Contracts and You

Contracts and You Contracts and You

Contracts And You Contracts And You

What is a Contract?What is a Contract?

When do I need a When do I need a Contract?Contract?

What Needs to be in a What Needs to be in a Contract?Contract?

Life of a Contract: Life of a Contract: Conception to PaymentConception to Payment

Contract Packet for Contract Packet for SubmissionSubmission

Board Policy and Board Policy and Administrative RegulationsAdministrative Regulations

How to Void or Cancel a How to Void or Cancel a ContractContract

Mystery ContractsMystery Contracts

Reminders Reminders

Frequently Asked QuestionsFrequently Asked Questions

ContractsContracts

What is a Contract?What is a Contract?

A Rose by Any Other A Rose by Any Other Name… Name…

Contract go by many namesContract go by many namesAgreement Agreement

Quote for Service Quote for Service

Work OrderWork Order

Confirmation Order Confirmation Order

Purchase Agreement Purchase Agreement

Service RequestService Request

MOU – Memorandum MOU – Memorandum of Understandingof Understanding

Any document that Any document that requires a signature requires a signature to begin Work/ to begin Work/ Service/ Delivery Service/ Delivery

Remember If it looks Like a Duck, Walks Like a Duck, Remember If it looks Like a Duck, Walks Like a Duck, it is a Duckit is a Duck

What is a contract? What is a contract?

QuestionsQuestions

When do I need a When do I need a Contract?Contract?

Services – Non TangiblesServices – Non Tangibles Examples of services Examples of services

Bus RentalsBus Rentals RepairsRepairs SpeakersSpeakers Outside PrintingOutside Printing AdvertisingAdvertising CateringCatering ConsultantsConsultants PerformersPerformers Meeting Room Rental Meeting Room Rental RentalsRentals Maintenance AgreementMaintenance Agreement Most 5000 ObjectMost 5000 Object

Code Expenditures Code Expenditures

5000 Object Code5000 Object Code

Most service funded through the 5000 object code Most service funded through the 5000 object code require a contract require a contract

Review Chart of Accounts found on the district web site Review Chart of Accounts found on the district web site

www.sbccd.orgwww.sbccd.org

Click on Purchasing Click on Purchasing

Click on Chart of Accounts Click on Chart of Accounts

Chart of AccountsChart of Accountswww.sbccd.org

When do I need a Contract?When do I need a Contract?

QuestionsQuestions

What informational What informational pieces need to be in a pieces need to be in a

contract?contract?

Contract ElementsContract Elements The Names of the contracting partiesThe Names of the contracting parties

San Bernardino Community College District for SBVC or CHC San Bernardino Community College District for SBVC or CHC CampusCampus

Contractor NameContractor Name

Date the Service is to be preformedDate the Service is to be preformed

Cost of Service Cost of Service

A detailed description of services to be performedA detailed description of services to be performed

Signature of Contractor and District Signature of Contractor and District Sometimes it is just the District Signature that is requiredSometimes it is just the District Signature that is required

Contract Elements Cont.Contract Elements Cont.

Insurance Insurance District requiring a Certificate of insuranceDistrict requiring a Certificate of insurance

Contractor Requiring a Certificate of Contractor Requiring a Certificate of Insurance from the DistrictInsurance from the District

Note this will be cover in detail the Contract Note this will be cover in detail the Contract Submission Section Submission Section

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

QuestionsQuestions

Life Cycle of a ContractLife Cycle of a Contract

ConceptionConception

toto

PaymentPayment

Cont:Cont: DepartmentDepartment Generate contract with contractor/vendorGenerate contract with contractor/vendor

If new contractor/Vendor a Vendor Application must be completed If new contractor/Vendor a Vendor Application must be completed by Contractor/Vendor by Contractor/Vendor

Process purchase requisition for the full amount of the contract Process purchase requisition for the full amount of the contract valuevalue

Review contract check list for completionReview contract check list for completion

Complete contract coversheet then print from web page and attach Complete contract coversheet then print from web page and attach to contract packetto contract packet

Submit contract coversheet notification on web pageSubmit contract coversheet notification on web page

Send complete contract packet to Business Services for processingSend complete contract packet to Business Services for processing

Cont: Business ServicesCont: Business Services Contract packet reviewed for completeness Contract packet reviewed for completeness

Check for valid purchase requisition Check for valid purchase requisition

Check for original contractor’s signatureCheck for original contractor’s signature

Check for contractor’s contact informationCheck for contractor’s contact information

Check for department’s contact informationCheck for department’s contact information

Check contract language for liabilitiesCheck contract language for liabilities

If the contract is associated with a Campus or Department If the contract is associated with a Campus or Department Event, check for event Board Approval Date (Health Fair, Event, check for event Board Approval Date (Health Fair, Spring Fling, Catering and etc)Spring Fling, Catering and etc)

Cont: Business ServicesCont: Business Services

Prepare Contract for Board Approval Prepare Contract for Board Approval Enter contract in data baseEnter contract in data base

Send routine contract list to Board for Send routine contract list to Board for approval approval

After the Board approves contract, the After the Board approves contract, the contract is sent to the Business Manager for contract is sent to the Business Manager for signature.signature.

Cont: Business ServicesCont: Business Services

After the Board Approves the ContractAfter the Board Approves the Contract

Contracts are distributed to various partiesContracts are distributed to various parties One original is filed with Business ServicesOne original is filed with Business Services

One original is sent to the originating DepartmentOne original is sent to the originating Department

One original is sent to Contractor One original is sent to Contractor

A photo copy is sent to Accounts PayableA photo copy is sent to Accounts Payable

Cont: ContractorCont: Contractor

Contractor then performs service Contractor then performs service

Contractor invoices District for servicesContractor invoices District for services Invoice must have the purchase order number referenced Invoice must have the purchase order number referenced

on the invoiceon the invoice Invoice should reference the employee contact name Invoice should reference the employee contact name

(example: Jane Smith, Grounds CHC)(example: Jane Smith, Grounds CHC)

All invoice are sent to :All invoice are sent to : Accounts Payable – SBCCD Accounts Payable – SBCCD 114 South Del Rosa Drive 114 South Del Rosa Drive San Bernardino CA, 92408San Bernardino CA, 92408

Cont: Accounts PayableCont: Accounts Payable

Accounts Payable receives invoice from Accounts Payable receives invoice from vendorvendor

Accounts Payable matches invoice to PO Accounts Payable matches invoice to PO and contract and contract

Accounts Payable send invoice to Accounts Payable send invoice to department for approval department for approval

Cont: DepartmentCont: Department

Invoice is received by department Invoice is received by department

Invoice is reviewed for accuracy and Invoice is reviewed for accuracy and completion of services completion of services

Invoice is signed “OK to Pay” by responsible Invoice is signed “OK to Pay” by responsible center manager and datedcenter manager and dated

Invoice is sent to Accounts Payable for Invoice is sent to Accounts Payable for payment processingpayment processing

Cont: Accounts Payable Cont: Accounts Payable

Approved invoice is received by Accounts Payable Approved invoice is received by Accounts Payable Department Department

Invoice is placed in to the queue for processing Invoice is placed in to the queue for processing

Invoice is processed for payment through District Invoice is processed for payment through District Financial ServicesFinancial Services

If Invoice is chosen for audit, this can delay payment If Invoice is chosen for audit, this can delay payment for 10 to 30 days after Accounts Payable has submitted for 10 to 30 days after Accounts Payable has submitted the invoice for payment to District Financial Services the invoice for payment to District Financial Services

Cont: Accounts PayableCont: Accounts Payable

Payment is released from District Financial Payment is released from District Financial ServicesServices

Warrant is sent to Accounts Payable for final Warrant is sent to Accounts Payable for final processingprocessing

Warrant is mailed to contractorWarrant is mailed to contractor

Note: Contractor may not pickup warrantNote: Contractor may not pickup warrant

Submitting a ContractSubmitting a Contract

Business ServicesBusiness Services

Contract Check ListContract Check List Three Original Contracts signed by ContractorThree Original Contracts signed by Contractor

Funding Source: Budget NumberFunding Source: Budget Number

Contract starting and ending dateContract starting and ending date

Name and phone number of employeeName and phone number of employee This must be a contract employee (permanent)This must be a contract employee (permanent)

Department, Division, Club or Trust generating the Department, Division, Club or Trust generating the contractcontract

Certificate of Insurance (If required)Certificate of Insurance (If required)

Contract Check ListContract Check List

Insurance Insurance District requiring a certificate of insurance:District requiring a certificate of insurance:

A Certificate of Insurance is required, showing A Certificate of Insurance is required, showing that the person or organization contracting with that the person or organization contracting with us is covered by Public Liability Insurance in an us is covered by Public Liability Insurance in an amount not less than $1,000,000 listing the amount not less than $1,000,000 listing the District as an Additional insuree District as an Additional insuree

Contract Elements Cont.Contract Elements Cont.

Insurance continuedInsurance continued Contractor Requiring a Certificate of Contractor Requiring a Certificate of

Insurance from the DistrictInsurance from the District

Complete a request for COI form located on the Complete a request for COI form located on the District web site under Fiscal Service, then under District web site under Fiscal Service, then under Business Services Business Services

www.sbccd.orgwww.sbccd.org

COI Request FormCOI Request Form

Contract Check ListContract Check List Contractor’s mailing address, phone number and Contractor’s mailing address, phone number and

contact person contact person

If the contract is associated with an event the date of If the contract is associated with an event the date of the Board approval of this event must be included the Board approval of this event must be included

If contract required a Certificate of Insurance (COI) If contract required a Certificate of Insurance (COI) from the District a Request for COI form must be from the District a Request for COI form must be completed and attachedcompleted and attached

A Financial 2000 PR numberA Financial 2000 PR number

If Funded through a Club or Trust account, a copy of If Funded through a Club or Trust account, a copy of the signed CBO request and minutes approving the the signed CBO request and minutes approving the purchasepurchase

Contract Cover SheetContract Cover SheetComplete Contract Cover PageComplete Contract Cover Page

Board Policy/Administrative Board Policy/Administrative Regulations 6340 and 6330Regulations 6340 and 6330

Contract 6340Contract 6340 All contracts must be approved by the Board of All contracts must be approved by the Board of

TrusteesTrustees

Contracts can only be signed by a Board approved Contracts can only be signed by a Board approved authorized signatoryauthorized signatory

Purchase 6330 Purchase 6330 Only the District has the authority to purchase goods Only the District has the authority to purchase goods

and services and services

Board Policy/Administrative Board Policy/Administrative Regulations 3760ARRegulations 3760AR Refreshments and MealsRefreshments and Meals

When do you need the Expense ApprovedWhen do you need the Expense Approved When the cost excesses $500When the cost excesses $500 Any time you feed Students or Non-employeesAny time you feed Students or Non-employees

Board Approval is needed prior to the day of the Board Approval is needed prior to the day of the activity, meeting, or conference, workshop, event activity, meeting, or conference, workshop, event and etc. and etc.

This is a separate approval from the contract This is a separate approval from the contract approval for the catering. approval for the catering.

Voiding or Voiding or Canceling a ContractCanceling a Contract

Canceling a ContractCanceling a Contract

Canceling or Termination of a contract Canceling or Termination of a contract

Review contract for cancellation clauseReview contract for cancellation clause Review for terms and conditions of contract Review for terms and conditions of contract

terminationtermination

Contact Business ServicesContact Business Services Official notice to cancel a contract must be sent Official notice to cancel a contract must be sent

from the Business Services Officefrom the Business Services Office

Voiding A ContractVoiding A Contract

Contact Business ServicesContact Business Services

Questions we will ask youQuestions we will ask you Has the contract been signed by District?Has the contract been signed by District? Has work begun?Has work begun? What is the reason for voiding the contract? What is the reason for voiding the contract?

Mystery ContractsMystery Contracts

Contracts that have no Contracts that have no information sent with information sent with them. them.

A packet with just the A packet with just the contractcontract

A fax of a fax Contract A fax of a fax Contract that can not be readthat can not be read

Remember Remember If you sign a contract, you get to If you sign a contract, you get to

write the check write the check

No contracted services may No contracted services may begin prior to District and/or begin prior to District and/or Board ApprovalBoard Approval

No goods or services may be No goods or services may be ordered prior to District Approvalordered prior to District Approval

Invoices Invoices Reminder – Do not send to Reminder – Do not send to

Business Services Business Services Invoices, bills or Performa Invoices, bills or Performa InvoicesInvoices

All Invoices go to Accounts All Invoices go to Accounts Payable Payable

Accounts Payable pays Accounts Payable pays bills bills

I have seen their job and I I have seen their job and I don’t want itdon’t want it

Contracts and YouContracts and YouThank you for AttendingThank you for Attending

The Floor is Now Open for QuestionsThe Floor is Now Open for Questions