D – FISCAL MANAGEMENT DA Fiscal Management Goals and Objectives DB Planning Programming Budgeting System DC Annual Operating Budget – Preparation of Budget DCA Fund Balance Policy for GASB 54 DCB Fiscal Year/Scholastic Year DCCA Budget Deadlines and Schedules DCH Periodic Budget Reconciliation DCI Line Item Transfer Authority DE Debt Limitation DF Revenues: Sixteenth Section Land Management (Cf.FF) DFA Local Tax Revenues – Ad Valorem Taxes DFBA Educational Enhancement Funds DFC/GAHB Federal Aid-Federal Financial Assistance Programs DFC/GAHBA Requests for Funds/All Consolidated Federal Programs DFCA Federal and School Census DFCB Cash Management of Federal Funds DFD/FFA Bond Sales (Also FFA) DFE Short Term Notes (Also FFB) DFEA Tax Anticipation Notes (Cf. FFAC)/Shortfall Borrowing DFF Grants-Awards-Scholarships Involving Financial Assistance DFG Fees, Payments and Rentals (Cf. EBH, ECE, KG) DFK Gifts and Bequests to School Districts/Donated Assets DFKA In-Kind – Early Head Start/Head Start DFL Investment Earnings (Cf. DN) DFM Capitalization and Depreciation of Fixed Assets DG Depository of Funds DH Bonded Employees (Cf. EGE) DI Accounting and Reporting DIA Accounting System – Internal Control of Cash Receipts DIB Financial Reports and Statements DID Audits DIDA Fixed Asset Accountability DIE Early Head Start DJ Expenditure of Funds/Federal Funds DJA/DJAA Checking Accounts – Authorized Signatures
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D – FISCAL MANAGEMENT
DA Fiscal Management Goals and Objectives
DB Planning Programming Budgeting System
DC Annual Operating Budget – Preparation of Budget
DCA Fund Balance Policy for GASB 54
DCB Fiscal Year/Scholastic Year
DCCA Budget Deadlines and Schedules
DCH Periodic Budget Reconciliation
DCI Line Item Transfer Authority
DE Debt Limitation
DF Revenues: Sixteenth Section Land Management (Cf.FF)
DFA Local Tax Revenues – Ad Valorem Taxes
DFBA Educational Enhancement Funds
DFC/GAHB Federal Aid-Federal Financial Assistance Programs
DFC/GAHBA Requests for Funds/All Consolidated Federal Programs
DL Cash in School Buildings – Responsibility for Loss of Funds – Handling of Cash
DN Surplus Funds (Cf. DFL)
DO School Properties Disposal Procedure
The following Picayune School District Fixed Asset Accounting Policies will set forth thecriteria for defining, valuing, and capitalizing fixed assets.
1. Definitions of all major fixed asset classifications:
Land – Includes all land owned by the Picayune School District.
Buildings – Includes all buildings owned by the Picayune School District, such as schoolbuildings, administration buildings, athletic field houses, gymnasiums, and portableclassrooms.
Building Improvements – Only includes improvements which extend the life of thebuilding and does not include ordinary and necessary repairs.
Improvements other than buildings – Includes athletic fields, lighting, bleachers, andother improvements that can not be directly associated with a particular building.
Mobile equipment – Includes all school buses and district-owned automobiles, trucksand vans. This classification also includes all lawn maintenance equipment, tractors, etc.
Furniture and equipment – Includes all furniture and equipment contained in thebuildings of the Picayune School District that meet the asset capitalization requirementsof the Picayune School District.
Leased property under capital leases – Includes all fixed assets that are being acquiredunder a lease/purchase arrangement.
Construction in progress – Includes all buildings and facilities that are currently underconstruction.
2. Valuation
Actual Historical CostEstimated Historical Cost – Standard Costing MethodEstimated Historical Cost – Normal Costing MethodDonated Items – Fair Market Value at Date of Donation
3. Capitalization
The Picayune School District will capitalize all assets with a useful life of greater thanone (1) year and with a historical cost of at least Five Hundred Dollars ($500.00) and all
FISCAL MANAGEMENT GOALS AND OBJECTIVES DA
highly walkable items. At a minimum, highly walkable items will include all televisions,video cassette recorders, cellular telephones, radio equipment, overhead projectors, andband instruments. This is not an all inclusive list and items may be added as deemednecessary.
4. Depreciation
GAAP and GASB 34 now require depreciation of assets contained in the General FixedAssets Account Group. The Picayune School District will depreciate its assets inaccordance with the rules established by GASB 34.
5. Interest Capitalization
Since capitalization of interest expense is not required for general fixed assets, thePicayune School District will choose not to capitalize interest.
6. Infrastructure
Infrastructure consists of assets that are immovable and of value only to the PicayuneSchool District (e.g., a street not attached to or part of a building). Since governmentalaccounting principles do not require the capitalization of infrastructure, the PicayuneSchool District will choose not to capitalize infrastructures.
7. Physical Inventory
A. Equipment shall be defined as all items (purchased, government excess, ordonated) with a unit cost of Five Hundred Dollars ($500.00) or more plus highlywalkables as defined by the State.
B. The Principal/Director will forward an inventory sheet with the invoice forpayment.
C. The inventory sheet must contain a barcode number, serial number, and locationat a minimum.
D. The Finance Director will prepare a listing of all fixed assets by cost center.
E. The Fixed Asset Manager will take a physical inventory of all property every year,or more often if needed. The listing will be annotated as to the condition andlocation of the property.
F. The Finance Director will maintain the fixed asset computer system by adding ordeleting as new property is bought and old is sold or declared obsolete. TheBoard of Trustees will approve all additions and deletions on a monthly basis.
8. Loss, Damage, or Destruction
The Fixed Asset Manager will be immediately notified of all cases of loss, damage, ordestruction of equipment; and will make a report to the Finance Director. A policeinvestigation must be made on every case of loss, damage, or destruction of property. Acopy of the police report must be forwarded to Central Office within five (5) workingdays after the discovery of the loss, damage, or destruction. The Board of Trustees mustapprove such loss for removal of item from the fixed asset system.
9. Purchase of Property/Equipment
A. All items of equipment costing Five Hundred Dollars ($500.00) or more will beapproved by the Principal/Director and Finance Director.
B. If the total cost of leasing equipment over a three (3) year period or less exceedsthe purchase price, the equipment should be purchased.
C. Only items of equipment necessary for the completion of a program will bepurchased for that program.
10. General Ledger
All equipment will be recorded in the General Ledger by the Finance Director. An entrymust be made whenever property is acquired or disposed.
11. Custody Receipts
The Principal/Director will insure that a custody inventory receipt is prepared and on filefor all equipment prior to removal from the premises for which equipment was purchasedor first assigned.
12. Vehicle Logs
Vehicle logs will be maintained for all motor vehicles owned by the Picayune SchoolDistrict.
A five-year financial plan will be expressed in the Picayune School District’s five-yeareducational plan.
PLANNING PROGRAMMING BUDGETING SYSTEM DB
The annual operating budget is the plan of current expenditures and the proposed means offinancing them.
The annual operating budget is the primary means by which most of the financial acquisition,spending, and service delivery activities of the Picayune School District are controlled.
The annual operating budget as required by law is essential to the sound financial management ofthe Picayune School District.
The Superintendent is responsible for preparing an annual budget for adoption by the Board ofTrustees. (See procedures following.)
1. BUDGET DEVELOPMENT PROCEDURE
The school budget is a statement of policy when adopted annually by the Board of Trustees. Anticipated income is based on stated allocations from the federal government,the State, and local ad valorem tax within the limits prescribed by State law.
On or before August 15 of each year, the Board of Trustees, with the assistance of theSuperintendent, shall prepare and file with the levying authority for the Picayune SchoolDistrict, as defined in Section §37-47-1, two (2) copies of a budget of estimatedexpenditures for the support, maintenance and operation of the Picayune School Districtfor the fiscal year commencing July 1 of such year.
In addition, on or before August 15 of each year, the Board of Trustees, with theassistance of the Superintendent, shall prepare and file with the State Department ofEducation such budgetary information as the State Board of Education may require.
Prior to the adoption of a budget, the Board of Trustees shall hold at least one (1) publichearing to provide the general public with an opportunity to comment on the taxing andspending plan incorporated in the proposed budget. The public hearing shall be held inadvance notice at least one (1) week prior to the adoption of the budget. After finaladoption of the budget, a synopsis of such budget in a form prescribed by the StateDepartment of Audit shall be published in the local newspaper on a date different fromthe date on which the county or municipality may publish its budget.
The Superintendent with the approval of the Board of Trustees may revise the budget atany time during the fiscal year. No revision of any budget under the provisions hereofshall be made which will permit a functional expenditure in excess of the amountsavailable for such purpose.
ANNUAL OPERATING BUDGET – PREPARATION OF BUDGET DC
The Board of Trustees shall approve all transfers between individual funds except those approved as part of the budget. Transfers approved as part of the budget already haveapproval of the Board of Trustees and a second approval of the actual transaction isunnecessary unless different from the budget.
Since it is impossible to change the income during the school year, expenditures must bekept within the allocations of the adopted budget. Items within the budget are determinedas follows:
A. Salaries – On schedule as adopted by the Board of Trustees.
B. Equipment and Furniture – Based on individual school needs as expressed byrequisition from the building principals and in accordance with the purchasingschedule each year. When these requests are approved by appropriate staffmembers, they are allowed insofar as funds permit.
C. Instructional Materials and Supplies – Allocations are made based on theprojected enrollment of pupils for the next school year in accordance with pastexperiences and accreditation standards.
Classroom teachers should continuously evaluate materials and supplies todetermine the most effective teaching aids. They should discuss these materialswith the building principal before preparing requisitions. The principal willevaluate the requisitions submitted as to the needs of the school in keeping withavailable funds, or request that additional funds be appropriated. Such requestsmust be accompanied by justification in writing.
D. Building Repairs and Upkeep – This is based on an annual survey of needs asdetermined by the building principal and maintenance supervisor, within availablefunds.
2. BUDGET ALLOCATIONS
The allocation of the monies to the various departments within a school is theresponsibility of the principal and/or the administrative officer of a particular division of aschool and shall not exceed the total annual allocation for the school. Accreditationstandards should be followed in making allocations.
3. BUDGET REQUISITIONS
Instructional supplies and equipment shall be requisitioned according to the PicayuneSchool District’s purchasing cycle.
LEGAL REFERENCE: Section §37-47-1
Purpose
The Board of Trustees recognizes that the maintenance of a fund balance is essential to thepreservation of the financial integrity of the Picayune School District and is fiscally advantageousfor both the Picayune School District and the taxpayer. This policy establishes goals andprovides guidance concerning the desired level of fund balance maintained by the PicayuneSchool District to mitigate financial risk that can occur from unforeseen revenue fluctuations,unanticipated expenditures, and similar circumstances.
Definitions
Fund balance is a measurement of available financial resources and is the difference betweentotal assets and total liabilities in each fund.
GASB Statement 54 distinguishes fund balance classified based on the relative strength of theconstraints that control the purposes for which specified amounts can be spent. Beginning withthe most restrictive constraints, fund balance amounts will be reported in the followingcategories:
1. Nonspendable fund balance – amounts that are not in a spendable form (e.g., inventory)or are legally or contractually required to be maintained intact (e.g., permanent fundprincipal).
2. Restricted fund balance – amounts that can be spent only for the specific purposesstipulated by external parties either constitutionally or through enabling legislation (e.g.,grants or donations).
3. Committed fund balance – amounts that can be used only for the specific purposesdetermined by a formal action of the Board of Trustees. Commitments may be changedor lifted only by referring to the formal action that imposed the constraint originally (e.g.,the Board of Trustees’ commitment in connection with future construction projects).
4. Assigned fund balance – amounts intended to be used by the government for specificpurposes. Intent can be expressed by the Board of Trustees or by a designee to whom thegoverning body delegates the authority. In governmental funds other than the generalfund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended tobe used for the purpose of that fund.
5. Unassigned fund balance – includes all amounts not contained in other classificationsand is the residual classification of the general fund only. Unassigned amounts areavailable for any legal purpose.
FUND BALANCE POLICY FOR GASB 54 DCA
Policy
The responsibility for designating funds to specific classifications shall be as follows:
Committed Fund Balance – the Board of Trustees is the Picayune School District’shighest level of decision-making authority, and the formal action that is required to betaken to establish, modify, or rescind a fund balance commitment is a resolution approvedby the Board of Trustees.
Assigned Fund Balance – The Board of Trustees has authorized the Superintendent andthe Business Manager as officials authorized to assign fund balance to a specific purposeas approved by this fund balance policy.
Minimum Unassigned Fund Balance
It is the goal of the Picayune School District to achieve and maintain an unassigned fund balancein the general fund at fiscal year end of not less than eight percent (8%) of district maintenancerevenues. If the unassigned fund balance at fiscal year end falls below the goal, the PicayuneSchool District shall develop a restoration plan to achieve and maintain the minimum fundbalance.
Order of Expenditure of Funds
When multiple categories of fund balance are available for expenditure (e.g., a project is beingfunded partly by a grant, funds set aside by the Board of Trustees, and unassigned fund balance),the Picayune School District will start with the most restricted category and spend those fundsfirst before moving down to the next category with available funds.
Plan to Reduce Costs in the District
1. Whenever a school district has an ending fund balance in the maintenance fund of theschool district which in an amount equal to less than seven percent (7%) of the totalrevenue deposited into the district maintenance fund during that fiscal year, the schoolboard of the school district shall prepare and file with the State Department of Educationa plan under which the district intends to reduce costs in the district. The plan must besubmitted by the school board to the department contemporaneously with the budgetaryinformation required under Section §37-61-9 (2).
2. The State Board of Education may adopt rules and regulations prescribing the specificcontents required to be included in a plan submitted by a local school board to thedepartment under subsection (1) of this section. The rules and regulations may includeprovisions addressing the following matters:
(a) A description of the financial data or documents and budgetary information that adistrict must submit to the department;
(b) A description of the manner by which the school district intends to achieve costssavings, demonstrated by actual reduction in budgeted expenditures;
(c) A requirement that before a school board makes expenditure by reductions in thenumber of instructional employees or by reducing any discretionary supplementalamounts paid to instructional personnel, significant cost savings must bedemonstrated by reducing the number of noninstructional personnel or theamounts paid to those employees, or both; and
(d) Any other information deemed necessary by the State Board of Education
(3) After analyzing a plan that has been filed with the department under subsection (1), thedepartment shall either approve the plan as submitted by the school board or alternatively,withhold approval and return the plan to the district with guidance or instructions, whichmay require resubmission of the plan by the school board for further review after changeshave been made to the plan.
LEGAL REFERENCE: Mississippi Legal Code of 1972, Section §37-61-8, As AmendedHouse Bill No. 909, Regular Session 2012
The “fiscal year” of the Picayune School District shall commence on July 1 and end on June 30of each year. The “scholastic year” of the Picayune School District shall likewise commence onJuly 1 and end on June 30 of each year.
However, for the purposes of determining ad valorem tax receipts for a preceding fiscal year, theterm “fiscal year” means the fiscal year beginning October 1 and ending September 30.
FISCAL YEAR/SCHOLASTIC YEAR DCB
The Board of Trustees, with the assistance of the Superintendent, shall adhere to the suggestedprocedure below:
February 1 – April 10 Prepare the budget3rd week of April Advertise for public hearing4th week of April Advertise for public hearing and notice of tax
increase1st week of May Advertise for public hearing and notice of tax
increase2nd week of May Hold the public hearing 2nd week of June Board of Trustees adopts budgetMonth of July Publish synopsis of budget in local newspaperBy August 15 Provide two copies of budget to the Board of
Supervisors/AldermenBy August 15 Furnish information to the State Department of
Education on prescribed forms
BUDGET DEADLINES AND SCHEDULES DCCA
The Board of Trustees, with the assistance of the Superintendent, shall adhere to the suggestedprocedure below:
February 1 - April 30 Prepare the budget1st week of May Advertise for public hearing2nd week of May Advertise for public hearing3rd week of May Advertise for public hearing4th week of May Hold the public hearing3rd week of June Board of Trustees adopts budgetMonth of July Publish synopsis of budget in local newspaper
By July 15 Provide two copies of budget to the Board ofSupervisors/Aldermen
By July 15 Furnish information to the State Department ofEducation on prescribed forms
BUDGET DEADLINES AND SCHEDULES DCCA
It shall be the duty of the Superintendent and the Board of Trustees of the Picayune SchoolDistrict to limit the expenditure of school funds during the fiscal year to the amounts set forth inthe respective school budgets as reflected in the Board of Trustees’ minutes or an addendum tothe minutes, unless such school fund budgets be revised in the manner provided in this chapter. It shall be unlawful for any school district to budget expenditures from a fund in excess of theresources available within that fund for such expenditures. Furthermore, it shall be unlawful forany contract to be entered into or any obligation incurred or expenditure made in excess of thebudgeted funds available for such purposes for such fiscal year. Any member of the Board ofTrustees, Superintendent, or other school official who shall enter into any contract, incur anyobligation, or make any expenditure in excess of the amount available for that purpose for thefiscal year shall be personally liable for the amount of such excess. However, no member of theBoard of Trustees, Superintendent, or other school official shall be personally liable (a) in theevent of any reduction in Mississippi Adequate Education Program payments by action of theGovernor acting through the Department of Finance and Administration; or (b) for claims,damages, awards or judgments, on account of any wrongful or tortious act or omission or breachof implied term or condition of any warranty or contract; provided, however, that the foregoingimmunity provisions shall not be a defense in cases of fraud, criminal action, or an intentionalbreach of fiduciary obligations imposed by statute. Section §37-61-19 (1993)
The Superintendent is hereby authorized and empowered to amend objects within majorfunctions as may be necessary during the fiscal year.
PERIODIC BUDGET RECONCILIATION DCH
The Board of Trustees shall approve a budget for the Picayune School District. The Board ofTrustees shall approve amendments to such budget where major functions of revenues andexpenditures are involved. The Board of Trustees should authorize the Superintendent to amendobjects within major functions as may be necessary during the fiscal year.
The financial accounting data and the corresponding annual audit report as submitted to theMississippi Department of Education reflect at least a zero (0) fund balance (as defined bygenerally accepted accounting principles) for all funds of the Picayune School District. (MS Code Section §37-61-9)
If it should appear to the Superintendent or the Board of Trustees of the Picayune School Districtthat the amounts to be received from State appropriations, taxation, or any other source will bemore than the amount estimated in the budget filed and approved, or if it should appear that suchamounts shall be less than the amount estimated, the Board of Trustees of the Picayune SchoolDistrict, with assistance from the Superintendent, shall revise the budget at any time during thefiscal year by increasing or decreasing the fund budget, in proportion to the increase or decreasein the estimated amounts. If it should appear to the Superintendent or the Board of Trustees thatsome function of the budget as filed is in excess of the requirement of that function and that theentire amount budgeted for such function will not be needed for expenditures therefor during thefiscal year, the Board of Trustees of the Picayune School District, with the assistance of theSuperintendent, may transfer resources to and from functions and funds within the budget whenand where needed; however, no such transfer shall be made from fund to fund or from functionto function which will result in the expenditure of any money for any purpose different from thatfor which the money was appropriated, allotted, collected, or otherwise made available or for apurpose which is not authorized by law. No revision of any budget under the provisions hereofshall be made which will permit a fund expenditure in excess of the amounts available for suchpurpose. The revised portions of the budgets shall be incorporated in the minutes of the Board ofTrustees by spreading them on the minutes or by attaching them as an addendum. Final budgetrevisions, pertinent to a fiscal year, shall be approved on or before August 15 of the followingfiscal year. Section §37-61-21 (1991)
LINE ITEM TRANSFER AUTHORITY DCI
The Board of Trustees shall approve all transfers between individual funds except those approvedas part of the budget. Transfers approved as part of the budget already have the approval of theBoard of Trustees and a second approval of the actual transaction is unnecessary unless differentfrom the budget.
LEGAL REFERENCE: Section §37-61-21 (1991)
No school district shall, except as provided in Section §37-59-7, hereafter issue bonds for thepurposes authorized by law in an amount which, added to all of its then outstanding bondedindebtedness, shall result in the imposition on any property in such district of an indebtedness forschool purposes of more than fifteen percent (15%) of the assessed value of the taxable propertywithin such district, according to the then last completed assessment for taxation, regardless ofwhether any such indebtedness shall have been incurred by such district or by another schooldistrict or districts. Section §37-59-5 (1968)
Any school district in which the total number of pupils enrolled at any one time during the schoolyear shall have increased by at least fifty percent (50%) within the preceding five (5) years shallnot issue bonds for the purposes authorized by law in an amount which when added to all of itsthen outstanding bonded indebtedness, shall result in the imposition on any of the property insuch district of an indebtedness for school purposes of more than fifty percent (50%) of theassessed value of the taxable property within such district according to the then last completedassessment taxation.
The pupil increase mentioned hereinabove shall apply to growth in pupil enrollment andshall not apply to pupil increases brought about by consolidation of school districts.
Any school district may hereafter issue bonds in an amount exceeding the limit of
DEBT LIMITATION DE
Section §37-59-5 for the purpose of constructing, reconstructing, repairing, equipping,remodeling or enlarging school buildings and related facilities, as described in subsection (a) ofSection §37-59-3, but no such district shall issue bonds in an amount which when added to all ofits then outstanding bonded indebtedness, shall result in the imposition on any property in suchdistrict of an indebtedness for such school purposes of more than twenty percent (20%) of theassessed value of the taxable property in such district, according to the then last completeassessment for taxation, regardless of whether any of such indebtedness shall have been incurredby such district or by another school district or districts:
a. In the event of the damage to or destruction of any school building or schoolbuildings, or related facilities of any such district by fire, windstorm, flood orother providential and unforeseeable cause; or
b. In the event such school district has lost its accreditation and the construction,reconstructing, repairing, equipping, remodeling, or enlarging of such schoolbuildings and related facilities is necessary for the restoration of suchaccreditation.
In any school district wherein more than nine percent (9%) of the total land area of the schooldistrict is owned by the federal government and situated in a flood control reservoir ormaintained as a part of the national forest system, the said school district may issue bonds in anamount, which when added to all of its then outstanding bonded indebtedness for schoolpurposes, shall result in the imposition on any of the property in such school district of anindebtedness for school purposes of not more than twenty percent (20%) of the assessed value ofthe taxable property within such district, according to the then last completed assessment fortaxation, regardless of whether any of such indebtedness shall have been incurred by such schooldistrict or by another school district or districts. If bonds in an amount in excess of fifteenpercent (15%) of the total assessed value of the property of a school district are issued under theprovisions of this subsection, not less than twenty-five percent (25%) of the total funds receivedby the school district under the provisions of Section §49-19-23, Mississippi Code of 1972, shallbe paid into the bond and interest sinking fund of such district and used for the retirement of thebonds so issued.
In any district where the assessed valuation per pupil is less than seventy-five percent (75%) ofthe average of all school districts, such school districts may issue bonds for the purposesauthorized by Section §37-59-3 in an amount exceeding the fifteen percent (15%) debt limitationset fourth in Section §39-59-5, but not exceeding an amount which, when added to all of theschool district’s then outstanding bonded indebtedness, shall not result in the imposition on anyof the property in such district of an indebtedness for such school purposes of more than twenty-five percent (25%) of the assessed value of the taxable property in such district, according to thethen last completed assessment for taxation if:
a. The Board of Trustees or Board of Education of the school district adopts aresolution finding that issuing bonds in an amount exceeding the limitation statedin Section §37-59-5 is necessary to provide or maintain adequate educational
facilities within the school district; and
b. The notice of the bond selection required by Section §37-59-13 contains aprovision notifying the qualified electors in the school district:
(i) Of the fact that the proposed bonds, if issued, will exceed the fifteenpercent (15%) debt limit contained in Section §37-59-5; and
(ii) Of the reasons why the school district is proposing to exceed saidlimitation;
c. The election is held and the proposed bond issue receives the requisite voterapproval as set forth in Section §37-59-17, Section §37-59-7 (1995)
The Superintendent of the Picayune School District will manage Sixteenth Section lands in sucha way to provide maximum benefits to the Picayune School District.
REVENUES: SIXTEENTH SECTION LAND MANAGEMENT DF
TAX LEVY FOR SUPPORT OF ADEQUATE EDUCATION
[Until July 1, 2002, Section §37-57-1 shall read as followa:]
1. (a) The Boards of Supervisors of the counties shall levy and collect all taxes for andon behalf of all school districts which were within the county school system ordesignated as special municipal separate school districts prior to July 1, 1986. Such taxes shall be collected by the county tax collector at the same time and inthe same manner as county taxes are collected by him, and the same penalties fordelinquency shall be applicable.
The governing authorities of the municipalities shall levy and collect all taxes forand on behalf of all school districts which were designated as municipal schooldistricts prior to July 1, 1986. Such taxes shall be collected by the municipal taxcollector at the same time and in the same manner as municipal taxes are collectedby him, and the same penalties for delinquency shall be applicable.
The county or municipal tax collector, as the case may be, shall pay such taxcollections, except for taxes collected for the payment of the principal of andinterest on school bonds or notes except for taxes collected to defray collectioncosts, into the school depository and report to the school board of the appropriateschool district at the same time and in the same manner as the tax collector makes
LOCAL TAX REVENUES DFA
his payments and reports of other taxes collected by him.
Provided, however, the State Board of Education shall determine the appropriatelevying authority for any school district created or organized after July 1, 1987.
(b) For the purposes of this chapter and any other laws pertaining to taxes levied orbond or notes issued for and on behalf of school districts, the term “levyingauthority” means the Board of Supervisors of the county or governing authoritiesof the municipality, whichever levis taxes for and on behalf of the particularschool district as provided in paragraphs (a) and (b) of this subsection.
2. On or before September 1 of each year, the State Board of Education shall certify to thelevying authority for each school district the amount of the minimum local ad valorem taxeffort in dollars required of such school district for the current fiscal year under theprovisions of Chapter 19 of this title. The levying authority for the school district shall, atthe same time and in the same manner as other taxes are levied by the levying authority,levy a tax for the then current fiscal year for the support of the Mississippi AdequateEducation Program upon all of the taxable property of the school district. Such tax shallbe expressed in mills or a decimal fraction of a mill, and shall be at such a rate as will,when applied to the assessed valuation of the school district according to the assessmentrolls of the county or municipality, as the case may be, produce a sum of money which isequal to the amount which said school district is required to contribute as its minimumlocal ad valorem tax effort under the provisions of Chapter 19 of this title. However, inno case shall the minimum local ad valorem tax effort for any school district be equal toan amount that would require a millage rate exceeding fifty-five (55) mills in that schooldistrict. Provided, however, that if a levying authority is levying in excess of fifty-five(55) mills on July 1, 1997, the levying authority may levy an additional amount notexceeding three (3) mills in the aggregate for the period beginning July1,1997, and endingJune 30, 2003, subject to the limitation on increased receipts from ad valorem taxesprescribed in Section §37-57-105 and Section §37-57-107. Nothing in the subsectionshall be construed to require any school district that is levying more than fifty-five (55)mills pursuant to Section §37-57-1 and Section §37-57-105 to decrease its millage rate tofifty-five (55) mills or less. In making such levy, the levying authority shall levy anadditional amount sufficient to cover anticipated delinquencies and costs of collection sothat the net amount of money to be produced by such levy shall be equal to the amountwhich the school district is required to contribute as its said minimum local ad valoremtax effort. The tax so levied shall be collected by the tax collector at the same time and inthe same manner as other ad valorem taxes are collected by him. The amount of taxes socollected as a result of such levy shall be paid into the minimum education program fundof the school district by the tax collector at the same time and in the same manner asreports and payments of other ad valorem taxes are made by said tax collector except thatthe amount collected to defray costs of collection may be paid into the county generalfund. The levying authority shall have the power and authority to direct and causewarrants to be issued against such fund for the purpose of refunding any amount of taxeserroneously or illegally paid into such fund where such refund has been approved in the
manner provided by law. Section §37-57-1 (1997)
[From and after July 1, 1996, Section §37-57-105 shall read as follows:]
1. In addition to the taxes levied under Section §37-57-1, Mississippi Code of 1972, thelevying authority for the school district, as defined in Section §37-57-1, Mississippi Codeof 1972, upon receipt of a certified copy of an order adopted by the school board of theschool district requesting an ad valorem tax effort in dollars for the support of the schooldistrict, shall, at the same time and in the same manner as other ad valorem taxes arelevied, levy an annual ad valorem tax in the amount fixed in such order upon all of thetaxable property of such school district, which shall not be less than a millage ratenecessary to generate funds equal to the “district entitlement” as defined in Section §37-22-1 (2)(e) or the millage rate certified by the State Board of Education as the uniformminimum school district ad valorem tax levy, whichever is less, including the amount ofmillage levied for the support of the minimum education program in such school districtunder Section §37-57-1, Mississippi Code of 1972. Provided, however, that any schooldistrict levying less than the uniform minimum school district ad valorem tax levy on July1, 1989, or a millage rate necessary to generate funds equal to the “district entitlement”shall only be required to increase its local district maintenance levy in four (4) mill annualincrements in order to attain such millage requirements. In making such levy, the levyingauthority shall levy an additional amount sufficient to cover anticipated delinquencies andcosts of collection so that the net amount of money to be produced by such levy shall beequal to the amount which is requested by said school board. The proceeds of such taxlevy, including levies for the payment of the principal of an interest on school bonds ornotes and excluding levies for costs of collection, shall be placed in the school depositoryto the credit of the school district and shall be expended in the manner provided by lawfor the purpose of supplementing teachers’ salaries, extending school terms, purchasingfurniture, supplies and materials, and for all other lawful operating and incidentalexpenses of such school district, funds for which are not provided by MississippiAdequate Education Program fund allotments.
The monies authorized to be received by school districts from the school Ad ValoremTax Reduction Fund pursuant to Section §37-57-35 shall be included as ad valorem taxreceipts. The levying authority for the school district as defined in Section §37-51-1,Mississippi Code of 1972, shall reduce the Ad Valorem tax levy for such school districtin an amount equal to the amount distributed to such school district from the School AdValorem Tax Reduction Fund each calendar year pursuant to Section §37-61-35. Suchreduction shall not be less than the millage rate necessary to generate a reduction in AdValorem tax receipts equal to the funds distributed to such school district from the SchoolAd Valorem Tax Reduction Fund pursuant to Section §37-61-35. Such reduction shallnot be deemed to be a reduction in the aggregate amount of support from Ad Valoremtaxation for purposes of Section §37-19-11, Mississippi Code of 1972. The millage levycertified by the State Board of Education as the uniform minimum Ad Valorem tax levyor the millage levy that would generate funds in an amount equal to a school district’sentitlement as defined in Section §37-22-1(2)(e), shall be subject to the provisions of this
paragraph.
2. When the tax is levied upon the territory of any school district located in two (2) or morecounties, the order of the school board requesting the levying of such tax shall be certifiedto the levying authority of each of the counties involved, and each of the levyingauthorities shall levy the tax in the manner specified herein. The taxes so levied shall becollected by the tax collector of the levying authority involved and remitted by the taxcollector to the school depository of the home county to the credit of the school districtinvolved as provided above, except that taxes for collection fees may be retained by thelevying authority for deposit into its general fund.
3. The aggregate receipts from Ad Valorem taxes levied for school district purposes,excluding collection fees, pursuant to this section and Section §37-57-1, MississippiCode of 1972, and excluding amounts received by school districts from the school AdValorem Tax Reduction Fund pursuant to Section §37-57-105; however, if the AdValorem tax effort in dollars requested by the school district for the fiscal year exceedsthe next preceding fiscal year’s ad valorem tax effort in dollars by more than four percent(4%) but not more than seven percent (7%), then the school board shall publish noticethereof one each week for at least three (3) consecutive weeks in a newspaper havinggeneral circulation in the school district involved, with the first publication thereof to bemade not less than fifteen (15) days prior to the final adoption of the budget by the schoolboard. If at any time prior to said adoption a petition signed by not less than twentypercent (20%) or fifteen-hundred (1,500), whichever is less, of the qualified electors ofthe school district involved shall be filed with the school board requesting that an electionbe called on the question of exceeding the next preceding fiscal year’s ad valorem taxeffort in dollars by more than four percent (4%) but not more than seven percent (7%),then the school board, not later than the next regular meeting, adopt a resolution callingan election to be held within such school district upon such question. The election shallbe called and held, and notice thereof shall be given, in the same manner for electionsupon the questions of the issuance of the bonds of school districts, and the results thereofshall be certified to the school board. The ballot shall contain the language “For theSchool Tax Increase Over Four Percent (4%) and “Against the School Tax Increase OverFour Percent (4%).” If a majority of the qualified electors of the school district whovoted in such election shall vote in favor of the question, then the stated increaserequested by the school board shall be approved. For the purposes of this paragraph, therevenue sources excluded from the increased limitation under Section §37-57-107,Mississippi Code of 1972, shall also be excluded from the limitation described in thesame manner as they are excluded under Section §37-57-107, Mississippi Code of 1972. §37-7-105 (1994)
[From and after July 1, 1996, Section §37-57-107 shall read as follows:]
Beginning with the tax levy for the 1997 fiscal year and for each fiscal year thereafter, theaggregate receipts from taxes levied for school district purposes pursuant to Section §37-57-105 and Section §37-57-1 shall not exceed the aggregate receipts from those sources
during any one (1) of the immediately preceding three (3) fiscal years, as determined bythe school board, plus and increase not to exceed seven percent (7%). For the purpose ofthis limitation, the term “aggregate receipts” when used in connection with the amount offunds generated in a preceding fiscal year shall not include excess receipts required bylaw to be deposited into a special account, and shall not include amounts received byschool districts from the School Ad Valorem Tax Reduction Fund pursuant to Section§37-61-35. The additional revenue from the Ad Valorem tax on any newly constructedproperties or any existing properties added to the tax rolls or any properties previouslyexempt which were not previously exempt which were not assessed in the next precedingyear may be excluded from the seven percent (7%) increase limitation set forth herein.Taxes levied for payment of principal and of interest on general obligation school bondsissued heretofore or hereafter shall be excluded from the seven percent (7%) increaselimitation set forth herein. Any additional millage levied to fund any new programmandated by the Legislature shall be excluded from the limitation for the first year of thelevy and included within such limitation in any year thereafter. For the purposes of thissection, the term “new program” shall include, but shall not be limited to, (a) the EarlyChildhood Education Program required to commence with the 1986-1987 school year asprovided by Section §37-21-7 and any additional millage levied and the revenuegenerated therefrom, which is excluded from the limitation of the first year of the levy, tosupport the mandated Early Childhood Education Program shall be specified on theminutes of the school board and of the governing body making such tax levy, (b) anyadditional millage levied and the revenue generated therefrom which shall be excludedfrom the limitation for the first year of the levy, for the purpose of generating additionallocal contribution funds required for the minimum education program for the 1987 fiscalyear and for each fiscal year thereafter through the 1996 fiscal year under Section §37-19-35, and additional millage levied and the revenue generated therefrom which shall beexcluded from the limitation for the first and each subsequent year of the levy, for thepurpose of generating additional local contributions mandated under Section §37-57-105requiring the Board of Trustees of a school district to reach the millage levy certified bythe State Board of Education as the uniform minimum school district Ad Valorem taxlevy or the millage levy which would generate funds in an amount equal to a schooldistrict’s “district entitlement” as defined in Section §37-22-1(2)(e), and (d) anyadditional millage levied and the revenue generated therefrom which shall be excludedfrom the limitation for the first year of the levy, for the purpose of support andmaintenance of any agricultural high school which has been transferred to the control,operation and maintenance of the school board by the board of trustees of the communitycollege district under provisions of Section §37-29-272.
The seven percent (7%) increase limitation prescribed in this section may be increased anadditional amount only when the school board has determined the need for additionalrevenues and has held an election on the question of raising the limitation prescribed inthis section. The limitation may be increased only if three-fifths (3/5) of those voting inthe election shall vote for the proposed increase. The resolution, notice and manner ofholding the election shall be as prescribed by law for the holding of elections for theissuance of bonds by the respective school boards. Revenues collected for the fiscal year
in excess of the seven percent (7%) increase limitation pursuant to an election shall beincluded in the tax base for the purpose of determining aggregate receipts for which theseven percent (7%) increase limitation applies for subsequent fiscal years.
Except as otherwise provided for excess revenues generated pursuant to an election, ifrevenues collected as the result of the taxes levied for the fiscal year pursuant to thissection and Section §37-57-1 exceed the increase limitation, then it shall be themandatory duty of the school board of the school district to deposit such excess receiptsover and above the increase limitation into a special account and credit it to the fund forwhich the levy was made. It will be the further duty of such school board to hold said
funds and invest the same as authorized by law. Such excess funds shall be calculatedin the budgets for the school districts for the purpose for which such levies were made,for the succeeding fiscal year. Taxes imposed for the succeeding year shall be reduced bythe amount of excess funds available. Under no circumstances shall such excess funds beexpended during the fiscal year in which such funds are collected.
For the purposes of determining Ad Valorem tax receipts for a preceding fiscal year underthis section, the term “fiscal year” means the fiscal year beginning October 1 and endingSeptember 30. §37-57-107 (1994)
No school district may budget an increase in an Ad Valorem tax effort in dollars forsupport of the school district unless it advertises its intention to do so at the same timethat it advertises its intention to fix its budget for the forthcoming fiscal year.
No request for an Ad Valorem tax effort in dollars for the support of the school district inexcess of the certified tax rate pursuant to Section §37-57-105 and Section §37-57-107may be levied until an order has been approved by the school board of the school districtin accordance with the procedure set forth in Section §27-39-207, Mississippi Code of1972. Section §27-39-207 (1995)
NOTE: For changes in Ad Valorem taxation under Section §37-57-1 that willbecome effective on and after July 1, 2002, refer to MS Code §37-57-1(1997)
Effective with the 2012/2013 school year, the local school board may authorize each school toissue procurement cards provided by the Department of Finance and Administration under theprovision of Section §31-7-9(1) (c) for the use of teachers and necessary support personnel inmaking instructional supply fund expenditures under this section, consistent with the regulationsof the Mississippi Department of Finance and Administration pursuant to Section §31-7-9. Suchprocurement cards shall be issued at the beginning of the school year and shall be issued in equalamounts per teacher determined by the total number of qualifying personnel and the current stateappropriation for classroom supplies with the Education Enhancement Fund. Such cards willexpire on a pre-determined date at the end of each school year. All unexpended amounts will becarried forward, combined with the following year’s allocation of Education Enhancement Fundinstructional supplies funds and reallocated for the following year.
MISSISSIPPI DEPARTMENT OF FINANCE AND ADMINISTRATIONOFFICE OF PURCHASING AND TRAVEL
SMALL PURCHASE PROCUREMENT CARD ACCOUNTSCHOOL DISTRICTS EDUCATION ENHANCEMENT FUNDS PROGRAM (EEF)
EEF PROGRAM DESCRIPTION AND AGREEMENT
PROGRAM DESCRIPTION
In relation to the services described in UMB Banks’ Response to RFP 946-91, State of
EDUCATIONAL ENHANCEMENT FUNDS DFBA
Mississippi Procurement Card Services, dated November 20, 2009, the Office of Purchasing andTravel, (OPT), is offering a procurement card option to all school districts per Senate Bill No. 2761 for distribution of Education Enhancement Funds (EEF) for payment of approvedofficial teacher expenses used for education enhancement. The EEF card can be used only by theteacher to whom the card is issued to for allowable expenses. Cardholders have no authority toallow other individuals to use their school district EEF card.
The Mississippi Department of Education, Mississippi Office of Purchasing and Travel and theSchool District will determine to whom cards will be issued to through the EEF Card Program. The funds to be made available to the cardholder are determined by the school district’sdesignated EEF Program Coordinator, school district management, Department of Educationand/or the Office of Purchasing and Travel based on the School District’s allowance. Allcards/accounts must be issued in the school district’s/account name.
Type of Card Account
The school district EEF Card Program is available only as a carded option.
Individual Teacher Cardholder EEF Account – This is a carded account which operates with the issuance of a plastic card. This option is available to designatedteachers and professional staff within a school district. This type card allows anemployee to pay for the materials for the classroom only and any other expense is notallowed. Cards are issued in the name of the district.
All authorized vendors will be included except the excluded merchant types which willbe blocked to add additional internal controls to the account.
Vendor Services
All vendor purchases made using the school district EEF program card account program shouldbe made in accordance with the policies and procedures established by the Office of Purchasingand Travel and the Department of Education. The EEF program account is to be used forauthorized school district materials only.
Additional Guidelines
If a school district elects to establish additional guidelines not stated in this agreement, the schooldistrict must present an approved request to the Department of Education and the Office ofPurchasing and Travel Card SPPC Card Program Administrator and receive approval prior to
implementing said guidelines.
Account Limits
The local school district will establish the appropriate purchase limits and controls for the EEFcard program accounts. The school district will determine the number of teachers eligible toreceive EEF funds and will calculate an equal allocation for each eligible teacher based on theschool district’s allocation.
Documentation and Retention
Documentation must be provided by the cardholder for reconciliation to the EEF AccountStatement. Cardholders must retain all documentation pertaining to the purchases.
Electronic Statements
Each school district and cardholder will have the ability to review an electronic copy of the EEFAccount Statement. Payments will be made by the Mississippi Department of Education.
Cardholder Responsibilities
A. Sign a TEACHER CARDHOLDER AGREEMENT and abide by the schooldistrict policies and procedures.
B. Ensure that the types of card charges are made in accordance with the policies ofthe Department of Education, Office of Purchasing and Travel and theProcurement Card Guidelines.
C. Cardholder will contact the bank at 1-800-821-5184 immediately if the card is lostor stolen. Additionally, the cardholder will contact the Program Coordinatorimmediately to report the card as lost or stolen.
Unauthorized Expenses
The following types of expenses are not allowable at any time and includes but are not limited to:
Business Related Phone Calls/Internet/Fax ServiceBusiness Related Airfare Combined with Personal AirfareCash AdvancesFirst Class and Business Class TravelTravel expenses for traveling companions or spousesPersonal ItemsPersonal CallsGasoline for personal and rental vehiclesAny purchase for which the District does not receive direct benefitMoviesMeals, food, and beveragesAlcoholAny lodging expenseFurniture
Card Violations
The Office of Purchasing and Travel requires individual cardholders and Districts to strictlyadhere to the policies and procedures governing use of the school district EEF card programwhich may be established and modified from time to time as necessary. Failure to do so mayresult in disciplinary action. Additionally, such failure could result in prosecution to the fullestextent of the law, including financial restitution and criminal prosecution. This policy may beadministered in accordance with other State procurement policies and the laws of the State ofMississippi.
Violation of policies governing use of the school district EEF card accounts will not be allowed. The action taken is dependent upon the type of violation and the number of previous cardholderviolations. A School District Superintendent or authorized designee, or the Office of Purchasingand Travel Purchasing Card Administrator is authorized to suspend a cardholder’s privileges asdeemed necessary without prior notice however, the school district will be notified of any suchaction. All other actions are determined at the appropriate school district’s level. Any allegedviolation or questionable transaction could result in an immediate temporary suspension of cardprivileges pending a review to determine what, if any, action is appropriate.
Any violation will result in immediate temporary suspension of the cardholder’s privileges andnotification of the school district’s superintendent. If deemed appropriate the bank, police, andthe appropriate school board president and/or members will also be notified. Possibledisciplinary actions include:
# Cardholder receives written counseling by the appropriate school districtpersonnel. This will be provided to the district for the employee’s officialpersonnel file. Temporary suspension of cardholder privileges for 30 or moredays and mandatory retraining before the cardholder’s privileges are reinstated.
# Permanent suspension of card privileges.# Termination of employment – coordination with Human Resources required.
Failure to Comply with Laws, Policies, and Procedures
Cardholders will use cards in accordance with all policies and procedures as referenced in thisdocument which may be amended as necessary. Cardholders who knowingly, or through willfulneglect, fail to comply with the following may be subject to suspension or termination of cardprivileges or other disciplinary action; and criminal prosecution to the fullest extend of the law.
# Official State of Mississippi Code Annotated, sections related to governmentalpurchasing.
# Applicable requirements of the Small Procurement Card Guidelines.# Applicable requirements of the Statewide Procurement Manual.# Internal policies and procedures governing procurement and the Small Purchases
Procurement Card Program.# Mississippi Educator Code of Ethics and Standards of Conduct.# Applicable requirements, policies and procedures as set forth by the Mississippi
Department of Education.
The Office of Purchasing and Travel, School District Superintendent, or his/her designeereserves the right to withdraw any authority or delegated approval due to non-compliance with
applicable laws, rules, regulations, policies, and procedures, or the terms of any conditionalapproval.
Program Coordinator Designation
The school district will designate a Program Coordinator and at least one Alternate (backup)Program Coordinator to direct the operation of the program. The Office of Purchasing, andTravel and Issuer Bank may rely on instructions from these individuals as properly authorized bythe District. A current list of authorized Program Coordinators will be provided to the Office of
Purchasing and Travel as required by using the PROGRAM COORDINATOR
DESIGNATION REQUEST FORM.
Eligible Teachers
On or before September 1 of each year, the local school district shall determine and submit to theState Department of Education the number of teachers eligible to receive an allocation for thecurrent year.LEGAL REFERENCE: Senate Bill #2761, (2012 Regular Session
Senate Bill #2571 (2014 Regular Session)
MISSISSIPPI DEPARTMENT OF FINANCE AND ADMINISTRATIONOFFICE OF PURCHASING AND TRAVEL
SMALL PURCHASE PROCUREMENT CARD ACCOUNTEDUCATION ENHANCEMENT FUNDS PROGRAM (EEF)
TEACHER CARDHOLDER AGREEMENT
The teacher named herein referred to as “Cardholder” is requesting a procurement card toprovide for access to Education Enhancement Funds as authorized by Mississippi Senate Bill 2761 and that will be utilized to make financial commitments on behalf of the schooldistrict. As the only authorized cardholder, Cardholder agrees to accept the responsibilityfor the protection and proper use of the State’s Small Purchase Procurement Card inaccordance with the terms and conditions below:
1. Cardholder agrees to purchase authorized commodities for official school purposes. (Personal items may not be charged at any time.)
2. Cardholder agrees to abide by the terms of the Statement of Understanding and theMississippi Educator Code of Ethics and Standards of Conduct.
3. Cardholder agrees to notify the merchant that the purchase is made in the name of aschool district which is exempt from state and local taxes. (If taxes are charged, obtaincredit immediately.)
4. Cardholder agrees to retain all supporting receipts from merchants.
5. Cardholder may review the monthly statement online.
6. If the cardholder becomes unemployed during the school year, the procurement cardshould be turned in immediately to the Program Coordinator.
7. Cardholder is subject to an annual audit of purchases. The cardholder must maintainreceipts for all purchases for at least five (5) years.
8. Back orders are not allowed. (Assure that all commodities are received.)
9. Cardholder agrees not to request/provide cash advances. (Cash advances are notallowed.)
10. Cardholder agrees not to charge travel related expenses on the procurement card. (Anyform of travel related expenses is not allowed)
11. Cardholder will contact the bank at 1-800-821-5184 immediately if the card is lost orstolen. Additionally, the cardholder will contact the Program Coordinator immediately toreport the card as lost or stolen.
12. Cardholder user agrees to return the card immediately upon request, termination,resignation or retirement.
13. Cardholders must notify the Program Coordinator of any items purchased that the districtmay require to be placed on the district’s fixed asset inventory as donated by the State ofMississippi.
14. If a cardholder chooses to pool their resources with another cardholder, any purchasesmade shall be the responsibility of the cardholder assigned to the card being used.
MISSISSIPPI DEPARTMENT OF FINANCE AND ADMINISTRATIONOFFICE OF PURCHASING AND TRAVEL
SMALL PURCHASE PROCUREMENT CARD ACCOUNTEDUCATION ENHANCEMENT FUNDS PROGRAM (EEF)
Teacher Cardholder Agreement (con’t)
I. ________________________________(Cardholder-name of teacher), certify that I have readand fully understand the above terms and conditions and I hereby agree to comply with the termsand conditions of the Procurement Cardholder Agreement, the Procurement Card Policies,Procedures and Guidelines, the Statement of Understanding, Department of Education and theMississippi Educator Code of Ethics and Standards of Conduct, as well as, any additionalpolicies and procedures established by the Office of the Purchasing and Travel, and the schooldistrict’s policies and procedures for use of the State of Mississippi’s Small PurchaseProcurement Card. I understand that I will be held personally responsible for all charges for anypurchase which is made and is not in compliance with these policies and procedures. I alsounderstand that my school may have additional restrictions and that I will abide by any and allsuch requirements. In addition to being personally liable for any such charges not in compliance,I understand that failure to follow the established procedures for use of the card may result ineither the revocation of my privileges or other disciplinary actions.
Cardholder/authorized user acknowledges by his/her signature to this agreement below thathe/she agrees to comply with the following terms and conditions stated above.
______________________________________________________________________________Printed Name of Cardholder School District
______________________________________________________________________________Signature of Cardholder Date Signed
______________________________________________________________________________Account Number
______________________________________________________________________________Account Serial Number
The Picayune School District shall be in compliance with applicable laws and regulationsgoverning the use of federal assistance funds and the operation of federal assistance programs.
Internal control systems shall be in place to provide reasonable assurances that laws andregulations are being followed.
No federal assistance programs funds shall be used in any way for partisan political activity. (Also see GAHB.)
The Picayune School District shall use all federal assistance funds designated for specificprograms to supplement, not supplant, state and local funds. After federal funds arediscontinued, the programs shall be maintained as needed and within district financial constraintsas determined by the administration.
The Picayune School District shall treat all children in an equitable manner by seeing that allregular programs are available to all students.
CROSS REFERENCE: Board Policy – GAHB – POLITICAL ACTIVITIES
Board Approved, Second Reading, May 28, 2013
FEDERAL FINANCIAL ASSISTANCE PROGRAMS DFC/GAHB
All monthly “Requests for Funds” for all Consolidated Federal Programs will be made incompliance with the Elementary and Secondary Education Act regulations and guidelines. All“Requests for Funds” will be made as a reimbursement for actual expenditures as documented bythe Picayune School District’s accounting system in compliance with the requirements of theState Accounting Manual and the State Audit Department.
REQUESTS FOR FUNDS/ALL CONSOLIDATED FEDERAL DFC/GAHBAPROGRAMS
The Superintendent shall give a report to the Board of Trustees as to the enrollment of students. This report shall be given in the fall after the opening of the new school year.
The Superintendent shall make application for all such State and federal programs and grants asshall be approved by the Board of Trustees and to conduct such surveys as are required.
Federal programs will be used to strengthen the Picayune School District’s educational plan.
FEDERAL AND SCHOOL CENSUS DFCA
It shall be the policy of the Board of Trustees to draw down only enough fund monies for payrolland/or other payable expenses each month. It shall also be the policy that the draw-down will bein the amount so as not to accumulate federal funds.
CASH MANAGEMENT OF FEDERAL FUNDS DFCB
The Board of Trustees is authorized to issue negotiable bonds of the Picayune School District toraise money for the following purposes in accordance with State law:
a. Purchasing, erecting, repairing, equipping, remodeling, and enlarging school buildingsand related facilities, including gymnasiums, auditoriums, lunch rooms, vocationaltraining buildings, libraries, teachers’ homes, school barns, transportation vehicles andgarages for transportation vehicles, and purchasing land therefor,
b. Establishing and equipping school athletic fields and necessary facilities connectedtherewith, and purchasing land therefor,
c. Providing necessary water, light, heating, air conditioning, and sewerage facilitiesconnected therewith, and purchasing land therefor, and
d. Paying part of the costs to be incurred in erecting, repairing, equipping, remodeling, andenlarging school buildings and related facilities which are owned and operated by state-supported institutions of higher education as demonstration or practice school attended bypupils, grades, or one or more, or parts of grades from the educable children of suchschool district pursuant to a contract or agreement between said institution and saidschool district.
BOND SALES DFD/FFA
The authority to issue the bonds hereinabove set forth shall include the authority for the Board ofTrustees to spend the money for the purposes for which said money is raised. Section §37-59-3(1987)
NOTE: For details and procedures for issuance of bonds see MS Code Section §37-59-7 eseq. As to additional powers conferred in connection with issuance of bonds seeSection §37-59-25 and Section §37-61-33, Education Enhancement Fund.
CROSS REFERENCE.: Board Policy – DC – ANNUAL OPERATING BUDGETBoard Policy – DE – DEBT LIMITATIONBoard Policy – DFE – SHORT TERM NOTES
The Board of Trustees, with the approval of the State Board of Education, may borrow money forthe purchase of school transportation equipment or to establish, erect, and equip school bus shopsor garages, and purchase land therefor, and issue the negotiable notes or bonds of the PicayuneSchool District as evidence of the indebtedness so incurred.
All notes or bonds issued under lawful authority shall mature in approximately equal annualinstallments over a period of not exceeding six (6) years from the date of the issuance of suchnotes or bonds. Such notes or bonds may bear interest at a rate not exceeding that allowed in law,and such interest may be payable annually or semiannually.
In the event the funds borrowed under lawful authority are to be expended for the purchase ofused transportation equipment, then all notes or bonds evidencing such loans shall be made tomature within two (2) years from the date of the issuance of such notes or bonds.
SHORT – TERM NOTES DFE
The Board of Trustees of the Picayune School District shall have the power and authority toborrow money for the current expenses of the school district in anticipation of the collection ofAd Valorem taxes and other revenues of the school district for the then current fiscal year. Themoney so borrowed shall bear interest at a rate not greater than that allowed in Section §75-17-105 and shall be repaid within fourteen (14) months from the date of such borrowing out of thetaxes and revenues in anticipation of which such money is borrowed. Such money shall be usedfor no other purpose than the payment of the current expenses of the Picayune School District.
Pending the expenditure of funds borrowed under the provisions of this section, such funds maybe invested in any manner in which any school district, municipality, county, State agency, orother public body may invest surplus funds.
The amount borrowed under the provisions of this section shall in no event exceed the estimatedamount of taxes and revenues collected or to be collected during the last preceding fiscal year,unless the tax levy for the current fiscal year has been made, then the amount borrowed under theprovisions of this section shall in no event exceed the estimated amount of taxes and revenuescollected or to be collected during the current fiscal year. Revenue anticipation notes issuedunder the provisions of this section shall be issued within the same fiscal year during which thetax levy is or will be made and other revenues received which it is anticipated will produce thefunds from which the said notes will be repaid.
TAX ANTICIPATION NOTES/SHORTFALL BORROWING DFEA
In borrowing money under the provisions of this section, it shall not be necessary to publishnotice of intention so to do or to secure the consent of the qualified electors of such schooldistrict, either by election or otherwise. Such borrowing shall be authorized by order orresolution of the Board of Trustees and may be evidenced by negotiable note or notes, signed andexecuted in such form as may be prescribed in such order or resolution. Money may be borrowedin anticipation of Ad Valorem taxes and other revenues under the provisions of this section,regardless of whether or not such borrowing shall create an indebtedness in excess of statutorylimitations.
Money may likewise be borrowed by the Picayune School District, as herein provided, for thepurpose of paying current interest maturities on any bonded indebtedness of the Picayune SchoolDistrict in anticipation of the collection of taxes for the retirement of such bonded indebtednessor the payment of any interest thereon. MS Code Section §37-59-37 (1993)
CROSS REFERENCE: Board Policy DFE – SHORT TERM NOTES
Any employee of the Picayune School District who wishes to apply for or accept any grant oraward or participate in any program involving financial assistance to the employee for use in thePicayune School District or to the Picayune School District itself must receive approval of theBoard of Trustees prior to writing proposals for submission to grant agencies, organizations, orindividuals.
A written description shall be submitted to the Superintendent for approval, including thefollowing:
1. Purpose (goals, objectives); nature of program,2. Source,3. Project or program guidelines,4. Educational justification,5. Amount requested; total amount required to implement program/project,6. Subsequent cost to the Picayune School District to maintain program, if
applicable, and7. Reports required.
The Superintendent shall make a recommendation to the Board of Trustees for approval or
GRANTS, AWARDS, SCHOLARSHIPS, AND PROGRAMS DFFINVOLVING FINANCIAL ASSISTANCE
disapproval.
All grants must be accepted by the Board of Trustees prior to implementation, and salariesidentified in grants must be in conformance with the Picayune School District salary schedule.
All funds received in the form of grants, awards, or program support must be turned in to theCentral Business Office to be deposited to a special account for each program or project. Requests for expenditure of funds will be made through requisitions as required in the handlingof all other such requests for expenditures.
Grant recipients and/or supervisors of programs receiving financial assistance shall be required tokeep a running account of grant expenses and maintain a working knowledge of budgetaryconsiderations during implementation of the program or project. Grant recipients and/orsupervisors of programs receiving financial assistance shall also be responsible for making allreports required in connection with receipt of such financial assistance, including final reportsmade to grant agencies or organizations.
The Superintendent or his/her designee may approve the submission of any grant proposalswhich do not exceed Twenty Five Thousand Dollars ($25,000.00), with the stipulation that iffunding is approved, the proposal will be brought to the Board of Trustees for acceptance prior toobligating the Picayune School District in any way. All proposals exceeding Twenty Five
Thousand Dollars ($25,000.00) must receive administrative and Board of Trustee approval priorto submission.
The Picayune School District by resolution of the Board of Trustees is empowered, withoutpublic or competitive bidding, to sell, lease, lend, grant, or convey to corporation, individual, orpartnership pursuant to Section §37-7-351 through Section §37-7-359 or to permit suchcorporation, individual or partnership to use, maintain, or operate as part of any pubic schoolfacility, any real or personal property which may be necessary, useful, or convenient for thepurposes of the Picayune School District.
All such actions taken by the Board of Trustees shall be in accordance with State laws governingsale, lease, lending, grant, rental, or conveyance of school facilities or other property.
LEGAL REFERENCE: Section §37-7-351 through Section §37-7-359
FEES, PAYMENTS, RENTALS DFG
The Picayune School District will require any person or association who desires to donate assetsto the Picayune School District to have approval by the Board of Trustees prior to the donation ofsaid asset, and the fair market value at the date of donation shall be recorded. The PicayuneSchool District will maintain title of ownership to donated assets.
GIFTS AND BEQUESTS TO SCHOOL DISTRICTS/ DONATED DFKASSETS
The Early Head Start Family and Community Partnership Manager will distribute In-KindVolunteer Time and Mileage Sheets to each infant/toddler teacher and to Home Visitors. TheInfant/Toddler teachers will post the In-Kind Volunteer Time and Mileage Sheets in theclassrooms and the Home Visitors will take them on Home Visits. Also, Family Mileage Sheetswill be given to each Teacher for children’s families to document daily mileage to and fromschool. (Do not provide transportation.)
At the end of the month, each Teacher and Home Visitor will compile, calculate, and sign eachsheet and submit to Family and Community Partnership Manager for review and verification.
After the Family and Community Partnership Manager has checked and verified time andmileage, calculation sheets are submitted to the Data Entry Clerk to enter into ChildPlus DataEngine system.
After entry, the Data Entry Clerk compiles a printout of the monthly contribution and submits itto the Finance Director at Central Office.
IN-KIND – EARLY HEAD START/HEAD START DFKA
(1) Whenever any school district or levying authority, as defined in Section §37-57-1(1)(b),acting on behalf of a school district, shall have on hand any bond and interest funds, anyfunds derived from the sale of bonds, or any other funds in excess of the sums which willbe required for payment of current obligations and expenses as they come due, and whichare not needed or cannot by law be used for payment of the current obligations orexpenses of the school district, the school board of the district shall have the power andauthority to invest such excess funds in any bonds or other direct obligations of theUnited States of America or the State of Mississippi, or of any county or municipality ofthis State, which such county or municipal bonds have been approved by a reputable bondattorney or have been validated by a decree of the chancery court; or in interest-bearingtime certificates of deposit or interest-bearing accounts with any financial institutionapproved for the deposit of State funds; and such institution shall be eligible to holdschool district funds to the extend that it is qualified as a depository for State funds; or inany type of investment permitted by Section §27-105-33(d) and Section §27-105-33(e). The rate of interest on such time certificates of deposit and interest-bearing account maybe negotiated. The negotiated rate of interest shall be at the highest rate possible at thedate of purchase or investment for such time certificates of deposit or interest-bearingaccounts. In any event, the bonds or obligations in which such funds are invested shallmature or be redeemable prior to the time the funds so invested will be needed forexpenditure. When bonds or other obligations have been so purchased, the same may be
INVESTMENT EARNINGS DFL
sold or surrendered for redemption at any time, except certificates of deposit which mustmature, by order or resolution of such school board, and the president of the school board,when authorized by such order or resolution, shall have the power and authority toexecute all instruments and take such other action as may be necessary to effectuate thesale or redemption thereof.
(2) All earnings from funds other than bond funds or bond sinking funds, in excess of OneHundred Dollars ($100.00) in any fiscal year, invested according to the provisions ofsubsections (1) and (2) of this section shall be deposited in the district fund from whichthe investment was made, or the treasure of the junior college, as the case may be. Earnings from such school district funds are less than One Hundred Dollars ($100.00) inany fiscal year may be deposited in the school district maintenance fund, or in the districtfund from which the investment was made, in the discretion of the school board. Earnings from funds invested out of the bond funds or bond sinking funds together withthe principal, thereof, shall be deposited in the fund from which the investment wasmade.
(3) Nothing contained in this section shall be construed to prevent the payment of theearnings derived from the investment of bond proceeds or any other amounts in the bondfund or related reserve or sinking funds to the federal government to the extent required
by the federal laws applicable to such bonds or the interest income thereon in order tomaintain their tax exempt status. Section §37-59-43 (1993)
The Picayune School District shall maintain detailed subsidiary records documenting thevaluation (cost of fair market value at the date of purchase or donation) of capital assets for anyasset that cost over One Thousand Dollars ($1,000.00) and has useful life of greater than one (1)year and all highly walkable assets. Assets with a valuation under One Thousand Dollars ($1,000.00) shall not be capitalized. A financial accounting shall be made for all capital assetswith a cost greater than One Thousand Dollars ($1,000.00) by coding the purchase order to theappropriate object. Assets with a valuation of under One Thousand ($1,000.00) shall be coded toa non-capitalized object. Expenditures made for the renovation of buildings, major repairs tobuildings, and additional square footage to the building shall also be capitalized.
Generally accepted accounting principles require depreciation of capital assets. Depreciation isthe process of allocating a portion of the historical cost to each year of an asset’s useful life. Thestraight line method of depreciation is calculated by allocating the historical less the residual orsalvage value over the useful life in equal portions. A full year’s depreciation expense will betaken for all purchases and sales of capital assets during the fiscal year.
CAPITALIZATION AND DEPRECIATION OF FIXED ASSETS DFM
The Picayune School District Board of Trustees has full control of the receipt, distribution,allotment and disbursement of all funds which may be provided for the support and maintenanceof the schools of the Picayune School District whether such funds be Mississippi AdequateEducation Program allotments, funds derived from supplementary tax levies as authorized bylaw, or funds derived from any other source whatsoever except as may otherwise be provided bylaw for control of the proceeds from school bonds or notes and the taxes levied to pay theprincipal of interest on such bonds or notes. The tax collector of each county shall make reports,in writing, verified by his/her affidavit, on or before the twentieth day of each month to theSuperintendent of each school district within such county reflecting all school district taxescollected by him/her for the support of said school district during the preceding month. He/sheshall at the same time pay over all such school district taxes collected by him/her for the supportof said school district directly to said Superintendent.
All such allotments or funds shall be placed in the depository or depositories selected by theBoard of Trustees in the same manner as provided in Section §27-105-305 for the selection ofcounty depositories. Provided, however, the annual notice to be given by the Board of Trusteesto financial institutions may be given by the Board of Trustees at any regular meeting subsequentto the December meeting of the Board of Trustees but prior to the regular May meeting. The bidsof financial institutions for the privilege of keeping Picayune School District funds may bereceived by the Board of Trustees at some subsequent meeting, but no later than the regular June
DEPOSITORY OF FUNDS DG
meeting; and the selection by the Board of Trustees of the depository or depositories shall beeffective on July 1 of each year. The Board of Trustees shall advertise and accept bids fordepositories no less than once every three (3) years, when such board determines that it canobtain a more favorable rate of interest and less administrative processing. Such depository shallplace on deposit with the Superintendent the same securities as required in Section §27-105-315.
In the event a bank submits a bid or offer to the Picayune School District to act as a depositoryfor the Picayune School District and such bid or offer, if accepted, would result in a contract inwhich a member of the Board of Trustees would have direct or indirect interest, the Board ofTrustees shall not open or consider any bids received. The Superintendent shall submit thematter to the State Treasurer, who shall have the authority to solicit bids, select a depository ordepositories, make all decisions and take any action within the authority of the Board of Trusteesunder this section relating to the selection of a depository or depositories. Section §37-7-333(1997)
Before entering upon the discharge of the duties of his/her office, each member of the Board ofTrustees shall give a surety bond in the penal sum of Fifty Thousand Dollars ($50,000.00), withsufficient surety, to be payable, conditioned, and approved in the manner provided by law.
The Board of Trustees may execute a blanket surety bond for each Picayune School Districtofficial and employee (who receipts and/or disburses Picayune School District funds) in thepenalty of Fifty Thousand Dollars ($50,000.00), unless a different penalty is prescribed by law. The premium on said bond shall be paid out of the Picayune School District District MaintenanceFund. Section §37-6-15 (1996)
The Superintendent of the Picayune School District, before entering upon the duties of his/heroffice, shall furnish a good and sufficient surety bond in the penal sum of One HundredThousand Dollars ($100,000.00), with sufficient surety. Such bond shall be filed and recorded inthe office of the clerk of the chancery court in which the Picayune School District is located, andshall be payable, conditioned and approved in the manner provided by law. The premium on saidbond shall be paid out of the Picayune School District District Maintenance Fund. Section §37-9-27 (1987)
The purchasing agent(s) of the Board of Trustees, before entering upon his/her official duties in
BONDED EMPLOYEES DH
such capacity, shall furnish a good and sufficient surety bond in the penal sum of Fifty ThousandDollars ($50,000.00), with sufficient surety. Such bonds shall be payable, conditioned andapproved in the manner provided by law, and shall be filed and recorded in the office of the clerkof the Chancery Court in which the Picayune School District is located. The premium on saidbond shall be paid out of the Picayune School District District Maintenance fund. Section §37-39-21 (1987)
A principal acting as purchasing agent must be bonded for total statutorily required coverage ofSeventy Five Thousand Dollars ($75,000.00). The positions of principal may be covered byblanket bond, but the position of purchasing agent requires individual bond. (Attorney General’sOpinion, Middleton)
The Board of Trustees of the Picayune School District may, in its discretion, employ one or morepersons as security personnel and shall be authorized to designate them as peace officer in or onany property operated for school purposes by the Board of Trustees upon taking such oath andmaking such bond as required of a constable of said county. Section §37-73-21 (1987)
All school principals and attendance center principals shall furnish good and sufficient suretybonds in like manner as required of Superintendents. The amount of such bonds shall be FiftyThousand Dollars ($50,000.00), with sufficient surety. The premium upon said bond shall bepaid from the District Maintenance funds of the district served by such principal. Such bondshall be payable, conditioned and approved in the manner provided by law. All such
bonds shall be filed and recorded in the office of the clerk of the chancery court of the county inwhich the Picayune School District is located. Section §37-9-31 (1987)
CROSS REFERENCE: Board Policy: AAA – SCHOOL DISTRICT LIABILITYEXEMPTIONS Board Policy: DIA – INTERNAL CONTROL OF CASH RECEIPTSBoard Policy: DJE – PURCHASING
The Superintendent shall open and keep regular sets of books, as prescribed by the State Auditor,which shall be subject to inspection during office hours by any citizen so desiring to inspect thesame. The books for each fiscal year shall be kept separately and same shall be safely preservedby the Superintendent. Section §37-61-23 (1987)
The Department of Audit of the Office of the State Auditor of public accounts is herebyauthorized and directed to prescribe and formulate for use by all school districts of this State,including Municipal Separate School Districts, adequate accounting systems and other essentialfinancial records which shall be uniform for all of the school districts of this State. Such uniformsystem shall include a method of accounting for and keeping records of all funds received,handled, and disbursed by the Picayune School District, whether derived from taxation orotherwise, including funds derived from donations, athletic events, and other special activities ofthe Picayune School District. The uniform system of accounts so prescribed and formulated bythe Department of Audit shall be distributed and disseminated to all of the school districts of thisState and it shall be mandatory that the Boards of Trustees of all such school districts install,utilize, and follow said uniform system of accounts in keeping the financial records of thePicayune School District. Section §37-37-1 (1953)
ACCOUNTING AND REPORTING DI
The financial accounting data and the corresponding annual audit report as submitted to theMississippi Department of Education reflect at least a zero (0) fund balance (as defined bygenerally accepted accounting principles) for all funds of the Picayune School District. (MS Code Section §37-61-9)
ACCOUNTING PROCEDURES
A. Teachers will be called upon to collect funds from students from time to time. Thesecollections will include workbook fees, school insurance, school photography payments,etc. All monies collected by the teacher shall be receipted, using a receipt provided bythe principal. Strictest care must be taken in the handling of these funds. The followingpoints are to be adhered to:
1. Any collection of money must receive prior approval of the principal.2. Receipt all money collected when it is collected.3. Keep receipted money in a secure place.4. Turn in money as directed by the administration.
B. The principal is responsible for all funds collected and disbursed in the school. For thisreason, no collection of funds or purchases of any kind may be made without the priorknowledge and written approval of the principal. If approval of a purchase is given, apurchase order will be provided. When it is properly filled out the appropriate signatureswill validate it and the approved purchase may be made.
BOOKS OF ORIGINAL ENTRY
• The Picayune School District will utilize a double entry system for accounting for allfunds.
• The Cash Receipts Clerk will record all cash receipts.• The Payroll Clerk will record all the pay for all employees and prepare payrolls on a bi-
monthly basis.• The Accounts Payable Clerk will record all checks in the check register on a daily basis.• The Accountant will prepare general journal entries, and the Finance Director will
approve all general journal entries, and make daily deposits.• Adequate documentation will be maintained to support all general journal entries.• Expenses accounts in the general ledger will correspond to the budget.• The Finance Director will review the books and trial balance at the end of each month.
CROSS REFERENCE: Board Policy: DL – CASH IN SCHOOL BUILDINGS – RESPONSIBILITY FOR LOSS OF FUNDS – HANDLING OF
CASH
The Superintendent shall develop a plan of organization under which employees’ duties are soarranged and records and procedures so designed as to make it possible to exercise effectiveaccounting control over assets, liabilities, revenues, and expenditures. The work of employeesshall be subdivided so that no single employee performs a complete cycle of operations. Theprocedures to be followed shall be definitely laid down and require proper authorization bydesignated officials for all actions to be taken.
All monies shall be receipted to the Picayune School District using pre-numbered receipts in abound book or ledger. Under no circumstances shall monies be deposited to any bank accountwithout a proper receipting of such monies. Any and all documentation necessary to support thecash receipts shall be maintained on file.
Administrative controls include, but are not limited to, the plan of organization and theprocedures and records that are concerned with the decision processes leading to management’sauthorization of transactions. Such authorization is a management function directly associatedwith the responsibility of achieving the objectives of the organization and is the starting point
ACCOUNTING SYSTEM – INTERNAL CONTROL OF CASH RECEIPTS DIA
establishing accounting control of transactions.
Accounting controls comprise the plan of organization and the procedures and records that areconcerned with safeguarding of assets and the reliability of financial records and consequentlyare designed to provide reasonable assurance that:
• Transactions are executed in accordance with management’s general or specificauthorization.
• Transactions are recorded as necessary (a) to permit preparation of financial statements inconformity with generally accepted accounting principles or any other criteria applicableto such statements and (b) to maintain accountability for assets.
• Access to assets is permitted only in accordance with management’s authorization.
• The recorded accountability for assets is compared with the existing assets at reasonableintervals and appropriate action taken with respect to any differences.
Characteristics of reliable internal control systems are:
• Segregation of Responsibilities – This characteristic is sometimes referred to as “divisionof duties.” There should be segregation of the three (3) main duties associated withtransactions. These are:
a. Authorization to execute a transaction,b. Recording the transaction, andc. Custody of assets involved in the transaction.
• Authorization and Record Procedures – This characteristic refers to “a system ofauthorization and record procedures.” Such a system means that approved proceduresand methods should be employed by management’s accounting function.
• Sound Practices – This characteristic refers to “sound practices in the performance ofduties and functions.” Sound practices refers to the many and varied error-checkingroutines that may be performed in connecting with record keeping, including periodiccomparison of recorded amounts with existing assets and liabilities.
• Quality of Personnel – This characteristic is the most important and the most difficult toevaluate. This refers to the “competence of personnel.”
• Actual System Performance – Any system may be beautifully designed, but if thepersonnel do not operate the system as designed, then the system exists only on paper.
The Picayune School District shall prepare an annual financial statement, including the notes tothe financial statements, in accordance with generally accepted accounting principles by June 30of each fiscal year.
FINANCIAL REPORTS AND STATEMENTS DIB
The State Department of Audit is hereby authorized and empowered to post-audit and investigatethe financial affairs and all transactions involving the school funds of the county including theMississippi Adequate Education Program funds and supplementary district school funds, and tomake separate and special audits thereof, as now provided by Mississippi Code of 1972.
In addition to all audits and other employees now or hereafter provided by law, the State Auditoris hereby authorized and empowered to appoint and employ examiners in the Department ofAudit. Said examiners shall be authorized, empowered, and required to make such audits as maybe necessary to determine the correctness and accuracy of all reports made to the StateDepartment of Education or the State Educational Finance Commission by any school districtofficial concerning the number of educable students in any school district, the number of studentsenrolled in any school district, the number of students in average daily attendance in any school district, and the number of students being transported or entitled to transportation to any of thepublic schools of this State.
Each school district in the state shall have its financial records audited annually, at the end ofeach fiscal year, either by the State Auditor or by a certified public accountant approved by the
AUDITS DID
State Auditor, except that, beginning with audits of fiscal year 2010 activity, the State Auditorshall conduct the audit of each school district at least once every four (4) years. If financial andpersonnel resources are not made available to the State Auditor for the purpose of ensuring thatschool districts are audited by the State Auditor at least once every four (4) years then, beginningwith the audits of fiscal year 2010 activity, no certified public accountant shall be selected toperform the annual audit of a school district who has audited that district for three (3) or moreconsecutive years previously. Certified public accountants shall be selected in a mannerdetermined by the State Auditor. The school district shall have the responsibility to pay for saidaudit including the review performed by the State Auditor for audits performed by certifiedpublic accountants.
The State Auditor shall have the authority and responsibility to monitor, pre-audit or post-audit,conduct performance audits and reviews, investigate projects, entities, and their use of any fundsprovided to the state, any of its agencies or subdivision, or any nonprofit organization, from thefederal American Recovery and Reinvestment Act of 2009, and its successors. It shall be theduty and responsibility of the State Auditor to maintain an official Web site, and provide accessto the public copies of audits of state and local government entities receiving funds from theAmerican Recovery and Reinvestment Act and its successors, provided sufficient resources areavailable. The auditor shall have the authority to recover costs associated with monitoring,auditing and investigating such projects and funds within the limits of federal law from any suchentity who may receive such funds. In addition, the State Auditor shall have the authority tocontract with qualified public accounting firms to perform selected audits in this subsection, iffunds are made available for such contracts by the Legislature, the governmental entity coveredby this subsection, or by the federal government. All files, working papers, notes,correspondence and all other data compiled during the course of the audit shall be available,without cost, to the State Auditor for examination and abstracting during the normal businesshours of any business day.
LEGAL REFERENCE: Senate Bill No. 2923, 2009 Legislative Session09/SS02/R1309PSSection §31-7-13, Mississippi Code of 1972Section §7-7-211, Mississippi Code of 1972
The following Picayune School District Fixed Asset Accounting Policies will set forth thecriteria for defining, valuing and capitalizing fixed assets.
• Definitions of all major fixed asset classifications:
Land – This includes all land owned by the Picayune School District.
Buildings – This includes all buildings owned by the Picayune School District, such asschool buildings, administration building, athletic field houses, gymnasiums, and portableclassrooms.
Building Improvements – This only includes improvements which extend the life of thebuilding and does not include ordinary and necessary repairs.
Improvements Other Than Buildings – This includes athletic fields, lighting, bleachers,and other improvements that can not be directly associated with a particular building.
Mobile Equipment – This includes all school buses and Picayune School District-owned
FIXED ASSET ACCOUNTABILITY DIDA
automobiles, trucks and vans. This classification also includes all lawn maintenanceequipment, tractors, etc.
Furniture and Equipment – This includes all furniture and equipment contained in thebuildings of the Picayune School District that meet the asset capitalization requirementsof the Picayune School District.
Leased Property Under Capital Leases – This includes all fixed assets that are beingacquired under a lease/purchase arrangement.
Construction in Progress - This includes all buildings and facilities that are currentlyunder construction.
• Valuation
Actual Historical CostEstimated Historical Cost – Standard Costing MethodEstimated Historical Cost – Normal Costing MethodDonated Items – Fair Market Value at Date of Donation
• Capitalization
The Picayune School District will capitalize all assets with useful life of greater than one(1) year and with a historical cost of at least One Thousand Dollars ($1,000.00) and allhighly walkable items. At a minimum, highly walkable items will include all televisions,(greater than $250.00), cellular telephones, two-way radio equipment, camera and cameraequipment (greater than $250.00), and computer and computer equipment (greater than$250.00). Also, regardless of the cost of the equipment highly walkable items includelawn maintenance equipment, chain saws, air compressors, welding machines, generators,and motorized vehicles.
• Depreciation
GAAP and GASB 34 now require depreciation of assets contained in the General FixedAssets Account Group. The Picayune School District will depreciate its assets inaccordance with the rules established by GASB 34.
• Interest Capitalization
Since capitalization of interest expense is not required for general fixed assets, thePicayune School District will choose not to capitalize interest.
• Infrastructure
Infrastructure consists of assets that are immovable and of value only to the Picayune
School District (e.g., a street not attached to or part of a building). Since governmentalaccounting principles do not require the capitalization of infrastructure, the PicayuneSchool District will choose not to capitalize infrastructures.
• Physical Inventory
Equipment shall be defined as all items (purchased, government excess, or donated) witha unit cost of One Thousand Dollars ($1,000.00) or more plus highly walkables asdefined by the State.
The Principal/Director will forward the invoice for payment.
The Fixed Asset Manager will barcode and prepare the inventory sheet which mustcontain a barcode number, serial number, and location at a minimum.
The Finance Director will prepare a listing of all fixed assets by cost center.
The Fixed Asset Manager will take a physical inventory of all property twice a year, ormore often if needed. The listing will be annotated as to the condition and location of theproperty.
The Finance Director will maintain the fixed asset computer system by adding or deletingproperty as new property is bought and old is sold or declared obsolete.
8. Loss, Damage or Destruction
The Fixed Asset Manager will be immediately notified of all cases of loss, damage, ordestruction of equipment; and will make a report to the Finance Director. A policeinvestigation must be made on every case of loss, damage, or destruction of property. Acopy of the police report must be forwarded to Central Office within five (5) workingdays after the discovery of the loss, damage or destruction. The Board of Trustees mustapprove such loss for removal of items from the fixed asset system.
9. Purchase of Property/Equipment
All items of equipment costing One Thousand Dollars ($1,000.00) or more will beapproved by the Principal/Director and Finance Director.
If the total cost of leasing equipment over a three (3) year period or less exceeds thepurchase price, the equipment should be purchased.
Only items of equipment necessary for the completion of a program will be purchased forthat program.
10. General Ledger
All equipment will be recorded in the general ledger by the Finance Director. Any entrymust be made whenever property is acquired or disposed.
11. Custody Receipts
The Principal/Director will insure that a custody inventory receipt is prepared and on filefor all equipment prior to removal from the premises for which equipment was purchasedor first assigned.
12. Vehicle Logs
Vehicle logs will be maintained for all motor vehicles owned by the Picayune SchoolDistrict.
Board Approved (Revised) January 27, 2015
The Early Head Start Program of the Picayune School District shall comply with all the policiesof the Picayune School District unless otherwise noted as an exception. All the areas of fiscaland administrative management as required by the United States Department of Health andHuman Services are covered in the Picayune School District’s other policies except thosecovered in this policy.
I. INTERAGENCY AGREEMENTS
The Board of Trustees of the Picayune School District will review and approve all theprogram grants, agreements, and amendments for its Early Head Start received from the U. S. Department of Health and Human Services.
II. SERVICES
The Picayune School District offers a complete list of services to the students, theirparents, and the employees as covered in its policies. All of these services shall be
EARLY HEAD START DIE
offered to the children, the parents, and the employees of the Early Head Start Program. In addition to direct services, the district offers non-federal contributions or in-kindservices as discussed below.
III. NON-FEDERAL CONTRIBUTIONS
In-Kind
1. The Early Head Start Program Manager will be responsible for the in-kindcontributions required of the program.
2. The in-kind contributions will be received and recorded on a monthly basis by theFamily Community Partnership and the Finance Director.
3. The employee who receives the contribution will prepare the voucher for the non-federal share requirements, have the donor sign the form, and sign and date theform.
4. The vouchers for non-federal share will be approved by the Program Manager andcopies sent to the Accounting Department for record keeping.
5. The Finance Director of Designee will complete and verify the in-kind forms andenter the transactions in the accounting records.
6. The agency can use as a basis the lowest paid teacher assistant plus the fringebenefit rate. Higher rates may be charged when a volunteer provides professionalservices if the documentation customary rates received for such services arereasonable.
Cash
7. Receipts will be issued for all cash donations and contributions.8. These funds will be accounted for in a separate account9. Earmarked contributions will be used only for the purpose so designated.
District
10. The Picayune School District shall provide several in-kind services covering butnot limited to the following areas. The allocation of these services will be basedon the percentage of the Early Head Start revenues to the District’s total revenues. These include:
11. Central Office Administration12. Accounting13. Special Education14. Technology15. Custodial16. Maintenance
24. Financial budgets will be prepared by the combination of parents, managers,Policy Council, Board, Program Director, Executive Director and FinanceDirector
25. Budgets will be submitted to the Finance Director for review prior to submission.26. The Finance Director will review adequacy then meet with Program Director and
Executive Director to discuss for final approval and submission.27. The Finance Director will insure that budgets are on file for all grants and
contracts. Original copies will be maintained in the central administrative file.28. Changes, or requested changes to budgets, will be approved by the Executive
Director.29. Both Board of Trustees and Policy Council approval of budgets and amendments
are required.
V. REPORTS
Monthly – Cost Category
Monthly financial reports with budgets by cost category will be prepared by the FinanceDirector, Program Director, and Executive Director.
Reports to Funding Sources
29. The Finance Director will prepare quarterly reports for submission to the U. S.Department of Health and Human Services.
30. The Executive Director will review and approve all reports to the funding source.31. The Executive Director or Finance Director will sign and date all reports to the
funding source.32. It will be the responsibility of the Finance Director to insure that all reports are
submitted on a timely basis.33. The Finance Director will prepare and maintain on a current basis a listing of all
reports and due dates as follows:
1. SF24 - Next Year’s Program Application (Fiscal year begins July 1st): Present to Policy Council in prior December. Due to U.S.Department of Health and Human Services by March 31st.
2. SF269 - Quarterly Financial Status Report: Due 30 days after thequarter end.
3. SF269 - Financial Status Report: Due 90 days (September 30) afterfiscal year ends June 30. A provisional 60-day (November 30)extension is available.
4. PSC272 - Federal Cash Transaction Report (Quarterly): To reportand request (PMS) cash draw downs. Due 45 days after the quarterends.
5. Picayune School District Financial Audit (Annually): Due nine (9)months (March 31) after District’s June 30th year-end.
6. Financial Presentations and Training to:
• Policy Council - Quarterly• Board of Trustees - Semi-Annually
7. Federal Compliance Review:
• Every three (3) years• Required for continued funding
VI. INDIRECT COSTS/COST ALLOCATION
Since the Picayune School District will provide its services as non-federal contributions(in-kind), the program will not have any indirect costs or cost allocations.
VII. OTHER
Minutes of Meeting
• Adequate minutes of all meetings of the Board of Trustees of the Picayune SchoolDistrict will be prepared by the Superintendent’s Executive Assistant.
• The Executive Director will receive and review a copy of minutes of theExecutive Committee, the Board of Trustees, and other appropriate committees,such as the Policy Council.
• The Executive Director will note all items in the minutes relating to finance andtake appropriate action as required.
Program Income
• Program related cash income will be used to reduce the total cost of the programgenerating the income.
• Interest income on federal funds will be returned to the Treasurer of the UnitedStates.
• Donations of cash and non-program related income will be separately accountedfor in a separate non-federal account.
Accounts Receivable
• Documentation will be maintained for accounts receivable.• Accounts receivable will be recorded in the books and collected on a timely basis.
Financial Procedures
• The Finance Director will prepare and maintain on a current basis a procedureflow chart summarizing all financial activities.
• Financial procedures will be reviewed annually by the Finance Director. Changesto the financial procedure manual will be approved by the Policy Council andBoard of Directors and reviewed with the Executive Director prior toimplementation.
Confirmation Letters
• A letter of memorandum confirming telephone conversations should be written inall cases where telephone approval is received from a funding source.
Form 990
• As the Early Head Start Program is a sub-entity (department) of the PicayuneSchool District, it will not have to file Form 990 (Exempt Organization). ThePicayune School District will file all its required governmental forms and reports.
• The Finance Director will review and approve all required School District formsand reports.
Taxes on State Retirement Pension Plan
• When an employee terminates employment and receives a full payment of allhis/her funds in the State’s pension plan, they will receive a form from the State atthe end of that calendar year depicting the amounts that are taxable.
• If the employee retires and draws the pension monthly, the employee will receivea W-2 from the State depicting the payments that are taxable.
• The employee contribution is not taxable. However, the employer contributionand the interest earned is taxable income.
The Board of Trustees has the power, authority and duty to make orders directed to theSuperintendent for the issuance of pay certificates for lawful purposes on any available funds ofthe Picayune School District and to have full control of the receipt, distribution, allotment anddisbursement of all funds provided for the support and operation of the schools of the PicayuneSchool District whether such funds be derived from State appropriations, local Ad Valorem taxcollections, or otherwise. Section §37-7-301 (o) (1993)
The Mississippi Adequate Education Program allotments of the Picayune School District and thefunds derived from the supplemental Picayune School District tax levies authorized by law shallbe used exclusively for the support, maintenance, and operation of the schools in the mannerprovided by law for the fiscal years for which such funds were appropriated, collected, orotherwise made available, and no part of funds or allotments shall be used in paying anyexpenses incurred during the fiscal year after the close of such fiscal year from amountsremaining on hand at the end of such fiscal year, provided that such expenses were properlypayable from such amounts. Moreover, this shall not be construed to prohibit the payment of the
EXPENDITURE OF FUNDS/FEDERAL FUNDS DJ
salaries of Superintendents, administrative superintendents, principals and teachers and otherPicayune School District employees whose salaries are payable in twelve (12) monthly or twenty-four (24) bi-monthly installments after the close of the fiscal year from amounts on hand for suchpurpose at the end of the fiscal year. Section §37-61-3 (1991)
It shall be the duty of the Superintendents, administrative superintendents, and the school boardsof all school districts, to limit the expenditure of school funds during the fiscal year to theamounts set forth in the respective school budgets as reflected in the Board of Trustees’ minutesor an addendum to board minutes, unless such school fund budgets be revised in the mannerprovided in this chapter. It shall be unlawful for any school district to budget expenditures froma fund in excess of the resources available within that fund for such expenditures. Furthermore,it shall be unlawful for any contract to be entered into or any obligation incurred or expendituremade in excess of the budgeted funds available for such purposes for such fiscal year. Anymember of the Board of Trustees, Superintendent, or other school official, who shall enter intoany contract, incur any obligation, or make any expenditure in excess of the amount available forthat purposes for the fiscal year shall be personally liable (a) in the event of any reduction inMississippi Adequate Education Program payments by action of the Governor acting through theDepartment of Finance and Administration, or (b) for claims, damages, awards or judgments, onaccount of any wrongful or tortious act or omission or breach of implied term or condition of anywarranty or contract; provided, however, that the foregoing immunity, provisions shall not be adefense in cases of fraud, criminal action or an intentional breach of fiduciary obligationsimposed by statute. Section §37-61-19 (1993)
The Board of Trustees has the power, authority, and duty to expend local school activity funds, orother available Picayune School District funds, other than Mississippi Adequate EducationProgram funds, for the purposes prescribed under this paragraph. “Activity funds” shall mean allfunds received by school officials in all school districts paid or collected to participate in anyschool activity, such activity being part of the school program and partially financed with publicfunds or supplemented by public funds. The term “activity funds” shall not include any fundsraised and/or expended by any organization unless co-mingled in a bank account with existingactivity funds, regardless of whether the funds were raised by school employees or received byschool employees during school hours or using school facilities, and regardless of whether aschool employee exercises influence over the expenditure or disposition of such funds. Organizations shall not be required to make any payment to any school for the use of any schoolfacility if, in the discretion of the local school governing board, the organization’s function shallbe deemed to be beneficial to the official or extracurricular programs of the school. For thepurpose of this provision, the term “organization” shall not include any organization subject tothe control of the local school governing board. Activity funds may only be expended for anynecessary expenses or travel costs, including advances, incurred by students and their chaperonsin attending any in-state or out-of-state school-related programs, conventions or seminars and/orany commodities, equipment, travel expenses, purchased services or school supplies which thelocal school governing board, in their discretion, shall deem beneficial to the official orextracurricular programs of the district, including items which may subsequently become thepersonal property of individuals, including yearbooks, athletic apparel, book covers and trophies. Activity funds may be used to pay travel expenses of school district personnel. The local school
governing board shall be authorized and empowered to promulgate rules and regulationsspecifically designating for what purposes school activity funds may be expended. The localschool governing board shall provide (a) that such school activity funds shall be maintained andexpended by the principal of the school generating the funds in individual bank accounts, or (b)that such school activity funds shall be maintained and expended by the Superintendent in acentral depository approved by the Board of Trustees. The local school governing board shallprovide that such school activity funds be audited as part of the annual audit required in Section§37-9-18. The State Auditor shall prescribe a uniform system of accounting and financialreporting for all school activity fund transactions. Section §37-7-301 (s) (1996)
Expenditures of Funds
The purchasing agents of the Picayune School District are authorized to release payment warrantsto vendors prior to approval by the Board of Trustees when it is in the best interest of thePicayune School District and/or economically feasible. The circumstances for early release ofwarrants shall be limited to the following: (a) payments to athletic officials to comply with therules and regulations of the Mississippi High School Athletic Association, (b) travel-relatedexpenditures such as payment of hotel bills to avoid sales tax and travel reimbursements foremployees performing school business, (c) petty cash reimbursements, (d) postage advance, (e)field trip related expenditures when a purchase order will not be accepted by the vendor, (f)contracted expenditures where a signed contract is in place, and (g) refund of charges to students. All payments will be included for approval on the docket for the next regularly scheduledmeeting of the Board of Trustees.
EXPENDITURES OF FEDERAL FUNDS
State and local expenditures for the Exceptional Education program supported by P.L. 94-142funds will be comparable to expenditures for any similar program that may be supported fromother sources. Records are maintained which show that this requirement is met.
Federal funds expended from the project will be used to pay only the excess costs directlyattributable to the education of children with disabilities and will be used to supplement local andstate funds; furthermore, P.L. 94-142 funds will not be used to supplant State and local funds forany particular cost. If State/local funds are available to pay for the education of non-disabledchildren ages birth through five, funds equal to the amount expended per non-disabled child willbe made available to children with disabilities in that age range before Pre-School Grant fundsare used. If no State/local funds are available for a particular age group, Pre-School Grant fundsmay be used to pay for all of the costs directly attributable to the education of these children.
The monitoring system for P.L. 94-142, Part B funds, must undergo the same Procedures as allPicayune School District funds, such as approval by the Board of Trustees for additions to anddeletions and signed purchase orders.
EHA Part B Project fund requests, amendments and reimbursements are submitted to the StateDepartment of Education for approval.
The Board of Trustees shall authorize specified district employees to sign checks on all PicayuneSchool District accounts. If mechanical check signers are utilized, written policies andprocedures shall be developed to safeguard such mechanical check signers.
I. Cash Receipts
1. All cash and checks received by any school, department, program, or CentralOffice will be recorded by the cash receipts secretary and remitted daily to theAccounting Department which will record the receipts in the cash receipt book.
2. All deposit slips will be completed in duplicate by the Cash Receipts Clerk. Thedeposit slip will have a receipt form which will include the source, accountnumber, and amount of each receipt.
3. Documentation for all receipts (copy of check, letter, etc.) will be attached to the
4. All deposits will be made daily by the Cash Receipts Clerk.
5. The validated deposit receipt will be attached to the duplicate deposit slip.
6. All receipts will be deposited intact.
7. All checks will be endorsed as follows:
“For Deposit Only” Picayune School District
8. Monthly, an employee other than the Cash Receipts Clerk will compare the bankstatement deposits with the cash receipts to verify that all cash receipts for theprevious month were properly and timely deposited to the appropriate bankaccount. The verification will be accomplished by tracing actual receipt to properentry on journal.
II. Cash Disbursements
Check Authorizations
1. A purchase order will be prepared to seek authorization for every purchaserequest.
2. The purchase order and all supporting documentation will have the approval ofthe Principal/Director and the Finance Director.
3. All original invoices will be signed by the Principal/Director and forwarded to theAccounts Payable Clerk for matching with a purchase order for signing by the FinanceDirector.
Checks
1. The Accounts Payable Clerk will be responsible for all blank checks which will bekept under lock and key. The District uses a machine “signature” stamp for allAccounts Payable checks.
2. The Accounts Payable Clerk will stamp all invoices “Paid.”
3. Check vouchers will be distributed as follows:
a. Original - Mailed to payeeb. Duplicate - Filed alphabetically by batch with all supporting
documentation.
4. If documentation is not attached to the check duplicate, then the check duplicatewill be clearly referenced to where the documentation can be located.
5. The Accounts Payable Clerk will record the checks in the cash disbursementsjournal.
6. Voided/spoiled checks will have “Void” or “Spoiled” boldly written in ink acrossthe face of the check and the signature portion of the check will be perforated orcut out.
7. All checks outstanding more than six (6) months will be presented to the Board ofTrustees for approval to write off the books and a stop payment issued to thebank.
8. In no event will:
A. Checks be prepared unless these procedures are followed.B. Checks be prepared from monthly statements or copies of invoices.C. Checks be used other than in chronological order.D. Checks be made out to “cash,” “bearer,” “petty cash,” etc.E. Checks be prepared on verbal authorization.
Bank’s Reconciliations
1. Bank statements will be received directly, unopened, by an Accounting Clerkother than the person assigned to specific fund involved.
2. Paid checks will be examined for date, name, cancellation, and endorsements.
3. The person reconciling the bank statement will sign the completed reconciliationfor the record.
4. The reconciled bank balance will be compared to the Cash account in the generalledger and approved by the Finance Director.
5. The Finance Director will be notified by the Accounting Supervisor of all checksoutstanding over six months, and will take appropriate action on these checks.
PETTY CASH
The petty cash fund at each school/department will be established by writing a check on theDistrict Maintenance Fund. Each principal/department director may request a petty cash fund upto One Hundred Dollars ($100.00). The check is issued at the beginning of the school year uponreceipt of a claim voucher by the principal/department director responsible for the fund. Eachprincipal/department director will be personally responsible for the amount of petty cash inhis/her custody. All petty cash with receipts must be kept in a locked vault or fireproof cabinet inthe school/department building.
Expenditures from petty cash may include postage and small emergency incidental purchases. Any single expenditure involving more than Twenty Five Dollars ($25.00) shall be considered inexcess of petty cash. Single expenditures over Twenty Five Dollars ($25.00) will require priorauthorization by a purchase order. Large postage requests can be requested in advance through aclaim voucher.
PETTY CASH ACCOUNTS DJB
Petty cash accounts will be manually expensed to the proper account when the account isreplenished. Petty cash accounts must be presented for replenishment at the end of each quarter. (9/30, 12/31, 3/31, & 6/30) All petty cash accounts will be closed before the June 30 fiscal yearends.
Disbursements from the petty cash fund will be supported by receipts. This documentation shallbe original (no copies) and shall remain with the petty cash fund until the fund is replenished. Replenishment takes place by presenting an itemized list of all disbursements with attachedreceipts. A check is written for the approved amount of the listing and is made payable to theprincipal/director responsible for the petty cash fund.
CASH RECEIPTS PROCEDURE:
A three (3) part receipt book will be used for all cash collections. The first copy of the receipt(white copy) is to be completed by the secretary/bookkeeper and signed by the teacher/personwho originally collected the money. The secretary/bookkeeper will count the money andcomplete the receipt stating the exact amount of the money submitted by the school/department. The second copy of the receipt (yellow copy) will be attached to the back of the Cash SummarySheet and submitted to the Central Office daily. The third copy of the receipt (pink copy) is toremain in the receipt book.
One receipt book will be used for all receipts.
Receipts are numbered and must be used sequentially. If a mistake is made on a receipt, thereceipt must be voided and left in the receipt book. All receipts, including voided receipts, are to
be entered on the Cash Summary Sheet and the yellow copy stapled to the back of the CashSummary Sheet that is submitted to the Central Office daily.
Cash Summary Sheets are to be submitted daily to the Central Office no later than 2:30 P.M. ACash Summary Sheet must accompany all deposits. All receipts are to be listed on the CashSummary Sheet in number sequence and the second copy of the receipt (yellow copy) attached tothe back.
A key locked money bag will be provided each school site/department. If in an extremeemergency a deposit can not be made in the Central Office, the key locked money bag is to beplaced in the night deposit box at the bank. Central Office will collect the key locked money bagthe following day, count the money, and return the key locked money bag to the schoolsite/department through inter-office mail.
Deductions authorized or required by law are made each month. Other deductions will be madewhen requested by the employee for those items approved by the Board of Trustees. All requestsfor deductions by employees shall be in writing to the payroll services office.
Before the first payment is made for each contract period, all personnel shall have of file in thepersonnel office the following:
A. All forms needed by the payroll services office,B. Membership application to the Public Employees’ Retirement System of
Mississippi,C. a Picture I.D. such as a State Driver’s License, andD. Social Security card (photostat),
In addition to the above, licensured employees must also have on file:
A. A signed contract for current school year,
PROCEDURES FOR PAYMENT DJC/GBAI
B. Complete application together with reference evaluations,C. Valid/appropriate teaching license or notification of approval from the Office of
Teacher Licensure, andD. Verification of prior teaching experience (if applicable).
*Payday for licensed employees is the last working day of each month. Paydaysfor nonlicensured employees may be semimonthly.
In accordance with State law, the first payment of said contract for teachers shall be on the lastday of the month in which students first begin attendance.
PAYROLL PROCEDURE
The salaries of the Superintendent, principals, certified employees, and classified employees ofthe Picayune School District shall be paid by electronic transfer issued by the Superintendent. Such pay may be issued without additional authorization of the Board of Trustees where theamount of salary has been fixed and a contract entered into as provided by law. All electronicpay transfers shall be preserved by him/her as part of the official record of his/her office for thesame time and in the same manner as other records are preserved. Except as herein provided, thesaid warrants shall be governed in all respects by the same laws regulating the issuance of otherwarrants for other purposes. All pay certificates and warrants issued shall show the gross amount of the salary and all authorized deductions therefrom for income taxes, Social Security,retirement contributions and other lawful purposes.
Time Lines/Deadlines
Annually, the Director of Finance will publish a list of deadlines for managers and employees tosubmit time sheets, etc. The date listed as the deadline is the date it must be received in thepayroll department at the Central Office. Pay requests received after the deadline will be paid atthe next regular pay period.
Preparation and Distribution of Direct Deposit Statements
*The preparation of payroll will occur at the district office. At no time will payroll be allowed tobe taken from district premises.
*Direct Deposit Statements are to be kept locked with access only to employees authorized bythe Director of Finance.
*Direct Deposit Statements will be distributed by the payroll department. No employee isallowed to take their Direct Deposit Statement until the payroll department officially distributesthe Direct Deposit Statements.
*Each Principal/Director or his/her designee must sign a control sheet acknowledging receipt ofDirect Deposit Statements for his/her school/department. Each principal/director must have analternate person’s name in the Central Office who is authorized to pick up Direct DepositStatements in the event the principal/director cannot pick up the Direct Deposit Statements.
Confidentially
All payroll records are confidential and must not be viewed or discussed with anyone. (Thisincludes: time sheets, payroll checks, garnishments, overtime, benefits, etc.)
Any violations of this policy must be reported to the Director of Finance and/or theSuperintendent. Violations of this policy will result in disciplinary action.
LEGAL REFERENCE: Senate Bill #2090 (Regular Session 2014)
The amount of the salary to be paid any appointed Superintendent, principal, or licensedemployee shall be fixed by the Board of Trustees, provided that the requirements of Chapter 19of this title are met as to the Superintendents, principals, and licensed employees paid in whole orin part from Mississippi Adequate Education Program funds. In employing suchSuperintendents, principals, and licensed employees and in fixing their salaries, the Board ofTrustees shall take into consideration the character, professional training, experience, executiveability, and teaching capacity of the licensed employee, Superintendent, or principal. It is intentof the Legislature that whenever the salary of the Superintendent is set by the Board of Trustees,the Board of Trustees shall take into consideration the amount of money that the Picayune SchoolDistrict spends per pupil, and shall attempt to insure that the administrative cost of the PicayuneSchool District and the amount of the salary of the Superintendent are not excessive incomparison to the per pupil expenditure of the Picayune School District. Section §37-9-37(1997)
All school districts shall process a single monthly payroll for licensed employees with electronic
PAYDAY SCHEDULE DJCA
settlement of payroll checks secured through direct deposit of net pay. The Picayune SchoolDistrict may process a single monthly or a semimonthly payroll for non-licensed employees withelectronic settlement of payroll checks secured through direct deposit of net pay.
Salary or wages paid to any employee of any school shall be paid on a basis as determined by thelocal school board of each school district consistent with the provisions of Section §37-157-103(1), except for December, when wages shall be paid on the last working day. If the contract is based on a period of months in excess of the number of months for which theschool is to be operated, the first such payment shall be made on the last regular school day of thecalendar month in which the school opens and the remaining payments shall be made on the lastregular school day of each calendar month thereafter for the number of months provided by thecontract; provided, however, if the last scholastic month ends during the calendar month inmonths when school is not in session payments shall be made on what would have been the lastregular school day of the month if school were in session.
An appointed Superintendent, principal, licensed or non-licensed employee who completes theentire scholastic year shall be entitled to payment for the full number of monthly paymentsprovided by the contract without regard to his activity at the time when his services are notrequired by the school. If an appointed Superintendent, principal, licensed or non-instructionalemployee is released during the school term by agreement between the Board of Trustees andsuch Superintendent, principal, licensed or non-instructional employee, then suchSuperintendent, principal, licensed or non-instructional employee shall be entitled to suchproportion of the annual salary as the time which he shall have taught shall bear to the totalschool term, and any balance which may be due him shall be paid at such time as the Board ofTrustees may determine, but not later than the close of the then scholastic year.
LEGAL REFERENCE: Section §37-9-37 (1997)Section §37-9-39 (1997), As AmendedSection §37-151-103, As AmendedSenate Bill No. 2761, 2012 Regular SessionSenate Bill No. 2138, 2013 Regular SessionSenate Bill No.(Regular Session 2014)
CROSS REFERENCE: Board Policy DJC – PROCEDURES FOR PAYMENT
The Superintendent shall deduct and withhold from the wages of all employees:
• the amount of federal income tax required by federal law; 26 USCA 3401-3402,
• the amount of Social Security tax required by federal law; 26 USCA 3101-3102; Section§25-11-3, et seq.,
• the amount of contributions to PERS §25-11-123 (f) (1994), and
• State income tax.
It shall be unlawful for the Superintendent to deduct or permit to be deducted from the salary of anySuperintendent, principal, or licensed employee any dues, fines, or penalties payable or alleged to bepayable because of the membership of such Superintendent, principal, or licensed employee in anyorganization or association. However, dues or premiums in health associations or corporations andtax sheltered annuity deductions authorized by the United States Internal Revenue Code may bededucted upon written authorization from the superintendent, principal, or licensed employee
SALARY DEDUCTIONS/REDUCTIONS DJCB
involved. Any Superintendent who shall make any such deduction or permit such deduction to bemade, except those herein provided, shall be guilty of a misdemeanor and upon conviction shall bepunished by a fine of not more than Twenty-Five Dollars ($25.00) for each such deduction. Section§37-9-49 (1987)
Notwithstanding any other benefit plan offered to any eligible employee of a State agency or localgovernmental entity, all State agencies shall, and any local governmental entity may contract for andadopt a benefit plan which meets the requirements of a cafeteria plan as defined in Section 125 etseq. of the Internal Revenue Code of 1986, and regulations thereunder, for the benefit of eligibleemployees and their dependents. Provided, however, that the maximum benefit available under ahealth flexible spending account shall be Five Thousand Dollars ($5,000.00) per participatingemployee per plan year, unless federal Internal Revenue Service regulations allow that the availablebenefit at any point in time may be limited by the premium paid as of that point in time. It is furtherprovided that any State agency or local governmental entity may contract for insurance to cover itspotential for loss under a health flexible spending account. Section §25-17-3 (1991)
Any regular full-time employee of the Picayune School District is eligible to participate in anapproved tax-sheltered annuity or voluntary insurance program.
There will be one (1) period each year for persons applying for payroll deductions for thesepurposes; that period will be September 1 - 30.
A minimum of five (5) employees must participate in a tax-sheltered annuity or voluntary insuranceprogram in order to qualify for payroll deductions.
A tax-sheltered annuity contract cannot be surrendered to anyone else, other than to a beneficiaryafter death.
Employee requests for termination of tax-sheltered annuity and other voluntary insurance programsmust be made in writing to the payroll office.
Tax-sheltered annuities and voluntary insurance programs have been approved for employeeparticipation through payroll deduction. Information about these plans is available to all employees.
TAX-SHELTERED ANNUITY PROGRAMS DJCBE
The Board of Trustees does not endorse in any manner either the representatives of the companiesor the programs themselves.
Each school year insurance companies will provide the business office with a sufficient supply ofbrochures covering tax-sheltered annuities and voluntary insurance programs. The brochures willbe distributed to school employees by the business office. The materials should contain names,addresses, and telephone numbers of agents.
Insurance companies will not be permitted to visit schools for purposes of solicitation. Interestedemployees will deal with insurance agents outside the school premises.
Each employee of the Picayune School District is expected to attend to his/her own personalbusiness affairs. It shall be the responsibility of the employee to notify, in writing, the chief fiscalofficer of the Picayune School District immediately upon receipt of notification of garnishment. The employee is then expected to secure a release before the next paycheck is issued. Failure to doso will result in such garnishments or levies being attached to the release for same and placed in thatemployee’s personnel file.
GARNISHMENT OF LEVY DJCBF/GALC
The Board of Trustees and the administration recognize that professional personnel frequently haveopportunities to participate in worthwhile educational meetings of much value to the PicayuneSchool District or to make out-of-town trips on required school business.
Participation in and reimbursement for expenses connected with such activities/meetings shall beunder the following conditions:
1. Under normal circumstances all requests to attend professional meetings shall be submittedin writing through the principal or immediate supervisor to the Superintendent for approvalno later than ten (10) school days prior to the meeting/activity.
2. Meal reimbursement will not be allowed for trips that do not require an overnight stay.
3. Other reimbursements shall be in amounts not to exceed those prescribed by the State.
4. Payment for expenses will be made upon submission of an approved travel voucher asprovided by the Picayune School District; receipts for expenses must accompany vouchers.
EXPENSE REIMBURSEMENTS – PROFESSIONAL DJD/CGPDACTIVITIES, MEETINGS
(Except for meals – they are paid on a daily per diem rate.)
5. Because of budget limitations or other reasons, personnel on occasion may be approved fortravel at their own partial or full expense.
It is expressly provided that any such employee traveling beyond the confines of the State onbusiness for and in behalf of the Picayune School District may, strictly at the discretion of theSuperintendent, receive in advance from Picayune School District funds for the purpose of suchtravel expense, a sum to be specified by the Superintendent.
1. Activity funds may be used to pay the travel expenses of Picayune School District personnel. Activity funds may be expended for any necessary expenses or travel costs, includingadvances incurred by students and their chaperons in attending any in-state school-relatedprograms, conventions or seminars. The Picayune School District shall not advance travelexpenses for in-state travel except for students and their chaperons without approval by theBoard of Trustees.
Administrative personnel and others who have first been authorized by the Superintendent to travelin the performance of their duties shall be advanced or reimbursed their expenses by the PicayuneSchool District for such travel as indicated below:
1. for each mile actually and necessarily traveled in the employee’s automobile or other privatemotor vehicle the mileage reimbursement rate allowable to federal employees. Employeesare expected by the Board of Trustees to carpool where two (2) or more employees aretraveling to the same destination. In such an event only one (1) travel expense allowance atthe authorized rate per mile shall be allowed for any one (1) trip;
2. when such travel is done by means of a public carrier or other means not involving a privatemotor vehicle, the employee shall receive as travel expense the actual fare or other expensesincurred in such travel;
3. employees shall be reimbursed for other actual expenses such as lodging and other necessaryexpenses incurred in the course of such travel, subject to limitations for intrastate andinterstate official travel by the State Department of Finance and Administration rules andregulations adopted by the State Department of Audit. Taxes for lodging will not bereimbursed when traveling in state.
Reimbursements are as follows:
1. actual single standard room rate for accommodations,
2. meal reimbursements are based on the Mississippi Department of Education Travel Policy ineffect at the time of expenditure. (Out-of-State travel is paid in accordance with FederalRegister for Early Head Start.)
3. the mileage reimbursement rate allowable to federal employees for each mile driven in aprivate vehicle,
4. actual registration fees,
5. actual fare or other expenses incurred in travel by public carrier, and
The Superintendent shall comply with the rules and regulations of the State Department of Auditregarding itemized expense accounts upon return of the employees.
TRAVEL ADVANCES
1. The Superintendent ONLY is authorized to approve travel advances.
2. The Superintendent shall comply with all rules and regulations of the State Department ofAudit regarding travel advances.
3. All official travel must be pre-approved.
4. Persons receiving advances must be officers or employees of the Picayune School District orparents of Early Head Start students.
5. Travel advances will be authorized only for lodging reservations and public transportation, suchas airlines, trains, and buses. Advances for meals will be authorized in accordance with theMississippi Department of Education Travel Policy. (Out-of-State travel is paid in accordance withFederal Register for Early Head Start.)
6. Travel advances may not be used for personal expenses or for any purpose other than theactual expenses of the authorized travel.
7. Accounting for any travel advance must be made within five (5) working days after travelwas approved.
a. Any money not used for travel related expenses shall be repaid the Picayune SchoolDistrict at this time.
b. The travel reimbursement form shall be completed and submitted at this time for allmoney not refunded the Picayune School District.
Based on the official opinion (date July 30, 1999) of the State Attorney General’s Office regardingthe serving of refreshments/meals at meetings, the Picayune School District adopts the followingpolicy:
1. The Picayune School District Board of Trustees hereby determines that provision of meals isa necessary and reasonable expense of a Board of Trustees or business meeting when suchmeetings span the normal meal hour and breaking for a meal would be disruptive of themeeting agenda.
2. Coffee, soft drinks, breakfast, lunch, and/or dinner meals may be provided for participants inmeetings, seminars, workshops or similar events to avoid interruption of the school day ordisruption of the meeting agenda when provision of such items is reasonably related to thegoals or functions of the Picayune School District.
3. Expenditures for meals at athletic and other student recognition events are permissible underthe statute allowing for expenditure of activity funds for necessary expenses or travel costsincurred by students and their chaperons in attending any in-state or out-of-state school-related programs, conventions, or seminars and/or for any commodities, equipment, travelexpenses, purchased services or schools supplies which the Board of Trustees, in itsdiscretion, shall find beneficial to the official or extracurricular programs of the Picayune
REFRESHMENTS/MEALS AT MEETINGS DJDA
School District. (Note: This authority does not extend to use of public funds for teacherrecognition banquets.)
4. The Picayune School District, in order to achieve a particular goal or perform a particularfunction which has been imposed by legislative enactment, may lawfully purchase coffee,coffee supplies, soft drinks, other non-alcoholic beverages, and eatable items to beconsumed by participants in a meeting, seminar, workshop, or similar event provided theadministration makes the determination, consistent with the facts, that the activity isreasonably related and incident to said goal or function.
5. A sign-in sheet of attendees and an agenda should be submitted when submitting invoice forpayment.
Travel Approval
• All in-state travel must be approved in advance by the Superintendent.
• All out-of-state travel must be approved in advance by the Board of Trustees.
• The employee will complete the request for official travel. The request must be delivered tothe Superintendent in a timely fashion.
• The Principal/Director must first approve and sign the request for out-of-state travel.
• Disapproved requests will be returned to the employee and marked “disapproved.”
Travel Advance
• If a travel advance is requested and approved by the Superintendent, the Business Office willprepare the check and process the travel advance.
• Check vouchers will be distributed as follows:
TRAVEL DJDB
A. Original – Given to the travelerB. Copy 1 – Filed in Accounting in a travel advance file with the request
for authorization attached.
• Within five (5) work days after the trip, the employee will enter the appropriate informationon the travel expense report and turn it in to accounting.
• The Business Office will enter the check number and advance amount on the expensesreport and pay the employee any amount owed.
• If the advance exceeds the amount of the travel voucher, then the difference will beimmediately paid by the employee.
Travel Other
• Each employee involved in local travel will complete the milage on a daily basis. Therecords shall be signed, approved and paid on a monthly basis.
• Mileage to and from residence will not be paid by the Picayune School District.
• Employees who are on out-of-town travel will receive a per diem allowance for meals andincidentals in accordance with the state rules and Federal Register for Early Head Startemployees.
• Reimbursement for miles will be based upon actual mileage and approved rates.
• Receipts must be attached for lodging and common carrier transportation.
• Incomplete or incorrect travel vouchers will be returned to the supervisor.
• The Accounts Payable Clerk will verify the travel voucher, ascertain if there are anyoutstanding travel advances and calculate the amount of the total travel reimbursement.
• All travel accounts must be settled by the employee at the time of resignation or termination.
• All travel made within the Picayune School District geographic area is considered localtravel.
All purchasing by the Picayune School District which will be paid for with public funds shall bemade pursuant to the purchasing laws of the State of Mississippi. Section §31-7-1 et seq.
It is the intention of the Board of Trustees to purchase competitively without prejudice and to seekmaximum educational value for each and every dollar expended.
The Board of Trustees shall insure that the Picayune School District shall maintain a list of suppliesand equipment, including quality specifications when applicable, regularly used in the PicayuneSchool District. The list shall be used by the Board of Trustees in obtaining competitive bids forsupplies or equipment to be purchased, and shall be available to any interested person. Section §37-39-5
In connection with the purchase of necessary supplies or equipment for regular school operations,the Board of Trustees may, in its discretion, designate as its purchasing agent or agents such schoolofficial or officials as deemed appropriate and may authorize such agent or agents to makepurchases of supplies and equipment subject to competitive bid requirements in Section §37-7-1 et
seq.
Supplies that are perishable or foods purchased for use in connection with the school lunch programshall be exempted from competitive bid requirements.
PURCHASING DJE
Purchases of items regularly used in connection with school operation shall not be made in smallquantities for the purpose of circumventing the law requiring competitive bids or quotations, butshall be purchased by contract whenever feasible.
The Board of Trustees hereby declares that it is essential to the efficient operation of the PicayuneSchool District that adequate supplies of goods and services continue to be available from privatesources; that the good name and credit of the Picayune School District may be promoted by timelyand responsible payment of just claims; and that fair compensation be awarded suppliers whenpayment of their claims are delayed without justification.
The Superintendent or administrative superintendent shall mail or otherwise deliver checks for thepayment of goods and services no later than forty-five (45) days after receipt of the invoice andreceipt, inspection, and approval of the goods or services; however in the event of a bona fidedispute, the Picayune School District shall pay only the amount not disputed.
If a warrant or check, as the case may be, in payment of an invoice is not mailed or otherwisedelivered within forty-five (45) days after receipt of the invoice and receipt, inspection, andapproval of the goods and services, the Picayune School District shall be liable to the vendor, inaddition to the amount of the invoice, for interest at a rate of one and one-half percent (1½ %) permonth or portion thereof on the unpaid balance from the expiration of such forty-five (45) dayperiod until such time as the warrant or check is mailed or otherwise delivered to the vendor.
In the event of a bona fide dispute as to an invoice, or any portion hereof, the dispute shall be settledwithin thirty (30) days after interest penalties could begin to be assessed, if it were not for thedispute.
If a warrant or check, as the case may be, in payment of an invoice, subject to a prior dispute, is notmailed or otherwise delivered within thirty (30) days after settlement of the dispute, the PicayuneSchool District shall be liable to the vendor, in addition to the amount of the invoice, for interest ata rate of one and one-half (1½%) per month or portion thereof of the unpaid balance from theexpiration of said thirty-day (30) period until such time as the warrant or check is mailed orotherwise delivered to the vendor.
The Picayune School District shall monthly notify the State Fiscal Management Board of thenumber and dollar amount of late payments made by the Picayune School District along with theamounts of interest paid and the specific steps being taken to reduce the incidence of late payments.
If the terms of the invoice provide a discount for payment in less than forty-five (45) days, thePicayune School District shall preferentially process it and use all diligence to obtain the savings bycompliance with the invoice terms, if it would be cost effective. Section §31-7-30 (2) (3) (1986)
PURCHASING 2000 UPDATES
THE 2000 LEGISLATIVE SESSION AMENDED MISSISSIPPI CODE SECTION §31-7-3THROUGH SECTION §31-7-13 AND §37-7-455 AS FOLLOWS:
• If the Board of Trustees determines that the fair market value of property to be disposed of is zero(0), and this finding is entered in the minutes of the Board of Trustees, then the property may bedisposed of as deemed appropriate.
• Construction is defined as the process of building, altering, improving, renovating, ordemolishing a public structure, building, or real property.
• Purchase is defined as buying, renting, leasing or otherwise acquiring.
• As it relates to lease purchase acquisitions, equipment is defined as equipment, furniture,and associated software and other applicable direct costs associated with the acquisition.
• The provision that allows governing authorities to disregard the State contract priceestablished for commodities for purchases of Five Hundred Dollars ($500.00) or less isdeleted.
• Agencies and governing authorities are no longer required to contract for fire insurance,automobile insurance, casualty insurance (other than workers’ compensation), and liabilityinsurance; but shall contract for rentals.
• No addendum to bid specifications may be issued within forty-eight (48) working hours ofthe time established for the receipt of bids unless such addendum also amends the bidopening to a date not less than five (5) working days after the date of the addendum.
• Agencies are no longer required to maintain a vendor file.
• The provision that an engineer or architect may write specifications for a governingauthority to require a specific item of equipment only from limited sources or vendors incompliance with federal procurement laws administered by the appropriate federal agencyhas been deleted.
• All best bid procedures for state agencies must be in compliance with regulations establishedby the Department of Finance and Administration.
• An agency or governing authority may purchase petroleum products in excess of FifteenHundred Dollars ($1,500.00) after having solicited and obtained at least two (2) competitivebids.
• The purchase of information technology products by governing authorities executed orapproved by the Mississippi Department of Information Technology Services, designated foruse by governing authorities, is exempt from bidding requirements.
• Term contracts in excess of twenty-four (24) months shall be subject to ratification orcancellation by governing authority boards taking office subsequent to the governingauthority board entering the contract.
• As determined by the Department of Finance and Administration for State agencies and bythe Board of Trustees for local school districts, bid proposals and contracts may includeprice adjustment clauses based on a nationally published industry-wide or nationallypublished and recognized cost index.
• State agencies and governing authorities are exempt from the fuel management systembidding procedure when contracting for these services under the terms of a State contractestablished by the Office of Purchasing Travel.
• A Board of Trustees may elect to sell by auction certain property not needed or used forschool purposes. The auction shall be advertised for two (2) consecutive weeks with thefirst publication to be made not less than fifteen (15) days before the auction andcompetitive bids are not required for sale.
• Items having no useful value to the school district may be destroyed or disposed of as theBoard of Trustees deems appropriate as long as no employee or school official derives anypersonal economic benefit from such disposal.
SALES TAX PAYMENT PROCEDURE FOR ITEMS PURCHASED FOR RESALE
For each and every item purchased by a school or department, regardless of price, that is to beresold to students and/or the public there shall be paid at the time of purchase full sales taxes (7%)to the vendor from whom the item is being purchased.
• The rule applies only to those items being resold, i.e., pencils, paper, books, shirts,calendars, candy, candles, etc. Those items consumed in the education process remain taxexempt.
• Tax is not to be added to the price of an item and collected at the time of resale. The priceof an item may be increased to recoup the tax paid.
• Each requisition, purchase order, and invoice for an item that is to be resold shall have “ForResale” written thereon.
• Orders for resale items and orders for supplies shall not be included on the same purchaseorder or requisition.
PURCHASE LAW POLICIES
It is the responsibility of the Board of Trustees and the Superintendent to assure that appropriatepolicies are in place and are being followed in matters related to purchasing. The following is anoutline of policy areas and sample policies of the Board of Trustees that relate to the purchasingfunction and which may be subject to review during a financial audit of the Picayune School
LEGAL ENVIRONMENTABA – AUTHORITYABB – BOARD POWERS AND DUTIESCEB – DUTIES OF SUPERINTENDENTDC – ANNUAL OPERATING BUDGET PREPARATION AND
PROCEDURESDFA – LOCAL TAX REVENUES
NOTE: In addition to the sample policies listed herein, please review the annualPurchase Law Update available from the Office of the State Auditory,Department of Technical Assistance.
“Purchasing Agent” shall mean Superintendent. Pursuant to the authority granted by Section §37-39-15, Mississippi Code 1972, As Amended, the Picayune School District Board of Trusteeshereby designates other individuals as “Purchasing Agents” subject to the limitations set forthbelow.
• In addition to the Superintendent, the Board of Trustees hereby designates the assistantsuperintendent and the finance director as “Purchasing Agents” with general authority tonegotiate for and purchase the commodities and services necessary for the operation of thePicayune School District, within the limits of budget categories and purchasing law.
• The Board of Trustees hereby designates the facilities coordinator as “Purchasing Agent”with the limited authority to negotiate for and purchase commodities and services for his/herspecific areas of responsibility within the limits of budget and purchasing law.
• The Board of Trustees hereby designates the school principals as “Purchasing Agents” withthe limited authority to negotiate for and purchase commodities and services necessary forthe operation of their schools with the activity funds for which they are responsible asdefined in Board Policy DK; subject to all purchasing laws.
The purchasing agent(s) of the Board of Trustees, before entering upon his/her official duties insuch capacity, shall furnish a good and sufficient surety bond in the penal sum of Fifty ThousandDollars ($50,000.00). §37-39-21 (1987)
A principal acting as purchasing agent must be bonded for total statutorily required coverage ofSeventy Five Thousand ($75,000.00). The positions of principal may be covered by blanket bond,but the position of purchasing agent requires individual bond. (Attorney General’s Opinion,Middleton)
The Board of Trustees hereby authorizes the purchasing agents named herein above to accept thelowest and best competitive written quotations on purchases which fall within the legal quotationrange amounts, exclusive of freight and shipping charges, without publishing or postingadvertisement for bids, provided at least two (2) competitive written quotes have been obtained. The purchasing agent or the purchase clerk, as the case may be, and not the governing authority,shall be liable for any penalties and/or damages as may be imposed by law for any act or omissionof the purchasing agent or purchase clerk constituting a violation of law in accepting any quotewithout approval by the governing authority.
The Board of Trustees does hereby authorize the purchasing agents named herein above toadvertise, receive and open competitive sealed bids in the manner provided by law for purchaseswhich require advertising as determined by the required legal bid amounts. The results of allcompetitive bid openings shall be tabulated and presented to the school board at its next regular orspecial meeting.
The term “competitive written bid” shall mean a bid submitted on a bid form furnished by thebuying agency or governing authority and signed by authorized personnel representing the vendor,or a bid submitted on a vendor’s letterhead or identifiable bid form and signed by authorizedpersonnel representing the vendor.
(1) Any governing authority accepting electronic bid submissions for procurements may charge the bidder a fee, or may require a fee to be paid to a third-party serviceprovider, for an electronic bid submission. The amount of the fee shall not exceed Fifty Dollars($50.00) per bid.
(2) Any governing authority using the reverse auction method of procurement may charge the winning bidder a fee, or require the winning bidder to pay a fee to a third-party service provider,for participation in a reverse auction. The amount of the fee shall not exceed four percent (4%) ofthe winning bid amount.
SECTION 2 .
Section 1 of this act shall be codified as a separate section within Chapter 7, Title 31, MississippiCode of 1972.
SECTION 3 .
This act shall take effect and be in force from and after its passage.
SECTION 1 . Applicability.
Except as otherwise provided by law, the provisions of this act shall apply to every procurement ofcommodities, supplies, equipment, construction, technology, personal and professional services,state agency purchased employee, state agency purchased employee benefits and state agencypurchased supplemental insurance and cafeteria plans that is solicited by any state agency by arequest for proposals or request for qualifications. The following provisions are intended to ensurethat the best practices for soliciting requests for proposals or requests for qualifications areimplemented. Any agency that defines the provisions of soliciting a request for proposals orrequest for qualifications in its rules or regulations shall implement the best practices specified inthis act.
Section 2 . Conditions for use.
(1) Competitive sealed bidding is the preferred method or procurement; however, if it is not
BIDS AND QUOTATIONS DJED
practicable and advantageous, a request for proposals or request for qualifications may be used. The terms “practicable” and “advantageous” are to be given ordinary dictionary meanings. Theterm “practicable” denotes what may be accomplished or put into practical application. “Advantageous” denotes a judgmental assessment of what is in the state’s best interest.
(2) The following factors shall be considered when determining advantageousness:(a) The need for flexibility;(b) The type of evaluations that will be needed after offers are received;(c) Whether the evaluation factors involve the relative abilities of offerers to perform,
including degrees of technical or professional experience or expertise;(d) Whether the type of need to be satisfied involves weighing artistic and aesthetic
values to the extent that price is a secondary consideration;(e) Whether the types of supplies, services or construction may require the use of
comparative judgmental evaluations to evaluate them adequately; and(f) Whether prior procurements indicate that a request for proposals may result in more
beneficial contracts for the state.
(3) The following factors shall be considered when determining practicability:
(a) Whether the contract needs to be a contract other than a fixed-price type contract;(b) Whether oral or written discussions may need to be conducted with offerers
concerning technical and price aspects of their proposals;(c) Whether offerers may need to be afforded the opportunity to revise their proposals,
including price;(d) Whether the award may need to be based upon a comparative evaluation of differing
price and contractual factors as well as quality factors that include technical andperformance capability and the content of the technical proposal; and
(e) Whether the primary consideration in determining award may not be price.
(4) If the chief procurement officer of an agency or his or her designee determines, in writing, that the use of competitive sealed bidding is either not practicable or not advantageous to the state,he or she will submit a detailed explanation of the reasons for that determination to the PublicProcurement Review Board. If the Public Procurement Review Board determines that competitivesealed bidding is either not practicable or not advantageous to the state, then a contract may beentered into for the procurement of commodities, supplies, equipment, construction, technology,personal and professional services, state agency purchased employee benefits or state agencysupplemental insurance and cafeteria plans by a request for proposals or request for qualifications. However, these procurements contracted for through a request for proposals or request forqualifications may not be combined or included in a contract with other procurements that arerequired to be procured through competitive sealed bidding so as to avoid the statutory obligationfor procurement through competitive sealed bidding. The board may modify or revoke itsdetermination at any time, and the determination should be reviewed for current applicability fromtime to time.
In addition to determining whether a request for proposals or request for qualificationswould be practicable and advantageous to the state, when making the decision to use a request for
proposals or request for qualifications, the chief procurement officer shall consider the followingfactors:
(a) Whether quality, availability or capability is overriding in relation to price inprocurements for research and development, technical supplies or services;
(b) Whether the initial installation needs to be evaluated together with latermaintenance and service capabilities and what priority should be given to theserequirements in the best interests of the state; and
(c) Whether the marketplace will respond better to a solicitation permitting not only arange of alternative proposals but evaluation and discussion of them before makingthe award.
SECTION 3. Content of the request for proposals or request for qualifications.
(1) The request for proposals or request for qualifications shall include the following:
(a) Instructions and information to offerers concerning the request for proposals orrequest for qualifications submission requirements, including the time and date setfor receipt of proposals or qualifications, the address of the office to whichproposals or qualifications are to be delivered, the maximum time for proposal orqualifications are to be delivered, the maximu9m time for proposal or qualificationacceptance by the state, the manner in which proposals or qualifications are to besubmitted, including any forms for that purpose and any other special information;
(b) The purchase description, evaluation factors, delivery or performance schedule andany inspection and acceptance requirements that are not included in the purchasedescription;
(c) The contract terms and conditions, including warranty and bonding or other securityrequirements, as applicable;
(d) A statement that discussions may be conducted with offerers who submit proposalsor qualifications determined to be reasonably susceptible of being selected for theaward, but that proposals or qualifications may be accepted without suchdiscussions; and
(e) A statement of when and how price should be submitted.
(2) The request for proposals or request for qualifications may incorporate documents by reference provided that the request for proposals or request to qualifications specifies where thosedocuments can be obtained.
(3) Proposal or qualification preparation time shall be set to provide offerers a reasonable timeto prepare their proposals or qualifications. A minimum of thirty (30) days shall be providedunless a shorter time is deemed necessary for a particular procurement as determined in writing bythe chief procurement officer of the requesting agency.
SECTION 4. Public notice.
(1) In addition to any method of public notice regarding the solicitation of requests forproposals
or requests for qualifications currently being used by state agencies, the chief procurement officershall also have posted on the Mississippi Transparency website and on the soliciting agency’swebsite, public notification of a pending procurement through request for proposals or request forqualifications. The notice shall include the following:
(a) The due date for responses;
(b) The name and phone number of the officer conducting the procurement; and(c) The means of obtaining the solicitation.
(2) The notice shall be posted at least thirty (30) days before the date that proposals or qualifications are to be submitted to the chief procurement officer.
(3) Each chief procurement officer may determine that other methods of public notification are best for that particular agency or that particular request for proposals or request for qualifications. If such a determination is made, the chief procurement officer may provide notice in an alternativemanner about the request for proposals or request for qualifications in addition to the methodsprovided for in this act.
(4) The Department of Finance and Administration (DFA) shall monitor agency websites and the Mississippi Transparency website to ensure that the agencies are posting required notice. DFAshall audit agencies and assess administrative penalties against any agency that is in violation ofthese provisions.
SECTION 5. Pre-proposal conferences.
(1) Pre-proposal conferences may be conducted to explain the procurement requirements. If achief procurement officer plans to hold such a conference, he or she shall prominently place thenotification in the request for proposals or request for qualifications solicitation. The notificationshall include the date, time and location of the conference. If the chief procurement officer decidesto hold a pre-proposal conference after the request for proposals or request for qualifications hasbeen sent out, then he or she shall notify all prospective offerers known to have received a requestfor proposals or request for qualifications.
(2) If a pre-proposal conference is held, it shall be at least fourteen (14) days after the request for proposals or request for qualifications has been issued. In setting the time for the conference,the chief procurement officer shall consider the complexity of the procurement and the potentialmodifications that may need to be made after the conference and any amendments to thesolicitation that the chief procurement officer may need to make after the conference.
(3) The chief procurement officer issuing the request for proposals or request for qualifications shall serve as chair of the conference. Offerers attending the conference shall be required to signan attendance sheet provided by the soliciting agency. The chair shall announce at the beginning of
the conference how the conference is to be handled. The conference shall be recorded. A chiefprocurement officer may mandate attendance at a conference if he or she feels it is critical tounderstanding the solicitation. Once the conference is over, the chief procurement officer shall putthe recordings from the conference and the questions and answers from the conference in writingand send them to the offerers who received the request for proposals or request for qualifications.
SECTION 6. Drafting the request for proposals or request for qualifications.
(1) In addition to the items listed in this act, the contents of a request for proposals or requestfor qualification shall also include the following:
(a) A statement that discussions may be conducted with offerers who submit proposalsor qualifications determined to be reasonably susceptible of being selected for theaward, but that proposals or qualifications may also be accepted without thosediscussions; and
(b) A statement of when and how price should be submitted.
(2) The request for proposals or request for qualifications shall indicate, either by the orderlisted, weights or some other manner, the order of importance of the evaluation criteria.
(3) The request for proposals or request for qualifications, its amendments, the offerer’s proposals or qualifications and the best and final offer shall constitute the contract.
SECTION 7. Evaluation factors in the request for proposals or request for qualifications.
(1) When the chief procurement officer submits the determination that the use of competitivesealed bidding is either not practicable or not advantageous to the state to the Public ProcurementReview Board for its approval, he or she shall include in that submission the evaluation factors thatwill be used in reviewing the submitted proposals or qualifications. The evaluation factors shall beapproved by the Public Procurement Review Board in the same way that the decision to solicitprocurements through a request for proposals or request for qualifications must be approved.
(2) (a) The request for proposals or request for qualifications shall state all of the approvedevaluation factors, including price, and their relative importance. When the chiefprocurement officer is determining the weights and importance of each evaluationfactor, price as an evaluation factor shall be given the highest criteria weighting andat least thirty-five percent (35%) out of the one hundred percent (100%) total weightof all the other evaluation factors. The evaluation shall be based on the evaluationfactors set forth in the request for proposals or request for qualifications. Theevaluation factors used and the weights given to each shall be decided and agreed toby the evaluation committee before the opening of any proposal or qualification. Numerical rating systems shall be used when determining the weight andimportance of each evaluation factor. Factors not specified in the request forproposals or request for qualifications shall not be considered. The evaluationfactors and the weights of the evaluation factors shall be developed in such a way as
to meet the specific needs of the soliciting agency but not unfairly or illegallydiscriminate or exclude otherwise capable offerers. Upon completion and award ofa contract, the evaluation score sheets used to review the submitted proposals orqualifications shall be made available to the public.
(b) The following, as appropriate to individual circumstance, shall be used as criteriafor evaluating requests for proposals or requests for qualifications under therequests for proposals or request for qualifications process described in this act. These factors are not intended to be limiting or all-inclusive, and they may beadapted or supplemented in order to meet a soliciting agency’s individual needs asthe competitive procurement process requires. No factor shall unfairly or illegallydiscriminate or exclude otherwise capable offerers.
(i) Technical factors:1. Proposed methodology:
(a) Does the offerer’s proposal or qualification demonstrate aclear understanding of the scope of work and relatedobjectives?
(b) Is the offerer’s proposal or qualification complete andresponsive to the specific request for proposal or request forqualifications requirements?
(c) Has the past performance of the offer’s proposedmethodology been documented?
(d) Does the offerer’s proposal or qualification use innovativetechnology and techniques?
2. Are sound environmental practices such as recycling, energyefficiency, and waste reduction used?
(ii) Management factors:1. Project management:
(a) How well does the proposed scheduling timeline meet theneeds of the soliciting agency?
(b) Is there a project management plan?2. History and experience in performing the work:
(a) Does the offerer document a record of reliability of timelydelivery and on-time and on-budget implementation?
(b) Does the offerer demonstrate a track record of service asevidenced by on-time, on-budget, and contract complianceperformance?
(c) Does the offerer document industry or program experience?(d) Does the offerer have a record of moral integrity?
3. Availability of personnel, facilities, equipment and other resources:(a) To what extent does the offerer rely on in-house resources vs.
contracted resources?(b) Are the availability of in-house and contract resources
documented?4. Qualification and experience of personnel:
(a) Documentation of experience in performing similar work byemployees and when appropriate, sub-contractors?
(b) Does the offerer make use of business capabilities orinitiatives that involve women, the disadvantaged, smalland/or minority owned business establishments?
(c) Does the offerer demonstrate cultural sensitivity in hiring andtraining staff?
(iii) Cost factors:1. Cost of goods to be provided or services to be performed:
(a) Relative cost: How does the cost compare to other similarlyscored proposals or qualifications?
(b) Full explanation: Is the price and its component charges, fees,etc. adequately explained or documented?
2. Assurances of performance:(a) If required, are suitable bonds, warranties or guarantees
provided?(b) Does the proposal or qualification include quality control and
assurance programs?3. Offerer’s financial stability and strength: Does the offerer have
sufficient financial resources to meet its obligations?
SECTION 8. Evaluation committee.
(1) Evaluation committees shall be used to evaluate request for proposals or request forqualifications and award contracts. Persons appointed to an evaluation committeeshall have the relevant experience necessary to evaluate the proposal orqualification. The members of the evaluation committee shall have no personal,financial or familial interest in any of the contract offerers, or principals thereof, tobe evaluated.
(2) The names of the members of the evaluation committee shall not be publiclydisclosed until their evaluation report is submitted to the chief procurement officerand a contract is awarded. When the contract is awarded, the members’ names,educational and professional qualifications, and practical experience, that were thebasis for the appointment, shall be made available to the public.
(3) Before evaluating proposals or qualifications, each individual participating in theevaluation of a proposal or qualifications shall execute a statement in accordancewith subsection (1) of this section certifying that he or she does not have a conflictof interest. The statement shall be filed with the chief procurement officer of thesoliciting agency, before beginning the evaluation process. The certification shallbe as follows:
“I hereby certify that I have reviewed the conflict of interest standards prescribedherein, and that I do not have a conflict of interest with respect to the evaluation ofthis proposal or qualification. I further certify that I am not engaged in anynegotiations or arrangements for prospective employment or association with any ofthe offerers submitting proposals or qualifications or their parent or subsidiaryorganization.
(4) Committee members may conduct their work separately or together.
(5) The committee may use advisors, as it deems necessary to give opinions onevaluating proposals or qualifications, except that such advisors shall be subject tothe provisions of subsection (3) of this section. The name of the advisors shall bemade public at the same time as members of the evaluation committee as providedin subsection (2) of this section.
(6) The process of establishing weighting criteria and evaluating proposals orqualifications shall result in a finding that a specific proposal or qualification is themost practical and advantageous, price and other factors considered, or that allproposals or qualifications should be rejected.
SECTION 9. Receipt and registration of proposal or qualifications.
(1) Submitted proposals or qualifications shall be opened publicly at the timedesignated for opening in the request for proposals or request for qualifications. Proposals or qualifications and modification shall be date-stamped or time and date-stamped upon receipt and held in a secure place until the established due date. Electronic proposals or qualifications received will be stored in an electroniclockbox until the time designated for the opening of the proposal or qualification.
(2) As each proposal or qualification is submitted but before those proposals orqualifications are opened, the chief procurement officer shall designate a person toprepare a register of proposals or qualifications, which shall include the number ofmodifications received, in any, and a description sufficient to identify the supply,service, commodity or other item offered. The designated person shall assign eachsubmitted proposal or qualification an identifying letter, number, or combinationthereof, without revealing the name of the offerer who submitted each proposal orqualification to the chief procurement officer or any person named to the evaluationcommittee for that proposal or qualification. The designated person shall keep thenames of the offerers and their identifying numbers or letters, or combinationthereof, in a sealed envelope or other secure location until time to award thecontract. At the time to award the contract, the evaluation committee shall awardthe contract to the identifying letter or number, or combination thereof, and onlythen shall the designated person reveal the identity of the offerer to be awarded thecontract. If the designated person reveals the names of the offerers and the
corresponding identifying information before the time to award the contract, thatperson shall be assessed a fine of not less than One Thousand Dollars ($1,000.00)and the chief procurement officer who designated that person to establish theregister of proposals or qualifications shall be removed from his or her office andassessed a fine of not less than One Thousand Dollars ($1,000.00). The register ofproposals or qualifications shall be open to pubic inspection only after the award ofthe contract.
SECTION 10. Evaluating submitted proposals or qualifications.
(1) The evaluation committee shall evaluate proposals or qualifications only inaccordance with the methodology and weighting criteria described in the request forproposals of request for qualifications. Proposals or qualifications shall be initiallyclassified as: (a) acceptable; (b) potentially acceptable, which means reasonablysusceptible of being made acceptable; or (c) unacceptable. Offerers whoseproposals or qualifications are unacceptable shall be notified promptly.
(2) Discussions may be held with offerers to:(a) Promote understanding of the state’s requirements and the offerer’s
proposals or qualification; and(b) Facilitate arriving at a contract that will be the most practicable and
advantageous to the state taking into consideration price and the otherevaluation factors set forth in the request for proposals or request forqualifications.
(3) Offerers shall be accorded fair and equal treatment with respect to any opportunityfor discussions and revisions of proposals or qualification. Any discussions thattake place under the provisions of this sections shall be recorded and recordingsshall be made public upon award of the contract. The chief procurement officershall establish procedures and schedules for conducting discussions. If, duringdiscussions, there is a need for any substantial clarification of or change in therequest for proposals or request for qualifications, the request shall be amended toincorporate the clarifications, or change. Auction techniques, revealing oneofferer’s price to another, and disclosure of any information derived fromcompeting proposals is prohibited. Any substantial oral clarification of a proposalor qualification shall be reduced to writing by the offerer.
SECTION 11. Best and final offers.
The chief procurement officer shall establish a common date and time for the submission of best and final offers. Best and final offers shall be submitted only once; however, the chief procurement officer may make a written determination that it is in the state’s best interest to conduct additional discussions or change the state’s requirements and require anothersubmission of best and final offers. Otherwise, no discussion of or changes in the best andfinal offers shall be allowed before the award. Offerers shall also be informed that if they
do not submit a notice of withdrawal or another best and final offer, their immediateprevious offer will be construed as their best and final offer.
SECTION 12. Awarding the contract.
(1) After proposals or qualifications have been evaluated, the evaluation committeeshall prepare a report evaluating and recommending the aware of a contract orcontracts. The report shall list the names of all potential offerers who submitted aproposal or qualification and shall summarize the proposals or qualifications ofeach offerer. The report shall rank offerers in order of evaluation, shall recommendthe selection of an offerer or offerers, as appropriate, for a contract, shall be clear inthe reasons why the offerer or offerers have been selected among others considered,and shall detail the terms, conditions, scope of services, fees and other matters to beincorporated into the contract. The report shall be available to the public at leastforty-eight (48) hours before the awarding of the contract.
(2) The chief procurement officer shall publish a notice on the agency’s website and theMississippi Transparency website summarizing the award of the contract, whichshall include but not be limited to, the nature, duration and amount of the contract,the name of the offerer and a statement that the contract is on file and available forpublic inspection in the office of the chief procurement officer.
SECTION 13. Section §27-104-7, Mississippi Code of 1972, is amended as follows:
§27-104-7
(1) (a) There is created the Public Procurement Review Board, which shall be reconstituted onJuly 1, 2017, and shall be composed of the following members:
(i) Three (3) individuals appointed by the Governor with the advice and consentof the Senate:
(ii) Two (2) individuals appointed by the Lieutenant Governor with the adviceand consent of the Senate; and
(iii) The Executive Director of the Department of Finance and Administration,serving as an ex-officio and nonvoting member.
(b) The initial terms of each appointee shall be as follows:
(i) One (1) member appointed by the Governor to serve for a term ending onJune30, 2019,
(ii) One (1) member appointed by the Governor to serve for a tem ending on June 30, 2020;
(iii) One (1) member appointed by the Governor to serve for a term ending on June 30, 2021;
(iv) One (1) member appointed by the Lieutenant Governor to serve for a term
ending on June 30, 2019; and(v) One (1) member appointed by the Lieutenant Governor to serve for a term
ending on June 30, 2020.
After the expiration of the initial terms, all appointed members’ terms shall be for a periodof four (4) years from the expiration date of the previous term, and until such time as themembers successor is duly appointed and qualified.
(c) When appointing members to the Public Procurement Review Board, the Governorand Lieutenant Governor shall take into consideration persons who possess at leastfive (5) years of management experience in general business, healthcare or financefor an organization, corporation or other public or private entity. Any person, orany employee or owner of a company, who receives any grants, procurements orcontracts that are subject to approval under this section shall not be appointed to thePublic Procurement Review Board. Any person, or any employee or owner of acompany, who is a principal of the source providing a personal or professionalservice shall not be appointed to the Public Procurement Review Board if theprincipal owns or controls a greater than five percent (5%) interest or has anownership value of One Million Dollars ($1,000,000.00) in the source’s business,whichever is smaller. No member shall be an officer or employee of the State ofMississippi while serving as a voting member on the Public Procurement ReviewBoard.
(d) Members of the Public Procurement Review Board shall be entitled to per diem asauthorized by Section §25-3-69 and travel reimbursement as authorized by Section §25-3-41.
(e) The members of the Public Procurement Review Board shall elect a chair fromamong the membership, and he or she shall preside over the meetings of the board. The board shall annually elect a vice-chair, who shall serve in the absence of thechair. No business shall be transacted, including adoption of rules of procedure,without the presence of a quorum of the board. Three (3) members shall be aquorum. No action shall be valid unless approved by a majority of the memberspresent and voting, entered upon the minutes of the board and signed by the chair. Necessary clerical and administrative support for the board shall be provided by theDepartment of Finance and Administration. Minutes shall be kept of theproceedings of each meeting, copies of which shall be filed on a monthly basis withthe Chairs of the Accountability, Efficiency and Transparency Committee of theSenate and House of Representatives and the Chairs of the AppropriationCommittee of the Senate and the House of Representatives.
(2) The Public Procurement Review Board shall have the following powers andresponsibilities:
(a) Approve all purchasing regulations governing the purchase or lease by any agency,
as defined in Section §31-7-1, of commodities and equipment, except computerequipment acquired pursuant to Sections §25-53-1 through §25-53-29;
(b) Adopt regulations governing the approval of contracts let for the construction andmaintenance of state buildings and other state facilities as well as related contractsfor architectural and engineering services;
(c) Adopt regulations governing any lease or rental agreement by any state agency ordepartment, including any state agency financed entirely by federal funds, for spaceoutside the buildings under the jurisdiction of the Department of Finance andAdministration. These regulations shall require each agency requesting to leasesuch space to provide the following information that shall be published by theDepartment of Finance and Administration on its website: the agency to lease thespace; the terms of the lease; the approximate square feet to be leased; the use forthe space; a description of a suitable space; the general location desired for theleased space; the contact information for a person from the agency; the deadlinedate of the agency to have received a lease proposal; any other specific terms orconditions of the agency; and any other information deemed appropriate by theDivision of Real Property Management of the Department of Finance andAdministration or the Public Procurement Review Board. The information shall beprovided sufficiently in advance of the time the space is needed to allow theDivision of Real Property Management of the Department of Finance andAdministration to review and preapprove the lease before the time for advertisementbegins;
(d) Adopt, in its discretion, regulations to set aside at least five percent (5%) ofanticipated annual expenditures for the purchase of commodities from minoritybusinesses; however, all such set-aside purchases shall comply with all purchasingregulations promulgated by the department and shall be subject to all bidrequirements. Set-aside purchases for which competitive bids are required shall bemade from the lowest and best minority business bidder; however, if no minoritybid is available or if the minority bid is more than two percent (2%) higher than thelowest bid, then bids shall be accepted and awarded to the lowest and best bidder. However, the provisions in this paragraph shall not be construed to prohibit therejecting of a bid when only one (1) bid is received. Such rejection shall be placedin the minutes. For the purposes of this paragraph the term “minority business”means a business which is owned by a person who is a citizen or lawful permanentresident of the United States and who is:
(i) Black: having origins in any of the black racial groups of Africa;(ii) Hispanic: of Mexican, Puerto Rican, Cuban, Central or South American, or
other Spanish or Portuguese culture or origin regardless of race;(iii) Asian-American: having origins in any of the original people of the Far East,
Southeast Asia, the Indian subcontinent, or the Pacific Islands;(iv) American Indian or Alaskan Native: having origins in any of the original
people of North America; or(v) Female;
(e) In consultation with and approval by the Chairs of the Senate and House PublicProperty Committees, approve leases, for a term not to exceed eighteen (18)months, entered into by state agencies for the purpose of providing parkingarrangements for state employees who work in the Woolfolk Building, the CarrollGartin Justice Building or the Walter Sillers Office Building.
(f) Promulgate rules and regulations governing the solicitation and selection ofcontractual services personnel including personal and professional servicescontracts for any form of consulting, policy analysis, public relations, marketing,public affairs, legislative advocacy services or any other contract that the boarddeems appropriate for oversight, with the exception of any personal servicecontracts entered into for computer or information technology-related servicesgoverned by the Mississippi Department of Information Technology Services, anypersonal service contracts entered into by the Mississippi Department ofTransportation, any personal service contracts entered into by the Department ofHuman Services through June 30, 2019, which the Executive Director of theDepartment of Human Services determines would be useful in establishing andoperating the Department of Child Protection Services, any personal servicecontracts entered into by the Department of Child Protection Services through June30, 2019, and any contract for attorney, account, auditor, architect, engineer, andutility rate expert services. Any such rules and regulations shall provide formaintaining continuous internal audit covering the activities of such agencyaffecting its revenue and expenditures as required under Section §7-7-3(6) (d). Anyrules and regulation changes related to personal and professional services contractsthat the Public Procurement Review Board may propose shall be submitted to theChairs of the Accountability, Efficiency and Transparency Committees of theSenate and House of Representatives and the Chairs of the AppropriationCommittees of the Senate and House of Representatives at least fifteen (15) daysbefore the board votes on the proposed changes, and those rules and regulationchanges, if adopted, shall be promulgated in accordance with the MississippiAdministrative Procedures Act;
(g) Approve all personal and professional services contracts involving the expendituresof funds in excess of Seventy-five Thousand Dollars ($75,000.00);
(h) Develop mandatory standards with respect to contractual services personnel thatrequire invitations for public bid, requests for proposals, record keeping andfinancial responsibility of contracts. The Public Procurement Review Board shall,unless exempted under the paragraph (h) or under paragraph (I) or (o) of thissubsection (2), require the agency involved to submit the procurement to acompetitive procurement process, and may reserve the right to reject and or allresulting procurements;
(i) Prescribe certain circumstances by which agency heads may enter into contracts forpersonal and professional services without receiving prior approval from the PublicProcurement Review Board. The Public Procurement Review Board may establisha preapproved list of providers of various personal and professional services for setprices with which state agencies may contract without bidding or prior approvalfrom the board;
(i) Agency requirements may be fulfilled by procuring services performedincident to the state’s own programs. The agency head shall determine inwriting whether the price represents a fair market value for the services. When the procurements are made from other governmental entities, theprivate sector need not be solicited; however, these contracts shall still besubmitted for approval to the Public Procurement Review Board.
(ii) Contracts between two (2) state agencies, both under Pubic ProcurementReview Board purview, shall not requrie Public Procurement Review Boardapproval. However, the contracts shall still be entered into the statewidepayroll and human resource system.
(j) Provide standards for the issuance of requests for proposals, the evaluation ofproposals received, consideration of costs and quality of services proposed, contractnegotiations, the administrative monitoring of contract performance by the agencyand successful steps in terminating a contract;
(k) Present recommendations for governmental privatization and to evaluateprivatization proposals submitted by any state agency;
(l) Authorize personal and professional service contracts to be effective for more thanone (1) year provided a funding condition is included in any such multiple yearcontract, except the State Board of Education, which shall have the authority toenter into contractual agreements for student assessment for a period up to ten (10)years. The State Board of Education shall procure these services in accordance withthe Public Procurement Review Board procurement regulations;
(m) Request the State Auditor to conduct a performance audit on any personal orprofessional service contract;
(n) Prepare an annual report to the Legislature concerning the issuance of personal andprofessional services contracts during the previous year, collecting any necessaryinformation from state agencies in making such report;
(o) Develop and implement the following standards and procedures for the approval ofany sole source contract for personal and professional services regardless of thevalue of the procurement;
(i) For the purposes of this paragraph (o), the term “sole source” means only
one (1) source is available that can provide the required personal orprofessional service.
(ii) An agency that has been issued a binding, valid court order mandating that aparticular source or provider must be used for the required services mustinclude a copy of the applicable court order in all future sole source contractreviews for the particular personal or professional service referenced in thecourt order.
(iii) Any agency alleging to have a sole source for any personal or professionalservice shall publish on the procurement portal website established bySections §25-53-151 and §27-104-165, for at least fourteen (14) days, theterms of the proposed contract for those services. In addition, thepublication shall include, but is not limited to, the following information:
1. The personal or professional service offered in the contract;2. An explanation of why the personal or professional service is
the only one that can meet the needs of the agency;3. An explanation of why the source is the only person or entity
that can provide the required personal or professional service;4. An explanation of why the amount to be expended for the
personal or professional service is reasonable; and5. The efforts that the agency went through to obtain the best
possible price for the personal or professional service.(iv) If any person or entity objects and proposes that the personal or
professional service published under subparagraph (iii) of thisparagraph (o) is not a sole source service and can be provided byanother person or entity, then the objecting person or entity shallnotify the Public Procurement Review Board and the agency thatpublished the proposed sole source contract with a detailedexplanation of why the personal or professional service is not a solesource service.
(v) 1. If the agency determines after review that the personal orprofessional service in the proposed sole source contract can byprovided by another person or entity, then the agency must withdrawthe sole source contract publication from ths procurement portalwebsite and submit the procurement of the personal or professionalservice to be advertised competitive bid or selection process.
2. If the agency determines after review that there is only one (1) sourcefor the required personal or professional service, then the agencymay appeal to the Public Procurement Review Board. The agencyhas the burden or proving that the personal or professional service isonly provided by one (1) source.
3. If the Public Procurement Review Board has any reasonable doubt asto whether the personal or professional service can only be providedby one (1) source, then the agency must submit the procurement ofthe personal or professional service to an advertised competitive bidor selection process. No action taken by the Public Procurement
Review Board in this appeal process shall be valid unless approvedby a majority of the members of the Public Procurement ReviewBoard present and voting.
(vi) The Public Procurement Review Board shall prepare and submit a quarterlyreport to the House of Representative and Senate Accountability, Efficiencyand Transparency Committees that details the sole source contractspresented to the Public Procurement Review Board and the reasons that thePublic Procurement Review Board approved or rejected each contract. These quarterly reports shall also include the documentation and memorandarequired in subsection (4) of this section. An agency that submitted a solesource contract shall be prepared to explain the sole source contract to eachcommittee by December 15 of each year upon request by the committee.
3. Any contract submitted to the Public Procurement Review Board for review and approvalshall be presumed to be approved if the Public Procurement Review Board does not objectto the contract at the meeting in the month following the month the agency submitted thecontract. All submissions shall be made thirty (30) or more days before the monthlymeeting of the Public Procurement Review Board or as prescribed by the PublicProcurement Review Board. If the Public Procurement Review Board rejects any contractsubmitted for review or approval, the Public Procurement Review Board shall clearly setout the reasons for its action, including, but not limited to, the policy that the agency hasviolated in its submitted contract and any corrective actions that the agency may take toamend the contract to comply with the rules and regulations of the Public ProcurementReview Board.
4. All sole source contracts for personal and professional services awarded by state agencies,whether approved by an agency or the Public Procurement Review Board, shall contain inthe procurement file a written determination for the approval, using a request formfurnished by the Public Procurement Review Board. The written determination shalldocument the basis for the determination, including any market analysis conducted in orderto ensure that the service required has practicably available from only one (1) source. Amemorandum shall accompany the request form and address the following four (4) points:
(a) Explanation of why this service is the only service that can meet the needs of thepurchasing agency;
(b) Explanation of why this vendor is the only practicably available source from whichto obtain this service;
(c) Explanation of why the price is considered reasonable; and(d) Description of the efforts that were made to conduct a noncompetitive negotiation
to get best possible price for the taxpayers.
5. The Public Procurement Review Board shall develop and promulgate rules and regulationsto define the allowable legal relationship between contract employees and the contractingdepartments, agencies and institutions of state government under the jurisdiction of theState Personnel Board, in compliance with the applicable rules and regulations of the
federal Internal Revenue Service (IRS) for federal employment tax purposes. Under theseregulations, the usual common law rules are applicable to determine and require that suchworker is an independent contractor and not an employee, requiring evidence of lawfulbehavioral control, lawful financial control and lawful relationship of the parties. Any statedepartment, agency or institution shall only be authorized to contract for personnel servicesin compliance with those regulations.
6. No member of the Public Procurement Review Board shall use her or her official authorityor influence to coerce, by threat of discharge from employment, or otherwise, the purchaseof commodities, the contracting for personal or professional services, or the contracting forpublic construction under this chapter.
7. Notwithstanding any other laws or rules to the contrary, the provisions of subsection (2) ofthis section shall not be applicable to the Mississippi State Port Authority at Gulfport.
8. Nothing in this section shall impair or limit the authority of the Board of Trustees of thePublic Employees’ Retirement System to enter into any personal or professional servicescontracts directly related to their constitutional obligation to manage the trust funds,including, but not limited to, actuarial, custodial banks, cash management, investmentconsultant and investment management contracts.
9. Notwithstanding the exemption of personal and professional services contracts entered intoby the Department of Human Services and personal and professional services contractsentered into by the Department of Child Protection Services from the provisions of thissection under subsection (2) (f), before the Department of Human Services or theDepartment of Child Protection Services may enter into a personal or professional servicecontract, the department(s) shall give notice of the proposed personal or professionalservice contract to the Public Procurement Review Board for any recommendations by theboard. Upon receipt of the notice, the board shall post the notice on its website and on theprocurement portal website established by Sections §25-53-151 and §27-104-165. If theboard does not respond to the department(s) within seven (7) calendar days after receivingthe notice, the department(s) may enter the proposed personal or professional servicecontract. If the board responds to the department(s) within seven (7) calendar days, thenthe board has seven (7) calendar days from the date of its initial response to prove anyadditional recommendations. After the end of the second seven-day period, thedepartment(s) may enter the proposed personal or professional service contract. The boardis not authorized to disapprove any proposed personal or professional services contracts. This subsection shall stand repealed on July 1, 2019.
SECTION 14. Section §25-9-120, Mississippi Code of 1972, is amended as follows:
Section §25-9-120
1. Contract personnel, whether classified as contract workers or independent contractors shallnot be deemed state service or nonstate service employees of the State of Mississippi, and
shall not be eligible to participate in the Public Employees’ Retirement System, or the Stateand School Employees’ Health Insurance Plan, nor be allowed credit for personal and sickleave and other leave benefits as employees of the State of Mississippi, notwithstandingSections §25-3-91 through §25-3-101; §25-9-101; §25-9-151; through §25-11-1; §25-11-126b; through§25-11-131; §25-15-1 through §25-15-23 and for the purpose set forth herein. Contract workers, i.e., contract personnel who do not meet the criteria of independent contractors, shall be subject to the provisions of Section §25-11-127.
2. The Personal Service Contract Review Board is abolished. The Public ProcurementReview Board shall be the Personal Services Contract Review Board and shall retain allpowers and duties granted by law to the Personal Service Contract Review Board. Allequipment, inventories, records, personnel, resources and other property, real or personal,tangible or intangible, of the Personal Service Contract Review Board shall be transferredto the Public Procurement Review Board as provided in Section §27-104-7. The transfer ofpersonnel shall be commensurate with the number and classification of positions (PINS)allocated to the Personal Service Contract Review Board on June 30, 2017. Wherever theterms “Personal Service Contract Review Board” or “board,” when referring to the PersonalService Contract Review Board, appear in any law, rule, regulation or document the sameshall be construed to mean the Public Procurement Review Board.
SECTION 15. Section §25-61-9, Mississippi Code of 1972, is amended as follows:
§25-61-9.
1. Records furnished to public bodies by third parties which contain trade secrets orconfidential commercial or financial information shall not be subject to inspection,examination, copying or reproduction under this chapter until notice to third parties hasbeen given, but the records shall be released no later than twenty-one (21) days from thedate the third parties are given notice by the public body unless the third parties have filedin chancery count a petition seeking a protective order on or before the expiration of thetwenty-one-day time period. Any party seeking the protective order shall give notice to andprovide the reasons for the protective order to the party requesting the information inaccordance with the Mississippi Rules of Civil Procedure. The notice and reasons for theprotective order must be posed on the Mississippi Transparency website for a minimum ofseven (7) days before filing the petition seeking the protective order in chancery court.
2. If any public record which is held to be exempt from disclosure pursuant to this chaptercontains material which is not exempt pursuant to this chapter, the public body shallseparate the exempt material and make the nonexempt material available for examinationor copying, or both, as provided for in this chapter.
3. Trade secrets and confidential commercial and financial information of a proprietary naturedeveloped by a college, university, association, corporation, individual or other like entityshall not be subject to inspection, examination, copying or reproduction under this chapter.
4. Misappropriation of a trade secret shall be governed by the provisions of the MississippiUniform Trade Secrets Act, Sections §75-26-1 through §75-26-19.
5. A waste minimization plan and any updates developed by generators and facility operatorsunder the Mississippi Comprehensive Multimedia Waste Minimization Act of 1990 shallbe retained at the facility and shall not be subject to inspection, examination, copying orreproduction under this chapter.
6. Data processing software obtained by an agency and which software is a trade secret, asdefined in Section §75-26-3, and data processing software produced by a public body whichis sensitive must not be subject to inspection, copying or reproduction under this chapter.
As used in this subsection, “sensitive” means only those portions of data processingsoftware, including the specifications and documentation, used to:
a. Collect, process, store, and retrieve information which is exempt under this chapter.b. Central and direct access authorizations and security measures for automated
systems.c. Collect, process, store, and retrieve information, disclosure of which would require
a significant intrusion into the business of the public body.
7. For all procurement contracts awarded by state agencies, the provisions of the contractwhich contain the commodities purchased at the personal or professional services providedthe price to be paid, and the term of the contract shall not be deemed to be a trade secret orconfidential commercial or financial information under this section, and shall be availablefor examination, copying or reproduction as provided for in this chapter. Any party seekinga protective order in violation of this subsection may be barred by a state agency fromsubmitting bids, proposals or qualifications for procurement for a period not to exceed five(5) years.
SECTION 16. Section §31-7-13, Mississippi Code of 1972, is amended as follows:
§37-7-13. All agencies and governing authorities shall purchase their commodities and printing;contract for garbage collection or disposal; contract for solid waste collection or disposal; contractfor sewage collection or disposal; contract for public construction, and contract for rental as hereinprovided.
a. Bidding procedure for purchases not over $5,000.00
Purchases which do not involve an expenditure of more than Five Thousand Dollars ($5,000.00),exclusive of freight or shipping charges, may be made without advertising or otherwise requestingcompetitive bids. However, nothing contained in this paragraph
a. shall be construed to prohibit any agency or governing authority from establishingprocedures which require competitive bids on purchases of Five Thousand Dollars($50,000.00) or less.
b. Bidding procedure for purchases over $5,000.00 but not over $50,000.00.
Purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00) but notmore than Fifty Thousand Dollars ($50,000.00), exclusive of freight and shipping charges may bemade from the lowest and best bidder without publishing or posting advertisement for bids,provided at least two (2) competitive written bids have been obtained. Any state agency orcommunity/junior college purchasing commodities or procuring construction pursuant to thisparagraph (b) may authorize its purchasing agent, or his designee, to accept the lowest competitivewritten bid under Fifty Thousand Dollars ($50,000.00). Any governing authority purchasingcommodities pursuant to this paragraph (b) may authorize its purchasing agent, or his designee,with regard to governing authorities other than counties, or its purchase clerk, or his designee, withregard to counties, to accept the lowest and best competitive written bid. Such authorization shallbe made in writing by the governing authority and shall be maintained on file in the primary officeof the agency and recorded in the official minutes of the governing authority, as appropriate. Thepurchasing agent or the purchase clerk, or their designee, as the case may be, and not the governingauthority, shall be liable for any penalties and/or damages as may be imposed by law for any act oromission of the purchasing agent or purchase clerk, or their designee, constituting a violation oflaw in accepting any bid without approval by the governing authority. The term “competitivewritten bid” shall mean a bid submitted on a bid form furnished by the buying agency or governingauthority and signed by authorized personnel representing the vendor, or a bid submitted on avendor’s letterhead or identifiable bid form and signed by authorized personnel representing thevendor. “Competitive” shall mean that the bids are developed based upon comparableidentification of the needs and are developed independently and without knowledge of other bidsor prospective bids. Any bid item for construction in excess of Five Thousand Dollars ($5,000.00)shall be broken down by components to provide detail of component description and pricing. These details shall be submitted with the written bids and become part of the bid evaluationcriteria. Bids may be submitted by facsimile, electronic mail or other generally accepted method ofinformation distribution. Bids submitted by electronic transmission shall not require the signatureof the vendor’s representative unless required by agencies or governing authorities.
c. Bidding procedure for purchase over $50,000.00.
(i) Publication requirement.
1. Purchases which involve an expenditure of more than Fifty Thousand Dollars($50,000.00), exclusive of freight and shipping charges, may be made from thelowest and best bidder after advertising for competitive bids once each week for two(2) consecutive weeks in a regular newspaper published in the county ormunicipality in which such agency or governing authority is located. However, allAmerican Recovery and Reinvestment Act projects in excess of Twenty-fiveThousand Dollars ($25,000.00) shall be bid. All references to American Recoveryand Reinvestment Act projects in this section shall not apply to programs identifiedin Division B of the American Recovery and Reinvestment Act.
2. Reverse auctions shall be the primary method for receiving bids during the bidding
process. If a purchasing entity determines that a reverse auction is not in the bestinterest of the state, then that determination must be approved by the PublicProcurement Service Board. The purchasing entity shall submit a detailedexplanation of why a reverse auction would not be in the best interest of the stateand present alternative process to be approved by the Public Procurement ReviewBoard. If the Public Procurement Review Board authorizes the purchasing entity tosolicit bids with a method other than reverse auction, then the purchasing entity maydesignate the other methods by which the bids will be received, including, but notlimited to, bids sealed in an envelope, bids received electronically in a securesystem or bids received by any other method that promotes open competition andhas been approved by the Office of Purchasing and Travel. The Public ProcurementReview Board must approve any contract entered into by alternative processes. If acontractor has the capability to submit a bid electronically through a secure system,the purchasing entity must accept the bid in that format. Except as otherwiseprovided in subparagraph (v) of this paragraph (c), all purchasing entities shallmake the appropriate provisions necessary for the acceptance of bids submittedelectronically through a secure system for all purchases that require competitivesealed bidding as provided in this section.
3. The date as published for the bid opening shall not be less than seven (7) workingdays after the last published notice, if the purchase involves a construction project inwhich the established cost is in excess of Fifth Thousand Dollars ($50,000.00), suchbids shall not be opened in less than fifteen (15) working days after the last notice ispublished and the notice for the purchase of such construction shall be publishedonce each week for two (2) consecutive weeks. However, all American Recoveryand Reinvestment Act projects in excess of Twenty-five Thousand Dollars($25,000.00) shall be bid. For any projects in excess of Twenty-five ThousandDollars ($25,000.00) under the American Recovery and Reinvestment Act,publication shall be made one (1) time and the bid opening for construction projectsshall not be less than ten (10) working days after the date of the published notice. The notice of intention to let contracts or purchase equipment shall be received, listthe contracts to be made or types of equipment or supplies to be purchased, and, ifall plans and/or specifications are not published, refer to the plans and/orspecifications on file. If there is no newspaper published in the county ormunicipality, then such notice shall be given by posting same at the courthouse, orfor municipalities at the city hall, and at two (2) other public places in the county ormunicipality, and also by publication once each week for two (2) consecutive weeksin some newspaper having a general circulation in the county or municipality in theabove-provided manner. On the same date that the notice is submitted to thenewspaper for publication, the agency or governing authority involved shall mailwritten notice to, or provide electronic notification to the main office of theMississippi Procurement Technical Assistance Program under the MississippiDevelopment Authority that contains the same information as that in the publishednotice. Submissions received by the Mississippi Procurement Technical AssistantProgram for projects funded by the American Recovery and Reinvestment Act shall
be displayed on a separate and unique internet web page accessible to the public andmaintained by the Mississippi Development Authority for the MississippiProcurement Technical Assistance Program. These American Recovery andReinvestment Act related submissions shall be publicly posted withing twenty-four(24) hours of receipt by the Mississippi Development Authority and the bid openingshall not occur until the submission has been posted for ten (10) consecutive days. The Department of Finance and Administration shall maintain informationregarding contracts and other expenditures from the American Recovery andReinvestment Act, on a unique internet web page accessible to the public. TheDepartment of Finance and Administration shall promulgate rules regarding format,content and deadlines, unless otherwise specified by law, or the posting of awardnotices, contract execution and subsequent amendment, links to the contractdocuments, expenditures against the awarded contracts and general expenditures offunds from the American Recovery Act. Within one (1) working day of the contractaward, the agency or governing authority shall post to the designated web pagemaintained by the Department of Finance and Administration, notice of the award,including the award recipient, the contract amount, and a brief summary of thecontract in accordance with rules promulgated by the department. Within one (1)working day of the contract execution, the agency or governing authority shall postto the designated web page maintained by the Department of Finance andAdministration a summary of the executed contract and make a copy of theappropriately redacted contract documents available for linking to the designatedweb page in accordance with the rules promulgated by the department. Theinformation provided by the agency or governing authority shall be posted to theweb page for the duration of the American Recovery and Reinvestment Act fundingor until the project is completed, whichever is longer.
(ii) Bidding process amendment procedure.
If all plans and/or specifications are published in the notification, then the plansand/or specifications may not be amended. If all plans and/or specifications are notpublished in the notifications, then amendments to the plans/specifications, bidopening date, bid opening time and place may be made, provided that the agency orgoverning authority maintain a list of all prospective bidders who are known to havereceived a copy of the bid documents and all such prospective bidders are sentcopies of all amendments. This notification of amendments may be made via mail,facsimile, electronic mail or other generally accepted method of informationdistribution. No addendum to bid specifications may be issued withing two (2)working days of the time established for the receipt of bids unless such addendumalso amends the bid opening in a date not less than five (5) working days after thedate of addendum.
(iii) Filing requirement
In all cases involving governing authorities, before the notice shall be published or
posted, the plans or specifications for the construction or equipment being soughtshall be filed with the clerk of the board of the governing authority. In addition tothese requirements, a bid file shall be established which shall indicate those vendorsto whom such solicitations and specifications were issued, and such file shall alsocontain such information as is pertinent to the bid.
(iv) Specification restrictions.
1. Specifications pertinent to such bidding shall be written so as not to exclude comparable equipment or domestic manufacture. However, if valid justification ispresented, the Department of Finance and Administration or the board of agoverning authority may approve a request for specific equipment necessary toperform a specific job. Further, such justification, when placed on the minutes ofthe board of a governing authority, may serve as authority for that governingauthority to write specifications to require a specific item of equipment needed toperform a specific job. In addition to these requirements, from and after July 1,1990, vendor of relocatable classroom and the specifications for the purchase ofsuch relocatable classrooms published by local school boards shall meet allpertinent regulations of the State Board of Education, including prior approval ofsuch bid by the State Department of Education.
1. Specifications for construction project may include an allowance for commodities, equipment, furniture, construction materials or systems in whichprospective bidders are instructed to include in their bids specified amounts for suchitems so long as the allowance items are acquired by the vendor in a commerciallyreasonable manner and approved by the agency/governing authority. Suchacquisitions shall not be made to circumvent the public purchasing laws.
(v) Agencies and governing authorities shall establish secure procedures by which bidsmay be submitted via electronic means. Agencies and governing authorities that arecurrently without high speed Internet access shall be exempt from this requirementuntil such time that high speed Internet access becomes available.
d. Lowest and best bid decision procedure.
(i) Decision procedure.
Purchases may be made from the lowest and best bidder. In determining the lowestand best bid, freight and shipping charges shall be included. Lifecycle costing, totalcost bids, warranties, guaranteed buy-back provisions and other relevant provisionsmay be included in the best bid calculations. All best bid procedures for stateagencies must be in compliance with regulations established by the Department ofFinance and Administration. If any governing authority accepts a bid other than thelowest bid actually submitted, it shall place on its minutes detailed calculations andnarrative summary showing that the accepted bid was determined to be the lowest
and best bid, including the dollar amount of the accepted bid and the dollar amountof the lowest bid. No agency or governing authority shall accept a bid based onitems not included in the specifications.
(ii) Decision procedure for Certified Purchasing Offices.
In addition to the decision procedure set forth in subparagraph (i) of this paragraph(d), Certified Purchasing Offices may also use the following procedure: Purchasemay be made from bidder offering the best value. In determining the best value bid,freight and shipping charges shall be included. Life-cycle costing, total cost bids,warranties, guaranteed buy-back provisions, documented previous expenditures,training costs and other relevant provisions, including, but not limited to, a bidderhaving a local office and inventory located within the jurisdiction of the governingauthority, may be included in the best value calculation. This provision shallauthorize Certified Purchasing Offices to utilize a Request for Proposals (RFP)process when purchasing commodities. All best value procedures for state agenciesmust be in compliance with regulations established by the Department of Financeand Administration. No agency or governing authority shall accept a bid based onitems or criteria not included in the specifications.
(iii) Decision procedure for Mississippi Landmarks.
In addition to the decision procedure set forth in subparagraph (1) of this paragraph(d) , where purchase involved renovation, restoration, or both, of the State CapitolBuilding or any other historical building designated for a least five (5) years as aMississippi Landmark by the Board of Trustees of the Department of Archives andHistory under the authority of Sections §39-7-7 and §39-7-11, the agency orgoverning authority may use the following procedure: Purchases may be made fromthe lowest and best pre-qualified bidder. Pre-qualification of bidders shall bedetermined not less than fifteen (15) working days before the first published noticeof bid opening. Pre-qualification criteria shall be limited to bidder’s knowledge andexperience in historical restoration, preservation and renovation. In determining thelowest and best bid, freight and shipping charges shall be included. Life-cyclecosting, total cost bids, warranties, guaranteed buy-back provisions and otherrelevant provisions may be included in the best bid calculation. All best bid andpre-qualifications procedures for state agencies must be in compliance withregulations established by the Department of Finance and Administration. If anygoverning authority accepts a bid other than the lowest bid actually submitted, itshall place on its minutes detailed calculations and narrative summary showing thatthe accepted bid was determined to be the lowest and best bid, including the dollaramount of the accepted bid and the dollar amount of the lowest bid. No agency orgoverning authority shall accept a bid based on items not included in thespecifications.
(iv) Construction project negotiations authority.
If the lowest and best bid is not more than ten percent (10%) above the above theamount of funds allocated for a public construction or renovation project, then theagency or governing authority shall be permitted to negotiate with the lowest bidderin order to enter into a contract for an amount not to exceed the funds allocated.
e. Lease-purchase authorization.
For the purposes of this section, the term “equipment” shall mean equipment, furniture and,if applicable, associated software and other applicable direct costs associated with theacquisition. Any lease-purchase of equipment which an agency is not required to lease-purchase under the master lease-purchase program pursuant to Section §31-7-10 and anylease-purchase of equipment which governing authority elects to lease-purchase may beacquired by a lease-purchase agreement under this paragraph (e). Lease-purchase financingmay also be obtained from the vendor or from a third-party source after having solicitedand obtained at least two (2) written competitive bids, as defined in paragraph (b) of thissection, for such financing without advertising for such bids. Solicitation for the bids forfinancing may occur before or after acceptance of bids for the purchase of such equipmentor, where no such bids for purchase are required, at any time before the purchase thereof. No such lease-purchase agreement shall be for an annual rate of interest which is greaterthan the overall maximum interest rate to maturity on general obligation indebtednesspermitted under Section §75-17-101, and the term of such lease-purchase agreement shallnot exceed the useful life of the equipment covered thereby as determined according to theupper limit of the asset depreciation range (ADR) guidelines for the Class Life AssetDepreciation Range System established by the Internal Revenue Service pursuant to theUnited States Internal Revenue Code and regulations thereunder as in effect on December21, 1980, or comparable depreciation guidelines with respect to any equipment not coveredby ADR guidelines. Any lease-purchase agreement entered into pursuant to this paragraph(e) may contain any of the terms and conditions which a master lease-purchase agreementmay contain under the provisions of Section §31-7-75, and shall contain an annualallocation dependency clause substantially similar to that set forth in Section §31-7-10(8). Each agency or governing authority entering into a lease-purchase transaction pursuant tothis paragraph (e) shall maintain with respect to each such lease-purchase transaction thesame information as required to be maintained by the Department of Finance andAdministration pursuant to Section §37-7-10(13). However, nothing contained in thissection shall be construed to permit agencies to acquire items of equipment with a totalacquisition cost in the aggregate of less than Ten Thousand Dollars ($10,000.00) by asingle lease-purchase transaction. All equipment, and the purchase thereof by any lessor,acquired by lease-purchase under this paragraph and all lease-purchase payments withrespect thereto shall be exempt from all Mississippi sales, use and ad valorem taxes. Interest paid on any lease-purchase agreement under this section shall be exempt from Stateof Mississippi income taxation.
f. Alternate bid authorization.
When necessary to ensure ready availability of commodities for public works and the
timely completion of public projects, no more than two (2) alternate bids may be accepted by agoverning authority for commodities. No purchases may be made through use of suchalternate bids procedure unless the lowest and best bidder cannot deliver the commoditiescontained in his bid. In the event, purchases of such commodities may be made from one(1) of the bidders whose bid was accepted as an alternate.
g. Construction contract change authorization.
In the event a determination is made by an agency or governing authority after aconstruction contract is let that changes or modifications to the original contract arenecessary or would better serve the purpose of the agency or the governing authority, suchagency or governing authority may, in its discretion, order such changes pertaining to theconstruction that are necessary under the circumstances without the necessity of furtherpublic bids; provided that such change shall be made in a commercially reasonable mannerand shall not be made to circumvent the public purchasing statutes. In addition to any otherauthorized person, the architect or engineer hired by an agency or governing authority withrespect to any public construction contract shall have the authority, when granted by anagency or governing authority, to authorize changes or modifications to the originalcontract without the necessity of prior approval of the agency or governing authority whenany such change or modification is less than one percent (1%) of the total contract amount. The agency or governing authority may limit the number, manner or frequency of suchemergency changes or modifications.
h. Petroleum purchase alternative.
In addition to other methods of purchasing authorized in this chapter, when any agency orgoverning authority shall have a need for gas, diesel fuel, oils and/or other petroleumproducts in excess of the amount set forth in paragraph (a) of this section, such agency orgoverning authority may purchase the commodity after having solicited and obtained atleast two (2) competitive written bids, as defined in paragraph (b) of this section, if two (2)competitive written bids are not obtained, the entity shall comply with the procedures setforth in paragraph (c) of this section. In the event any agency or governing authority shallhave advertised for bids for the purchase of gas, diesel fuel, oils and other petroleumproducts and coal and no acceptable bids can be obtained, such agency or governingauthority is authorized and directed to enter into any negotiations necessary to secure thelowest and best contract available for the purchase of such commodities.
i. Road construction petroleum products price adjustment clause authorization.
Any agency or governing authority authorized to enter into contracts for the construction,maintenance, surfacing or repair of highways, roads or streets, may include in its bidproposal and contract documents a price adjustment clause with relation to the cost to thecontractor, including taxes, based upon an industry-wide cost index, of petroleum productsincluding asphalt used in the performance or execution of the contract or in the production
or manufacture of materials for use in such performance. Such industry-wide index shallbe established and published monthly by the Mississippi Department of Transportation witha copy thereof to be mailed, upon request, to the clerks of the governing authority of suchmunicipality and the clerks of each board of supervisors throughout the state. The priceadjustment clause shall be based on the cost of such petroleum products only and shall notinclude any additional profit or overhead as part of the adjustment. The bid proposals ordocument contract shall contain the basis and methods of adjusting unit prices for thechange in the cost of such petroleum products.
j. State agency emergency purchase procedure.
If the governing board or the executive head, or his designees, of any agency of the stateshall determine that an emergency exists in regard to the purchase of any commodities orrepair contracts, so that the delay incident to giving opportunity for competitive biddingwould be detrimental to the interests of the state, then the head of such agency, or hisdesignees, shall file with the Department of Finance and Administration (i) a statementexplaining the conditions and circumstances of the emergency, which shall include detaileddescription of the events leading up to the situation and the negative impact to the entity ifthe purchase is made following the statutory requirements set forth in paragraph (a), (b) or(c) of this section, and (ii) a certified copy of the appropriate minutes of the board of suchagency requesting the emergency purchase, if applicable. Upon receipt of the statement andapplicable board certification, the State Fiscal Officer, or his designees, may, in writing,authorize the purchase or repair without having to comply with competitive biddingrequirements.
If the governing board or the executive head, or his designees, of any agency determinesthat an emergency exists in regard to the purchase of any commodities or repair contracts,so that the delay incident to giving opportunity for competitive bidding would threaten thehealth or safety of any person, or the preservation or protection of property, then theprovisions in this section for competitive bidding shall not apply, and any officer or agentof the agency having general or specific authority for making the purchase or repair contractshall approve the bill presented for payment, and he shall certify in writing from whom thepurchase was made, or with whom the repair contract was made.
Total purchases made under this paragraph (j) shall only be for the purpose of meetingneeds created by the emergency situation. Following the emergency purchase,documentation of the purchase, including a description of the commodity purchased, thepurchase price thereof and the nature of the emergency shall be filed with the Departmentof Finance and Administration.
k. Governing authority emergency purchase procedure.
If the governing authority, or the governing authority acting through its designee, shalldetermine that an emergency exists in regard to the purchase of any commodities or repaircontracts, so that the delay incident to giving opportunity for competitive bidding would be
detrimental to the interests of the governing authority, then the provisions herein forcompetitive bidding shall not apply and any officer or agent of such governing authorityhaving general or special authority therefor in making such purchase or repair shall approvethe bill presented therefor, and he shall certify in writing thereon from whom such purchasewas made, or with whom such a repair contract was made. At the board meeting nextfollowing the emergency purchase or repair contract, documentation of the purchase orrepair contract, documentation of the purchase or repair contract, including a description ofthe commodity purchased, the price thereof and the nature of the emergency shall bepresented to the board and shall be placed on the minutes of the board of such governingauthority.
l. Hospital purchase, lease-purchase and lease authorization.
(i) The commissioners or board of trustees of any public hospital may contract with such lowest and best bidder for the purchase or lease-purchase of any commodity under acontract of purchase or lease-purchase agreement whose obligatory payment terms do notexceed five (5) years.
(ii) In addition to the authority granted in subparagraph (i) of this paragraph (1), the commissioners or board of trustees is authorized to enter into contracts for the lease ofequipment or services, or both, in its opinion, it is not financially feasible to purchase thenecessary equipment or services. Any such contract for the lease of equipment or servicesexecuted by the commissioners or board shall not exceed a maximum of five (5) years’duration and shall include a cancellation clause based on unavailability of funds. If suchcancellation clause is exercised, there shall be no further liability on the part of the lessee. Any such contract for the lease of equipment or services executed on behalf of thecommissioners or board that complies with the provisions of this subparagraph (ii) shall beexempted from the bid requirements set forth in this section.
m. Exceptions from bidding requirements.
Excepte from bid requirements are:
i. Purchasing agreements approved by department.Purchasing agreements, contracts and maximum price regulations executed or approved bythe Department of Finance and Administration.
ii. Outside equipment repairs.Repairs to equipment, when such repairs are made by repair facilities in the private sector;however, engines, transmissions, rear axles and/or other such components shall not beincluded in this exemption when replaced as a complete unit instead of being repaired andthe need for such total component replacement is known before disassembly or thecomponent; however, invoices identifying the equipment, specific repairs made, partsidentified by number of hours of labor and costs thereof shall be required for the paymentfor such repairs.
iii. In-House equipment repairs.Purchase of parts for repairs to equipment, when such repairs are made by personnel of theagency or governing authority; however, entire assemblies, such as engines ortransmissions, shall not be included in this exemption when the entire assembly is beingreplaced instead of being repaired.
iv. Raw gravel or dirt.Raw unprocessed deposits of gravel or fill dirt which are to be removed and transported bythe purchaser.
v. Governmental equipment auctionsMotor vehicles or other equipment purchase from a federal agency or authority, anothergoverning authority or state agency or the State of Mississippi, or any governing authorityor state agency of another state at a public auction held for the purpose of disposing of suchvehicles or other equipment. Any purchase by a governing authority under the exemptionauthorized by this subparagraph (v) shall require advance authorization spread upon theminutes of the governing authority to include the listing of the item or items authorized tobe purchased and the maximum bid authorized to be paid for each item or items.
vi. Intergovernmental sales and transfers.Purchases, sales, transfer or trades by governing authorities or state agencies when suchpurchases, sales, transfers or trades are made by a private treaty agreement or throughmeans of negotiations, from any federal agency or authority, another governing authority orstate agency of the State of Mississippi, or any state agency or governing authority ofanother state. Nothing in this section shall permit such purchases through public actionexcept as provided for in subparagraph (v) of this paragraph (m). It is the intent of thissection to allow governmental entities to dispose of and/or purchase equipment from othergovernmental entities at a price that is agreed to by both parties. This shall allow forpurchases and/or sales at prices which may be determined to be below the market value ifthe selling entity determines that the sale at below market value is in the best interest of thetaxpayers of the state. Governing authorities shall place the terms of the agreement and anyjustification on the minutes, and state agencies shall obtain approval of the Department ofFinance and Administration, prior to releasing or taking possession of the commodities.
vii. Perishable supplies or food.Perishable supplies or food purchased for the use in connection with hospitals, the schoollunch programs, homemaking programs and for the feeding of county or municipalprisoners.
viii. Single source items.Noncompetitive items available from one (1) source only. In connection with the purchaseof noncompetitive items only available from one (1) source, a certification of the conditionsand circumstances requiring the purchase shall be filed by the agency with the Departmentof Finance and Administration and by the governing authority with the board of thegoverning authority. Upon receipt of that certification the Department of Finance and
Administration or the board of the governing authority, which authority shall be noted onthe minutes of the body at the next regular meeting thereafter. In those situations, agoverning authority is not required to obtain the approval of the Department of Finance andAdministration. Following the purchase, the executive head of the state agency, or hisdesignees, shall file with the Department of Finance and Administration, documentation ofthe purchase, including a description of the commodity purchased, the purchase pricethereof and the source from whom it was purchased.
ix. Waste disposal facility construction contracts.Construction of incinerators and other facilities for disposal of solid wastes in whichproducts either generated therein, such as steam, or recovered therefrom, such as materialsfor recycling, are to be sold or otherwise disposed of; however, in constructing suchfacilities, a governing authority or agency shall publicly issue requests for proposals,advertised in the same manner as provided herein for seeking bids for public constructionprojects, concerning the design, construction, ownership, operation and/or maintenance ofsuch facilities, wherein such requests for proposals when issued shall contain terms andconditions relating to price, financial responsibility, technology, environmentalcompatibility, legal responsibilities and such other matters as are determined by thegoverning authority or agency to be appropriate for inclusion; and after responses to therequest for proposals have been duly received, the governing authority or agency may selectthe most qualified proposal or proposals on the basis of price, technology and other relevantfactors and from such proposals, but not limited to the terms thereof, negotiate and entercontracts with one or more of the persons or firms submitted proposals.
x. Hospital group purchase contracts.Supplies, commodities and equipment purchased by hospitals through group purchaseprograms pursuant to Section §31-7-38.
xi. Information technology products.Purchases of information technology products made by governing authorities under theprovisions of purchase schedules, or contracts executed or approved by the MississippiDepartment of Information Technology Services and designated for the use by governingauthorities.
xii. Energy efficiency services and equipment.Energy efficiency services and equipment acquired by school districts, community andjunior colleges, institutions of higher learning and state agencies or other applicablegovernmental entities on a shared-savings, lease or lease-purchase basis pursuant to Section§31-7-14.
xiii. Municipal electrical utility system fuel.Purchases of coal and/or natural gas by municipally owned electric power generatingsystems that have the capacity to use both coal and natural gas for the generation of electricpower.
xiv. Library books and other reference materials.Purchases by libraries or for libraries of books and periodicals; processed film,videocassette tapes, filmstrips and slides; recorded audiotapes, cassettes and diskettes; andany such items as would be used for teaching, research or other information distribution;however, equipment such as projectors, recorders, audio or video equipment, and monitortelevisions are not exempt under this subparagraph.
xv. Unmarked vehicles.Purchases of unmarked vehicles when such purchases are made in accordance withpurchasing regulations adopted by the Department of Finance and Administration pursuantto Section §31-7-9(2).
xvi. Election ballots.Purchases of ballots printed pursuant to Section §23-15-351.
xvii. Multichannel interactive video systems.From and after July 1, 1990, contracts by Mississippi Authority for Educational Televisionwith any private educational institutions or private nonprofit organization whose purposesare educational in regard to the construction, purchase, lease or lease-purchase of facilitiesand equipment and the employment of personnel for providing multichannel interactivevideo systems (ITSF) in the school districts of this state.
xviii. Purchases of prison industry products by the Department of Corrections,
regional correctional facilities or privately owned prisons.Purchases made by the Mississippi Department of Corrections, regional correctionalfacilities or privately owned prisons involving any item that is manufactured, processed,grown or produced from the state’s prison industries.
xix. Undercover operations equipment.Purchases of surveillance equipment or any other high-tech equipment to be used by lawenforcement agents in undercover operations, provided that any such purchase shall be incompliance with regulations established by the Department of Finance and Administration.
xx. Junior college books for rent.Purchases by community or junior colleges of textbooks which are obtained for the purposeof renting such books to students as part of a book service system.
xxi. Certain school district purchases.Purchases of commodities made by school district from vendors with which any levyingauthority of the school district, as defined in Section §37-57-1, has contracted throughcompetitive bidding procedures for purchases of the same commodities.
xxii. Garbage, solid waste and sewage contracts.Contracts for garbage collection or disposal, contracts for solid waste collection or disposaland contracts for sewage collection or disposal.
xxiii. Municipal waste tank maintenance contracts.Professional maintenance program contract for the repair or maintenance of municipalwater tanks, which provide professional services need to maintain municipal water storagetanks for a fixed annual fee for a duration of two (2) or more years.
xxiv. Purchases of Mississippi Industries for the Blind products.Purchases made by state agencies or governing authorities involving any item that ismanufactured, processed or produced by the Mississippi Industries for the Blind.
xxv. Purchases of state-adopted textbooks.Purchases of state-adopted textbooks by public school districts.
xxvi. Certain purchases under the Mississippi Major Economics Impact Act.Contracts entered into pursuant to the provisions of Section §57-75-9 (2), (3) and (4).
xxvii. Used heavy or specialized machinery or equipment for installation of soil and
water conservation practices purchased at auction.Used heavy or specialized machinery or equipment used for the installation andimplementation of soil and water conservation practices or measures purchased subject tothe restrictions provided in Sections §69-27-331 through §69-27-341. Any purchase by theState Soil and Water Conservation Commission under the exemption authorized by thissubparagraph spread upon the minutes of the commission to include the listing of the itemor items authorized to be purchased and the maximum bid authorized to be paid for eachitem or items.
xxviii. Hospital lease of equipment or services.Leases by hospitals of equipment or services if the leases are in compliance with paragraph(1) (ii).
xxix. Purchases made pursuant to qualified cooperative purchasing agreements.Purchases made by certified purchasing offices or state agencies or governing authoritiesunder cooperative purchasing agreements previously approved by the Office of Purchasingand Travel and established by or for any municipality, county, parish or state government orthe federal government, provided that the notification to potential contractors includes aclause that sets forth the availability of the cooperative purchasing agreement to othergovernmental entities. Such purchases shall only be made if the use of the cooperativepurchasing agreements is determined to be in the best interest of the governmental entity.
xxx. School yearbooks.Purchases of school yearbooks by state agencies or governing authorities; provided,however, that state agencies and governing authorities shall use for these purchases the RFPprocess as set forth in the Mississippi Procurement Manual adopted by the Office ofPurchasing and Travel.
xxxi. Design-build method and dual-phase design-build method of contracting.Contracts entered into under the provisions of Section §31-7-13,1, §37-101-44 or §65-1-85.
xxxii. Toll roads and bridge construction projects.Contracts entered into under the provisions of Section §65-43-1 or §65-43-3.
xxxiii. Certain purchases under Section §57-1-221.Contracts entered into pursuant to the provisions of Section §57-1-221.
xxxiv. Certain transfers made pursuant to the provisions of Section §57-105-1 (7).Transfers of public property or facilities under Section §57-105-1 (7) and constructionrelated to such pubic property or facilities.
xxxv. Certain purchases or transfers entered into with local electrical power
associations. Contracts or agreements entered into under the provision of Section §55-3-33.
n. Term contract authorization.All contracts for the purchase of:
(i) All contracts for the purchase of commodities, equipment and public construction (including, but not limited to, repair and maintenance), may be let for periods of not morethan sixty (60) months in advance, subject to applicable statutory provisions prohibiting theletting of contracts during specified periods near the end of terms of office. Term contractsfor a period exceeding twenty-four (24) months shall also be subject to ratification orcancellation by governing authority boards taking office subsequent to the governingauthority board entering the contract.(ii) Bid proposals and contracts may include price adjustment clauses with relation to
thecost to the contractor based upon a nationally published industry-wide or nationallypublished and recognized cost index. The cost index used in a price adjustment clause shallbe determined by the Department of Finance and Administration for the state agencies andby the governing board for governing authorities. The bid proposal and contract documentsutilizing a price adjustment clause shall contain the basis and method adjustment unit pricesfor the change in the cost of such commodities, equipment and public construction.
o. Purchase law violation prohibition and vendor penalty.
No contract or purchase as herein authorized shall be made for the purpose ofcircumventing the provisions of this section requiring competitive bids, nor shall it belawful for any person or concern to submit individual invoices for amounts within thoseauthorized for a contract or purchase where the actual value of the contract or commoditypurchase exceeds the authorized amount and the invoices therefor are split so as to appearto be authorized as purchases for which competitive bids are not required. Submission ofsuch invoices shall constitute a misdemeanor punishable by a fine of not less than FiveHundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), or byimprisonment for thirty (30) days in the county jail, or both such fine and imprisonment. Inaddition, the claim or claims submitted shall be forfeited.
p. Electrical utility petroleum-based equipment purchase procedure.
When in response to a proper advertisement therefor, no bid firm as to price is submitted toan electric utility for power transformers, distribution transformers, power breakers,reclosers or other articles containing a petroleum product, the electric utility may accept thelowest and best bid therefor although the price is not firm.
q. Fuel management system bidding procedure.
Any governing authority or agency of the state shall, before contracting for the services andproducts of a fuel management or fuel access system, enter into negotiations with not fewerthan two (2) sellers of fuel management or fuel access system for competitive written bidsto provide the services and products for the systems. In the event that the governingauthority or agency cannot locate two (2) sellers of such systems or cannot obtain bids fromtwo (2) sellers of such systems, it shall show proof that it made a diligent, good-faith effortto locate and negotiate with two (2) sellers of such systems. Such proof shall include, butnot be limited to, publications of a request for proposals and letter soliciting negotiationsand bids. For purpose of this paragraph (q), a fuel management or fuel access system is anautomated system of acquiring fuel for vehicles as well as management reports detailingfuel use by vehicles and drivers, and the term “competitive written bid” shall have themeaning as defined in paragraph (b) of this section. Governing authorities and agenciesshall be exempt from this process when contracting for the services and products of fuelmanagement or fuel access systems under the terms of a state contract established by the
Office of Purchasing and Travel.
r. Solid waste contract proposal procedure.
Before entering into any contract for garbage collection or disposal, contract for solid wastecollection or disposal or contract for sewage collection or disposal, which involved anexpenditure of more than Fifty Thousand Dollars ($50,000.00), a governing authority oragency shall issue publicly a request for proposals concerning the specifications for suchservices which shall be advertised for in the same manner as provided in this section forseeking bids for purchases which involve an expenditure of more than the amount providedin paragraph (c) of this section. Any request for proposals when issued shall contain termsand conditions relating to price, financial responsibility, technology, legal responsibilitiesand other relevant factors as are determined by the governing authority or agency to beappropriate for inclusion; all factors determined relevant by the governing authority oragency or required by this paragraph (r) shall be duly included in the advertisement to elicitproposals. After responses to the request for proposals have been duly received, thegoverning authority or agency shall select the most qualified proposal or proposals on thebasis of price, technology and other relevant factors and from such proposals, but notlimited to the terms thereof, negotiate and enter into contracts with one or more of thepersons or firms submitting proposals. If the governing authority or agency deems none ofthe proposals to be qualified or otherwise acceptable, the request for proposals process maybe reinitiated. Notwithstanding any other provisions of this paragraph, where a county with
at least thirty-five thousand (35,000) nor more than forty thousand (40,000) population,according to the 1990 federal decennial census, owns or operates a solid waste landfill, thegoverning authorities of any other county or municipality may contract with the governingauthorities of the county owning or operating the landfill, pursuant to a resolution dulyadopted and spread upon the minutes of such governing authority involved, for garbage orsolid waste collection or disposal services through contract negotiations.
s. Minority set-aside authorization.
Notwithstanding any provisions of this section to the contrary, any agency or governingauthority, by order placed on its minutes, may, in its discretion, set aside not more thantwenty percent (20%) of its anticipated annual expenditures for the purchase ofcommodities from minority businesses; however, all such set-aside purchases shall complywith all purchasing regulations promulgated by the Department of Finance andAdministration and shall be subject to bid requirements under this section. Set-asidepurchases for which competitive bids are required shall be made from the lowest and bestminority business bidder. For the purpose of this paragraph, the term “minority business”means a business which is owned by a majority of persons who are United States citizens orpermanent resident aliens (as defined by the Immigration and Naturalization Service) of theUnited States, and who are Asian, Black, Hispanic or Native American, according to thefollowing definitions:
i. “Asian” means persons having origins in any of the original people of the Far East,Southeast Asia, Indian subcontinent, or the Pacific Islands.
ii. “Black” means persons having origins in any black racial group of Africa.iii. “Hispanic” means persons of Spanish or Portuguese culture with origins in Mexico,
South or Central America, or the Caribbean Islands, regardless of race.iv. “Native American” means persons having origins in any of the original people of
North America, including American Indians, Eskimos and Aleuts.
t. Construction punch list restriction.
The architect, engineer or other representative designated by the agency or governingauthority that is contracting for public construction or renovation may prepare and submitto the contractor only one (1) preliminary punch list of items that do not meet the contractrequirements at the time of substantial completion and one (1) final list immediately beforefinal completion and final payment.
u. Procurement of construction services by state institutions of higher learning.
Contracts for privately financed construction of auxiliary facilities on the campus of a stateinstitution of higher learning may be awarded by the Board of Trustees of State Institutionsof Higher Learning to the lowest and best bidder, where sealed bids are solicited, or to theofferor whose proposal is determined to represent the best value to the citizens of the Stateof Mississippi, where requests for proposals are solicited.
v. Insurability of bidders for public construction or other public contracts.
In any solicitation for bids to perform public construction or other public contracts to whichthis section applies including, but not limited to, contracts for repair and maintenance, forwhich the contract will require insurance coverage in an mount of not less than One MillionDollars ($1,000.000.00), bidders shall be permitted to either submit proof of currentinsurance coverage in the specified amount or demonstrate ability to obtain the requiredcoverage amount of insurance if the contract is awarded to the bidder. Proof of insurancecoverage shall be submitted within five (5) business days from bid acceptance.
w. Purchase authorization clarification.
Nothing in this section shall be construed as authorizing any purchase not authorized bylaw.
SECTION 17.
This act shall take effect and be in force from and after July 1, 2017.
LEGAL REFERENCES: Senate Bill 2674Chapter 7, Title 31, Mississippi Code of 1972Section §27-104-7, Mississippi Code of 1972, As AmendedSection §25-1-69Section §25-3-41Section §25-11-127Section §31-7-38Section §31-7-9(2)Section §23-15-351Sections §69-27-331 through §69-27-341Section §31-7-13-1, §37-101-44, §65-1-85Section §57-1-221Section §57-105-1(7)
Board Approved 8/14/2018
1. Except in regard to purchases of unmarked vehicles made in accordance with purchasingregulations adopted by the Department of Finance and Administration pursuant to Section§31-7-9(2), the Picayune School District shall purchase commodities at the State contractprice from the approved source, unless approval is granted by the Department of Financeand Administration to solicit purchases outside the terms of the contract. However, pricesaccepted shall be less than the prices set by the State contract.
2. The Picayune School District may purchase commodities without regard to the Statecontract price established by the Department of Finance and Administration when suchpurchase involves an expenditure of less than the amount established by the State,exclusive of freight or shipping charges, provided that such purchase is made in the usualand customary price of such commodities within the locality involved and such price is notexcessive.
3. The Picayune School District may purchase commodities approved by the Department ofFinance and Administration from the State contract vendor, or from any source offering theidentical commodity, at a price not exceeding the State contract price established by theDepartment of Finance and Administration for such commodity, without obtaining oradvertising for competitive bids, when such purchase involves an expenditure of more thanthe amount established by the State, exclusive of freight or shipping charges.
4. Nothing in this section shall prohibit governing authorities from purchasing, pursuant tosubsections (2) and (3) of this section, commodities approved by the Department of Financeand Administration at a price not exceeding the State contract price established by theDepartment of Finance and Administration.
5. The Department of Finance and Administration shall ensure that the prices of allcommodities on the State contract are the lowest and best prices available from any source
PURCHASE ORDERS AND CONTRACTS DJEG
offering that commodity at the same level of quality or service, utilizing the reasonablestandards established therefor by the Department of Finance and Administration. If theDepartment of Finance and Administration does not list an approved price for the particularitem involved, purchase shall be made according to statutory bidding and licensingrequirements.
6. The Picayune School District may purchase commodities from vendors with which anylevying authority of the Picayune School District, as defined in Section §37-567-1, hascontracted through competitive bidding procedures pursuant to Section §31-7-13 forpurchases of the same commodities.
The term “purchase” shall mean the total amount of money encumbered by a single purchase order.
Each “notice to bidders” shall contain the following language:
A. The Board of Trustees reserves the right to reject any and all bids.B. The Board of Trustees reserves the right to waive any irregularities.
Designated purchasing agents shall purchase their commodities and printing, contract for fireinsurance, automobile insurance, casualty insurance (other than workers’ compensation) andliability insurance; contract for garbage collection or disposal; contract for solid waste collection ordisposal; contract for sewage collection or disposal; and shall contract for public construction asherein provided.
a. Purchases which involve an expenditure of less than the low established State amount,exclusive of freight or shipping charges, may be made without advertising or otherwiserequesting competitive bids. Provided, however, that nothing contained in this paragraphshall be construed to prohibit the Board of Trustees from establishing procedures whichrequire competitive bids on purchases of the low established State amount or less.
b. Purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00)but not more than Twenty Five Thousand Dollars ($25,000.00), exclusive of freight andshipping charges, may be made from the lowest and best bidder without publishing orposting advertisement for bids, provided at least two (2) competitive written bids have beenobtained. The term “competitive written bid” shall mean a bid submitted on a bid formfurnished by the buying agency or governing authority and signed by authorized personnelrepresenting the vendor, or a bid submitted on a vendor’s letterhead or identifiable bid formand signed by authorized personnel representing the vendor.
c. Purchases which involve an expenditure of more than the Twenty Five Thousand Dollars($25,000.00) amount, exclusive of freight and shipping charges, may be made from thelowest and best bidder after advertising for competitive sealed bids once each week for two(2) consecutive weeks in a regular newspaper published in the county or municipality inwhich such agency or governing authority is located. The date as published for the bidopening shall be not less that seven (7) working days after the last published notice;
however, if the purchase involves a construction project in which the estimated cost is inexcess of the Twenty Five Thousand Dollars ($25,000.00) amount, such bids shall not beopened in less that fifteen (15) working days after the last notice is published and the noticefor the purchase of such construction shall be published once each week for two (2)consecutive weeks. The notice of intention to let contracts or purchase equipment shallstate the time and place at which bids shall be received, list the contracts to be made ortypes of equipment or supplies to be purchased, and, if all plans and/or specifications arenot published, refer to the plans and/or specifications on file. Specifications pertinent tosuch bidding shall be written so as not to exclude comparable equipment of domesticmanufacture.
d. (i) Purchases may be made from the lowest and best bidder. In determining the lowest andbest bid, freight and shipping charges shall be included. If the Board of Trustees accepts abid other than the lowest bid actually submitted, it shall place on its minutes detailedcalculations and a narrative summary showing that the accepted bid was determined to bethe lowest and best bid, including the dollar amount of the accepted bid and the dollaramount of the lowest bid.
(ii) If the lowest and best bid is not more than ten percent (10%) above the amount of fundsallocated for a public construction or renovation project, then the Board of Trustees maynegotiate with the lowest bidder in order to enter into a contract for an amount not toexceed the funds allocated.
(iii) Whenever bids are solicited for a public construction or renovation project and onlyone (1) bid is received, the Board of Trustees may accept such bid as opened, it is withinthe funds allocated for the project, it is responsive to the solicitation and the contractor iscapable of performing the contract in accordance with the solicitation.
e. Any lease-purchase of equipment which the Board of Trustees elects to lease-purchase maybe acquired by a lease-purchase agreement under this paragraph (e). Lease-purchasefinancing may also be obtained from the vendor or from a third party source after havingsolicited and obtained at least two (2) written competitive bids, as defined in paragraph (b)of this section, for such financing without advertising for such bids. Solicitation for thebids for financing may occur before or after acceptance of bids for the purchase of suchequipment or, where no such bids for purchase are required, at any time before the purchasethereof. No such lease-purchase agreement shall be for an annual rate of interest which isgreater than the overall maximum interest rate to maturity on general obligationindebtedness permitted under Section §75-17-101, and the term of such lease-purchaseagreement shall not exceed the useful life of property covered thereby as determinedaccording to the upper limit of the asset depreciation range (ADR) guidelines for the ClassLife Asset Depreciation Range System established by the Internal Revenue Service. However, nothing contained in this section shall be construed to permit agencies to acquireitems of equipment with a total acquisition cost in the aggregate of less than the highestablished state amount single lease-purchase transaction.
f. When necessary to insure ready availability of commodities for public works and the timelycompletion of public projects, no more than two (2) alternate bids may be accepted by theBoard of Trustees for commodities. No purchases may be made through use of suchalternate bids procedure unless the lowest and best bidder, for reasons beyond his controlcannot deliver the commodities contained in his bid.
g. In the event a determination is made by the Board of Trustees after a construction is let thatchanges or modifications to the original contract are necessary or would better serve thepurpose of the Board of Trustees, the Board of Trustees may, in its discretion, order suchchanges pertaining to the construction that are necessary under the circumstances withoutthe necessity of further public bids; provided that such change shall be made in acommercially reasonable manner and shall not be made to circumvent the pubic purchasingstatues. In addition to any other authorized person, the architect or engineer hired by theBoard of Trustees with respect to any public construction contract shall have the authority,when granted by the Board of Trustees, to authorize changes or modifications to theoriginal contract without the necessity of prior approval of the Board of Trustees when anysuch change or modification is less than one percent (1%) of the total contract amount.
h. In the event the Board of Trustees shall have advertised for bids for the purchase of gas,diesel fuel, oils and other petroleum products, and coal and no acceptable bids can beobtained, the Board of Trustees is authorized and directed to enter into any negotiationsnecessary to secure the lowest and best contract available for the purchase of suchcommodities.
i. Should the Board of Trustees be authorized to enter into contracts for the construction,maintenance, surfacing or repair of highways, roads or streets, it may include in its bidproposal and contract documents a price adjustment clause with relation to the cost to thecontractor, including taxes, based upon industry-wide cost index, of petroleum products,including asphalt, used in the performance or execution of the contract or in the productionor manufacture of materials for use in such performance.
j. If the Board of Trustees shall determine that an emergency exists in regard to the purchaseof any commodities or repair contracts, so that the delay incident to giving opportunity forcompetitive bidding would be detrimental to the interest of the Board of Trustees, then theprovisions herein for competitive bidding shall not apply. Any officer having general orspecial authority in making such purchase or repair shall approve the bill presented. At thenext meeting the emergency purchase or repair contract, including a description of thecommodity purchased, the price thereof and the nature of the emergency shall be placed onthe minutes of the Board of Trustees.
k. Excepted from bid requirements are:
(i) Purchasing agreements, contracts and maximum price regulations executed or approvedby the Department of Finance and Administration:
(ii) Repairs to equipment, when such repairs are made by repair facilities in the privatesector; however, engines, transmissions, rear axles and/or other such components shall notbe included in this exemption when replaced as a complete unit instead of being repaired.
(iii) Purchases of parts for repairs to equipment, which such repairs are made by personnelof the Picayune School District; however, entire assemblies, such as engines ortransmissions, shall not be included in this exemption when the entire assembly is beingreplaced instead of being repaired;
(iv) Raw unprocessed deposits of gravel or fill dirt which are to be removed and transportedby the purchaser;
(v) Motor vehicles or other equipment purchased from a federal or State agency or agoverning authority at a public auction held for the purpose of disposing of such vehicles orother equipment. Any purchase by the Board of Trustees, shall require advanceauthorization spread upon the minutes of the Board of Trustees to include the listing of theitems or items to be purchased and the maximum bid authorized to be paid for each item oritems;
(vi) Purchases, sales, transfers or trades by governing authorities when such purchases,sales, transfers or trades are made by a private treaty agreement or through means ofnegotiation, from any federal agency or authority, another governing authority or Stateagency of the State of Mississippi, or any State agency of another State adjacent to the Stateof Mississippi.
(vii) Perishable supplies or foods purchased for use in connection with the school lunch andhomemaking programs;
(viii) Noncompetitive items available from one (1) source only;
(ix) Purchases of data processing equipment made under the provisions of purchaseagreements, contracts or maximum price regulations executed or approved by the StateCentral Data Processing Authority;
(x) Energy efficiency services and equipment acquired by the Picayune School District on ashared-savings, lease or lease-purchase basis pursuant to Section §31-7-14;
(xi) Purchases of contracts for fire insurance, automobile insurance, casualty insurance,health insurance and liability insurance by the Board of Trustees;
(xii) Purchases by libraries or for libraries of books and periodicals; processed film, videocassette tapes, filmstrips and slides; recorded audio tapes; cassettes and diskettes; and anysuch items as would be used for teaching, research or other information distribution;however, equipment such as projectors, recorders, auto or video equipment, and monitortelevisions are not exempt under this paragraph;
(xiii) Sales, transfers or trades of any personal property between governing authoritieswithin a county or any such transaction involving governing authorities of two (2) or morecounties;
(xiv) Purchases of commodities made by school districts from vendors with which anylevying authority of the school district, as defined in Section §37-57-1, has contractedthrough competitive bidding procedures for purchases of the same commodities;
(xv) Contracts for garbage collection or disposal, contracts for solid waste collection ordisposal, and contracts for sewage collection or disposal.
In connection with the purchase of noncompetitive items only available from one (1) source, acertification of the conditions and circumstances requiring the purchase shall be approved by theBoard of Trustees.
1. All contracts for the purchase of:
(a) Commodities, equipment, and public construction (including but not limited to, repairand maintenance), and
(b) Water lines, sewer lines, storm drains, drainage ditches, asphalt milling, traffic striping,asphalt overlay of streets, and curb and gutter, (not to exceed One Hundred Fifty ThousandDollars ($150,000.00) per project listed in item (B) may be let for periods of not more thantwenty four (24) months in advance.
2. No contract or purchase as herein authorized shall be made for the purpose ofcircumventing the provisions of this section requiring competitive bids, nor shall it belawful for any person or concern to submit individual invoices for amounts within thoseauthorized for such contract or purchase where the actual value of the contract orcommodity purchased exceeds such amount and the invoices therefor are split so as toappear to be authorized as purchases for which competitive bids are not required. Submission of such invoices shall constitute a misdemeanor punishable by a fine of not lessthat Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), orby imprisonment for thirty (30) days in the county jail, or both such fine and imprisonment. In addition, the claim or claims submitted shall be forfeited.
3. The prohibitions and restrictions set forth in Section §19-11-27, Section §21-35-27, andSection §31-7-49 shall not apply to a contract, lease or lease-purchase agreement enteredpursuant to the requirements of the purchasing law.
4. For the purposes of this section, the term “purchase” shall mean the total amount of moneyencumbered by a single purchase order.
The Board of Trustees shall, before contracting for the services and products of a fuel managementor fuel access system, enter into negotiations with not fewer than two (2) sellers of fuel
management or fuel access system for competitive written bids to provide the services andproducts for the systems.
1. Before entering into any contract for garbage collection or disposal, contract for solid wastecollection of disposal or contract for sewage collection or disposal, which involves anexpenditure of more than Fifty Thousand Dollars ($50,000.00), the Board of Trustees shallissue publicly a request for proposals concerning the specifications for such services whichshall be advertised for in the same manner as provided in this section for seeking bids forpurchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00).
2. The Picayune School District, may, in its discretion, set aside not more than twenty percent(20%) of its anticipated annual expenditures for the purchase of commodities from minoritybusinesses. Set-aside purchases for which competitive bids are required shall be madefrom the lowest and best minority business bidder.
3. The architect, engineer, or other representative designated by the Board of Trustees that iscontracting for public construction or renovation may prepare and submit to the contractoronly one (1) preliminary punch list of items that do not met the contract requirements at thetime of substantial completion and one (1) final list immediately before final completionand final payment.
4. Nothing in this section shall be construed as authorizing any purchase not authorized bylaw. Section §31-7-13 (1996)
PREFERENCE
Whenever two (2) or more competitive bids are received, one or more of which relates tocommodities grown, processed, or manufactured within this State, and whenever all things statedin such received bids are equal with respect to price, quality, and service, the commodities grown,processed, or manufactured within this State shall be given preference.
In the letting of public contracts, resident contractors actually domiciled in Mississippi, be theycorporate, individuals or partnerships, are to be granted preference over nonresidents in awardingof contracts in the same manner and to the same extent as provided by the laws of the State, city,county, parish, nation or political subdivision of domicile or the nonresident. Section §31-7-47(1995)
EXEMPTIONS
Supplies that are perishable or foods purchased for use in connection with the school lunchprograms shall be exempt from competitive bid requirements.
Purchases of items regularly used in connection with school operation shall not be made in smallquantities for the purpose of circumventing the law requiring competitive bids or quotations, butshall be purchased by contract when feasible.
GRATUITIES
Any rebates, refunds, coupons, merit points, gratuities, or any article of value tendered or receivedby their school district from any vendor of material, supplies, equipment or other articles shallaccrue to the benefit of the Picayune School District.
It is hereby declared to be unlawful and a violation of public policy of the State of Mississippi forthe Board of Trustees or any designated purchasing agent for the Picayune School District to
make any purchases without the full compliance with the provisions of Chapter 7, Title 31,Mississippi Code of 1972.
Any person diverting the benefits of any article of value tendered or received by the PicayuneSchool District to his or her personal use, in violation of Section §31-7-23, if the value of sucharticles be less than Five Hundred Dollars ($500.00), shall be guilty of a misdemeanor and, uponconviction, shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor morethan $500.00), or sentenced to the county jail for not more than six (6) months, or by both such fineand imprisonment, shall be removed from his office or position, and shall be required to return themoney value of the article unlawfully diverted to the Board of Trustees. If the value of the articlebe Five Hundred Dollars ($500.00) or more, such person shall be guilty of a felony and, uponconviction, shall be punished by a fine of not less that One Thousand Dollars ($1,000.00) nor morethan Five Thousand Dollars ($5,000.00), or sentenced to the Department of Corrections for not lessthan one (1) year nor more than five (5) years, or by both such fine and imprisonment, shall beremoved from his office or position, and shall be required to return the money value of the articleunlawfully diverted to the Board of Trustees.
The provisions of this section are supplemental to any other criminal statutes of this state.Section §31-7-55 (Oct. 1988)
LIABILITY
The Superintendent, any employee or agent of the Board of Trustees, who appropriates orauthorizes the expenditure of any money to an object not authorized by law, shall be liablepersonally for up to the full amount of the appropriation or expenditure as will fully andcompletely compensate and repay such public funds for any actual loss caused by suchappropriation or expenditure. In the case of the Board of Trustees, only the individual members ofthe Board of Trustees who voted for the appropriation or authorization for expenditure shall beliable under this subsection.
No individual member of the Board of Trustees, or agent of the Board of Trustees shall letcontracts or purchase commodities or equipment except in the manner provided by law; nor shallthe Board of Trustees ratify any such contract or purchase made by any individual member,employee or agent thereof, pay for the same out of public funds unless such contract or purchasewas made in the manner provided by law.
The individual members, employees or agents of the Board of Trustees causing any pubic funds tobe expended, any contract made or let, any payment made, without complying with any statue ofthe State of Mississippi, shall be liable, individually, and upon their official bond, forcompensatory damages, up to the full amount of such contract, purchase, expenditure of payment,and will completely compensate and repay such public funds for any actual loss caused by suchunlawful expenditure.
In addition to the foregoing provision, for any violation of any statute of the State of Mississippiprescribing the manner in which contracts shall be let, purchases made, expenditure of paymentmade, any individual member, employee or agent of the Board of Trustees who shall substantiallydepart from the statutory method of letting contracts, making payments thereon, making purchasesor expending public funds shall be liable, individually and on his official bond, for penal damagesin such amount up to three (3) times the amount of the contract, purchase, expenditure, or payment.
Except as otherwise provided, any individual member of the Board of Trustees as defined in Section §311-7-1 shall not be individually liable under this section if he voted for contracts let orpurchases made contrary to law and had his vote recorded in the official minutes of the Board ofTrustees at the time of such vote, or was absent at the time of vote. Section §31-7-57 (Oct. 1988)
When the Picayune School District has been required to have a charge account card with a vendor,it has requested a card for each school or department to better manage the purchasing process foreach location. Since the card must be taken to the store for identification, each school mustmaintain a check-out sheet for its card. First, the employee must obtain an approved purchaseorder. Then, he/she must obtain authorization to take the identification card from the building tothe store to make the purchase. The check-out sheet shall contain the following information:
• check-out date,• signature of employee signing out the card,• signature of the principal, director, or supervisor authorizing the release of the card, and• check-in date with initials of both the employee and the principal, director, or supervisor,
Failure to follow the internal accounting control procedures will result in the loss of the privilegeby the school or department to use this charge account system.
In the event an employee or volunteer misuses the credit card, he/she will be personally responsiblefor said authorized expenses.
CHARGE ACCOUNTS DJEH
It is the policy of the Picayune School District to authorize the use of a District cardless travelaccount by the Superintendent, Business Manager, and Accountant consistent with the rules andregulations of the Mississippi Department of Finance and Administration under Section §31-7-9.
• All leases will be approved and signed by the Board of Trustees.
• Originals of all leases will be secured in the vault in Accounting.
• Copies of all leases will be maintained by the school/department responsible for meetingthe lease requirements.
LEASES DJEI
• The Finance Director will seek proposals for all the insurance coverages required by theDistrict. Approval by the Board of Trustees is required.
• Insurance policies will be maintained in insurance files by the Finance Director.
• Insurance policies will be carefully reviewed by the Finance Director before renewal.
• Adequate property coverage will be maintained for buildings, vehicles, and equipment. Liability, school leader’s insurance, and Fidelity insurance will also be maintained.
INSURANCE DJEJ
• Telephone records for all long distance telephone calls will be reviewed monthly by theAccounts Payable Clerk.
• Personal telephone calls are discouraged but are sometimes necessary. Accordingly, thePrincipal/Director is responsible for insuring against abuse of this privilege and insuringthat fees for personal calls are collected from the employees and submitted to Accountingwhen appropriate.
TELEPHONE DJEK
• All grants and contracts shall be approved by the Board of Trustees.
• All Early Head Start grants and contracts shall be approved by the Board of Trustees andthe Early Head Start Policy Council.
• The Program Directors will carefully review each award to insure that all financialprovisions will be in compliance.
• The Program Directors will carefully review each award to insure that all programmaticprovisions will be in compliance.
• A copy of all grants and contracts will be maintained by the responsible Program Director.
• Original grants and contracts will be maintained by the Superintendent’s Office.
GRANTS AND CONTRACTS DJEL
Interfund Loans
• Interfund loans from the Picayune School District to Programs, if any, will be limited onlyto programs which are funded only on a reimbursement basis.
Third Party Loans
• Loans from outside sources (banks, etc.) must be approved by the Board of Trustees.
• All promissory notes and bonds must be signed by the Chairman of the Board of Trusteesand the Superintendent before funds are borrowed.
Employee Travel
• All travel advances to employees must be approved in writing by the Superintendent.
• Employee travel advances may not exceed the amount of reimbursements.
Employee Payroll Advances
• No loans are allowed for payroll advances.
LOANS DJEM
Employment Forms
• A Personnel Action Form will be completed by the Principal/Director and must beapproved by the Superintendent prior to approval by the Board of Trustees.
• The Personnel Officer will be responsible for seeing to it that all new employees shallprovide the following:
• Copy of social security card,• Copy of photo identification card, and• Copy of birth certificate.
• Complete the following:
• Form W-4, Employee Withholding Certificates and state withholding certificate,• Insurance application forms, and• All other employment forms.
• An employee’s hiring is not effective until the Personnel Action Form, and allemployments forms have been completed. No checks will be prepared for salary and wagesuntil these forms have been received by the Accounting Department.
Time Reports
• Each non-exempt employee will be responsible for completing his/her time report (reportcomes from time clocks) in a timely manner when employee’s time is not recorded by timeclocks. Additionally, each employee will complete a leave request form in advance.
• Completed time reports and leave requests will be signed by the employee and supervisor
PAYROLL DJF
and be submitted timely to the Accounting Department.
• Incomplete time reports will be returned to the supervisor and the employee’s paycheckwill be issued on the next payroll if it is not completed and returned by the specified datefor preparing the payroll.
• The supervisor will verify the accuracy of the time reports and mathematical correctnesswill be checked by the Payroll Clerk.
Payroll Reports
• The Payroll Clerk will prepare the payroll summary report.
• The accumulated sick, personal, and vacation leave reports will be calculated andmaintained by the Payroll Clerk.
• Leave balances will be reported to all employees on their paycheck stubs.
• An Accounting Clerk other than the Payroll Clerk will review the payroll checks beforethey are distributed.
• The Payroll Clerk will distribute the payroll checks to the Principals/Directors or theirassigned person for their department and the authorized person responsible for the payrollchecks will sign the form acknowledging receipt of payroll checks from the Payroll Clerk.
• The Accounting Department will be responsible for mailing the checks to the employeeswho have left the Picayune School District or are on leave.
• The Payroll Clerk will record the payroll in the payroll cash disbursement journal in thecomputer.
• The financial software will compute all taxes and fringe benefits.
Payroll Taxes
• The Payroll Clerk will pay the payroll taxes, and the Finance Director or Accountant willcompare the payroll taxes paid with the payroll worksheet and the check register.
• The Accountant will prepare payroll tax reports. The Finance Director will approve andsign all payroll tax reports.
The Activity Funds of the Picayune School District shall meet the general financial requirements ofthe Board of Trustees as established by policy.
Fund Classification: General or Agency
Activity funds at the local school will be classified either as General Fund or as an Agency Fund. Those funds that are established to account for the financial affairs of school-sponsored clubs willbe classified as Agency Funds, and all other funds will generally be accounted for as GeneralFunds.
Activity Funds shall mean all funds received or paid out for participation in a school activity. Suchactivity must be part of the school program and be partially financed with public funds orsupplemented with public funds. The term “activity funds” shall not include any funds raisedand/or expended by any other organization unless co-mingled in a bank account with existingschool activity funds. This is regardless of whether the funds were raised by school employees orreceived by school employees during school hours or using school facilities, and regardless ofwhether a school employee exercised influence over the expenditure or disposition of such funds.
Centralized Accounting System
The Picayune School District will use a Centralized Accounting System for its activity funds. Under this method of accounting, the receipt of funds takes place at the local school but is remitteddaily to Central Office for deposit. The expenditure of funds takes place at the Central Officethrough the authorization of a purchase order from the school. This method of accounting does notallow a school principal or any other school employee to write checks on the local school activityfunds. This system allows for the greatest amount of internal control by the Board of Trustees.
Bank Accounts
STUDENT ACTIVITIES FUND MANAGEMENT DK/JHB
Local school activity funds will be maintained in bank accounts of financial institutions selected asschool depositories by the Board of Trustees. To comply with State law, the Board of Trustees willinsure that adequate securities are pledged by the financial institution. The Superintendent willapprove the opening of any bank accounts for activity funds. A school principal does not have theauthority to open or close activity fund bank accounts. The Board of Trustees must approve theindividuals having the authority to sign checks on any activity fund bank accounts. The PicayuneSchool District has currently established that the deposits and checks of all the activity funds willbe maintained in the Picayune School District’s main bank account along with the Picayune SchoolDistrict’s regular business activities.
Receipts
The local school shall document the receipt of all local activity funds, donations, rentals, andextracurricular activities. A three-part receipt will be issued by the principal’s office for all fundsreceived. The teacher remitting the money will be given the original copy, the second copy will begiven to the teacher after money is counted and verified against the first receipt, and the third copywill remain in the permanent receipt book, where the receipts are bound and pre-numbered. Thereceipt must contain sufficient information to adequately account for the transaction. At aminimum, the receipt will contain the date, name of remitter, amount of remittance, type ofpayment (cash or check), description and the financial accounting code. A receipt summary sheetwill be sent to central office with the money. It will contain the receipt number, the general ledgernumber, the amount, and the fund raising method.
All school receipts will be remitted daily to the Central Office, which will deposit those funds thesame day. The deposit slip will show the receipt numbers and corresponding amounts for thedeposits being made. No amounts of moneys will remain on hand at the local school at any time.
Teachers who collect money from students must account for and document the funds collected. Atthe elementary schools, teachers are required, at a minimum, to list those students that have paidmoney and the amount of money paid by the students. At the secondary schools, teachers arerequired to have their own classroom receipt books and issue receipts for monies collected from allstudents. The principal’s office will issue a receipt to the teacher. The principal’s office willperiodically audit the teachers’ lists of students back to the receipt copies in the principal’s office.
Disbursements of checks
The disbursement of all activity funds will be made using pre-numbered checks. All expendituresmust be accounted for with invoices or other documentation pertaining to the transaction. Onlyindividuals authorized by the Board of Trustees may sign checks. There must be an accounting ofall pre-numbered checks issued.
Time lines/deadlines
Annually the Director of Finance will publish a list of deadlines for managers, employees, andvendors to submit invoices for payment. The date listed as the deadline is the date it must bereceived in the accounts payable department at the central office. Pay requests received after thedeadline will be paid at the next claims payment date. With proper planning, managers andemployees must anticipate the need for checks in order to meet the time lines.
Off line checks
The availability to utilize off-line vouchers is for unforseen events. Through “proper planning” theuse of off-line checks should be kept to a minimum and be the exception to the rule.
Preparation and Distribution
*The preparation of checks will occur at the Central Office. At no time will checks be allowed tobe taken from the Central Office premises.
*Checks are to be locked up with access only to employees authorized by the Director of Finance.
*Checks will be distributed by the accounts payable bookkeeper. No employee or vendor isallowed to take their checks until the accounts payable bookkeeper officially distributes them.
Purchasing
All local school activity fund expenditures made from funds classified as General Funds aresubject to the State purchase laws. Expenditures made from funds classified as Agency Funds arenot subject to the State purchase laws. As such, it is important to properly classify General andAgency Funds so as not to be in violation of state law.
All Board of Trustees’ procurement policies (DJE) for Picayune School District regularexpenditures shall also apply to local school activity funds. Picayune School District procurementpolicy requires the use of purchase requisitions, purchase orders, and receiving reports at the localschool. The current system of procurement contains procedures designed to provide adequatecontrols to insure compliance with the Picayune School District’s procurement guide, the Statepurchase laws, and Board of Trustees’ policy. Purchase orders will be pre-numbered and there willbe an accounting of all purchase orders.
Use of School Activity Funds
Activity funds shall be expended only for the following purposes: Travel expenses, includingadvances, incurred by students and their chaperons in attending school-related programs;commodities; equipment; travel expenses of school employees; purchased services; and schoolsupplies. Local school activity funds will not be used to compensate school employees.
Fund Raising Requirements
B. Sales or Rentals to Students (General Funds)
(a) As Fund Raising Activities:
Authority – The Board of Trustees will allow the local schools to conduct fundraising activities as part of the sale or rental of items to students.
Board of Trustees’ Policy – A Disclosure Statement will be made available toprospective purchasers of school pictures and graduation invitations and to thoserenting caps and gowns when the sale or rental of such items is being conducted as afund raising event. At a minimum, the statement must read “NOTICE: This sale isbeing conducted as a fund raising event. A portion of the sales price will becontributed to the local “Student Activity Fund.”
Accounting Procedures – The Board of Trustees will allow the student to paydirectly to the vendor the total amount of the sales or rental price including the fee. The vendor can later rebate to the local school the fee charged to the student. Underthis system, the school principal is required to obtain an independent listing of thestudents and the amounts paid by the students to the vendor. The independentlisting of the students will provide the local school with a mechanism to calculateand confirm the amount of the fee due the school by the vendor. The fee amountcollected from the vendor must be credited to the general activity fund, generalathletic fund, or other appropriate General Fund as determined by the Board ofTrustees.
(b) As Non-Fund Raising Activities:
Authority – The Board of Trustees will allow the local schools to sell or rent itemsto students that are not being conducted as a fund raising activity.
Board of Trustees’ Policy – In the attached list of activity funds this policy willdefine those non-fund raising activities.
Accounting Procedures – The Board of Trustees does allow the student to paydirectly to the vendor the amount due for the sale or rental of the item.
C. School-Sponsored Fund Raisers (General Funds)
School-sponsored fund raisers include any fund raising event approved by the Board ofTrustees as one sponsored or promoted by the local school. These include the operation ofvending machines, school stores, concession stands, carnivals, sales by principals and/orteachers to students, organized school-wide sales by students and similar types of fundraising activities. They should not be confused with fund raising events associated with a
school-sponsored club or outside organizations like the PTA, PTO, or Booster Clubs.
Authority – The Board of Trustees will allow the local schools to engage in school-sponsored fund raising activities.
Board of Trustees’ Policy – In the attached list of activity funds this policy will define thetypes of school-sponsored fund raising activities to be allowed. Each school principal willbe responsible for the fund raisers, the fees to be charged, and the prices of sale items. Inthe absence of Board of Trustees’ policy on a particular activity, a school principal may notengage in any school-sponsored fund raising efforts for that activity.
Accounting Procedures – The money collected through school-sponsored fund raisingactivities is required to be receipted according to the “Receipts” requirements of BoardPolicy DK. For all items that are purchased for resale to the students, there must be areconciliation of the items purchased to the items sold and the gross sales amount. Thereconciliation must be performed on a periodic basis and be submitted to the Central Officefor review and approval. The amount generated through school-sponsored fund raisingactivities must be accounted for in the local school general activity fund, general athleticfund, or other appropriate General Fund as determined by the Board of Trustees.
D. Club Sponsored Fund Raisers (Agency Funds)
Authority – The Board of Trustees will allow the local schools to establish, operate, andconduct fund raising activities for school-sponsored clubs.
Board of Trustees’ Policy – In the attached list of activity funds this policy will define thetypes of fund raising activities permitted by school-sponsored clubs.
Accounting Procedures – All fund raising activities by school-sponsored clubs will beaccounted for by the local school principal. A separate fund will be established for eachschool-sponsored club. The club funds will be accounted for as an Agency Fundclassification. The school principal will make available to the club a listing of all clubfinancial transactions and balances. The club fund transactions will be presented on themonthly transmittal report and be submitted to the Superintendent’s Office.
E. Fund Raisers by Outside Organizations (Not School Funds)
Authority – The Board of Trustees does allow the local schools to collect funds for thePTA, PTO, and three (3) Booster Clubs (Band, Athletics, and Pride of the Tide) by schoolemployees during school hours. The funds collected by school employees on behalf of theoutside organization are not considered Activity Funds.
Board of Trustees’ Policy – The PTA, PTO, the Band Boosters, the Athletic Boosters, andthe Pride of the Tide Boosters will be permitted to use school employees during schoolhours to collect funds on behalf of the organization. In the absence of approval by the
Board of Trustees of a particular organization, a school principal may not permit that entityto engage in fund raising activities using school employees during school hours.
Accounting Procedures – There are no accounting requirements. Since the funds are notconsidered activity funds, the local school is not required to be accountable for the funds. These funds should not be deposited into any School Activity Fund, nor should the funds bekept on hand overnight.
Student Fees (General Funds)
A. Workbooks, Lab, Paper, and Other Educational Material
Authority – The School Board will allow the local schools to charge a reasonable fee, not toexceed the actual cost, to students for:
(a) Supplemental instructional materials and supplies,(b) Other fees designated by the school board as fees related to a valid curriculum
objective, and(c) Extracurricular activities and other educational activities not designed as a valid
curriculum objective.
Board of Trustees’ Policy – Annually, the Board of Trustees will review and approve all thefees assessed to students for workbooks, lab, paper, and other educational material.
Accounting Procedures – The fees collected from students will be receipted into the schoolprincipal’s office in accordance with the “Receipts” requirement of Board Policy DK. Themoney collected will be accounted for in the general activity fund of the local school.
B. Hardship Wavier Policy
Board of Trustees’ Policy – The Board of Trustees will allow a hardship waiver for thosestudents who are unable to pay any fees assessed for workbooks, lab, paper, and othereducational material. This policy should be furnished to the student at the time the fee isassessed.
Miscellaneous
A. Private Lessons During School Hours
Board of Trustees’ Policy – The Board of Trustees does not allow individual lessons formusic, art, and other curriculum related activities for academic or non-academic creditduring school hours and using school equipment.
B. Band Instruments and Extracurricular Activities
Board of Trustees’ Policy – The Board of Trustees does allow the local schools to chargestudents for participating in an extracurricular activity for academic or non-academic creditfor necessary and required safety equipment, band instruments, and uniforms.
C. Charity Organizations
Board of Trustees’ Policy - The Board of Trustees will allow the local schools to conduct orparticipate in fund raising activities on behalf of or in connection with a tax-exemptcharitable organization. Those organizations that will be allowed to conduct fund raisingactivities in the local schools will have to receive individual approval by the Board ofTrustees. In the absence of a Board of Trustees’ policy, this authority cannot be delegatedto the local school principal. The following charity organizations are approved: AmericanHeart Association, American Lung Association, American Cancer Fund, United Way, BoyScouts of America, Girl Scouts of American, St. Jude Children’s Hospital, and Boys andGirls Club.
Accounting Procedures – The money collected by the teacher and/or school principalshould be remitted directly to the charitable organization when practical. When this is notpractical, the principals will remit the funds to Central Office for deposit, as a safekeepingmeasure, until the organization requests the funds. No fund should be kept in the schoolsovernight.
Listed below are steps that must be followed in the receipt, collections, and the depositing ofstudent activity funds with the Central Office. Any deviation from these procedures could result inpersonal responsibility of the personnel involved.
• The receipts covered include but are not limited to the following:
ALL RECEIPTS EXCEPT FOOD SERVICE SUCH AS:
Elementary SecondaryWorkbook Fees Workbook FeesFines FinesCommission (Pictures and Coke) Commission (Pictures and Coke)School Store Account (Pencil) Tuition, Test, and other FeesLibrary Book Fair School Store AccountField Trip Lost and Damaged Fees
Project Stride FeesCanteenAthleticsClub Dues and FeesFundraisersAnnual
Food Service receipts in the classrooms do not have to be receipted. The envelopes can besent directly to Food Service.
• A teacher and/or club sponsor must obtain in advance approval from the principal for eachfund raiser with a specific fund raising time period defined. If resale items are involved,the teacher must get approval before the resale items are ordered.
• The purchase of items for resale by student activity funds are not exempt from state sales
tax. You must pay the standard state sales tax on your purchases. When resold, you do notcharge any sales tax.
• For fund-raising activities for which the school receives a commission, fee, or rebate, theactivity brochure must contain a disclosure statement advising that a portion of theproceeds will be retained by the school itself for local student activities, i.e., schoolpictures, candy sales, etc.):
Notice: This sale is being conducted as a fund-raising event. A portion of thesales price will be contributed to the local school activity fund.
• Club sponsors involved in fund-raising projects that involve the selling of items such ascandy, cookies, cakes or pies, etc., are reminded that these items are not to be sold duringthe time one hour before the lunch period.
• At the elementary schools, teachers/sponsors who collect monies from the students are
required to keep at a minimum a list or receipts book of those students who have paidmoney, the amount paid, and the date paid.
• At the secondary schools, teachers/sponsors are required to have their own two-part
classroom receipts book and issue receipts for monies collected from all students.
• All monies collected each day must be turned in to the principal’s office that same day. There will be no exceptions to this rule. The club sponsors will be responsible for countingand rolling all monies before delivering to the principal’s office.
• Whenever money is physically transferred from one person to another, the recipient
will always issue a receipt to the giver. Under no circumstances shall anyone everleave monies unattended on anyone’s desk. The teacher/sponsor does not give up themoney to the secretary until he/she has a receipt in hand.
• The principal’s office will use a three-part receipt book. When money is transferred fromthe teacher/sponsor to the principal’s office, the secretary will issue the top part of thethree-part receipt to the teacher. On the “Received Stated $” line the sponsor will write thestated dollar amount he/she is delivering and sign his/her name behind this amount. Thesecretary will sign “1st Receipt By ____” and give to the sponsor. Should there not be anydifference from the “Received State $” amount, the secretary will sign the second receipt ofthe line “2nd Receipt By ____” and put it in the sponsor’s mail box. Should there be adiscrepancy, the secretary will contact the sponsor to resolve the difference.
• When the principal’s office secretary delivers the money to Central Office accounting, itwill be accompanied by a Receipt Summary Sheet which will contain the receipt number,the G/L number, the amount, and the fund raising method. All school receipts must besubmitted daily to the central office. The accounting office will use a three-part receipt
book and follow the same procedures as above. On the “Received Stated $” line theprincipal’s secretary will write in the amount transferred and sign her name. Theaccounting clerk will sign “1st Receipt By ____” and give the receipt to the secretary. Later, the accounting office will count the money and enter that amount on the “ActualCounted $” line. Should there not be any difference for the “Received Stated $” amount,then, the accounting clerk will sign the second receipt on the line “2nd Receipt by ____” andgive it to the school secretary by putting it in the school’s mail box at the central office. Should there be a discrepancy, the accounting office will contact the schools secretary toresolve the difference.
• At the conclusion of each fund-raising activity, a summary report shall be prepared by thesponsor and sent to the principal.
• The principal’s office will periodically audit the teacher/sponsor’s receipt records and tracethose items back to the receipt records in the principal’s office. At the end of the schoolyear, the teachers will turn their receipt books in to the principal’s office. Theteacher/sponsor shall be personally responsible for missing funds resulting from theft ormisplacement while the funds are in his/her care. The principal shall be personallyresponsible for missing funds while the funds are in the custody of the principal’s office.
• No monies should be kept overnight by anyone either at the school or at home. ThePicayune School District will provide a lock bag and deposit key for each school. Formoney received after school hours, use your lock bag and deposit key to drop the cash inthe bank’s night depository for the Picayune School District’s accounting to pick up thenext day.
In accordance with State Sales and Use Tax Laws, any item purchased for resale to students istaxable at the rate of seven (7) percent. The vendor is required to bill the Picayune School Districtfor this tax and pay the tax to the State Tax Commission. Sponsors of student activities involvingpurchase of items for resale to students must consider this charge and require the inclusion of thistax in any agreement with the vendor for such items.
STUDENT ACTIVITIES FUND MANAGEMENT – DKB/DJE/DKITEMS PURCHASED FOR RESALE
All funds collected within the school must be deposited daily.
Disbursements of these funds will be made through requisitions.
The principal is responsible for all funds collected and disbursed in the school. For this reason, nocollection of funds or purchases of any kind may be made without the prior knowledge and writtenapproval of the principal.
Any teacher who has collected money during the school day shall turn the money and theappropriate receipt book in to the office secretary by noon of the school day. The principal shallturn all monies over to the Central Office for deposit by 3:00 P.M. each day.
No principal shall leave money in a school overnight. It must be turned in to the Central Office,which must make daily deposits.
CROSS REFERENCE: Board Policy DI – ACCOUNTING AND REPORTING
CASH IN SCHOOL BUILDING – RESPONSIBILITY FOR DLLOSS OF FUNDS – HANDLING OF CASH
Whenever the Picayune School District or levying authority, as defined in Section §37-57-1(1)(b),acting on behalf of the Picayune School District, shall have on hand any bond and interest funds,any funds derived from the sale of bonds, or any other funds in excess of the sums which will berequired for payment of current obligations and expenses as they come due, and which are notneeded or cannot by law be used for the payment of the current obligations or expenses of thePicayune School District, the Board of Trustees shall have the power and authority to invest suchexcess funds in any bonds or other direct obligations of the United States of America or the Stateof Mississippi, or of any county or municipality of this State, which such county or municipalbonds have been approved by a reputable bond attorney or have been validated by a decree of thechancery court; or in interest-bearing time certificates of deposit or interest-bearing accounts withany financial institution approved for the deposit of State funds; and such institution shall beeligible to hold Picayune School District funds to the extent that it is qualified as a depository forState funds. The rate of interest shall be at the highest rate possible at the date of purchase orinvestment for such time certificates or deposit or interest-bearing accounts. In any event, thebonds or obligations in which such funds are invested shall mature or be redeemable prior to thetime the funds so invested will be needed for expenditure. When bonds or other obligations havebeen so purchased, the same may be sold or surrendered for redemption at any time, exceptcertificates of deposit which must mature, by order or resolution of the Board of Trustees, and theChairperson of the Board of Trustees, when authorized by such order or resolution, shall have thepower and authority to execute all instruments and take such other action as may be necessary toeffectuate the sale or redemption thereof.
All earnings from funds other than bond funds or bond sinking funds in excess of One HundredDollars ($100.00) in any fiscal year, invested according to the provisions of subsections (1) and (2)of this section shall be deposited in the Picayune School District fund from which the investmentwas made. Earnings from such Picayune School District funds which are less than One HundredDollars ($100.00) in any fiscal year may be deposited in the Picayune School District DistrictMaintenance fund, or in the Picayune School District fund from which the investment was made,in the discretion of the Board of Trustees. Earnings from funds invested out of bond funds or bonk
SURPLUS FUNDS DN
sinking funds, together with the principal thereof, shall be deposited in the fund from which theinvestment was made.
Nothing contained in this section shall be construed to prevent the payment of a portion of theearnings derived from the investment of bond proceeds or any other amounts in the bond fund orrelated reserve or sinking funds to the federal government to the extent required by the federal lawsapplicable to such bonds or the interest income thereon in order to maintain their tax exempt status. Section §37-59-43 (1993)
Whenever the Board of Trustees shall find and determine, by resolution duly and lawfully adoptedand spread upon its minutes, (a) that is shall need lands adjoining the school grounds for schoolpurposes, (b) that the Picayune School District owns lands of equal value to such needed landswhich could be exchanged for such needed lands, (c) that the value of the two (2) tracks is equalaccording to qualified appraisals, and (d) that the owners of the adjacent lands are agreeable tosuch exchange, the Board of Trustees of the Picayune School District shall be authorized andempowered, in its discretion, to negotiate a trade of lands upon such terms and conditions as theBoard of Trustees may, in its discretion, deem proper in consideration of the needs of the PicayuneSchool District and of the benefits which will accrue to the Picayune School District.
Any such trade of lands shall be subject to approval by the chancery court of the county in whichthe school lands lie. Notice of the hearing before the chancery court shall be published in anewspaper of general circulation in the Picayune School District for three (3) consecutive weeks,the first notice to be at least thirty (30) days prior to the hearing.
SALE – METHOD 1
When the Picayune School District shall own any land, buildings, or other property that is not usedfor school or related school purposes and not needed in the operation of the schools of thePicayune School District, the Board of Trustees may sell and convey such land, buildings or otherproperty in the manner provided in law.
SALE – METHOD 2
Whenever the Board of Trustees shall find and determine, by resolution duly and lawfully adoptedand spread upon its minutes (a) that any school building, land, property, or other school facility isno longer needed for school or related purposes and is not be to used in the operation of the schools
SCHOOL PROPERTIES DISPOSAL PROCEDURE DO
of the Picayune School District, (b) that the sale of the property in the manner otherwise providedby law is not necessary or desirable for the financial welfare of the Picayune School District, and(c) that the use of the school building, land, property, or other school facility for the purpose forwhich it is to be sold, conveyed, or leased will promote and foster the development andimprovement of the community in which it is located and the civic, social, educational, cultural,moral, economic, or industrial welfare thereof, the Board of Trustees of the Picayune SchoolDistrict shall be authorized and empowered, in its discretion, and upon the terms and conditions setforth in Section §37-7-477, to sell, convey, lease, or otherwise dispose of same for any of thepurposes set forth herein. Such sale, conveyance, lease, or other disposition shall be made uponsuch terms and conditions and for such consideration, nominal or otherwise, as the Board ofTrustees may, in its discretion, deem proper in consideration of the benefits which will accrue tothe Picayune School District or the community in which the school building, property, or otherfacility is located by the use thereof for the purpose for which it is to be sold, conveyed, leased, orotherwise disposed of. The authority conferred by Section §37-7-431 through Section §37-7-483 may be exercised by the Board of Trustees in thesale, conveyance or lease of relocatable classrooms to the Board of Trustees of another schooldistrict. Said sections without reference to another statute shall be deemed full and completepower for the exercise of the authority conferred hereby.
Equipment and supplies belonging to the Picayune School District which are outdated anddepreciated to the point that they have no further useful value or which are in excess of current andforeseeable needs shall be disposed of. The Superintendent shall annually inform the Board ofTrustees concerning the disposal of surplus or obsolete property, in accordance with proceduresoutlined in State law, Section §37-7-455, Mississippi Code 1972, Annotated.
Any and all properties purchased by the Picayune School District become the property of thePicayune School District and are administered by the Board of Trustees. In accordance with Statelaw, when the Board of Trustees of the Picayune School District shall desire to sell such property,it shall pass a resolution that the same be advertised for sale upon competitive bids in a mannerprovided by Section §37-7-455 of the Mississippi Code 1972 Annotated restated herein.
A sample of the resolution to be passed by the Board of Trustees is as follows:
WHEREAS, the Board of Trustees of the Picayune School District owns the following describedproperty which is no longer needed or used for school purposes, to wit:
NOW, THEREFORE, be it RESOLVED that the Superintendent is authorized and directed toadvertise for sale to the highest bidder for cash, the above described property, in the mannerprescribed by Section §37-7-455 of the Mississippi Code 1972 Annotated.
§37-7-433, Advertising of Sale; Conduct of Sale.
All such land, buildings, or other property shall be sold only after the receipt of sealed bids thereforafter the time and place of making such sale shall have been duly advertised in some newspaperhaving a general circulation in the county in which the property is located once each week for three
(3) consecutive weeks with the first publication to be made not less than fifteen (15) days prior tothe date upon which such bids are to be received and opened. The property shall be sold to thehighest and best bidder for cash, but the Board of Trustees shall have the right to reject any and allbids. If the property be not sold pursuant to such advertisement, the Board of Trustees may, byresolution, set a date for an open meeting of said Board of Trustees to be held within sixty (60)days after the date upon which the bids were opened. At the meeting held pursuant to suchresolution the Board of Trustees may sell by auction the said property for a consideration not lessthan the highest sealed bid previously received pursuant to said advertisement. At the meetingcalled pursuant to said resolution any interested party may bid for cash and the property shall besold to the highest and best bidder for cash, but the Board of Trustees shall have the right to rejectany and all bids. The Board of Trustees may require a written confirmation of bids received atsuch called meeting before selling the property at auction, but it shall not be necessary that sealedbids be received before conducting the auction.
When sale of such property shall be authorized and approved by the Board of Trustees, thepresident of the Board of Trustees shall be authorized and empowered to execute a conveyance ofsaid property upon the terms and for the consideration fixed by the Board of Trustees. Said Boardof Trustees shall reserve unto said district at least an undivided one/half non-participating royaltyinterest in all oil, gas, and minerals in, on or under said land, and all proceeds derived fromroyalties upon said reserved mineral interests shall be used as provided by Section §37-7-457; ifthe mineral interests of the Picayune School District shall be less than the full and undividedownership, the undivided royalty interest reserved by said district shall be reduced proportionately.
All sales of disposable property shall be for cash and the proceeds of such sale are to be placed inthe District Maintenance Fund of the Picayune School District.
An alternative to the above sale for the disposition of property not needed for school purposes isstated in Section §37-7-471 of the Mississippi Code 1972 Annotated.
