Policy 707

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     COMMISSION SALES - VENDING MACHINES & SCHOOL PICTURES

     

    I.       PURPOSE

     

    The purpose of this policy is to establish procedures to govern the commission sales from vending machines installed in school facilities and the sale of student school pictures.

     

    II.      GENERAL STATEMENT OF POLICY

     

    It is in the best interest of the District to contract for these services and account for the proceeds in a manner that allows those revenues to be included in the budget of the facility or department in which they are generated, and that establishes controls to avoid fraud, theft or the appearance of impropriety.

     

    III.     AUTHORIZATED COMMISSION SALES

     

    Contracts involving commission sales and automatic vending machines dispensing food, beverages or other approved items, and in compliance with the district’s Wellness policy, are authorized provided that all contracts are approved by the School Board.

     

    Contracts involving commission sales for student picture taking are authorized provided that all contracts are approved by the School Board.

     

    IV.    SUPERVISION AND CONTACTS

     

    A.     All contracts shall be considered by the School Board on a facility-by-facility basis.   Compliance with this policy and any applicable laws shall be the responsibility of the School Principal and/or Supervisor of Food Service.

     

    B.     A contract involving commission sales is an exception under Minnesota’s bid law, Minn. Stat. § 123B.52, and does not require a public bid.  However, if a distributor defines the terms of the contract to include the purchase of food products or materials by the school district for resale, this kind of contractual provision is subject to the provisions of the Uniform Municipal Contracting Law, thus meeting the definition of a “contract”, contained in Minn. Stat § 471.345, and if the amount of the purchase exceeds $50,000, it would trigger the requirement to advertise for bids and compliance with the bid law Statute.

     

    C.     A contract may be awarded after the receipt of two or more quotations and taking into consideration conformity with the specifications, terms of delivery, other conditions and compliance with Minn. Stat. § 123B.52. 

     

     

    D.     A copy of this policy shall be included in any specifications or request for proposal. A record shall be kept of all quotations received with the names, amounts and successful bidder indicated. All quotations shall be kept on file as a public record for a period of at least one year after their receipt.

     

    E.     A quotation must specify all commissions and any other non-commission amounts to be paid as a result of the award of the contract. The non-commission amounts include, but are not limited to, cash payments, in-kind payments, equipment donations, scholarship contributions, bonus payments, or other payments or contributions of any kind or nature. The non-commission amounts shall be reduced to a cash equivalency and shall be specified on the quotation as an additional amount to be paid as part of the contract award.

     

    F.      Contracts that may contain provisions allowing product exclusivity, shall be reviewed prior to the solicitation of quotations.

     

    G.     All contracts must be approved by the School Board. Any contract not in compliance with this policy shall be void. Any district employee signing an unauthorized contract may be subject to personal liability thereon and may be disciplined for said action.

     

    H.     No school district employee or school board member shall have a personal interest in, directly or indirectly, or personally benefit financially from a contract award.

     

    V.        ACCOUNTING

     

    A.     Proceeds from contracts shall be under the control of the School Board and must be in compliance with UFARS standards.

     

    B.     The annual school budget shall include an amount equal to the proceeds from the commission sales.

     

    C.       Pursuant to accounting standards, proper auditing and inventory control procedures shall be established by the responsible authority to ensure that commissions are being correctly calculated and paid.

     

    Legal References:   Minn. Stat. § 123B.52 (Contracts)

                                        Minn. Stat. § 123B.20 (Dealing in Supplies)

                                        Minn. Stat. § 471.345 (Contracts)

                                        Minn. Stat. § 471.87 (Conflict of Interest)

     

    ADOPTED BY THE BOARD OF EDUCATION: March 19, 2001

    REVIEWED AND AFFIRMED BY THE BOARD OF EDUCATION: October 7, 2013

    REVISED BY THE BOARD OF EDUCATION:   April 3, 2006