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Contracts and You. What is a Contract? When do I need a Contract? What Needs to be in a Contract? Life of a Contract: Conception to Payment Contract Packet for Submission. Board Policy and Administrative Regulations How to Void or Cancel a Contract Mystery Contracts Reminders
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What is a Contract? When do I need a Contract? What Needs to be in a Contract? Life of a Contract: Conception to Payment Contract Packet for Submission Board Policy and Administrative Regulations How to Void or Cancel a Contract Mystery Contracts Reminders Frequently Asked Questions Contracts And You
Contracts What is a Contract?
Agreement Quote for Service Work Order Confirmation Order Purchase Agreement Service Request MOU – Memorandum of Understanding Any document that requires a signature to begin Work/ Service/ Delivery A Rose by Any Other Name… Contract go by many names Remember If it looks Like a Duck, Walks Like a Duck, it is a Duck
What is a contract? • Questions
Services – Non Tangibles • Examples of services • Bus Rentals • Repairs • Speakers • Outside Printing • Advertising • Catering • Consultants • Performers • Meeting Room Rental • Rentals • Maintenance Agreement • Most 5000 Object Code Expenditures
5000 Object Code • Most service funded through the 5000 object code require a contract • Review Chart of Accounts found on the district web site • www.sbccd.org • Click on Purchasing • Click on Chart of Accounts
Chart of Accounts www.sbccd.org
When do I need a Contract? • Questions
Contract Elements • The Names of the contracting parties • San Bernardino Community College District for SBVC or CHC Campus • Contractor Name • Date the Service is to be preformed • Cost of Service • A detailed description of services to be performed • Signature of Contractor and District • Sometimes it is just the District Signature that is required
Contract Elements Cont. • Insurance • District requiring a Certificate of insurance • Contractor Requiring a Certificate of Insurance from the District Note this will be cover in detail the Contract Submission Section
What informational pieces need to be in a contract? • Questions
Life Cycle of a Contract Conception to Payment
Cont: Department • Generate contract with contractor/vendor • If new contractor/Vendor a Vendor Application must be completed by Contractor/Vendor • Process purchase requisition for the full amount of the contract value • Review contract check list for completion • Complete contract coversheet then print from web page and attach to contract packet • Submit contract coversheet notification on web page • Send complete contract packet to Business Services for processing
Cont: Business Services • Contract packet reviewed for completeness • Check for valid purchase requisition • Check for original contractor’s signature • Check for contractor’s contact information • Check for department’s contact information • Check contract language for liabilities • If the contract is associated with a Campus or Department Event, check for event Board Approval Date (Health Fair, Spring Fling, Catering and etc)
Cont: Business Services Prepare Contract for Board Approval • Enter contract in data base • Send routine contract list to Board for approval • After the Board approves contract, the contract is sent to the Business Manager for signature.
Cont: Business Services After the Board Approves the Contract • Contracts are distributed to various parties • One original is filed with Business Services • One original is sent to the originating Department • One original is sent to Contractor • A photo copy is sent to Accounts Payable
Cont: Contractor • Contractor then performs service • Contractor invoices District for services • Invoice must have the purchase order number referenced on the invoice • Invoice should reference the employee contact name (example: Jane Smith, Grounds CHC) • All invoice are sent to : Accounts Payable – SBCCD 114 South Del Rosa Drive San Bernardino CA, 92408
Cont: Accounts Payable • Accounts Payable receives invoice from vendor • Accounts Payable matches invoice to PO and contract • Accounts Payable send invoice to department for approval
Cont: Department • Invoice is received by department • Invoice is reviewed for accuracy and completion of services • Invoice is signed “OK to Pay” by responsible center manager and dated • Invoice is sent to Accounts Payable for payment processing
Cont: Accounts Payable • Approved invoice is received by Accounts Payable Department • Invoice is placed in to the queue for processing • Invoice is processed for payment through District Financial Services • If Invoice is chosen for audit, this can delay payment for 10 to 30 days after Accounts Payable has submitted the invoice for payment to District Financial Services
Cont: Accounts Payable • Payment is released from District Financial Services • Warrant is sent to Accounts Payable for final processing • Warrant is mailed to contractor • Note: Contractor may not pickup warrant
Contract Check List • Three Original Contracts signed by Contractor • Funding Source: Budget Number • Contract starting and ending date • Name and phone number of employee • This must be a contract employee (permanent) • Department, Division, Club or Trust generating the contract • Certificate of Insurance (If required)
Contract Check List • Insurance • District requiring a certificate of insurance: • A Certificate of Insurance is required, showing that the person or organization contracting with us is covered by Public Liability Insurance in an amount not less than $1,000,000 listing the District as an Additional insuree
Contract Elements Cont. • Insurance continued • Contractor Requiring a Certificate of Insurance from the District • Complete a request for COI form located on the District web site under Fiscal Service, then under Business Services • www.sbccd.org
Contract Check List • Contractor’s mailing address, phone number and contact person • If the contract is associated with an event the date of the Board approval of this event must be included • If contract required a Certificate of Insurance (COI) from the District a Request for COI form must be completed and attached • A Financial 2000 PR number • If Funded through a Club or Trust account, a copy of the signed CBO request and minutes approving the purchase
Board Policy/Administrative Regulations 6340 and 6330 • Contract 6340 • All contracts must be approved by the Board of Trustees • Contracts can only be signed by a Board approved authorized signatory • Purchase 6330 • Only the District has the authority to purchase goods and services
Board Policy/Administrative Regulations 3760AR • Refreshments and Meals • When do you need the Expense Approved • When the cost excesses $500 • Any time you feed Students or Non-employees Board Approval is needed prior to the day of the activity, meeting, or conference, workshop, event and etc. This is a separate approval from the contract approval for the catering.
Canceling a Contract • Canceling or Termination of a contract • Review contract for cancellation clause • Review for terms and conditions of contract termination • Contact Business Services • Official notice to cancel a contract must be sent from the Business Services Office
Voiding A Contract • Contact Business Services • Questions we will ask you • Has the contract been signed by District? • Has work begun? • What is the reason for voiding the contract?
Mystery Contracts • Contracts that have no information sent with them. • A packet with just the contract • A fax of a fax Contract that can not be read
Remember • If you sign a contract, you get to write the check • No contracted services may begin prior to District and/or Board Approval • No goods or services may be ordered prior to District Approval
Invoices • Reminder – Do not send to Business Services Invoices, bills or Performa Invoices • All Invoices go to Accounts Payable • Accounts Payable pays bills • I have seen their job and I don’t want it
Contracts and YouThank you for Attending The Floor is Now Open for Questions