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Franklin Township Board of Education

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FRANKLIN TOWNSHIP PUBLIC SCHOOLS

2301 Route 27

Somerset, New Jersey 08873

This manual should be reviewed by all staff who are involved in the purchasing process. This includes

administrators, department heads, teachers and support staff. It is imperative that everyone adhere to all purchasing

laws and guidelines.

The purpose of this Purchasing Manual is to assist all Board of Education employees in the proper purchasing

practices to be in full compliance with:

New Jersey Public School Contracts Law N.J.S.A. 18A:18A-1 et seq.;

New Jersey Administrative Code N.J.A.C. 5:34-1 et seq.;

Board of Education Policy;

Any other federal, state law and code;

NJQSAC SOA Fiscal Management Item #10; and

Local Finance Notices – NJ Division of Local Government Services

The Purchasing Manual is designed to achieve three (3) goals:

1. Follow the law and Board Policy on purchasing;

2. Promote efficiency in the purchasing practices; and 3. Achieve savings of money through proper purchasing practices.

All users of the purchasing system need to help achieve these goals through proper planning. Remember to allow

yourself enough time between entering a requisition and the actual date materials or services are needed.

Please think of purchasing in terms of a whole year. What items and services do you need on an annual basis?

Through proper planning, we can eliminate much of the frustration that is encountered in all public school

purchasing procedures.

If you have any questions concerning the following guidelines, please contact the Purchasing Manager for

assistance.

Remember all purchase orders, including student activity account purchases, are public records subject to review

by Department of Education (DOE) officials and auditors.

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Table of Contents

Section P a g e

Ethics in Purchasing …….….................................................................................................... 4

Unauthorized Purchases ............................................................................................................ 6

Prohibited Actions……………… … … . . .................................................................................. 7

Authority and Purchase Orders................................................................................................... 8

Standard Procedures….............................................................................................................. 13

Bids and Purchasing……. ......................................................................................................... 15

Requisition Responsibilities ………. .........................................................................................19

Budget Account Number Coding and Grants ………………………………………………… 24

Textbooks …………………………………………………………………………………….. 25

Appendix ...................................................................................................................................27

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ETHICS IN PURCHASING

Financial Interest in any Contract; Direct or Indirect

No employee or board member may have a direct interest in any contract or agreement for the sale of goods

and services to the Board of Education, nor receive any benefit, compensation or reward from any contract for the

sale of goods and services to the Board of Education.

Reference—N.J.S.A. 18A:6-8. Solicitation/Receipt of

Gifts from Vendors - Prohibited

School board members, school officials and employees, or members of their immediate family are prohibited from

soliciting, receiving or agreeing to receive any compensation, reward, employment, gift, meal, honorarium,

travel, reimbursement, favor, loan, service, or other thing of value from any person, firm, corporation,

partnership, or business that is a recipient of a purchase order from the district, or a potential bidder, or an

applicant for any contract with the district, based upon an understanding that what is solicited or offered was

for the purpose of influencing the board member or school employee in the discharge of their official duties.

This policy shall be consistent with the School Ethics Act—N.J.S.A.

18A:12-21 et. seq.

School District Responsibility – Recommendation of Purchases

School officials and employees who recommend purchases shall not extend any favoritism to any vendor. Each

recommended purchase should be based upon quality of the items, service, price, delivery, and other applicable

factors in full compliance with N.J.S.A. 18A:18A-1 et. seq.

School officials and employees are to avoid recommending purchases from members of their families,

businesses that employ members of their families and from businesses in which the official, employee or members

of their immediate family have a direct financial interest.

School officials and employees who are authorized to approve requisitions/purchase orders and/or to recommend

purchases or business transactions by virtue of their approval of a requisition/ purchase order certify that their actions

are consistent with this policy and all applicable statutes.

Vendor Responsibility – Doing Business with the Board of Education

Any vendor doing business or proposing to do business with the Franklin Township Board of Education, shall

neither pay, offer to pay, either directly or indirectly, any fee, commission, or compensation, nor offer any gift,

gratuity, or other thing of value of any kind to any official or employee of the Franklin Township Board of

Education or to any member of the official’s or employee’s immediate family.

No vendor shall cause to influence or attempt to cause to influence, any official or employee of the Franklin

Township Board of Education, in any manner which might tend to impair the objectivity or independence of

judgment of said official or employee.

Vendor Certification

Vendors will be asked to certify that no official or employee of the Franklin Township Board of Education or immediate family members are directly or indirectly interested in this request or have any interest in any portions of profits

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thereof. The vendor participating in this request must be an independent vendor and not an official or employee of the

Franklin Township Board of Education.

Violations of the Policy

In accordance with N.J.S.A. 18A:6-8, any school district employee who violates the terms of this policy may be subject to

withholding of annual increments, suspension, demotion, school ethics complaint, termination and/or revocation of license

to teach or to administer.

CRIMINAL CODE CITATION

All district employees must understand the seriousness of the section on Ethics in Purchasing. N.J.S.A.

2C:27-9 Unlawful Official Business Transaction

“A public servant commits a crime of the fourth degree if, while performing their official functions on behalf of a

governmental entity, the public servant knowingly transacts any business with themselves, a member of his immediate

family, or a business organization in which the public servant or an immediate family member has an interest.

N.J.S.A. 2C:27-10 – Acceptance or Receipt of Unlawful Benefit by Public Servant for Official Behavior

“A public servant commits a crime in the fourth degree . . . if the public servant directly or indirectly, knowingly solicits,

accepts or agrees to accept any benefit from another for or because of any official act performed or to be performed by the

person or for or because of a violation of official duty.”

If you have any questions concerning recommendations of purchasing goods and services, please contact the

purchasing department.

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UNATHORIZED PURCHASES

Any Board of Education employee who orders and/or receives any materials, supplies or services without first

going through the approved requisition process has made an unauthorized purchase and may be held

responsible for payment of the order.

Unauthorized purchases are a violation of State Law and Board Policy.

There are to be NO unauthorized purchases.

The penalties listed below may be assigned by the Superintendent of Schools for unauthorized purchases:

Penalties for Unauthorized Purchases

First Offense Letter in Personnel File Pay for Purchase Second Offense Loss of Increment Pay for Purchase Third Offense Loss of Employment /Tenure Charges Pay for Purchase

Corrective Action for Non-Compliance

If the Purchasing Agent has determined that an unauthorized purchase has been made, the responsible

administrator will be advised. The Superintendent of Schools may receive a copy of the memo.

The responsible administrator shall notify the staff member responsible, and prepare a memo explaining the

reasons why proper purchasing procedures were not followed. The memo will be attached to the purchase order and a

copy of the memo may be sent to the Superintendent of Schools.

The Purchasing Agent may also send a letter to the vendor who provided either unauthorized services or goods. The

letter will advise the vendor that payment may not be made for the unauthorized purchase.

At any time, during the corrective action process, the Superintendent may invoke the penalties for non-compliance.

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PROHIBITED ACTIONS

Employees Prohibited from Signing Contracts

Board of Education employees are prohibited from signing any contract offered by a vendor.

The authority to sign and execute contracts after Board of Education approval lies with the Board President and/or the

Board Secretary/Purchasing Agent.

Contracts signed by an employee shall be considered non-binding, with the employee accepting full

responsibility for the costs of the contract.

Private Purchases Prohibited

Goods and services procured by the Franklin Township Board of Education are exclusively for the use of the Franklin

Township Board of Education and if applicable, other public and non-public schools. These goods and services are

purchased through the approved purchase order process.

Employees of the Franklin Township Board of Education are prohibited from purchasing goods and/or services for

private use from the bid prices and/or quotation prices offered to the Franklin Township Board of Education.

Non-Essential Purchases Prohibited

According to the New Jersey Accountability Regulations, a number of items are considered non-essential. The list is not

all-inclusive and may be amended as needed throughout the school year. Board of Education funds may not be used for:

Meals; refreshments; catering; or food unless specifically allowed in the New Jersey Accountability Regulations.

Examples include but are not limited to staff meetings, functions honoring employees, retirement functions, or

athletic events.

Celebration; Decorative or acknowledgement items including but not limited to gifts for employees;

teacher appreciation, gift baskets; greeting cards, bereavement flowers; fruit basket acknowledgements, and

student entertainment however, reasonable retirement plaques and costs for commencement and convocation

activities are permitted.

All library books, magazines, and videos/DVDs for other than educational purposes only.

Extracurricular activities and field trips that are not part of the instructional program and have educational value. A

copy of the board approval must be attached to the purchase order.

Blanket Purchase Orders – Prohibited

A blanket purchase order is an order that sets aside a lump sum of money to a specific vendor to order variable

services/consumable supplies over a period of time. This includes but is not limited to traditional “open’’ purchase orders

for: Federal Express and UPS, etc.

Electronic Delivery of Receiving Copy – “Pink” - Prohibited

Never send a copy of a receiving copy (Pink) to a vendor! A PO is a contract. The receiving copy is not the contract.

Only board approved designees may electronically deliver the contract.

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AUTHORITY AND PURCHASE ORDERS

Authority to Purchase

State Statutes, Administrative Code and Board Policy govern the purchase of goods and/or services by a Board of

Education. New Jersey State Law (18A: 18A-2(b)) assigns the authority to the Purchasing Agent to make purchases for

the Board of Education.

The Purchasing Agent is the only individual in the school district that has the authority to make purchases for the

Board of Education.

The Franklin Township Board of Education, by Board resolution, authorizes the Purchasing Agent for the school

district.

Authorized Purchases

All requests for purchases of goods and/or services must be made through a requisition. Requisitions are used to

document requests for purchases. Once approved and signed by the Purchasing Agent, the requisition becomes a valid

purchase order.

A purchase order, pursuant to State Law, is a document issued by the Purchasing Agent authorizing goods or

materials to be ordered for the school district or for work/service to begin. No goods/materials may be ordered or

work/service be authorized to begin by any other individual in the school district other than the Purchasing

Agent.

Valid Purchase Orders

Valid purchase orders include orders for services with a pre-determined set of recurring costs that are supported by a

contract, quote or bid that defines those established costs.

For example, we have an agreement with a vendor to remove garbage at a fixed cost per month for the school year.

This can be covered by one purchase order with payments made for a pre-determined set of recurring cost on a

monthly basis. However, the vendor will also charge us additional costs when asked to do work above the agreed

upon contract. A new separate purchase order needs to be submitted for these additional charges. The purchase

order is submitted once the need is identified and prior to the service being rendered.

Monthly recurring costs for specific services that are covered by a contract but vary by month can use the same

base purchase order number with a month designation. For example, for PSE&G, there will be purchase orders

21xxxx-01, 21xxxx-02……21xxxx-12. The twelve purchase orders with the same base number will be

established in July using monthly estimates and actuals will be paid each month.

Contracts: Purchase Order Required

The award of a contract to a vendor approved by the Board of Education at a public meeting does not automatically

authorize any employee to use the services of, or purchase materials from, the vendor. All contract purchases require the

issuance of a purchase order authorizing the purchase of services and/or goods and materials from the vendor.

The following are additional requirements for all purchase orders for contracts awarded as “Not to Exceed”

1) They must contain the following wording: ‘’No additional services are to be provided without

authorization by the FTBOE that would exceed the amount of the purchase order.’’

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2) They must be properly monitored and modified for additional services prior to services actually being

performed. If additional services are needed, a new purchase order must be created.

Design of a Purchase Order

The purchase order is made up of four sheets, each color-coded for a certain purpose. Listed below are the names of the

appropriate color and the purpose of each sheet. Requisition/purchase orders can be obtained in Systems 3000 if needed.

Copy Color Flow

Vendor Copy White (top) Sent to vendor to order items/provide services

Voucher Copy White (2nd) Sent to vendor for signature and return to Accounts Payable

Business Office Copy Yellow Filed in Business Office

Receiving Copy Pink Sent to originator; returned to the Business Office signed acknowledging the receipt of the goods/services.

Delivery of a Purchase Order

The primary method for mailing purchase orders has been via USPS. Purchase orders will primarily continue to be

mailed using this method. Electronic delivery of purchase orders is a secondary option available if vendors seek this

method as their preference. As per district attorney guidance, the Purchasing Manager and Assistant Superintendent of

Business, being board authorized, will be the only designees to send purchase orders electronically directly to the

vendor. If any department has vendors that would prefer electronic delivery instead of traditional mail please advise the

Purchasing Manager for future orders with a contact and delivery email. As this is a secondary method, during times

when the Purchasing Manager is not present, the purchase orders will be mailed out via USPS.

Receipt of Goods and Services

The originator of the purchase order should adhere to the following process when verifying the receipt of materials,

goods, and services.

1. Receipt of Items Ordered

It is important that all items received be immediately checked. Please note the following:

a. Obtain receiving copy (pink) of purchase order and packing slip of items ordered.

b. Open boxes and check off items received on the receiving copy and the packing slip.

c. If all items are enclosed, send back the receiving copy of the purchase order to accounts payable.

All receiving copies (pink) of purchase orders should be signed and sent to Accounts Payable within five

(5) days of receipt of items. Vendor checks are paid once a month (See Appendix G, District Payment Schedule). If this payment is to be the only payment made to the vendor, mark the receiving copy (pink) as

FINAL.

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Prompt Payment Law

The Prompt Payment Law or P.L. 2018, c.127, has taken effect starting February 1, 2019. This law states that school

districts must pay a vendor for goods or services rendered no later than 90 days from the later of:

Receipt of invoice

The date when goods or services are received

If payment is not made in less than 90 days than our district must pay the vendor 2% interest in addition to the original bill as

per law. If this were to occur, a separate PO must be created from the originators department to cover the interest charges.

This additional interest fee must be paid in less than 30 days in additional to the original amount owed.

Example:

ABC Company delivers goods to the district and mails an invoice for payment for $5,000. Payment is not made before the

90 days; Accounts Payable does not receive the signed receiving copy (Pink) from the PO originator that the item was

received.

The district is now liable for paying the vendor the late fee of 2% ($100). This interest payment of $100 and the original

amount of $5,000 is due within 30 days. The PO originator shall pay the late fee from their budget in order to complete the

state law obligation.

The business office strives to pay invoices promptly. We appreciate your cooperation in ensuring that we are able to continue

our good reputation and ensure we are able to abide by this new state law. Anyone who receives invoices / vouchers from a

vendor needs to send it immediately to Accounts Payable for processing.

Vendor Payment

The district holds one (1) board meeting a month. At this meeting the board will approve the bills list. This is a list of

payments that the board will be issuing checks to vendors. After the board approval the checks are mailed to the

vendors as early as the next day.

In order for a check to be prepared for the bills list and board approval, the business office needs the following:

Signed voucher from vendor from purchase order issued

Receiving copy (Pink) signed by originator, all copies

Vendor invoice

Vendor compliance forms

Cancellation of Purchase Orders

The purchase order originator needs to notify the vendor of their intent to cancel a purchase order and if necessary,

return any products to the vendor. All requests to cancel purchase orders must be documented by completing Form

P-6 (See Appendix D) and forwarding it to your Business Office contact. The P-6 must include an explanation of the

need to cancel the purchase order, when the purchase order was cancelled and who was contacted from the vendor.

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Resolving Order Problems

Problem: Back Orders

Sometimes items ordered will not be received in the first shipment. This is known as a back order. The

packing slip will have back order written on those particular items.

Process to Follow: Back Orders

If the order is incomplete because there is a back order, do not wait for the next shipment. Please do the

following:

Mark on your receiving copy (pink) of the purchase order those items you did not receive.

Make a copy and keep your receiving copy (pink) and copy the packing slip.

Send the copy of the receiving copy (pink) and packing slip to the Business

Office.

Upon receipt of the back order in the next shipment, check received items off on the pink receiving copy

and the packing slip, and then send both copies to the Business Office.

If a back order item is not received with 2 months, call the vendor and cancel the purchase order.

Problem: Items Missing from Order

Sometimes items are marked on the packing slip as being delivered but are missing from your shipment.

Process to Follow: Items Missing

Call the company and tell them what was missing.

Mark on the receiving copy and packing slip what items were missing.

Make a copy and keep your receiving copy (pink) and copy the packing slip.

Send the copy of the receiving copy (pink) and packing slip to the Business Office.

Upon receipt of the missing item in the next shipment, check received items off on the pink receiving

copy and the packing slip, and then send both copies to the Business Office.

Problem: Items Damaged or Wrong Item

Sometimes you will receive items that are damaged or the wrong item.

Process to Follow: Items Damaged or Wrong Item

Call the company and ask them what the procedure is for returning damaged or wrong items. Return the item(s) to the company. On the receiving copy (pink) and the packing slip, mark what items were returned and the reasons for

being returned. Please note how the items were returned (UPS/PO/Vendor Pick Up). Send a copy of the receiving copy (pink) and packing slip to the Business Office. Upon receipt of the replacement item in the next shipment, check received items off on the pink

receiving copy and the packing slip, and then send both copies to the Business Office.

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Problem: Discontinued Item

Sometimes the items you requested have been discontinued.

Process to Follow: Discontinued Item

ark on the receiving copy (pink) of the purchase order “discontinued.”

Do not call the company for a replacement item. You must complete a new purchase order

for any and all replacement items.

If any of the above conditions result in a change to the total amount of the purchase order, a P-6 form

(see Appendix D) must be completed and forwarded to accounts payable. If the request is to increase

the PO it cannot exceed 10% of the original order amount.

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STANDARD PROCEDURES

What Needs to be Board Approved?

The following transactions need to be board approved before a purchase order is issued:

Anything costing over $44,000

Preview of Materials

All staff members must receive permission from Administrators, Directors/Supervisors or Principals to preview materials.

After the preview process has been completed, the item must be returned. If there is a desire to purchase the

previewed item, then a purchase order must be prepared for a new item.

Reimbursements: Employee

A requisition (purchase order) must be prepared locally for all employee reimbursements. The Board of Education only recognizes an employee reimbursement purchase order when it pertains to pre-approved travel including related

meals and conference admission fees, dues, license fees and tuition. The Board will not reimburse employees for goods and

services personally purchased by the employee unless previously approved in writing by the Purchasing Agent. These

purchases should be rare and only be made in emergency situations. A written request including a quote or estimate of

the expense must be sent by a Principal/Director/Supervisor to the purchasing agent for their approval before the items are

purchased. The district will reimburse taxes to employees.

Entitlements: Mileage

When an employee is submitting mileage for payment they must include the insurance card(s) and registration(s) that

cover that time of travel they are claiming. Mileage shall be submitted to the business office for processing when the

amount claimed exceeds $50.

Student Activity Accounts

Purchases made through Student Activity Accounts may not be reimbursed with Board funds. The Purchasing Agent will not sign requisitions made payable to Student Activity Accounts for the aforementioned purpose. Funds in

Student Activity Accounts are used to account for funds derived from activities of pupil organizations and to account

for the accumulation of money to pay for student group activities. The same holds for the Athletics Account. All

procedures established for the Student Activity and Athletic Accounts must be followed.

Fines

All monies collected for book, locker, library, and ID fines/fees must be forwarded to the business office within one (1)

month of being collected or 48 hours after the close of the 2021-2022 school year so that the money can be refunded to the

general account enabling replacement materials to be ordered. Collected fines must be accumulated and identified by

curriculum area.

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Requisition Cut Off

All staff should be alerted that requisitions for the present school year will not be accepted after March 1st except for emergencies unless otherwise notified. Cut-off may be earlier if necessary due to budget constraints. If any open requisitions are not approved for processing then they will be deleted before the new budget rollover.

Training Sessions

All school personnel involved in the purchasing process must review and understand this manual. Normally personnel

will attend a mandatory annual training session regarding proper purchasing procedures. If conditions are not ideal for an

in-person training, all staff will be provided the manual electronically to review. Any questions can be answered by the

Purchasing Manager. The trainings will either be held each year around May or August. Additional trainings may be

requested.

Business Office Contacts

All correspondence with the Business Office, unless otherwise specified, should be made via your designated contact

(See Appendix H for the List of Business Office Contacts).

Website Access

Supporting documents have been posted to the Franklin Township Public Schools website. To access these documents

you will need to perform the following steps:

Go to www.franklinboe.org

Click on “Sign in” in the upper right corner

After signing in, select Purchasing from the Business Office tab

Select left side, “Forms used by Purchasing Department”

Purchase of Food Supplies – Supermarkets

New Jersey state law and code excludes the purchase of food supplies from the bidding process if the food supplies are

for the school cafeteria or home economics classes. Food supplies purchased from the supermarkets shall be in

compliance with state law and code and only for the approved list of situations. New Jersey Administrative Code

6A:23A-16.5(b) clearly notes that food supplies include those supplies that are “eaten or drunk”. Administrators are to

ensure that purchases from the supermarkets have only items listed that follow the code. The Business Office will

review the register receipts and highlight those items that do not follow the code. If food supplies are to be purchased for

other needs that differ than the above please contact the Purchasing Manager.

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BIDS AND PURCHASING

Bid Limit - $44,000

New Jersey State Law guides the Franklin Township Board of Education on how money can be spent by the

district for the contract year on materials, supplies, and services.

This restriction is called the bid threshold or bid limit. The bid limit is $44,000. This means that any specific

item, class of items, and/or services of a similar nature, purchased by the school district totaling more than

$44,000 for the contract year must be competitively bid. This restriction is for the entire district and not by

location or schools. Bids are solicited and approved each year on a school year basis. For example, the

Franklin Township Board of Education orders more than $44,000 in educational supplies, so we must issue a bid

or use a vendor that has won a bid (state contract, co-op, or individual Franklin Township bid). We cannot use

just any vendor. Please make sure that staff does not use unapproved vendors. You cannot circumvent the law by

splitting purchases to be under the $44,000 bid limit. If you find that your purchases may exceed the $44,000 bid

limit, please contact the Business Office at once.

Timeline - Annual Bids for 2021-2022

The Board of Education requests that Administrators, Directors/Supervisors and Principals start to plan and

prepare for Annual Bids. The proposed time lines are as follows:

January Technical specifications to be prepared and reviewed.

March

Purchasing Agent prepares final bid specifications to be drafted in a manner to

encourage free, open, and competitive bidding.

April/May

Annual bids are received, opened and tabulated by Purchasing Agent.

May/June

Business Office prepares bid resolutions for Board approval.

Bidding: Time Frame

The formal bidding process usually takes about 6-8 weeks from start to finish. Please plan appropriately. An

outline of the bidding process is located in Appendix E.

Exceptions to the Bid Limit

New Jersey State Law allows for some exceptions to the bid and quotation limits. There are approximately 20

exceptions where a Board of Education does not have to go for bid. Some of them are:

1. Purchasing through State Contract;

2. Professional services as outlined by New Jersey law;

3. *Textbooks, kindergarten supplies, student produced publications, library goods;

4. *Legal notices, food supplies, milk, utilities, insurance, election expenses, travel and conferences;

5. Contracts with other government entities; county and state colleges.

6. Extraordinary Unspecifiable Services (EUS) – Negotiated Agreements, Artists services that cannot

reasonably be described by written specifications.

7. Advertisement Services, Publish Legal Notices

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8. Public Utilities

9. Printing, Bonds Documents, etc.

10. Insurance and Consultant Services

11. Equipment Repairs (EUS)

12. Election Expenses

13. Expense for Travel/Conferences

14. Goods/Services for the support or maintenance of proprietary computer hardware and software

15. Student Services

16. Vending Machines

* These purchases may be subject to the quotation process pursuant to N.J.S.A. 18A:18A-37(a) if

practicable.

Please contact the Purchasing Agent for further explanation if needed.

State Contract and Cooperative Purchasing

Pursuant to N.J.S.A. 18A:18A-10(a), a Board of Education may purchase goods and services through State

Contract (NJSTART) vendors. If the purchase exceeds the bid threshold, the Board of Education must adopt a

resolution awarding the contract.

We belong to the following local cooperatives:

Educational Data Services of Saddle Brook, NJ – www.ed-data.com

Hunterdon County Educational Services Commission – www.hunterdonesc.org

Somerset County Educational Services Commission – www.sc.esc.k12.nj.us

Middlesex County Educational Services Commission (ESCNJ) – www.escnj.us

We belong to the following national cooperatives:

Sourcewell – www.sourcewell-mn.gov

Keystone Purchasing Network – www.thekpn.org

Buyboard – www.buyboard.com

Omnia Partners - http://www.omniapartners.com/publicsector

All purchase orders shall include the following:

1. Contract Number;

2. Notification of Award; 3. Approved Price List; and

4. Shipping and Handling Included.

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Computers, Copiers/Printing, Projectors

For computers, overhead projectors (including replacement bulbs), printing and faxing needs, contact the Director

of Technology who will place technology orders in accordance with the technology plan as needed. Document

cameras, specific software packages and staples for the copiers are the responsible of the schools.

Professional Services

Although Professional Services, as defined in Title 18A:18A-5, do not require competitive bids or quotations,

DOE regulations may require the Board of Education to obtain competitive proposals for any professional service.

Contact purchasing as an RFP or Competitive Contract may need to be issued. All administrators who need

professional services contracts should contact the Assistant Superintendent for Business.

Other Service and Consultant Contracts

The Franklin Township Board of Education must approve all service and consultant contracts if the contract

exceeds $6,600.00. If you plan to recommend a service provider/consultant contract, please be advised of the

following:

1. A resolution must be placed on the Board of Education meeting agenda. All requests for resolutions

for professional service providers/consultants are to be sent to the Assistant Superintendent for

Business’ Office.

2. A written proposal from the service provider/consultant outlining the following must also be

provided, and included in the purchase order:

a. Name, address of service provider/consultant (No P.O. Box #’s);

b. A description of services to be provided; c. Starting date of service; ending date of service;

d. The total cost of the services and the terms of payment (rate must be all inclusive – no additional

expenses);

e. W-9; New Jersey Business Registration Certificate; Chapter 271 Political Contribution forms; Affirmative Action evidence; Disclosure of Investment in Iran Form, W-9 Form, and Insurance.

Contracts should not have late fees or arrangements for payouts that cannot be met. No service is to be

performed without a properly executed contract, approved board motion, a purchase order, and compliance forms.

Emergency Contracts

Emergency Contracts are strictly regulated by N.J.S.A. 18A: 18A-7. A situation must exist affecting the health or

safety of the occupants of school property that requires the immediate delivery of articles or the performance of a

service to alleviate the emergency.

The Emergency Contract process is reviewed in Appendix F. Please note that the Purchasing Agent and

Superintendent of Schools must be notified first of all emergency purchase requests.

Only the Purchasing Agent may award an Emergency Contract.

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EUS—Extraordinary Unspecifiable Services

The EUS procurement method is used for the procurement of insurance and insurance consultant services. The

Purchasing Agent will coordinate all EUS activities pursuant to N.J.S.A. 18A:18A-5 (a) (10) and N.J.A.C. 5:34-

2.1 et seq.

Federal Funds—Procuring Goods and Service When Using Federal Funds

All non-federal entities (school districts) are to follow NJ Public School Contracts Law when procuring goods and

services using federal funds except where the federal standards detailed in 2 CFR Part 200 are in conflict or more

restrictive. Effective July 1, 2015, school districts when procuring goods and services using federal funds, are to

comply with the Uniform Administrative Requirements—2 CFR Part 200.317

Federal Funds Procurement Thresholds—More Restrictive

More Restrictive Procurement

Threshold Activity Citation_

Less than $10,000 Micro-purchase; sound business practices 200.320 (a); 200.67

$10,000-$39,999 Use of Quotations; Use of RFP’s 18A:18A-37 (a)

$40,000 or more Use of Bids; Use of Competitive Contracting 18A:18A-4 (a)

Formal advertising 18A:18A-4.1 et seq.

Purchases, Contracts Exceeding the Bid Threshold

Pursuant to State Law N.J.S.A. 18A:18A-5 all purchases and contracts exceeding the bid threshold of $44,000, shall be awarded by Board resolution at a public meeting of the Board of Education. This includes all items

exempted from bidding and all State Contract purchases that exceed $44,000. Only the purchase of textbooks is

exempt from this law. Administrators and Supervisors must anticipate their needs as certain purchases once

allowed just by purchase order now must be approved by the Board of Education first, then a purchase order can

be signed and mailed.

Student Activity Account Purchases

Pursuant to State Law N.J.S.A. 18A:18A-5a (21), purchases made through Student Activity Accounts that exceed

the bid threshold shall be awarded by the Board of Education at a public meeting. Examples of items purchased

through the Student Activity Accounts that may exceed the bid threshold are class gift, class rings, proms,

yearbooks and field trips.

QUOTATIONS AND QUOTATION PROCEDURES

Quotations (LEA Purchases)

The quotation limit (threshold) is $6,600. This means that any specific item or group of items of a similar nature

purchased by the school district, totaling more than $6,600 and less than $44,000 for the contract year, must

be competitively quoted or advertised for bid at the discretion of the Purchasing Agent.

Pursuant to N.J.S.A 18A:18A-37(a), the school district shall receive two written quotations. Evidence of the

quotation process shall be kept on file. A copy of the quotations shall be attached to the purchase order. There

will be no telephone quotations except in a case of extreme urgency. Single Source Item/Service – still need a

second quote from another company saying they cannot provide the item/service with their name, address and

telephone number. You cannot circumvent the law by splitting purchases to be under the quote threshold.

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REQUISITION RESPONSIBILITIES

Responsibilities of the Originator of the Requisition – Preparing a Requisition

The person who prepares the requisition has certain responsibilities before the requisition is sent to the

Administrator, Director/Supervisor, or Principal for approval. The originator is to ensure the following:

Use Approved Vendors- Systems 3000 has many vendors that can be used. Most of these vendors are

approved and have compliance forms filed. If you do not see a vendor that you would like to use

please contact purchasing to assist you.

Check to ensure available funds – Systems 3000 will prevent the entering of requisitions lacking

sufficient funds. A Transfer Request Form must be submitted to the Comptroller, and approved by the

Asst. Superintendent for Business prior to entering the requisition. See Appendix A – Transfer

Request Forms. Transfers of funds have to be approved by the Board of Education at a public

meeting. Substantive transfers of money may require county and/or state approval and can result in a

delay.

Correct Vendor Information– Ensure correct vendor is being used for the items/services requested.

Make use of State contracts, cooperative vendors such as Ed-Data and county ESCs, and bidding

when necessary and before using other similar vendors. State contract and county ESC vendors can

also be used. School supplies should only be ordered from other vendors unless all of the other

vendors above do not have the required or similar item(s). The type of procurement must be

provided in detailed description on the requisition (state contract, bid, coop, open market, quote or

other) with associated bid or co-op numbers, etc.

When using Federal grant money, check to ensure that the vendor is not debarred, suspended or

otherwise excluded, or ineligible for participation in Federal assistance programs or activities at:

http://www.state.nj.us/treasury/debarred/. The purchase order needs to ensure that the check was

performed and that the vendor is eligible.

All Board checks are made payable to the vendor name entered on the requisition. Be careful to

select the proper vendor and address. If vendor information needs to be changed please fill out a

Vendor Form and give to the Purchasing Manager so the update can be made.

In some instances, when the check must be made payable to other than the vendor, the information

must be included in the MISC. section – Notes field of the requisition. Example:

PLEASE MAKE CHECK PAYABLE TO:

JOHN DOE, TREASURER NJPSA

If the vendor you wish to use is not in Systems 3000, complete a vendor form and provide the

purchasing manager with the required documentation (See Attachment K).

Description of Items, Services, Costs and Item Numbers – Items and/or services requested are to

be described clearly with correct and up-to-date item numbers, number of units and costs. Please use

latest pricing available. Do not say “See Attached Quote” unless there are more than 10 items.

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Shipping Costs – Shipping and handling costs are to be added to all purchase orders as the last detail.

Please read the catalog or contact the vendor to determine the actual shipping and handling costs. If

the shipping and handling charges are unable to be ascertained, use 10% estimated shipping and

handling. If there are no shipping and handling charges, enter “Shipping and Handling Included”.

There are no shipping costs with State Contracts.

Delivery Address – Attention of: – The delivery address should include the name of a person or a

specific department. Whenever possible, have goods shipped to their final location.

The Franklin Township Board of Education recognizes three (3) types of delivery for equipment and

furniture. They are as follows:

a. PLATFORM DELIVERY

Items delivered to a platform or loading dock area and are taken off the truck by transportation carrier personnel and placed on a platform or loading dock. Board of Education personnel will

bring items into the school or office building storage area. This option is only available for items

delivered to FHS, FMS and SGS.

b. INSIDE DELIVERY

Items are to be delivered to a Board of Education location and taken off the truck by transportation

carrier personnel and brought to a designated area inside the school or office building.

c. SPOTTED DELIVERY

Items are to be delivered to a Board of Education location and taken off the truck by transportation carrier personnel and brought to a designated area inside the school or office building.

Transportation carrier personnel or specialized individuals are responsible to then uncrate, setup,

and assemble items to determine good working order and remove all debris to the satisfaction of

the Franklin Township Board of Education within five (5) working days.

Please ensure that all requisitions have the correct delivery designation entered into t h e

requisition.

Total Amount – Verify your figures for accuracy. Remember: The Board of Education is exempt

from paying New Jersey Sales Tax. The minimum order amount for all requisitions is $50.00. Plan

and combine orders to exceed the $50.00 limit. Orders that do not meet the minimum order

threshold will be rejected and returned. Special circumstances may be eligible, talk to the purchasing

manager.

Budget Account Number – Ensure the Budget Account Number is correct and that there are

available funds in the account. The requisition cannot be processed without sufficient funds. Orders

can be charged to multiple accounts.

Type of Requisitions (Procurement) – Provide State Contract, bid, co-op and/or quote data.

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Document Check – State Law Pursuant to various State Laws, board policies, and business office procedures: the following

documents are required for vendors to provide before a requisition can be signed and converted to

a purchase order. See Appendix B for the below forms:

Affirmative Action Evidence.

Business Registration Certificate (BRC).

Chapter 271 Political Contribution Disclosure Form (PCD).

Disclosure of Investment Activities in Iran Form.

W-9 Form.

Administrators recommending contracts for professional/educational services are to

secure the appropriate documents from the vendor when the vendor submits his/her

proposal. The applicable documents must be forwarded to the Purchasing Manager.

Submit the requisition for approval

It is the responsibility of the originator to follow up on submitted REQ’s.

Responsibilities of the Principals/Directors/Supervisors

In order to facilitate the closing of open purchase orders, each month at bill close, an open purchase order

report, with complete status, will be required from each principal, director and supervisor. Principals,

Directors, & Supervisors must ensure the following before the requisition is approved in Systems 3000:

1. Requisition with Proper Completion

They must check to determine that items previously noted (Responsibilities of the Originator), have been properly completed.

2. Requisition Approval

The requisition must be approved certifying that the purchase meets the district’s

educational or operational needs. Principals and the Assistant Superintendent of

Curriculum will approve at level 1 for their accounts in Systems 3000.

3. A written explanation as to the educational or operational need for each purchase is t o

be included in the Scratch Pad. It should state why the purchase is essential to the school

district. In addition, the Assistant Superintendent for Business may request a Purchase Order

Rationale Form for any purchase order (See Appendix C).

When required or requested, administrators will have to provide explanations on the

following:

How students will learn or benefit from the purchase?

What educational achievement or program may be linked to the purchase?

How is the purchase of operational value to your school/office?

Are the goods/services purchased useful for the long term rather than immediate need?

Have inventories been checked to determine whether there is a real need for the

purchase?

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Responsibilities of the Superintendent of Schools and/or Asst. Supt. for Curriculum

The Assistant Superintendent for Curriculum reviews and determines the educational or operational

value of each requisition. The Superintendent or the Assistant Superintendent for Curriculum and

Instruction approves at Level 1.

Responsibilities of the Business Office

The Business Office Staff reviews each purchase order. Special attention is given to the following:

1. What is being ordered and the cost – The Purchasing Agent reviews the technical

aspects of the purchase order to ensure compliance with State Law and Board Policy.

The Business Office will review whether the purchase order exceeds:

The Quotation Limit $6,600.00

The Bid Limit $44,000.00

The Transportation Bid Limit $18,800.00

2. Document Check – State Law

Pursuant to various State Laws, board policy, and business office procedures; the

Purchasing Agent will need to know that the originator has obtained the following

documents and that they are on file in the Business Office before the purchase order

is signed and processed:

Affirmative Action Evidence

Business Registration Certificate (BRC)

Chapter 271 – Political Contribution Disclosure Form (PCD)

Disclosure of Investment in Iran Form

W-9 Form

3. Review of Purchase Order – The purchase order is also reviewed for technical aspects such as:

a. Correct account number;

b. Correct amount;

c. No tax applied;

d. Shipping charges identified;

e. State or cooperative contract number included

Incomplete or improper requisitions will be rejected using Systems 3000 with a

notation explaining any deficiencies.

Once the review process is completed, the Purchasing Agent signs the requisition

converting it to a purchase order. The Business Office will then:

Mail the purchase order to the vendor; and

Send the Receiving Copy (Pink) of the purchase order back to the originator of the

expense. If you do not receive the Receiving Copy (Pink) within two weeks of

approving the corresponding requisition, please contact the Purchasing Manager. Once

goods or services are rendered, the Receiving Copy (Pink) must be sent to Accounts

Payable promptly for vendor payment.

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Responsibility of the Vendor

The Business Office sends the purchase order and the voucher to the vendor. The vendor is to sign and

return the voucher to the Business Office. The vendor provides the good or services as requested and

submits an invoice. If you receive a signed voucher and/or invoice, please send it to Accounts Payable

as soon as possible to ensure prompt payment to the vendor when the goods and services are completed.

The vendor must comply with all federal and state law and codes. The vendor must furnish necessary

compliance forms to the district. If compliance forms are not received then the district will not be able to do business with them.

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BUDGET ACCOUNT NUMBER CODING

When completing requisitions for materials, supplies, equipment and/or services, it is important to use

the correct budget account number as outlined by the New Jersey Chart of Accounts.

To assist administrators, principals and staff members who complete purchase orders, a chart explaining

the account codes is available on the website.

GRANTS

There is a two-step process for securing grants.

Step 1: ALL grants MUST be sent to the Assistant Superintendent for Curriculum & Instruction for

Board of Education approval before you submit the grant to any organization. Please include all the

information: description of program, budget, and timelines pertinent to the grant. Whenever possible,

please allow three to four weeks for this approval.

Step 2: If you are awarded the grant, please send the grant approval notice to the Assistant

Superintendent for Curriculum & Instruction for Board of Education approval to accept the funds. All

grant checks are to be forwarded to the Assistant Business Administrator in the Business Office with a

full copy of the grant.

All purchase orders using GRANT funds must follow the regulations for that GRANT.

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TEXTBOOKS

Purchase of Textbooks and Curriculum Department Review

New Jersey Administrative Code 6A:23A-9.3(c) (12) requires the purchase of textbooks to meet

one of the following conditions:

a. The purchase is in accordance with a textbook replacement plan;

b. Textbooks have been identified as stolen or destroyed; or

c. A change in curriculum or new edition requires a new

textbook.

In accordance with state law (N.J.S.A. 18A:34-1), all textbooks must be approved by the Board of Education prior to their use in the educational program. Purchasing textbooks that have not been approved by the Board of Education is a violation of state law.

Discarding Textbooks

N.J.S.A. 18A; 34-3, the law regarding sharing of textbooks among school districts, requires districts to

notify the Department of Education regarding any textbooks the district intends to discard. The

Department is responsible for creating a statewide textbook database, which would facilitate the transfer

of used textbooks from one district to another.

The Department of Education has created a web-based process, which includes a database for districts

to post information regarding used textbooks. The link for accessing this database can be found at:

http://education.state.nj.us/textbook/. There are two options available to districts using this website: to post

information regarding textbooks that are available or to look for textbooks that have been posted.

Please note that, in order to access the website, school districts must enter their district (1610) and school

code from the following list:

Franklin High School 50

Conerly Road 55

Elizabeth Avenue 70

Franklin Park 80

Hillcrest 100 MacAfee 115

Pine Grove Manor 140

Sampson G. Smith 150 Franklin Middle School 160

Claremont 300

Once the data is entered onto the on-line form, the textbook listing(s) will be posted in the textbook

database for 120 days. Districts that wish to check the database to see what textbooks are available will

be able to view this on-line information for 120 days. Districts that want to acquire used textbooks

listed in the database are responsible for contacting the donating district and making all necessary

arrangements for acquisition. Following the 120-day posting period, textbooks listings will automatically

be removed from the database.

Please follow the guidelines that have been established for textbook

sharing:

For textbooks published prior to 2005: These textbooks cannot be entered into the

Department’s textbook sharing database. Only textbooks published from 2005-2020 can be

entered into the database. Districts should take appropriate measures to share or recycle, if

applicable, or dispose of, if necessary, textbooks published prior to 2005.

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For textbooks published from 2005 - 2020: If a district plans to recycle used textbooks by

distributing them to students, parents, educational agencies or institutions or others, those books

should not be posted on the website. If the district opts to sell used textbooks – do not post

them on the website. Post only those books that the district does not intend to use or

does not plan to donate or sell to other individuals or groups.

The textbook sharing law does not apply to textbooks that are “worn out or useless due to

damage or mutilation.” Such textbooks can be disposed of (with proper board approval) without

posting, regardless of publication date.

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APPENDIX

A. Transfer Request Form

B. Compliance Forms

C. Purchase Order Rationale Form

D. P-6 Form

E. Formal Bid Process

F. Emergency Purchases/Contracts

G. District Payment Schedule

H. Business Office Contacts

I. Voucher Form

J. Tax Exempt Letter

K. V e n d o r F o r m

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APPENDIX A

TRANSFER REQUEST FORM

School/Department:

Account Number:

Account Number:

Account Number:

Account Number:

Account Number:

Account Number:

Account Number:

Account Number:

Purpose:

FRANKLIN TOWNSHIP BOARD OF EDUCATION

ACCOUNT TRANSFER

FROM ACCOUNT

Account Name: Amount:

Account Name: Amount:

Account Name: Amount:

Account Name: Amount:

TO ACCOUNT

Account Name: Amount:

Account Name: Amount:

Account Name: Amount:

Account Name: Amount:

ACCOUNT CHART

Adjustment Group Description Account #s 1 Regular Pro rams 11-1XX-100-XXX 2 Special Education, Basic Skills/Remedial

and Bilingual Instruction, and Other Student

Related and Extraordinary Support Services

11-2XX-100-XXX

11-000-216,217

3 School-Span. Co/Extra-Curr. Activities,

School Sponsored Athletics, and Other

Instructional Programs

11-4XX-100-XXX

4 Tuition 11-000-100-XXX 5 Attendance and Social Work, Health,

Guidance, Child Study Teams, Education

Media Services/School Library

11-000-

211,213,218,219,2

22 6 Improvement of Instruction Services and

Instructional Staff Training Services 11-000-221,223

7 General Administration 11-000-230-XXX 8 School Administration 11-000-240-XXX 9 Central Svcs & Admin Info Technology 11-000-25X-XXX 10 Operation and Maintenance of Plant Service 11-000-26X-XXX 11 Student Transportation Services 11-000-270-XXX 12 Personal Services- Employee Benefits 11-XXX-XXX-2XX 13 Equipment 12-XXX-XXX-73X

REQUIRED APPROVALS:

PRINCIPAL:

ASST. SUPERINTENDENT/DIRECTOR/SUPERVISOR:

ASSISTANT SUPERINTENDENT FOR BUSINESS:

SUPERINTENDENT OF SCHOOLS:

NOTE: This form contains a table of accounts which indicates which transfers are or are not subject to a 10% cap

district-wide. Any transfers to/from accounts in different groups (column 1) are subject to the 10% cap and should

be avoided whenever possible. Adjustments from instructional accounts into non-instructional accounts should also

be avoided.

Intentionally Left Blank

APPENDIX B

Compliance Forms

New Jersey Business Registration Certificate (BRC) Per New Jersey P.L. 2004, C. 57, all business organizations that do business with all Boards

of Education in New Jersey are required to be registered with the State of New Jersey and

provide proof of that registration before Boards of Education may enter into a contract with

that business (Note: A purchase order is a form of contract). “Business Organization” means

an individual, partnership, association, joint stock company, trust, corporation or other legal

business entity or successor thereof. Non-profit organizations and government agencies

are exempt from this law and therefore do not need to submit a BRC.

To comply with P.L/ 2004, C. 57, a “Business Organization” must provide us with a copy of

their New Jersey Business Registration Certificate (BRC) for our files before a new purchase

order can be submitted. A copy of a blank certificate is attached for your reference.

Many vendors already have a BRC on file in the Central Office. To verify if a vendor

already has a BRC on file, check in Systems 3000. There is at least one person in the main

office of each school and each director’s office that have access to Systems 3000.

SYSTEMS 3000 will not allow an order to be placed with a

vendor with no BRC.

If a BRC is not on file, one needs to be obtained from the business prior to initiating a

purchase order. A copy of the BRC or proof of registration must be received before any

purchase order or other contracting document can be issued. The copy of the BRC is to be

forwarded with the purchase order if one is not already on file. If a business does not have a

New Jersey Business Registration Certificate or cannot locate their certificate, they can call

609-292-1730 for assistance or they may register or they can access the following website for

further directions: http://www.nj.gov/treasury/revenue/busregcert.shtml

No purchase orders should be issued (other than emergencies) without having a BRC from the

vendor on file prior to issuing the order. In emergency situations (as defined by contracting

law) the contracting agency may enter into a contract with a business, but cannot make a

payment until a copy of the BRC is provided to the contracting agency. The business should be

made aware of this BRC requirement when the contract is awarded.

Sample BRC:

Chapter 271

Political Contribution Disclosure Form

(Contracts that Exceed $17,500.00)

Ref. N.J.S.A. 19:44A-20.26

The undersigned, being authorized and knowledgeable of the circumstances, does hereby certify

that ______________________________________________________(Business Entity) has made

the following reportable political contributions to any elected official, political candidate or any

political committee as defined in N.J.S.A. 19:44-20.26 during the twelve (12) months preceding this

award of contract:

Reportable Contributions

Date of

Contribution

Amount of

Contribution

Name of Recipient

Elected Official/

Committee/Candidate

Name of

Contributor

The Business Entity may attach additional pages if needed.

______________________________________________________________________________________

No Reportable Contributions (Please check () if applicable.)

I certify that _______________________________________(Business Entity) made no reportable contributions

to any elected official, political candidate or any political committee as defined in N.J.S.A. 19:44-20.26.

Certification

I certify, that the information provided above is in full compliance with Public Law 2005—Chapter 271.

Name of Authorized Agent ___________________________________________________________

Signature _________________________________ Title ___________________________________

Business Entity_____________________________________________________________________

C. 271 POLITICAL CONTRIBUTION DISCLOSURE FORM

Contractor Instructions

Business entities (contractors) receiving contracts from a public agency that are NOT awarded pursuant

to a “fair and open” process (defined at N.J.S.A. 19:44A-20.7) are subject to the provisions of P.L. 2005,

c. 271, s.2 (N.J.S.A. 19:44A-20.26). This law provides that 10 days prior to the award of such a contract,

the contractor shall disclose contributions to:

any State, county, or municipal committee of a political party

any legislative leadership committee*

any continuing political committee (a.k.a., political action committee)

any candidate committee of a candidate for, or holder of, an elective office: o of the public entity awarding the contract o of that county in which that public entity is located o of another public entity within that county o or of a legislative district in which that public entity is located or,

when the public entity is a county, of any legislative district which includes all or part of the county

The disclosure must list reportable contributions to any of the committees that exceed $300 per election

cycle that were made during the 12 months prior to award of the contract. See N.J.S.A. 19:44A-8 and

19:44A-16 for more details on reportable contributions.

N.J.S.A. 19:44A-20.26 itemizes the parties from whom contributions must be disclosed when a business

entity is not a natural person. This includes the following:

individuals with an “interest” ownership or control of more than 10% of the profits or assets of a business entity or 10% of the stock in the case of a business entity that is a corporation for profit

all principals, partners, officers, or directors of the business entity or their spouses

any subsidiaries directly or indirectly controlled by the business entity

IRS Code Section 527 New Jersey based organizations, directly or indirectly controlled by the business entity and filing as continuing political committees, (PACs).

When the business entity is a natural person, “a contribution by that person’s spouse or child, residing

therewith, shall be deemed to be a contribution by the business entity.” [N.J.S.A. 19:44A-20.26(b)] The

contributor must be listed on the disclosure.

Any business entity that fails to comply with the disclosure provisions shall be subject to a fine imposed

by ELEC in an amount to be determined by the Commission which may be based upon the amount that

the business entity failed to report.

The enclosed list of agencies is provided to assist the contractor in identifying those public agencies

whose elected official and/or candidate campaign committees are affected by the disclosure requirement.

It is the contractor’s responsibility to identify the specific committees to which contributions may have

been made and need to be disclosed. The disclosed information may exceed the minimum requirement.

The enclosed form, a content-consistent facsimile, or an electronic data file containing the required

details (along with a signed cover sheet) may be used as the contractor’s submission and is disclosable

to the public under the Open Public Records Act.

The contractor must also complete the attached Stockholder Disclosure Certification. This will assist the

agency in meeting its obligations under the law. NOTE: This section does not apply to Board of

Education contracts.

1 N.J.S.A. 19:44A-3(s): “The term "legislative leadership committee" means a committee established, authorized to be established,

or designated by the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly or the

Minority Leader of the General Assembly pursuant to section 16 of P.L.1993, c.65 (C.19:44A-10.1) for the purpose of receiving

contributions and making expenditures.”

P.L. 2005, c.271

(Unofficial version, Assembly Committee Substitute to A-3013, First Reprint*)

AN ACT authorizing units of local government to impose limits on political contributions by contractors and supplementing

Title 40A of the New Jersey Statutes and Title 19 of the Revised Statutes.

BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:

40A:11-51 1. a. A county, municipality, independent authority, board of education, or fire district is hereby

authorized to establish by ordinance, resolution or regulation, as may be appropriate, measures limiting the awarding of

public contracts therefrom to business entities that have made a contribution pursuant to P.L.1973, c.83 (C.19:44A-l et

seq.) and limiting the contributions that the holders of a contract can make during the term of a contract, notwithstanding

the provisions and parameters of sections 1 through 12 of P.L.2004, c.19 (C. 19:44A-20.2 et al.) and section 22 of

P.L.1973, c.83 (C.19:44A-22).

b. The provisions of P.L.2004, c.19 shall not be construed to supersede or preempt any ordinance, resolution or

regulation of a unit of local government that limits political contributions by business entities performing or seeking to

perform government contracts. Any ordinance, resolution or regulation in effect on the effective date of P.L.2004, c.19

shall remain in effect and those adopted after that effective date shall be valid and enforceable.

c. An ordinance, resolution or regulation adopted or promulgated as provided in this section shall be filed with the

Secretary of State.

19:44A-20.26 2. a. Not later than 10 days prior to entering into any contract having an anticipated value in

excess of $17,500, except for a contract that is required by law to be publicly advertised for bids, a State agency, county,

municipality, independent authority, board of education, or fire district shall require any business entity bidding thereon or

negotiating therefor, to submit along with its bid or price quote, a list of political contributions as set forth in this subsection

that are reportable by the recipient pursuant to the provisions of P.L.1973, c.83 (C.19:44A-l et seq.) and that were made

by the business entity during the preceding 12 month period, along with the date and amount of each contribution and the

name of the recipient of each contribution. A business entity contracting with a State agency shall disclose contributions

to any State, county, or municipal committee of a political party, legislative leadership committee, candidate committee of

a candidate for, or holder of, a State elective office, or any continuing political committee. A business entity contracting

with a county, municipality, independent authority, other than an independent authority that is a State agency, board of

education, or fire district shall disclose contributions to: any State, county, or municipal committee of a political party; any

legislative leadership committee; or any candidate committee of a candidate for, or holder of, an elective office of that

public entity, of that county in which that public entity is located, of another public entity within that county, or of a

legislative district in which that public entity is located or, when the public entity is a county, of any legislative district which

includes all or part of the county, or any continuing political committee.

The provisions of this section shall not apply to a contract when a public emergency requires the immediate delivery of

goods or services.

b. When a business entity is a natural person, a contribution by that person's spouse or child, residing therewith, shall be

deemed to be a contribution by the business entity. When a business entity is other than a natural person, a contribution

by any person or other business entity having an interest therein shall be deemed to be a contribution by the business

entity. When a business entity is other than a natural person, a contribution by: all principals, partners, officers, or

directors of the business entity or their spouses; any subsidiaries directly or indirectly controlled by the business entity; or

any political organization organized under section 527 of the Internal Revenue Code that is directly or indirectly controlled

by the business entity, other than a candidate committee, election fund, or political party committee, shall be deemed to

be a contribution by the business entity.

c. As used in this section:

"business entity" means a natural or legal person, business corporation, professional services corporation, limited liability

company, partnership, limited partnership, business trust, association or any other legal commercial entity organized

under the laws of this State or of any other state or foreign jurisdiction;

"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of the

stock in the case of a business entity that is a corporation for profit, as appropriate; and

"State agency" means any of the principal departments in the Executive Branch of the State Government, and any

division, board, bureau, office, commission or other instrumentality within or created by such department, the Legislature

of the State and any office, board, bureau or commission within or created by the Legislative Branch, and any

independent State authority, commission, instrumentality or agency.

d. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by the New

Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be based

upon the amount that the business entity failed to report.

19:44A-20.13 3. a. Any business entity making a contribution of money or any other thing of value, including an

in-kind contribution, or pledge to make a contribution of any kind to a candidate for or the holder of any public office

having ultimate responsibility for the awarding of public contracts, or to a political party committee, legislative leadership

committee, political committee or continuing political committee, which has received in any calendar year $50,000 or more

in the aggregate through agreements or contracts with a public entity, shall file an annual disclosure statement with the

New Jersey Election Law Enforcement Commission, established pursuant to section 5 of P.L.1973, c.83 (C.19:44A-5),

setting forth all such contributions made by the business entity during the 12 months prior to the reporting deadline.

b. The commission shall prescribe forms and procedures for the reporting required in subsection a. of this section

which shall include, but not be limited to:

(1) the name and mailing address of the business entity making the contribution, and the amount contributed

during the 12 months prior to the reporting deadline;

(2) the name of the candidate for or the holder of any public office having ultimate responsibility for the awarding

of public contracts, candidate committee, joint candidates committee, political party committee, legislative leadership

committee, political committee or continuing political committee receiving the contribution; and

(3) the amount of money the business entity received from the public entity through contract or agreement, the

dates, and information identifying each contract or agreement and describing the goods, services or equipment provided

or property sold.

c. The commission shall maintain a list of such reports for public inspection both at its office and through its

Internet site.

d. When a business entity is a natural person, a contribution by that person's spouse or child, residing therewith,

shall be deemed to be a contribution by the business entity. When a business entity is other than a natural person, a

contribution by any person or other business entity having an interest therein shall be deemed to be a contribution by the

business entity. When a business entity is other than a natural person, a contribution by: all principals, partners,

officers, or directors of the business entity, or their spouses; any subsidiaries directly or indirectly controlled by

the business entity; or any political organization organized under section 527 of the Internal Revenue Code that is directly

or indirectly controlled by the business entity, other than a candidate committee, election fund, or political party

committee, shall be deemed to be a contribution by the business entity.

As used in this section:

"business entity" means a natural or legal person, business corporation, professional services corporation, limited

liability company, partnership, limited partnership, business trust, association or any other legal commercial entity

organized under the laws of this State or of any other state or foreign jurisdiction; and

"interest" means the ownership or control of more than 10% of the profits or assets of a business entity or 10% of

the stock in the case of a business entity that is a corporation for profit, as appropriate.

e. Any business entity that fails to comply with the provisions of this section shall be subject to a fine imposed by

the New Jersey Election Law Enforcement Commission in an amount to be determined by the commission which may be

based upon the amount that the business entity failed to report.

4. This act shall take effect immediately.

* Note: Bold italicized statutory references of new sections are anticipated and not final as of the time this document was

prepared. Statutory compilations of N.J.S.A. 18A:18A-51 is anticipated to show a reference to N.J.S.A. 40A:11-51 and to

N.J.S.A. 19:44A-20.26

---

AFFIRMATIVE ACTION QUESTIONNAIRE

This form is to be completed and returned with the bid. However, the Board will accept in lieu of this Questionnaire,

Affirmative Action Evidence Employee Information Report stapled to this page.

1. Our company has a federal Affirmative Action Plan approval. Yes No

If yes, please attach a copy of the plan to this questionnaire.

2. Our company has a N.J. State Certificate of Employee Information Report Yes No

If yes, please attach a copy of the certificate to this questionnaire.

3. If you answered “NO” to both questions No. 1 and 2, you must apply for an Affirmative Action

Employee Information Report – Form AA302.

Please visit the New Jersey Department of Treasury website for the Division of Public Contracts Equal

Employment Opportunity Compliance:

www.state.nj.us/treasury/contract compliance/

a. Click on “Employee Information Report” b. Complete and submit the form with the appropriate payment to:

Department of Treasury

Division of Purchase and Property

Contract Compliance and Audit Unit

EEO Monitoring P.O. Box 206

Trenton, NJ 08625-0206

All fees for this application are to be paid directly to the State of New Jersey. A copy shall be submitted to

the Board of Education within seven (7) days of the notice of the intent to award the contract or the signing

of the contract.

I certify that the above information is correct to the best of my knowledge.

Name: __________________________________________________________________

Signature _______________________________________________________________

Title ___________________________________________ Date _____________________

Name of Company__________________________________________________________

Address __________________________________________________________________

City, State, Zip _____________________________________________________________

STATE OF NEW JERSEY

DEPARTMENT OF THE TREASURY

DIVISION OF PURCHASE AND PROPERTY

33 WEST STATE STREET, P.O. BOX 230

TRENTON, NEW JERSEY 08625-0230

DISCLOSURE OF INVESTMENT ACTIVITIES IN IRAN FORM

PART 1

CERTIFICATION

VENDOR/BIDDER MUST COMPLETE PART 1 BY CHECKING ONE OF THE BOXES

FAILURE TO CHECK ONE OF THE BOXES WILL RENDER THE PROPOSAL NON-RESPONSIVE

Pursuant to Public Law 2012, c. 25, any person or entity that submits a bid or proposal or otherwise proposes to enter into or renew a contract must

complete the certification below to attest, under penalty of perjury, that neither the person nor entity, nor any of its parents, subsidiaries, or

affiliates, is identified on the Department of the Treasury’s Chapter 25 list as a person or entity engaged in investment activities in Iran. The

Chapter 25 list is found on the Division’s website at http://www.state.nj.us/treasury/purchase/pdf/Chapter25List.pdf. Vendors/Bidders must review

this list prior to completing the below certification. Failure to complete the certification will render a Vendor's/Bidder’s proposal non-

responsive. If the Director of the Division of Purchase and Property finds a person or entity to be in violation of the law, s/he shall take action as

may be appropriate and provided by law, rule or contract, including but not limited to, imposing sanctions, seeking compliance, recovering

damages, declaring the party in default and seeking debarment or suspension of the party.

CHECK THE APPROPRIATE BOX

A. I certify, pursuant to Public Law 2012, c. 25, that neither the Vendor/Bidder listed above nor any of its parents, subsidiaries, or

affiliates is listed on the N.J. Department of the Treasury’s list of entities determined to be engaged in prohibited activities in Iran

pursuant to P.L. 2012, c. 25 (“Chapter 25 List”). Disregard Part 2 and complete and sign the Certification below.

OR

B. I am unable to certify as above because the Vendor/Bidder and/or one or more of its parents, subsidiaries, or affiliates is listed on the

Department’s Chapter 25 list. I will provide a detailed, accurate and precise description of the activities in Part 2 below and sign and

complete the Certification below. Failure to provide such information will result in the proposal being rendered as nonresponsive and

appropriate penalties, fines and/or sanctions will be assessed as provided by law.

PART 2

PLEASE PROVIDE ADDITIONAL INFORMATION RELATED TO INVESTMENT ACTIVITIES IN IRAN

If you checked Box “B” above, provide a detailed, accurate and precise description of the activities of the Vendor/Bidder, or one of its parents,

subsidiaries or affiliates, engaged in the investment activities in Iran by completing the boxes below. THE

APPROPRIATE

BOX A. I certify,

pursuant to

Public Law 2012,

c. 25, that neither

the

Vendor/Bidder

listed above nor

any of its parents,

subsidiaries, or

affiliates is listed

on the N.J.

Department of

the Treasury’s list

of entities

determined to be

engaged in

prohibited

activities in Iran

pursuant to P.L.

2012, c. 25

(“Chapter 25

List”). Disregard

Part 2 and

complete and

sign

Pursuant to Public Law 2012, c. 25, any person or entity that submits a bid or proposal or otherwise proposes to enter into or renew a

contract must complete the certification below to attest, under penalty of perjury, that neither the person nor entity, nor any of its

parents, subsidiaries, or affiliates, is identified on the Department of the Treasury’s Chapter 25 list as a person or entity engaged in

investment activities in Iran. The Chapter 25 list is found on the Division’s website at

http://www.state.nj.us/treasury/purchase/pdf/Chapter25List.pdf. Vendors/Bidders must review this list prior to completing the below

certification. Failure to complete the certification will render a Vendor's/Bidder’s proposal non-responsive. If the Director of the

Division of Purchase and Property finds a person or entity to be in violation of the law, s/he shall take action as may be appropriate

and provided by law, rule or contract, including but not limited to, imposing sanctions, seeking compliance, recovering damages,

declaring the party in default and seeking debarment or suspension of the party. CHECK THE APPROPRIATE BOX A. I certify,

pursuant to Public Law 2012, c. 25, that neither the Vendor/Bidder listed above nor any of its parents, subsidiaries, or affiliates is

listed on the N.J. Department of the Treasury’s list of entities determined to be engaged in prohibited activities in Iran pursuant to P.L.

2012, c. 25 (“Chapter 25 List”). Disregard Part 2 and complete and sign the Certification below.

ENTITY NAME: ________________________________________________________________________

RELATIONSHIP TO VENDOR/BIDDER: ________________________________________________________________________

DESCRIPTION OF ACTIVITIES: ________________________________________________________________________

DURATION OF ENGAGEMENT: ________________________________________________________________________

ANTICIPATED CESSATION DATE: ________________________________________________________________________

VENDOR/BIDDER CONTACT NAME: ________________________________________________________________________

VENDOR/BIDDER CONTACT PHONE NO.: ________________________________________________________________________

Attach Additional Sheet if Necessary

CERTIFICATION

I, the undersigned, certify that I am authorized to execute this certification on behalf of the Vendor/Bidder, that the foregoing information and

my attachments hereto, to the best of my knowledge are true and complete. I acknowledge that the State of New Jersey is relying on the

information contained herein, and that the Vendor/Bidder is under a continuing obligation from the date of this certification through the

completion of any contract(s) with the State to notify the State in writing of any changes to the information contained herein; that I am aware

that it is a criminal offense to make a false statement or misrepresentation in this certification. If I do so, I will be subject to criminal prosecution

under the law, and it will constitute a material breach of any agreement(s) with the State, permitting the State to declare any contract(s) resulting

from this certification void and unenforceable.

_________________________________________ _____________________________________

Signature Date

_____________________________________________

Print Name and Title

DPP Rev. 6.19.17

APPENDIX C

Purchase Order Rationale Form

Requestor Information

Name: __________________________________________ Date_________________

Department/School: _______________________________

Email: ___________________________________________

Phone #:_________________________________________ Ext #___________

Please choose from one of the options below, attach the quote(s), and send to

rellis@franklinboe.org for review. No requisition is to be entered into Systems 3000 until

approval is received.

Educational Rationale

As a result of this purchase, please explain what students will learn or benefit. Note any

educational achievement or program that may be linked to this purchase.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Operational Rationale

Provide a brief explanation how this purchase is of operational value to your school/office. Note

any particular benefits to the district. Explain whether any goods/services are being utilized on a

regular basis and whether they are useful on a long term basis.

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

Name of School/Office Administrator/Supervisor________________________________________

Signature of School/Office Administrator/Supervisor_____________________________________

----------------------------------------------------------------------------------------------------------------------------------

________Approved ________Not Approved

Jonathan Toth/Ryan Ellis

Business Office

X_____________________________ Date________________

APPENDIX D

Purchase Order Change Request

(P-6 Form)

Requestor Information

Name: _____________________________________ Date: _______________________

Department/School: _______________________________

Order Information

Vendor Name _______________________________

PO # _________________ Vendor #____________________

Original PO Amount $_________________ Total of PO with Change $____________________

Please select the action that you are requesting:

_____Cancel the PO

_____Change the account #___________________________________________________

_____Decrease the PO by $______________________________ (Max amount 10% of original

amount) Please note accounts affected.

Reason:___________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

_____Increase the PO by $______________________________ (Max amount 10% of original

amount) Please note accounts affected.

Reason:___________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

Vendor Communication Notes: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

Principal/Director/Supervisor

Signature____________________________________________________

Assistant Superintendent for Business

Signature____________________________________________________

APPENDIX E

FORMAL BID PROCESS

Process Time Line

Initial request to bid made by Administrator/Director/Supervisor/Principal and

Certification that funds exist. One Day

Review of specifications, fully outlining items, materials or services to be bid. One Week

If necessary, return of reviewed/updated specifications to

Administrator/Director/Supervisor/Principal for final approval.

Administrator/Director/Supervisor/Principal signs off final approval.

One Week

Bid package prepared. One Week

Copies of bids run off. One Day

Legal advertisement sent to newspaper. Three Day Advance

Notice Bid Date/Time – must be at least 10 days after Legal Ad appears in

Newspaper. Bids are opened and read publicly. Competitive contracts must

be advertised for at least 20 days.

10-20 Days

Bid results are reviewed. One-Two Weeks

Spreadsheet showing lowest bidders are prepared with recommendation of

award of bid. Resolution is prepared. One-Two Weeks

Bids are reviewed and approved at the next Regular Board Action Meeting. One Week

Purchase orders are prepared. One Week

The formal bidding process takes about 6-8 weeks from start to finish.

Please note: Bids for Public Works/Construction Projects take longer as a request for wage determination

must be formally made to the State of New Jersey.

APPENDIX F

EMERGENCY CONTRACTS (18A:18A-7)

A. Background

An actual emergency must exist. An “emergency” is not to be created as a result of inadequate planning,

delay, failure to take into account construction season or administrative convenience.

B. Definition of Emergency

An emergency is a situation affecting the health or safety of occupants of school property that requires the

immediate delivery of the articles or performance of a service to alleviate the emergency.

C. Process in Declaring an Emergency

1. Superintendent of Schools Notified The Administrator, Director/Supervisor or Principal requesting a declaration of emergency notifies the Superintendent of Schools.

2. Purchasing Agent Notified

The official in charge of the building or facility, wherein the emergency occurred, shall notify the Purchasing Agent of the following:

a. Nature of the emergency;

b. Time of the occurrence; and c. The need for the performance of a contract.

Such notification shall be prepared in writing and filed with the Purchasing Agent as soon as

possible.

3. Awarding of Contract by Purchasing Agent

If the Purchasing Agent is satisfied the emergency exists, the Purchasing Agent by State Law is

authorized to award the contract.

4. Filing of Documents with State and County by Board Secretary

In accordance with N.J.A.C. 5:34-6.1, the following documents must be filed with the Bureau of

Facility Planning and the County Superintendent within three (3) days after awarding the contract

or agreement:

a. A copy of the contract or agreement; and

b. A copy of the written requisition.

D. Approval by Board of Education

The Board of Education, at its next regular Board of Education Public Meeting, shall review and approve

said emergency purchase.

APPENDIX G

District Payment Schedule

The 2021 monthly submission dates for payment requests to the Business Office are provided in the table below (left column). Checks are run once a month, require prior board approval, and are distributed the day after the board meetings listed below (right column). These payments include all vendor checks, mileage reimbursements and all other employee reimbursements other than additional time worked paid via time sheets.

Last day to receive voucher/invoice/receiving copy(Pink) for payments at the Business Office by:

Will be Approved at the Board Meeting on:

Thursday, January 21, 2021 Thursday, January 28, 2021

Thursday, February 18, 2021 Thursday, February 25, 2021

Wednesday, March 10, 2021 Wednesday, March 17, 2021

Tuesday, April 20, 2021 Tuesday, April 27, 2021

Thursday, May 20, 2021 Thursday, May 27, 2021

Thursday, June 10, 2021 Thursday, June 17, 2021

Thursday, July 15, 2021 Thursday, July 22, 2021

Thursday, August 19, 2021 Thursday, August, 26, 2021

Thursday, September 16, 2021

Thursday, October 14, 2021

Thursday, November 11, 2021

Thursday, December 9, 2021

Thursday, September 23, 2021

Thursday, October 21, 2021

Thursday, November 18, 2021

Thursday, December 16, 2021

Please plan to submit all completed paperwork according to the schedule above to ensure prompt payment. For vendor checks, every effort needs to be made to have pinks reviewed, signed and submitted in time for the next payment date after receipt of the product / service. If you work with contractors / consultants, it is advisable that you give them a due date 3 days prior to the date due in the Business Office (left column) to allow yourselves time to verify and complete the required paperwork to ensure timely vendor payments.

Please pay close attention to these DEADLINES, as hand checks WILL NOT be issued.

If you have any questions, please contact your immediate supervisor.

APPENDIX H

BUSINESS OFFICE CONTACTS

School/Area

Business Office Contact

Employee Entitlements ALL

Franklin Middle School Beth

Franklin Park School Beth

MacAfee Road School Beth

Athletic Director (including PE/Health) Beth

Buildings & Grounds (including Utilities) Beth

Business Office Beth

Dir. Of Fine, Visual & Performing Arts Beth

Language Arts Beth

Library Beth

Technology Beth

Pre-K Beth

Claremont School Carol

Conerly Road School Carol

Franklin High School Carol

Pine Grove School Carol

Assessment & Accountability Carol

Mathematics Carol

Personnel Carol

School Mgmt. and Student Advocacy Carol

Science Carol

Social Studies & Work Readiness Carol

World Language Carol

NCLB Carol

ESL/Bilingual Carol

Communications Carol

Superintendent Carol

Assistant Superintendent for Curriculum Carol

Pupil Personnel Services Lucy

Transportation Lucy

IDEA Lucy

Elizabeth Avenue School Lucy

Hillcrest School Lucy

Sampson G. Smith Lucy

Transportation in Lieu of Cindy

APPENDIX I Standard Voucher

NOTE: THIS STANDARD VOUCHER MUST BE USED BY EVERYONE WITH THE EXCEPTION OF TRAVEL. NO LOCAL VERSIONS WILL BE ACCEPTED.

FRANKLIN TOWNSHIP BOARD OF EDUCATION

2301 Route 27

Somerset, NJ 08873

Phone 732-873-2400

Payment Voucher Purchase Order No.

Vendor/Employee No.

Payable To:

Date:

Check One:

Mail check to address noted

Hand deliver to

This voucher, fully completed with all necessary approval signatures, must be received in the Business Office by the dates

outlined in the Annual Payment Schedule in order to be paid at the next regular meeting of the Board of Education_

Quantity Unit Price Description Amount

PLEASE SIGN AND RETURN -PAYMENT PENDING

Budget Account Code Amount

$

For Business Office Use Only

Check No_ Amount$

Approved and ordered paid on

Board Secretary

APPENDIX J

NEW JERSEY DIVISION OF TAXATION

REGULATORY SERVICES BRANCH

TECHNICAL BULLETIN

TB-49 ISSUED: 10-7-02 TAX: SALES AND USE TAX TOPIC: PURCHASES AND SALES BY SCHOOLS AND

AFFILIATED ORGANIZATIONS

New Jersey Public Schools

New Jersey local school districts are political subdivisions of the State of New Jersey. Their purchases, except purchases of energy, are exempt from New Jersey sales and use taxes, pursuant to Section 9(a) (1) of the New Jersey Sales and Use Tax Act. An exempt organization certificate or number is not required for the local school district, public school or board of education to make tax exempt purchases. ST-5 Exempt Organization Certificates are never issued to New Jersey government entities, including public schools. Their official letterhead or official purchase order, signed by a school official, is sufficient proof to the vendor that they are exempt from paying sales taxes. Payment must be made by a school check, including a student activity fund check, or a school voucher. However, for incidental purchases made with a cash advance of $150 or less from the school, at ST-4 Exempt Use Certificate must be used for proof of exemption. New Jersey public school and school districts are not required to collect sales tax on sales made during occasional fundraising events or activities that are relatively short in duration, if all of the proceeds will benefit only the school or school district. PTA/PTO’s and Private Nonprofit Schools Parent-teacher associations or organizations and private nonprofit schools qualify for exemption from sales and use tax in New Jersey. Upon application to the Division of Taxation, they are granted an ST-5 Exempt Organization Certificate and may make tax exempt purchases (except purchases of energy) by issuing to their vendor a copy of their ST-5 and making a payment from the funds of the organization. Organizations having a valid ST-5 Certificate are not required to collect sales tax on sales made during occasional fundraising events. If the events are relatively short in duration and all proceeds benefit only the organization or the school. When conducting occasional fundraising sales, students and parents may sell the items without collecting tax if payment is by cash or check payable to the PTA/PTO or school. If the end-purchaser makes checks payable directly to the for-profit fundraiser vendor, sales tax must be collected on taxable merchandise. In this case, the fundraiser vendor must be registered with the Division of Taxation and must remit tax on the gross amount of all such sales, even if a portion of the proceeds will benefit the school.

Non-Exempt School Groups

Groups such as booster clubs, teacher organizations and parent organizations may not use a school’s tax exempt documentation to make tax exempt purchases. If a group has not qualified for and received an ST-5 certificate in its own name, it must pay sales tax on taxable purchases. When a non-exempt school group makes occasional fundraising sales and the end-purchaser makes payment to the group, the group must pay sales tax on taxable merchandise to the fundraiser vendor. In this case, the vendor must be registered with the Division of Revenue and remit sale tax on the receipts from the sales to the school group, and in this way, the group is not required to collect sales tax on its sales to the end-purchaser. However, if the end-purchaser makes checks payable direct to the fundraiser vendor, the vendor must charge and remit sales tax on the gross amount of all such sales, based on the prices charged to the end-purchaser.

School Stores, Cafeterias and Events

If a public or private school or a PTA/PTO or other school affiliated group operates a school store on a regular, ongoing basis (such as more frequently than monthly), sales tax must be collected on taxable sales. To collect sales tax, the school or organization must be registered with the Division of Revenue and be on a reporting basis for sales tax, for the school or organization to receive sales tax returns and properly remit the tax. The school or organization would issue ST-3 Resale Certificates to suppliers to avoid paying sales tax on store inventory purchases.

School cafeterias, at both public and private schools, are not required to charge sales tax on meals sold to students. Similarly, sales of food and school-related merchandise by a nonprofit school or a school affiliated organization at a stand or booth are not subject to sales tax, if it is operated only during school sporting events or other occasional school events and all the proceeds benefit the school or school district.

Note: A Technical Bulletin is an informational document designed to provide guidance on a topic of interest to taxpayers and describe changes to the law, regulations, or Division policies. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Technical Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.

TB-49: Purchases Sales by Schools and Affiliated Organizations

APPENDIX K

Vendor Form

Please use this form to add or make changes for a vendor.

Requestor Information

Name:

Email:

Department:

Date:

Vendor Information

Vendor Name:

Vendor #

New or Update (Circle One)

Type: Business/ Non-profit/employee (Circle One)

Contact Person:

Email:

Phone:

Required Compliance Forms- Located in Staff Docs

New Jersey Business Registration Certificate (BRC)

Chapter 271 Political Contributions Disclosure Form

Affirmative Action Certificate

Iran Disclosure Form

W-9 Form

Purchase Order Address

Address:

City:

State:

Zip code:

Payment/Remit to Address ( ) Same as above

Address:

City:

State:

Zip code: