Mason Athletic Booster AssociationPolicy # 6

Procurement using MBC School Accounts

Policy Name: Procurement using MBC School Accounts

Policy Number: 6

Policy Statement:

Member Booster Clubs (MBCs) are required to follow Mason City School (MCS) policies and procedures and use MCS systems to procure goods and services using funds from the MBC’s school account.

Purpose:

The purpose of this policy is to provide the necessary safeguards over funds disbursed from MCS accounts.

Overview:

The followingprocurement cycle transactions are processed via the school system:

  1. Enter new vendors.
  2. Purchase Requisitions (Purchase Orders & Blanket PurchaseOrders)
  3. Invoice approval / Check Request
  4. Verify financial results

Each of these transactions must be processed in the sequence in which they are listed. However, because it only takes aportion of a day to set up a new vendor, you have the option to request that the new vendor be set one up as part of the first requisitionfor goods or services from that vendor. Each transaction is processed in the MCS system with the assistance of the Assistant Athletic Director (AAD)(Cathy Crotty, 398-2513 option 3 or ).

New vendor -Most vendors used by MBCs are already established in the MCS financial system. If you want to do business with a new vendor not in the system, you must submit a request through the AAD to set up the vendor.At your option, you can submit the request using the requisition form without requisitioning anything or as part of the first requisition for goods or services from the vendor. After the vendor has been approved by MCS, you can commit to do business with them.

New purchase -To set up a purchase order (PO), or authorization tomake a specific purchase(s) from a vendor, the MBC mustsubmit a requisition to the AAD. Afterthe PO is approved, an invoice or invoices can besubmitted by the vendorto be posted against it. Before you can create the PO, the vendor must be approved by MCSand the MBC must have sufficient unencumbered funds in its school account to cover the PO. While in force, the PO commits (encumbers) sufficient funds from the MBC’s account to satisfy the PO, precluding the use of these funds for other purchase orders.

New,recurring purchases -To set up authorization for multiple purchases of similar goods from the same vendorover time, the MBC can submit a requisition to the AAD to create a special kind of PO, a blanket purchase order (BPO). (The MBC’s most common use of a BPO is the purchase of Coke products throughout the season). After the BPO is approved, the invoice foreach delivery throughout the season can be processed in a timely fashion without the need to create separate POs for each. This is desirable because it saves time and effort and reduces the opportunity for error while retaining financial limits. Before you can create aBPO, the vendor must be approved MCSand the MBC must have sufficient unencumbered funds in its school account to cover the BPO. The MBC must retain sufficient funds in the account to satisfy the BPO. While in force, the PO commits (encumbers) sufficient funds from the MBC’s account to satisfy the BPO, precluding the use of these funds for other purchase orders.

If the MBC does not have sufficient unencumbered funds in its school account to allow the entry of anew PO (including BPOs), the MBC may:

  1. Create the new PO for a smaller amount, an amount that is equal to or less than the unencumbered balance in the account,
  2. Deposit more funds into the account to raise the unencumbered balance, or
  3. Close another PO(s)or reduce the amount in another PO(s) to free up encumbered funds.

Invoice approval and check request for vendors other than Coke –

  1. Place the order - With the PO in place, the MBC can place the order directly with the vendor.
  2. Receive the order – The MBC is responsible for determining that the quantity and quality of goods and services received comply with that which was ordered. The MBC may solicit the help of coaches, etc. in receiving, but retains the ultimate responsibility. Follow your MBC’s policies and procedures for receiving.
  3. Problem resolution - The MBC is responsible forworking with the vendor to resolve problems.
  4. Pay an invoice - The MBC is responsible for verifying the accuracy of the invoice, and authorizing the AAD to pay it.The AAD will not pay any invoice until it is explicitly approved by the MBC.

Invoice approval and check request for Coke products –

  1. Place the order - Submit the order to the AAD using the Drink Order / Receiving Form (MCS-A5). The AAD will submit the order to Coke. MBC Drink Order forms received by the AAD by 3:00 pmMonday will be delivered Wednesday. MBC Drink Order forms received by the AAD by 3:00 pm Wednesday will be delivered Friday.
  2. Receive the order - The AAD will meet Coke, receive the Coke product in the location agreed upon by the MBC, record the amount printed on the delivery ticket in Drink Order / Receiving Form (MCS-A5), and email it to the MBC. However, the AAD will not count the items actually received. It is up to the MBC to devise a method to confirm the products and quantities actually received and compare them to the amount reported by the AAD and, ultimately, to the invoice. The MBC can use the Drink Order / Receiving Form (MCS-A5)store receipt for its records.
  3. Problem resolution - The MBC is responsible foridentifying problems, but the AAD is responsible for problem resolution.
  4. Pay an invoice - The MBC is responsible for verifying the accuracy of the invoice, and authorizing the AAD to pay it. The AAD will not pay any invoice until it is explicitly approved by the MBC.

Verify financial results – Refer to MABA Policy and Procedure number 8,MBC School Account Reporting, for information about requesting reports from the school accounting system.

Procedure:

Two Excel based tools are provided to help MBCs complete this procedure: the Requisition (MCS-A6) and the Drink Order / Receipts(MCS-A5).

To set up a new vendor –Complete a Requisition (MCS-A6)form providing the information on the new vendor. At your option, you can email the requisition to the AAD with or without requesting a PO be created.

  1. Open the Requisition (MCS-A6)in Excel.
  2. Go to the “Club Attributes” tab.
  3. Enter the number that corresponds to your MBC in the list. Your club name should appear next to the number you entered.
  4. Go to the “Vendor Attributes” tab.
  5. In vendor row 1 containing the clear cells for entering data, enter the new vendor’s name, attention (person @ the vendor who should receive the PO or payment), address, phone, fax number, and the type of items the vendor normally provides.
  6. Enter the number 1 in cell A5. The vendor information you just entered should appear in the row next to the 1 you entered.
  7. Go to the “POs for STD Items” tab.
  8. If you are just setting up the new vendor without creating a requisition enter the number 1 in cell A5. A message stating that no items are being requisitioned now, just setting up a new vendor should appear next to the 1 you entered.
  9. If you want to create your first requisition at the same time you set up the new vendor, go to the “To set up a purchase ordersection”, step 6, otherwise go to the next step.
  10. Go to the “Requisition” tab.
  11. Enter the 1st day of the current month in the date field.
  12. Verify that no cells on the form are red.
  13. Verify that the background of the vendor address, phone, and fax numbers are light green, indicating that the vendor is a new vendor.
  14. Save the file using the conventions in Attachment 1, point 8.
  15. Email the requisition file to the AAD.
  16. Attach the requisition file
  17. Include your name, office, and day-time phone number in the body of the email.
  18. The AAD will email a confirmation that the vendor has been set up.

To set up a purchase order:

  1. Verify that the MBC has sufficient unencumbered balance to set up the purchase order by requesting the AAD to email a copy of your MBC’s Outstanding Purchase Orders (PODETL)report. Include your name, office, and MBC in the request.

If there is sufficient unencumbered balance to set up the PO, go on to step 2.

If there is notsufficient unencumbered balance, the MBC can:

  • Create the PO for a smaller amount, an amount that is equal to or less than the unencumbered balance in the account,
  • Deposit more funds into the account to raise the unencumbered balance, or
  • Close another PO(s) or reduce the amount in another PO(s) to free up encumbered funds.
  1. Open the Requisition (MCS-A6)in Excel.
  2. Go to the “Club Attributes” tab.
  3. Enter the number that corresponds to your MBC in the list. Your club name should appear next to the number you entered.
  4. Go to the “Vendor Attributes” tab.
  5. If the vendor is in the list, enterthe number that corresponds to the vendor in the list into cell A5,. The vendor information should appear in the row beside the number you just entered.
  6. If your vendor is not in the list, complete step 3 in the “To set up a new vendor” section of this procedure. After completing that step, return to step 4c, the next step in this section.
  7. If a frequently used vendor is not included in the list, notify the MABA treasurer so it can be added.
  8. If you are requisitioning player packs, go to the “Player Pack Contents” tab.
  9. Select the items in the player pack by placing a “Y” in each row containing an item in the player pack.
  10. If you want to add an unlisted item in the player pack, enter adescription of the item and enter a “Y” in the Select cell. The items selected will be inserted in the player pack description in the POs for STD Items” tab.
  11. Go to the “POs for STD Items” tab.
  12. If you are just setting up a new vendor without creating a requisition enter the number 1 in cell A5. A message stating that no items are being requisitioned now, just setting up a new vendor should appear next to the 1 you entered. Go to step 7.
  13. Select a maximum of 10 PO line descriptors from the list by placing the number that corresponds to each selection in one of the clear cells near the top of the spreadsheet. Notice that blanket orders or standard purchase orders can be selected. (If a frequently used category is not included in the list, notify the MABA treasurer so it can be added).
  14. Enter the “$ Amount” in the row that corresponds to each of your selections.
  15. If you want to designate shipping separately, select the “shipping” line in which the “Expense Category” is appropriate for the POto which it pertains.
  16. Go to the “Requisition” tab.
  17. Enter the 1st day of the current month in the date field.
  18. If you want to request a PO that is not in the “POs for STD Items” tab.
  19. Go to the row just below the double line near the middle of the form (Excel row 26, aka Itm11).
  20. If you do not enter a quantity (“Qty”), it will default to 1.
  21. If you want the form to calculate the “Total Price” of the PO for you, enter the “Qty” and the “Unit Price” for the item on the PO.
  22. If you do not enter a “Qty”, it will default to 1.
  23. Enter the PO“Description”.
  24. If you do not enter a “Unit Price”and the “Qty”, you must enter the “Total Price”.
  25. Enter the “Expense Group”(a list of valid entries is provided to assist you)
  26. Verify that no cells on the form are red.
  27. Verify that the conditions that cause any yellow cells are as you intend.
  28. Save the file using the conventions in Attachment 1, point 8.
  29. Email the requisition file to the AAD.
  30. Attach the requisition file
  31. Include your name, office, and day-time phone number in the body of the email.
  1. When the PO is set up successfully, the AAD will email a confirmation containing the PO number, amount, and date. (No vendor invoice can predate the PO.)
  2. If you wishfurther confirmation, request that the AAD email a copy of your MBC’s Outstanding Purchase Orders (PODETL)report. Include your name, office, and MBC in the request.

To process an order and pay an Invoice from a vendor other than Coke:

  1. Place the order - With the PO in place the MBC can place the order directly with the vendor.
  2. Inform the vendor that they must email the invoice to you for approval before it will be paid. (The AAD will not pay any invoice until it is explicitly approved by the MBC.)
  3. Receive the order – The MBC is responsible for determining that the quantity and quality of goods and services received comply with that which was ordered. The MBC may solicit the help of coaches, etc. in receiving, but retains the ultimate responsibility. Follow your MBC’s policies and procedures for receiving.
  4. Problem resolution - The MBC is responsible forworking with the vendor to resolve problems.
  5. Review the emailed invoice for accuracy.
  6. The MBC Treasurer will approve the invoice for payment by forwarding the emailed invoice image to the AAD (cc the vendor) along with a request that the AAD process the invoice for payment against the controlling PO number. The body of the email must include the approver’s name, office, and contact information along with the statement the AAD is authorized to pay the invoice. The AAD will not pay invoices received directly from the vendor.
  7. The AAD will request payment of the emailed, approved invoice.

To process an order and pay aninvoice from Coke:

Note: At the beginning of the school year, the MBC should get the Drink Order -Receipts Form – YYYY.xls, updated for the new school year’s product offerings and prices. This can be requested from the MABA Treasurer.

  1. Submit a Coke order. The MBC will:
  2. Open the Drink Order Receipts Form - 2010.xlsfile in Excel. Enable Macros. Do not update workbook for a new version of Excel.
  3. Go to the “Club Attributes” tab.
  4. Enter the number that corresponds to your MBC in the list. Your club name should appear next to the number you entered.
  5. Got to the “Drink Order” tab. Enter:
  6. “Order Date”
  7. If all items are not being displayed, depress Ctrl+Shift+A simultaneously to display all of them. (A for All).
  8. The quantity of each item you wish to order from the list of items offered by Coke.
  9. If you want order a new item offered Coke:
  10. Go to the “Other” section.
  11. Go to the row below the heavy line
  12. Enter the
  13. Product name
  14. Product size
  15. Product unit of measure
  16. Cases to order
  17. Quantity per case
  18. Cost per case
  19. If you want the order to display (and/or print) only items that you ordered, depress Ctrl+Shift+O simultaneously. (O for Ordered).
  20. Save the file using the conventions in Attachment 1, point 8.
  21. Email the current order excel file to the AAD as an attachment to the email containing your name, your MBC, your office, your phone number.
  22. Order the product. The AAD will
  23. Save the file using the conventions in Attachment 1, point 8.
  24. Submit the order to Coke.
  25. Receive the order. The AAD will:
  26. Meet Coke as they unload the order
  27. Receive the invoice / delivery ticket from Coke
  28. Update the Excel file for the current order form to reflect the receipt. The AAD will enter:
  29. Receipt date
  30. Quantity for each item as it appears on the invoice.
  31. Email the MBC Treasurer confirming the order was received and attaching the Excel file for the order containing the invoice quantities.
  32. Confirm the receipt. The MBC will
  33. Examine the Excel file for the order to see what was invoiced.
  34. Confirm the receipt and reconcile it to the invoice according to the MBC’s policies and procedures.
  35. Email the AAD giving them authorization to pay the invoice.
  36. Resolve problems
  37. Note if the amount received does not equal the amount ordered, the cell containing the amount received will be yellow.
  38. The MBC will notify the AAD of problems it identifies.
  39. The AAD will work with Coke to resolve problems.
  40. Pay the invoice. Upon receiving authorization from the MBC, the AAD will submit request of payment.
  41. The MBC Treasurer will review the Financial Detail Report, Year-to-Date (FINDET)to verify that the expenditure posted correctly.

To verify financial results – Refer to MABA Policy and Procedure number 8,MBC School Account Reporting, for information about requesting reports from the school accounting system. The reports of most value are the Financial Detail Report (FINDET), Financial Summary Report (FINSUM), and Outstanding Purchase Orders (PODETL).