school finance 101 2015-2016 budget services & financial planning division

School Finance 101

2015-2016

Budget Services & Financial Planning Division

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.

Introduction

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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

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Pitfalls to Avoid - Procurement

1. Bid Splitting

2. Rebates, Premiums, Incentives and Kickbacks

3. Overlooking Competition

4. Lack of Funding

5. After-the-Fact Contracts

6. Failure to request Freeze Approval (if necessary)

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Pitfalls to Avoid - Procurement

How do we avoid these pitfalls?

PLAN AHEAD

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School Site Payment Options

Shopping Carts Imprest Fund Credit Cards

• 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

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Shopping Cart

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Shopping Cart

Title I

BUL-6517.0, Additional Review Process for Supplemental Instructional Materials (SIM) Purchased with Title I funds 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.

An Imprest fund allows an administrator to make direct purchases of items utilizing a local site checking account. REF-1706.4, Imprest Funds 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 – Coordinating Financial Managers at the

Local District assist these schools with their Imprest Funds.

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Imprest Fund

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Imprest Fund

AmountsFor 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.

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.

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Imprest Fund

Establishing an Imprest Fund for a New Administrator

Imprest Fund

Operation of the Imprest Fund• Must have Principals original signature in blue ink on Imprest

Claim Form, Imprest Reconciliation Form, and Bank Reconciliation Form (facsimile or rubberstamp signature is not acceptable)

• 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 Accounts Payable Branch and your school’s Fiscal Specialist or your school’s Coordinating Financial Manager.

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Authorized Expenditures

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Imprest Fund

Admission Fees Conference Registration fees

Contract bus services

Equipment <=$1,000 per item

Postage, shipping or freight

Refreshments for Advisory

Committee Meetings

Membership fees Supplies <= $500 per item

Prohibited Expenditures

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Imprest Fund

Alterations or repairs

Business cards, letterheads and envelopes

Cell phones

Conference or convention expense other than registrationContracts, down payments or installment purchases

Entertainment

Prohibited Expenditures

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Imprest Fund

Gifts or donations

Party supplies or non-instructional decorations

Meals and lodging

Payments to speakers, artists and other personal servicesRental of facilities

Salary payments of any kind

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.

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Imprest Fund

Closing Procedures

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Imprest Fund

Title I

The following are the only allowable Title I expenditures:

Admissions to approved educational activities

Conference or registration fees for employees

Allowable parent training and parent travel expenses

Contract bus services for educational field trips

Supplemental Instructional Materials

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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.

• 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.

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Policies & Procedures

District Credit Cards

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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 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.

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• 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.

Procurement Credit Card (P-Card)

General Information

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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.


Guidelines for Card Usage

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:

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Sales Invoices/ Receipts


Name of merchant

Itemized description of purchase

Purchase amount

Date

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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.


Reconciliation

Prohibited Expenditures (not a complete list)

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Memberships such as Amazon Prime, Costco, Sam’s Club

Gifts, Donations or Contributions

Gift Cards, Greeting Cards, and Gift Wrapping

Computers and Laptops

Cell phones, Pagers and Associated Service Fees

Book Purchases from Program 14152


Prohibited Expenditures (not a complete list)

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Travel Expenses

Transportation

Restaurants and Bars, Alcoholic and non- alcoholic beverages, and Entertainment

Rental of Non-District Facilities

Personal Items

Microsoft Software


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Title I

The use of the P-Card is restricted to only three items and under certain circumstances. The items are:

Admission fees

Conference Attendance

fees

SIM – Supplemental

IMA


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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.


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.

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Toshiba Ghost Card


• 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 (existing machines)cost $0.0085 per copy− Duplo copies (new machines) copies cost $0.0098 per copy

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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.

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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.

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Toshiba Ghost Card

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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.

Toshiba Ghost Card

• See BUL-5525.2 District Policy on Travel for more information.• Travel Credit Card (physical credit card).

• Account issued to the Cardholder who must be the same individual as the P-Card holder.

• The Travel Card is used to pay for airfare, hotel and transportation expenses for employees and students.

• Approved Travel Request Notification (ATRN) numbers generated must be obtained for travelers prior to booking or making travel purchases.

• Approved/signed copies of the 10.12.2 should be uploaded/attached to the related Travel Card reconciliation document/transaction in SAP.

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Travel Card


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.

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Travel Card

Title I

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School Site Needs

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Satisfying School Site Needs

Supplies, Equipment and General Services

Travel/Conference Attendance

Rental of Non-District Facility

Professional Service Contracts

Supplies, Equipment andGeneral Services

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• General Stores Distribution – Shopping Cart transactionsGeneral 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 Memorandum 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

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 10.12.2 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.

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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.

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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

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Human Resources

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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

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Human Resources

Request for Personnel Action (RPA)

Freeze Exemptions/PC Review

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.

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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


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Information needed to complete an RPA can be found on the following reports:

• Position With Incumbent (PWI)

• School Budget Signature Form


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Freeze Exemption/PC Review

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CERTIFICATED POSITIONS

Freeze approval IS required for: 1. Opening a limited-term assignment (includes, but is not limited to: Professional Experts, and Temporary Certificated Assignments)

Freeze is NOT required for: 1. Filling vacant positions 2. Changing a position’s funding source 3. Decreasing the basis of a position

The following are exempt from all freeze restrictions: 1. School-based certificated positions 2. Categorical Limited Contract Teachers


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CLASSIFIED POSITIONS

Freeze approval IS required for: 1. Requests for new classifications or upward reclassifications 2. Requests for changes in basis or hours for filled classified positions

Freeze approval is NOT required for: 1. Filling of existing classified and Teacher Assistant positions 2. Establishment of new school-based classified positions 3. Closure of any vacant classified position (still requires PC review) 4. Modification of basis/hours of vacant classified positions (still requires PC review and may be subject to applicable bargaining agreements) 5. Relief positions

Classified positions closed in budget development for FY 2015-16 cannot be reopened for one (1) year. The closure of an occupied position will not be allowed.


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FREEZE EXEMPTION PROCESS

1. Complete Request for Freeze Exemption: Staffing. 2. Attach responses to the following questions on a separate sheet of

paper: • Please provide an explanation justifying why this position is essential to the

operations of the school or office. • Identify at a minimum ten typical duties that will be assigned to this position.

(Please do not copy from the class description.) 3. • Please provide a current organizational chart with the position and supervisor

indicated. If upgrading a position or closing a position to open a new one, please indicate that on the organizational chart.

• Please identify the funding source (include name of funding source in addition to code). If grant funded, please specify the duration of the grant. 5. For new position requests, describe how the responsibilities of this position are currently being fulfilled.

3. Submit information to your school’s Fiscal Specialist.


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CATEGORICAL LIMITED CONTRACT TEACHERS

A special contract permits the hiring of a highly-qualified person in temporary status to provide instruction to participating students.Assigned time may not exceed 48 hours per pay period. Budget the total annual hours needed times the hourly rate.This position is currently exempt from freeze restrictions.

Hiring Procedure• Complete the Contract for Employment as a Categorical Limited Contract

Teacher (HR Form 13676) and the Request for Personnel Action (RPA).• Submit the form at least four weeks prior to the start of the CLC service to

the school’s Fiscal Specialist. Fiscal Specialist will submit the signed Contract for Employment to the Human Resources representative.

• Once approved the applicant will be contacted by an HR representative to complete all remaining documentation.


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PROFESSIONAL EXPERTS

Professional Expert assignments may… • Be used for assigning qualified persons on a temporary basis for a unique,

non-repetitive, or specific projects.

Professional Expert assignments may not… • Be used to perform any set of duties which are described in a certificated,

classified, or other unclassified class description. • Be used for the purpose of avoiding payment of overtime or for providing

services which certificated or classified employees are customarily hired to perform.

This position is currently requires freeze approval.


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PROFESSIONAL EXPERTS

To establish a professional expert assignment, administrators need to:1. Complete the following forms:

• Professional Expert Evaluation Standards Form, • Request for Personnel Action Form, • Professional Application Form, and • Duty Statement

2. Submit forms and additional information to: Human Resources Division Placement and Assignments Beaudry Bldg., 15th Floor Attention: Vanessa Franklin, Personnel Specialist

3. Ensure that funding is available.

THANK YOU!

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school finance 101 2015-2016 budget services & financial planning division

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