Standard Operating Procedure to Accounts Payable

Vendors (Provider of goods and services)

Due to insurance liability and business partnerships, the district will limit the use of
vendors to an Approved Vendor List. The main objective is to maintain a list that will
meet the districts risk management requirements.

Vendor additions may only be requested by administrators or directors. These requests

will come under close scrutiny before approval is granted. Until a vendor is approved,
no purchases may be made or contracts negotiated.

Vendors are divided into two categories: suppliers and service providers. Required
district paperwork will differ between these two groups.

Adding a Supply Vendor

Supply vendors for maintenance items and food services will be required to submit
copies of general liability insurance along with the vendor paperwork described below.
All other supply vendors will not be required to furnish proof of insurance.

The following paperwork is required to consider an addition of a supply vendor:

A. Request for New Vendor Form - (Must be filled out completely),
B. Request for Information Form (Must be filled out completely),
C. Copy of general liability insurance policy (for maintenance & food services),
and
D. An approval notification by email from the accounting department that the
vendor has been accepted (purchase order may now be generated).

Adding a Service Provider

Administrators and directors will be the only individuals able to enter into a contract
with a service provider. Administrators must honor district-wide contracts with
specified vendors, and do not have the authority to override district-wide vendor
contracts. Please check with the central office if there are questions on existing
contractual agreements.

Employee vs. independent contractor status must be determined for each service
provider before the contract is negotiated or the labor begins. This determination will be
made by central office finance personnel in accordance with applicable IRS regulations.
(Contact the finance department for determination.)

Providers that are deemed by the accounts payable department to be independent

contractors will be handled in the following manner:

The following must be submitted to add a new service provider to the system
(electronically is an efficient method of distributing/receiving forms):
A. IRS W-9 form;
B. Request for New Vendor form;
C. Request for Information Form;
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 D. Independent contractors (sole proprietors) must fill out an Independent
Contractor Insurance Status Form (referees are exempt from this
requirement);
E. The following information is needed from the vendors insurance agent
(speakers and referees are exempt from this requirement student camp
ICs are not exempt from this requirement):
a. Copy of liability insurance ($300,000 per occurrence, $1 million in
aggregate) with Garfield School District Re-2 listed as an additional
insured,
b. Automobile insurance certificate of at least $1 million aggregate, and
c. Workers compensation insurance certificate with a waiver of
subrogation in favor of the district, including sole proprietors/president
of company.
F. Approval notification by email from the accounting department approving the
addition (PO may now be generated).

Petty cash cannot be used for payment to service providers. When petty cash is
utilized to pay for a service, it will be disallowed and will need to be paid back to petty
cash by the person who initiated the transaction. Examples of services include
anyone who prepares food, officiates, consults, trains staff, etc.

Vendors that fail to meet the independent contractor status will be required to complete
the federal, state, and school district requirements for hiring before any labor occurs (
e.g.: fingerprinting, payroll paperwork including P.E.R.A. information.) Contact the
payroll department for further particulars.

Adding Referees/Officials

Referees must be CHSAA certified in order to qualify as an independent contractor in

accordance with IRS regulations. Referees that are not CHSAA certified must go
through the appropriate payroll paperwork and be treated as an employee.

Purchasing goods & services

Ordered goods or services require a requisition to be generated (please see attached

requisition). A requisition is not needed for non-ordered goods or services (e.g.:
utilities, cell phone, security monitoring, quarterly equipment maintenance agreements,
etc.). For all ordered goods or services, (including those paid with a Re-2 credit card), a
requisition must be sent/emailed to the financial secretary.

The financial secretary verifies that the budgeted funds are available in the account, the
vendor is in the system, and the appropriate paperwork is on file at the central office for
service providers. If budgeted funds are not available in the account, then the
secretary must notify the location administrator to include on their budget transfer list
(see attached Budget Transfer Form).

Upon rectification of deficiencies, the requisition may be resubmitted to the secretary

for administrative approval. The requisition must be approved by the administrator of
the location/program being charged. If an administrator charges a different
administrators account, then there must be an email from that locations administrator
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approving the charge (attached to the back of the PO as additional documentation).
Upon receipt and approval of the requisition, the purchase order may be generated and
the goods/services ordered.

The creation of a purchase order is required to encumber the funds from a particular
account string, and to ensure the goods or service have been approved before ordering.

Upon receipt of the goods or the invoice, the financial secretary submits appropriate
documentation to accounts payable for payment. Ordered goods need to be stamped
with the buildings information.

Submitting for Payment:

To submit for payment from a vendor, please include the following, in this order:

A. When there are multiple invoices/changes, prepare a Check Request form

including invoice date and number(s). Review proof cell in column K at
bottom of form. Amount should be zero.
B. Purchase order (include invoice date and number if not using Check
Request form)
C. Attach all remits with a paper clip to front of the check request/purchase
order
D. A numbered invoice from the vendor, with ext. & footings signed. IF A
NUMBERED INVOICE IS NOT PROVIDED IT WILL BE RETURNED TO THE
LOCATION (to avoid duplicate payments).
E. Packing Slip (if applicable)

All purchase orders must be submitted for payment by Wednesday at noon. Checks
are cut on Thursday, and are ready to be mailed out on Friday.

To process Credit Memos/Credit Invoices:

A. Enter credit memo or credit invoice on the Check Request form as you
would an
Invoice but with a minus (-) sign in the amount column. This applies credit
to the Purchase Order.
B. Verify that credit is indeed your locations credit.
C. Enter Account Number that should receive the credit.
D. Review the Proof Cell in Column K of the Check Request Form. Amount
should be zero.
E. If the Credit is too large or will not be used against future invoices during the
current school year, a check should be requested from the vendor. Please
alert the accounts payable manager to assure that the check is applied
correctly.

Reimbursements

1. Staff must submit a requisition before any reimbursable purchase.

2. An administrator or director must approve reimbursable purchases before they
are purchased.
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 3. Receipts must be itemized to be reimbursed and submitted within 10 days of
purchase date on receipt.
4. Unauthorized contracted services/hiring may become the staff members
liability.
5. Alcohol and personal expenses will become the staff members liability.
6. Staff will be reimbursed via a school district check due to tracking purposes.

Credit cards

All credit card purchases need itemized receipts. It is recommended that the credit
card holder submit a requisition with their credit card receipts to the building secretary.
The District is very stringent about what is an allowable district purchase.

School employees are not authorized to purchase on their own credit cards for
subsequent reimbursement. Administrators are given a company credit card for
purchases at their location. These credit cards are issued under your administrators
personal social security number. Please use with discretion to prevent theft identity.

Preauthorized travel

An employee must complete the Excel Prepaid Travel Worksheet form for all prepaid
travel expenses. The estimated amount of all travel expenses should be encumbered
through the use of Purchase Order(s). Prepaid expenses are the following: hotel,
registration fees, meals, parking fees that are required to attend a conference,
workshop, or event.

For approved travel and purchases, employees may also request a cash advance on the
same prepaid travel worksheet. The employee must fill out the appropriate cash
advance form (prepaid travel form), and have it signed by their supervisor. Within 10
days of use of the funds, the employee must complete the Prepaid Travel Recap Excel
form and provide receipts to their financial secretaries and reimburse the district for any
unused portion. Email all Prepaid Travel Requests and Prepaid Travel Recap forms.

Revised 10/05/10

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