Bonnie P. Granger, Esq.
Young Law Group, PLLC
601-354-3660
Office of the State Auditor publishes the
MISSISSIPPI PUBLIC SCHOOL ASSET
MANAGEMENT MANUAL located at
http://www.osa.ms.gov/documents/property/P
ublicSchMan08.pdf
 School Districts are required to safeguard all
assets on their inventory.
 OSA does asset audits with their MSIS audits
and publishes reports of findings on their
website.
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Cost Threshold - All school districts are
required to have and maintain complete and
current lists of each property item with a cost
to the school district of $1000 or more. If an
item is donated, the school district shall
include items on its property inventory with a
fair market value (at the time the donation is
received) of $1000 or more.
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Required Inventory Items - The following property items shall be
included on a school district inventory regardless of the price paid by
the school district to acquire the item or the fair market value of the
item:
Weapons
Cameras and camera equipment (equal to or greater than $250)
Two way radio equipment
Televisions (equal to or greater than $250)
Lawn maintenance equipment
Computer and computer equipment (equal to or greater than $250)
Chain saws
Air compressors
Welding machines
Generators
Motorized vehicles
Cellular phones
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Labels for Items Not on Inventory - School
districts should label property items not
included on their inventory lists with tags
"Property of (Name of School)." These tags
should be different in color than those used
to indicate inventory number.
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Request for disposal of property should be
submitted to the property manager before
the items are discarded. This will insure
proper documentation is available for school
boards to make an informed actions
regarding fixed assets. Disposal and deletion
of fixed assets must be authorized by the
school district board.
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Stolen and Missing Items - Notarized
Affidavit is a written statement notarized by a
notary public detailing the loss of equipment.
Stolen Property shall be reported to the
Sheriff's Office. Items identified need to be
entered in the National Crime Information
Center (NCIC). Disposition of stolen property
shall be reported on the board minutes.
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Lost Property shall be reported to the
property manager and must be accompanied
by a notarized affidavit signed by the
responsible party assigned the property.
Disposition of lost property shall be reported
on the board minutes.
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Assignment of Property - The property manager should
have signatures for property assigned to departments,
divisions or personnel.
Permanent Transfers of assets to other departments or
individuals should indicate the identification of the asset,
who is assigned the asset and who is accepting
responsibility for the asset. Transfer information should be
submitted to the district property manager to update the
property data base.
Hand Receipts - The property manager should be notified
when property is temporarily loaned or transferred to a
person other than the party who is responsible for the
safekeeping of said property. Signature must be obtained
by the party assuming temporary responsibility.
(Jackson, Miss.) - State Auditor Stacey Pickering announced that Roger Liddell,
former principal of Simmons High School in the Hollandale School System in
Washington County, has been indicted on the charge of embezzlement. Deputies
with the Washington County Sheriff’s Department served Liddell last week and he
was released on his own recognizance. On August 24, 2011, the State Auditor
issued a demand against Liddell in the amount of $111,581.38. A complaint
received in 2009 started the investigation into missing computers, televisions
and video equipment. The amount of inventory missing from the Hollandale
School District is valued at $73,032.88.
“Roger Liddell has been indicted on the charge that from 1996 through 2009, he
allegedly embezzled 5 cameras, 6 camcorders, 10 desktop computers; 7 laptop
computers; 8 DVD/CD players; 7 televisions and computer monitors; 9 printers;
4 projects and 3 DVD/CD writers, all valued at $500 or more each and converted
that equipment to his own use,” said State Auditor Stacey Pickering. “I appreciate
the work of District Attorney Dewayne Richardson for putting this case before
the grand jury. Our schools are looking for ways to cut costs and do more with
less. I am committed to holding individuals accountable when they steal from
our children’s education.”
October 17, 2011
(Jackson, Miss.) State Auditor Stacey Pickering announced today the arrest of
Lavon D. Smith, 20, of Brookhaven. A special agent with the State Auditor’s
Office along with the Brookhaven City Police arrested Smith in Brookhaven
on Wednesday, May 16, 2012. Smith is charged with one count of grand
larceny as a result of the Auditor’s investigation. Additional unrelated
charges were filed by the City of Brookhaven Police Department following
the arrest.
Smith, a former maintenance employee with the Brookhaven School District,
allegedly stole metal filing cabinets, desks and chairs belonging to the
school district and sold them to a local salvage yard on May 4, 2012.
“At the State Auditor’s Office, we have a zero-tolerance policy for fraud in
local and state government,” said State Auditor Stacey Pickering. “Recently,
the State Auditor’s Office has investigated several cases involving fraud at
local school districts, and the recent arrests should serve as a warning that
we are tough on crime, especially when funds are being taken away from
our children and local schools.”
Lavon Smith was arrested and booked at the Lincoln County Jail and bond
was set at $1500. The disposed equipment included items that could have
been used by the school district as well as items intended for donation to a
local government agency. Smith was terminated by the Brookhaven School
District following the May 4 incident. - May 17, 2012
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Sections 37-7-455, 17-25-25, 37-7-457 and
37-7-479 as well as 37-27-47 (Agricultural High
Schools) of the Mississippi Code (State Law) sets
out the following with regard to disposing of
surplus personal property of school districts.
Some of these code sections are changing yearly
so it is important to know the current law.
Excerpts provided below relate to personal
property. The complete law can be found at
http://www.sos.ms.gov/education_and_publicati
ons_mscode.aspx .
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(1) Any land, buildings or other property that
is not used for school purposes and which is
not needed in the operation of the schools of
the district may be sold in the manner
established in this section but only after each
charter school located in the school district
has notified the school board that it is not
exercising its right of first refusal on the
property, as provided under Section 37-2861.
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Except as otherwise provided in subsections (2)
and (3) of this section, all such land, buildings or
other property shall be sold only after the receipt
of sealed bids therefor after the time and place of
making such sale has been duly advertised in
some newspaper having a general circulation in
the county in which the property is located once
each week for three (3) consecutive weeks with
the first publication to be made not less than
fifteen (15) days prior to the date upon which
such bids are to be received and opened.
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The property shall be sold to the highest and
best bidder for cash, but the school board
shall have the right to reject any and all bids.
If the property is not sold pursuant to such
advertisement, the school board, by
resolution, may set a date for an open
meeting of the school board to be held within
sixty (60) days after the date upon which the
bids were opened.
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At the meeting held pursuant to such
resolution, the school board may sell by
auction the property for a consideration not
less than the highest sealed bid previously
received pursuant to the advertisement. At
the meeting, any interested party may bid for
cash, and the property shall be sold to the
highest and best bidder for cash, but the
school board shall have the right to reject any
and all bids.
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The school board may require a written
confirmation of bids received at such called
meeting before selling the property at
auction, but it shall not be necessary that
sealed bids be received before conducting the
auction.
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(2) As an alternative to the procedures
established under subsection (1) of this
section, the school board of a school district
may elect, in its discretion, to sell by public
auction any property, other than real property
or buildings of the school district, which is
not used for school or related school
purposes and not needed in the operation of
the schools, according to the procedure in
Section 17-25-25.
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(1) General. The governing authority of a county
or municipality may sell or dispose of any
personal property or real property belonging to
the governing authority when the property has
ceased to be used for public purposes or when,
in the authority's judgment, a sale thereof would
promote the best interest of the governing
authority. For purposes of this section, the term
"personal property," includes, but is not limited
to, equipment, vehicles, fixtures, furniture,
firearms and commodities.
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(2) Public sale. At least ten (10) days before bid
opening, the governing authority shall advertise
its acceptance of bids by posting notices at three
(3) public places located in the county or
municipality that the governing authority serves.
One (1) of the three (3) notices shall be posted at
the governing authority's main office. The
governing authority may designate the manner
by which the bids will be received, including, but
not limited to, bids sealed in an envelope, bids
made electronically or bids made by any other
method that promotes open competition.
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The proceeds of the sale shall be placed in a properly
approved depository to the credit of the proper fund.
(3) Private sale. Where the personal property does not
exceed One Thousand Dollars ($ 1,000.00) in value,
the governing authority, by a unanimous approval of
its members, may sell or dispose of the property at a
private sale. The proceeds of the sale shall be placed
in a properly approved depository to the credit of the
proper fund.
Note: To have unanimous consent of all members, all
members must be present and vote affirmatively.
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(4) Public auction. The governing authority
of a county or municipality may sell or
dispose of any surplus personal or real
property at a public auction that shall be
conducted by an auctioneer or auction
company that meets the standards
established by the State Department of Audit
and is hired by the governing authority of a
county or municipality.
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(5) If the governing authority finds that the
fair market value of the personal property or
real property is zero and this finding is
entered on the minutes of the authority, then
the governing authority may dispose of such
property in the manner it deems appropriate
and in its best interest, but no official or
employee of the governing authority shall
derive any personal economic benefit from
such disposal.
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(6) If the property may be of use or benefit to
any federal agency or authority, another
governing authority or state agency of the
State of Mississippi, or a state agency or
governing authority of another state, it may
be disposed of in accordance with Section
31-7-13(m)(vi).
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All conveyances of property under the
authority of Section 37-7-455 shall be for a
cash consideration. The proceeds of such sale
shall be placed in the maintenance fund of
the school district. (Other information if sale
involves realty.)
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Any group of persons, any association, club or
corporation, or any county, municipality or other
political subdivision having acquired school
buildings, land, property or related facilities under
the provisions of Sections 37-7-471 through 37-7483, may, by resolution duly adopted at a regular or
special meeting called and convened for such
purpose, determine that such school buildings, land,
property or related facilities, or any portion thereof,
are no longer needed or used for the purpose for
which such was acquired, and may by such resolution
provide for the sale of such school buildings, land,
property or related facilities, or any portion thereof.
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All such land, buildings or other property to be
sold pursuant to the authority granted in Section
37-27-43, shall be sold only after the receipt of
sealed bids therefor after the time and place of
making such sale shall have been duly advertised
in some newspaper having a general circulation
in the county in which the property is located
once each week for three consecutive weeks with
the first publication to be made not less than
fifteen days prior to the date upon which such
bids are to be received and opened.
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The property shall be sold to the highest and
best bidder for cash, but the board of
trustees shall have the right to reject any and
all bids. If the property be not sold pursuant
to such advertisement, the board of trustees
may, by resolution, set a date for an open
meeting of said board of trustees to be held
within sixty days after the date upon which
the bids were opened.
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At the meeting held pursuant to such
resolution the board of trustees may sell by
auction the said property for a consideration
not less than the highest sealed bid
previously received pursuant to said
advertisement. At the meeting called
pursuant to said resolution any interested
party may bid for cash and the property shall
be sold to the highest and best bidder for
cash, but the board of trustees shall have the
right to reject any and all bids.
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The board of trustees may require a written
confirmation of bids received at such called
meeting before selling the property at auction,
but it shall not be necessary that sealed bids be
received before conducting the auction. When the
sale of such property shall be authorized and
approved by the board of trustees the president
of the board of trustees shall be authorized and
empowered to execute a conveyance of said
property upon the terms and for the
consideration fixed by the board.
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(vi) Intergovernmental sales and transfers. Purchases,
sales, transfers or trades by governing authorities or
state agencies when such purchases, sales, transfers
or trades are made by a private treaty agreement or
through means of negotiation, from any federal
agency or authority, another governing authority or
state agency of the State of Mississippi, or any state
agency or governing authority of another state.
Nothing in this section shall permit such purchases
through public auction except as provided for in
subparagraph (v) of this section. It is the intent of this
section to allow governmental entities to dispose of
and/or purchase commodities from other
governmental entities at a price that is agreed to by
both parties.
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This shall allow for purchases and/or sales at
prices which may be determined to be below the
market value if the selling entity determines that
the sale at below market value is in the best
interest of the taxpayers of the state. Governing
authorities shall place the terms of the
agreement and any justification on the minutes,
and state agencies shall obtain approval from the
Department of Finance and Administration, prior
to releasing or taking possession of the
commodities.
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Advertise for three weeks and open sealed bids
and award to the highest bidder – if any bids are
received.
Make sure to call anyone who may bid on them –
even as a group or lump sum for multiple items
such as monitors – even call salvage vendors.
If no bids are received, we have been declaring
the items as having “no value”. Even though this
law was changed recently, we are procuring an
Attorney General’s opinion to enable districts to
now do this under Section 17-25-25 (5) and
disposing in the most efficient manner.
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Section 25-4-105, Miss. Code Ann. (1972),
states:
(b) Be a purchaser, direct or indirect, at any sale
made by him in his official capacity or by the
governmental entity of which he is an officer or
employee, except in respect of the sale of goods
or services when provided as public utilities or
offered to the general public on a uniform price
schedule.
No school board member or school employee or
any member of their immediate family can
purchase surplus school district property –even
at a private auction. – AG Opinion.
Mississippi State Statutes:
- 31-7-1 Definitions (commodities)
- 31-7-13 – General Purchasing Law
Purchasing with Federal Funds
- Must follow both federal and state law – Mississippi Code
exempts pure services but Federal law does not. EDGAR
requires all purchases to be reasonable and necessary. (Also
has thresholds).
- District must prove purchase price was reasonable for all
items purchased with federal funds. (Includes Title funds,
special education funds, food service funds, etc.)
Local districts can have tighter policies than law that must be
followed. For example, lower thresholds, more requirements,
etc.
(e) "Commodities" means and includes the various
commodities, goods, merchandise, furniture, equipment,
automotive equipment of every kind, and other personal
property purchased by the agencies of the state and
governing authorities, but not commodities purchased for
resale or raw materials converted into products for resale.
(i) "Equipment" shall be construed to include: automobiles, trucks,
tractors, office appliances and all other equipment of every kind and
description.
(ii) "Furniture" shall be construed to include: desks, chairs, tables,
seats, filing cabinets, bookcases and all other items of a similar nature
as well as dormitory furniture, appliances, carpets and all other items
of personal property generally referred to as home, office or school
furniture.
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(h) "Purchase" means buying, renting, leasing
or otherwise acquiring.
- What about copy machines being leased
or rented?
- What about renting mats, mops,
uniforms, etc. from linen companies?
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$5,000 – $50,000 – Two quotes (on letterhead and
signed is General Rule).
Over $50,000 – Formal bid after advertising once a
week for two consecutive weeks and opening bids not
less than 7 working days after the final notice.
Must evaluate bids using only factors put in the
specifications.
School board must approve all bids before they are
awarded.
Quotes must be approved by school board but they
can allow a purchasing agent to order upon receipt of
quotes – depending on the policy of the school
board.
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If federal purchase - must get at least two
written quotes signed by vendor – for
purchases up to $100,000.
If using state funds – must get at least one
quote if purchase exceeds $5,000.
The federal monitors and annual auditors
verify the quotes are in place. The second
quote is required to prove the price is
reasonable as well as meet procurement
guidelines.
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Federal purchases – How do you prove the
price is reasonable?
Federal Program Directors are being told that
“sole source” really does not exist. Even
though some are using it for state law, they
must still have documentation showing the
purchase was reasonable and necessary.
Auditors will question the purchases that lack
documentation.
This presentation is intended solely to
provide general information and does not
constitute legal advice. Attendance at the
presentation or later review of these printed
materials does not create an attorney-client
relationship with Young Law Group,
PLLC. You should not take any action based
upon any information in this presentation
without first consulting legal counsel familiar
with your particular circumstances. Laws in
this area change often.
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