Purchasing and Inventory

An important part of the business of teaching

Performance Objective

• Using your own laboratory and classroom setting, build a “wish list,” identify one piece of equipment needed, secure bids, and complete a purchase order that meets your school division’s purchasing guidelines .

Enabling Objectives

• Identify equipment needed• Write specifications• Secure bid or bids• Complete appropriate purchase order• Receive shipment• Process Invoice• Enter inventory• Maintain a “wish list”

Public monies

• School division budget approved by Board of Education

• Superintendent allocates funds to school– Principal allocates school funds to departments– Vocational (Career & Technical) Director may allocate

vocational funds to programs

• Administrators almost always hold back funds for contingencies at all levels

• Not your money

Program Budget

• Supplies & Materials• Repairs & Maintenance• Equipment• Budgeting

– Previous budgets– Available monies– Contingency hold backs– May or may not seek teacher input

Purchasing

• Superintendent sets purchasing policy• Purchasing Department/Office sets and monitors

purchasing procedures• Purposes:

– Get the best prices possible

– Safeguard public funds• Squandering

• Theft

– Protect school employees

Purchasing Procedures

• Central purchasing and warehousing– Common supplies– Common equipment– Teacher requisitions

• Individual program purchasing– Small purchase– Large purchase

Definitions

• Varies between school divisions

• Small purchases may not require bids

• Low cost at Tech < $2,000

• Typical school defines low cost < $500

Small purchases

• Simple process

• Complete PO

• Submit through administrative channels

Large Purchases

• Secure bids– Write specifications– Secure 3 (typically) bids

• Written bid from local vendor• Find catalog prices

– Sole source• Document unique nature of product or vendor

• Complete PO• Submit bids & PO through administrative

channels

“Spec-ing Out”

• Write detailed description of what you want

• Usually cannot specify brand

• Must be specific enough to avoid mistakes

• Generic enough to allow vendors to fill order

Specifications

• Digital camera– Zoom lens capability, 3 X optical, 10 X digital– Automatic focus, and light exposure– Built in flash– Rechargeable batteries– Battery charging pack– 3-1/2” diskette storage– Case included

Secure bids

• Lee Hartman & Sons, Roanoke submits written bid

• MicroWarehouse, Web Site printout

• OfficeMax, photocopy catalog page

• Attach printed copies of bids to PO

Receiving/Authorizing Payment

• Inventory on receipt

• Compare items to PO

• Compare items to invoice

• Sign invoice for all items received

• Submit signed invoice through administrative channels for payment

Received, 9/21/00D. Smith

Inventory Control

• School division typically maintains equipment inventory

• Teacher should maintain departmental inventory

• On receipt, enter durable equipment in inventory

Item Date Purchased

Number Cost (ea)

Vendor Warranty

Remarks

Camera, digital, Sony Mavica

SN - SO11187156F

SN – SO11168198K

7/21/00 2 469.95 Micro Warehouse

7077 Collection Ctr Dr

Chicago, IL 60693

800-367-7080

90 days Eric has 1 Shannon has 1

Departmental Inventory

Wish List• There is always money

– Contingency money from every level – Cancelled POs – Unexpected new funds

• Usually short fuse• Develop wish list

– Write specs– Locate vendors for quick bids– Secure a tentative price– Prioritize– Maintain current at all times

• Don’t wait for the money to come to you – seek it

Summary

• Purchasing is important• Following policies and procedures is critical

– Safeguards public money– Safeguards you

• Enter in inventory on receipt• Always keep a current wish list• No job is complete until the paperwork is

done!!