Page 26 - The Edge - Fall 2018

BY BILL MUNCH, CPPO, CPPB
What’s New in Arizona School District

Procurement Compliance?
Bill Munch
As I travel around this
great state of ours (and it
is GREAT regardless of our
current political climate),
I work with districts large,
tiny and in-between. I help
them remain compliant
with the myriad school
district procurement issues
that face school business
officials every day.
Whether it is a quick
email/text question or
a full blown training
presentation for everyone
from the Governing
Board to the secretaries
at the schools, I recognize
the need to do what
is in the best interest
of the district while
remaining procurement
compliant. I recently did a
procurement presentation
for a Governing Board in
Northern Arizona and I
thought the presentation
would also make a great
article for the AASBO Edge. So here it is. Districts must now provide a “rationale” for awarding
In the very recent past there have been new procurement cooperative contracts. Specific requirements for verifying
compliance requirements placed upon us and it is important we licenses for vendors have also been added to the statute. There
recognize the impact on our overall procurement operations at are now specific prohibitions for reprisals and gifts. A school
our school districts. House Bill 2663 signed by the governor last district may not hire the same auditor or auditing firm for more
spring added some procurement requirements. Among other than three consecutive years. An auditor or auditing firm hired
things, further due diligence will be required for our contracts. by a school district may not also receive consulting fees from
Federal purchasing has come under much more scrutiny that school district. These changes can be found in ARS 15-213
than in the past. The School Facilities Board has procurement and many of these issues are soon to be updated in the School
requirements that are more restrictive than the School District Procurement Rules to be adopted by the State Board of
District Procurement Rules. These procurement requirement Education in the very near future.
changes are going to change the landscape of school district As far as cooperative contract awards, districts are now
procurement for all of us. required to provide a rationale when selecting vendors on a
While most people in Arizona recognize the budget bill cooperative contract. This will be an additional step in your
that gave our teachers a much needed raise, that bill also due diligence process. The rationale must be in writing. Your
clarified and added procurement requirements to school documentation should state the thought process for selection
districts. The bill reiterated conflict-of-interest requirements of the vendor in two or three sentences at a bare minimum.
and the personal and criminal liabilities for violations of the
procurement rules. Continued on page 28

26 THE EDGE | FALL 2018