SENATE BILL 2761 EEF PROCUREMENT CARDS

1

2

IntroductionsMilo Crabtree, Deputy Executive DirectorDepartment of Finance & Administration

Ron Sager, Senior Vice President UMB Bank-Card Center

Lance Fulcher, DirectorOffice of Purchasing, Travel & Fleet ManagementDepartment of Finance & Administration

Todd Ivey, Bureau ManagerOffice of School Financial ServicesMississippi Department of Education

Regina Irvin, Procurement Card Contract AnalystOffice of Purchasing, Travel & Fleet ManagementDepartment of Finance & Administration

Melissa Barnes, Bureau DirectorOffice of School Financial ServicesMississippi Department of Education

Laurie Pierce, Travel ManagerOffice of Purchasing, Travel & Fleet ManagementDepartment of Finance & Administration

Sheryle Coaker, Executive DirectorMississippi Association of School Business Officials

Ross Campbell, DirectorMarketing and AuditOffice of Purchasing, Travel & Fleet ManagementDepartment of Finance & Administration

3

Senate Bill 2761, as passed during the 2012 Regular Legislative Session, authorizes the Department of Finance and Administration to issue procurement cards for use by classroom teachers to purchase classroom supplies, instructional materials and equipment.

4

Funding for the procurement cards is secured by EEF funds as specified in Mississippi Code section 37-61-33(3)(a)(iii) Mississippi Code, 1972 Annotated. The total amount of funds appropriated for fiscal year 2013 for EEF classroom supplies, instructional materials and equipment is $8 million dollars.

5

Districts are authorized to opt out of the EEF procurement card program; however, it is strongly recommended by the legislature that all school districts participate. The legislature will ask for a report of districts that opt not to participate in the EEF procurement card program.

6

Due to the logistics of producing an estimated 35,000 cards, the expected date for school districts to receive procurement cards to issue to teachers is the end of September 2012, however, during the first year, card production issues may push this date into October.

7

EEF procurement cards issued to teachers are considered state funds appropriated directly to teachers for the purchase of classroom supplies, materials & equipment.

8

Local school districts do not have oversight or approval authority as to what is purchased by the teacher.

a. Teachers will be required to sign a statement of understanding that the funds available on the card are public funds and must only be used to purchase supplies, materials, and equipment for use in their classrooms. A copy of the Mississippi Educator Code of Ethics and Standards of Conduct will be attached to the statement of understanding.

9

Continued From Previous Slide

b. Teachers are responsible for repaying the state for any purchases that are considered unallowable (at the determination of an audit of the teacher’s purchases).

c. Audits of purchases made by teachers using the procurement card would be an audit of the individual teacher and not part of the school district’s annual financial audit.

10

Continued From Previous Slide

d. Teachers are required to retain receipts or copies of receipts of purchases made using an EEF procurement card for five years for audit purposes.

e. Local school districts will continue to be audited on the district’s methodology for determining the amount of EEF classroom supplies, instructional materials and equipment allocated out to teachers, but not on how individual teachers spent those funds.

11

Cards will not be imprinted with individual teacher names. Cards will be imprinted with an account number specific only to that card, and will also have an imprint that reads “EEF Classroom Supply – State of Mississippi Funds” or words to that effect.

Cards will be segregated by district with an account number that includes a district identifier such as the district’s four-digit district number.

12

EEF Procurement Card Example

13

School districts will be responsible for tracking each card issued to teachers.a.Local school districts must maintain a roster that shows by card account number the teacher who received the card.b.Local school districts are required to issue cards to teachers within seven working days of the date the district receives the procurement cards.c.Teachers are required to turn in the card to the district if the teacher leaves the district.d.Teachers must notify the school district immediately if the card is lost, destroyed or stolen.

14

Teachers must notify the district of any items purchased that the district may require to be placed on the district’s fixed assets inventory. The district will show the item as equipment donated to the district by the State of Mississippi.

15

Once a district determines the number of cards needed and the dollar amount for each card, the district cannot request additional cards or request to change the amount on a card.a.Local school districts will divide the allocation by the total number of eligible teachers to determine the amount to be placed on each card.b.Every card for a particular district will have the same dollar amount. Recommend that teachers partially funded from non-federal funds or those not teaching a full day be allocated their proportionate share from local funds.

16

Continued From Previous Slide

c.Teachers who are hired after the district has reported the total number of cards required, and the amount on each card, will not receive any EEF funds that year. An exception would be made if the teacher is hired to replace a teacher that left mid-year, then the new teacher may be issued the card that was turned in by the departing teacher. Any funds remaining on the card may be spent by the new teacher.

17

Continued From Previous Slide

d. Once the EEF procurement card process is initiated for a district, teachers will not be able to carry over funds from one year to the next. Any funds remaining on cards at the end of the year will be carried forward to the subsequent year and added to the subsequent year’s EEF Classroom Supply allocation for redistribution to all eligible teachers in the district.

18

On or before the date cards are issued to school districts, the Department of Finance and Administration will make available to the Mississippi Department of Education an amount of funds sufficient to cover the total amount needed to fund all cards. The Department of Education will make monthly payments to the bank based on the expenditures for all cards during that month.

19

Questions?