Page 9 - The Edge - Summer 2020

Issue No. 3: What steps can be taken to prevent after- is ever going to change. The fastest way to hold back a
the-fact purchases? little is when someone says we’re not paying this, that
you will pay this.”
Spivey suggested educating the end users on their
responsibilities on goods and services being purchased, Hostetler told of a booster club that had to pay $1,600
making sure they understand the consequences. One for a banquet because they didn’t do the purchase order
way to reduce after-the-fact purchases, he said, is that it the right way. The booster club came in with an after-the
becomes part of the employee’s evaluation. “Violations fact and the district was already over the threshold. “The
in financial compliance or in purchasing are tied to booster club had to pay,” she said.
performance pay,” he said. “It ties together.”
Hostetler said she has a PowerPoint presentation that
Hostetler said the after-the-fact issue is really “a she would provide to other districts for training and
balancing act.” If you ordered 25 shirts and the sponsor informational purposes.
needs five more after-the-fact, we do a revision and
document what happened,” she said. “In training, I tell all of my end users, the Number One
rule is never, ever purchase without a purchase order.
Documentation has to be clear. “Do you have a good Remember that one thing. That really helps. When
reason?” Hostetler said. “The auditor will want to know someone is telling you a story, if it feels like BS, call
if you covered something or did you have justification. them on it. Tell them no auditor will accept this. Make
And, did you get budget approval before you actually them write out that this is what they’re going to do
spent that money?” better.”

Her solid advice: “No matter what we’re doing, we’re Remember, vendors want to comply, too, she said. “It’s
documenting. Keep that in mind. If you don’t have better than losing a contract – and money.”
some sort of peak in your after-the-fact issues, no one

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