School
Finance 101
2015-2016
Budget Services & Financial Planning Division
Introduction
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.
2
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)
4
Pitfalls to Avoid - Procurement
5
School Site Payment Options
Shopping Carts
Imprest Fund
Credit Cards
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Shopping Cart
• 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
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.
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Imprest Fund
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
Amounts
For 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.
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Imprest Fund
Establishing an Imprest Fund for a New Administrator
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
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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Imprest Fund
Authorized Expenditures
Admission Fees
Equipment
<=$1,000 per item
Conference
Registration fees
Contract bus
services
Postage, shipping
or freight
Refreshments for
Advisory
Committee
Meetings
Membership fees
Supplies <= $500
per item
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Imprest Fund
Prohibited Expenditures
Alterations or repairs
Business cards, letterheads and envelopes
Cell phones
Conference or convention expense other than registration
Contracts, down payments or installment purchases
Entertainment
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Imprest Fund
Prohibited Expenditures
Gifts or donations
Party supplies or non-instructional decorations
Meals and lodging
Payments to speakers, artists and other personal services
Rental of facilities
Salary payments of any kind
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Imprest Fund
Closing Procedures
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
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 PCard.
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.
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District Credit Cards
Policies & Procedures
• 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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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 20152016.
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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Procurement Credit Card (P-Card)
General Information
• 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.
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Procurement Credit Card (P-Card)
Guidelines for Card Usage
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.
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Procurement Credit Card (P-Card)
Sales Invoices/ Receipts
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:
Name of merchant
Itemized description of purchase
Purchase amount
Date
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Procurement Credit Card (P-Card)
Reconciliation
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.
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Procurement Credit Card (P-Card)
Prohibited Expenditures (not a complete list)
Book Purchases from Program 14152
Cell phones, Pagers and Associated Service Fees
Computers and Laptops
Gift Cards, Greeting Cards, and Gift Wrapping
Gifts, Donations or Contributions
Memberships such as Amazon Prime, Costco, Sam’s Club
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Procurement Credit Card (P-Card)
Prohibited Expenditures (not a complete list)
Microsoft Software
Personal Items
Rental of Non-District Facilities
Restaurants and Bars, Alcoholic and non- alcoholic beverages, and Entertainment
Transportation
Travel Expenses
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Procurement Credit Card (P-Card)
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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Procurement Credit Card (P-Card)
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.
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Toshiba Ghost Card
Policies & Procedures
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
Policies & Procedures
• 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
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.
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Travel Card
Policies & Procedures
• 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
Title I
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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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
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Supplies, Equipment and
General Services
• General Stores Distribution – Shopping Cart transactions
General 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
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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
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Request for Personnel Action
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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Request for Personnel Action
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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Request for Personnel Action
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
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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Freeze Exemption/PC Review
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/PC Review
FREEZE EXEMPTION PROCESS
1.
2.
Complete Request for Freeze Exemption: Staffing.
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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Special Position Guidelines
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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Special Position Guidelines
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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Special Position Guidelines
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.
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THANK YOU!
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