Return to Rules & Legislation Page
TABLE OF CONTENTS (TOC)
SECTION ONE—INTRODUCTION - 1‑1
1.1 PURPOSE OF MANUAL - 1‑1
1.2 SCOPE OF MANUAL - 1‑1
1.3 ORGANIZATION OF MANUAL - 1‑1
1.4 MANUAL UPDATING PROCEDURES - 1‑3
SECTION TWO‑‑PROGRAM FINANCE - 2‑1
2.1 GENERAL - 2‑1
2.2 FEDERAL FUND SUBACCOUNTS - 2‑1
2.2.1 RECEIPT SUBACCOUNTS - 2‑1
2.2.2 EXPENDITURE SUBACCOUNT - 2‑1
2.3 PROGRAM INCOME SUBACCOUNTS - 2‑2
2.3.1 FEDERAL VENDING RESERVE‑‑SUBACCOUNT ER61 - 2‑3
2.3.2 PROGRAM DEVELOPMENT AND EXPANSION FUND‑‑SUBACCOUNTER65 - 2‑4
2.3.3 REST AREA DEVELOPMENT FUND‑‑SUBACCOUNT ER63 - 2‑5
2.3.4 SET‑ASIDE FUND—SUBACCOUNT ER62 - 2‑5
2.3.5 PURCHASE OF STOCK FUND‑‑SUBACCOUNT ER64 - 2‑6
SECTION THREE‑‑BEPB BUDGET - 3‑1
3 1 GENERAL - 3‑1
3 2 BUDGET DEVELOPMENT - 3‑1
3 2 1 PRELIMINARY PLANNING PHASE - 3‑1
3 2 2 BUDPGET REPARATION PHASE - 3‑4
3 2 3 BUDGET APPROVAL PHASE - 3‑5
3 3 BUDGET DEVELOPMENT SCHEDULE - 3‑6
3 4 BUDGET MONITORING - 3‑6
SECTION FOUR‑‑BEPB FINANCIAL MANAGEMENT AND ACCOUNTING - 4‑1
4.1 OVERVIEW - 4‑1
4.2 VENDOR ACCOUNTING SERVICE - 4‑1
4.3 PROCESSING ACTIVITY FOR VENDORS ON INDEPENDENT ACCOUNTING - 4‑3
4.4 PROCESSING ACTIVITY FOR FACILITIES OPERATED BY ORS AND FOR VENDORS UTILIZING
ACCOUNTING SERVICES
PROVIDED BY ORS THROUGH A CONTRACT WITH AN ACCOUNTING FIRM -4‑4
4.5 MONTH END PROCESSING ACTIVITY - 4‑7
4.6 PROGRAM WIDE ACCOUNTING SERVICES - 4‑9
4.7 ACCOUNTING PROCEDURES FOR BEPB INCOME - 4‑10
4.7.1 FEDERAL FUNDS - 4‑10
4.7.2 PROGRAM INCOME FUNDS - 4‑11
4.7.3 TRANSMITTING PROGRAM INCOME TO ORS - 4‑17
4.8 ACCOUNTING PROCEDURES FOR BEPB EXPENDITURES - 4‑18
4.8.1 EXPENDITURES UNDER CONTRACTS - 4‑18
4.8.2 EXPENDITURES NOT UNDER CONTRACTS - 4‑20
4.8.3 EXPENDITURES MADE BY THE ACCOUNTING FIRM UNDER CONTRACT TO ORS - 4‑22
4.8.4 INVOICE‑VOUCHER PROCESSING PROCEDURES - 4‑24
4.9 PROCEDURES REGARDING CASH RECONCILIATIONS - 4‑25
4.9.1 PERFORMANCE OF MONTHLY CASH RECONCILIATIONS - 4‑25
4.10 FINANCIAL REPORTING - 4‑27
4.10.1 OVERVIEW - 4‑27
4.10.2 REGULAR REPORTS - 4‑27
4.10.3 FEDERAL REPORTING - 4‑29
4.10.4 SPECIAL AND DEMAND REPORTS - 4‑32
SECTION FIVE‑‑BEPB CONTRACT AND PROCUREMENT PROCEDURES - 5‑1
5.1 INTRODUCTION - 5‑1
5.2 SUMMARY OF BEPB PURCHASING REQUIREMENTS - 5‑1
5.3 PLANNING PURCHASES OF GOODS AND SERVICES - 5‑3
5.4 OTHER NEEDS - 5‑5
5.5 PROCUREMENT PROCEDURES - 5‑6
5.5.1 SELECTING THE APPROPRIATE METHOD OF PROCUREMENT - 5‑6
5.5.2 COMPETITIVE SOURCE SELECTION - 5‑8
5.5.3 SMALL PURCHASE PROCUREMENT - 5‑10
5.5.4 PROFESSIONAL AND ARTISTIC SERVICES OF LESS THAN $20,000 - 5‑11
5.5.5 SOLE SOURCE PROCUREMENT - 5‑11
5.5.6 EMERGENCY PROCUREMENT - 5‑13
5.6 PROCUREMENT TIMELINES - 5‑14
5.6.1 SCHEDULE FOR PURCHASES PLANNED IN ADVANCE - 5‑14
5.6.2 TIMELINES FOR OTHER PURCHASES - 5‑16
5.7 CONTRACT INITIATION AND FILING REQUIREMENTS - 5‑16
5.7.1 CONTRACT ENDORSEMENT FORM - 5‑16
5.7.2 CONTRACT PREPARATION - 5‑17
5.7.3 CONTRACT DOCUMENTATION REQUIREMENTS - 5‑17
5.7.4 CONTRACT AMENDMENTS - 5‑18
5.7.5 CONTRACT RENEWALS - 5‑18
SECTION SIX‑‑BEPB EQUIPMENT ACQUISITION, REPAIR AND INVENTORY REQUIREMENTS - 6‑1
6.1 GENERAL - 6‑1
6.2 ACQUISITION OF BEPB EQUIPMENT - 6‑3
6.2.1 EQUIPMENT BUDGET - 6‑3
6.2.2 REQUESTS FOR EQUIPMENT PURCHASES - 6‑4
6.2.3 AUTHORIZATION PROCEDURES FOR NEW AND REPLACEMENT EQUIPMENT - 6‑5
6.2.4 NOTIFICATION PROCEDURES FOR DECISIONS REGARDING
EQUIPMENT PURCHASE REQUESTS - 6‑6
6.2.5 EQUIPMENT PURCHASE PROCEDURES - 6‑6
6.2.6 EQUIPMENT DELIVERY AND INSTALLATION - 6‑8
6.2.7 ADDING EQUIPMENT TO INVENTORY - 6‑9
6.2.8 INITIATING PAYMENT FOR NEW EQUIPMENT -6‑10
6.3 BEPB EQUIPMENT REPAIRS - 6‑10
6.3.1 BEPB EQUIPMENT REPAIR POLICY - 6-10
6.3.2 ADVANCE APPROVAL PROCEDURES - 6-11
6.3.3 EQUIPMENT REPAIR REBATE PROCESS - 6-12
6.3.4 MAINTAINING AN EQUIPMENT REPAIR HISTORY - 6‑12
6.4 PROPERTY CONTROL PROCEDURES FOR BEPB EQUIPMENT - 6‑13
6.4.1 GENERAL INVENTORY REQUIREMENTS - 6‑13
6.4.2 RESPONSIBILITIES RELATED TO BEPB PROPERTY CONTROL - 6‑13
6.4.3 CHANGES IN THE STATUS OF EQUIPMENT - 6‑14
6.4.4 ANNUAL PHYSICAL INVENTORY REQUIREMENTS - 6‑17
SECTION SEVEN‑‑FACILITY DEVELOPMENT AND EXPANSION - 7‑1
7.1 OVERVIEW - 7‑1
7.2 FACILITY EXPANSION - 7‑1
7.2.1 FACILITY EXPANSION REQUESTS - 7‑1
7.2.2 DECISIONS ON EXPANSION REQUESTS - 7‑2
7.3 ADDITION OF NEW FACILITIES - 7‑3
7.3.1 IDENTIFICATION OF POTENTIAL NEW FACILITIES - 7‑3
7.3.2 IMPLEMENTATION PLANNING FOR NEW FACILITIES - 7‑4
7.3.3 OPERATION OF NEW AND EXISTING FACILITIES BY ORS - 7‑5
SECTION EIGHT‑‑VENDOR AGREEMENTS AND SITE CONTRACTS - 8‑1
8.1 AGREEMENTS WITH VENDORS - 8‑1
8.1.1 RESPONSIBILITIES - 8‑1
8.1.2 PROCESSING REQUIREMENTS - 8‑1
8.2 SITE CONTRACTS - 8‑2
8.2.1 RESPONSIBILITIES - 8‑2
8.2.2 PROCESSING REQUIREMENTS - 8‑3
8.2.3 PROBLEMS AND DISPUTES - 8‑3
SECTION NINE‑‑VENDOR ASSESSMENT ACTIVITIES - 9‑1
9.1 STRUCTURE FOR VENDOR ASSESSMENTS - 9‑1
9.1.1 PERIODIC ON‑SITE ASSESSMENT - 9‑2
9.1.2 ANNUAL VENDOR EVALUATION - 9‑2
9.1.3 COMPETITIVE RATING OF VENDOR QUALIFICATIONS AS PART OF FACILITY ASSIGNMENT
DETERMINATIONS - 9‑3
9.2 PROCEDURES FOR ENSURING CONSISTENT VENDOR ASSESSMENTS - 9‑4
9.2.1 UNIFORM RATING SCALES - 9‑4
9.2.2 DEVELOPMENT OF RATING CRITERIA BY BUSINESS CONSULTANTS - 9‑4
9.2.3 PERIODIC REVIEW OF RATING CRITERIA - 9‑6
SECTION TEN‑‑DISCIPLINARY
ACTIVITIES - 10‑1
10.1 GENERAL RESPONSIBILITIES RELATED TO DISCIPLINARY ACTIVITIES - 10‑1
10.2 KEY DISCIPLINARY PROCEDURES - 10‑1
10.3 AUTHORIZATION FOR DISCIPLINARY ACTION - 10‑1
ORS BUSINESS ENTERPRISE PROGRAM FOR THE BLIND
Preface to the BEPB
Administrative Procedures Manual
Policies and procedures regarding the management and administration of the
Illinois Business Enterprise Program for the Blind (BEPB) are established by the
staff of the Office of Rehabilitation Services (ORS) who are involved in the
management and administration of the BEPB in collaboration with the
Illinois Committee of Blind Vendors (ICBV). In compliance with
the Randolph‑Sheppard Act and rules and regulations governing the BEPB, the ICBV
actively participates in major administrative and policy and program development
decisions regarding the BEPB. The ICBV plays an active role in decision making
regarding major policy and procedural issues through discussions at regularly
scheduled ICBV meetings as well as through subcommittee involvement. According
to the administrative rules governing the ICBV, "active participation" does not
mean concurrence on all issues, and where concurrence is not reached, ORS is
given the ultimate authority to determine policies per 34 CFR 395. When
concurrence is not reached on an issue, BEPB management must document both ORS'
and the ICBV's positions on the issue and justify in writing the
decision regarding the issue.
SECTION
ONE—INTRODUCTION
1.1 PURPOSE OF MANUAL
A. The purpose of this Manual is to provide information and procedural
guidance to assist in administration of the Illinois Business Enterprise Program
for the Blind (BEPB). The information and guidance contained in this Manual is
for the primary use of staff of the Office of Rehabilitation Services (ORS) who
are involved in administration and management of the BEPB.
1.2 SCOPE OF MANUAL
A. Key policies and procedures utilized in the overall management and
administration of the BEPB are described in this manual. Due to both the nature
of the program and the role of ORS, the procedures and guidance in this Manual
focus mainly on program finances and financial administration. Procedures and
requirements pertaining to the operation of vending facilities are described
in other BEPB procedural documents.
1.3 ORGANIZATION OF MANUAL
A. This Manual is organized into the following sections:
Section One provides a general introduction to the Manual and information
on the purpose, scope and organization of the Manual. It also describes the
procedures used to update the Manual.
Section Two provides information on basic program finance. The structure
and use of the specific BEPB accounts and subaccounts are described in this
section. Page 1‑2
Section Three describes the annual budgeting process utilized for the BEPB
and includes a description of the responsibilities for preparing and approving
BEPB annual operating budgets. This section also provides a format and
procedures for the BEPB annual operating budget.
Section Four describes procedures related to program financial management
and administration. Procedures for receipt and expenditure of program income, as
well as other program accounting and financial management procedures, are
included in this section.
Section Five provides information on program purchases. The procurement
policies applicable to the BEPB are summarized, and purchasing procedures under
these policies are specified. Requirements for sole source procurements and
emergency purchases are also described.
Section Six describes procedures related to BEPB equipment purchases,
maintenance and management. In addition to the property control procedures used
for the program, this Section also describes the procedures under which ORS
provides financial assistance to program Vendors for equipment repairs.
Section Seven describes ORS policies and procedures related to development
and expansion of vending facilities. Responsibilities for facility expansion are
identified, and the circumstances under which ORS directly operates BEPB
facilities are identified.
Section Eight describes responsibilities and processing requirements and
procedures for vendor agreements and contracts with facility sites. Page 1‑3
Section Nine provides general information and guidance related to periodic
assessments of Vendors, including assessments conducted through onsite
visitations to BEPB facilities, through annual vendor evaluations and
assessments made in conjunction with the vendor selection process.
Section Ten describes procedures for internal coordination and approval of
disciplinary actions taken against Vendors.
1.4 MANUAL UPDATING PROCEDURES
A. The procedural
guidance included in this Manual will be updated as necessary in the future to
ensure that it remains accurate and current. As changes are made, replacement
pages will be issued to all holders of the Manual. Each replacement page will be
dated with the effective date of the change and the ? symbol will be used to
highlight the new or changed information on the replacement page.
B. Functional titles for BEPB administrative staff have been used
throughout this Manual when identifying responsibilities of individual staff
since individual position title may change over time. BEPB will periodically
issue memoranda or other written clarifications, regarding this Manual,
including any clarification needed regarding the responsibilities associated
with these functional titles. Return to TOC
SECTION
TWO
PROGRAM FINANCE
2.1 GENERAL
A. Revenue supporting the operation of the BEPB comes from two general
sources. Federal Vocational Rehabilitation funds made available to ORS and
internally allocated to the BEPB, is the first source of funds. The second
source of funds is income generated as a result of program operations.
B. All program income coming into the BEPB is accounted for through unique
receipt subaccounts established with the Office of the Comptroller. Program
expenses are accounted for through companion expenditure accounts established
internally within ORS. The program's expenditure authority derives from an
annual, lump sum appropriation for the Small Business Enterprise Program made
by the Illinois General Assembly.
2.2 FEDERAL FUND SUBACCOUNTS
‑‑2.2.1 RECEIPT SUBACCOUNTS.
Subaccount ERM is the one receipt subaccount for Federal funds utilized in the
BEPB.
‑‑2.2.2 EXPENDITURE SUBACCOUNTS.
The following eight expenditure subaccounts have been established for Federal
funds used in the BEPB
A. Subaccount ERM1. Reserved.
B. Subaccount ERM2. This subaccount is used for purchase of vending
facility equipment and to pay equipment‑related expenses, such as moving costs
and equipment repair and maintenance costs. The vast majority of Federal funds
are used for equipment purchases. Page 2‑2
C. Subaccount ERM3. This subaccount is used to pay expenses associated with
operation of the Illinois Committee of Blind Vendors, including expenses related
to ICBV meetings. Costs of vendor selection committees are also paid out of this
subaccount.
D. Subaccount ERM4. This subaccount is used to pay expenses associated with
training ICBV members.
E. Subaccount ERM5. This subaccount is used to pay the Federal portion of
program management costs such as accounting services.
F. Subaccount ERM6. This subaccount is used for costs
associated with training BEPB Vendors.
G. Subaccount ERM7. This subaccount is used to pay warehousing
costs for BEPB equipment.
H. Subaccount ERM8. This subaccount is used for program costs being paid
with reallocated Federal funds.
2.3 PROGRAM INCOME SUBACCOUNTS
A. Five subaccounts are used to account for income generated by BEPB
operations and activity, and for the expenditure of this income. A separate
receipt subaccount and an expenditure subaccount exists for each source of
program income. All program income subaccounts are enumerated in the ER series.
Page 2‑3
‑‑2.3.1 FEDERAL VENDING RESERVE‑‑SUBACCOUNT ER61
A. Purpose. This subaccount is used for the receipt and expenditure of
income from vending machines at Federal facilities which are not operated by
blind Vendors.
B. Source of Income. According to Federal regulations (34 CFR 395.32 ), a
portion of the income earned by non‑BEPB Vendors operating facilities at Federal
locations must be paid to the State. When received, this income is accounted for
through the Federal Vending Reserve income account.
C. Allowable Uses. Federal Vending Reserve income may be used for:
‑‑Establishing and maintaining retirement or pension plans for Vendors
‑‑Making contributions to vendor health programs
‑‑Providing paid sick and vacation time for Vendors
‑‑Maintaining or replacing equipment
‑‑Purchasing new equipment
‑‑Providing management services
‑‑Assuring a fair minimum return to Vendors.
In Illinois, annual contributions to this fund are divided equally among
all current Vendors who managed program inventories for at least the last six
months of the previous calendar year. Vendors are paid in a lump sum as a bonus
(vacation) payment. Page 2‑4
‑‑2.3.2 PROGRAM DEVELOPMENT AND EXPANSION FUND
—SUBACCOUNT ER65
A. Purpose. This subaccount is used for the purpose of developing and
expanding BEPB facilities for those Vendors electing to participate in the
voluntary BEPB purchase of stock program.
B. Sources of Income. Income into the Program Development and Expansion
Fund subaccount comes from two sources:
1. Profits from vending facilities, other than rest area vending
facilities, which are operated directly by ORS. Generally, ORS temporarily
operates vending facilities under two circumstances:
‑‑for an initial start‑up period for new facilities, and
‑‑until a new vendor is selected to operate an existing facility which has
been vacated due to the absence or retirement of the vendor for the facility.
Losses from ORS‑operated facilities are also allocated to the fund.
2. Transfers made on a quarterly basis from the Purchase of
Stock Fund when the balance in that fund exceeds $75,000.
C. Allowable Uses. Funds available in this program income
subaccount are used for:
‑‑purchase of replacement equipment
‑‑purchase of equipment to expand an existing facility
‑‑costs for equipment repair and maintenance
‑‑other costs to expand an existing facility such as remodeling and
renovation costs. Page 2‑5
‑‑2.3.3 REST AREA DEVELOPMENT FUND‑‑SUBACCOUNT ER63
A. Purpose. This subaccount is used to finance the remodeling of rest areas
to prepare them for use in the Vending Facility Program for the Blind.
B. Sources of Income. Income into the Rest Area Development Fund comes from
two sources:
1. Profits from rest area vending facilities operated directly by ORS.
2. Commissions received for newspaper sales and sales from other
publications sold at rest stops.
C. Allowable Uses. Funds available in this program income subaccount are
used exclusively for construction of new BEPB facilities and remodeling costs
associated with existing BEPB facilities at rest stops.
‑‑2.3.4 SET‑ASIDE FUND‑‑SUBACCOUNT ER62
A. Purpose. This subaccount is used to pay for a portion of the operating
costs and administrative expenses associated with the BEPB.
B. Sources of Income. Income into the Set‑Aside Fund comes from the
set‑aside fees assessed against all Vendors in the program. Fees are assessed at
two levels:
1. 6 percent of net monthly profits for Vendors who assume responsibility
for their own accounting services Page 2‑6
2. 9 percent of net monthly profits for Vendors electing to use accounting
services provided by an accounting firm under contract to ORS.
C. Allowable Uses. Funds available in this program income subaccount may be
used for:
‑‑maintenance and replacement of equipment at vending facilities
‑‑purchase of new equipment
‑‑program management services
‑‑assuring a fair minimum return to Vendors
‑‑establishing and maintaining retirement and pension funds for Vendors
‑‑sick leave and vacation time for Vendors.
‑‑2.3.5 PURCHASE OF STOCK FUND‑‑SUBACCOUNT ER64
A. Purpose. This subaccount is used to generate additional income for
development and expansion of existing facilities.
B. Sources of Income. Income into the Purchase of Stock Fund comes from
Vendors who:
1. elect to purchase over time their inventory of stock by paying 2 percent
of the net monthly proceeds towards the value of the starting inventory. Only
those Vendors who make this election and who make monthly payments are eligible
to receive funds from this subaccount.
2. require working capital advances and who are making scheduled repayments
of the amount of working capital advanced. Page 2‑7
C. Allowable Uses.
1. Program income deposited into the Purchase of Stock Fund is
used to buy back inventory from Vendors:
‑‑when they retire or otherwise leave the program, or
‑‑when they transfer to a facility requiring an inventory value which is
less than the inventory the transferring vendor owns at the facility being
vacated.
2. Program income for purchase of inventory or repayment of working capital
advances that accumulates to an amount greater than $75,000 is to be transferred
at the end of each calendar quarter to the Program Development and Expansion
Fund. Return to TOC
SECTION
THREE
BEPB BUDGET
3.1 GENERAL
A. The BEPB Administrator, with the assistance of BEPB staff, is
responsible for coordinating the preparation of an annual operating budget for
the BEPB. This annual operating budget is to be consistent with the BEPB's Long
Range Plan and developed so that it reflects planned income and expenditures for
the BEPB on a Federal fiscal year basis. The annual BEPB operating budget is
to be prepared in accordance with the general procedures described in this
section.
3.2 BUDGET DEVELOPMENT
A. There are three phases to the process of developing the annual operating
budget for the BEPB. They are:
1. the preliminary planning phase
2. the budget preparation phase, and
3. the budget approval phase.
The procedures for each of these phases are described in this section.
‑‑3.2.1 PRELIMINARY PLANNING PHASE
A. Five primary activities occur in the preliminary planning phase.
1. Review and Modification of the Long Range Plan. BEPB management and the
ICBV must jointly review the Long Range Plan and make any necessary
modifications, including the addition of Page 3‑ 2 specific goals for the
upcoming year. The annual operating budget which is developed must be consistent
with the modified Long Range Plan.
2. Estimate of Program Income. To estimate the amount of program income to
be available for the budget year, the Program Operations Manager is to complete
the BEPB Program Income Estimate schedule. This schedule identifies the amount
of income received from each source during the most recent twelve‑month period,
and provides an opportunity to factor in the effects of any known variables
impacting program income. Significant variables affecting the level of program
income include:
a. The number of vending facilities being operated directly by ORS and the
relative profitability of those facilities.
b. The impact of vendor profitability trends on set‑aside amounts.
c. The extent and costs of equipment repairs required and the associated
impact on the availability of set‑aside income.
3. Estimate of Ordinary Program Expenses. To estimate the ordinary expenses
required for the program in the budget year, the Fiscal Operations Manager is to
complete a separate BEPB Program Expense Estimate for Federal funds and for
Program Income funds. These schedules identify actual expenditures by type for
the most recently completed budget year, such as: Page 3‑3
‑‑equipment replacement and expansion
‑‑equipment repairs and maintenance
‑‑equipment moving and storage
‑‑remodeling or renovation of current facilities, and
‑‑program administration and management services, including costs for
outside accounting services, expenses related to the Illinois Committee of Blind
Vendors, and training costs.
These schedules also factor in adjustments to these actual expenditure
amounts. These adjustments can be based on activity to date in the current
budget year or on other known factors having an effect on budget year expenses.
These factors might include:
a. Increases in fees required to obtain outside accounting services under
the program.
b. Known increases in equipment costs for certain equipment items.
c. The level of remodeling or renovation required under the program.
4. Estimate of Program Growth. To estimate expenses required due to planned
program growth, the Program Operations Manager completes the BEPB New
Initiatives Estimate. This schedule estimates costs associated with program
growth planned for the budget year. Included in these estimates are: Page 3‑4
a. Costs of equipment to be purchased for the new facilities.
b. Costs of major remodeling, renovation or construction costs associated
with new facilities.
c. Estimated lease costs to be borne by ORS during the development stage of
a new vending facility.
d. Assumptions regarding the schedule by which any new facilities will be
opened. e. Other anticipated costs reasonably associated with new facility
expansion.
5. Additional Input from the Illinois Committee of Blind Vendors (ICBV).
After income, ordinary expenses related to facility operations and program
administration and management, and expenses for growth have been estimated, the
BEPB Administrator is to obtain input from the ICBV related to these
projections. As part of this process, the BEPB Administrator is to solicit
information from the ICBV regarding additional budget initiatives to the extent
funds estimated to be available are not fully required for the ordinary expenses
and growth of the program.
‑‑3.2.2 BUDGET PREPARATION PHASE A. The BEPB Administrator is to
prepare a formal operating budget based on the information and input gathered
during the preliminary planning phase. This budget is prepared using BEPB Annual
Operating Budget forms. Page 3‑5
1. BEPB Operating Budget for Federal Funds. This form identifies operating
budget expenses during the fiscal year which will be paid from Federal funds.
2. BEPB Operating Budget for Program Income Funds. This form identifies
operating budget expenses during the fiscal year which will be paid from program
income funds.
3. BEPB Budget Summary. This form summarizes the income and expense budget
by fund source for the fiscal year.
‑‑3.2.3 BUDGET APPROVAL PHASE
A. Once they are completed, the BEPB Operating Budget forms are to be
submitted by the BEPB Administrator to the Chief, Bureau of Blind Services. The
forms are to be accompanied by an explanatory narrative highlighting significant
budget issues or concerns, including any concerns or issues raised by the
Illinois Committee of Blind Vendors. The Chief, Bureau of Blind Services must
approve the annual BEPB operating budget.
B. Upon approval of the annual BEPB operating budget by the Chief of the
Bureau of Blind Services, the BEPB Administrator is to distribute a copy of the
approved budget to:
1. The Associate Director of the Office of Rehabilitation Services
2. The Illinois Committee of Blind Vendors
3. The accounting firm under contract to ORS to provide accounting services
to the BEPB. Page 3‑6
3.3 BUDGET DEVELOPMENT SCHEDULE
A. The annual operating budget for the BEPB is to be completed according to
the following schedule:
1. Preliminary Planning Phase.
a. March 31: Income, expense and growth estimates completed
b. April 30: Input obtained from the Illinois Committee of Blind Vendors
c. May 31: BEPB Operating Budget forms submitted for approval to the Chief,
Bureau of Blind Services
d. June 30: BEPB operating budget approved, subject to the appropriations
process Final operating budget for the fiscal year distributed.
3.4 BUDGET MONITORING
A. The BEPB Administrator is responsible for reviewing a comparison,
prepared by the Fiscal Operations Manager, of actual operations to the projected
operating budget at least once monthly. Identified budget issues or concerns
including recommendations to make budget adjustments are to be documented and
presented by the BEPB Administrator to the Chief, Bureau of Blind Services
for resolution. Return to TOC
SECTION
FOUR‑‑
BEPB FINANCIAL MANAGEMENT AND ACCOUNTING
4.1 OVERVIEW
A. This section describes financial management and accounting procedures
related to the BEPB. Sections 4.2 through 4.5 provide information on accounting
functions associated with BEPB Vendors and describe related procedures. Sections
4.6 through 4.10 provide information on program wide financial and accounting
functions for the funds accounted for through the subaccounts described
in Section Two of the Manual, and describe related procedures.
4.2 VENDOR ACCOUNTING SERVICES
A. Overview. Accounting for vending facility operations under the BEPB is
handled in one of two ways:
1. By Vendors who assume responsibility for their own accounting (referred
to as "independent accounting").
2. By Vendors who are not ready to assume responsibility for their own
accounting and who instead have their accounting services provided by an
accounting firm under contract to ORS. Accounting services for facilities being
operated by ORS also are provided by the accounting firm under contract to ORS.
Under either arrangement, Vendors are required to provide ORS with
information on facility profits and losses on a monthly basis. Vendor profits
for the month are used to determine amounts due to ORS from the vendor for
set‑aside, for repayment of initial inventory and working capital advances. Page
4‑2
B. Regardless of the accounting arrangement, ORS must track and accumulate
the following financial information for each vending facility:
‑‑gross revenue
‑‑cost of goods sold
‑‑costs of labor and other operating expenses
‑‑net profits
‑‑equipment repair rebate amounts
‑‑set‑aside amounts paid
‑‑amounts paid by Vendors for repayment of the costs of the facility's
initial inventory of stock or for any working capital advances, and
‑‑balances due from Vendors for repayment of initial stock or working
capital advances.
C. ORS has elected to contract much of the responsibility for processing
and tracking vendor information to an accounting firm. Key ongoing services
provided by the accounting firm include:
‑‑processing monthly report information and payments provided by all
Vendors and for facilities operated by ORS
‑‑maintaining accounting information regarding all vending facility
operations on the firm's accounting system
‑‑preparing monthly profit and loss statements and settlement summaries for
Vendors who utilize the services of the accounting firm under contract to ORS
and for facilities operated by ORS
‑‑spot checking invoices received from Vendors who elect to utilize the
accounting firm under contract to ORS to verify correctness and cost allow
ability
‑‑processing semi‑monthly payrolls, preparing quarterly payroll tax
returns, and preparing monthly sales tax returns for Vendors who utilize the
accounting firm under contract to ORS Page 4‑3
‑‑preparing one monthly sales tax return and one quarterly payroll tax
return for all facilities operated by ORS
‑‑working with ORS business consultants and Vendors to resolve problems
and discrepancies related to vendor accounting
‑‑preparing required Federal and State forms to assist the BEPB in
establishing new facilities
‑‑providing to ORS each month one check totaling all vendor payments for
set‑aside, initial inventory, and working capital, and
‑‑preparing Summary of Facilities Monthly Reports and monthly
reports on balances due to ORS from Vendors.
4.3 PROCESSING ACTIVITY FOR VENDORS ON INDEPENDENT ACCOUNTING
A. The accounting firm under contract to ORS performs the following
functions for each vendor on independent accounting:
1. Receive the profit and loss statement, settlement summary and check(s)
from the independent accounting vendor by the 20th of each month for the prior
month's business activity. (Vendors who do not utilize the services of a CPA do
not submit a settlement summary). If these materials have not been received by
the accounting firm by the 20th of the month, the accounting firm is to contact
the vendor's business counselor and the Program Operations Manager.
2. Log in checks and deposit them within 48 hours into the BEPB Fund
Account maintained by the accounting firm exclusively for the BEPB Page 4‑4
3. Recompute gross set‑aside amounts to verify correctness and assure the
total amount of the business check or money order submitted by each vendor is a
correct total of the individual payment amounts listed on the vendor's
settlement summary.
4. Provide written notice to the vendor's business counselor and the
Program Operations Manager of any discrepancy in the check amount. This written
notice will indicate adjustments necessary on the settlement summary for the
next month's report.
5. Update the accounting firm's accounting system information to reflect
set‑aside, initial stock, working capital, and any other miscellaneous payment
amounts for the month. Any repair rebate amounts due to the vendor are also
entered into the accounting system.
4.4 PROCESSING ACTIVITY FOR FACILITIES OPERATED BY ORS AND FOR VENDORS UTILIZING
ACCOUNTING SERVICES PROVIDED BY ORS THROUGH A CONTRACT WITH AN ACCOUNTING FIRM
A. The accounting firm under contract to ORS provides the following
functions for facilities operated by ORS and for Vendors electing to utilize the
services of the accounting firm under contract to ORS.
1. For vending facilities with payrolls:
a. Receive time sheets and payments to cover payroll obligations within 4
working days after the end of each semi‑monthly pay period.
b. Process semi‑monthly payrolls within 4 working days after the day on
which payroll time sheets and payments are received from Vendors. Page 4‑5
c. Prepare one quarterly payroll return for each vendor and one return for
all ORS‑operated facilities. For each return prepared for a vendor, provide the
payment check drawn on the BEPB Agency Account, the original return, and one
copy of the return to the vendor. For each return prepared for ORS‑operated
facilities, provide the payment check drawn on the ORS/BEPB Account,
the original return, and one copy of the return to the BEPB Administrator.
2. Receive monthly reports, supporting invoices, Daily Expense Journals,
Equipment Repair Rebate Forms and checks from Vendors and ORS‑operated
facilities. Vendors are required to mail these materials to the accounting firm
for receipt within 5 working days after the end of each month. If these
materials have not been received by the 5th working day after the end of the
month, the accounting firm is to contact the vendor's business counselor and the
Program Operations Manager.
3. Log in checks and deposit them within 48 hours. Checks received from
Vendors utilizing the services of the accounting firm under contract to ORS are
deposited into the BEPB Agency Account. Checks received from ORS‑operated
facilities are deposited into the ORS/BEPB Account.
4. Spot check invoices and Equipment Repair Rebate Forms submitted by
Vendors and check 100 percent of invoices and rebate forms submitted by
ORS‑operated facilities to verify correctness and to assure that the costs
incurred are allowable under the BEPB.
5. Separate facility business expenses by account types. Page 4‑6
6. Contact the vendor or appropriate business counselor to resolve any
problems or discrepancies identified.
7. Post information from the monthly reports on sales, expenses and cash to
the accounting system.
8. Prepare a profit and loss statement and settlement summary for each
facility and provide each to the following individuals within 10 working days
after the monthly report for the facility has been received:
‑‑the vendor
‑‑the vendor's business counselor, and
‑‑the BEPB Administrator.
9. Prepare monthly returns for any sales tax due from Vendors and
ORS‑operated facilities. For each return prepared for a vendor, provide the
payment check drawn on the BEPB Agency Account, the original return, and one
copy of the return to the vendor. For each return prepared for ORS‑operated
facilities, provide the payment check drawn on the ORS/BEPB Account, the
original return, and one copy of the return to the BEPB.
10. Update accounting system information to reflect set‑aside, initial
stock, working capital, and other miscellaneous payment amounts for the month.
Repair rebate amounts for the month are also entered into the accounting
system.
11. Prepare and transmit a check drawn on the BEPB Agency Account to each
vendor for any remaining amount (net profits, less set‑aside, initial stock,
working capital, vendor medical insurance, and any other miscellaneous payment
amounts) received from the vendor. Net profits for ORS‑operated facilities
are handled as described in Section
4.7.2. C & D. Page 4‑7
4.5
MONTH END PROCESSING ACTIVITY
A. The accounting firm under contract to ORS performs the following
functions at the end of each month.
1. Prepares a check payable to the BEPB Fund Account from the BEPB Agency
Account for the total of all set‑aside, initial stock, and working capital
payments received from Vendors utilizing the services of the accounting firm.
2. Prepares a check payable to the BEPB Fund Account from the ORS/BEPB
Account for the total of all set‑aside payments received from ORS‑operated
facilities.
3. Prepares a check payable to ORS from the BEPB Fund Account for the
amounts paid by Vendors and ORS‑operated facilities for set‑aside, inventory
purchase or repayment of working capital advances. This check is to be
accompanied by a schedule identifying:
a. the amount paid by each vendor/ORS‑operated facility
b. the purpose for each amount paid by each vendor/ORS‑operated facility
c. amounts paid for each purpose by Vendors on self accounting
d. amounts paid for each purpose by Vendors utilizing accounting services
being provided by the accounting firm under contract to ORS Page 4‑8
e. amounts paid for set‑aside by ORS‑operated facilities, and
f. the total amounts paid by all Vendors and ORS‑operated facilities for
each purpose.
This check is to be provided to ORS by the last working day of the month
following the report month.
4. Prepare a Summary of Facilities Monthly Report for each month. A Summary
of Facilities Monthly Report is to be provided:
a. for Vendors utilizing accounting services provided by the accounting
firm under contract to ORS. This report is to be segregated by rest area vending
facilities and non‑rest area vending facilities.
b. for all ORS‑operated facilities, and
c. for all Vendors, including Vendors on independentaccounting, and
ORS‑operated facilities in total.
These reports are to be provided to ORS by the last working day of the
month following the report month.
5. A report at the end of each month on balances due to ORS from Vendors.
This report is to identify the balance due from each vendor as of the end of the
month for repayment of the costs of initial inventory and working capital
advances. Page 4‑9
This report is to be provided to ORS by the last working day of the month
following the report month.
6. A report at the end of each month on late set‑aside payments due to ORS
from Vendors for the current report month and for prior report months.
This report is to be provided to ORS by the last working day of the month
following the report month.
7. Prepare a monthly report and provide a payment drawn on the BEPB Agency
Account and payable to the provider of vendor medical insurance.
4.6 PROGRAM WIDE ACCOUNTING SERVICES
A. ORS contracts with an accounting firm to provide program‑wide accounting
services and functions. In general, the purpose of these accounting services is
to provide the BEPB with financial information necessary to support program‑wide
decision making.
B. These program wide accounting services are aimed at achieving the
following objectives:
1. to ensure accurate and complete accounting of all transactions occurring
in the Federal and Program Income Fund subaccounts identified in Section Two of
this Manual
2. to provide the BEPB with timely and accurate information related to
subaccount transactions in order to inform and support program‑wide decision
making Page 4‑10
3. to track and provide information on program expenditure activity for
BEPB contracts established to provide goods and services needed under the
program
4. to provide program information sufficient to enable Federal reporting
requirements related to the program to be fulfilled, and
5. to track income and expense information related to the BEPB annual
operating budget, and provide regular and accurate information to the BEPB
Administrator throughout the year concerning the status of the BEPB operating
budget.
C. The accounting firm under contract to ORS is responsible for ensuring
that accounting records and processes are organized so that these objectives are
met.
D. Having an accounting firm under contract to ORS provide program wide
accounting services requires the accounting firm to have direct access to funds
needed for various program purposes. ORS will provide sufficient funds to the
accounting firm to maintain fund balances for the BEPB.
4.7 ACCOUNTING PROCEDURES FOR BEPB INCOME
‑‑4.7.1 FEDERAL FUNDS
A. The BEPB Administrator is to provide written notification to the
accounting firm of the amount of Federal Vocational Rehabilitation funds ORS
will allocate to the BEPB for each budget year once that determination has been
made within ORS. This written notification can be provided in conjunction with,
or as a part of, the approved BEPB annual operating budget as described in
Section 3.2.3(B). Page 4‑11
B. Upon receipt of written notification from the BEPB Administrator
concerning the allocation of Federal funds, the accounting firm will enter this
amount in the accounting system as the available budget amount for the budget
period to which the funds are allocated.
C. The BEPB Administrator must also provide written notification to the
accounting firm of any changes in the amount of Federal funds previously
allocated to the BEPB. The accounting firm will revise the budgeted amounts
entered into the accounting system based on written notification received by the
BEPB Administrator.
4.7.2 PROGRAM INCOME FUNDS
A. Transfer of Payments Received by the BEPB to the Accounting Firm Under
Contract to ORS. The following procedures apply to receipt of any payments
received directly by the BEPB which consist primarily of payments received from
non‑BEPB Vendors operating vending facilities on Federal property. Although BEPB
Vendors are required to submit their payments directly to the accounting
firm under contract to ORS, the following procedures also apply to any vendor
payments which may be received by the BEPB.
1. The BEPB Secretary must record the payer, check number and amount on a
BEPB cash receipts log.
2. The BEPB Secretary forwards the funds received to the accounting firm.
3. The accounting firm records the payer and amount on the accounting
system, and deposits checks received. Page 4‑12
B. Federal Vending Reserve. The following procedures apply to receipt of
funds from non‑BEPB Vendors operating vending facilities on Federal property.
1. The accounting firm records the payer and amount on the accounting
system, and deposits commissions received into the BEPB Fund Account on the day
the check is received.
2. Income received during the month from non‑BEPB Vendors operating vending
facilities on Federal property is entered into the accounting system maintained
by the accounting firm as being received into the Federal Vending Reserve Fund.
C. Program Development and Expansion Fund. The following procedures apply
to the program income generated from profits of ORS‑run facilities other than
rest area vending facilities, and to transfers made into the Program Development
and Expansion fund.
1. Income from ORS‑operated Facilities.
a. From information included on the Summary of Facilities Monthly Reports
as described in Section 4.5(A)(4), the accounting firm identifies net profits
from all vending facilities operated by ORS other than rest area vending
facilities.
b. The net profits identified through a. above are transferred from the
ORS/BEPB Account to the BEPB Fund Account whenever the ORS/BEPB Account balance
exceeds $10,000. Page 4‑13
c. The accounting firm prepares and submits a check in accordance with
Section 4.7.3 for any net profits of ORS‑run, non‑rest area facilities for the
month transferred into the BEPB Fund Account.
d. This amount is entered into the accounting system as being received into
the Program Development and Expansion Fund.
2. Transfers from Purchase of Stock Fund. Balances in the Purchase of Stock
fund in excess of $75,000 are to be transferred to the Program Development and
Expansion Fund according to the following procedures:
a. The accounting firm is to provide written notification to the BEPB
Administrator of the need of transfers of any excess fund balance identified at
the end of each calendar quarter.
b. The Fiscal Operations Manager will confirm the transfer of funds by
providing the accounting firm a copy of the transfer request as approved by the
Office of the Comptroller.
c. The accounting firm enters information into the accounting system to
update the fund balance in the ORS Account of both the Program Development and
Expansion Fund and the Purchase of Stock fund.
D. Rest Area
Development Fund. The following accounting procedures apply to program income
deposited into the Rest Area Development Fund. Page 4‑14
1. Income from ORS‑Operated Rest Areas.
a. From information included on the Summary of Facilities Monthly Reports
as described in Section 4.5(A)(4), the accounting firm identifies net profits
from all rest area vending facilities operated by ORS.
b. The net profits identified through a. above are transferred from the ORS/BEPB
Agency Account to the BEPB Fund Account whenever the ORS/BEPB Agency Account
balance exceeds $10,000.
c. The accounting firm prepares a schedule of net profits from ORS‑Operated
rest area vending facilities and prepares and submits a check to ORS in
accordance with Section 4.7.3 whenever net profits are transferred into the BEPB
Fund Account.
d. This amount is entered into the accounting system as being received into
the Rest Area Development Fund.
2. Income from Newspaper and Other Commissions.
a. Income from commissions on newspapers and other publications is paid by
suppliers to the accounting firm under contract to ORS. Page 4‑15
b. The accounting firm records the payer and amount on the accounting
system, and deposits commissions received into the BEPB Fund Account on the day
they are received.
c. At the end of each month, the accounting firm determines the total
amount of income from newspapers and other commissions received during the
month, and prepares and submits a check to ORS in accordance with Section 4.7.3.
d. Income from newspaper and other commissions received during the month is
entered into the accounting system maintained by the accounting firm as being
received into the Rest Area Development Fund.
E. Set‑Aside Fund. The following procedures apply to program income
received into the Set‑Aside Fund.
1. From information
included on the Summary of Facilities Monthly Reports as described in Section
4.5(A)(4), the accounting firm under contract to ORS identifies set‑aside
amounts paid by Vendors and ORS‑operated facilities during the month.
2. The accounting firm prepares a schedule of the set‑aside amounts paid by
Vendors and ORS‑operated facilities, prepares a schedule of late set‑aside
payments due from Vendors for the current report month and for prior report
months, and prepares and submits a check to ORS in accordance with Section
4.7.3. Page 4‑16
3. This amount is entered into the accounting system as being received into
the Set‑Aside Fund.
4. The Program Operations Manager is responsible for coordinating all
efforts necessary to assure that monthly set‑aside payments due from Vendors are
received.
F. Purchase of Stock Fund. The following procedures apply to program income
received into the Purchase of Stock Fund.
1. From information included on the Summary of Facilities Monthly Reports
as described in Section 4.5(A)(4), the accounting firm under contract to ORS
identifies amounts paid by Vendors during the month for purchase of stock and
repayment of working capital advances.
2. The accounting firm prepares a schedule of the amounts paid by Vendors,
prepares a report for each vendor which identifies the balance due for purchase
of stock and working capital advances, and prepares and submits a check to ORS
in accordance with Section 4.7.3.
3. This amount is entered into the accounting firm's accounting system as
being received into the Purchase of Stock Fund.
4. The Program Operations Manager is responsible for coordinating all
efforts necessary to assure that monthly payments due from Vendors for purchase
of stock and working capital advances are received. Page 4‑17
‑‑4.7.3 TRANSMITTING PROGRAM INCOME TO ORS
A. The accounting firm under contract to ORS is to prepare and submit a
check on a monthly basis to the BEPB Administrator, who will review the check
and supporting schedule described in 4.7.3(B) for accuracy, and then forward the
check and supporting schedule the same day for processing. The check will be
transmitted to ORS by the last working day of the month following the report
month. The amount of this check will be determined by the amounts paid to the
accounting firm for:
1. Net profits from ORS‑operated vending facilities received into the
Program Development and Expansion Fund under Section 4.7.2 (C)(1).
2. Net profits from ORS‑operated vending facilities in rest areas received
into the Rest Area Development Fund under Section 4.7.2 (D)(1).
3. Income from newspaper and other commissions received into the Rest Area
Development Fund under 4.7.2(D)(2).
4. Set‑aside amounts paid by Vendors and ORS‑operated facilities under
4.7.2(E)(1).
5. Amounts received into the Purchase of Stock Fund under4.7.2 (F)(1).
B. This check is to be accompanied by a detailed schedule breaking out the
total amount of the check for the month according to each of the purposes
identified in (A) above. Page 4‑18
C. Upon receipt of the check and detailed schedule from the BEPB
Administrator, funds are deposited with the State Treasurer, and a C‑64, Receipt
Deposit Transmittal Form is prepared to reflect deposited amounts on records
maintained by the Office of the Comptroller.
D. The accounting firm assures that checks provided to the BEPB are
deposited with the State Treasurer when conducting monthly bank reconciliations
for the BEPB Fund Account. Any issues identified by the accounting firm are to
be discussed with BEPB management.
4.8 ACCOUNTING PROCEDURES FOR BEPB EXPENDITURES
‑‑4.8.1 EXPENDITURES UNDER CONTRACTS
A. Payment Procedures. Most expenditures under the BEPB are made as a
result of contracts for the purchase of goods and services needed in the
program. The following procedures apply for contract expenditures.
1. The Fiscal Operations Manager is to provide to the accounting firm under
contract to ORS a copy of the initial contract obligation document (C‑23) for
each contract entered into under the BEPB program. The Fiscal Operations Manager
must also provide a copy of any amended contract obligation document if
the original contract obligation document is subsequently amended.
2. Upon receipt of each original or amended contract document, the
accounting firm enters information from the contract into the Page 4‑19
accounting system. The information to be entered is to enable the accounting
firm to establish a separate contract maximum for the expenditures to be made
under each contract. This information includes:
a. the name of the contractor and a contract number
b. the maximum amount payable for goods and services under the contract
c. the State and Federal fiscal years to which the contract applies, and
d. the specific subaccount code as identified in Section Two to which
contract expenditures are to be applied.
3. The Fiscal Operations Manager is to provide the accounting firm with a
copy of each Invoice‑Voucher (C‑13) approved for payment in accordance with the
procedures described in Section 4.8.4. Each Invoice‑Voucher provided to the
accounting firm shall specify:
a. the contract number under which the Invoice‑Voucher originated, if the
Invoice‑Voucher originated under a contract
b. the State and Federal fiscal year to which the amount of the
Invoice‑Voucher is to be applied, and
c. the specific subaccount code to which the amount of the Invoice‑Voucher
is to be applied. Page 4‑20
4. Upon receipt of each Invoice‑Voucher, the accounting firm enters
information from the Invoice‑Voucher into the accounting system as an account
payable, and maintains the copy of the Invoice‑Voucher in a pending file.
5. The Office of Contract Administration‑‑Data Analysis Section will
provide the accounting firm with a list of vouchers paid by the Office of the
Comptroller each month.
6. The accounting firm verifies the amount paid by the Comptroller with the
amount of the Invoice‑Voucher maintained in the pending file, resolves any
discrepancies, relieves the account payable, and makes any other necessary
adjustments to the information entered on the accounting system.
7. The accounting firm provides each month to the BEPB a copy of the
reconciliation, which includes the beginning balance of outstanding
invoice‑vouchers recorded as accounts payable, any additions and deletions to
this balance, and the resulting ending balance.
‑‑4.8.2 EXPENDITURES NOT UNDER CONTRACTS
A. Payment Procedures. Some BEPB expenditures are not made pursuant to a
specific contract instrument. Examples are bonus payments to Vendors made
annually with funds deposited into the Federal Vending Reserve Fund, and goods
and services needed under the program which cost less than $5,000. The following
procedures apply to BEPB expenditures which do not occur as a result of
a contract obligation filed with the Office of the Comptroller utilizing a
Contract Obligation Document (C‑23). Page 4‑21
1. The BEPB Administrator reviews information prepared by the Fiscal
Operations Manager, signs off on the expenditure and authorizes the preparation
of an Invoice‑Voucher (C‑13).
2. Once the Invoice‑Voucher has been prepared, the Fiscal Operations
Manager codes the Invoice‑Voucher to reflect the following:
a. the State and Federal fiscal year to which the expenditure applies, and
b. the specific subaccount code as described in Section Two to which the
amount of the expenditure is to be applied.
3. The Fiscal Operations Manager is to provide the accounting firm with a
copy of each Invoice‑Voucher (C‑13) approved for payment in accordance with the
procedures described in Section 4.8.4.
4. Upon receipt of each Invoice‑Voucher, the accounting firm enters
information from the Invoice‑Voucher into the accounting system, and maintains a
copy of the Invoice‑Voucher in a pending file.
5. The Fiscal Operations Manager will ensure that the accounting firm is
provided with either a monthly Voucher Report by SUBA or a written confirmation
when each Invoice‑Voucher has been paid by the Office of the Comptroller.
6. The accounting firm verifies the amount paid by the Comptroller with the
amount of the Invoice‑Voucher maintained in the pending file, resolves any
discrepancies and makes any necessary adjustments to the information entered on
the accounting system. Page 4‑22
‑‑4.8.3 EXPENDITURES MADE BY THE ACCOUNTING FIRM UNDER CONTRACT TO ORS
A. Circumstances Requiring Direct Payment by the Accounting Firm Under
Contract to ORS. Certain BEPB expenses may be paid directly by the accounting
firm. When authorized in writing by the BEPB Administrator, the accounting firm
is approved to make the following types of expenditures:
1. Payments to the
interim manager in charge of opening a new facility for initial working capital
to start up a new facility. These payments are always charged to the Purchase of
Stock Fund.
2. Direct payments for costs of facilities directly operated by ORS that
may be operating at a loss.
3. Settlement payments to Vendors for the value of inventory owned and due
to them when they leave the BEPB, or transfer to a new facility where the
inventory value is less than the amount the vendor owns at the facility from
which the vendor is transferring. These payments are always charged to the
Purchase of Stock Fund.
4. Other payments authorized in writing by the BEPB Administrator.
B. Payment Procedures. The following procedures apply to payments made by
the accounting firm under contract to ORS.
1. Based on information prepared by the Fiscal Operations Manager, the BEPB
Administrator provides written authorization to the accounting firm to directly
pay for specific program expenses. This authorization must include: Page 4‑23
a. the name of the person, organization or company to whom payment is to be
made
b. a brief description of the purpose for the payment
c. an invoice, if one exists for the payment to be made
d. identification of State and Federal fiscal year to which the payment is
to be applied, and
e. identification of the specific subaccount as described in Section Two to
which the payment is to be applied.
2. Upon receipt of written authorization from the BEPB Administrator, the
accounting firm is to prepare a check payable in accordance with the
instructions included in the written authorization. This check is to be drawn
from the appropriate BEPB Fund Account maintained by the accounting firm on
behalf of ORS.
3. The accounting firm enters information on the payment into the
accounting system. The payment is recorded as a receivable amount due to the
BEPB Fund Account.
4. In accordance with the Invoice‑Voucher procedures set forth in Section
4.8.4, the BEPB processes an Invoice‑Voucher (C‑13) to reimburse the BEPB Fund
Account for the authorized expenditure. Page 4‑24
‑‑4.8.4 INVOICE‑VOUCHER PROCESSING PROCEDURES
A. The following procedures are to be followed for all Invoice‑Vouchers
(C‑13) for equipment purchases processed under the BEPB program.
1. The Equipment Specialist:
a. reviews all invoices, billing statements or similar documents received
by the BEPB for appropriateness.
b. authorizes the preparation of an Invoice‑Voucher (C‑13) for the approved
invoice.
c. properly codes the Invoice‑Voucher.
d. determines the State and Federal fiscal year to which the invoice
applies and codes the Invoice‑Voucher accordingly.
e. determines the specific subaccount to which the Invoice‑Voucher applies
and codes it accordingly. In determining the subaccount code to be assigned to
the Invoice‑Voucher, the Equipment Specialist shall take into account allowable
uses for each subaccount as described in Section 2.2 and 2.3, as well as
the following:
1. the nature of the expense for which the Invoice‑Voucher has been
prepared
2. whether the expense is primarily to maintain a current vending facility,
to expand a current vending facility or related to the opening of a new facility
3. the amount of the expense Page 4‑25
4. the balances available in the subaccounts from which the expenditure may
be made
5. forwards the completed Invoice‑Voucher to the Fiscal Operations Manager
for review and approval and provides a copy of the approved Invoice‑Voucher, to
the accounting firm
2. The Fiscal Operations Manager forwards the approved Invoice voucher to
the Program Administrator for sign‑off.
4.9 PROCEDURES REGARDING CASH RECONCILIATIONS
‑‑4.9.1 PERFORMANCE OF MONTHLY CASH RECONCILIATIONS
A. The accounting firm under contract to ORS must perform monthly cash
reconciliations to reconcile the balance amounts of the BEPB fund accounts to
the actual cash amounts held in the three checking accounts maintained by the
accounting firm for the BEPB. These checking accounts include:
1. BEPB Agency Account. This account is used to receive and disburse funds
for Vendors who elect to utilize the services of the accounting firm under
contract to ORS.
2. ORS/BEPB Account. This account is used to receive and disburse funds for
ORS‑operated facilities.
3. BEPB Fund Account. This account is used to receive funds into each of
the BEPB fund accounts from Vendors on independent accounting, Page 4‑26 the
BEPB Agency Account, the ORS/BEPB Account, and from outside sources (e.g., non‑BEPB
Vendors operating on Federal property). This account is also used to provide
monthly payments to the BEPB for amounts received from Vendors and ORS‑operated
facilities.
B. The monthly cash reconciliation process consists of two steps:
1. Preparing Bank Reconciliations. The accounting firm prepares a bank
reconciliation for each of the three checking accounts to assure that the
balance and activity recorded in the check register for each account matches the
balance and activity recorded on the bank statement received for each account.
Any difference in the balance recorded in the check register and the balance
shown on the bank statement (after adjusting for any activity in the account
since the date the bank statement was generated) must be identified and resolved
to balance the account. The individual at the accounting firm who prepares the
cash reconciliation for a specific account must be someone other than the
individual who records transactions in the check register for that account.
2. Completing the Monthly Cash Reconciliation for BEPB Funds Spreadsheet.
After preparing the monthly bank reconciliations, the accounting firm prepares
the Monthly Cash Reconciliation for BEPB Funds spreadsheet to allocate the
amounts held by the accounting firm in the three checking accounts among each of
the BEPB fund accounts. Page 4‑27
C. The accounting firm is to complete the monthly cash reconciliation
process and provide a copy of the Monthly Cash Reconciliation for BEPB Funds
spreadsheet and supporting documents by the last working day of each month
following the report month. The supporting documents must enable the Fiscal
Operations Manager to verify the correctness of the cash reconciliation.
4.10
FINANCIAL REPORTING
‑‑4.10.1 OVERVIEW
A. The accounting firm under contract to ORS is responsible for providing
reports to the BEPB Administrator to meet the Administrator's program management
needs. These needs are met through regular, quarterly and annual reports on
program activity as well as through special reports the Administrator may need
periodically or from time to time.
‑‑4.10.2 REGULAR REPORTS
A. Quarterly Reports. The accounting firm under contract toORS is to
provide the following reports to the BEPB Administrator on a quarterly basis.
1. Financial Summary by Subaccount. This report is to provide a statement
of income, expense and available balance for the quarter and for the budget year
to date for the Federal subaccount funds and for each of the Program Income
Subaccount funds identified in Section Two. Page 4‑28
2. Budget Versus Actual Report. This report is to provide a summary of the
status of actual income and expenses compared to budgeted income and expenses
for the quarter and for the budget period to date.
3. Federal Funds Status Report. This report is to provide a summary of
expenses paid with Federal funds by Federal fiscal year for the report quarter
and for the budget period to date, including a current balance of Federal funds
available to be spent during the budget period.
4. Contract Status Report. This report is to provide a summary of
expenditures and remaining balances for each BEPB contract for the report
quarter and for the budget year to date.
B. Annual Reports. The accounting firm under contract to ORS is to provide
the following reports to the BEPB Administrator on an annual basis.
1. Modified Accrual Basis Financial Statement. This financial statement is
to be prepared for the BEPB on a Federal fiscal year basis and provided to the
BEPB Administrator. The following information is needed to prepare the financial
statement:
‑‑year‑to‑date revenue and expense information from the June profit and
loss statements prepared by the accounting firm for all ORS‑operated facilities
‑‑information from the BEPB on the value of commodities inventories at
Sept. 30th for all ORS‑operated facilities
‑‑information from the BEPB on accounts payable amounts as of Sept. 30th
for all ORS‑operated facilities and for the program, and
‑‑accounts receivable amounts as of Sept. 30th for all Vendors for initial
stock repayment and working capital advances. Page 4‑29
‑‑4.10.3 FEDERAL REPORTING
A. General Requirements. All State agencies which administer the
Randolph‑Sheppard Vending Facility Program for the Blind are required each year
to submit a completed Form RSA‑15, Report of Vending Facility Program for the
Blind. The Illinois Vending Facility Program for the Blind is to submit a
completed RSA‑15 by November 30th of each year, which is 60 days following the
close of the Federal fiscal year reporting period.
B. Completion of the RSA‑15. The BEPB Administrator is responsible for
coordinating efforts to complete the RSA‑15 in a timely and accurate manner.
Responsibility for completing specific sections of the RSA‑15 is described
below.
1. Sections Completed by the Accounting Firm Under Contract to ORS. The
sections of the RSA‑15 which are to be completed include:
a. Section I, Lines 1‑11 on earnings and employment, which is computed from
the monthly profit and loss statements for all Vendors and facilities operated
by ORS. The total cost of sales which is listed on Line 2 is to be adjusted
based on commodities inventory information provided by the business consultants
for all vending facilities.
b. Sections III A & III B on program expenditures by type of facility and
by source of funds, which is computed from:
(1) program expenditures paid through the Comptroller's Office, plus Page
4‑30
(2) program expenditures authorized by ORS (e.g., initial stock, repair
rebates) and paid by the accounting firm through the BEPB fund account.
2. Sections Completed by the Program Staff. The sections of the RSA‑15
which are to be completed include:
a. Section I, Lines 12‑15 regarding employment at vending facilities.
b. Section II regarding facilities and Vendors on Federal property, public
property, and private property.
c. Section IV regarding set‑aside account balances and Federal and
non‑Federal vending machine income account balances. This information is
generated from totals provided by the accounting firm.
d. Section V regarding the assignment and distribution of vending machine
income. This information is generated from totals provided by the accounting
firm.
e. Section VI regarding the number of potential vending facility sites
surveyed.
f. Section VII regarding vendor training.
g. Section VIII on the State and nominee agency person years assigned to
the Vending Facility Program for the Blind. Page 4‑31
h. Section IX regarding vending locations under the Interstate Highway
Program.
Completed sections of the RSA‑15 are to be provided to the Fiscal
Operations Manager by no later than October 31st of each year for the prior
fiscal year ending September 30th. The Fiscal Operations Manager is to assemble
the completed sections of the RSA‑15 and provide the completed RSA‑15 to the
BEPB Administrator for review.
C. Review of the RSA‑15 for Accuracy. The BEPB Administrator and the Chief,
Bureau of Blind Services are responsible for reviewing the completed RSA‑15 to
assure that the information reported accurately reflects program operations
during the fiscal year reported.
D. Approval of the RSA‑15. After the RSA‑15 has been reviewed for accuracy
and any necessary changes have been made, the BEPB Administrator must provide
the completed RSA‑15 to the ORS Director for review and signature by no later
than November 15th of each year.
E. Submission of the RSA‑15. The BEPB Administrator is responsible for
submitting (via certified mail) a completed RSA‑15 by November 30th of each year
to the following:
a. the BEPB's RSA Regional Commissioner
b. Division for Blind and Visually Impaired
Rehabilitation Services Administration
Mary E. Switzer Building
330 C Street, S.W., Room 3230
Washington, DC 20202‑2738
A copy of the RSA‑15 is to be kept in an RSA‑15 file maintained by the
Office Manager. Page 4‑32
‑‑4.10.4 SPECIAL AND DEMAND REPORTS
A. At times during the year, the BEPB Administrator may require financial
information about the program more frequently than is available through the
reports identified in Section 4.10.2. The accounting firm is to structure all
reports so that they are available to the Administrator on demand should the
need arise. If the need arises, the BEPB Administrator is to contact
the accounting firm to identify the information needed. Once contacted, the
accounting firm must have the capacity to provide the information within two
working days.
B. The BEPB Administrator may also sometimes require financial information
about the program not available through the standard reports identified in
Section 4.10.2. When this need occurs, the BEPB Administrator is to contact the
accounting firm who shall provide the information requested at the earliest
possible date, given the nature of the information requested. Return
to TOC
SECTION
FIVE‑‑
BEPB CONTRACT AND PROCUREMENT PROCEDURES
5.1 INTRODUCTION
A. Section Five of this Manual describes requirements for purchasing goods
and services needed for the BEPB program, including requirements regarding
contracts with providers of these goods and services. It provides guidance to
BEPB administrative staff on selecting an appropriate method of procurement,
describes the procedures required for using each method, and outlines required
documentation for procurement efforts, including justification required for
purchases made without competition.
5.2 SUMMARY OF BEPB PURCHASING REQUIREMENTS
A. The BEPB program must comply with purchasing requirements that apply to
all State of Illinois government entities to assure that purchases of goods and
services needed by the program are both reasonable and economical. These
purchasing requirements are contained in:
1. Illinois Procurement Code (30 ILCS 500 and 525)
2. Illinois Department of Central Management Services, Standard Procurement
Rules, (44 Illinois Register, Subtitle A, Chapter 1, Part 1)
3. Illinois Department of Human Services, Office of
Contract Administration, Policy and Procedure Manual Procurement Code (the DHS
Procurement Manual) Page 5‑2
B. BEPB administrative staff are responsible for coordinating all purchases
of supplies and services necessary for effective operation of vendor
facilities. These purchases are primarily for supplies, and repair
and maintenance services. Purchases of supplies and services must be made
pursuant to a competitive source selection process, unless one of the following
exceptions has been approved in accordance with the DHS Procurement Manual:
1. Purchases of Professional and Artistic Services costing less than
$20,000 that are non‑renewable and have a term of one year or less.
2. Small purchases (of $25,000 or less) of services (other than
Professional Artistic Services) from a single vendor in a single fiscal year of
$25,000 or less.
3. Small purchases (of $10,000 or less) of supplies from a single vendor in
a single fiscal year.
4. Sole Economically Feasible Source procurements for services over $25,000
when the service is available from only a single supplier or only one supplier
is deemed economically feasible.
5. Emergency procurements for services over $25,000.
C. The Department of Central Management Services (CMS) is the only agency
authorized to purchase supplies exceeding $10,000 from a single vendor. In
addition, only CMS is authorized to purchase: Page 5‑3
1. paper, stationery, and envelopes;
2. postage stamps;
3. vehicles and vehicle related services;
4. utilities for state‑managed property;
5. telecommunications equipment and software on the network side of the
point of presence;
6. electronic data processing services exceeding $10,000 (or $20,000 if
Professional and Artistic);
7. telecommunications services; and
8. real estate leases.
D. Regardless of whether the procurement is pursuant to a competitive
process or one of the exceptions identified in Section 5.2. B, written contracts
or agreements are required for the following:
1. All Professional and Artistic Services of $5,000 or more.
2. Other services of $10,000 or more.
As long as supplies purchased from a single vendor do not exceed $10,000 in
a single fiscal year, a contract is not required.
E. All purchases in the BEPB program will be procured consistent with the
Procurement Code Policy and Procedures Manual issued by the DHS Office of
Contract Administration.
5.3 PLANNING PURCHASES OF GOODS AND SERVICES Page 5‑4
A. In general, annual contracts for the purchase of goods and services
needed under the BEPB program are required to provide a ready capacity to meet
needs as they arise during the year. Although the specific items and services to
be needed during the year are difficult to identify in advance, the types of
needs that will arise can be anticipated and planned for in advance. In limited
circumstances, and in accordance with the DHS Procurement Manual, there may be a
determination that a multi‑year contract for a term up to 10 years is in the
best interest of the state. It may be appropriate for BEPB personnel to pursue
approval for a multi‑term contract if:
‑‑the cost and burden of contract solicitation, award and administration of
the procurement is greatly reduced by a multi‑term contract, or
‑‑lower unit prices might result from continuity of production or
performance over a longer period of time.
B. For those needs during the year which can be anticipated, an annual
planning process is required to assure that goods and services needed for the
program are procured in compliance with purchasing requirements, and that
contracts are in place prior to October 1st of each year. The Fiscal Operations
Manager, with direction from the BEPB Administrator, is responsible
for completing these planning activities to assure that
contractual relationships with appropriate providers are established to
meet program needs for goods and services. Generally, the planning activities
require the following steps:
1. Estimating the Amount of Funds Available. The BEPB Administrator is to
estimate the total amount of funds expected to be available for purchases of
goods and services pursuant to developing an annual operating budget for the
BEPB program as described in Section Three. Page 5‑5
2. Determining Needs
a. The Fiscal Operations Manager is responsible for determining program
needs for which a contractual purchasing capacity must be established for the
year. Generally, two types of needs can be anticipated:
(1) equipment needs required to replace vending equipment at existing
facilities, to expand them, or to open new vending facilities
(2) services routinely required to support the program during the year.
b. In determining needs, the Fiscal Operations Manager is to review
historical patterns for both the nature and size of needs that can be
anticipated to occur during the year.
3. Once the planning process has been completed for program needs which can
be expected to occur regularly during the year, the Fiscal Operations Manager,
with direction from the BEPB Administrator, is responsible for determining the
appropriate method of procurement to use for each purchase, and for coordinating
the procurement process.
5.4 OTHER NEEDS
A. The need for goods and services which do not regularly occur and which
cannot always be anticipated in advance also arise during the course of the
year. As with those needs which can be anticipated, these goods and services,
Page 5‑6 too, must be procured in accordance with State requirements. When
unanticipated needs arise, the Fiscal Operations Manager, with direction from
the BEPB Administrator, is responsible for determining the appropriate method of
procurement and for coordinating the procurement process in accordance with
sections 5.5 through 5.7.
5.5 PROCUREMENT PROCEDURES
‑‑5.5.1 SELECTING THE APPROPRIATE METHOD OF PROCUREMENT
A. In general, purchases must be made using a competitive selection process
unless prior approval for an exception is provided in accordance with the DHS
Procurement Manual. The competitive selection process means competitive sealed
bidding unless approval is provided to use competitive sealed proposals. The
following alternatives to competitive procurement all require prior approval:
1. Small purchases of services of $25,000 or less, or supplies of $10,000
or less
2. Professional and Artistic services of less than $20,000
3. Sole source procurement
4. Emergency procurement Page 5‑7
The following table summarizes the procurement method to be used to procure
each category of supplies or services to be purchased:
NOTE: In the chart below, items are arranged as follows: Category of
Purchase: Method of Procurement
Less than $20,000 and term of one year or less: Purchase without
competitive selection, with prior approval in accordance with the DHS
Procurement Manual.
$20,000 or more or any Professional and Artistic services for term of more
than one year: Competitive selection using the prescribed RFP for Professional
and Artistic Services and advertised in accordance with the DHS Procurement
Manual.
OTHER SERVICES
Small purchases of $25,000 or less in single fiscal year: Source selection
to be determined and approved in accordance with the DHS Procurement Manual.
Purchases over $25,000 or any services for term of more than one year:
Competitive selection process using competitive sealed bidding (or competitive
sealed proposals if approved in accordance with the DHS Procurement Manual.)
SUPPLIES Small purchases of $10,000 or less in single fiscal
year: Source selection to be determined and approved in accordance with the DHS
Procurement Manual.
Purchases over $10,000: To be procured only by CMS.
SOLE SOURCE PROCUREMENT
Services over $25,000 that can only be procured economically from one
source: Non‑competitive selection of vendor upon receipt of prior written
approval in accordance with the DHS Procurement Manual.
EMERGENCY PURCHASES
Services over $25,000 that are deemed necessary to address emergency
conditions: Determination by BEPB Administrator that emergency exists, and
identification of process to achieve best possible price on emergency basis.
Page 5‑8
‑‑5.5.2 COMPETITIVE SOURCE SELECTION
A. Circumstances Requiring Competitive Source Selection
All purchases of supplies and services must be made pursuant to a
competitive source selection process, unless an exception has been approved in
accordance with the DHS Procurement Manual. Potential exceptions are described
in Sections 5.5.3; 5.5.4; 5.5.5; and 5.5.6.
B. Competitive Source Selection Procedures
a. Determining Method of Competitive Selection: Competitive sealed bidding
using an Invitation for Bid (IFB) is the required method in competitive
selections, unless approval is received from the SPO to use competitive sealed
proposals using a Request for Proposal (RFP). The competitive sealed proposal
differs from sealed bidding in two ways:
1. It permits discussions with competing offerors and changes in their
proposals‑‑including price; and
2. It allows comparative judgmental evaluations to be made when selecting
among acceptable proposals for award of the contract.
b. Information to Support IFBs or RFPs: Once it is determined whether the
source of selection is to be IFB or RFP, the Fiscal Operations Manager is
responsible for preparing information to support the preparation of the IFB or
RFP. The information, to be submitted using procedures identified in the DHS
Procurement Manual, must include: Page 5‑9
1. A technical description of the goods and/or services to be provided by
the contractor
2. The time frame during which goods and/or services are to be provided
3. The date by which proposals are to be submitted
4. The minimum qualifications required of offerors to provide needed goods
or services
5. Specifications regarding the cost information to be provided; and
6. The criteria to be used to evaluate proposals.
c. Advertising Procurement: All procurements using IFBs or RFPs must be
advertised on the Internet through the Purchase point system. The DHS
Procurement Manual contains specific direction on accessing the Purchase point
system.
d. Selection of Contractor: Responses to IFBs and RFPs should be handled in
accordance with the DHS Procurement Manual, and selection should be based on
criteria included in the IFB or RFP. When appropriate, the Fiscal Operations
Manager will include one or more licensed blind Vendors on the selection panel.
The DHS Office of Contract Administration's CMS Representative is the only
individual with authority to open and record responses from offerors to a
Request for Proposal for Professional and Artistic Services.
e. Notification Following Selection: After a decision is made and approved
on the awarding of an IFB/RFP to a vendor/offeror, the bid must be posted on the
Internet through the Purchase point system. Posting is to be done in accordance
with the DHS Procurement Manual. Page 5‑10
‑‑5.5.3 SMALL PURCHASE PROCUREMENT
A. Allowable Circumstances for Using Small Purchase Procedures
Small procurement procedures are appropriate for purchases of services
(other than Professional and Artistic Services) from a single vendor for
services of $25,000 or less in a fiscal year; or purchase of supplies from a
single vendor of $10,000 or less in a fiscal year. Supplies are defined as all
personal property, including but not limited to equipment, materials, printing
and insurance. Supplies exceeding $10,000 may not be purchased, except by CMS or
through a CMS master contract.
B. Small Purchase Procurement Procedures To purchase supplies or
services using small procurement procedures, the Fiscal Operations Manager is
required to:
1. Prepare a detailed description of the supplies or service to be
procured, including a cost estimate, and obtain prior approval in accordance
with the DHS Procurement Manual.
2. Make a reasonable effort (minimum of three phone bids, when possible) to
get the best price possible from a responsible vendor and document as prescribed
in the DHS Procurement Manual. Page 5‑11
‑‑5.5.4 PROFESSIONAL AND ARTISTIC SERVICES OF LESS THAN $20,000
A. Allowable Circumstances for Non‑competitive Purchase of Professional and
Artistic Services
Professional and Artistic Services are defined as services provided under
contract to a State agency by a person or business, acting as an independent
contractor, qualified by education, experience or technical ability.
Professional and Artistic Services that cost less than $20,000, are
non‑renewable and have a term of one year or less may be procured
non‑competitively using the exception procedures described below. All other
Professional and Artistic Services must be procured competitively, in
accordance with the procedures described in Section 5.5.2.
B. Procedures to Procure Professional and Artistic
Services Non‑competitively Prior approval must be secured to procure
Professional and Artistic Services non‑competitively. Approval is sought using
a form called "Professional and Artistic Services, Exception to Request for
Proposal Process" which must be completed and submitted in accordance with the
DHS Procurement Manual. No action can be taken to contract for the service until
DHS receives approval for this exception from CMS.
‑‑5.5.5 SOLE SOURCE
PROCUREMENT
A. Allowable Circumstances for Using Sole Source
Procurement Procedures Sole source procurement is allowable in limited
circumstances when required services are available from only a single
supplier, or when only one supplier is Page 5‑12 determined to be economically
feasible. Sole source procurement is only to be considered for procurements of
Professional and Artistic Services of $20,000 and over, or other services over
$25,000. Examples cited in the Illinois Procurement Code of circumstances which
could necessitate Sole Source Procurement include purchases of:
1. Sole supplier's items are needed for trial use or testing
2. Public utility regulated service
3. Media or advertising
B. Sole Source Procurement Procedures
1. When the BEPB Administrator believes the services to be purchased are
economically procurable only from a single source, the Administrator will seek
prior approval for sole source procurement in accordance with the DHS
Procurement Manual.
2. Approval will be based on a detailed written justification and
explanation of the Sole source request prepared by the Administrator. The
justification must include:
a. why the services can only be purchased from a specific individual or
business;
b. whether and the extent to which there are other potential providers of
these services and why these providers cannot provide the needed services;
c. other supporting rationale, including the specialty capabilities of the
proposed contractor, which support sole source procurement; Page 5‑13
d. the cost of the services;
e. the time frame during which the services are to be provided; and
f. efforts made to contact individuals or businesses which can provide the
services, if such efforts were made.
‑‑5.5.6 EMERGENCY PROCUREMENT
A. Allowable Circumstances for Using Emergency
Procurement Procedures Emergency procurement permits the state to make purchases
under emergency, including quick purchase conditions. The Procurement Code
contains thirteen examples of where emergency procurement could be utilized.
Examples most relevant to BEPB include:
‑‑to address an immediate threat to public health or safety
‑‑immediate repair against loss or damage, or to prevent loss or damage to
state property
‑‑to prevent/minimize serious disruption to services ‑‑to ensure
integrity of state records
‑‑to avoid lapsing federal or donated funds
B. Emergency Procurement Procedures
a. Authorization Required to Use Emergency Procurement Procedures. The BEPB
Administrator must be immediately contacted when an emergency need for services
costing $25,000 or more is identified. The BEPB Administrator must make the
final determination of whether the need for services constitutes an emergency as
defined in Section 5.5.6(A) above and justifies the use of emergency procurement
procedures. A situation Page 5‑14 must meet this definition of emergency in
order for emergency procurement procedures to be utilized. All other procurement
needs must be met through the applicable procurement procedure described in
Section 5.5.1.
b. Responsibilities for Emergency Purchases. The Fiscal Operations Manager
is responsible for coordinating emergency purchases, including efforts to secure
the best possible price and the preparation of required documents.
c. Emergency Purchase Procedures. Once the BEPB Administrator has
authorized the emergency purchase, the Fiscal Operations Manager is to:
‑‑immediately initiate a contract if required per Section 5.7 and secure
vendor's signature
‑‑prepare and sign an Emergency Procurement Requirements Form
‑‑prepare an Emergency Purchase Affidavit, sign it and have it notarized
‑‑provide these and other required documents to parties identified in the
DHS Procurement Manual.
5.6 PROCUREMENT TIMELINES
‑‑5.6.1 SCHEDULE FOR PURCHASES PLANNED IN ADVANCE
A. The following schedule provides general guidance on the timing of
procurement activity for those purchases which can be planned in advance. Page
5‑15
This schedule allows adequate time for procurement activities to be
completed when a competitive procurement process is used.
NOTE: In the chart below, items are arranged as follows:
Completion Date: Procurement Activity
March 1: BEPB Administrator completes the annual planning process for BEPB
program.
April 1: Fiscal Operations Manager prepares a draft IFB/RFP and provides it
to the Office of Contract Administration
Fiscal Operations Manager prepares and submits the following to the BEPB
Administrator, for subsequent submission to the Office of Contract
Administration:Any requests for any multi‑year contracts
Any requests to use competitive sealed proposals instead of competitive
sealed bidding
Requests for any sole source procurement
May 1: BEPB personnel work with the Office of Contract Administration to
distribute final IFB/RFPs to interest bidders, including advertising on the
Internet.
May 1: Bids or proposals received in response to the IFB/RFP are evaluated
in accordance with the DHS Procurement Manual
May 15: BEPB program staff work with the Office of Contract Administration
to make the award decision.
June 1: Fiscal Operations Manager secures signature of vendor on DHS
contract agreement.
June 15: Fiscal Operations Manager provides all completed contract forms
identified in the DHS Procurement Manual to the Office of Contract
Administration. This includes 3 copies of the DHS contract agreement signed by
the vendor.
July 1: The Fiscal Operations Manager files required contract documentation
in the official contract file maintained by the Office of Contract
Administration. Page 5‑160
B. For planned purchases using all other procurement methods, the Fiscal
Operations Manager must assure that all applicable forms are provided to the
Office of Contract Administration within required time frames.
‑‑5.6.2 TIMELINES FOR OTHER PURCHASES
A. Purchases requiring competition which cannot be planned in advance must
be procured following the same sequence of steps outlined above.
5.7 CONTRACT INITIATION AND FILING REQUIREMENTS
‑‑5.7.1 CONTRACT ENDORSEMENT FORM
A. To initiate the contract development process, the Fiscal Operations
Manager is to:
1. complete a Contract Endorsement form for any procurement of $10,000 or
more (or Professional and Artistic Services of $5,000 or more) and enter it into
the Consolidated Accounting and Reporting System (CARS) as required.
2. provide the completed Contract Endorsement form to the ORS Office of
Contract Administration at least four weeks prior to the effective date of the
contract. Page 5‑17
‑‑5.7.2 CONTRACT PREPARATION
A. After the Office of Contract Administration has received the appropriate
form, they will prepare the contract and obtain the signatures of both the
contractor and the DHS Secretary. The executed contract will then be processed
by the Office of Contract Administration and filed with the Comptroller's
Office. A copy of the executed contract will be provided to the BEPB
Administrator.
B. Contracts are not required for purchases up to $10,000 or for purchases
of Professional and Artistic services up to $5,000. For these purchases, the
Fiscal Operations Manager is responsible for preparing a C‑13 in accordance with
Section 4.8.4 for payment upon receipt of an invoice or billing statement for
the good or service provided.
‑‑5.7.3 CONTRACT DOCUMENTATION REQUIREMENTS
1. Each contract file maintained for the BEPB program by the ORS Bureau of
Finance and Operations must include adequate documentation to support the award
decision and method of procurement used to purchase contractual goods and
services. Minimum documentation required includes:
1. a description of the method of procurement used
2. copies of or references to all proposals submitted in response to the
BEPB's RFP/RFQ Page 5‑18
3. for sole source procurements, the approval received in accordance with
the DHS Procurement Manual, and the documentation described in Section 5.5.5 on
Sole Source Procurement Procedures, and
4. an explanation of the reason(s) why a contract was amended when contract
amendments occur.
‑‑5.7.4 CONTRACT AMENDMENTS
A. When necessary, the BEPB Administrator can initiate a contract amendment
to change the terms of the contract. Procedures for initiating an amendment are
to be in accordance with the DHS Procurement Manual.
‑‑5.7.5 CONTRACT RENEWALS
A. When appropriate, a contract for goods or services costing over $25,000
can be renewed for an additional period of up to one year. Contract renewals are
allowable only under the following circumstances:
1. Both the RFP used to procure the initial goods or services and the
resulting contract contain a renewal provision which indicates the potential for
contract renewal upon the approval of the BEPB Administrator, the contractor and
the ORS Director.
2. The contract renewal must be:
a. for the same goods or services provided under the initial contract Page
5‑19
b. at the same price as agreed to under the initial contract
c. on the same terms and conditions specified in the initial contract, and
d. for a period of up to one year following the initial contract period.
3. The BEPB Administrator is responsible for assuring that the contract
renewal is ccomplished in compliance with the renewal provisions contained in
the initial RFP and contract.
B. To initiate a contract renewal, the Fiscal Operations Manager is to:
1. complete a Contract Endorsement form and enter it into CARS, and
2. provide the completed Contract Endorsement form to the Grants and
Contracts Section at least four weeks prior to the effective date for the
contract. Return to TOC
SECTION
SIX‑‑
BEPB EQUIPMENT ACQUISITION, REPAIR AND INVENTORY REQUIREMENTS
6.1 GENERAL
A. This Section provides policy and procedures for acquiring equipment,
approving equipment repairs, providing equipment repair rebates to Vendors, and
conducting annual physical inventories of equipment owned by OFFERORS for the
BEPB.
B. The BEPB Fiscal Operations staff are given primary responsibility for
fulfilling the BEPB's responsibilities for equipment, including:
1. preparing an annual BEPB equipment budget for inclusion in the BEPB's
annual operating budget;
2. presenting vendor equipment requests for major expansions, or requests
which have been previously denied, to the ICBV/BEPB Equipment Committee each
quarter and communicating Committee recommendations to the BEPB Administrator;
3. preparing a Request for Service to purchase equipment;
4. tracking BEPB expenditures against the contract amount;
5. approving equipment repairs exceeding $400;
6. preparing C‑13 Invoice‑Vouchers to pay for equipment purchases according
to the procedures set forth in Section 4.8.4., and Page 6‑2
7. conducting an annual physical inventory of all BEPB equipment.
C. The Equipment Specialist has been given specific responsibilities for
BEPB equipment. These responsibilities include:
1. preparing Request for Service to order equipment;
2. verifying with contractors the receipt of purchasing documents and the
expected delivery date for equipment ordered;
3. assigning inventory tag numbers to BEPB equipment;
4. coordinating completion of Receiving Documents when equipment which has
been purchased is delivered;
5. completing Equipment Transaction Reports for all equipment purchases and
transfers;
6. contacting contractors to move equipment;
7. providing service descriptions necessary to enable the Fiscal Operations
Manager to properly code C‑13 Invoice‑Vouchers prepared for equipment purchases;
and,
8. maintaining an inventory of all BEPB equipment on CMS Common Systems.
D. Vendors are responsible for all equipment repair and receive rebates for
a portion of repair expenses incurred in accordance with BEPB program policy.
Page 6‑3
6.2 ACQUISITION OF BEPB EQUIPMENT
‑‑6.2.1 EQUIPMENT BUDGET
A. The Fiscal Operations Manager or designee, with direction from the BEPB
Administrator, is responsible for establishing an annual equipment budget to
purchase equipment needed for new facility development and for equipment
replacement and expansion at existing vending facilities. This equipment budget
is established when developing the annual operating budget for the BEPB
Program. (See Section Three)
B. The Fiscal Operations Manager or designee is to allocate the annual
equipment budget as follows:
1. Between 25 and 30 percent of the allocation is to be made available for
each of the first three quarters of the fiscal year, with no more than 90
percent of the allocation made available in total for the first three quarters
of the fiscal year.
2. 10 percent of the allocation is to be made available for the fourth
quarter of the fiscal year. If emergency equipment purchases become necessary,
the costs of the emergency equipment are to be taken from the allocation for the
fourth quarter, or if necessary, from allocations for quarters prior to the
fourth.
C. The annual equipment budget is to be based on projections for new and
replacement equipment. Page 6‑4
D. The equipment budget provides for purchases of equipment with a useful
life of more than one year and an acquisition cost of $100 or more.
E. The equipment budget is approved as a part of the BEPB annual operating
budget. This budget approval process is described in Section 3.2.3.
F. The Fiscal Operations Manager is responsible for tracking BEPB equipment
expenditures and for providing a monthly report to the BBS Bureau Chief, the
BEPB Administrator, and the Program Operations Manager. BEPB management may also
request at any time the current equipment budget available for equipment
purchases.
‑‑6.2.2 REQUESTS FOR EQUIPMENT PURCHASES
A. Vendors submit requests for needed equipment to the appropriate business
consultant on the Equipment Request Form, which must be completed in its
entirety. Requests are forwarded from the Business Consultant to the Fiscal
Operations Manager for action.
B. Vendors may submit emergency requests for equipment at any time to the
business consultant. The Equipment Specialist and Fiscal Operations Manager, or
designee are responsible for reviewing the emergency request and determining
whether to approve the request in accordance with the requirements in Section
5.5.6 on Emergency Purchases. Page 6‑5
‑‑6.2.3 AUTHORIZATION PROCEDURES FOR NEW AND REPLACEMENT EQUIPMENT
A. The BEPB Administrator or designee must provide prior approval for all
equipment purchases over $100, regardless of whether the equipment is purchased
by the BEPB program or by the vendor with funds generated through a program
facility. An exception to this requirement is that Vendors may use
facility funds to purchase equipment costing between $100 and $400
without obtaining prior approval. They must, however, report the purchase as an
expense on the Profit and Loss Statement. Additionally, they must send to the
business consultant, who will forward to the BEPB Fiscal Operations Manager or
designee, a copy of a paid invoice with a description of the equipment
purchased.
B. The Fiscal Operations Manager is responsible for processing all approved
requests and forwarding all denied requests to the ICBV/BEPB Equipment Committee
for their action. The ICBV/BEPB Equipment Committee is to review all vendor
requests that have been denied for equipment needed to replace vending equipment
at existing facilities or to expand these facilities. The ICBV/BEPB Equipment
Committee consists of the Fiscal Operations Manager, and members of the ICBV
Equipment Committee. Others (e.g., business consultants) may also be invited to
attend Equipment Committee meetings.
C. The Fiscal Operations Manager or designee is responsible for documenting
all purchase recommendations made pursuant to the Committee's review of
previously denied equipment requests and for initiating all purchases from the
appropriate contractors Page 6‑6
D. Fiscal Operations Manager or designee is also responsible for initiating
appropriate procurement steps for all approved equipment which cannot be
obtained through existing contract capacities.
‑‑6.2.4 NOTIFICATION PROCEDURES FOR DECISIONS REGARDING EQUIPMENT PURCHASE
REQUESTS
A. The Fiscal Operations Manager or designee is to send written
notification to all Vendors and business consultants to communicate equipment
purchase decisions within 10 days after the decision is made.
B. The Fiscal Operations Manager or designee is also to provide
documentation on equipment purchase decisions regarding major expansion or
denied requests to members of the BEPB Equipment Committee within 10 days after
the decision is made.
‑‑6.2.5 EQUIPMENT PURCHASE PROCEDURES
A. The BEPB Administrator or designee makes all decisions to purchase
equipment.
B. Purchase decisions are communicated to the Business Administrator's
Office, which is responsible for ordering the equipment as instructed by the
Fiscal Operations Manager.
1. The Fiscal Operations Manager or designee will process all approved
requests authorizing purchase via the Request for Service, specifying the
following: Page 6‑7
a. the type and quantity of equipment to be purchased
b. the location to which the equipment is to be delivered and a target date
for installing the equipment
c. the name of the contractor who will deliver and install the equipment,
if the contractor from whom the equipment is being purchased will not be
delivering and installing the equipment, and
d. if an emergency purchase, the word "EMERGENCY" at the top of the Request
for Service for emergency requests approved under 6.2.2(B).
2. The Equipment Specialist will prepare the Order for Delivery (OFD), or
other appropriate purchasing document. The completed OFD is to be distributed as
follows within 5 days after receipt of the Request for Service:
a. The original is to be sent to the appropriate contractor, based on the
type of equipment being purchased.
b. One copy is to be sent to the business consultant assigned to the
facility which will be receiving the equipment.
3. The Equipment Specialist is responsible for requesting the contractor to
provide written confirmation that the purchasing document was received and an
expected delivery date for the equipment. This written confirmation from the
contractor is to be kept as follows: Page 6‑8
a. The original is to be kept in a file maintained by the Equipment
Specialist.
b. One copy is to be forwarded to the Business Consultant.
‑‑6.2.6 EQUIPMENT DELIVERY AND INSTALLATION
A. Needs for equipment delivery and installation are identified during the
annual planning process completed by the Fiscal Operations Manager. Based on
these needs, contracts are established with appropriate providers to meet
equipment delivery and installation needs as they arise.
B. The Equipment Specialist is to assure that equipment which has been
purchased by the BEPB is delivered and installed as specified in the purchasing
document sent to the contractor. The Equipment Specialist must also assure that
a Receiving Document is completed for each delivery and installation. This
Receiving Document must:
1. specify the inventory tag number assigned to the equipment
2. be signed by the installer of the equipment
3. be signed by a representative of the vending facility receiving the
equipment, or, if the equipment is delivered to the BEPB warehouse, be signed by
the Equipment Specialist.
C. The Equipment Specialist is responsible for forwarding a completed
Receiving Document, Equipment Transaction Report, and a completed C‑13
Invoice‑Voucher including the service description to the Fiscal Operations
Manager within 5 days after the equipment has been delivered and installed. Page
6‑9
‑‑6.2.7 ADDING EQUIPMENT TO INVENTORY
A. Equipment purchased by the BEPB for vending facilities must be
maintained on CMS Common Systems.
Responsibilities of the Equipment Specialist:
1. Using the information recorded on the copy of the completed purchasing
document add all equipment costing $100 or more to the inventory system through
the Common Systems Property Maintenance Screen within 5 days after receipt of
the purchasing document. At a minimum, the following information must be entered
when adding the equipment:
a. the agency number for DHS
b. the inventory tag number assigned to the equipment
c. the location code for the vending facility at which the equipment will
be located, and
d. a brief description of the equipment.
e. The serial number for the equipment, as well as any other key
identification information, may be added to Common Systems based on the
completed Receiving Document, Equipment Transaction Report, and service
description.
2. Assign an inventory tag number to tangible equipment costing $100 or
more and record the inventory tag number on the C‑13 Invoice‑Voucher used to pay
for the equipment.
3. Business consultants are to affix inventory tags to equipment within
thirty days of receipt of the inventory tag from the Equipment Specialist. Page
6‑10
4. For equipment costing less than $100, mark the equipment to properly
identify the equipment as ORS property.
5. Review the Common Systems Property Maintenance Screen for each equipment
item listed on the voucher to verify that a voucher has not already been
prepared for payment.
‑‑6.2.8 INITIATING PAYMENT FOR NEW EQUIPMENT
A. All invoices received for new equipment purchases must be provided to
the Equipment Specialist. The Equipment Specialist is responsible for initiating
payment for equipment by signing the invoice to certify that the equipment has
been received and providing a written service description of the equipment. At
a minimum this description must include the inventory tag number assigned to
each equipment item listed on the voucher.
B. The Fiscal Operations Manager or designee is responsible for reviewing
all C‑13 Invoice Vouchers received from the Equipment Specialist; and forwarding
them to the BEPB Administrator for signature in accordance with Section 4.8.4.
6.3 BEPB EQUIPMENT REPAIRS
‑‑6.3.1 BEPB EQUIPMENT REPAIR POLICY
A. The BEPB program rebates Vendors for a portion of their equipment repair
expenses. Current policy allows rebates for the following costs associated with
repairs of equipment owned by the BEPB program: Page 6‑11
‑‑60 percent of labor costs
‑‑50 percent of parts costs,
‑‑80 percent of travel costs, and
‑‑80 percent of costs resulting from vandalism.
Vendors may be required to pay the entire repair cost when repair is needed
as a direct result of poor maintenance of the equipment.
B. Repair costs estimated at $400 or more must be pre‑approved by the
Fiscal Operations Manager.
‑‑6.3.2 ADVANCE APPROVAL PROCEDURES
A. The Fiscal Operations Manager or designee is responsible for assuring
that all repair expenses in excess of $400 or more are appropriate as follows.
1. Request the written repair history for the equipment needing repair from
the vendor.
2. Review the repair history to determine the type and frequency of all
past repairs.
3. Determine the age of the equipment and estimate the remaining useful
life for the equipment.
4. Determine, based on the repair history, if it is more beneficial to the
program to repair the equipment or to replace the equipment. Page 6‑12
B. The decision to approve or disapprove the repair request must be
communicated by telephone to the vendor within 2 working days after receipt of
the request. Written notification of the decision to the vendor must be sent
within 5 days after receipt of the request.
‑‑6.3.3 EQUIPMENT REPAIR REBATE PROCESS
A. Equipment repair expenses are rebated to Vendors through a repair rebate
process. This process utilizes the period report as the mechanism for providing
rebates in the same month in which the repair expenses were paid by the vendor.
The vendor's accountant, or the vendor, calculates the rebate amount using the
data provided by the vendor on the Equipment Rebate Request Form. Evidence
of payment must be provided by the vendor to receive the rebate. The "payment"
of the rebate to the vendor is accomplished by reducing the vendor's set‑aside
amount for the month by an adjusted rebate amount. This reduced set‑aside amount
is reflected on the settlement summary of the vendor's Profit and Loss
Statement.
‑‑6.3.4 MAINTAINING AN EQUIPMENT REPAIR HISTORY
A. Responsibility for maintaining a repair history for all equipment owned
by ORS for the BEPB is assigned as follows:
‑‑to the individual vendor or interim manager, for equipment located at a
facility managed by a vendor or interim manager
‑‑to the manager assigned to the facility, for equipment located at a
facility managed by ORS,
‑‑to the Equipment Specialist, for equipment stored at the BEPB warehouse.
Page 6‑13
B. Equipment repair histories must be maintained in accordance with
established vendor procedures. Business Consultants shall review equipment
repair histories and make recommendations for replacement.
6.4 PROPERTY CONTROL PROCEDURES FOR BEPB EQUIPMENT
‑‑6.4.1 GENERAL INVENTORY REQUIREMENTS
A. The Equipment Specialist must maintain an inventory for each vending
facility of all equipment with a value of $100 or more. The Equipment Specialist
is responsible for maintaining these inventories on CMS Common Systems, an
automated central inventory system used by ORS to meet State inventory
requirements.
B. The following equipment is not included in the equipment inventory for a
vending facility:
1. Equipment valued at less than $100.
2. Equipment provided by independent purveyors (e.g., Coca‑Cola).
‑‑6.4.2 RESPONSIBILITIES RELATED TO BEPB PROPERTY CONTROL
A. The Fiscal Operations Manager or designee and the Equipment Specialist
share responsibility for compliance with the inventory requirements described in
this Section as well as the State property control requirements identified in 44
Illinois Administrative Code Part 5010‑‑on Marking, Inventory, Transfer
and Disposal of State‑Owned Personal Property. Page 6‑14
‑‑6.4.3 CHANGES IN THE STATUS OF EQUIPMENT
A. After changes have been approved by the BEPB and CMS, the Equipment
Specialist is responsible for all changes in equipment status, including
equipment transfers and equipment scrapping, and for entering these changes on
CMS Common Systems after the equipment has been moved. Procedures for equipment
transfers and deletions of equipment from inventory are provided below.
1. Procedures for Equipment Transfers
Responsibilities of Business Consultants:
a. Submit a request to the Fiscal Operations Manager or designee to
initiate an equipment transfer from a facility assigned to the business
consultant. The business consultant must submit the request within 3 working
days after the vendor requests the transfer.
b. Report on the status of an equipment transfer in response to a vendor's
request for information on the status of the transfer. If the business
consultant does not know the status of the transfer, the business consultant is
to directly contact the Fiscal Operations Manager or designee to determine the
status and then provide this information to the vendor.
Responsibilities of the Fiscal Operations Manager or designee:
a. Receive a request from a vendor's business consultant to transfer
equipment from a facility. Page 6‑15
b. Complete a Request for Service for the equipment transfer and forward it
to the appropriate purveyor for action.
c. Keep the Equipment Transaction Report on file until the next equipment
inventory has been completed for the locations involved in the transfer.
Responsibilities of the Equipment Specialist:
a. Receive a completed Request for Service from the Fiscal Operations
Manager or designee.
b. Arrange for the equipment to be transferred from the facility to the
location indicated on the Request for Service within 5 days following receipt of
the Request for Service.
c. Complete an Equipment Transaction Report for the equipment transfer and
provide it to the Fiscal Operations Manager or designee after the physical
transfer of equipment has been completed.
d. Enter the inventory tag number for the transferred equipment into Common
Systems and change the location code to reflect the location to which the
equipment has been moved. The Inventory System User Manual is to be referred to
as needed to complete the change in status on Common Systems. Page 6‑16
2. Procedures for Deleting Equipment From Inventory
Responsibilities of the Equipment Specialist:
a. Make recommendations to the BEPB to dispose BEPB equipment by scrapping
the equipment or transferring the equipment to the CMS surplus warehouse.
b. Dispose of BEPB equipment as directed by the BEPB Administrator or
designee in a Request for Service and provide a completed Equipment Transaction
Report to the Fiscal Operations Manager or designee.
c. Notify the ORS Property Control Officer for ORS of the BEPB's decision
to request approval from CMS to dispose of equipment. The ORS Property Control
Officer for ORS is responsible for completing the Request for Deletion From
Inventory Form and for forwarding the completed form to CMS for review and
approval.
d. After approval for deleting the equipment from inventory has been
received by the ORS Property Control Officer, the Equipment Specialist is to
complete a request for deletions and send it to the ORS Property Control
Officer. A copy is also to be sent to the BEPB Administrator. Page 6‑17
Responsibilities of the BEPB Administrator or designee:
a. Review the Equipment Specialist's recommendations to dispose of BEPB
equipment and determine whether and how the equipment should be disposed.
‑‑6.4.4 ANNUAL PHYSICAL INVENTORY REQUIREMENTS
A. The Equipment Specialist is responsible for coordination of an annual
physical inventory for every vendor facility location, including the BEPB
warehouse.
B. The annual inventory is to be completed for all locations by October 1st
of each year. The following procedures for taking inventory are provided below.
1. The Equipment Specialist prints the current inventory listing for each
location from Common Systems.
2. Complete the following to take inventory at the location:
a. Record the condition of each equipment item (excellent, good, needs
repair, etc.) on the inventory listing for the location.
b. For any equipment at the location lacking an inventory tag number,
record a brief description of each equipment item and the serial number for the
equipment item.
c. Identify any equipment which is included on the inventory listing for
the location but which cannot be located. Page 6‑18
3.After conducting the physical inventory, the Equipment Specialist must
prepare a report for each location on the results of the inventory. This report
must identify any discrepancies between the equipment information maintained on
Common Systems and the equipment information gathered when taking inventory.
The Equipment Specialist must follow these procedures to resolve
any discrepancies.
a. Attempt to resolve all discrepancies cited on the report. Possible
explanations for discrepancies may include instances when a change in equipment
status has occurred but has not yet been recorded on Common Systems, or when
equipment has been lost or stolen.
b.After making reasonable efforts to resolve any discrepancies, identify
any equipment determined to be missing from the facility. Provide in the report
a written explanation of what may have happened to the equipment. The
discrepancy report is to be provided to the BEPB Administrator, who will approve
it before distribution. The BEPB Administrator is responsible for
determining whether the vendor is to be charged for the replacement cost of
the missing equipment.
c. Distribute the report on the results of the equipment inventory for each
facility to each of the following individuals:
1) one copy to the BEPB Administrator or designee for filing in the BEPB
Equipment Inventory file,
2) two copies to the business consultant assigned to the facility for
filing in the facility files maintained by the business consultants.Return
to TOC
SECTION
SEVEN‑‑
FACILITY DEVELOPMENT AND EXPANSION
7.1 OVERVIEW
A. ORS strives to increase the number of vending facility management
opportunities available to people who are blind by expanding existing facilities
and adding new ones. This section provides information and guidance related to
development and expansion of BEPB facilities.
7.2 FACILITY EXPANSION
A. Decisions regarding expansion of facilities are generally, but not
always, made in the context of developing the annual operating budget as
described in Section Three. This requires that all requests for expansion be
coordinated with the budget development schedule as described in Section 3.3.
‑‑7.2.1 FACILITY EXPANSION REQUESTS
A. The following procedures are to be followed to request expansion of a
current vending facility:
1. The vendor completes a written Request for Expansion of Facility Form
which identifies expansion needs and estimates the effects of the expansion on
the current profitability of the facility.
2. All requests for remodeling a facility must be submitted to the Program
Operations Manager by January 31 of each year. Page 7‑2
B. Unanticipated needs or opportunities may lead to facility expansion
requests made outside of the context of the annual operating budget. As these
situations arise, the vendor or business consultant is to complete a written
Request for Expansion of Facility Form and submit it to the Program Operations
Manager for consideration.
‑‑7.2.2 DECISIONS ON EXPANSION REQUESTS
A. The Program Operations Manager is responsible for reviewing all facility
expansion requests and for determining which requests to propose to the BEPB
Administrator for inclusion in the annual BEPB operating budget. In making these
determinations, the Program Operations Manager and the BEPB Administrator shall
consider:
1. Whether the expansion request should be treated as an expansion of a
current facility, as a satellite to a current facility or as a new facility
altogether.
2. Whether the expansion requested is allowable under the terms of the
contract or site agreement for the building in which the BEPB facility is
located.
3. Whether the expansion request places the current facility in competition
with another BEPB facility.
4. The likely impact of the expansion on the management and operational
capacity of the vendor. Page 7‑3
B. Remodeling requests approved by the BEPB Administrator are to be
included in the budget projections to be shared with the ICBV as described in
section 3.2.1(A)(5).
C. Expansion requests received by the Program Operations Manager outside of
the context of developing an annual operating budget for the BEPB program will
be considered within the constraints of the available budget.
7.3 ADDITION OF
NEW FACILITIES
‑‑7.3.1 IDENTIFICATION OF POTENTIAL NEW FACILITIES
A. Decisions regarding the addition of new facilities to the BEPB program
are also generally made in the context of developing the annual operating budget
as described in Section Three. This requires that decisions about establishing
new BEPB facilities be coordinated with the budget development schedule as
described in Section 3.3.
B. The Program Operations Manager is responsible for developing an annual
new BEPB facility development plan and a corresponding New Initiatives Estimate
in conjunction with the budget development process. This plan is to be approved
by the BEPB Administrator and reviewed with the ICBV as described in
Section 3.2.1(A)(5).
C. In addition to new facilities which are considered within the context of
developing an annual operating budget for the BEPB program, other growth
opportunities may arise and warrant consideration during the course of the year.
When these opportunities arise, they are to be considered within
budgetary constraints as they exist at the time. Page 7‑4
D. In determining whether to include a proposed new facility in the annual
new BEPB facility development plan, the Program Operations Manager and the BEPB
Administrator shall consider:
1. the expected costs associated with opening the new facility
2. the level of risk to ORS in opening the new BEPB facility
3. the favorability of the lease or other terms for the site on which the
BEPB facility is to be located
4. the anticipated profitability of the new facility and its ability to
sustain itself as a profitable BEPB facility
5. the effects, if any, the new facility is expected to have on the
profitability of other BEPB facilities, and
6. any strategic importance or benefits the facility may offer for the
program in general.
‑‑7.3.2 IMPLEMENTATION PLANNING FOR NEW FACILITIES
A. Whether approved as part of the process of developing an annual
operating budget, or during the course of the year, the Program Operations
Manager is to ensure that an implementation plan is developed for each new BEPB
facility. Each implementation plan shall:
1. specify a target date for opening the new BEPB facility Page 7‑5
2. establish a budget for the costs associated with opening the new BEPB
facility
3. identify any goods or services required to open the new facility which
cannot be met with existing contracts, set forth a schedule for procuring goods
and services needed to open the new facility, and identify the BEPB staff person
with responsibility for coordinating required procurement activity
4. establish a list of tasks or activities related to opening the new
facility and a schedule for the completion of those tasks or activities, and
5. identify the BEPB staff person with responsibility for coordinating all
activity related to opening the new facility.
‑‑7.3.3 OPERATION OF NEW AND EXISTING FACILITIES BY ORS
A. ORS is responsible for operating both new and vacant facilities until
Vendors or interim managers are selected to manage those facilities. In general,
the following guidelines are to be followed by the Program Operations Manager
and the BEPB Administrator in determining the length of time ORS will
operate profitable facilities:
1. New facilities must be bid within 6 months after opening.
2. Existing facilities must be bid within 3 months after vacancy. Page 7‑6
If the BEPB determines that an exception to these guidelines is necessary
for a specific facility, the Program Operations Manager will discuss with the
ICBV any reasons for extending the length of time ORS operates the facility and
include documentation supporting the extension in BEPB files.
B. If a new or existing facility remains unprofitable after ORS has
operated the facility for the maximum length of time allowable under the
guidelines above, the Program Operations Manager is to conduct a formal study on
the facility and make recommendations to the ICBV. These recommendations must
include the following, at a minimum:
1. an explanation of the reason(s) why the facility is unprofitable
2. identification of any future opportunities identified by the BEPB for
increasing the profitability of the facility through facility expansion or
combination (e.g., addition of a satellite location, combination of two separate
facilities into one facility)
3. a description of other specific strategies for increasing the
profitability of the facility (e.g., product changes, equipment changes), and
4. a recommendation on whether the facility should be retained or closed. Return
to TOC
SECTION
EIGHT‑‑
VENDOR AGREEMENTS AND SITE CONTRACTS
8.1 AGREEMENTS WITH VENDORS
A. A vendor agreement must be established between ORS and every vendor
assigned to a vending facility. These agreements describe in detail the terms
and conditions related to operating a BEPB facility, including ORS'
responsibilities as the Illinois State Licensing Agency as well as the vendor's
responsibilities under the agreement.
‑‑8.1.1 RESPONSIBILITIES
A. The Supervisor of Personnel is responsible for assuring that an agreement
is established with every vendor and that the terms and conditions described in
the vendor agreement accurately reflect the roles and responsibilities assigned
to ORS and to the vendor. A new vendor agreement must be established when a
vendor is awarded a different facility.
B. The Supervisor of Personnel is responsible for assuring that Vendors
comply with the terms and conditions of the agreement and for initiating
appropriate disciplinary action for any violation of the agreement.
‑‑8.1.2 PROCESSING REQUIREMENTS
A. The Supervisor of Personnel is responsible for preparing the vendor
agreement and providing it to the vendor for signature within two days after a
decision has been made to award a facility to the vendor. The signed agreement
is then forwarded to the office of the Associate Director of Offerors for
signature. Page 8‑2
B. A copy of the agreement is to be kept in the vendor's Facility Manual,
the business consultant's file, and the BEPB file.
8.2 SITE CONTRACTS
A. ORS shall establish, where practical, a site agreement with building
management for operation of every vending facility. These agreements describe
requirements related to operating the facility within the building.
‑‑8.2.1 RESPONSIBILITIES
A. Business consultants are responsible for gathering the data necessary to
establish site agreements for BEPB facilities.
B. The Fiscal Operations Manager or designee is responsible for managing a
process to ensure there are appropriate agreements with building management
prior to operation of vending facilities as follows:
1. To establish any BEPB facility on Federal property, other than a
cafeteria, an application for a BEPB facility permit is to be submitted to the
head of the Federal property managing department, agency, or instrumentality in
accordance with 34 CFR 395.16.
2. To operate a cafeteria on Federal property, an offer to operate the
cafeteria must be submitted in response to a solicitation for offers. An
agreement or contract is awarded on a competitive basis to the successful
offeror.
3. To operate other vending facilities not on Federal property, an
agreement or contract shall be established with building management. Page 8‑3
C. The business consultant assigned to the facility is responsible for
attending all meetings attended by the vendor and building management.
‑‑8.2.2 PROCESSING REQUIREMENTS
A. The Fiscal Operations Manager or designee is responsible for the
development of an appropriate agreement or contract with the building management
prior to operation of a BEPB facility.
B. A copy of the site agreement for each facility must be kept in the
Facility Manual maintained by the vendor, the business consultant's file for the
facility, and the BEPB facility file.
‑‑8.2.3 PROBLEMS AND DISPUTES
A. All problems and disputes presented by building management regarding
BEPB facility operations are to be referred to the BEPB contact identified in
the site agreement/contract for the facility. If the business consultant
assigned to the facility is the BEPB contact, the business consultant is
responsible for immediately meeting with the vendor and building management to
discuss and resolve the problem or dispute.
B. If the business consultant assigned to the facility is not the BEPB
contact identified in the site agreement/contract, the business consultant is
required to meet with the vendor and building management, immediately after
being notified by the BEPB contact identified in the contract, to discuss and
resolve the problem or dispute. The business consultant is to report the results
of the meeting to the BEPB contact, who will take any further necessary action. Return
to TOC
iSECTION
NINE‑‑
VENDOR ASSESSMENT ACTIVITIES
9.1 STRUCTURE FOR VENDOR ASSESSMENTS
A. The BEPB business consultants are responsible for regularly assessing
vendor performance and for assisting Vendors in establishing goals for improving
performance where needed. Three assessment methods are used to evaluate
performance:
1. a periodic on‑site assessment process for evaluation of vendor
performance against specific performance measures
2. an annual performance evaluation process which is directly linked to the
results of periodic on‑site assessments, and
3. a competitive rating process used to select Vendors to operate BEPB
facilities based on their past performance and capabilities.
B. BEPB business consultants are responsible for assessing vendor
performance in compliance with the requirements described in this Section. The
BEPB Administrator is responsible for assuring that the vendor assessments
provided by the business consultants are fair and equitable.
C. Periodic on‑site assessments and annual performance evaluations must be
provided for the following Vendors:
1. licensed Vendors assigned a facility, and
2. BEPB certified replacement managers who have been licensed or have
successfully completed training. Page 9‑2
D. Business consultants are to use the Field Operations Report Comments
form as needed to supplement the performance ratings and goals recorded on the
Field Operations Report. The Field Operations Report Comments form may also be
used during more informal visits made to vending facilities.
‑‑9.1.1 PERIODIC ON‑SITE ASSESSMENT
A. A periodic on‑site assessment must be conducted for each vendor at least
semi‑annually for each facility to which the business consultant is assigned.
The business consultant is required to rate performance on the Field Operations
Report using performance attributes established and periodically updated by
the Program Operations Manager as a guide.
B. The Program Operations Manager may determine, based on the type of
facility, the vendor's experience, and input from the vendor's assigned business
consultant, when assessments for any individual vendor should be conducted more
frequently than semi‑annually.
C. The business consultant is responsible for assisting the vendor in
establishing specific and measurable goals for improving performance in all
areas where performance is rated as less than satisfactory.
‑‑9.1.2 ANNUAL VENDOR EVALUATION
A. Business consultants are required to conduct annual performance
evaluations for all Vendors. Business consultants are to follow these additional
procedures when completing the Annual Vendor Performance Evaluation Form. Page
9‑3
1. Review vendor performance ratings on Field Operations Reports completed
for the vendor during the past year.
2. Compare vendor performance on each measure listed on the Annual Vendor
Performance Evaluation Form to the performance attributes established jointly by
the business consultants for annual vendor performance evaluations.
3. When applying vendor performance to the performance attributes, give
appropriate consideration to improvements in performance which the vendor has
achieved. Performance which has steadily improved throughout the year should be
rated better than performance which has steadily declined throughout the year.
B. The Program Operations Manager may request a business consultant to
re‑evaluate vendor performance if performance as rated on the Annual Vendor
Performance Evaluation Form is significantly different from performance as rated
on the Field Operations Reports completed during the past year.
‑‑9.1.3 COMPETITIVE RATING OF VENDOR QUALIFICATIONS AS PART OF FACILITY
ASSIGNMENT DETERMINATIONS
A. Vendor assignments to facilities are made through the BEPB vendor
selection process. This process involves establishment of a Selection Committee
charged with evaluating and rating vendor applicant qualifications using the
Selection Committee Rating Form.
B. The BEPB Administrator is responsible for assuring that the vendor
selection process is conducted in compliance with the requirements included in
Section 650.90 of the State Rules on Awarding Facilities. Page 9‑4
9.2 PROCEDURES FOR ENSURING CONSISTENT VENDOR ASSESSMENTS
A. The BEPB Administrator, Program Operations Manager and Supervisor of
Personnel are responsible for assuring that the vendor assessment process is
structured to achieve consistency in performance ratings among business
consultants. This consistency may be achieved through use of uniform rating
scales, application of performance attributes established by business
consultants for periodic and annual rating of performance, and periodic reviews
of completed vendor evaluation forms to judge consistency.
‑‑9.2.1 UNIFORM RATING SCALES
A. The BEPB Administrator, Program Operations Manager, and Supervisor of
Personnel are responsible for ensuring that a consistent rating scale is
developed and uniformly applied to all performance assessments, including
periodic and annual assessments of performance, as well as assessments as a part
of the vendor selection process.
B. The BEPB Administrator, Program Operations Manager and Supervisor of
Personnel are responsible for regularly reviewing vendor assessments to assure
that the rating scale is used fairly and consistently among business
consultants.
‑‑9.2.2 DEVELOPMENT OF RATING CRITERIA BY BUSINESS CONSULTANTS
A. The BEPB Administrator, Program Operations Manager and Supervisor of
Personnel are required to develop performance attributes which can be used as a
guide for business consultants in determining how performance related to each
performance measure should be rated. These attributes may be used Page 9‑5 to
define performance in terms of quantity or quality and should be as specific as
possible to assure that all business consultants interpret them in the same
way.
B. For each measure included on the Field Operations Report, the BEPB
Administrator, Program Operations Manager and Supervisor of Personnel are to
develop, and refine over time, two or three attributes for each performance
rating (e.g., excellent, very good). These attributes are to be used as a guide
by the business consultant to determine which performance rating to award
the vendor based on demonstrated performance.
C. For each measure included on the Annual Vendor Performance Evaluation
Form, BEPB Administrator, Program Operations Manager and Supervisor of Personnel
are to develop, and refine over time, two or three attributes for each
performance rating which are different from the performance attributes developed
for the Field Operations Reports. These attributes must be linked directly to
performance ratings provided on the Field Operations Reports completed for
the vendor during the past year. For example, one attribute describing excellent
performance regarding a specific performance measure on the annual evaluation
may require the vendor to have achieved all excellent ratings on related
performance measures included on the Field Operations Report.
D. The BEPB Administrator is responsible for reviewing and approving all
performance attributes as they are developed and refined by the Program
Operations Manager and Supervisor of Personnel. Page 9‑6
‑‑9.2.3 PERIODIC REVIEW OF RATING CRITERIA
A. The BEPB Administrator, Program Operations Manager and Supervisor of
Personnel, with assistance from the business consultants, are to annually review
and make necessary revisions and refinements to all performance attributes used
to rate vendor performance.
B. Revised performance attributes must be approved by the BEPB Administrator
before they are utilized by business consultants to guide vendor performance
assessments. Return to TOC
SECTION TEN‑‑
DISCIPLINARY ACTIVITIES
10.1 GENERAL RESPONSIBILITIES RELATED
TO DISCIPLINARY ACTIVITIES
A. All BEPB administrative staff are responsible for taking appropriate and
authorized disciplinary action within the required timeframes whenever a vendor
violation of BEPB rules, policies or procedures is identified. All disciplinary
activities are to include clear communication to Vendors on the specific
violation that occurred, the corrective action required in response to
the violation, and the consequences of not implementing appropriate correction
action.
B. Business consultants are responsible for providing guidance to Vendors
in implementing required corrective action and avoiding further disciplinary
action.
C. The Supervisor of Personnel is responsible for maintaining all files
containing documentation regarding vendor disciplinary action.
10.2 KEY DISCIPLINARY PROCEDURES
A. BEPB administrative staff are to follow the disciplinary procedures for
Vendors provided in Section 650.110 of the State Rules.
B. Written reprimands are also to be provided in accordance with the ORS
BEPB Written Reprimand Procedure.
10.3 AUTHORIZATION FOR DISCIPLINARY ACTION
A. Authority for administering disciplinary action is provided to BEPB
administrative staff as follows: Page 10‑2
1. Lead Vendors are authorized to provide oral reprimands to other vendor(s)
at the same facility and to prepare a Written Report of Oral Reprimand.
2. Business consultants are authorized to:
a. provide an oral reprimand to a vendor and prepare a Written Report of
Oral Reprimand,
b. recommend a written reprimand to the Supervisor of Personnel, and
prepare a written reprimand memorandum, including a Rules Violation Report,
observation reports, and additional background notes, and
c. make recommendations regarding suspension, loss of facility or
termination of license.
3. The Supervisor of Personnel is authorized to:
a. overturn oral reprimands provided by business consultants
b. provide written reprimand to Vendors, and
c. determine the appropriateness of and recommend immediate vendor
suspensions as well as other vendor suspensions.
4. The BEPB Administrator is authorized to:
a. determine the appropriateness, length, and effective date of vendor
suspensions and provide Notices of Suspension to Vendors Page 10‑3
b. initiate immediate inventory of all stock, equipment and documents for
the facility
c. make decisions regarding vendor loss of facility or termination of
license. Return to
TOC