Hearings and Reviews
The Board shall conduct budget hearings according to state law.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1213-1214; 380.1216; 380.1218; 141.411; 141.421A-440A; 211.209-210; 388.1702
3100-R Annual Operating Budget 3100-R
Preliminary Adoption Procedures
The preliminary budget shall include expenditure and revenue data for the most recently completed fiscal year and the amount of surplus or deficit that has accumulated from prior fiscal years. The budget shall contain estimates needed for deficiency, contingency or emergency purposes. The debt fund budgets shall include the amounts needed to pay the Principal and interest from each fund for that fiscal year.
Details of expenditures and revenues for capital improvement projects from the general fund shall be projected for a period of three years. An informational summary of projected expenditures and revenues for the building and site funds of the District shall be included in the budget document with a projection of such expenditures and revenues for three full years beyond the fiscal year covered by the budget.
Recommendations
All recommendations of the Superintendent and staff shall be presented to the Board no later than a regular Board meeting in June.
Hearings and Reviews
All budget reports, explanatory letters and copies of the draft budget shall be available to interested patrons after being made available to the Board. The date, time and location of the annual budget hearing shall be set by the Board.
Encumbrances
All encumbrances shall be made by the Superintendent.
Priorities
The Board shall make the final decision for the priority status of various budget items.
Adoption
The Board shall approve the budget according to current law.
3170 Line Item Transfer Authority 3170
The Superintendent is authorized to approve adjustments and/or transfers within line items of the Board adopted operating budget not to exceed 10% of line item without Board approval. Such adjustments and/or transfers shall be reported to the Board at the next regular meeting of the Board. Authorization for such adjustments and/or transfers shall be included annually in the General Appropriations Act.
Prior to any line item transfers within a building or division budget, authorization shall be received from the Superintendent. Building Principals or division/department heads must submit the request, in writing, supported by the rationale and reasons for said request.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 141.421a-440a
3200 State and Federal Funding Proposals and Applications 3200
The Board shall seek and consider as many sources of revenue as possible to supplement the funds received from local taxes and state aid.
The Superintendent shall assume the responsibility for keeping the Board informed of any revenue sources which could enhance the educational program or operation of the District, and for which the District may be eligible, and make recommendations to the Board for action.
Approved: February 13, 2002
Reviewed:
3280 Borrowing and Debt Service 3280
Short
Term Loans
Bids shall be solicited for all short -term loans which the Board has authorized, and funds shall be borrowed from the responsible organization offering the most favorable bid. All loans shall conform to the requirements of the State of Michigan.
Sale of Bonds
The Board, upon a favorable vote of the people in compliance with the laws of the State of Michigan, may sell its bonds if required to do so. Such bonds shall be duly advertised and prepared and sold in conformance with the laws of the State of Michigan.
Debt Service
It
shall be the responsibility of the Superintendent to maintain all records as to
the outstanding bonds and debts encumbered against the District. He/she shall
keep this information readily available and report periodically to the Board on
the condition of these accounts.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1356
3300 Investment of Funds 3300
Upon proper resolution, the Board shall authorize the administrator in charge of business and finance to invest the available general, debt retirement, building and site, school service, and trust and agency fund monies of the District.
The investments shall be made in accordance with Board action and the provisions of law. The Board shall receive periodic reports as to the status of these investments.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1223
3300-R Investment of Funds 3300-R
The Superintendent is responsible for maximizing the interest earnings of the District. Such authorized investments shall be restricted to:
1. Bonds, bills or notes of the United States, or obligations the Principal and interest of which are fully guaranteed by the United States Government;
2. Certificates of deposit issued by any state or national bank organized and authorized to operate a bank in this state;
3. Commercial paper rated prime at the time of purchase and maturing not more than 270 days from date of purchase;
4. Certificates of deposit or share certificates of state or federal credit unions organized and authorized to operate in this state.
5. Securities issued or guaranteed by agencies or instrumentalities of the United States government.
6. United States government or federal agency obligation repurchase agreements.
7. Bankers’ acceptances issued by a bank that is a member of the federal deposit insurance corporation.
8. Mutual funds composed entirely of investment vehicles that are legal for direct investment by a school District.
9. Investment pools, as authorized by the surplus funds investment pool act, composed entirely of instruments that are legal for direct investment by a school District.
The Board also authorizes the Superintendent to open passbook savings accounts for general fund monies to earn interest while not being used for operating purposes or invested otherwise. Such accounts shall be used when the cash flow pattern does not permit the purchases of longer term investments or when the rate of return is comparable or greater than is available from other investments. The Superintendent, assistant Superintendent, and/or the executive Secretary are authorized to make deposits and withdrawals from these accounts.
3300-R Investment of Funds 3300-R-2
Interest from investments shall accrue to the fund from which the investment was made as determined by the Board and permitted by current law.
The Superintendent shall assume the responsibility of developing cash flow patterns for all funds in order to determine the availability of funds for investment. The Superintendent shall report monthly to the Board on the status of all investments.
3340 Fees, Payments and Rentals (Cf. 9250) 3340
Proceeds from fees for building or equipment use or rental shall be credited to a fund specified by the Board.
Rental and Leasing of District Property (Cf. 9250)
The Board may authorize the rental or lease of District property not used for instructional purposes.
Gate Receipts and Admissions
The Board shall set admission fees to various District activities based on the recommendations of the Superintendent and the building Principals. These fees shall be reviewed annually.
Income and Payments from Sales and Service
Jobs or projects may be undertaken by students for private individuals or community groups. The facilities of the District may be used for such activities. All receipts shall be deposited in the general fund and used as a reimbursement for materials and/or to purchase additional supplies and cover expenses of a department.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.431
3340-R Fees, Payments and Rentals (Cf. 9250) 3340-R
Rental and Leasing of District
Property
Prior to leasing District property, the Board shall make known the availability of such property to the patrons of the District. The lessee shall be reputable and the use of the buildings be compatible with community standards.
In all cases, the lessee shall be responsible for the maintenance of the property and payment of utilities. The Board annually shall be informed of the name, address and telephone number of the individual designated as liaison with the Board. The lessee shall be required to pay any taxes which may be assessed against said property.
All lease agreements shall be prepared or reviewed by legal counsel prior to Board approval. In all cases, the amount received from the lease shall cover all expenses of operation which may accrue to the District.
Income from Sales and Service
All projects undertaken by students and staff shall avoid competition with local businesses to the best extent possible.
The following rules and procedures shall apply to projects undertaken in the District’s shops and facilities:
1. Priority for Service
a. Students enrolled in the course;
b. District and school District organizations;
c. District affiliated organizations;
d. City public agencies and non-profit organizations;
e. Parents of students enrolled in class;
f. Area senior citizens;
g. Students enrolled in high school; and
h. Individuals including school District employees.
3340-R Fees, Payments and Rentals 3340-R-2
2. Customers shall sign the necessary application and release forms provided by the school;
3. Tipping for services is prohibited;
4. All individuals and outside groups shall pay an estimated cost of materials and parts before the work begins. Adjustments shall be made at the time of final billing;
5. Payment for all parts or materials and services shall be made before releasing the product to the client;
6. Invoices for all charges shall be issued through the business office and all payment made to the business office or immediately submitted to said office by the person making the collection. To the extent possible, payments should be made by check; and
7. Employees or students shall not realize any financial benefit as a result of work projects undertaken.
3400 Depository of Funds 3400
At the annual organizational meeting, the Board shall designate the bank(s) or trust companies in which the funds of the District shall be deposited and the proportion of funds to be deposited in each. The Treasurer shall deposit or cause to be deposited, funds of the District in bank(s) as authorized by the Board and in the proportions authorized by the Board.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1221-1222; 129.12
3430 Bonded Employees 3430
The Board shall purchase a blanket or surety bond for school officers and employees responsible for handling District funds. The amount of the bond shall be prescribed by the Board pursuant to the auditor’s recommendation.
Approved: February 13, 2002
Reviewed:
3460 Accounting and Reporting 3460
System of Accounts
All accounting maintained by the Board shall be in accordance with standard accounting procedures and the system of school accounting recommended by the State of Michigan. A complete record of all expenditures shall be maintained in these accounts so that a periodic examination by the Board or its representatives can identify receipts or expenditures.
Financial Reports
The Board shall require monthly a general fund statement of expenditures and receipts of the general fund budget.
It shall be the responsibility of the Superintendent to provide an annual financial statement which encompasses the expenditures and receipts of all accounts within the District.
Approved: February 13, 2002
Reviewed:
3500 Audits 3500
The accounting records, including internal accounts, of the District shall be audited annually by an independent certified public accountant in accordance with prescribed standards and legal requirements.
The audit report shall be reviewed and approved annually by the Board at a public meeting. The management letter and recommendations of the auditor shall be brought to the attention of the Board, along with recommendations of the Superintendent as to the feasibility of implementing the recommendations. The Superintendent shall be responsible for filing the audit reports with all appropriate authorities as prescribed by law or regulation.
The auditing firms selected to conduct the annual audit shall be recommended by the Superintendent and approved by the Board. The auditing firm may be selected on a bid basis.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 388.1418
3550 Authorized Signatures 3550
Checks drawn on the general fund or any special fund (with the exception of the activity fund) will require the signatures of the Board President, Secretary, and Treasurer. The Board shall permit the use of an authorized facsimile signature for all check expenditures to facilitate the processing of checks.
Approved: February 13, 2002
Reviewed:
3570 Petty Cash Accounts 3570
The Board recognizes the need to have small amounts of cash readily available to pay for emergency needs. Petty cash is to be administered following standard accounting principles and in accordance with the Michigan Department of Education requirements for accounting of expenditures.
The custodian for such accounts at the schools will be the Principal. The account custodian at the Board’s office will be the Director of business.
Justifiable expenditures from petty cash accounts include but are not limited to: miscellaneous office materials and supplies, $100 maximum, stamps, and freight. Purchases with petty cash should not be used to circumvent established policy on purchasing authority.
Approved: February 13, 2002
Reviewed:
3580 Payroll Procedures and Schedules 3580
All employees shall be paid according to a specific schedule which shall be determined annually by the Board. All salaries, supplements, and payments for extra duties shall be paid from the payroll account through the District’s business office. No payments shall be made directly to any school personnel for services rendered from any supplementary school fund.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1224
3580-R Payroll Procedures and Schedules 3580-R
No employee shall be paid in advance of services rendered. Personnel receiving extra pay for extracurricular activities which are on-going throughout the school year shall have the salary pro-rated in equal amounts in each pay check. Personnel receiving extra pay for extracurricular activities which are seasonable shall be paid in full at the completion of the activity or on a pro-rated basis over the remaining pay periods at the option of the employee.
A payroll deduction for organizational membership dues associated with employment may be made pursuant to a written request of an individual employee and validation by the organization involved, provided it is in compliance with the provisions of master agreements with the employee organization.
Except for deductions for absences not covered by paid leave, required by law or contract, all salary deductions shall be subject to the Superintendent’s or Board’s approval. All deductions not mandated by law shall require authorization by the employee through the Superintendent’s office.
3600 Reimbursement of Expenses (Cf. 1168, 5330) 3600
District personnel who incur expenses in carrying out their authorized duties shall be reimbursed by the District to the extent approved or provided in duly negotiated agreements upon submission of an approved voucher and supporting receipts.
Expenses for travel will be reimbursed when travel has the advance authorization of the Board and/or the Superintendent. The Superintendent may grant this authorization without prior Board action when the expense has been anticipated and incorporated into the operational budget of the particular program involved, and the Board will later ratify such approval.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1254; AG Opinion #5272
3600-R Reimbursement of Expenses 3600-R
When official travel by personally owned vehicle has been authorized, mileage payment shall be made at the rate currently approved by the Board. For employees covered by flat allowance per month or per year, the mileage rate shall apply when the employee uses his personal automobile on authorized school business outside the District.
Credit Card
If District personnel are issued a District credit card for direct billing, it is the responsibility of the individual to indicate on the credit slip the kind of activity that is being charged. Upon returning to the District, all charge slips are to be submitted to the business office as soon as possible, along with the credit card.
Spouse Reimbursement (Cf. 1168)
Expenses incurred for spouses of employees and/or members of the Board shall not be reimbursed.
Authorization for Travel
All travel must be approved by the employee’s immediate supervisor and Superintendent. The appropriate forms must be completed prior to departure.
1. A Conference Request Form must be submitted no later than five school days prior to the meeting; and
2. Estimated expenses must be within appropriate budget allocations.
An Approval of Request Form signed by the Superintendent shall constitute certification for authorized travel. Certain employees shall be authorized by the Superintendent to travel locally in the performance of their duties and submit expense vouchers for reimbursement.
3600-R Reimbursement of Expenses 3600-R-2
Methods of Travel
1. Travel by Common Carrier:
When a common carrier is authorized as the means of travel, the business office shall obtain reservations and tickets for the individual unless precluded by an emergency situation.
Round-trip tickets for coach, tourist or economy class rates over the same or a permissible substitute route are to be purchased whenever they will lower the total cost, unless authorized travel to several points precludes the use of a round-trip ticket.
2. Travel by Private Automobile:
a. Reimbursement for travel by private car should generally be authorized only under the following circumstances, with the reason indicated on the authorization form:
1) When common carrier service is not available without undue loss of time or unless common carrier use would be more expensive to the District. If the choice is made by the traveler, maximum reimbursement shall be limited to the lower of the mileage or common carrier cost;
2) When two or more persons are eligible for similar authorized travel and riding together would mean a saving to the District. (The Superintendent is responsible for making such a determination before approving the travel request.);
3) When use of an automobile will permit the traveler to make stops en route and perform his duties more effectively; and
4) When the use of an automobile will not require the traveler to be away from his duties for a substantially longer period than travel by common carrier.
3600-R Reimbursement of Expenses 3600-R-3
b. Driving Extra Cars: Where two or more staff members could ride together on authorized travel, but choose to drive separately, any mileage reimbursement for which one of them might be eligible under (1) above, should be split among them. The toll and parking charges for the extra car or cars are not reimbursable.
3. Use of District-Provided Vehicles:
a. Official District Travel
When authorized, travelers shall be reimbursed for all expenses in connection with the use of District cars and trucks, provided the claim for such expenses is supported by receipts.
b. Travel to Professional Meetings
Approval may be given to qualified staff members for the use of District-owned vehicles for travel to professional meetings when other methods of travel are unsuitable or when the trip can be made at less expense to the District. A qualified staff member must drive.
4. Travel by Rented Vehicles:
Under certain circumstances the use of a rental car may be necessary. Rental car service at the site of a conference to which a person travels by common carrier must be approved by the Superintendent. In requesting such use, rationale must be presented which will justify the necessity of such use or its advantage to the District.
5. Travel by Charter Air Service:
The use of charter air service may be authorized when it is to the advantage of the District measured by both comparative travel costs and the time of the travelers.
3600-R Reimbursement of Expenses 3600-R-4
Drivers of District-Provided
Vehicles
Qualifications:
1. Qualified full-time staff members may drive these vehicles when engaged in official District business, provided they are licensed and have adequate experience in driving the type of vehicle assigned;
2. The staff member to whom a District vehicle is assigned is the District’s representative in full charge of the trip; and
3. Students may not drive District-owned vehicles unless the driving is part of driver education programs.
Reimbursable Expenses
1. Lodging (actual room cost);
2. Meals;
3. Conference registration fees;
4. Parking and tolls;
5. Common carrier transportation within limitations above;
6. Use of private vehicle within limitations above;
7. Postage, telephone and fax charge for business purposes; and
8. Charge for baggage service, tips.
Advances
Request for an advance to pay expenses at a conference shall be made at the time application is made and shall be approved by the Superintendent. A maximum of 80 percent of the estimated cost may be advanced. Immediately upon return a financial accounting, including documentation, shall be made to the business office and any unused funds returned. Expenditures not documented shall be reimbursed to the District. Petty cash funds may not be used for cash advances.
3600-R Reimbursement of Expenses 3600-R-5
Daily Travel
Local travel as authorized under these regulations is to be recorded on a daily basis and submitted to the business office at the end of each month for reimbursement. If such travel is less than 100 miles per semester, reimbursement may be requested at the end of the semester. Voucher must include, date, destination, purpose of travel, and number of miles for each trip.
All requests for reimbursement for travel during a fiscal year shall be submitted to the business office by June 30 of that year.
3605 District Credit Cards (Cf. 1162, 1168, 3600) 3605
The Superintendent shall be responsible for the issuance, accounting, monitoring, retrieval, internal controls and generally overseeing the use of District credit cards for Board members and employees.
Issuance
A Board member may be issued a District credit card for actual and necessary expenses incurred as a result of attendance at Board-approved workshops, seminars, conferences, or conventions.
District employees may be issued a District
credit card which shall be used solely for the purchase of goods and/or
services needed for official business of the District.
Documentation
When a Board member or employee uses a District credit card, documentation shall be provided to the Superintendent within 7 calendar days detailing the goods or services purchased, the cost of such goods or services, the date of purchase, and the purpose for which such goods or services were purchased.
Lost Credit Cards
Each Board member or employee issued a credit card is responsible for the protection and custody of District credit card. If a District credit card is lost or stolen, the Superintendent shall be notified immediately.
Return of Credit Cards
A Board member who leaves the Board or a District employee who is no longer employed by the District shall return the credit card upon termination to the Superintendent no later than five calendar days after termination.
3605 District Credit Cards (Cf. 1162, 1168, 3600) 3605-2
Payment
The Board shall approve all District credit card invoices prior to payment. Such payments shall be made no later than 60 days after receipt of the initial statement date.
Misuse and Unauthorized Use
A Board member who violates a provision of this policy shall have his/her use of that card revoked by the Board. An employee who violates a provision of this policy shall be subject to disciplinary action as determined by the Superintendent.
If the Superintendent violates a provision of this policy, he/she shall be subject to disciplinary action as determined by the Board.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1254; 129.243
3610 Purchasing Goods and Services 3610
The Board recognizes the importance of obtaining quality equipment and supplies that meet identified specifications in support of the overall school program. It is further recognized that said equipment and supplies should be purchased at reasonable cost to the school District.
The Superintendent shall be the sole purchasing agent for the District and shall be responsible for developing and implementing equipment and supply acquisition procedures in the school system.
The Superintendent is responsible for all purchase order approvals. The budget will be considered the spending plan for the year. The Superintendent is authorized to make commitments in accordance with budget appropriations in amounts not to exceed the competitive bid amount set by the state each year. For purchases in excess of that amount, or purchases in excess of $5,000 not planned for in the budget, Superintendent will refer authorization for purchase to the Board. Approval of petty cash expenditures may be delegated.
Purchasing from District Employees
The Board shall not purchase equipment or supplies from an employee of the District, nor from a member of a household of an employee, nor from any firm in which an employee or member of his household holds a 10 percent or greater financial interest.
Purchases through the District
Board members and employees shall not make any purchase through the District for personal use. The name of the District or school, or an employee’s position, shall not be used in such manner that discounts or cost preferences are given to such person. Purchasing equipment and supplies by the District for resale to employees is prohibited.
3610 Purchasing Goods and Services 3610-2
Emergency Purchases
Emergency purchases may be made without using the quotation or bidding process. Such emergencies may arise as a result of an accident or other unforeseen occurrence which could affect the life, health, welfare or safety of the District’s students or employees.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 15.321-330
3620 Administrative Leeway (Cf. 2750, 3660) 3620
In the event of an emergency such as a power failure, severe cold weather or other such natural disasters, the Superintendent shall have the authority to purchase capital equipment needed to keep the schools of the District open or to reopen the schools. Any such purchases shall be approved by the Board at a special or regular meeting as soon as possible after the purchase is made.
Such purchases shall not be made so as to circumvent the purposes of the competitive bid law.
Approved: February 13, 2002
Reviewed:
3660 Bids and Quotation Requirements (Cf. 3620) 3660
All purchases requiring competitive bids shall be made in accordance with current statutes, the creation of bid specifications, and adherence to the District’s bidding procedure by the District’s purchasing agent.
The purchasing agent shall develop and maintain lists of potential bidders for various types of materials, equipment, and supplies. Such bid lists shall be used in the development of mailing lists for distribution of specification and invitations to bid.
Any supplier may be included in the list upon request. All bid lists shall be reviewed annually by the purchasing agent.
A copy of this policy shall be given to all bidders upon creation of bid lists and upon request.
All bids and supporting documentation shall be retained in the District office with the Superintendent for a period of one year after bids have been opened.
Competitive Bids
No purchases shall be made of supplies, materials or equipment in a single transaction costing more than allowed under current law unless competitive bids for those goods and services are obtained and the purchase is approved by the Board. The District will follow the state authorized bid specifications.
Bid Specifications
All bid specifications shall be written by the District’s purchasing agent in a clear and concise manner. Such specifications shall include, when necessary: required performance, surety, bid and statutory bond information; compliance with preferential bid law; financial statements; the Board’s right to reject any or all bids; compliance with all federal, state and local laws, ordinances and regulations; the date, time and place for the opening of bids; and other items as the Board directs.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.1267; 380.1274
3660-R Bids and Quotation Requirements 3660-R
Non-Negotiatory Purchases
Non-negotiatory purchases may be made when there is only one supply source, provided the amount does not exceed bidding requirement limitations.
Informal Quotations
Verbal quotations of price on equal products or services secured in person or by telephone may be used in purchases for routine supplies used by the District.
The Superintendent shall make available to the Board, upon request, the price quotations or competitive bids obtained from vendors for goods or services.
Formal Bid Quotations
The Superintendent is authorized to purchase any item, or group of items in a single transaction, costing no more than allowed under current law, upon the receipt of at least three written bid quotations provided said purchase is within the approved budget. The Superintendent shall use discretion in deciding whether such purchases are made on the basis of requested quotations or through advertising for bids.
Competitive Bids on Building Construction, Renovation and Repairs
Prior to commencing construction of a new building, or additions to or repair or renovation of an existing building costing more than allowed under current law, the Board shall obtain competitive bids on all material and labor to be required to complete the proposed construction, addition, repair or renovation. Repair work normally done by District employees is exempted from this bidding requirement.
The Board shall advertise for bids once a week for two successive weeks in a newspaper of general circulation in the area where the building or addition is to be constructed, or where the repair or renovation of the building is to take place. Bids shall be opened, read aloud and examined by the Board at a public bid meeting held in the District.
3660-R Bids and Quotation Requirements 3660-R-2
Procedure
All bids must be submitted to the Superintendent in sealed envelopes with the name of the bidder and the date of the bid opening plainly marked in the lower left-hand corner of the envelope. All bids shall be opened publicly on the stated day and time. All bidders and other interested persons are invited to be present when the bids are opened.
Bids not involving building construction, renovation and repairs may be opened by the purchasing agent or other person designated by the Board and such opening shall be witnessed by one other District employee. The bids shall then be arranged in order from low to high before they are presented to the Board for action.
Responsible Bidder
All bids shall be awarded to the lowest responsible bidder. The Board remains the sole judge of whether or not a bidder is “responsible.” Criteria that may be used to judge “responsible,” by way of illustration and not limitation, are: financial standing, reputation, experience, resources, facilities, judgment and efficiency.
The Board may investigate the “responsibleness” of any bidder by using information at hand to form an intelligent judgment, such as the District’s architect, previous clients of the bidder, their own investigation, or an outside investigation agency.
Bid Specifications
The Board shall avoid negotiation of bid specifications after bids have been accepted and shall correct and request new bids if specifications are inadequately written.
If an error is discovered in the bid specifications all bids shall be returned unopened and the project shall be re-bid using corrected and/or amended specifications.
Any bid submitted to the District may be withdrawn prior to the scheduled time for opening of bids.
Any bid received after the publicized date and time shall not be considered by the Board.
3660-R Bids and Quotation Requirements 3660-R-3
Rejection of Bids
The Board reserves the right to reject any and all bids and to ask for new bids. Such reservation shall be so specified in the publication or notification of bid letting.
The Board reserves the right to waive any informality in, or reject any part of, a bid.
3690 Local Purchasing 3690
The Board shall purchase school equipment and supplies from local vendors whenever possible, providing that price, quality, and service of the local vendor compare favorably with those from non-local vendors. Bids shall be solicited from non-local vendors in order to establish a fair market price for equipment and supplies.
Approved: February 13, 2002
Reviewed:
3730 Vendor Relations 3730
Purchasing personnel shall not show any favoritism to any vendor. Each order shall be placed in accordance with policies of the Board on the basis of quality, price, and delivery with past service a factor.
The District will seek business and bids from all eligible vendors, regardless of race, creed, color, sex, national origin, age, handicap, or disability.
Approved: February 13, 2002
Reviewed:
3750 Payment Procedures 3750
Payment of bills shall be made with the approval of the Superintendent and Board Treasurer.
Upon receipt of a request for payment by a District vendor, and upon receipt of all goods or satisfactory completion of all services from said vendor, the Board may authorize payment to said vendor within 30 days and full payment within 45 days.
On a monthly basis, the Superintendent shall inform the Board of bills for payment from District funds.
Approved: February 13, 2002
Reviewed:
3800 Fund Raising 3800
The Board recognizes that fund raising activities for educational purposes by school groups have the potential to be constructive, social and humanitarian events. In order to preserve the positive and constructive aspects of fund raising activities, administrative approval of projects will be reserved pending consideration of the merit of the activity, the financial burden placed on the community, and other on-going fund raising activities in the school and community. Every effort will be made to protect local taxpayers and organizations from facing undue exposure and pressure inherent in a great frequency of such solicitations.
Money Raising Projects by Community Groups at School Activities
The sale of food, beverages, or merchandise and related profit-making activities by non-students at school activities may occur when all the following conditions are fulfilled:
1. The sale or promotion will be made under the control of a school sponsored organization.
2. Profits are used to enhance school programs by providing money for expenditures not normally funded by the District.
3. Approval is obtained from the Superintendent.
Approved: February 13, 2002
Reviewed:
3820 Management of Student Funds 3820
The accounting system for managing student funds shall be designed to yield the largest possible educational return to students without sacrificing the safety of funds or exposing students to undue responsibility or routine.
The administration is charged with the responsibility for making rules, regulations and procedures for the conduct, operation and maintenance of student accounts, and for the safeguarding, accounting and auditing of all monies received and derived therefrom.
If, before graduation, a class wishes to spend part or all of its fund balance, the final decision to do so must have the approval of the majority of the respective class currently registered for and attending school.
In the event a class graduates and leaves unexpended and uncommitted funds, the class has one year to reallocate the funds. If after one year the funds remain, the funds shall be reallocated by the Board, upon recommendation of the Superintendent. Such reallocated funds will be used for the benefit of the student body. Whenever possible, projects undertaken with such funds shall be used for physical improvements with appropriate dedication to the classes responsible for raising the funds.
Approved: February 13, 2002
Reviewed:
3850 School Organization Fund Management 3850
Monies collected by District employees or student Treasurers and all school service fund accounts, trust and agency accounts shall be handled through the internal accounting system of the District. The Superintendent shall establish rules and procedures for handling such accounts and the accounts of school District organizations.
If school District organizations wish to deposit their funds in a separate banking institution, they may do so only upon receiving permission from the Superintendent.
Approved: February 13, 2002
Reviewed:
3900 Surplus Books, Equipment and Supplies 3900
The Superintendent is authorized to dispose of surplus, obsolete books, equipment and supplies. All transactions shall be reported to the Board and an equal opportunity for any purchases shall be given to everyone.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.11a
3950 Surplus Land or Buildings 3950
The sale or disposal of District land or buildings shall require Board authorization. The method and procedure of disposal shall be determined by the Board.
An appraisal of District owned property shall be requested. However, the Board may set a price which, in its judgment, is fair and may reject any or all offers relative to such sale.
Money resulting from the sale of property shall be deposited in the general fund of the District unless otherwise directed by the Board or unless there is a bond issue outstanding on the facilities, in which case the receipts from the sale shall be deposited in the debt retirement fund established for that building project.
Approved: February 13, 2002
Reviewed:
LEGAL REF: MCL 380.11a