Standard Operating Procedure to Accounts Payable

Vendors (Provider of goods and services)
Due to insurance liability and business partnerships, the district will limit the use of vendors to an
“Approved Vendor List”. The main objective is to maintain a list that will meet the district’s risk
management requirements.
Vendor additions may only be requested by administrators or directors. These requests will come
under close scrutiny before approval is granted. Until a vendor is approved, no purchases
may be made or contracts negotiated.
Vendors are divided into two categories: suppliers and service providers. Required district
paperwork will differ between these two groups.
Adding a Supply Vendor
Supply vendors for maintenance items and food services will be required to submit copies of
general liability insurance along with the vendor paperwork described below. All other supply
vendors will not be required to furnish proof of insurance.
The following paperwork is required to consider an addition of a supply vendor:
A. Request for New Vendor Form - (Must be filled out completely),
B. Request for Information Form – (Must be filled out completely),
C. Copy of general liability insurance policy (for maintenance & food services), and
D. An approval notification by email from the accounting department that the vendor has
been accepted (purchase order may now be generated).
Adding a Service Provider
Administrators and directors will be the only individuals able to enter into a contract with a
service provider. Administrators must honor district-wide contracts with specified vendors, and
do not have the authority to override district-wide vendor contracts. Please check with the
central office if there are questions on existing contractual agreements.
Employee vs. independent contractor status must be determined for each service provider
before the contract is negotiated or the labor begins. This determination will be made by
central office finance personnel in accordance with applicable IRS regulations. (Contact the
finance department for determination.)
Providers that are deemed by the accounts payable department to be independent contractors will
be handled in the following manner:
The following must be submitted to add a new service provider to the system (electronically is an
efficient method of distributing/receiving forms):
A. IRS W-9 form;
B. Request for New Vendor form;
C. Request for Information Form;
D. Independent contractors (sole proprietors) must fill out an Independent Contractor
Insurance Status Form (referees are exempt from this requirement);

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The following information is needed from the vendor’s insurance agent (speakers and referees are exempt from this requirement – student camp ICs are not exempt from this requirement): a. a requisition must be sent/emailed to the financial secretary. including sole proprietors/president of company. Upon rectification of deficiencies. F. When petty cash is utilized to pay for a service. b. etc. then the secretary must notify the location administrator to include on their budget transfer list (see attached Budget Transfer Form). cell phone. etc. Page 2 . Vendors that fail to meet the independent contractor status will be required to complete the federal. security monitoring. $1 million in aggregate) with Garfield School District Re-2 listed as an additional insured. Upon receipt and approval of the requisition. then there must be an email from that location’s administrator approving the charge (attached to the back of the PO as additional documentation). information.000 per occurrence. payroll paperwork including P. Automobile insurance certificate of at least $1 million aggregate. The creation of a purchase order is required to encumber the funds from a particular account string.E. and the appropriate paperwork is on file at the central office for service providers. Petty cash cannot be used for payment to service providers. Copy of liability insurance ($300. the vendor is in the system. the purchase order may be generated and the goods/services ordered. Purchasing goods & services Ordered goods or services require a requisition to be generated (please see attached requisition). The financial secretary verifies that the budgeted funds are available in the account.R.g. the requisition may be resubmitted to the secretary for administrative approval. The requisition must be approved by the administrator of the location/program being charged. officiates. and to ensure the goods or service have been approved before ordering. consults. it will be disallowed and will need to be paid back to petty cash by the person who initiated the transaction. Referees that are not CHSAA certified must go through the appropriate payroll paperwork and be treated as an employee. trains staff. Adding Referees/Officials Referees must be CHSAA certified in order to qualify as an independent contractor in accordance with IRS regulations. state.: fingerprinting.). Workers’ compensation insurance certificate with a waiver of subrogation in favor of the district.A. Examples of “services” include anyone who prepares food. and school district requirements for hiring before any labor occurs ( e. (including those paid with a Re-2 credit card). Approval notification by email from the accounting department approving the addition (PO may now be generated).) Contact the payroll department for further particulars.: utilities. A requisition is not needed for non-ordered goods or services (e. If an administrator charges a different administrator’s account.E. quarterly equipment maintenance agreements. If budgeted funds are not available in the account.g. For all ordered goods or services. and c.

Purchase order (include invoice date and number if not using Check Request form) Attach all remits with a paper clip to front of the check request/purchase order A numbered invoice from the vendor. 6. and are ready to be mailed out on Friday. 3. IF A NUMBERED INVOICE IS NOT PROVIDED IT WILL BE RETURNED TO THE LOCATION (to avoid duplicate payments). B. with ext. D. If the Credit is too large or will not be used against future invoices during the current school year. C. a check should be requested from the vendor. Enter Account Number that should receive the credit. It is preferable that staff be reimbursed via a school district check due to tracking purposes. & footings signed. Enter credit memo or credit invoice on the “Check Request” form as you would an Invoice but with a minus (-) sign in the amount column. Submitting for Payment: To submit for payment from a vendor. Receipts must be itemized to be reimbursed and submitted within 10 days of purchase date on receipt. An administrator or director must approve reimbursable purchases before they are purchased. Packing Slip (if applicable) All purchase orders must be submitted for payment by Wednesday at noon. Reimbursements 1. Amount should be zero.00. the financial secretary submits appropriate documentation to accounts payable for payment.00. Verify that credit is indeed your location’s credit. Checks are cut on Thursday. D. in this order: A. 4. E. Staff may be reimbursed from the school’s petty cash fund for supply purchases that do not exceed $100. Unauthorized contracted services/hiring may become the staff member’s liability. Please alert the accounts payable manager to assure that the check is applied correctly.Upon receipt of the goods or the invoice. Staff must submit a requisition before any reimbursable purchase. This applies credit to the Purchase Order. 5. When there are multiple invoices/changes. B. Ordered goods need to be stamped with the building’s information. Amount should be zero. Staff must be reimbursed via school district check for amounts exceeding $100. prepare a Check Request form including invoice date and number(s). 2. Review proof cell in column K at bottom of form. Review the Proof Cell in Column K of the Check Request Form. C. E. please include the following. Credit cards Page 3 . Alcohol and personal expenses will become the staff member’s liability. To process Credit Memos/Credit Invoices: A.

Revised 10/05/10 Page 4 . The estimated amount of all travel expenses should be encumbered through the use of Purchase Order(s). For approved travel and purchases. or event. Preauthorized travel An employee must complete the Excel Prepaid Travel Worksheet form for all prepaid travel expenses.All credit card purchases need itemized receipts. The District is very stringent about what is an allowable district purchase. parking fees that are required to attend a conference. It is recommended that the credit card holder submit a requisition with their credit card receipts to the building secretary. and have it signed by their supervisor. School employees are not authorized to purchase on their own credit cards for subsequent reimbursement. Administrators are given a company credit card for purchases at their location. Email all Prepaid Travel Requests and Prepaid Travel Recap forms. The employee must fill out the appropriate cash advance form (prepaid travel form). employees may also request a cash advance on the same prepaid travel worksheet. registration fees. Prepaid expenses are the following: hotel. the employee must complete the ‘Prepaid Travel Recap’ Excel form and provide receipts to their financial secretaries and reimburse the district for any unused portion. These credit cards are issued under your administrator’s personal social security number. workshop. Within 10 days of use of the funds. Please use with discretion to prevent theft identity. meals.