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1 Thanks for Joining Us! Listen to audio over your computer speakers. If you are not able to listen via the Internet, you can dial-in by phone using the numbers shown on your screen. If you disconnect, simply repeat instructions to reconnect to the program. If listening to audio by phone, you can adjust the volume by pressing *4. To submit a question, type in the chat window and click Enter to send. CPE and CEU Credits are NOT available for this forum.
2 Welcome to FYI Jeff Ammerman, Director of Member Assistance, Wayne McCullough, Director of Leadership and Development, Our Intent and Purpose Strategic Plan Outreach and Mentorship Effort for New and Newer PASBO Members in all aspects of School Business Management Continuing Series Next one is January 12, 2017 at 130 pm All sessions recorded and available at 2
3 I. What's Due Calendar of State and Federal Reports Today s Agenda II. Purchasing Rules III. IV. PASBO Tools You Can Use Resources to Help You Your Questions Answered An Open Forum for Your Questions About Topics Covered and Uncovered! 3
4 Breaking News (a new sporadic PSERS rate certified for segment on FYI) Rate is 32.57% which is higher than the 32.04% projected last year Investment returns were only 1.29% for the most recent year, far below the 7.5% projected initially. Future rates also projected higher, investment returns are now assumed at 7.25%, which had an impact. Get details here: PSERS Rate 4
5 More Breaking News Web Forum on Basic Education Formula Federal Data Components on 12/20 at 9:30 a.m. No registration or payment required Web Forum Link 5
6 What s Due Due Date Report Name/Form Number Frequency Explanation Where to file 1-Jan NSL Report on PEARS Monthly Reimbursement for Lunches Served each Month CN PEARS 1-Jan New Hire Report Monthly Report of New Hires Dept. of Labor & Industry 10-Jan Upload NPAS Reports and Send On-line Monthly Report of Wages & Retirement Contributions PSERS/NPAS 31-Jan Federal Income Tax - W-2's Annual Report of Local Wages IRS 31-Jan PA Dept. of Revenue W-2's Annual Report of Penna. Wages PA Dept. of Revenue 31-Jan PDE-339 Quarterly Report of Soc. Sec. & Medical Tax Contributions DSD&A 31-Jan IRS - W-2's Annual Report of Employee Wages IRS 31-Jan 941 Quarterly Employer's Quartery Federal Tax Return IRS 31-Jan Sales & Use Tax Quarterly Sales Tax Collection and Remission Dept. of Revenue 31-Jan 1099's Annual Print and issue 1099's IRS 6
7 Act 1 Key Dates 1/26/17 Make proposed preliminary budget available for public inspection or adopt a resolution indicating not to raise taxes above the index 2/15/17 Deadline for preliminary budget adoption 2/23/17 Deadline to publish a notice of intent to file for exceptions 3/2/17 Deadline to seek PDE approval for exceptions 5/31/17 Deadline by which a school board must adopt its proposed final budget 6/30/17 Deadline by which a school board must adopt its final budget for complete resources 7
8 8
9 Annual Conference & Exhibits March 21-24, 2017 in Pittsburgh Begins with Tuesday night event No increase in registration fees Exhibits open Wednesday morning Mini-Seminars; SBO Help-Desks; Double-Plays Webcast option Registration is open 9
10 Conference Registration A 5% registration discount will be applied to online registrations Early Registration Registration After 1/31/17 Active/Support/Education Members Three Day Conference (Wednesday thru Friday) includes 3 continental breakfast & 3 lunches Two Day Conference (Wed/Thurs or Thurs/Friday) includes 2 continental breakfast & 2 lunches Single Day Wednesday, Thursday or Friday includes 1 continental breakfast & 1 lunch $ $ $ $ $ $ Webcast $175 $175 Non-Member School Employee $100 higher $100 higher 10
11 STATE BUDGET INFORMATION PASBO Web Forum on Census Data on 12/20 Budget Address on February 7, 2017 February 9, 2017 Cranberry February 10, 2017 IU 6 February 13, 2017 Holiday Inn Grantville February 14, 2017 IU 23 February 16, 2017 Webcast
12 Stay Up To Date with PASBO Sign up for the Budget Blog by sending an to is a place to go to read prior updates and sign up for our legislative s
13 There s a doc for that at the Electronic Resource Center Delivering Best Practices and Good Ideas
14 Add PASBO to your social networks Follow PASBO Like PASBO
15 General Questions Ask questions on any subject now
16 Purchasing Rules PASBO Members have access to a free Purchasing Manual Go to the PASBO Store at the link below p?prodid=55 16
17 Purchasing Rules No school director shall, during the term for which he is elected or appointed, as a private person engage in any business transaction with the school district, be employed in any capacity by the school district in which he is elected or appointed, or receive any pay for services rendered except where explicitly provided by statute (24 P.S ). 17
18 Purchasing Rules No school board director shall draw, cause to be drawn, or accept a specification for any item to be purchased by the school district that would limit the purchase of the item to the firm, corporation, partnership or other business entity of which a school director is an officer, agent or employee and exclude all other persons who could submit quotations or bid on an equivalent item (24 P.S ). 18
19 Purchasing Rules It shall not be a violation for a school district to contract for the purchase of goods or services from a business with which a school director is associated to the extent permitted by and in compliance with 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure) 19
20 Purchases from Employees Prohibited No person shall act as agent for school books or school supplies, in any district in which he is engaged or employed as a superintendent, teacher, or employee of the school district in any capacity, or in which he was thus employed during the preceding school year 20
21 Purchasing Rules A majority vote of the board of school directors is required when action is taken in certain listed instances, including but not limited to, entering into contracts for supplies over one hundred dollars ($100.00). Action taken without the required approval of the board of school directors is void and unenforceable. 21
22 Quotation Threshold Quotations are required under section for all purchases from a base amount of $10,500 to $19,400 for calendar year Threshold adjusts every January New thresholds published in PA Bulletin soon(pabulletin.com) Will send out notice in SBO-Line 22
23 Quotation Rules Written or telephonic price quotations from at least three (3) qualified and responsible vendors shall be requested Written price quotations, written records of telephonic price quotations and memoranda shall be retained for a period of three (3) years Emergencies do not exempt the need for obtaining quotes 23
24 Bid Threshold Supplies costing $19,400 or more shall be purchased by the board of school directors only after public notice has been given by advertisement once a week for three (3) weeks in not less than two (2) newspapers of general circulation. In any district where no newspaper is published, said notice may, in lieu of such publication, be posted in at least five (5) public places. Bid threshold also adjusts every January 24
25 Bid Rules The board of school directors shall accept the bid of the lowest responsible bidder kind, quality and material being equal but shall have the right to reject any and all bids, or select a single item from any bid. Important to write bid specifications so that clear judgments can be made 25
26 Breaking Up Purchases to Evade Rules is Prohibited No board of school directors shall evade the provisions of this section as to advertising for bids or purchasing materials piecemeal for the purpose of obtaining prices less than the bid threshold which should, in the exercise of reasonable discretion and prudence, be conducted as one transaction 26
27 Construction Work Separate section of school code has the same quote/bid thresholds for construction, reconstruction, repairs, maintenance or work of any nature, including the introduction of plumbing, heating and ventilating or lighting systems upon any school building or school property 27
28 Additional Rules for Construction Projects The Department of Labor and Industry, through the Bureau of Labor Law Compliance, determines prevailing wage rates for the construction industry and enforces the rates and classifications under heavy, highway and building construction projects of $25,000 or more when public funds are involved. 28
29 Emergency Bid Public Advertisement Waiver Section 751 of the Public School Code provides if, due to an emergency, a school plant or any part thereof becomes unusable, an impacted school district may solicit competitive bids for repairs or replacement from at least three responsible bidders without publicly advertising the bids. 29
30 Emergency Bid Waiver Upon the approval of any of these bids by the board of school directors, the school district may proceed at once to make the necessary repairs or replacements in accordance with the terms of the approved bid or bids. 30
31 Work By School Personnel School district maintenance personnel may be used to perform any construction, reconstruction, repairs or work of any nature where the entire cost is less than $10,400 (adjusted annually) Use of school district maintenance personnel to perform maintenance work without restrictions as to cost. 31
32 Items Exempt for Bid/Quote Rules The following shall be exempt from bidding and quotations: maps, music, globes, charts, educational films, filmstrips, prepared transparencies and slides, pre-recorded magnetic tapes and disc recordings, textbooks, games, toys, prepared kits, flannel board materials, flash cards, models, projectuals and teacher demonstration devices necessary for school use. Services are also exempt from the requirements 32
33 Thresholds While you are not required to bid items below $19,400, it may be prudent to do so The same holds true for quote thresholds Goal is to get best price for your LEA 33
34 Special Rules for Federal Funds Federal funds have their own set of rules which are changing as of July 1, 2017 Federal rules include services as well as goods, which is different from state purchasing rules Federal thresholds will require quotes from $3,000 up to $150,000 Federal thresholds will require bids over $150,000 34
35 Interaction between State and Federal Thresholds If using Federal funds to purchase goods, must get quotes from $3,000 up to $19,400 At $19,400, the state threshold is lower than the $150,000 Federal threshold for bids, so the state thresholds trumps the Federal threshold and bids are required for any purchase greater than $19,400 For service purchases with Federal funds, the Federal thresholds apply 35
36 Interaction between State and Federal Thresholds Federal rules also require a new policy adoption by July 1, 2017 and certain other items Full Federal Purchasing (and other rules) webinar available for purchase here: did=135 Will be a free Web Forum on 12/15 at 9 am as it relates to Food Service Web Forum Link 36
37 Cooperative Purchasing Cooperative purchasing is permitted in Pennsylvania Can piggyback on state contracts Can purchase through national bid contracts PEPPM,US Communities, among others 37
38 Increase your buying power with Savings from leading suppliers Office supplies & furniture Fleet vehicle parts Food products and distribution services And more! For more information, visit
39 Wrap Up Many rules related to purchasing Conflict of interests and ethical violations taken vary seriously Best to err on the side of caution Always remember the ultimate goal is to get the best price Federal rules and state rules are different Must follow the most restrictive of the two when using Federal funds 39
40 Time for Questions! Send text questions using the Chat function at the left side of your screen. Type message in box and click Enter to send.
41 Thank you for your participation! CPE and CEU Credits are not available for this forum. Next FYI is December 12 at 9 am. Visit pasbo.org/fyi
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