Standard Operating Procedure to Accounts Payable

Vendors (Provider of goods and services)

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

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

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Upon receipt of the goods or the invoice, the financial secretary submits appropriate
documentation to accounts payable for payment. Ordered goods need to be stamped with the
buildings information.
Submitting for Payment:
To submit for payment from a vendor, please include the following, in this order:
A.
B.
C.
D.
E.

When there are multiple invoices/changes, prepare a Check Request form including
invoice date and number(s). Review proof cell in column K at bottom of form.
Amount should be zero.
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, with ext. & footings signed. IF A
NUMBERED INVOICE IS NOT PROVIDED IT WILL BE RETURNED TO
THE LOCATION (to avoid duplicate payments).
Packing Slip (if applicable)

All purchase orders must be submitted for payment by Wednesday at noon. Checks are cut on
Thursday, and are ready to be mailed out on Friday.
To process Credit Memos/Credit Invoices:
A. Enter credit memo or credit invoice on the Check Request form as you would an
Invoice but with a minus (-) sign in the amount column. This applies credit to the
Purchase Order.
B. Verify that credit is indeed your locations credit.
C. Enter Account Number that should receive the credit.
D. Review the Proof Cell in Column K of the Check Request Form. Amount should be
zero.
E. If the Credit is too large or will not be used against future invoices during the current
school year, a check should be requested from the vendor. Please alert the accounts
payable manager to assure that the check is applied correctly.
Reimbursements
1. Staff must submit a requisition before any reimbursable purchase.
2. An administrator or director must approve reimbursable purchases before they are
purchased.
3. Receipts must be itemized to be reimbursed and submitted within 10 days of purchase date
on receipt.
4. Unauthorized contracted services/hiring may become the staff members liability.
5. Alcohol and personal expenses will become the staff members liability.
6. It is preferable that staff be reimbursed via a school district check due to tracking
purposes. Staff may be reimbursed from the schools petty cash fund for supply purchases
that do not exceed $100.00. Staff must be reimbursed via school district check for
amounts exceeding $100.00.
Credit cards

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

Revised 10/05/10

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