Administrative Procedure 515

PURCHASING

Background

The purchasing function must be administered prudently and with appropriate procedures ensuring that the highest possible value is received for funds expended and must comply with any federal or provincial trade agreements. Further, while the Charter Board believes that purchase decisions are to be made at a level as close as possible to program implementation, it recognizes that in some cases centralized purchasing is more appropriate.

Procedures

1. The Charter Board will adhere to legislative requirements for competitive buying practices as outlined in:
1.1 The Annex 502.4 of the Agreement on Internal Trade signed by the provinces, territories and the federal government in February 1998.
1.1.1 Goods and services purchases over one hundred thousand dollars ($100,000) and construction over two hundred fifty thousand dollars ($250,000) shall be posted on the National Electronic Tendering Service in compliance with Annex 502.4 of the Agreement on Internal Trade.
1.2 The British Columbia – Alberta Trade, Investment, and Labour Mobility Agreement signed by the provinces of Alberta and British Columbia in April 2006.
1.2.1 Goods and services purchases over seventy-five thousand dollars ($75,000) and construction over two hundred thousand dollars ($200,000) shall be posted on the National Electronic Tendering Service in compliance with the British Columbia – Alberta Trade, Investment, and Labour Mobility Agreement.
2. The Division will purchase goods and services required through competitive buying practices whenever feasible and practical.
2.1 The employee responsible shall purchase goods and services through competitive buying practices as deemed appropriate.
2.2 A minimum of three (3) quotations must be obtained for purchases between five thousand dollars ($5,000) and seventy-five thousand dollars ($75,000) unless exempted by the Secretary-Treasurer. In those cases where the tender or quotation process is utilized:
2.2.1 Consideration will be given to prices, quality, and the vendor’s reputation, experience and previous record of performance and service.
2.2.2 Tender documents will include:
2.2.2.1 Specifications for the goods or services to be purchased;        2.2.2.2 Template contracts where appropriate;
2.2.2.3 Evaluative tool, which will determine the successful bidder;
2.2.2.4 Deadline for tender submissions;
2.2.2.5 Person to which tender documents, and queries are to be directed;
2.2.2.6 Person to which tender documents may be obtained;
2.2.2.7 Time and location of tender openings.
2.2.3 Tenders will be explicit and, if a vendor proposes an alternative that is acceptable to the Superintendent, then the tender will be re-advertised.
2.2.4 Tender documents, prior to advertising, are to be approved by the
Secretary-Treasurer.
2.3 All goods purchased by the Charter Board are to be purchased through the use of a procedure authorized by the Secretary-Treasurer. The procedures used shall provide for accurate record keeping and accounting and shall comply with sound business practices.
2.4 The Charter Board’s purchasing processes, forms and services shall be used only for authorized Charter Board business.
2.5 When utilizing a National Electronic Tendering Service, the full tender documents, prepared in accordance with appropriate protocol and careful business practice, shall be posted. This practice will avoid the needless copying and forwarding of hardcopy documents.
2.6 Postings to a National Electronic Tendering Service are to be coordinated through the Secretary-Treasurer.
2.7 Where no competitive supply market exists, or it is considered in the best interest of the Charter Board, purchasing practices shall employ such value analysis and negotiation methods considered appropriate for obtaining acceptable materials at the best possible price.
2.7.1 Approval from the Secretary-Treasurer is to be obtained before engaging in price negotiations.
2.8 The Secretary-Treasurer shall review arrangements with preferred or sole-provision vendors (including but not limited to banking, equipment maintenance, etc.) from time to time in order to assess changes that may be required, quality of service, and other relevant factors.
3. Term or Multiple Purchase Relationships
3.1 The purchase of materials and supplies may be more beneficial to the Charter Board through the establishment of a term or multiple purchase agreement.
3.2 A term or multiple purchase agreement must:
3.2.1 Adhere to the competitive purchasing practices outlined in section 2 when being established;
3.2.2 Be of a benefit to the entire Charter Board operation;
3.2.3 Be of a term not longer than five (5) years, including any period of extension; and
3.2.4 Be approved by the Secretary-Treasurer.
3.3 A term or multiple purchase agreement may be held by an organization or group of which the Charter Board is
a member/ For the Charter Board to utilize these agreements, the practices of the organization must be competitive in nature.
4. Delegation of Purchasing Authority
4.1 Purchasing authority is delegated to: the Principal relative to the School budget; to the Secretary-Treasurer or
Superintendent relative to their budgets. No one with purchasing authority is permitted to cause a deficit budget
within his/her purchasing authority nor to make any purchase in excess of $10,000 without Board approval
4.2 The Principal shall develop internal procedures for the requisition of purchases by employees, which may
include purchase orders or the use of credit cards.
4.2.1 When an employee submits a requisition, it is the responsibility of the Secretary-Treasurer or Principal to ensure that the item being ordered is in fact required and that there are funds available
for the purchase.
4.3 Purchase Orders authorized by the Secretary-Treasurer or Principal shall be used for all purchases on a vendor account, where the product is not immediately obtained by the authorized employee.
4.4 Upon receipt of an order and invoice, the Principal is responsible for ensuring that the invoice is correct by checking the items received against the Purchase Order and against the invoice and verifying the total of the invoice.
4.5 The Secretary-Treasurer or Principal are the only persons authorized to approve an invoice for payment.
4.5.1 Upon the Principal’s authorization, the particulars of an invoice shall be recorded on the file copy of
the purchase order.
4.5.2 The invoice shall then be forwarded to the Secretary-Treasurer for payment.
5. Petty Cash Funds
5.1 Petty Cash funds may be used for small local purchases where the aggregate cost for each item
purchased is less than one hundred dollars ($100.00).
5.2 The Principal may, by purchase order, establish a Petty Cash account to accommodate small
incidental purchases or payment of minor expenses.
5.3 Petty Cash accounts are replenished by issuing a purchase order to the
Secretary-Treasurer, accompanied by the receipts for disbursements.
5.4 Petty Cash funds are to be recorded as a separate fund, within the School accounting program.
5.5 School generated funds are not to be used for petty cash purchases.
6. Purchases with Charter Board Issued Credit Cards
6.1 Charter Board issued credit cards are to be used for Charter Board business only; in the event that a personal
purchase is made, the employee must reimburse the Charter Board at the time of submission of receipts.
6.2 The Principal may approve Charter Board issued credit card limits up to five thousand dollars ($5,000) per
month for subordinate employees. Credit cards to be issued with limits greater than five thousand dollars
($5,000) require the approval of the Secretary-Treasurer.                         7. Conflict of Interest and Pecuniary Interests
7.1 All purchases must adhere to Administrative Procedure 404 – Staff Conflict of Interest. Therefore, no purchases can be made by an employee who has a pecuniary interest in the transaction.

References: Section 25, 26, 33, 52, 53, 68, 85, 188, 196, 197, 222, 225, 229 Education Act Freedom of Information and Protection of Privacy Act
School Buildings and Tendering Regulation 383/88 Agreement on Internal Trade; Annex 502.4
New West Partnership Trade Agreement
Trade, Investment and Labour Mobility Agreement