Procurement Policy

1. INTRODUCTION

Once budgets are approved, they are the responsibility of the Budget Administrator (BA)
Budget Administrators include:  Administrative, IT, academic, sport, music, facilities / maintenance, clubs / societies, learner development, library and a few other smaller expense categories.
Each BA must keep a deviation analysis to track his/her area of spending vs budget.
She/he is accountable to the Budget Controller (BC) who is accountable to the Principal.  Regular reviews should take place to monitor spending.   

2. EXPENDITURE – PROCEDURES

The Bursar, on behalf of the SGB, in terms of expenditure, is:   

2.1 responsible for ensuring that funds are spent as budgeted, dependent upon cash flow.

2.2  to ensure that all payments are for valid school expenses in that they are:

(a) Legitimately authorised and

(b) goods have actually been received in good order, or services completed and where necessary inspected by the relevant responsible person. 

Budget Administrators (BA) must initiate purchases 

3. GENERAL PRINCIPLES

The usual starting point for level 2 expenses regarding any procurement must involve discussions between the BC and the bursar.  The Principal is the final signatory prior to purchase when spending limits are exceeded.

All amounts of spending are guided by the detailed budget prepared by the BA and following final annual budget approval communicated, in writing, by the bursar, to the BA and the BC (usually in November each year).

The BA must use the available approved budget on PRIORITY items before incidental other items are purchased.  Should there be a need to overspend then the Bursar and Principal need to authorize it by reviewing where potential savings can be made.  Savings could come from other BA’s accounts but will be determined in consultation with all interested parties. These decisions are operational but should be discussed in Finance subcommittee meetings where the treasurer is briefed on all of the changes and potential overspending. These changes form the basis of budget input forecast spending planning.

4. AUTHORITY LEVELS

Level

Amount to be spent

Type of Expense

Process

Authority level

1.

General budgeted operational expenses controlled by BA.

 

  • Confirm intention of proposed spend with BC by submitting a request for expenditure, with expenses itemized.
  • Order or purchase item.
  • The BA must stamp and complete the required information on the invoice and BC must sign OR
  • A payment requisition or reimbursement which includes proof of purchase and bank details (if necessary) must be completed by BA and signed by the BC and submitted to bursar.
  • BA to keep copy of expenditure for his/her records to keep track of budget and assist with budgeting for the next year.

 

BC approves process in consultation with BA

2.

> R 2 500

but   

 

General budgeted operational as well as smaller Capex items.

  • Confirm intention of proposed spend with Bursar and BC who will ask the Principal for approval of spending.
  • Obtain quotes (preferably three).
  • Organise payment method with supplier and Bursar upfront.
  • Order or purchase item.
  • Submit invoice, stamped, completed and signed by BC to the Bursar OR
  • A payment requisition or reimbursement which includes proof of purchase and bank details (if necessary) must be completed by BA and signed by the BC and submitted to Bursar.
  • BA to keep copy of expenditure for his records to keep track of budget and assist with budgeting for the next year.

 

Bursar reviews funds and approves process in consultation with BC.

BC obtains approval of spending from Principal.

3.

> R 15 000 but   

 

General budgeted large operational as well as Capex items.

  • Confirm intention of proposed spend with Bursar and BC who will ask the Principal for approval of spending.
  • Obtain 3 valid quotes
  • Select Service provider in consultation with BC.
  • Organise payment method with supplier and Bursar upfront.
  • Order or purchase item.
  • When collecting or receiving goods or overseeing a service, sign (write name) for receipt of goods and confirmation of provision of the service on either the invoice or delivery note.
  • Check the goods/service are as per the delivery note (BA and BC)
  • Submit invoice, stamped, completed and signed by BC to the Bursar OR
  • A payment requisition or reimbursement which includes proof of purchase and bank details (if necessary) must be completed by BA and signed by the BC and submitted to bursar.
  • BA to keep copy of expenditure for his records to keep track of budget and assist with budgeting for the next year.

 

Bursar reviews funds and approves process in consultation with BC.

BC obtains approval of spending from Principal. The Principal should consult the Treasurer on capex items.

4.

> R 75 000

Generally Capex items

  • Confirm intention of proposed spend with Bursar and BC who will ask the Principal for approval of spending.
  • Obtain 3 valid quotes.
  • Select Service provider in consultation with BC.
  • Organise payment method with supplier and bursar upfront.
  • Order or purchase item.
  • When collecting or receiving goods or overseeing a service, sign (write name) for receipt of goods and confirmation of provision of the service on either the invoice or delivery note
  • Check the goods/service are as per the delivery note (BA and BC)
  • Submit invoice, stamped, completed and signed by BC to the bursar
  • Bursar to ensure service has been provided or goods received prior to releasing any payment

 

 

Bursar reviews funds and checks cash flow implications of the proposed spend. If in budget the bursar needs to ensure all documentation is in order.

Principal must then approve this once satisfied that funds are available and that the expense is truly necessary.

The Principal must consult with the Treasurer and for large capex items/projects, obtain upfront SGB minuted approval (whether or not the item is in the budget).

The CAPEX Release Application form must be completed.

The final authority rests with the treasurer in the event that prior planned capex spending authority has not been received.  Minutes should then be updated at the first available SGB Finance meeting thereafter.

 

 

5. NOTE ON PAYMENT OF ORIGINAL INVOICE/ACCOUNT

The Bursar will settle the original invoice/account within 30 days (if on the school account) otherwise Friday if submitted by the Tuesday of the same week.

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