RECEIVED JUL 1 Office of Desegregation Monitoring DATE: June 24, 1991 TO: Board of Directors THROUGH: Dr. Ruth S. Steele, Superintendent of Schools (JZI FROM: SUBJECT: /VChip Jones, Manager of Support Services [^Charlie Neal, Director of Purchasing Corrected Copy of Purchasing Policy Attached is a corrected copy of the purchasing policy to replace that submitted for first reading on June 19, 1991. The substantive changes are: a. Section 1-101
Rewritten. b. Section 1-108
Last sentence added to clarify useage of singular and plural words. c. Section 1-108 (13)
Added subsection (o) to exempt commodities purchased for resale. d. Section 2-105
Last line should have read, "involved or when special knowledge or skills are needed."BOARD OF DIRECTORS LITTLE ROCK SCHOOL DISTRICT PROCUREMENT POLICY SECTION GENERAL PROVISIONS Purpose: The primary purposes of this policy are
To simplify, clarify and update the policy governing procurement by the District. To permit the continued development of procurement regulations and procedures. To provide for increased public confidence in the procedures followed in the District's procurement activities. To ensure the fair and equitable treatment of all persons who deal with the procurement system of this school district. To provide increased economy in District procurement activities by fostering effective competition. To provide safeguards for the maintenance of a procurement system of quality and integrity. 1-101 General Principles of Applicable Law
The Little Rock School Districts Procurement Policy shall be governed by the applicable laws of the State of Arkansas. 1-102 Obligation of Good Faith
All parties involved in the negotiation, performance, or administration of procurement transactions or contracts are required to act in good faith. tl Good faith II means honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing. 1-103 Application
1 The policy shall apply to every expenditure of District funds or funds controlled by the District, regardless of their source, including state and federal assistance monies, under any contract or procurement action for commodities or contractual services. District commodities. It shall also apply to the disposal of Nothing in this policy or in regulations promulgated hereunder shall prevent the District from complying with the terms and conditions of any grant, gift, bequest, or cooperative agreement.Little Rock School District Procurement Policy Page 2 1-104 Severability
If any provision of this policy or any application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions of application of this policy which can be given effect without the invalid provision or application, coid to this end the provisions of this policy are declared to be severable. 1-105 Current Policies Repealed
The following policies are rescinded and replaced by provisions contained herein
EPS CODE DJ EPS CODE DJA EPS CODE DJC EPS CODE DJF EPS CODE DJG EPS CODE EDA EPS CODE GBI TITLE: TITLE: TITLE: TITLE: TITLE: TITLE: TITLE: PURCHASING PURCHASING AUTHORITY BIDDING REQUIREMENTS PURCHASING PROCEDURES VENDOR RELATIONS RECEIVING AND WAREHOUSING STAFF GIFTS AND SOLICITATIONS 1-106 Current Policies Amended: The following policies, or all other policies or parts of policies containing provisions which may be in conflict or inconsistent herewith, are hereby amended and the application of this policy shall prevail. EPS CODE KHA EPS CODE DI EPS CODE DIA EPS CODE DK TITLE: TITLE
TITLE: TITLE: GIFTS TO THE SCHOOLS FISCAL ACCOUNTING AND REPORTING INTRA SCHOOL FUNDS DISBURSEMENTS 1-107 Determinations
Written determinations and findings required by this policy shall be retained in the appropriate official contract file of the Purchasing office for a period of five (5) years. 1-108 Definitions
The following words shall have the meanings as defined whenever they appear in this policy or associated implementing regulations or contracts, unless: (a) the context in which they are used clearly requires a different meaning, or (b) a different definition is prescribed for a particular policy provision or regulation. Also, unless the context requires otherwise, words in the singular include the plural, and those in the plural include the singular.Little Rock School District Procurement Policy Page 3 (1) Business means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity. (2) Commodities means all supplies, goods, materials. equipment, machinery, facilities, personal property and services to include personal and professional. (3) Construction means the process of building. altering, repairing, improving, or demolishing any public structure or building, or other public improvement of any kind to any public real property. It does not include the routine operation, repair, or maintenance of existing structures, buildings, or real property. (4) Contract means all types of District agreements. regardless of what they may be called, for the procurement or disposal of commodities, services, or construction. Collective bargaining agreements between the District and its employees are excluded from coverage under this policy. (5) Contract Modification means any written alteration in specification, delivery point, rate of delivery, period of performance, price, quantity, or other provision of any contract accomplished by mutual action of the parties to the contract. (6) governmental body. Contractor means any person having a contract with a (7) Cooperative purchasing means procurement conducted by or on behalf of more than one public procurement unit. (8) or characteristic. Data means recorded information, regardless of form (9) Designee means a duly authorized representative of a person holding a superior position. (10) Debarment means the disqualification of a person or business to receive invitations for bids, requests for proposals, requests for quotes, or the award of a contract by the District for a specified period of time commensurate with the seriousness of the offense, the failure, or the inadequacy of performance. (11) Employee means an individual drawing a salary from a governmental body, whether elected or not. (12) Excess commodities means commodities having a remaining useful life but which are no longer required by the using organization in possession of the commodities.Little Rock School District Procurement Policy Page 4 (13) Exempt commodities and services means those categories of commodities and services that are exempt from competitive bidding. The categories are
(a) Advertising in electronic and print media, periodicals and related publications. (b) Fees, including medical and physician fees. (c) Freight and storage charges and demurrage. (d) Licenses. (e) (f) Maintenance on office machines and technical equipment. Membership in professional, trade, and other similar associations. (g) Postage. (h) Taxes. (i) Services of visiting speakers, lecturers, and performing artists. (j) Travel expense items, such as room and board and transportation charges, (k) Utility services or equipment which is defined, recognized, and regulated by the Arkansas Public Service Commission as a monopoly offering. (1) Professional and consultant services except as may be provided elsewhere in this policy. (m) Published books, manuals, maps, periodicals, films, tapes, diskettes, technical pamphlets, copyrighted material, informational and educational resource material, and other educational program support material when appropriately designated. (n) Items, components, or parts that would be compatible or otherwise cause incompatibility when used with or added to an existing set or system. (o) Commodities procured for resale in bookstores, canteens, gift shops and other similar operations. However, commodities procured under this definition shall not be shared, sold or transferred as a method of circumventing policy or regulation.Little Roc)c School District Procurement Policy Page 5 (14) Grant means the furnishing of assistance, public or private, whether financial or otherwise, to any person to support a program authorized by the Board of Directors. (15) May denotes the permissive. (16) Person means any business, individual, union. committee, club, other organization, or group of individuals. (17) Procurement means buying, purchasing, renting. leasing, or otherwise acquiring any commodities, services, or construction. It also includes all functions that pertain to the obtaining of any commodity, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. Procurement Official or Purchasing Official means (18) the person duly authorized to enter into and administer contracts and ma)te written determinations with respect The term also includes an authorized representative thereto. acting within the limits of authority. (19) Regulation means the administrative instructions developed to interpret and define applicable policy, and to prescribe the requirements, procedures, and practices necessary to implement that policy. (20) Services means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term includes professional and personal services but does not include employment agreements or collective bargaining agreements. (21) Shall means the imperative. (22) State Contract means a contract for the procurement of commodities or services awarded and administered by the State of Arlcansas. (23) Surplus commodities means any commodities no longer having any use to the District. This includes obsolete commodities, scrap materials, and nonexpendable supplies and equipment that have completed their useful life cycle.Little Rock School District Procurement Policy Page 6 (2U) Siis pens ion means the disqualification of a person or business to receive invitations for bids, requests for proposals, requests for quotes, or the award of a contract by the District for a temporary period pending the completion of an investigation, or during any legal proceedings that may ensue because a person is suspected upon probable cause of engaging in criminal, fraudulent or improper conduct, or failure or inadequacy of perfoiroance which may lead to debarment.Little Rock School District Procurement Policy Page 7 SECTION 2 - AUTHORITY AND DUTIES OF THE PROCUREMENT OFFICE 2-101 Designated Purchasing and Contracting Official: The designated legal purchasing agent for the Little Rock School District is the Director of Purchasing. This appointment is in accordance with Title 6, Chapter 21, Subchapter 3 of the Arkansas Code of 1987 Annotated. 2-102 Purchasing Director's Authority: Except as otherwise expressly provided in this policy, the authority of the Purchasing Director encompasses procurement of all commodities, services, and construction on behalf of the Little Rock School District, regardless of the source of funding. 2-103 Responsibilities of the Purchasing Director: The Director of Purchasing is the primary responsible official and shall possess the express authority and jurisdiction in matters pertaining to: (1) The procurement and supervision of procurement of all comnodities, services, and construction needed by the District. (2) The supervision, management and control over all inventories of commodities belonging to the District, regardless of the method or source of acquisition. (3) The management and supervision of the distribution, disposition, disposal and inventory control procedures of the District's fixed assets (personal property). (4) Management responsibility for the operation of the District's Central Supply Center and such warehouses and storerooms as may be established for the storage and distribution of materials and supplies. (5) The selection, qualification and disqualification of vendors, suppliers, and contractors. (6) Establishment, management and control of programs for the development of specifications, quality standards, inspection, testing and acceptance of commodities and services. (7) Recommendations to the Superintendent and the Board of Directors on policies pertaining to procurement functions of the Little Rock School District.Little Rock School District Procurement Policy Page 8 (8) The promulgation, dissemination, and enforcement of rules, regulations, and procedures related to procurement, materials management and construction, as long as these are not inconsistent with applicable federal, state, or Little Rock School District Board statutes or policies. 2-104 Authority to Delegate
The Director of Purchasing shall have the authority to delegate certain procurement functions and responsibilities as required to enhance effectiveness and economy, and convene such committees or advisory councils as may be necessary to accomplish procurement activities. The Director shall retain oversight and general management authority in instances where purchasing activities have been delegated. 2-105 Coordination: The Director of Purchasing shall coordinate with user schools and departments as needed in the development of reciuirements and specifications. Users will provide specifications when technical or nonstandard factors are involved or when special knowledge or skills are needed. 2-106 Unauthorized Purchases: Except as provided herein, it shall be unlawful for any District official or employee to order or initiate purchase of any commodities, services, or construction, or make any contract or agreement within the provisions of this policy other than through the Purchasing Department, and the District shall not be obligated for any purchase or contract made contrary to these provisions. 2-107 Procurement Violations: The Director of Purchasing shall have investigative responsibility involving alleged violations and make recommendations to the Superintendent in those instances of actual violations of procurement statutes as prescribed by Act 724 of 1991, the "Local Fiscal Management Responsibility Act."DATE: June 19, 1991 TO: Board of Directors FROM: SUBJECT: Dr. Ruth S. Steele, Superintendent of Schools Purchasing Policy for First Reading The attached policy presents the first and most important sections of the new purchasing policy, which will consist of a total of 10 sections when finished. The remaining sections will be completed for the July Agenda meeting. Although the procedures have been in place, the development of the formal governing policies to replace the rather ambiguous and confusing 1981 policies have evolved slowly due decision-making level. to several changes in administrators at the As part of the overall policy review, and because of current personnel turnover, we are making a major effort to complete this rather complex change prior to the start of the coming school year. The overall concept is to replace several random policies with one comprehensive document that reaffirms the authority and responsibility assigned to the central purchasing office, while realigning the manner in wiiich the policy and the implementing regulations are presented to conform to the format of the procurement code model developed by the American Bar Association. Converting the District purchasing to a system patterned after the Model Procurement Code (MPC) has been an objective of the District for a long time. This process was first presented to the Board in February of 1989. (See enclosed transmittal memorandum dated February 13, 1989) Also enclosed is a brief introduction to the MPC, which will give you an idea of what is involved. The entire document will consist of 10 sections. The Model Procurement Code contains 12 articles, but for our purposes all appropriate provisions can be combined into 10 sub-headings or sections. The first two are key in that they establish the authority and the level- of responsibility which will prevail throughout the full procurement process. The provisions covered have been carefully cross-referenced against all current federal and state laws and regulations to ensure conformity. Enclosed also are copies of selected laws and policies that should assist you in your review. I recommend that you approve for first reading the enclosed new initial policy. BOARD OF DIRECTORS LITTLE ROCK SCHOOL DISTRICT PROCUREMENT POLICY SECTION GENERAL PROVISIONS Purpose: The primary purposes of this policy are: To simplify, clarify and update the policy governing procurement by the District. To permit the continued development of procurement regulations and procedures. To provide for increased public confidence in the procedures followed in the District's procurement activities. To insure the fair and equitable treatment of all persons who deal with the procurement system of this school district. activitie To provide increased economy in District procurement by fostering effective competition. To provide safeguards for the maintenance of a procurement system of quality and integrity. 1-101 Supplementary General Principles of Law Applicable
Unless displaced by the particular provisions of this policy, the principles of law and equity, including the applicable statutes of the State of Arkansas, and law relative to capacity to contract, agency, fraud, misrepresentation, duress, coercion, mistake, or bankruptcy shall supplement the provisions of this policy. 1-102 Obligation of Good Faith: All parties involved in the negotiation, performance, or administration of procurement transactions or contracts are required to act in good faith. "Good faith means honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing. 1-103 Application: 1 The policy shall apply to every expenditure of District funds or funds controlled by the District, regardless of their source, including state and federal assistance monies, by this District under any contract or procurement action for commodities or contractual services. the disposal of District commodities. It shall also apply to Nothing in this policy or in regulations promulgated hereunder shall prevent the District from complying with the terms and conditions of any grant, gift, bequest, or cooperative agreement.Little Rock School District Procurement Policy Page 2 1-104 Severability: If any provision of this policy or any application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions of application of this policy which can be given effect without the invalid provision or application, and to this end the provisions of this policy are declared to be severable. 1-105 Cixrrent Policies Repealed: The following policies are rescinded and replaced by provisions contained herein: EPS CODE DJ EPS CODE DJA EPS CODE DJC EPS CODE DJF EPS CODE DJG EPS CODE EDA EPS CODE GBI TITLE: TITLE: TITLE: TITLE: TITLE: TITLE: TITLE: PURCHASING PURCHASING AUTHORITY BIDDING REQUIREMENTS PURCHASING PROCEDURES VENDOR RELATIONS RECEIVING AND WAREHOUSING STAFF GIFTS AND SOLICITATIONS 1-106 Current Policies Amended: The following policies, or all other policies or parts of policies containing provisions which may be in conflict or inconsistent herewith are hereby amended and the application of this policy shall prevail. EPS CODE KHA EPS CODE DI EPS CODE DIA EPS CODE DK TITLE: TITLE: TITLE: TITLE: GIFTS TO THE SCHOOLS FISCAL ACCOUNTING AND REPORTING INTRA SCHOOL FUNDS DISBURSEMENTS 1-107 Determinations: Written determinations and findings required by this policy shall be retained in the appropriate official contract file of the Department of Purchasing for a period of five (5) years. 1-108 Definitions: The following words shall have the meanings as defined whenever they appear in this policy or associated implementing regulations or contracts, unless: (a) the context in which they are used clearly requires a different meaning, or (b) a different definition is prescribed for a particular policy provision or regulation.Little Rock School District Procurement Policy Page 3 (1) Business means any corporation, partnership, individual, sole proprietorship, joint stock company, venture, or any other private legal entity. joint (2) Commodities means all supplies, goods, materials. equipment, machinery, facilities, personal property services to include personal and professional. .nd (3) Construction means the process of building. altering, repairing, improving, or demolishing any public structure or building, or other public improvements of any kind to any public real property. It does not include the routine operation, repair, or maintenance of existing structures, buildings, or real property. (4) Contract means all types of District agreements. regardless of what they may be called, for the procurement or disposal of commodities, services, or construction. Collective bargaining agreements between the District and its employees are excluded from coverage under this policy. Contract Modification ( 5 ) means any written alteration in specifications, delivery point, rate of delivery, period of performance, price, quantity, or other provisions of any contract accomplished by mutual action of the parties to the contract. (6) governmental body. Contractor means any person having a contract with a (7 ) Cooperative purchasing means procurement conducted by, or on behalf of more than one public procurement unit. (8) or characteristic. Data means recorded information, regardless of form { 9 ) Designee means a duly authorized representative of a person holding a superior position. (10) Debarment means the disqualification of a person or business to receive invitations for bids or requests for proposals or requests for quotes or the award of a contract by the District for a specified period of time commensurate with the seriousness of the offense, of the failure, or the inadequacy of performance. (11) Employee means an individual drawing a salary from a governmental body, whether elected or not. Excess commodities means supplies having a remaining (12) useful life but which are no longer required by the using organization in possession of the supplies.Little Rock School District Procurement Policy Page 4 (13) Exempt commodities and services means those categories of commodities and services that are exempt from competitive bidding. These categories are: (a) Advertising in electronic and print media, periodicals and related publications. (b) Fees, including medical fees and physician fees. (c) Freight and storage charges and demurrage. (d) Licenses. (e) Maintenance on office machines and technical equipment. (f) Membership in professional, trade, and other similar associations. (g) Postage. (h) Taxes. (i) Services of visiting speakers, lecturers, and performing artists, Travel expense items, such as room and board and transportation charges. (k) Utility services or equipment which is defined, recognized, and regulated by the Arkansas Public Service Commission as a monopoly offering. (1) Professional and consultant services except as may be provided elsewhere in this policy. (m) Published books, manuals, maps, periodicals, films, tapes, diskettes, technical pamphlets, copyrighted material, informational and educational resource material, and other educational program support material when appropriately designated. (n) Items, components, or parts that would otherwise be compatible or cause incompatibility when used with or added to an existing set or system. (j )Little Rock School District Procurement Policy Page 5 ( 14) Grant means the furnishing of assistance, public or private, whether financial or otherwise, to any person to support a program authorized by the Board of Directors. It does not include an award whose primary purpose is to procure an end product, whether in the form of supplies, services. or construction
a contract resulting from uch an award is not a grant but a procurement contract. (15) May denotes the permissive. (16) Person means any business, individual, union, committee, club, other organization, or group of individuals. (17) leasing, Procurement means buying, purchasing, renting. construction. or otherwise acquiring any commodities, services, or It also includes all functions that pertain to the obtaining of any commodity, service, or construction, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. (18 ) Procurement official or purchasing official means the person duly authorized to enter into and administer contracts and make written determinations with respect thereto. The term also includes an authorized representative acting within the limits of authority. (19) Regulation means the administrative instructions developed to interpret and define applicable policy, and prescribe the requirements, procedures, and practices necessary to implement that policy. (20) Services means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports, which are merely incidental to the required performance. This term includes professional and personal services, but does not include employment agreements or collective bargaining agreements. ( 21) Shall means the imperative. ( 22 ) State Contract means a contract for the procurement of commodities or services awarded and administered by the State of Arkansas. ( 23 ) Surplus commodities means any commodities no longer having any use to the District. This includes obsolete supplies, scrap materials, and nonexpendable supplies and equipment that have completed their useful life cycle.Little Rock School District Procurement Policy Page 6 (24) Suspension means the disqualification of a person or business to receive invitations for bids or requests for proposals or requests for quote the or the award of a contract by District, for a temporary period pending the completion of an investigation, or during any legal proceedings that may ensue because a person is suspected upon probable cause of engaging in criminal, fraudulent. or improper conduct or failure or inadequacy of performance which may lead to debarment.Little Rock School District Procurement Policy Page 7 SECTION 2 AUTHORITY AND DUTIES OF THE PROCUREMENT OFFICE 2-101 Designated Purchasing and Contracting Official: The designated legal purchasing agent for the Little Rock School District is the Director of Purchasing, This appointment is in accordance with Title 6, Chapter 21, Subchapter 3 of the Arkansas Code of 1987 Annotated. 2-102 Purchasing Director's Authority: Except as otherwise expressly provided in this policy, the authority of the Purchasing Director encompasses procurement of all commodities, services, and construction on behalf of the Little Rock School District, regardless of the source of funding. 2-103 Responsibilities of the Purchasing Director: The Director of Purchasing is the primary responsible official and shall possess the express authority and jurisdiction in matters pertaining to: (1) The procurement and supervision of procurement of all commodities, by the District, services, and construction needed (2) The supervision, management and control over all inventories of commodities belonging to the District, regardless of the method or source of acquisition. (3) The management and supervision of the distribution, disposition, disposal and inventory control procedures of the District's fixed assets (personal property). (4) Management responsibility for the operation of the District's Central Supply Center and such warehouses and storerooms as may be established for the storage and distribution of materials and supplies. (5) The selection, qualification and disqualification of vendors, suppliers, and contractors. (6) Establishment, management and control of programs for the development of specifications, quality standards, inspection, testing and acceptance of commodities and services. (7 ) Recommendations to the Superintendent and the Board of Directors, on policies pertaining to procurement functions of the Little Rock School District.Little Rock School District Procurement Policy Page 8 ( 8 ) The promulgation, dissemination, and enforcement of rules, regulations, and procedures related to procurement, materials management and construction, as long as these are not inconsistent with applicable federal, state, or Little Rock School District Soard statutes or policies. 2-104 Authority to Delegate: The Director of Purchasing shall have the authority to delegate certain procurement functions and responsibilities as required to enhance effectiveness and economy, and convene such committees or advisory councils as may be necessary to accomplish procurement activities. The Director shall retain oversight and general management authority in instances where purchasing activities have been delegated. 2-105 Coordination: The Director of Purchasing shall coordinate with using schools and departments as needed in the development of requirements and specifications. Users will provide specifications when technical or non-standard factors are involved or a less special knowledge or skills are needed. 2-106 Unauthorized Purchases: Except as provided herein, it shall be unlawful for any District official or employee to order or initiate purchase of any commodities, services, or construction, or make any contract or agreement within the provisions of this policy other than through the Purchasing Department, and the District shall not be obligated for any purchase or contract made contrary to these provisions. 2-107 Procurement Violations: The Director of Purchasing shall have investigative responsibility involving alleged violations and make recommendations to the Superintendent in those instances of actual violations of procurement statutes as prescribed by Act 724 of 1991, the Local Fiscal Management Responsibility Act. IILITTLE ROCK SCHOOL DISTRICT 810 WEST MARKHAM STREET LITTLE ROCK, ARKANSAS I February 13, 1989 TO: Board of Direct 3 FROM: Dr. Ernest f. Associate Superintende Charles Neal, Director of Purchasing ident /f' or Business Administration THROUGH: SUBJECT: Dr. George D. Cannon, Superintendent of Schools Report on Bid Requirements and Purchasing Procedures Attached are copies of purchasing and bidding procedures currently in practice. The format follows that which was developed during the 1983-84 effort to publish the Administrative Procedures Manual. The Purchasing Department is presently working on a project to rewrite and consolidate the functions and responsibilities of the Purchasing Department along with the rules, regulations. and procedures associated with those functions. The product will be a procedures manual patterned after the Model Procurement Code for State and Local Governments. This is a major rewrittlng task but the results will be a more comprehensive procurement procedures manual. We're projecting completion in August.laaa ,1 nil 0 /fcf BASIC: PUBLIC PURCHASING & MATERIALS MANAGEMENT Most of these Acts are covered in FM 74-7, Attachment _______ , 0 All purchasers must be fully aware of and comply with these laws. MODEL PURCHASING CODES AND ORDINANCES The laws under which public purchasing must operate vary from state to state as within each state. well as among municipal entities These variations can and do create confusion for vendors and, in some cases, may not provide or the best purchasing practices. Many laws and ordinances are not specific as to the responsibility for the purchasing I but speak only to some of the legal requirements. practices, es. The National Institute of Municipal Law Officers <NIMLO) and the American Bar Association (ABA) have attempted to structure model purchasing ordinances. Both, organizations have agreed that centralization of purchasing authority is far superior to fragmented authority xa xar superior to iragmented authority, and that the installation of sound purchasing methods, including centraliza- tion, will result in savings to the municipalities. NIMLO Ordinance. , _ ______________ This model purchasing ordinance National Institute of Municipal Law Officers in cooperation with the National Institute of Governmental Pi^chasing to assist any states or municipalities in their adoption of a centralized purchasing policy ordinance. or -^A Code. The American Bar Association is now coordinating the development of a model procurement code for state and local governments. The Association has worked extensively with NIGP and the National Association of State Pj^chasing Officials (NASPO). They have also worked with the National Purchasing Institute (NPI), as well as with the private sector, including the National Association of Purchasing Management (NAPM). The suggested code is still in workingpaper form, but when completed it should provide for unifomnity among public purchasing jurisdictions, just as the Uniform Commercial Code has provided the business world with uniformity. is governments. They have also worked with as well as with The suggested code is still J The proposed Code is intended to provide statutory controls and appropriate limitations of a fundamental nature public. The Code will contain only necessary details so as to establish a practical structure which motes good purchasing practices. to protect the public. 16 statutory - pro- The new Code should permit "I I 2 8 8 1 1 '1 -4 1 JINTRODUCTION This Model Procurement Ordinance for Local Governments is designed to provide a small unit of local goverrunent with (1) policy guidance and statutory language for managing and controlling its procurement of supplies, services, and construction for public purposes, (2) guidance for 1 itracts, and (3) 2 set iC CO! tile administrative arid judicial resolution of controversies relating to of ethical standards governing public cind private participants in the procurement process. The Model Procurement Ordinance is essentially a condensation of the ABA Model Procurement Code I for State and Local Governments, tailored for consideration and use by smaller units of local government. The Model Procurement Ordinance was drafted by the American Bar Association Coordinating Committee on a Model Procurement Code for State and Local Governments, a joint committee of the ABA Section of Public Contract Law and the ABA Section of Urban, State, and Local Government Law. The Ordinance was developed by the Coordinating Committee with the active cooperation and financial support of the U.S. Environmental Protection Agency (EPA). To help ensure that the Model Procurement Ordinance would be practical for use by small local jurisdictions, the Coordinating Committee established a Purchasing Officials Review Group whose members were appointed by the National Institute of Governmental Purchasing (NIGP), a key member of the Coordinating Committee's Advisory Board. NIGP, and many of its members, had actively participated in the drafting and review of the ABA Model Procurement Code for State and Local Governments and the Code's Recommended Regulations. f- Procurement Under Federal Assistance and Certification I Attachment O to Office of Management and Budget (OMB) Circular A-102 (Uniform Ad- ministrative Requirements for Grants-In-Aid to States and Local Governments
Procurement Standards) sets forth procurement standards that govern public purchases made by states and local governments using most federzil assistance funds. The Model Procurement Ordinance is designed to provide a small local government with a sound, workable, and consolidated public purchasing idards. Although the Ordinance was developed with the system that meets those federal assistance of EPA, it is also aa^ >le to procurements made using federal funds awarded under grants or cooperative agreements from other federal agencies. Pursuant to Attachment O, many of the major federal grantor agencies have established programs for the certification of the procurement systems used by their state and local government grantees. Since the Model Procurement Ordinance was designed to meet Attachment O standards, it should be an especially helphJ tool to those units of local government that choose to participate in such procurement system certification programs. Drafting Concepts The ABA Model Procurement Code for State and Local Governments has proven readily useful to a jurisdiction with a large procurement responsibility and a substantial procurement organization available to manage the public purchasing function. It could be readily adapted for use by most states, major cities, large urban counties, and other large public entities. The Code's adaptation for use by smaller public bodies, however, proved to require substantial modification. To meet this challenge, the Coordinating Committee undertook the drafting of the Model Procurement Ordinance for Local Governments. The Ordinance is tailored to the more limited procurement responsibilities and limited administrative resources available to most local governments. At the same time, the fundamental principles of good procurement and ethical standards set forth in the Code have been retained, but appear in a "streamlined" form. The Ordinance is designed for consideration by small cities and counties, towns, townships, and other small public bodies exercising a public purchasing responsibility. viiAN OVERVIEW OF THE ORDINANCE General Provisions Article 1 states the general purposes of the Ordiriance, and contains definitions of terms used in the Ordirumce. 1 Office of the Purchasing Agent Article 2 suggests the basic organizational structure for managing and conducting public purchasing on a centralized basis. At the same time, the Article gives clear recognition to the benefits of specific delegations of appropriate authority to other professionals available within the local government. Source Selection and Contract Formation Article 3 establishes competitive sealed bidding as the preferred method of contracting, but also authorizes the use of other source selection methods in appropriate, specified situations. The other source selection methods are competitive sealed proposals, a competitive selection procedure for designated types of professional services, simplified procedures for making small purchases, and strict requirements relating to sole source procurements and emergency procurements. The Article states the requirements for contracting by each method. Contracts not awarded by competitive sealed bidding generally require a written justification, which becomes a matter of public record. The Article also provides for cancellation of solicitations, the correction or withdrawal of bids, and the cancellation of awards. The Article provides for determinations relating to the responsibility of prospective contractors, and provides authority to require bid and performance bonds. It also requires the submission of cost or pricing data, and conducting of a price analysis or a cost analysis, for contracts awarded without adequate price competition and for contract price adjustments. The Article authorizes the use of the type of contract most appropriate to the procurement, although it retains a preference for fixed-price contracts and prohibits cost-plus-a-percentage-of-cost contracts. It also permits, and regulates, the use of both multi-year contracts and the technique of multiple source contracting. Finally, Article 3 also specifies requirements for effective contract administration, and for the reporting of anticompetitive practices. 5 1 ! ! I ! I 5 I I I ! Specifications Article 4 requires that specifications be written in a manner that maximizes competition. In particular, it regulates the use of brand name specifications to encourage competition. Procurement of Construction, Architect-Engineer and Land Surveying Services Article 5 covers special aspects of coristruction procurement, including the selection of the appropriate method of construction management, and the use of bid, performance and payment bonds. It also provides a procediue for the competitive award of contracts for architect-engineer and land surveying services in lieu of techniques provided in Article 3. Debarment or Suspension Article 6 contains procedures for making debarment or suspension determinations. 'i it ix I I rI' i I' The Model Procurement Ordinance, like the ABA Model Procurement Code from which it is derived, was developed as a ' mode!' rather than a "uniform" legislative proposal in recognition of the substanKal differences among local governments in terms of both governmental orgrini: hon and legal authority to prescribe their own procurement systems. Therefore, the focus of the Model Procurement Ordinance is on the policies and procedures necessary for a modem and cost-effective public purchasing system that is fair and open to public scrutiny. 'The Cnordinating Committee ere courages thoughtful modification to meet local needs, but calls to the attention of those responsible for adapting the Model Procurement Ordinance the process through which its recommendations were developed. Drafting and Review Process The Model Procurement Ordinance for Local Governments was developed during a drafting and review process that spanned more th^ two years. In addition, the Ordinance, as a condensation of the ABA Model Procurement Code for State and Local Governments, had the benefit of the five years of effort that went into drafting the Code and its Recommended Regulations. The initial draft of the proposed Model Procurement Ordinance was prepared by the ABA Model Procurement Code Project staff, under the general guidance of the Coordinating Committee on a Model Procurement Code. Working with Project volunteers and EPA's Task Force on the Model Procurement Ordinance, the proposed Ordinance was refined during the preparation of three internal review drafts. Following a line-by-line review of the last internal review draft, undertaken in conjunction with the EPA Task Force, the Coordinating Committee issued a Public Review Draft of the proposed Model Procurement Ordinance in August of 1981. Almost 3,000 copies of the Public Review Draft were circulated. Comments were actively solicited until the close of the comment period in March of 1982. The Purchasing Officials Review Group and the Coordinating Committee then conducted a line-by-line review of the Public Review Draft in light of the comments received. Following further discussion, a Coordinating Committee's Final Draft was presented to the governing Councils of the cosponsoring ABA Sections in May 1982. Following Council review over the next several months, final approval action on the text of the Model Procurement Ordinance was taken in August during the 1982 Annual Meeting of the American Bar Association. I I I 8 i Drafting Mechanics Commentary has been occasionally inserted to explain the purpose of a particular provision, to provide further amplification of its meaning, or to demonstrate its application in the context of a particular procurement situation. In addition. Commentary may indicate where adjustments may be needed to make a particular provision conform to existing law or regulations. The Ordinance also includes several 'Editorial Notes," which provide addibonal assistance to those adapting the Ordinance for use by a particular jurisdiction. Experience indicates that most jurisdictions will not include the Commentary or the Editorial Notes in their ordinances. Bracketed material [ ) indicates matters needing particular attention during the drafting of an ordinance based on the Model Procurement Ordinance. Brackets enclosing a blank require the insertion of language appropriate to that jurisdiction for such things as dollar and time limitations, position descriptions, or references to ^lecific state laws. Suggested language in brackets indicates that the jurisdiction may want to make changes in light of its own experience and circumstances, or because other local requirements may be applicable. Two bracketed phrases appearing side by side usually indicate that one should be inserted and the other deleted. I' viiir' I Cost Principles fl I. Article 7 has been rcscr/cd. Should an enacting jurisdiction wish to iriclude in its ordinarice a comprehensive set of contract cost principles, the text of Chapter 7, Cost Principles, of the Recommended Regulations to the ABA Model fh-ocurement Code for State and Local Governments may be considered. Supply Management Article 8 has been reserved. Should an enacting jurisdiction wish to include in its ordinance the coverage of such topics as quality control, inventory management, excess property transfer, and the disposition of surplus property, the text of Chapter 8, Supply Management, of the Recommended Regulations to the ABA Model Procurement Code for State and Local Governments may be considered. 5 Appeals and Remedies 1 Article 9 suggests mechanisms for the resolution of disputes arising from the solicitation and award of procurement contracts, bid protests, and contract performance claims. In addition, this Article provides procedures for handling contracts awarded in violation of law. ! Cooperative Purchasing I ! Article 10 has been reserved. Cooperative purchasing and joint-use arrangements among units of local government or with the state have proved to be cost-effective management tools. However, given the broad array of potential users of the Model Fh-ocurement Ordinance, and the various state law limitations on their authority to enter into such intergovernmental agreements, it was not possible to address effectively this important subject. Should an enacting jurisdiction be able to include in its ordinance coverage of agreements for cooperative purchasing and the joint use of equipment, faciEties and personnel, it may consider Article 10, Intergovernmental Relations, of the ABA Model Procurement Code for State and Local Governments and Chapter 10 of the Code's Recommended Regulations. i I i Assistance to Small and Disadvantaged Businesses Article 11 has been reserved. Provisions to assist small and disadvantaged businesses, and other socio-economic programs implemented through the procurement process, could be inserted in this Article by the enacting jurisdiction. Ethics in Public Contracting Artide 12 contains ethical standards with accompanying sanctions that are appbcable to all participants in the pubEc procurement process. The proposed ethical standards cover conflicts of interest, gratuities and kickbacks, contingent fees, and misuse of confidential information. I'i APPENDIX The Appendix sets forth provisions which address the various socioeconomic and other federal public policy goals implemented through Attachment O (Procurement Standards) to OMB Circular A-102 (Uniform Administrative Requirements for Grants-in-Aid to States and Local Governments). They have been included with the Model Procurement Ordinance as a convenience for any enacting jurisdiction that wants its pubEc purchasing system to address aU the current requirements of Attachment O. They do not constitute the recommendations of the American Bar Association, or of any of its Sections or Committees. XStjlv o (" 74 th General Assembly HGl OJO UI iJUd Hegiil.ir Session. 1933 1 "AN ACT TO REQUIRE THE SOLICITING OF BIDS Ir-"E^ COIIMODITV TO BE 2 PURCHASED BY A SCHOOL DISTRICT zHAS^l^TIgASgJ^PURCtttSESP^ 3 ^7j,T(^f^tH0USAin)
DOLLARS..ORlM^^^^ AND FOR OTHER PURPOSES. 4 b 6 BE IT ENACTED BY THE GENERAL ASSSIBLY OF THE STATE OF ARKiVNSAS: 7 SECTION 1. Definition. (A) "Purchasing Official' shall mean the yv. '.'ifcV'. I 29 30 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Board of Directors of any school district or a of the school district lawfully designated agent with authority to contract or behalf of the school district. (B) Commodities make purchases on shall mean all supplies, goods, material. ment, machinery, facilities, personal property equip- , and services, other than personal and professional services, purchased for school district. (C) :ioq^3i3 "Purchase Price shall mean or on behalf of the the full sale or bid price of without any allowance for trade-in. Purchase shall mean and include not of a commodity but also the acquisition only the outright purchase of commodities agreements or lease-purchase agreements or any o whereby the school district has an option the rental payments on the pu (E) under rentar-purchase ther type of agreements to buy the rchase price thereof. "Open Market Purchases by any purchasing official in SECTION 2. shall mean commodity and to apply those purchases of commoditVes which competitive All purchases bidding is not required of commodities by any school district. except those speclflc.lly exempted by Section 3, shell be made as folic' (A) ImeecK. instenccln which .he.esU.eted.:POPoh,Tp.tlc.hvn oc.exceed.two-thousan4e<ldUe>t= th,e=ood_le>, shell-.be ptocered y except those spccifica soliciCi n^Tds\ provided that the and may purchase the commodity by negotiating a official may reject all bi<l contract. If the AS SNCROSSCD J/15/81 H.D. 190 1 2 J 4 0 8 9 10 1 I 12 13 14 15 2216 17 18 purchasing official, after rejecting all bids, determines that the purchase shou!-i be mude bij ne j-at lat i'jn then each raspons ible bidder >/ho s-ab.nitte bid shall be notified cf the determination and shall be rjiaen a port uni t <j to rx-^gotiate. f 1-.) Open ilarkei less chan cwo the. (C) Purcli.-isen nay Ik- matle wbev? -anii doll.iis ($2,000). No purciiasin.c
f. ffiei.al shall p.irccl. or C: iniic':in!
c price is n D1 i t witii the intent or purpose to enable the purcha.se restrictive procedure. SECTION 3. to be in.Jde u er a less The hereinafter ii.sted commodities may be purchased without soliciting bids: and unavoidable emergency. (A) Commodities in instances of an unforeseen Provided, that no such emergency purchase shall be approved by the superintendent, unless a statement at cached co Che in writ ?. shall be purchase order describinp. the er.-crgency purcha.s.e of such cot (B) Commnuic (C) n.acess tatinu t n e I I r .otity without competitive bidding. s available onlv from the feder.al government' Ocilicy services, Ji'
- by. state '26 21 '22 23 24 25 6 27 28 29 30 31 che. races lor which re subject co reguiaiion e-.'.cy or a federal regulatory agency.' (D) lise.d '.nt and ~ac.hinere. 1 I I i I I SECTION 4.,The board of Directors of each school district shall p.c-- scribe che method oi soliciting bids by regulation and may adopt other rules and regulations governing the procurement of co.mmodiCies. SECTION 5. A violation of the provisions of this Act shall be a Class C misdemeanor. SECTION 6. hereby repealed. Ail laws and parts of laws in conflict with this Act ar 3? 32 33APPROVED V nGnOvVFERRNN.OTRR /s/ Dobby Tullis -7- i. State of Arkansas 75th General Assembly Regular Session, 1985 A Bill HOUSE BILL 725 By: Representative Doramus For An Act To Be Entitled 1 2 "AN ACT TO AMEND SECTION 3 OF ACT 639 OF 1983 [ARK. STATS. 80-553] TO PERMIT SCHOOL DISTRICTS TO MAKE PURCHASES OF COM-available only from a single source without solicit7 3 9 ation OF BIDS
AND FOR OTHER PURPOSES." BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. Section 3 of Act 639 of 1983, the same being Section 80-553 of the Arkansas Statutes, is hereby amended to read as follows: 10 "Section 3. The hereinafter listed commodities may be purchased without 1 1 12 soliciting bids: (A) Commodities in instances of an unforeseen and unavoidable emergency. n 1 13 Provided, that no such emergency purchase shall be approved by the superlnten- 14 15 15 17 16 dent, unless a statement in writing shall be attached to the purchase order describing the emergency necessitating the purchase of such commodity without competitive bidding. (B) Commodities available only from the federal government. (C) Utility services, the rates for which are subject by regulation by 19 state agency or a federal regulatory agency. (D) Used equipment and machinery. ^Z^E) Commodities available only from a single source. Provided, that the 23 24 purchasing official determines in writing that it is not practicable to us& other than the required or designated commodity or service and a copy of tlr statement is attached to the purchase order." 26 27 25 SECTION 2. All laws and parts of laws in conflict herewith are hereb 28 29 30 repealed. 'PROVED BY
GOVERNOR ? I I A 1 : ( lsbl28 State of Arkansas 76th General Assembly Regular Session, 1987 By: Representative Flanagin ACT 65 1987 A Bill HOUSE BILL 1 fl?-'' 1 2 3 4 5 6 7 8 9 10 For An Act To Be Entiiied AN ACT TO AMEND SECTION 2 OF ACT 639 OF 1983 [ARK. STAT. 80-552] TO REQUIRE SCHOOL DISTRICTS TO SOLICIT BIDS FOR PURCHASES OF AT LEAST $5,000.00
AND FOR OTHER PURPOSES." BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. Section 2 of Act 639 of 1983, the same being Arkansas Statute 80-552, is hereby amended to read as follows: Section 2. All purchases of commodities by any school district, those specifically exempted by Section 3, shall be made except as follows: 11 12 (A) In each instance in which the estimated purchase price shall equal or exceed five thousand dollars ($5,000) the commodity shall be procured by ( S r S 13 soliciting bids. 14 Provided that the purchasing official may reject all blds and may purchase the commodity by negotiating a contract. If the purchasing 15 official, after rejecting all blds, determines that the purchase should be 16 made by negotiation then each responsible bidder who submitted a bid shall 17 18 19- 20 21 22 23 24 25 26 27 28 29 30 be notified of the determination and shall be given a reasonable opportunity to negotiate. (B) Open Market Purchases* may be made where the purchase price is less than five thousand dollars ($5,000). (C) No purchasing official shall parcel or split any item or items. with the intent or purpose to enable the purchase to be made under a less restrictive procedure. SECTION 2. hereby repealed. All laws and parts of laws in conflict with this Act are -16- ."'PROVED BY bbkl31 GOVERHOR 1 2 3 : 4 5 6 7 S 9 10 11 12 13 14 15 16 17 IB 19 20 21 tl 23 24 25 26 27 23 29 30M O tn 2 > 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 .. 20 21 22 23 24 25 ... 26 .. 27 28 29 30 31 32 33 34 Stale of Arkansas _ 78ih General Assembly Regular Session, 1991 ACT 7 24 1991 A Bill B}
Reprcseata'j.'es Stephens, McCuision, and McJunkin For An Act To Be Entitled HOUSE BILL 1807 "AH ACT TO PROVIDE CIVIL PENALTIES FOR VIOLATING CERTAIN ARKANSAS LAWS RELATING TO FISCAL RESPONSIBILITY AND MANAGEMENT OF COUNTIES, MUNICIPALITIES AND SCHOOL DISTRICTS
AND FOR OTHER PURPOSES." BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS
SECTION 1. SHORT TITLE. This Act may be known and cited as the "Local Fiscal Management Responsibility Act". SECTION 2. provides: DEFINITIONS. As used in this Act, unless the Act otherwise "Public officer or employee" means any officer or employee of a county, municipality, or school district located in the State of Arkaxisas{ XTb) "Fiscal responsibility and management lavs" means the following laws, as amended, and as applicable to the following subdivisions: (1) Counties: (A) (B) (C) (D) (E) (E) Revision of County Government, Amendment 55 of the Arkansas Constitution
County Record Retention, Title 13, Chapter 10 of the Arkansas Coda Annotated
County Legislative Procedures, Title 14, Chapter 14, Subchapter 9 of the Arkansas Code Annotated
County Executive Powers, Title 14, Chapter 14, Subchapter 11 of the Arkansas Cods Annotated
County Persotmal Procedures, Title 14, Chapter 14, Subchapter 12 of the Arkansas Code Annotated
County Officers, Title 14, Chapter 15 of the Arkansas Code Annotated
jmb055 1 1 / 1 (G) HB 2 3 (H) 4 5 (I) 6 7 (J) 8 9 (K) 10 11 (L) 12 13 (M) 14 15 (N) 16 17 (0) 18 Sale of County Property, Arkansas Coda Annotated SS 14-16- 105 and 14-16-106
County Funds, Title 14, Chapter 21 of the'Arkansas Code Annotated
County Purchasing Procedures, Title 14, Chapter 22 of the Arkansas Code Annotated
Claims Against Counties, Title 14, Chapter 23 of the Arkansas Coda Annotated
County Warrants, Title 14, Chapter 24 of the Arkansas Code Annotated
Arkansas County Accounting Law of 1973, Title 14, Chapter 25 of the Arkansas Code Annotated
Correction of Errors on Tax Books, Arkansas Code Annotated 26-28-111
Settlement - Payment of Taxes, Arkansas Code Annotated 26- 39-201
and Review of Audit Reports by Legislative Governing Bodies, Act 187 of 1991
19 (2) Municipalities: 20 (A) 21 22 23 (B) . 24 .. 25 (C) . 26 27 (D) 28 29 (E) 30 31 (F) 32 cn 5 9 33 (G) rt- ''34 3 g M M 2 > 9 35 (H) Prohibited Actions by Municipal Council Members or Municipal Officials and Employees, Arkansas Coda Annotated $$ 14-42- 107 and 14-42-108
Powers and Duties of Municipal Officers Generally, Title 14, Chapter 43, Subchapter 5 of the Arkansas Code Aiwotated
Purchase, Lease and Sale of Real and Personal Property, Arkansas Code Annotated S 14-54-302
Cities of First Class Generally, Title 14, Chapter 58 of the Arkansas Code Annotated
Municipal Accounting Law of 1973, Title 14, Chapter 59 of the Arkansas Code Annotated
Municipal Water and Sever Department Accounting Law, Title 14, Chapter 237 of the Arkansas Coda Annotated
Arkansas Municipal Courts, Police Courts, City Courts, And Justice of the Peace Courts Accounting Law, Title 16, Chapter 10, Subchaptar 2 of the Arkansas Coda Annotated
and'\ Review of Audit Reports by Legislative Governing Bodies, Act J 1 jmb0551 187 of 1991} HB 2 (3) Schools: 3 (A) 5 (B) 6 7 (C) 8 9 (D) 10 11 12 13 /o3o /I ^7 (F) School Disbursing Officer, Arkansas Coda Annotated 6-13- 613
School District Treasurer, Title 6, Chapter 13, Subchapter 7 of the Arkansas Code Annotated
Arkansas Teachers Salary Law, Title 6, Chapter 17, Subchapter 9 of the Arkansas Coda Annotated
School Finance Acts, Title 6, Chapter 20 of the Arkansas Code Annotated
Schools Acquisition of Commodities, Title 6, Chapter 21, Subchapter 3 of the Arkansas Code Annotated
and Review of Audit Reports by Boards, Act 4 of 1991
14 (4) The following laws are applicable to some or all of the political 15 subdivisions: 16 5 17 18 (A) (B) 19 20 ' 21 (C) 22 23 (D) . 24 25 (E) 26 27 28 (F) (G) 29 6 O M cn W 2 > a 30 31 32 (H) (I) (J) Limitation on Legislative and Taxing Power, Article 12, Section 4 of the Arkansas Constitution
Political Subdivisions Kot to Become Stockholders in or Lend Credit to Private Corporations, Article 12, Section 5 of the Arkansas Constitution
Lending Credit, Article 16, Section 1 of the Arkansas Constitution
Levy and Appropriation of Taxes, Article 16, Section 11 of the Arkansas Constitution
Local Capital Improveaient Bonds, Amendment 62 of the Arkansas Constitution
Revenue Bonds, Amendment 65 of the Arkansas Constitution
Clerks of Courts, Collection and Settlement, Additional Fees, Investment of Moneys held in trust, Arkansas Code Annotated 5516-20-106, 16-20-107, and 16-20-108
Depositories for Public Funds, Title 19, Chapter 8 of the Arkansas Code Annotated
Public Worrks, Title 22, Chapter 9 of the Arkansas Code Annotated
and Local Fiscal Management Responsibility Act
Ii) (c) "Political Subdivieion" means any county, tnunicipality, or school 35 V 36 3 jmbO55 HB 1 district of the State of Arkansas
2 ^(d) "Executive Officer" means the following for the applicable 3 political subdivisions: 10 11 1) (e) ?qt: sxsctiCivs officsT** is tHs supGirintsndenw of the school or the director of the educational cooperative
For municipalities, an "executive officer" is the mayor, city manager, or city administrator
For counties, an "executive officer" is the elected official exercising administrative control over a particular county employee
and "Knowingly" means that a person is aware or should have been aware 4 5 6 7 8 9 W 12 that his conduct will violate the fiscal responsibility and management laws. 13 14 SECTION 3. COMPLIANCE WITH FISCAL RESPONSIBILITY AND MANAGEMENT LAWS. 15 16 All public officers and employees shall comply with the provisions of the fiscal management and responsibility laws contained in this Act. 17 18 SECTION 4. INVESTIGATION BY EXECUTIVE OFFICER. Upon discovery or 19 20 21 notification of an alleged violation of the fiscal responsibility and management laws, the executive officer of the political subdivision shall investigate such allegations and take appropriate administrative action. 22 23 SECTION 5. DOCUMENTATION OF VIOLATION. After completing the . 24 . 25 . 26 . 27 28 investigation, if the executive officer of the political subdivision determines that one or oxsre of the fiscal responsibility and management laws have been violated, the facts and circumstances relating to a violation and any corrective or remedial action shall be documented and placed in the personnel files of the public officer or employee involved in the violation. 29 30 SECTION 6. NOTIFICATION OF VIOLATION. The executive officer of the 11 31 political subdivision shall notify the public officer or employee of its A x) 12 findings and any corrective or remedial action to be taken. Notification 33 O M 3" O tn co M 2 > a shall be made in a manner ensuring actual notice to the public officer or en^loyeo. The public officer or employee shall be notified that the failure to make corrective or remedial action within thirty(30) days after the date of notification creates the rebuttable presuinptlon that the violation was 35 4 jmbO55 1 committed knowingly. HB 2 3 SECTION 7. REBUTTABLE PRESUMPTION. The public officer or employee 4 5 6 violating a fiscal responsibility and management law shall ba given not more than thirty (30) days from the date of notification to effect corrective or remedial action recommended by the executive director of the political 7 suhdiviaion. Failure to make corrective or remedial action within thirty (30) 8 9 days after notification createa the rebuttable presumption that the violation was committed knowingly. 10 11 SECTION 8. REFERRAL TO PROSECUTING ATTORNEY, (a) If the executive 12 officer determines that there has been a violation of the fiscal 13 14 15 16 17 18 19 20 responsibility and management laws, the executive officer may request the appropriate prosecuting attorney to conduct an Investigation regarding the violation(s). (b) The Legislative Joint Auditing Committee may request the appropriate prosecuting attorney to conduct an investigation regarding violations of the fiscal responsibility and management laws documented in the audit report. (c) The prosecuting attorney shall conduct a timely investigation into 21 all matters referred to him under the provisions of thia Act. If the 22 23 .24 25 prosecuting attorney falls to conduct a timely investigation or file a civil suit under the provisions of this Act, the executive officer or the Legislative Joint Auditing Committee may request the Attorney General to conduct an investigation into the violations. .26 -.27
^28 29 SECTION 9. CIVIL SUIT BY PROSECUTING ATTORNEY. After conducting an 30 I 31 32 investigation Into the alleged violations, the appropriate prosecuting attorney or the Attorney General may file a civil suit In Circuit Court against the public offlcer(s) or employee(s) alleged to have violated the fiscal responsibility and management laws. Venue shall be in the county where the political subdivision Is located. I 3 to 2 tn M 2 > a 33 SECTION 10. CIVIL PENALTY. If the public officer or employee la found 35 by the Court to have knowingly violated the provialona of the fiscal responsibility and management laws, the Court shall Impose a civil penalty 5 jmbO55 '/i HB V 13 C' 44- > O n CO > 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 '18 19 20 21 22 23
24 25 26 27 28 29 30 31 12 33 .34 ye upon the public officer or employee of not less than one hundred dollars ($100), nor more than one thousand dollars ($1,000) for each violation, and may subject the public officer or employee to the payment of damages resulting as a direct consequence of any violation. SECTION 11. RECOVERY OF COSTS. If the public officer or employee is found by the Court to have knowingly violated the provisions of the fiscal responsibility and management laws, the prosecuting attorney or the Attorney General shall be allowed to recover costs and attorney fees associated with the civil suit from the public officer or employee. Any costs or fees recovered by a prosecuting attorney under this provision shall be deposited into an account administered by the prosecuting attorney and shall be used for expenses of the office. Any costs or fees recovered by the Attorney General under this provision shall be deposited into the State Treasury. SECTION 12. CIVIL PROCEDURES APPLY. All actions and procedures under the provisions of this Act are civil in nature and shall be governed by the appropriate rules, regulations, and laws regarding civil actions and remedies. SECTION 13. EXISTING REMEDIES NOT IMPAIRED. The provisions of this Act are supplemental to any other remedies available by law. In addition, the provisions of this Act do not limit or diminish any civil rights administrative procedures available political subdivision. SECTION 14. or to any public officer or employee or All provisions of this act of a general and permanent nature are amendatory to the Arkansas Code of 1987 Annotated and the Arkansas Code Revision Commission shall incorporate the same in the Code. SECTION 15. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given affect without the invalid provision or application, and to this end the provisions of this act are declared to ba severable. SECTION 16. hereby repealed. All laws and parts of laws in conflict with this act are tn r PROVED ( I -A 3 - governor inibOS? 1 LITTLE ROCK SCHOOL DISTRICT EPS CODE: DI FISCAL ACCOUNTING AND REPORTING The district accounting system will provide an accurate record of financial tmraen saaiscitniocns . acRuueucoiiurdnsi y will be nse..t. upK and ma in4t. ai7n edJ on a kbaaes4ics consistent with the accounting system detailed in the Accounting Manual for Local __ School District of Arkansas. riifli. In keeping with Board Policy, accounting will be bandied P-PtV^o^tnthaa.^t .nthee Board may receive monthly reports fr,o,m,, ,t,heer s .> Si. Superintendent on 4,.,^. --------------- - - - , of funds as needed, and make investments of surplus funds. Cr. ixa js SSS .Vr .1 'X :*i The following purposes must be satisfied by the accounting system: . 1. 2 Administrative Control: The financial records must be adequate to guide the making or deferring of purchases, the expanding or curtailing of programs, and the controlling of expenses. Current data should
be c immediately available and in such form that periodic suntnarie^ may be,.I^^^^ readily made from the data. Budget Preparation: The financial records must be ad^uate-fd?serY^iAtgj^^ a guide to budget estimates of subsequent years, and to hold expenditure^ to the amounts appropriated. Accounts are to be kept for each item for.--/" which separate budget estimates must be made. An adequate code of^expep^ diture accounts will be used. *. 1* > .'.tk/ 4<. '-'TT.^nZJZJX^laCKlUam <- ................-i. a.-' Accounting for Stewardship: The financial records of the district
ntsra adequate to show that those .in charge have handled funds within the frame work of law and in accordance with Board policy. The districts financial records will provide the following information 1. 2. I V3. 4. 5. e - ' A--- y . For each account in the districts budget: the appropriation, expenditures
encimbrances, and unencumbered balance. For each purchase order
the name of vendor, description of the item -a involved, the amounts, the call for bids if required, and an abstract:
of the bids received. , For each purchase
the purchase order information above, plus the record, of receipt and condition of goods, the invoice and the record of payment For each income account
the budget estimate, the estimates as revised periodically, the receipts to date, and the balance anticipated. Income received under the-abatement procedure will be debited to the appropriate previously expended account. Legal Reference: Arkansas School Laws
80-524, Act 384 of 1977, Section 7. Act 111 of 1979. f '5 I t U s A. B. C. D. E. LITTLE ROCK SCHOOL DISTRICT INTRA-SCHOOL FUNDS EPS CODE: DIA Depository Intra-school or activity funds shall be deposited in a single bank account at the bank selected for District funds. Source of Funds Funds to be deposited in these accounts are those derived from school organization activities, athletic events, school concessions, bookstore operation, and authorized fund raising drives. Record and Management Procedures Record keeping and management procedures to be followed in handling of these funds shall be prescribed by administrative directive. Purchasing . Purchase shall be in accordance with district purchasing policies and defined by administrative directive referenced above. Responsibility * ' The fund manager shall be responsible for the proper management of these funds. He/she shall sign all requisitions/purchase orders or related transaction documents that initiate or result in disbursement of activity funds. The Director of Financial Accounting Services shall be responsible for ensuring that activity fund transactions conform to appropriate policies and procedures and are accounted for properly. f Adopted: 12-17-811 '4' 5 i '/> ' LITTLE ROCK SCHOOL DISTRICT > f-,r>, 'S .^EPS CODE^ : DJ I? ''r * f R 'y\-. vc'* > I purchasing
4 J/jiSS ,T !r ''O'T
The function of purchasing Is to serve, the' eHucaildhal pro^^^ K the necessary supplies, equipment, and services IX
V 4 The Board I
n_t_e_n_d__s to ,purchase competitively without prejudice.
and. to/seek maximum educational value for every dollar expended ,1. 0^ be^entril 1 ze<
^1n ? lAhe acquisition of supplies, equipment, and services w^Vbe^ceri^^ J rhe Purchasing PepartmentHwhich functions under the supervision of, the.Ex- Officio Financial Secretary, and through whose office all purchasing-
transaction '^are conducted. he acquisition of supplies, equipment, and services will the Ex-Officio Financial Secretary the responsibility for The prime guidelines governing_ The Board assigns the quality and quantity of. purchases made. ...- r.
- -- -jf tthhiiss rreessppoonnssiibbiilliittyy aarree tthhaatt aallll ppuurrcchhaasseess ftaailll wwiittmhinn txhnee fTrraammeewwuor r/,Of
'-pZ budgetary limitations and be consistent with the approved educational- goals and programs of the district.. 'p'. i Adopted: 12-17-81 -V' .A 4 i j a . '4' > f. It?- r -fT ^'.4 'I 1 ' rT : 1 LITTLE ROCK SCHOOL DISTRICT EPS CODE: DJA PURCHASING AUTHORITY the responsibility of the Purchasing Department to make purchases for school use. The Superintendent or his designee, the Director of Purchasing U.ruuyh the Ex-Officio Financial Secretary, is authorized to approve purchases in accordance with budget allocations except when such transactions must be It is through put to bid. D Individual.schools and departments will have no authority to make purchases except as these are approved by the Purchasing Office, 0 . 1 mzA - Purchasing shall be*made on written order from the Purchasing Office in keeping with properly approved written requisitions. F-"?* ,only-as
:provided for by administwtive,directive., , .. ,.... Exceptions may be made X"' 3
'P. Jt- S'' 'F^.j 'acti/sujr.s {A>. 2'^ y-i- 4* ^sjcr>
cjcr><oc e- 75' R I .. Adopted: . 12-17-81 r 'tt- >>: -* <LITTLE ROCK SCHOOL DISTRICT EPS CODE: DJC BIDDING REQUIREMENTS Any item or group of items having an estimated cost of $2,000 or more must Exceptions may be made upon approval uf be purchased by soliciting bids. the Superintendent of Schools or his designee, in cases of bona fide emergencies, single source purchases, and other instances where bidding is not Any item or group of items feasible or required conimodities are exempt. having an estimated cost of less than $2,000 may be purchased as an Open Market Purchase at the discretion of the Director of Purchasing. When bids are solicited, the lowest responsible, responsive bidder meeting specification requirements shall be awarded the order or contract unless (1) all bids are rejected and the purchase negotiated, or (2) bidders have been informed that factors other than price alone, are to be considered in the award of the bid. Sufficient documentation will be maintained to substantiate competitive bid determinations. .'7'9*' LITTLE ROCK SCHOOL DISTRICT A i EPS CODE
DOF PURCHASING PROCEDURES K Quality/Quanity Control The Director of ':y The Director of Purchasing, has full authority to question and kind of materials requested and delivered.in order that the best interests of the district may be served. Consolidation of Purchases shall seek to consolidate purchases into such the district within the limits The Director of Purchasing quantities as will result in the lowest cost to of available warehousing. V School^ Books tore <.T terns . i^^^^tHe^i^Wf^tbe'dlstH to-purchase
in^quWt/and ^princ^ple iterns handled by'school bookstores.-. ...oto-. the .school bookstores at cost plus a minimum markup ^^^ocaT ^^i^sing%?s .'i . Those'^-1 terns will be sold "to -^utner^dcwr
^ u=..na..=M-.r.. ttoi.strict prefer^ to^dwl^ with local sources of _^s'uppTyt
in
tOrminimize conmunication and ..shipping problems. Where out- gg??gKS!ro.>ftf.-c'tate'~ve'n aqai nst.-local vendors, the local ...vendor. "^^r^rqfanl'ed-^the five'percent preference allowed by Arkansas Preference Lai^^.-if. . Requested in writing at the time the bid is submitted. Other^actors being .equal ST is r jr z :52 nrs . bi I Adopted: 12-17-81LITTLE ROCK SCHOOL DISTRICT EPS CODE: DJG .. VENDOR RELATIONS No favoritism will be extended to any vendor. 'Each order will be placed on the basis of quality, price, and delivery
past services being a factor if all other considerations are equal. No employee or director of the district who has authority or influence over purchasing decisions will be an agent for, or-have any pecuniary or beneficial interest in, or receive any compensation or reward of any kind from any vendor for sale of supplies, materials, equipment, or services. Adopted: 12-17-81LITTLE RCLK SCHOOL DISTRICT EPS CODE: DK DISBURSEMENTS Disbursements shall be made only with appropriate authorization and directly to the vendors, except for petty cash expenses which shall be limited to the minimumnecessary for effective and efficient operation. Documentation (requisitions, purchase orders, evidence of receipt of goods or services, invoices, etc.) to support disbursements shall be retained in active files until after audit has been completed. A list of disbursements for each month shall be submitted for Board approval at the regular meeting the fol lowing month. I I i I Adopted: 12-17-81I i I J I I i I II }I i I 1 I I LITTLE ROCK SCHOOL DISTRICT EPS-CODE: GBI STAFF GIFTS AND SOLICITATIONS ..L No employee of the Little Rock School District or member of"the Board of Directors of the said district shall accept any gratuity or favor from any supplier, contractor, or person performing personal services for the Little Rock School District. Further, the same policy will apply to any person, partnership, company or any other entity which may reasonably be expected to perform such services, or offer bids orprices for any supplies, construct!on,-or maintenance work to .. be performed for the Little Rock School District. District. or any ye Adopted: A-.? 2-25-82 T- i:
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