Contracts and You

1. Contracts and You

2. What is a Contract? When do I need a Contract? What Needs to be in a Contract? Life of a Contract: Conception to Payment Contract Packet for Submission Board Policy and Administrative Regulations How to Void or Cancel a Contract Mystery Contracts Reminders Frequently Asked Questions Contracts And You

3. Contracts What is a Contract?

4. Agreement Quote for Service Work Order Confirmation Order Purchase Agreement Service Request MOU – Memorandum of Understanding Any document that requires a signature to begin Work/ Service/ Delivery A Rose by Any Other Name… Contract go by many names Remember If it looks Like a Duck, Walks Like a Duck, it is a Duck

5. What is a contract? • Questions

6. When do I need a Contract?

7. Services – Non Tangibles • Examples of services • Bus Rentals • Repairs • Speakers • Outside Printing • Advertising • Catering • Consultants • Performers • Meeting Room Rental • Rentals • Maintenance Agreement • Most 5000 Object Code Expenditures

8. 5000 Object Code • Most service funded through the 5000 object code require a contract • Review Chart of Accounts found on the district web site • www.sbccd.org • Click on Purchasing • Click on Chart of Accounts

9. Chart of Accounts www.sbccd.org

10. When do I need a Contract? • Questions

11. What informational pieces need to be in a contract?

12. Contract Elements • The Names of the contracting parties • San Bernardino Community College District for SBVC or CHC Campus • Contractor Name • Date the Service is to be preformed • Cost of Service • A detailed description of services to be performed • Signature of Contractor and District • Sometimes it is just the District Signature that is required

13. Contract Elements Cont. • Insurance • District requiring a Certificate of insurance • Contractor Requiring a Certificate of Insurance from the District Note this will be cover in detail the Contract Submission Section

14. What informational pieces need to be in a contract? • Questions

15. Life Cycle of a Contract Conception to Payment

16. Cont: Department • Generate contract with contractor/vendor • If new contractor/Vendor a Vendor Application must be completed by Contractor/Vendor • Process purchase requisition for the full amount of the contract value • Review contract check list for completion • Complete contract coversheet then print from web page and attach to contract packet • Submit contract coversheet notification on web page • Send complete contract packet to Business Services for processing

17. Cont: Business Services • Contract packet reviewed for completeness • Check for valid purchase requisition • Check for original contractor’s signature • Check for contractor’s contact information • Check for department’s contact information • Check contract language for liabilities • If the contract is associated with a Campus or Department Event, check for event Board Approval Date (Health Fair, Spring Fling, Catering and etc)

18. Cont: Business Services Prepare Contract for Board Approval • Enter contract in data base • Send routine contract list to Board for approval • After the Board approves contract, the contract is sent to the Business Manager for signature.

19. Cont: Business Services After the Board Approves the Contract • Contracts are distributed to various parties • One original is filed with Business Services • One original is sent to the originating Department • One original is sent to Contractor • A photo copy is sent to Accounts Payable

20. Cont: Contractor • Contractor then performs service • Contractor invoices District for services • Invoice must have the purchase order number referenced on the invoice • Invoice should reference the employee contact name (example: Jane Smith, Grounds CHC) • All invoice are sent to : Accounts Payable – SBCCD 114 South Del Rosa Drive San Bernardino CA, 92408

21. Cont: Accounts Payable • Accounts Payable receives invoice from vendor • Accounts Payable matches invoice to PO and contract • Accounts Payable send invoice to department for approval

22. Cont: Department • Invoice is received by department • Invoice is reviewed for accuracy and completion of services • Invoice is signed “OK to Pay” by responsible center manager and dated • Invoice is sent to Accounts Payable for payment processing

23. Cont: Accounts Payable • Approved invoice is received by Accounts Payable Department • Invoice is placed in to the queue for processing • Invoice is processed for payment through District Financial Services • If Invoice is chosen for audit, this can delay payment for 10 to 30 days after Accounts Payable has submitted the invoice for payment to District Financial Services

24. Cont: Accounts Payable • Payment is released from District Financial Services • Warrant is sent to Accounts Payable for final processing • Warrant is mailed to contractor • Note: Contractor may not pickup warrant

25. Submitting a Contract

26. Business Services

29. Contract Check List • Three Original Contracts signed by Contractor • Funding Source: Budget Number • Contract starting and ending date • Name and phone number of employee • This must be a contract employee (permanent) • Department, Division, Club or Trust generating the contract • Certificate of Insurance (If required)

30. Contract Check List • Insurance • District requiring a certificate of insurance: • A Certificate of Insurance is required, showing that the person or organization contracting with us is covered by Public Liability Insurance in an amount not less than $1,000,000 listing the District as an Additional insuree

31. Contract Elements Cont. • Insurance continued • Contractor Requiring a Certificate of Insurance from the District • Complete a request for COI form located on the District web site under Fiscal Service, then under Business Services • www.sbccd.org

32. COI Request Form

34. Contract Check List • Contractor’s mailing address, phone number and contact person • If the contract is associated with an event the date of the Board approval of this event must be included • If contract required a Certificate of Insurance (COI) from the District a Request for COI form must be completed and attached • A Financial 2000 PR number • If Funded through a Club or Trust account, a copy of the signed CBO request and minutes approving the purchase

35. Contract Cover SheetComplete Contract Cover Page

37. Board Policy/Administrative Regulations 6340 and 6330 • Contract 6340 • All contracts must be approved by the Board of Trustees • Contracts can only be signed by a Board approved authorized signatory • Purchase 6330 • Only the District has the authority to purchase goods and services

38. Board Policy/Administrative Regulations 3760AR • Refreshments and Meals • When do you need the Expense Approved • When the cost excesses $500 • Any time you feed Students or Non-employees Board Approval is needed prior to the day of the activity, meeting, or conference, workshop, event and etc. This is a separate approval from the contract approval for the catering.

39. Voiding or Canceling a Contract

40. Canceling a Contract • Canceling or Termination of a contract • Review contract for cancellation clause • Review for terms and conditions of contract termination • Contact Business Services • Official notice to cancel a contract must be sent from the Business Services Office

41. Voiding A Contract • Contact Business Services • Questions we will ask you • Has the contract been signed by District? • Has work begun? • What is the reason for voiding the contract?

42. Mystery Contracts • Contracts that have no information sent with them. • A packet with just the contract • A fax of a fax Contract that can not be read

43. Remember • If you sign a contract, you get to write the check • No contracted services may begin prior to District and/or Board Approval • No goods or services may be ordered prior to District Approval

44. Invoices • Reminder – Do not send to Business Services Invoices, bills or Performa Invoices • All Invoices go to Accounts Payable • Accounts Payable pays bills • I have seen their job and I don’t want it

45. Contracts and YouThank you for Attending The Floor is Now Open for Questions