Student and Campus Activity Fund

If the Independent Contractor/Consultant individual will be working with students, a copy of the driver's license must be included.   

Documentation of insurance, such as general liability and workers compensations shall be submitted to the business office with the purchase order requisition; service agreements, such as engineering or architectural services (District Policy District as Insured CV(LEGAL), Required Notice TASB Notice 8 ) The Certificate of Insurance shall name “Lyford CISD” as additional insured. All documentation (including purchase order requisition) must be submitted and approved before the consultant is allowed on campus.

The District does not keep a contracted services agreement on file for officials and/ or judges because the officials do not work in isolation with students. Therefore, we do not run an Independent Contractor/Consultant Service Agreement through HR. TASO screens Varsity officials for any assault, sexual, or drug offense. TASO does not screen Sub-Varsity officials.

TRS Employment After Retirement and Working
as an Independent Contractor/Consultant Service

Work as an independent contractor. TRS Rules, Chapter 25, Membership Credit, RULE §25.3, Independent or Third-Party Contractor. Also, see: TRS Payroll Manual pg. 87 and IRS Publication 1779 , for criteria that can help to determine if someone is an independent contractor or an employee. RULE §25.3 

Except as provided in laws and rules regarding retirement with reduction for early-age, persons who perform services in a public school as employees of third parties which are not employers under §821.001 of the Government Code and independent contractors who perform services in a public school are not eligible for TRS membership.

Source Note: The provisions of RULE §25.3 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2093

Independent Contractor/Consultant Defined

 An independent contractor/consultant is usually:

(1) Not Under the day-to-day control of the reporting entity;

(2) Not required to keep “office hours” or “work hours” as does an employee;

(3) Does not utilize the reporting entity’s facilities, equipment, or materials to perform the service; and

(4) Does not usually market the services to only one reporting entity.

Duties for a position that are established in employer policies, laws, and/or rules indicate that the person is

(1) Under the day-to-day control of the reporting entity.

Further, having to teach a class or meet with students at an established time is considered having to keep “work hours”.

For these reasons:

(1) Superintendent,

(2) Principal,

(3) Assistant Principal,

(4) Teacher,

(5) Administrator, and/or

(6) Coach

Are NOT independent contractors/consultants. Please note that this list of positions does not include all of the positions that are not suitable for independent contractors but includes the positions most frequently misidentified as independent contractor. Please contact TRS of Texas or the IRS for further assistance.

TRS Employment After Retirement (ER) Independent Contractor/Consultant Reporting Requirements

For purposes of employment after retirement, retirees are considered employees during the first 12 consecutive-calendar-months following retirement, if they are performing duties or providing services for an educational institution that an employee of the institution would otherwise perform, and waiving, deferring, or foregoing compensation for those duties or services; working as independent contractors; or working as a volunteer but performing duties or providing services that the retiree performed immediately before retiring and has an agreement to perform or provide those same services or duties after the first 12 full, consecutive-calendar-months after retirement. Employers are required to report these retirees, as if they were employees, each month during the first 12 calendar months after the retiree’s effective date of retirement. This change applies to a retiree who retires after Sept. 1, 2017 and a retiree who on Sept. 1, 2017 is within the first 12 consecutive-calendar-months following the effective date of retirement.

Lyford Consolidated Independent School District is not responsible for any purchases or orders placed without a signed purchase order.

The purpose of the notice is to acquaint vendors with the Lyford Consolidated Independent School District Student and Campus Activity Accounts Purchasing Policies and to advise them as to the proper procedures for doing business with Lyford Consolidated Independent School District. If specific questions arise that are not answered in the material covered, vendors may address questions to:

Lyford Consolidated Independent School District

Elisa Rosas, Chief Financial Officer

Business Office

PO BOX 220

Lyford, TX 78569

(956) 347-3521 extension 202

The Lyford Consolidated Independent School District Business Office is the central procurement office for all departments within the District. It is the policy of the Lyford Consolidated Independent School District to provide for the fair and equitable treatment of all persons involved in public purchasing by the Lyford Consolidated Independent School District, to maximize the purchasing value of funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. The Business Office serves as the controller, to ensure that all departments adhere to the Lyford Consolidated Independent School District Student and Campus Activity Accounts Purchasing Policies. These procedures are designed to ensure that the District’s funds are expended in accordance with sound business practice, are recorded in compliance with acceptable accounting procedures, and meet the requirements of federal and state agencies that could assist in financing activities of Lyford Consolidated Independent School District.

Approved Vendors

The Business Office has primary responsibility for maintaining a list of approved vendors. All approved vendors must also have a W-9 on file. Contractors who do work for the District must have worker’s compensation and/or liability documentation on file.

Purchase Orders

Purchase Orders, prior to being issued, must have funds approved. The Business Office will not issue a purchase order before funds have been encumbered and the budget line item has been verified. It is important for vendors to remember that no office or department of the Lyford Consolidated Independent School District can authorize items or services to be delivered or performed prior to the vendor’s receipt of a purchase order. No officer or employee of the District shall purchase for or on behalf of the District any materials or supplies, goods, equipment, or services except through the Business Office. Purchases contrary to this method shall be deemed unauthorized purchases. The Lyford Consolidated Independent School District will not be responsible for the payment of any bills submitted for unauthorized purchases.

Vendor Requirements

The Lyford Consolidated Independent School District requires that all vendors adhere to the following policies and procedures when providing goods or services to the Lyford Consolidated Independent School District.

Filling a Purchase Order

• No items may be delivered or services performed prior to your receipt of the purchase order.
• If you are unable to provide an item or perform a service, it is your responsibility to communicate that to the department and/or personnel purchasing the item.
• You may not provide substitutes for any item or services listed on the purchase order without prior approval from the department and/or personnel purchasing the items.
• Pricing quoted on the purchase order must be adhered to unless prior approval is obtained from the department and/or person initiating the purchase.
• Carefully review the Terms and Conditions indicated on the purchase order.

 Shipment of Goods and Delivery of Services

• Shipments must be made to the address provided on the purchase order.
• The purchase order number must be indicated on all packing slips, bills of lading, cases, bundles, and correspondence.
• Include the name of the department to whom delivery of goods and/or services is to be made on your packing slip or delivery ticket.
• If goods are damaged, shipment will be refused and the vendor will be required to file all damage claims with the common carrier.
• Indicate on your packing slip or delivery ticket whether any item or quantity of items will not be delivered for any reasons.

Invoicing

• Address all invoices to the address provided on the purchase order.
• All vendors are required to submit invoices for both commodities and services.
• The purchase order number must be noted on the face of your invoice to ensure proper and timely payment from the Lyford Consolidated Independent School District.
• Cash discount terms must be specified on your invoice.
• Include on your invoice the name of the department to whom delivery of goods and or services was made.
• Indicate on your invoice any remaining items on the purchase order that will not be delivered.

 Payment Policies

• Vendors will not be prepaid for goods or services. Exceptions to this rule do exist, such as subscriptions and organization dues.
• Checks must be made to the vendor of record and as shown on the W-9.
• Checks are processed Wednesdays and Fridays, for approved payment vouchers received 3 days prior to check needed.

Thank you for your attention and adherence to these procedures. We look forward to working with you.

The Business Office will aggregate the data from all sponsors and issue 1099 Forms as required by the Internal Revenue Service. Note that club sponsors may not pay non-employees using either their own personal check or cash and then seek reimbursement from the  activity fund.

All vendors must complete the following prior to services rendered:

RESTAURANTS/MAJOR CONSUMER GOODS, SUPPLY CHAIN COMPANIES, VENDORS (NON GOODS OR SERVICE) CHECKLIST

• Addendum A (Notification to Independent Consultant for Contracted Services)
• Addendum B (Notification for Consultant with Employees)
• Food Handlers Certification

• If the consultant/contracted person will be working with students you must include a copy of your driver's license. 
• Documentation of insurance, such as general liability and workers compensations shall be submitted to the business office with the purchase order. Contracted agreements, such as engineering or architectural services (District Policy District as Insured CV(LEGAL), Required Notice TASB Notice 8 )

What are the Sales Tax guidelines?

GENERAL GUIDELINES

A school district is a political subdivision of the State of Texas and is, therefore, exempt from paying state sales tax and no tax number is assigned.

Purchases by the school for educational or instructional use or for administrative use necessary to the educational function of the school are exempt from tax (office supplies, duplicating paper, etc.)

A school must provide the vendor with a valid signed exemption certificate when claiming state sales tax exempt status.  Exemption certificates do not require numbers to be valid.

The District exemption status may not be utilized by parents, patrons, or alumni organizations to secure exemption from sales taxes. Parent/teacher organizations and booster clubs must apply for their own exemption.

MEALS AND HOTELS

Meals
Meals purchased by the school for athletic teams, bands, etc. on authorized school trips are exempt from sales tax if the school contracts for the meals. The school must pay for the meals with a school district check and provide the eating establishment with an exemption certificate.

Individual members of the athletic team, band, etc., may not claim exemption from the sales tax on the meals they purchase while on a school authorized trip.

Hotels
An exemption may also be claimed by the school from the state portion of the Hotel Occupancy Tax.

A Hotel Occupancy Tax Exemption Certificate must be furnished to a hotel when a district representative is occupying a room overnight while on school district business.  One certificate may be issued for more than one room, and the method of payment does not affect the tax nor determine the exempt status.

FUNDRAISERS

Determining if a sale is taxable or non taxable

Step 1. 
When determining whether a fundraiser or other type of sale is taxable or non taxable, the first consideration is whether the item is a taxable product.  The following chart depicts examples of taxable and non taxable items.  If the item is classified as non taxable, no sales tax should be assessed. 

Step 2.
The next consideration is whether the school group is considered a bona fide chapter according to State sales tax laws as stated below:

A bona fide chapter is a group that must be organized for some business or activity other than instruction or a participatory group.  Essentially, any student group that is recognized by the school and is organized by electing officers (not just participatory captains), holding meetings, and conducting business are bona fide chapters of the school and each group may have two, one-day tax-free sales in a calendar year. 

Groups meeting for classroom instruction or team sports are not categorized as bona fide chapters and do not qualify for the tax-free day sales.  For example:

• The school district qualifies for a tax-free day
• The school-wide fundraiser qualifies for a tax-free day
• The Basketball Club qualifies, but the basketball team does not 
• The Cheerleader Club qualifies, but not the cheerleader team 
• The Debate Club qualifies, but debate teams and classes do not 
• The French Club qualifies, but the French classes do not 
• The Senior Class qualifies, but not one particular class that has senior in it

Step 3
If the sales is considered taxable and the school group is considered a bona fide chapter, then the organization may deem the sale as one of its two, one-day tax-free sales. 

• Each school district, each school and each bona fide chapter of each school is allowed to have two, one-day tax-free sales each calendar year.  To qualify for a tax-free sale,  the organization must receive products deemed for sale in one shipment. Any items received after the initial shipment must be taxed.   During these tax-free sales, the organization may sell any taxable item tax-free when the price of the item is $5,000 or less.  There is no limit on the number of bona fide groups at a school or school district.

Exceptions:

• Book Fairs-The school shall collect sales tax on all taxable sales. If the school assumes responsibility for the activity and/or sales, the school is responsible for insuring the tax is paid. Schools may purchase books tax free for their own use because educational organizations have a statutory exemption. However, when students or other individuals purchase books, the purchase price is taxable and sales tax should be collected at the time of the sale. Sales tax is due regardless of whether the company makes the sale or the school makes the sale for a company on consignment.
• Catalog/Brochure Sales- For sales in which the campus/student group is considered an "agent", the one-day tax free sale provision cannot be used. (The campus/student group serves as an "agent" when it takes orders for the vendor and then receives a commission or percentage of the sales revenue.)

COLLECTIONS AND REMITTANCE

The campus/student group shall collect sales tax on all taxable sales when applicable.

Seller - the campus/student group serves as the "seller" when it purchases inventory from a vendor and then resells the items at its own profit or loss. Examples of this would be candy bar sales, t-shirts, etc.

Agent - the campus/student group servers as an "agent" when it takes orders for the vendor and then receives a commission or a percentage of the sales revenue. Examples of this would be book fairs, student pictures, and catalog/brochure sales. In "agent" relationships, the vendor is the responsible party for payment of sales tax to the Comptroller office.  However, the campus/student group would be responsible for collecting the tax. 

The one-day tax free sale provision, available twice per year, can only be used when the campus/student group is the "seller".  For sales in which the campus/student group is considered an "agent", the one-day tax free sale provision cannot be used. 

Campus/student groups are encouraged to work with the vendor for the "agent" sales and request that the sale price include tax or provide a chart for sales tax to help with calculations.  If the vendor cannot include sales tax in the selling price, then sales tax would have to be calculated and collected for each taxable item sold and then submitted to the vendor along with payment for the products.

When imposing sales tax, the school has the option of:

1. Adding the tax to the item’s selling price - thus, if the selling price of an item were $2.00 and the tax rate were 8.25%, the school would collect $2.16 ($2.00 x 1.0825) from the buyer for each item sold.
2. Absorbing the tax in the item’s selling price - thus if the item sold for $2.00 including tax, the school would retain $1.85 and remit $0.15 for sales tax. If this method is used, divide the total sales by 1.0825 (assuming a tax rate of 8.25%) to find the taxable sales. To determine the sales tax amount, subtract the taxable sales from the gross sales.

All sales tax collected by the school shall be remitted monthly to the district’s accounting office unless contractual agreements with a vendor stipulate that such taxes should be remitted to the vendor (school picture and book fair sales, and catalog/brochure fundraising sales).

Schools must submit a sales tax report by the 5th working day following the previous month’s collections to the Accounting Department.  This report must show the gross sales, taxable sales, and the amount of tax due.  Decentralized campuses must submit the Deposit Summary and the Tax Due on Receipt reports. 

Schools must file a sales tax report, even if no taxable sales are made in a given reporting period as all non-taxable sales must be reported.  This would include vending and food sales.  Campuses should not report textbooks fines, cash overages/shortages, student picture sales, etc. in the gross sales figure.  Gross sales should only include those amounts which represent actual sales by the campus