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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. |
| BC approves process in consultation with BA | |
2. | > R 2 500 but | General budgeted operational as well as smaller Capex items. |
| 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. |
| 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 |
| 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.
