Procurement                                                                                                        DBK
Adopted: 10-9-13 Revised 11-8-14


This policy and the other policies in sections D, and F govern procurement by the South Sanpete School District. "Procurement" means buying, purchasing, renting, leasing, leasing with an option to purchase, or otherwise acquiring a "procurement item." A "procurement item" includes a supply, a service, construction, or technology. The procurement process consists of all functions that pertain to the obtaining of a procurement item, including the description of requirements, the selection process, solicitation of sources, the preparation for soliciting a procurement item, the award of a contract, and all phases of contract administration.
       Utah Code 63G-6a-103(32), (33) (2013)


Except as specified in the following paragraph or elsewhere in the procurement policies, the District's procurement policies apply to all expenditures of public funds.
      Utah Code 63G-6a-105(2)(a) (2013)


The District's procurement policies and regulations do not apply to:

     • The procurement of real property
        Utah Code 63G-6a-105(7) (2013); 63G-6a-1209(2) (2013)
     • Employment contracts or collective bargaining agreements
        Utah Code 63G-6a-103(43)(b) (2013)
     • Grants from the State or contracts with the State (except for policies relating to improper conduct)
        Utah Code 63G-6a-107(1) (2013)
     • Grants, gifts, or bequests: notwithstanding procurement policies, the District may comply with otherwise legal terms or condi
        tions of a grant, gift, or bequest.
        Utah Code 63G-6a-107(2)(b) (2013)


In addition to the definitions above or in other procurement policies, the following definitions apply to the District's procurement policies:
Contract: An agreement for the procurement or disposal of a procurement item.
Contractor: A person who is awarded a contract with a procurement unit.
External procurement unit: (a) A buying organization not located in this state which, if located in this state, would qualify as a pro  
                                         curement unit; or (b) an agency of the United States.
Grant: Furnishing, by a public entity or by any other public or private source, financial or other assistance to a person to support a
          program authorized by law. It does not include an award whose primary purpose is to procure an end product or procure
          ment item; or a contract that is awarded as a result of a procurement or a procurement process.
Procurement Officer: Business Administrator, or another person designated by the Board of Education.
Public Entity: Any government entity located in the state that expends public funds and any political subdivision of the state.
        Utah Code 63G-6a-103(48) (2013)


Intent to Comply with Other Laws and Regulation
It is the South Sanpete School District's intent and purpose to comply with the Utah Procurement Code (Title 63G, Chapter 6a of the Utah Code) and with such regulations as are regulated by the Utah Procurement Policy Board. To the extent that the District's procurement policies conflict with the Procurement Code or with applicable regulations, those code provisions or regulations shall govern.
     Utah Code Ann. § 63G-6a-105(5), (6) (2013); 63G-6a-104(1)(i) (2013); 63G-6a-106(2), (5) (2013); 63G-6a-402(1)(a), (2) (2013)


Where the procurement involves expenditure of federal assistance, federal contract funds, local matching funds, or federal financial participation funds, the District shall comply with mandatory applicable federal law and regulations regardless of conflict with these Policies, state regulations, or the Utah Procurement Code.
Utah Code § 63G-6a-107(3) (2013)


Purpose & Philosophy of the Following Procedures Guide
This procedures guide has been adopted to enable the District to purchase, establish contracts, and generally carryon its procurement functions; to ensure the fair and equitable treatment of all persons who deal with the procurement system of the District; to foster broad-based competition within the free enterprise system; and to properly account for the expenditures of public monies. The guide also details and explains Cash Receipts, Expenditures, Fundraising, and Donations.


1. Authority
The Director of Purchasing is delegated authority by the South Sanpete School District Board to carry out the procurement functions of the District and to ensure such functions are in accordance with established policies and written procedures. The Director may delegate, in writing, purchasing authority to other District employees as necessary to fulfill the purpose and philosophy of this policy. The Director is also given authority to withdraw delegated authority


A. Scope
This policy applies to all purchases made by the District or any of its
subdivisions; i.e. schools, departments, programs, etc. The policy applies regardless of the source of the money to be expended, including, but not restricted to:
a. Tax money
b. State and Federal Grants
c. Donations
d. All types of fees
e. Revenue generated by programs, schools, departments, etc.
(However, where a donor is to donate the entire cost of a supply, service or construction item, and has conditioned the donation on award to a specific supplier, service provider, or contractor, this policy does not apply.)


B. This policy shall apply to all purchases made through District approved
purchase orders, school generated purchase orders, expenditure request and District requisitions. This policy prohibits purchases by the District, its, subdivisions and entities through other purchasing instruments, which include revolving credit purchase instruments unless prior approval has been granted.
C. This policy applies to all purchases of supplies, equipment, materials,
construction, real property, and services.


2. Requisition Creation and Purchase Approval


A. All transactions that result in a commitment of District/School funds shall be approved by the applicable District/school administrator prior to making any purchasing arrangements.


a. Purchases of goods and services shall be executed by submitting a requisition, which (after the appropriate administrative and
    program approval) results in the creation of a District or school purchase order.
b. Refunds of tuition or other reimbursements to students, parents, and employees shall be documented by receipts, registra
    tion/withdrawal forms, sales slips, etc., which are submitted prior to the issuance of a check.
c. Purchases of goods and services for custodial, maintenance of buildings and grounds, and small instructional or office supplies
    may be acquired through open purchase orders established at approved vendors. Only approved positions within the District are
    authorized to purchase goods or services through the open purchase order system. Any misuse or violation of the open purchase
    order system shall result in disciplinary action.


B. Exceptions to this policy shall apply to emergency procurements as identified by the budget manager, provided a requisition is
    approved subsequent to the purchase.


3. Competitive Solicitations
Note: When following the Competitive Solicitations guidelines, the worksheets DBK-SP-1 and DBK-SP-2 "Quotation Sheet Expenditure Request" must be completed and maintained for a period of three years.


A. District policy defines small purchases as those purchases less than $5000 except small purchases for construction or architect-
    engineer services shall be less than $50,000. The State procurement policy further subdivides small purchases into categories de
    pendent upon the amount of the purchase. Competitive pricing shall be obtained for all purchases. Purchase requirements may
    not be divided into smaller units to avoid using the proper purchasing procedure based on the dollar volume, nor are purchases
    to be made prior to obtaining a purchase order number except for purchases made with a District open purchase order according
    to section 3Ac

B. Purchases less than $999. For purchases less than $999 entities are encouraged to seek the best possible sources of supply based
    on factors such as price, prior vendor performance, and delivery; and to utilize the warehouse and other contracts as
    established by the District Purchasing Department or the State of Utah.
C. Purchases between $1000 and $4999. No fewer than three vendors shall be contacted by the requesting entity for verbal, e-mail, or
    written price quotes. Quotations shall include a complete description of the product or service to be purchased, the quantity, the ve  
    dor name, address, name of the person providing the quote, quote date, unit and extended price, shipping charges if applicable, and
    delivery and payment terms. When a vendor is selected, a brief comment should accompany the documentation explaining the            
    rationale for that vendor selection. Documentation shall be retained by the purchasing entity and shall be subject to Purchasing De
    partment review/approval prior to any commitment to a vendor and be subject to audit by the Districtʼs auditors. Purchasing entities
    are encouraged to consult with and utilize the services available from the District Purchasing Department.
D. Purchase between $5000 and $9999. The same policy applies as in 4C except that written or e-mail quotations are required. Written
    quotes and award justification must be submitted to the Purchasing Department for final approval and shall be retained by the Pur-
    chasing Department and be subject to audit. Purchasing entities are encouraged to consult with and utilize the services available from
    the District Purchasing Department.
E. Purchases over $10,000 or for construction or architect-engineer services over $50,000. All purchases anticipated to be in excess of
    $10,000 or for construction or architect-engineer services over $50,000 should be formally bid by the Purchasing Department in accor  
    dance with adopted bidding policies and procedures. Requesting entities shall provide the Purchasing Department with complete des
    criptions, specifications, and suggested sources for the goods/services requested. Those purchases in excess of $20,000 or for con
    struction over $50,000 shall be formally bid with public notice given in accordance with adopted bidding policies and procedures. All
    of the solicitations and advertisements to be bid shall be issued from the Purchasing Department after receiving approved requisitions
    from the Business Administrator. The Purchasing Department further shall coordinate the receipt, opening, review, and awarding of all
    bids in accordance with the policy.
F. Purchases are authorized after budgetary approval using a vendor and price established by a state awarded procurement contract
    without going through the competitive solicitation process.


1. Use of Competitive Sealed Proposals in Lieu of Bids


A. When the purchasing agent determines in writing that the use of competitive sealed bidding is either not practicable or not
    advantageous to the District, a contract may be entered into by competitive sealed proposals. Competitive sealed proposals are most  
    appropriately used for professional service-type contracts, consultants, or other service providers


C. Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A register of
    proposals shall be prepared and shall be open for public inspection after the contract is awarded.


D. The request for proposals shall state the relative importance of price and other evaluating factors.


E. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals for the purpose
    of assuring full understanding of, and responsiveness to, solicitation requirements, if any questions arise. Offerors shall be accorded
    fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after
    submissions, but prior to any disclosure of information submitted by competing offerors in any format, and before the contract is
    awarded for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of any information
    derived from proposals submitted by competing offerors. It is the responsibility of the offeror to ensure their proposal is accurate and


F. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the District,
    taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be
    used in the evaluation


2. Architect-Engineer Services


A. It is the policy of the District to publicly announce all requirements for architect engineer services and to negotiate contracts for ar
    chitect-engineer services on the basis of demonstrated competence and qualification for the type of services required, and at fair and
    reasonable prices. Architect-engineer services shall be procured as provided in this part except as authorized by Sections 63G-6-
    409 through 63G-6-411. This part does not affect the authority of, and does not apply to procedures undertaken by the District to
    obtain the services of architects or engineers in the capacity of employees of such unit.


B. In the procurement of architect-engineer services, the District Business Administrator shall encourage firms engaged in the lawful
    practice of their profession to submit periodically a statement of qualifications and performance data. A selection committee for
    architect-engineer services shall be established in accordance with rules and regulations promulgated by the policy board. Selection
    committees shall evaluate current statements of qualifications and performance data on file with the state, together with those that
    may be submitted by other firms in response to the announcement of the proposed contract. Selection committees shall consider no
    less than three firms and then shall select there from, based upon criteria established and published by the selection committees, no
    less than three of the firms considered to be the most highly qualified to provide the services required. The District, upon a recom-
    mendation from the selection committee, may award a multi-year contract for professional services from an architect-engineer. The
    contract can be for a period of three years with an option by the District to renew for an additional two years.


3. Cancellation and Rejection of Bids/Proposals
An invitation for bids, a request for proposals, or other solicitation may be cancelled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interests of the District in accordance with rules and regulations. The reasons shall be made part of the contract file.


4. Other Purchases
The District Business Administrator shall authorize purchases made through any means other than those described above. Anyone violating this policy shall be subject to disciplinary action.


5. Exceptions to Small Purchase and Bid Procedures
Sole source procurement shall be used only if the goods or services are reasonably
available from a single supplier. Any request that the procurement be restricted to one potential contractor or vendor shall be accompanied by an explanation as to why no other will be suitable or acceptable to meet the need. In cases of reasonable doubt, competition shall be solicited. The Purchasing Department shall make the determination as to whether the procurement shall be made as a sole source.


6. Emergency Procurements
Emergency procurements using other than normal bid or price quotation procedures may be made only by the Purchasing Department. Procurement shall be made according to policy as near as possible and still assure that the required supplies, services, or construction items are procured in time to meet the emergency. Given this constraint, such competition as is practicable shall be obtained.


Cash Receipts and Expenditures
Scope of Cash Receipts and Expenditures Policies—
These policies, guidelines, and procedures are applicable without exception to all funds owned or administered by the District. This policy applies to all District administration, licensed educators, staff, students, organizations, and individuals that handle cash receipts or accept payment in any form on behalf of the District or individual school or initiate, authorize, or process cash disbursements on behalf of the District or individual school. The scope includes all activities at the District and individual schools and in all locations where District activities and public funds are collected or expended. All expenditures of the District are to be consistent with applicable state and federal laws and regulations; any restrictions, rules, or regulations placed on the use of the funds by donors and granting agencies; and prudent management practices. It is expected that in all dealings, District employees will act in an ethical manner that is consistent with the District's code of ethics, the Utah Educators' Standards, the Public Officers' and Employees' Ethics Act, and State procurement law.
Segregation of Duties—
Wherever possible, duties such as custody of purchase cards and blank checks, initiating expenditures, approving expenditures, maintaining documentation, issuing checks, collecting funds, maintaining documentation, preparing deposits and reconciling records should be segregated among different individuals. When segregation of duties is not possible due to the small size and limited staffing of the District or individual school, compensating controls such as management supervision and review of cash receipting records by independent parties should be implemented.
"Public funds" for purposes of this policy are defined as money, funds, and accounts, regardless of the source from which the funds are derived, that are owned, held, or administered by the state or any of its political subdivisions, including Districts or other public bodies.
Utah Code § 51-7-3(26) (2013)
Cash Receipts Policy—
A. All receipting of funds at the District and at schools should be done at the cashier's office. No receipting is to be done in other offices or in unapproved off-site locations. Employees shall instruct payers to take all cash, checks, and credit card transactions to the cashier for receipt.
B. Provisions should be made for cash receipting/collection at approved off-site activities or functions. Please refer to the Fundraising and Donation Policy. Funds may be receipted through the District's foundation, if applicable, in accordance with the foundation's cash receipts policy.
C. District employees, school employees, and volunteers associated with school-sponsored activities should not open bank accounts, outside of the control of the District, for the receipting or expending of public funds associated with school-sponsored activities. The business administrator or designee must approve all checking and savings accounts used in District or individual school business.
D. All funds shall be kept in a secure location controlled by the cashier until they can be deposited in a District-approved fiduciary institution. Funds should be deposited daily or within three days after receipt, in compliance with Utah Code 51-4-2(2)(a), in a District-approved account. Employees should never hold funds in any location for any reason.
E. If the cashier has left for the day or funds are receipted on the weekends, administrators should be available to lock cash receipts or cash boxes in the District safe until next business day. Cash receipts should not be taken home by employees or volunteers, or left in offices.
F. All checks should be made payable to the District or individual school and restrictively endorsed upon receipt. Checks should not be made payable to an employee, a specific department, or a program.
G. Appropriate internal controls and segregation of duties should be implemented for all cash activity. Cash should always be verified. Where verification is difficult, cash should be counted by two individuals.
H. All funds (cash, checks, credit card payments, etc.) received must be receipted and recorded in the District's accounting records. A pre-numbered receipt will be issued for each transaction. Passwords should be established on the accounting system computers and changed periodically.
I. Under no circumstances are disbursements to be made directly from cash receipts (i.e., for purchases, reimbursements, refunds, or to cash personal checks).
J. Periodic and unscheduled audits or reviews should be performed for all cash activity. Documents should be available, and should demonstrate that proper cash controls are in place (signatures for approval, tally sheets, reconciliations, etc.).
K. All activities involving cash must be supervised by a District employee or authorized volunteer to ensure adequate controls are in place. Training should be given to those involved in handling cash.
L. The District and all individual schools will comply with all applicable state and federal laws. All payments of fees shall correspond with the approved fee schedule, as required by Board Administrative Rule 277-407.
Cash Receipts Procedures—
A. The cashier should receipt all funds immediately (cash, checks, credit cards, etc.), provide customers with a pre-numbered receipt, and retain a duplicate copy in the daily receipt or register detail. The cashier's cash drawer should be locked and secured at all times.
B. Cash count sheets will be used for cash receipts at games and other school-sponsored activities after hours or off-site. These sheets will be completed by two individuals, signed by a member of administration on the day of the collection, and retained for verification in the daily receipt or register detail.
C. No collecting or receipting of funds is to be done in other offices or at unapproved offsite activities or functions. Employees should never hold funds in any location for any reason.
D. Mail should be opened by an individual independent of the cash receipt process, and funds received should be documented in a cash receipts log.
E. Funds received shall be recorded in the District's accounting records. A daily deposit report shall be printed; reconciled to the actual deposit, the receipt book, and cash receipt log; and retained for verification by administration along with the copy of the deposit slip in the daily receipt or register detail.
F. The deposit shall be placed in a secured, locked location until it can be deposited in an District-approved fiduciary institution.
G. Funds should be deposited daily or within three days after receipt, in compliance with Utah Code 51-4-2(2)(a), in an District-approved account. An employee independent of the cash receipting process shall verify that the daily deposit detail reconciles to the validated deposit slip.
H. Bank reconciliation(s) should be performed on all District-approved accounts on a monthly basis. Bank statements and bank reconciliations should be reviewed and approved by administration on a monthly basis.
I. The District's board or audit committee should review and approve the bank statements, the bank reconciliations, and monthly journal entries on a monthly basis.
J. Where applicable, each school's detailed activity budget vs. actual statements should be reviewed by program directors, coaches, teachers, etc. on a quarterly basis for accuracy and reasonableness.
General Expenditure Policies—
A. Expenditure transactions must be approved by an individual having sufficient knowledge and authority to evaluate the transaction for reasonableness and appropriateness. The school or District shall designate employees by title or job descriptions that are authorized to approve various dollar amount levels of disbursements and instructed never to sign blank checks.
B. All expenditures made using cash, checks, credit/purchase cards, electronic fund transfers, etc. shall be recorded in the school or District's accounting records.
C. Passwords should be established on user access to the accounting system and changed periodically.
D. Checks should be made payable to specified payees and never to "cash" or "bearer."
E. All disbursement activity should be substantiated by supporting documents. Documents should be available, and should demonstrate that proper disbursement controls are in place (signatures for approval, purchase orders, receipts, invoices, bids or quotes, reimbursement forms, travel forms, journal entries, reconciliations, etc.). Quotes shall contain the following information:
      (1) Date received or dates that the quoted price is valid, delivery date
      (2) Company name, address, salesperson
      (3) Each item, description or specifications, unit, total price, and quantity listed
      (4) Shipping and freight charges
      (5) Salesperson and contact information
      (6) Vendor, District employee name and position
Quotes may be obtained and documented by printing pages from a website; however, all of the quote elements must be documented. Better prices are usually obtained by contacting vendors directly. Telephone quotes must be documented and include all quote elements. Written quotes should be requested on the vendor's letterhead.
F. Bank and credit card statements should be reviewed and accounts reconciled in a timely manner. Activity accounts should be reviewed quarterly by the custodian of the activity.
G. All checks or check stock, credit/purchase cards, access to bank accounts and statements, etc. shall be secured and controlled by the accounting/front office with limited access. All disbursing of funds at the school or District should be done through the accounting/front office.
H. The school or District must comply with applicable District and state purchasing laws.
(1) Contracts must follow the guidelines outlined in the District's procurement policies and State Procurement Code, specifically regarding the length of multi-year contracts.
(2) Construction and improvements must comply with the provisions of the District's procurement policies and the State Procurement Code (Utah Code Ann. ' 63G-6a-101 et seq.), the Utah State Procurement Policy Board Rules, and Title IX.
(3) Exclusive contracts must comply with the guidelines outlined in the State Procurement Code (Utah Code Ann. ' 63G-6a-101 et seq.), the District's procurement policy, and the Utah Public Officers' and Employees' Ethics Act (Utah Code Ann. ' 67-16-1 et seq.).
(4) Purchases of goods or services with District funds for personal use or personal gain are strictly prohibited; see the Utah Public Officers' and Employees' Ethics Act (Utah Code Ann. ' 67-16-1 et seq.).
(5) Expenditures will follow the guidelines outlined in the District's procurement policies and the State Procurement Code (Utah Code Ann. ' 63G-6a-101 et seq.) and federal purchasing laws.
General Expenditure Procedures—
A. The District has designated the State Procurement Code as its purchasing policy. Any purchases should be equitable for both male and female students and comply with Title IX.
B. If an outside entity reimburses employee expenses (meals, travel, etc.), these expenses should not be submitted to the District for reimbursement.
C. No disbursing of funds is to be done in other offices or at unapproved off-site activities or functions.
D. The District's tax exempt status number should only be used in conformity with the Utah State Tax Commission's guidelines.
E. Purchases of goods or services for personal use or personal benefit of any amount are strictly prohibited.
Review Process—
A. Bank reconciliation(s) should be performed on all District-approved accounts, including credit card transactions. If the bank reconciliation is completed by someone who has access to the accounting system and bank accounts, it should be reviewed and approved by another person, such as the principal or director, business administrator, or a member of the audit committee or board on a monthly basis.
B. Administration should review bank statements and bank reconciliations, as well as credit card statements, and document the review and approval. The District's audit committee or District management should ensure that monthly bank reconciliations and credit/purchase card statement reconciliations are occurring on a monthly basis.
C. A check register should be reviewed when signing checks to ensure all disbursements are reviewed and approved.
D. Administration or designated members of management shall review cash disbursements to verify that all District and State policies and procedures are being followed on a periodic basis.


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