Page 12 - The Edge - BTS 2021

AASBO SUMMER CONFERENCE

BY DON HARRIS
Megan Smith Paula Gustafson
State Auditors Are There to Help with

Procurement Rules and Regulations

After being greeted by a friendly round of boos, An informal RFP may also be used when more
state auditors provided AASBO members with tips specific detail is needed, and should include as
on how to avoid pitfalls in the ever-changing field much information as applicable. “Providing more
of purchasing. details helps vendors – everybody has the same
information,” Smith said.
Megan Smith, Manager of the Accountability
Services Division at the Arizona Auditor General’s That information should include submission
Office, and Paula Gustafson, Senior Accountant, requirements, such as where to submit and the
assured AASBO members at the Annual Summer due date; the purchase description, specifications,
Conference and Expo that their presentation was delivery or performance schedule; the contract
designed to help districts make sure all purchases length, including renewals or extensions; the
comply with rules and guidelines. minimum information that the quote/offer should
contain; and any terms, conditions, or instructions
“The procurement process should start before specific to the procurement.
there is a need,” Smith said.
“It’s important to investigate red
For example, you should consider what do you
need and when do you need it. It’s also important to flags.” – Paula Gustafson

consider current or expiring contracts for possible
use. Smith also recommended researching the cost/ On using credit cards, they make purchasing a lot
price of similar items and what might be a fair and easier, but AASBO members were advised to tailor
reasonable price. A periodic review of purchases to them to district needs. In that way, the cards can’t
spot trends by departments and knowing whether be used to purchase something not on a district’s
the district is over-spending are also important. A list of products or services.
best practice, Smith said, is to set an alert of dollar
amount thresholds in your accounting software. General policies for charge card use include
utilizing existing contracts when possible,
Regarding the method of source selection, documenting competition for non-contract
questions to ask include the estimated cost and purchases; prohibiting the dividing of purchases; p
whether the district is a member of a cooperative,
which may be better suited to meet the need.

To determine the best procurement method, Smith
recommended requesting written quotes, such
as an email, sufficiently before the purchase is
needed. “Give vendors adequate time to respond
to the request and indicate if the contract will be
awarded based on price alone or list the factors to
be considered,” Smith said. “And include a quote
due date.”

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12 THE EDGE BACK TO SCHOOL 2021