You are here: Home Internal Audit Activity Fund Manual Chapter III - Expenditures Procurement Law

Procurement Law

The latest version of the Procurement Act (Code) for the State of New Mexico became effective October 1, 1986.  Updates are added yearly as new legislation is approved. The following highlights of this act are vital to the Albuquerque Public Schools (APS), as a local body within this law (13-1-28 through 199 N.M.S.A. 1978).  Activity fund purchases are subject to the Procurement Code and the funding source has no bearing on the application of the procurement code. School principals, assistant principals, secretaries, bookkeepers, activity directors, teachers, and sponsors should be familiar with these requirements:

PURCHASES FROM $.01 TO $9,999.99

Although quotes are not required for these purchases, the school must make sure that it is getting the best price available (best obtainable).  In many cases, quotes are recommended as savings can be realized, especially at the higher end of the scale.

PURCHASES FROM $10,000.00 TO $19,999.99

Three written quotes must be obtained for all purchases in this price range unless an appropriate contract exists.  Quotes should be in writing on the vendor’s letterhead. If less than three responses are received, an explanation will be recorded as required by law (13-1-125) and kept with the file.  Catalog price quotes are not acceptable for this requirement. Purchasing will require copies of quotes before releasing (approving) purchase orders.

PURCHASES FROM $20,000.00 AND OVER

Purchases of goods in this range require formal bids processed through the APS Purchasing Department (also called Procurement Department).  These bid requirements and procedures apply to non-professional services that total over $20,000.00 (13-1-111) as well.  Advertisements must be in at least one local newspaper no less than ten (10) days before the bids or proposals are opened (13-1-104) and other requirements exist (purchasing directs all these activities).

Exceptions: some exceptions are banquets; dinners; proms; motels or other lodging facilities, purchases from publishers, utilities, and many others.  These quotes or bids do not have to be processed through the Purchasing Department but copies must be supplied for documentation.  Quotes should be obtained by the school, directly from the vendor, on vendor letterhead.  Quotes must always be secured from vendor facilities having the same type of standards or specifications for the goods or services.  Bids are performed by the Purchasing Department. Although the law excludes transportation, prices vary greatly among companies, thus APS procedures recommend the school obtain the best available price through quotes. The purpose of purchasing controls is to ensure public employees acquire quality products at reasonable prices when spending public funds as required by code.

REFERENCES

APS Procurement Department.......................................................................................... 878-6126

Revised 03/10

Payments for Services Rendered

In an effort to comply with IRS requirements regarding appropriate determination and payment for individuals providing services to the district as independent contractors, the procedures for using activity funds for services have been revised.

Please note the following as you review this information:

  1. You will no longer write checks from your activity accounts for direct payment to an individual or business providing services. All services being paid for with activity funds will now be processed through Lawson via either Accounts Payable or Payroll. General Ledger/Accounts Receivable will be billing each school for all such payments. Please do not send payments to General Ledger/Accounts Receivable until you are billed.
  2. Please do not allow the individual/business to perform services until they either  have an Employee ID Number or until you have received an approved vendor number from Accounts Payable for this individual/business, have an approved activity funds purchase order and Professional Service Agreement (if needed) in hand.
  3. There are stricter requirements for obtaining a vendor number from the Accounts Payable Department for individuals wishing to provide services to the district as independent contractors. This may result in increased referral of these individuals to the Human Resources Department to be processed as employees.
  4. Employees are prohibited from providing services to the district as independent contractors. Exceptions to this rule are rare. The only AP payment allowed to current employees outside of the normal payroll process is travel reimbursement.
  5. Employees can provide services to the district outside of the normal duty day by submitting an approved timesheet to payroll.
  6. Non-APS individuals/businesses need to fill out a Vendor Request Form for approval to get a vendor number. The determination will then be made by Finance as to whether the individual/business is to proceed as an employee, or as a contractor/vendor.
  7. You no longer need to enter a requisition in Lawson to hire an approved independent contractor. Complete an activity fund purchase order made out to the vendor/Board of Education (i.e., Durham Bus Co./Board of Education) including vendor number, vendor address and type of service to be purchased. Once the service is performed and you have an invoice from the vendor, send the invoice, the white copy of the Activity Fund purchase order and the PSA (if needed) to General Ledger Dept., 300 East City Center.

After the invoice is processed, Accounts Payable will print a check and mail it to the vendor. (For more information on this, please refer to the APS Contractor Policies on the Accounts Payable department website at www.aps.edu/departments/accounts-payable)

Document Actions