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									   Procurement
     Review &
Training Follow-up

                      GASBO Conference
                       November 9, 2011

Dr. John D. Barge, State School Superintendent
“Making Education Work for All Georgians”
www.gadoe.org
                  Why have Reviews
•   Hot Topic in Washington
•   Recent serious issues
•   Have not conducted training in several years
•   SNP specific information needed for new
    bookkeepers, procurement specialists,
    directors.


        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
                      Common Issues
• Missing contractual provisions

• Lack of competition for all purchases –
  regardless of value.

• Contract management
     Dr. John D. Barge, State School Superintendent
     “Making Education Work for All Georgians”
     www.gadoe.org
Impact on School Business Officials
• Recognize regulations and policies
  that make SNP procurement
  requirements different from
  general fund/educational
  purchases.

    Dr. John D. Barge, State School Superintendent
    “Making Education Work for All Georgians”
    www.gadoe.org
                          OMB Circulars
• Circular A – 087 Cost Principles
   – Attachment B – Selected Items of Cost
        Provides principles to be applied in establishing the allow
      ability or unallowability of certain items of cost.
• Circular A – 133 -
   It sets forth standards for obtaining consistency and
                uniformity among Federal agencies for the audit
                of States, local governments, and non-profit
                organizations expending Federal awards.


         Dr. John D. Barge, State School Superintendent
         “Making Education Work for All Georgians”
         www.gadoe.org
                       Administration
• SNP is a permanent program mandated by
  Congress
• USDA is required by law to administer the
  program according to:
          –   Code of Federal Regulations (7CFR)
          –   OMB Circulars, Admin and financial requirements
          –   National School Lunch Act
          –   Child Nutrition Act of 1966

• USDA issues guidance memos and instructions
      Dr. John D. Barge, State School Superintendent
      “Making Education Work for All Georgians”
      www.gadoe.org
     Code of Federal Regulations
• Program Specific – 7CFR
  210.21 – National School Lunch Program
  220.16 – School Breakfast Program
  225 – Summer Food Service
  250 – Food Distribution
  3016 – Public School Procurement
  3017 – Debarment
  3018 – Lobbying
  3019 – Private nonpublic School Procurement
       Dr. John D. Barge, State School Superintendent
       “Making Education Work for All Georgians”
       www.gadoe.org
                  SFA Responsibility
• School Food Authority (SFA) –
 – Directed by 7CFR 3016.36(b) to “use their own local
   procurement procedures which reflect applicable
   State and local laws and regulations, provided that
   the procurements conform to Federal laws and
   standards identified in this section.”




     Dr. John D. Barge, State School Superintendent
     “Making Education Work for All Georgians”
     www.gadoe.org
                  SFA Responsibility
7CFR 210.21 and 220.16 –
State agencies and SFAs shall comply with the
                        requirements of this part and
                        7CFR 3016 or 3019, as
                        applicable, which implement the
                        applicable OMB circulars,
                        concerning the procurement of
                        all goods and services with
                        nonprofit school food service
                        account funds.

    Dr. John D. Barge, State School Superintendent
    “Making Education Work for All Georgians”
    www.gadoe.org
                 SFA Responsibility
7CFR 210.14(a) –
SFA shall maintain a nonprofit school food
service. Revenues received
by the nonprofit school food
service are to be used only
for the OPERATION or
IMPROVEMENT of such
service.

       Dr. John D. Barge, State School Superintendent
       “Making Education Work for All Georgians”
       www.gadoe.org
                      Types of Revenue
Revenues include all funds received by or accruing to the
  non-profit SNP account.
             - meal reimbursement
             - student and adult payments
             - state and local funds
             - a la carte
             - return of rebates, discounts and incentives
               associated with purchases from account.

        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
                                                         3/28/2011
                          Use of Funds
• Procurements made that are not in
  accordance with approved local
  board policy or in violation of
  federal regulations can not be paid
  for with SNP funds. (210.21(c)(3))

    Dr. John D. Barge, State School Superintendent
    “Making Education Work for All Georgians”
    www.gadoe.org
                       SFAs must know:
• Local Board approved policies and procedures
• Local procedures can not be in conflict with Federal
  regulations
• The most restrictive policies must be followed
• There are no State procurement regulations
• 7CFR 3016.36
• Funds are only for improvements and operations of program
• Based on Circular A-87B.


        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
      Competitive Procurement Must -
- First principle of procurement, Feds #1 goal
-Be conducted in a manner that maximizes full and open
    competition
-Occur regardless of system threshold – every penny spent from
    SNP account regardless of dollar value
-Use appropriate method to procurement need




        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
               Purchasing Thresholds
        Purchases above this amount must use formal
        procurement methods.

thresholdthresholdthresholdthresholdthresholdthresholdthresholdthresholdthres


        Purchased made below the threshold are
        considered small purchased and may use an
        informal procurement method.

          Dr. John D. Barge, State School Superintendent
          “Making Education Work for All Georgians”
          www.gadoe.org
           Purchasing Thresholds
• Federal - $100,000

• State          - does not mandate a threshold

• Local          - approved by local Board
                 - May not be less restrictive than Feds
                   (more than Federal level)
      Dr. John D. Barge, State School Superintendent
      “Making Education Work for All Georgians”
      www.gadoe.org
Full and Open Competition
                Most important principle




  #1 goal of Federal Procurement.
Foundation for all properly conducted
             procurement
Dr. John D. Barge, State School Superintendent
“Making Education Work for All Georgians”
www.gadoe.org
  Full and Open Competition
Full and open competition means
that all suppliers are on a level
playing field and have the same
opportunity
to compete.

   Dr. John D. Barge, State School Superintendent
   “Making Education Work for All Georgians”
   www.gadoe.org
 Full and Open Competition
3 Reasons for Full and Open Competition
  Accountability to tax payers
      Ensure tax dollars are used efficiently and effectively, without waste
       or abuse
      Helps purchaser receive best & most responsive product at lowest
       price
  More and/or higher quality goods
      Purchaser likely to receive more goods or services than without
       competition
  Protection of business and health of economy
      Businesses keep trying to differentiate themselves from one
       another in terms of price, quality and innovation
  Dr. John D. Barge, State School Superintendent
  “Making Education Work for All Georgians”
  www.gadoe.org
 Full and Open Competition
                SFAs are prohibited from:




Unduly restricting competition
Eliminating competition
   Dr. John D. Barge, State School Superintendent
   “Making Education Work for All Georgians”
   www.gadoe.org
      Full and Open Competition
    Examples of restricting or eliminating competition include:
   Placement of unreasonable requirements
   Using Geographic Preference (except as allowed by regs)
   Procedural practices
   Allowing a potential contractor to draft procurement terms or
    specifications (vendor may not take part in bid)
   Poorly written specifications
   Changing award criteria without notifying all respondents
   Failure to properly plan procurement

         Dr. John D. Barge, State School Superintendent
         “Making Education Work for All Georgians”
         www.gadoe.org
How do you define ethics in School
           Nutrition?
• Proper Financial Management, with
  appropriate Internal Controls that avoid
  Conflicts of Interest and Nepotism to ensure
  that all property and funds are utilized
  properly, all actions are Fair, Accurate, and
  Truthful, and all children receive a Safe,
  Healthy, and Cost-effective meal.

      Dr. John D. Barge, State School Superintendent
      “Making Education Work for All Georgians”
      www.gadoe.org
   Is there a state Code of Ethics?
• The Georgia Professional Standards
  Commission’s Code of Ethics for Educators will
  apply to certified school employees.

• Local Education Agencies may have additional
  policies for their staff.


      Dr. John D. Barge, State School Superintendent
      “Making Education Work for All Georgians”
      www.gadoe.org
   Is there a difference between ethical
       behavior and illegal behavior?
• Sometimes!

• What is unethical may not be illegal, so

• What is legal may not be ethical, but

• WHAT IS ETHICAL IS ALWAYS LEGAL.


       Dr. John D. Barge, State School Superintendent
       “Making Education Work for All Georgians”
       www.gadoe.org
   Is there a difference between ethical
       behavior and illegal behavior?

• For example:
   – Approving your own purchases is not illegal, but it is
     unethical.

   – Certifying time and effort reports that you know to be
     incorrect is BOTH unethical and illegal (with fines of
     up to $10,000 for each false report.)

        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
 Why does another’s unethical behavior
             affect me?
• Creates a bad reputation for the program and
  state as a whole.
• Draws attention and additional monitoring to
  the program and state.
• As public officers trusted with public money,
  there is an inherent duty to be faithful to our
  community and peers.

      Dr. John D. Barge, State School Superintendent
      “Making Education Work for All Georgians”
      www.gadoe.org
     What do I do if I uncover unethical
                behavior?
• First, if possible, follow local policies and chain of
  command
• If that is unsuccessful, notify program regulatory bodies,
  such as GaDOE.
• If you have grave concerns, notify the appropriate
  “watchdog” agency, such as the USDA, Office of the
  Inspector General, Georgia Department of Community
  Health, etc.


        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
                    Did you know ….
                   80%
    Of SNP food dollars are spent on
                  20%
              of the items

SO… find out where you spend your money

     Dr. John D. Barge, State School Superintendent
     “Making Education Work for All Georgians”
     www.gadoe.org
        What if a problem arises?

•   Have vendor follow complaint procedures
•   What does your contract say?
•   Seek system advise
•   Call our office with any questions or concerns



        Dr. John D. Barge, State School Superintendent
        “Making Education Work for All Georgians”
        www.gadoe.org
Dr. John D. Barge, State School Superintendent
“Making Education Work for All Georgians”
www.gadoe.org
• In accordance with State and Federal Law, the Georgia Department of
  Education prohibits discrimination on the basis of race, color, religion,
  national origin, sex, disability, or age in its educational and
  employment activities. Inquiries regarding the application of these
  practices may be addressed to the General Counsel of the Georgia
  Department of Education, 2052 Twin Towers East, Atlanta, Georgia,
  30334, (404) 656-2800.

• In accordance with Federal law and U.S. Department of Agriculture
  policy, this institution is prohibited from discrimination on the basis of
  race, color, national origin, sex age, or disability. To file a complaint of
  discrimination, write to USDA, Director, Office of Civil Rights, 1400
  Independence Avenue, SW, Washington, DC 20250-9410 or call (800)
  795-3272 or (202) 720-6382 (TTY). USDA is an equal opportunity
  provider and employer.

               Dr. John D. Barge, State School Superintendent
               “Making Education Work for All Georgians”
               www.gadoe.org

								
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