IDHS ADMINISTRATIVE PROCEDURES MANUAL – Illinois Committee of Blind Vendors

IDHS Administrative Procedures Manual

TABLE OF CONTENTS

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

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. Return to Top

1.2 SCOPE OF MANUAL

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.

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1.3 ORGANIZATION OF MANUAL

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.

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1.4 MANUAL UPDATING PROCEDURES

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.
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.

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SECTION TWO

PROGRAM FINANCE

2.1 GENERAL

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.
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. Return to Top

2.2 FEDERAL FUND SUBACCOUNTS

–2.2.1 RECEIPT SUBACCOUNTS.

Subaccount ERM is the one receipt subaccount for Federal funds utilized in the BEPB. Return to Top

–2.2.2 EXPENDITURE SUBACCOUNTS.

The following eight expenditure subaccounts have been established for Federal funds used in the BEPB

Subaccount ERM1. Reserved.
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
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.
Subaccount ERM4. This subaccount is used to pay expenses associated with training ICBV members.
Subaccount ERM5. This subaccount is used to pay the Federal portion of program management costs such as accounting services.
Subaccount ERM6. This subaccount is used for costs

associated with training BEPB Vendors.

Subaccount ERM7. This subaccount is used to pay warehousing

costs for BEPB equipment.

Subaccount ERM8. This subaccount is used for program costs being paid with reallocated Federal funds. Return to Top

2.3 PROGRAM INCOME SUBACCOUNTS

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 Return to Top

–2.3.1 FEDERAL VENDING RESERVE–SUBACCOUNT ER61

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.
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.
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 Return to Top

–2.3.2 PROGRAM DEVELOPMENT AND EXPANSION FUND

—SUBACCOUNT ER65

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.
Sources of Income. Income into the Program Development and Expansion Fund subaccount comes from two sources:
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.

Transfers made on a quarterly basis from the Purchase of

Stock Fund when the balance in that fund exceeds $75,000.

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 Return to Top

–2.3.3 REST AREA DEVELOPMENT FUND–SUBACCOUNT ER63

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.
Sources of Income. Income into the Rest Area Development Fund comes from two sources:
Profits from rest area vending facilities operated directly by ORS.
Commissions received for newspaper sales and sales from other publications sold at rest stops.
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. Return to Top

–2.3.4 SET-ASIDE FUND–SUBACCOUNT ER62

Purpose. This subaccount is used to pay for a portion of the operating costs and administrative expenses associated with the BEPB.
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:
6 percent of net monthly profits for Vendors who assume responsibility for their own accounting services Page 2-6
9 percent of net monthly profits for Vendors electing to use accounting services provided by an accounting firm under contract to ORS.
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. Return to Top

–2.3.5 PURCHASE OF STOCK FUND–SUBACCOUNT ER64

Purpose. This subaccount is used to generate additional income for development and expansion of existing facilities.
Sources of Income. Income into the Purchase of Stock Fund comes from Vendors who:
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.
require working capital advances and who are making scheduled repayments of the amount of working capital advanced. Page 2-7
Allowable Uses.
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.

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 Top

SECTION THREE

BEPB BUDGET 3.1

GENERAL

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. Return to Top

3.2 BUDGET DEVELOPMENT

There are three phases to the process of developing the annual operating budget for the BEPB. They are:
the preliminary planning phase
the budget preparation phase, and
the budget approval phase.

The procedures for each of these phases are described in this section. Return to Top

–3.2.1 PRELIMINARY PLANNING PHASE

Five primary activities occur in the preliminary planning phase.
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.
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:
The number of vending facilities being operated directly by ORS and the relative profitability of those facilities.
The impact of vendor profitability trends on set-aside amounts.
The extent and costs of equipment repairs required and the associated impact on the availability of set-aside income.
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:

Increases in fees required to obtain outside accounting services under the program.
Known increases in equipment costs for certain equipment items.
The level of remodeling or renovation required under the program.
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
Costs of equipment to be purchased for the new facilities.
Costs of major remodeling, renovation or construction costs associated with new facilities.
Estimated lease costs to be borne by ORS during the development stage of a new vending facility.
Assumptions regarding the schedule by which any new facilities will be opened. e. Other anticipated costs reasonably associated with new facility expansion.
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. Return to Top

–-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

BEPB Operating Budget for Federal Funds. This form identifies operating budget expenses during the fiscal year which will be paid from Federal funds.
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.
BEPB Budget Summary. This form summarizes the income and expense budget by fund source for the fiscal year. Return to Top

–3.2.3 BUDGET APPROVAL PHASE

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.
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:
The Associate Director of the Office of Rehabilitation Services
The Illinois Committee of Blind Vendors
The accounting firm under contract to ORS to provide accounting services to the BEPB. Page 3-6 Return to Top

3.3 BUDGET DEVELOPMENT SCHEDULE

The annual operating budget for the BEPB is to be completed according to the following schedule:
Preliminary Planning Phase.
March 31: Income, expense and growth estimates completed
April 30: Input obtained from the Illinois Committee of Blind Vendors
May 31: BEPB Operating Budget forms submitted for approval to the Chief, Bureau of Blind Services
June 30: BEPB operating budget approved, subject to the appropriations process Final operating budget for the fiscal year distributed. Return to Top

3.4 BUDGET MONITORING

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.

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SECTION FOUR–

BEPB FINANCIAL MANAGEMENT AND ACCOUNTING

4.1 OVERVIEW

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. Return to Top

4.2 VENDOR ACCOUNTING SERVICES

Overview. Accounting for vending facility operations under the BEPB is handled in one of two ways:
By Vendors who assume responsibility for their own accounting (referred to as “independent accounting”).
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

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.

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. Return to Top

4.3 PROCESSING ACTIVITY FOR VENDORS ON INDEPENDENT ACCOUNTING

The accounting firm under contract to ORS performs the following functions for each vendor on independent accounting:
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.
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
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.
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.
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. Return to Top

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

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.
For vending facilities with payrolls:
Receive time sheets and payments to cover payroll obligations within 4 working days after the end of each semi-monthly pay period.
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
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.
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.
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.
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.
Separate facility business expenses by account types. Page 4-6
Contact the vendor or appropriate business counselor to resolve any problems or discrepancies identified.
Post information from the monthly reports on sales, expenses and cash to the accounting system.
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.

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.
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.
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 Return to Top

4.5 MONTH END PROCESSING ACTIVITY

The accounting firm under contract to ORS performs the following functions at the end of each month.
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.
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.
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:
the amount paid by each vendor/ORS-operated facility
the purpose for each amount paid by each vendor/ORS-operated facility
amounts paid for each purpose by Vendors on self accounting
amounts paid for each purpose by Vendors utilizing accounting services being provided by the accounting firm under contract to ORS Page 4-8
amounts paid for set-aside by ORS-operated facilities, and
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.

Prepare a Summary of Facilities Monthly Report for each month. A Summary of Facilities Monthly Report is to be provided:
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.
for all ORS-operated facilities, and
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.

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.

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.

Prepare a monthly report and provide a payment drawn on the BEPB Agency Account and payable to the provider of vendor medical insurance. Return to Top

4.6 PROGRAM WIDE ACCOUNTING SERVICES

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.
These program wide accounting services are aimed at achieving the following objectives:
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
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
to track and provide information on program expenditure activity for BEPB contracts established to provide goods and services needed under the program
to provide program information sufficient to enable Federal reporting requirements related to the program to be fulfilled, and
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.
The accounting firm under contract to ORS is responsible for ensuring that accounting records and processes are organized so that these objectives are met.
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. Return to Top

4.7 ACCOUNTING PROCEDURES FOR BEPB INCOME

–4.7.1 FEDERAL FUNDS

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
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.
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. Return to Top

4.7.2 PROGRAM INCOME FUNDS

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.
The BEPB Secretary must record the payer, check number and amount on a BEPB cash receipts log.
The BEPB Secretary forwards the funds received to the accounting firm.
The accounting firm records the payer and amount on the accounting system, and deposits checks received. Page 4-12
Federal Vending Reserve. The following procedures apply to receipt of funds from non-BEPB Vendors operating vending facilities on Federal property.
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.
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.
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.
Income from ORS-operated Facilities.
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.
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
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.
This amount is entered into the accounting system as being received into the Program Development and Expansion Fund.
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:
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.
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.
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.
Rest Area Development Fund. The following accounting procedures apply to program income deposited into the Rest Area Development Fund. Page 4-14
Income from ORS-Operated Rest Areas.
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.
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.
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.
This amount is entered into the accounting system as being received into the Rest Area Development Fund.
Income from Newspaper and Other Commissions.
Income from commissions on newspapers and other publications is paid by suppliers to the accounting firm under contract to ORS. Page 4-15
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.
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.
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.
Set-Aside Fund. The following procedures apply to program income received into the Set-Aside Fund.
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.
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
This amount is entered into the accounting system as being received into the Set-Aside Fund.
The Program Operations Manager is responsible for coordinating all efforts necessary to assure that monthly set-aside payments due from Vendors are received.
Purchase of Stock Fund. The following procedures apply to program income received into the Purchase of Stock Fund.
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.
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.
This amount is entered into the accounting firm’s accounting system as being received into the Purchase of Stock Fund.
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 Return to Top

–4.7.3 TRANSMITTING PROGRAM INCOME TO ORS

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:
Net profits from ORS-operated vending facilities received into the Program Development and Expansion Fund under Section 4.7.2 (C)(1).
Net profits from ORS-operated vending facilities in rest areas received into the Rest Area Development Fund under Section 4.7.2 (D)(1).
Income from newspaper and other commissions received into the Rest Area Development Fund under 4.7.2(D)(2).
Set-aside amounts paid by Vendors and ORS-operated facilities under 4.7.2(E)(1).
Amounts received into the Purchase of Stock Fund under4.7.2 (F)(1).
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
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.
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. Return to Top

4.8 ACCOUNTING PROCEDURES FOR BEPB EXPENDITURES

–4.8.1 EXPENDITURES UNDER CONTRACTS

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.
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.
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:
the name of the contractor and a contract number
the maximum amount payable for goods and services under the contract
the State and Federal fiscal years to which the contract applies, and
the specific subaccount code as identified in Section Two to which contract expenditures are to be applied.
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:
the contract number under which the Invoice-Voucher originated, if the Invoice-Voucher originated under a contract
the State and Federal fiscal year to which the amount of the Invoice-Voucher is to be applied, and
the specific subaccount code to which the amount of the Invoice-Voucher is to be applied. Page 4-20
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.
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.
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.
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. Return to Top

–4.8.2 EXPENDITURES NOT UNDER CONTRACTS

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
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).
Once the Invoice-Voucher has been prepared, the Fiscal Operations Manager codes the Invoice-Voucher to reflect the following:
the State and Federal fiscal year to which the expenditure applies, and
the specific subaccount code as described in Section Two to which the amount of the expenditure is to be applied.
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.
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.
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.
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 Return to Top

–4.8.3 EXPENDITURES MADE BY THE ACCOUNTING FIRM UNDER CONTRACT TO ORS

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:
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.
Direct payments for costs of facilities directly operated by ORS that may be operating at a loss.
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.
Other payments authorized in writing by the BEPB Administrator.
Payment Procedures. The following procedures apply to payments made by the accounting firm under contract to ORS.
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
the name of the person, organization or company to whom payment is to be made
a brief description of the purpose for the payment
an invoice, if one exists for the payment to be made
identification of State and Federal fiscal year to which the payment is to be applied, and
identification of the specific subaccount as described in Section Two to which the payment is to be applied.
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.
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.
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 Return to Top

–4.8.4 INVOICE-VOUCHER PROCESSING PROCEDURES

The following procedures are to be followed for all Invoice-Vouchers (C-13) for equipment purchases processed under the BEPB program. Return to Top
The Equipment Specialist:
reviews all invoices, billing statements or similar documents received by the BEPB for appropriateness.
authorizes the preparation of an Invoice-Voucher (C-13) for the approved invoice.
properly codes the Invoice-Voucher.
determines the State and Federal fiscal year to which the invoice applies and codes the Invoice-Voucher accordingly.
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:
the nature of the expense for which the Invoice-Voucher has been prepared
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
the amount of the expense Page 4-25
the balances available in the subaccounts from which the expenditure may be made
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
The Fiscal Operations Manager forwards the approved Invoice voucher to the Program Administrator for sign-off. Return to Top

4.9 PROCEDURES REGARDING CASH RECONCILIATIONS

–4.9.1 PERFORMANCE OF MONTHLY CASH RECONCILIATIONS

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:
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.
ORS/BEPB Account. This account is used to receive and disburse funds for ORS-operated facilities.
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.
The monthly cash reconciliation process consists of two steps:
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.
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
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. Return to Top

4.10 FINANCIAL REPORTING

–4.10.1 OVERVIEW

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. Return to Top

–4.10.2 REGULAR REPORTS

Quarterly Reports. The accounting firm under contract toORS is to provide the following reports to the BEPB Administrator on a quarterly basis.
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
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.
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.
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.
Annual Reports. The accounting firm under contract to ORS is to provide the following reports to the BEPB Administrator on an annual basis.
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 Return to Top

–4.10.3 FEDERA L REPORTING

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.
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.
Sections Completed by the Accounting Firm Under Contract to ORS. The sections of the RSA-15 which are to be completed include:
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.
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.

Sections Completed by the Program Staff. The sections of the RSA-15 which are to be completed include:
Section I, Lines 12-15 regarding employment at vending facilities.
Section II regarding facilities and Vendors on Federal property, public property, and private property.
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.
Section V regarding the assignment and distribution of vending machine income. This information is generated from totals provided by the accounting firm.
Section VI regarding the number of potential vending facility sites surveyed.
Section VII regarding vendor training.
Section VIII on the State and nominee agency person years assigned to the Vending Facility Program for the Blind. Page 4-31
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.

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.
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.
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:
the BEPB’s RSA Regional Commissioner
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 Return to Top

–4.10.4 SPECIAL AND DEMAND REPORTS

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.
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 Top

SECTION FIVE–

BEPB CONTRACT AND PROCUREMENT PROCEDURES

5.1 INTRODUCTION

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. Return to Top

5.2 SUMMARY OF BEPB PURCHASING REQUIREMENTS

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:
Illinois Procurement Code (30 ILCS 500 and 525)
Illinois Department of Central Management Services, Standard Procurement Rules, (44 Illinois Register, Subtitle A, Chapter 1, Part 1)
Illinois Department of Human Services, Office of Contract Administration, Policy and Procedure Manual Procurement Code (the DHS Procurement Manual) Page 5-2
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:
Purchases of Professional and Artistic Services costing less than $20,000 that are non-renewable and have a term of one year or less.
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.
Small purchases (of $10,000 or less) of supplies from a single vendor in a single fiscal year.
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.
Emergency procurements for services over $25,000.
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
paper, stationery, and envelopes;
postage stamps;
vehicles and vehicle related services;
utilities for state-managed property;
telecommunications equipment and software on the network side of the point of presence;
electronic data processing services exceeding $10,000 (or $20,000 if Professional and Artistic);
telecommunications services; and
real estate leases.
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:
All Professional and Artistic Services of $5,000 or more.
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.

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. Return to Top

5.3 PLANNING PURCHASES OF GOODS AND SERVICES Page 5-4

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.

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:
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
Determining Needs
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.

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.
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. Return to Top

5.4 OTHER NEEDS

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. Return to Top

5.5 PROCUREMENT PROCEDURES

–5.5.1 SELECTING THE APPROPRIATE METHOD OF PROCUREMENT

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:
Small purchases of services of $25,000 or less, or supplies of $10,000 or less
Professional and Artistic services of less than $20,000
Sole source procurement
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 Return to Top

–5.5.2 COMPETITIVE SOURCE SELECTION

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.

Competitive Source Selection Procedures
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:
It permits discussions with competing offerors and changes in their proposals–including price; and
It allows comparative judgmental evaluations to be made when selecting among acceptable proposals for award of the contract.
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
A technical description of the goods and/or services to be provided by the contractor
The time frame during which goods and/or services are to be provided
The date by which proposals are to be submitted
The minimum qualifications required of offerors to provide needed goods or services
Specifications regarding the cost information to be provided; and
The criteria to be used to evaluate proposals.
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.
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.
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 Return to Top

–5.5.3 SMALL PURCHASE PROCUREMENT

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.

Small Purchase Procurement Procedures To purchase supplies or services using small procurement procedures, the Fiscal Operations Manager is required to:
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.
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 Return to Top

–5.5.4 PROFESSIONAL AND ARTISTIC SERVICES OF LESS THAN $20,000

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.

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. Return to Top

–5.5.5 SOLE SOURCE PROCUREMENT

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:
Sole supplier’s items are needed for trial use or testing
Public utility regulated service
Media or advertising
Sole Source Procurement Procedures
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.
Approval will be based on a detailed written justification and explanation of the Sole source request prepared by the Administrator. The justification must include:
why the services can only be purchased from a specific individual or business;
whether and the extent to which there are other potential providers of these services and why these providers cannot provide the needed services;
other supporting rationale, including the specialty capabilities of the proposed contractor, which support sole source procurement; Page 5-13
the cost of the services;
the time frame during which the services are to be provided; and
efforts made to contact individuals or businesses which can provide the services, if such efforts were made. Return to Top

–5.5.6 EMERGENCY PROCUREMENT

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

Emergency Procurement Procedures
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.
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.
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. Return to Top

5.6 PROCUREMENT TIMELINES

–5.6.1 SCHEDULE FOR PURCHASES PLANNED IN ADVANCE

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

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. Return to Top

–5.6.2 TIMELINES FOR OTHER PURCHASES

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

To initiate the contract development process, the Fiscal Operations Manager is to:
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.
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 Return to Top

–5.7.2 CONTRACT PREPARATION

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.
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. Return to Top

–-5.7.3 CONTRACT DOCUMENTATION REQUIREMENTS

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:
a description of the method of procurement used
copies of or references to all proposals submitted in response to the BEPB’s RFP/RFQ Page 5-18
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
an explanation of the reason(s) why a contract was amended when contract amendments occur. Return to Top

–5.7.4 CONTRACT AMENDMENTS

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

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:
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.
The contract renewal must be:
for the same goods or services provided under the initial contract Page 5-19
at the same price as agreed to under the initial contract
on the same terms and conditions specified in the initial contract, and
for a period of up to one year following the initial contract period.
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.
To initiate a contract renewal, the Fiscal Operations Manager is to:
complete a Contract Endorsement form and enter it into CARS, and
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 Top

SECTION SIX–

BEPB EQUIPMENT ACQUISITION, REPAIR AND INVENTORY REQUIREMENTS

6.1 GENERAL

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.
The BEPB Fiscal Operations staff are given primary responsibility for fulfilling the BEPB’s responsibilities for equipment, including:
preparing an annual BEPB equipment budget for inclusion in the BEPB’s annual operating budget;
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;
preparing a Request for Service to purchase equipment;
tracking BEPB expenditures against the contract amount;
approving equipment repairs exceeding $400;
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
conducting an annual physical inventory of all BEPB equipment.
The Equipment Specialist has been given specific responsibilities for BEPB equipment. These responsibilities include:
preparing Request for Service to order equipment;
verifying with contractors the receipt of purchasing documents and the expected delivery date for equipment ordered;
assigning inventory tag numbers to BEPB equipment;
coordinating completion of Receiving Documents when equipment which has been purchased is delivered;
completing Equipment Transaction Reports for all equipment purchases and transfers;
contacting contractors to move equipment;
providing service descriptions necessary to enable the Fiscal Operations Manager to properly code C-13 Invoice-Vouchers prepared for equipment purchases; and,
maintaining an inventory of all BEPB equipment on CMS Common Systems.
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 Return to Top

6.2 ACQUISITION OF BEPB EQUIPMENT

–6.2.1 EQUIPMENT BUDGET

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)
The Fiscal Operations Manager or designee is to allocate the annual equipment budget as follows:
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.
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.
The annual equipment budget is to be based on projections for new and replacement equipment. Page 6-4
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.
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.
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. Return to Top

–6.2.2 REQUESTS FOR EQUIPMENT PURCHASES

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.
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 Return to Top

–6.2.3 AUTHORIZATION PROCEDURES FOR NEW AND REPLACEMENT EQUIPMENT

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.
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.
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
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. Return to Top

–6.2.4 NOTIFICATION PROCEDURES FOR DECISIONS REGARDING EQUIPMENT PURCHASE REQUESTS

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.
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. Return to Top

–6.2.5 EQUIPMENT PURCHASE PROCEDURES

The BEPB Administrator or designee makes all decisions to purchase equipment.
Purchase decisions are communicated to the Business Administrator’s Office, which is responsible for ordering the equipment as instructed by the Fiscal Operations Manager.
The Fiscal Operations Manager or designee will process all approved requests authorizing purchase via the Request for Service, specifying the following: Page 6-7
the type and quantity of equipment to be purchased
the location to which the equipment is to be delivered and a target date for installing the equipment
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
if an emergency purchase, the word “EMERGENCY” at the top of the Request for Service for emergency requests approved under 6.2.2(B).
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:
The original is to be sent to the appropriate contractor, based on the type of equipment being purchased.
One copy is to be sent to the business consultant assigned to the facility which will be receiving the equipment.
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
The original is to be kept in a file maintained by the Equipment Specialist.
One copy is to be forwarded to the Business Consultant. Return to Top

–6.2.6 EQUIPMENT DELIVERY AND INSTALLATION

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.
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:
specify the inventory tag number assigned to the equipment
be signed by the installer of the equipment
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.
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 Return to Top

–6.2.7 ADDING EQUIPMENT TO INVENTORY

Equipment purchased by the BEPB for vending facilities must be maintained on CMS Common Systems.

Responsibilities of the Equipment Specialist:

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:
the agency number for DHS
the inventory tag number assigned to the equipment
the location code for the vending facility at which the equipment will be located, and
a brief description of the equipment.
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.
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.
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
For equipment costing less than $100, mark the equipment to properly identify the equipment as ORS property.
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. Return to Top

–6.2.8 INITIATING PAYMENT FOR NEW EQUIPMENT

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.
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. Return to Top

6.3 BEPB EQUIPMENT REPAIRS

–6.3.1 BEPB EQUIPMENT REPAIR POLICY

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.

Repair costs estimated at $400 or more must be pre-approved by the Fiscal Operations Manager.Return to Top

–6.3.2 ADVANCE APPROVAL PROCEDURES

The Fiscal Operations Manager or designee is responsible for assuring that all repair expenses in excess of $400 or more are appropriate as follows.
Request the written repair history for the equipment needing repair from the vendor.
Review the repair history to determine the type and frequency of all past repairs.
Determine the age of the equipment and estimate the remaining useful life for the equipment.
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
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. Return to Top

–-6.3.3 EQUIPMENT REPAIR REBATE PROCESS

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. Return to Top

–6.3.4 MAINTAINING AN EQUIPMENT REPAIR HISTORY

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

Equipment repair histories must be maintained in accordance with established vendor procedures. Business Consultants shall review equipment repair histories and make recommendations for replacement. Return to Top

6.4 PROPERTY CONTROL PROCEDURES FOR BEPB EQUIPMENT

–6.4.1 GENERAL INVENTORY REQUIREMENTS

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.
The following equipment is not included in the equipment inventory for a vending facility:
Equipment valued at less than $100.
Equipment provided by independent purveyors (e.g., Coca-Cola). Return to Top

–6.4.2 RESPONSIBILITIES RELATED TO BEPB PROPERTY CONTROL

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 Return to Top

–6.4.3 CHANGES IN THE STATUS OF EQUIPMENT

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.
Procedures for Equipment Transfers

Responsibilities of Business Consultants:

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.
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:

Receive a request from a vendor’s business consultant to transfer equipment from a facility. Page 6-15
Complete a Request for Service for the equipment transfer and forward it to the appropriate purveyor for action.
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:

Receive a completed Request for Service from the Fiscal Operations Manager or designee.
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.
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.
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
Procedures for Deleting Equipment From Inventory

Responsibilities of the Equipment Specialist:

Make recommendations to the BEPB to dispose BEPB equipment by scrapping the equipment or transferring the equipment to the CMS surplus warehouse.
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.
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.
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:

Review the Equipment Specialist’s recommendations to dispose of BEPB equipment and determine whether and how the equipment should be disposed. Return to Top

–6.4.4 ANNUAL PHYSICAL INVEN TORY REQUIREMENTS

The Equipment Specialist is responsible for coordination of an annual physical inventory for every vendor facility location, including the BEPB warehouse.
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.
The Equipment Specialist prints the current inventory listing for each location from Common Systems.
Complete the following to take inventory at the location:
Record the condition of each equipment item (excellent, good, needs repair, etc.) on the inventory listing for the location.
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.
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.

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.

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 Top

SECTION SEVEN–

FACILITY DEVELOPMENT AND EXPANSION

7.1 OVERVIEW

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

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. Return to Top

–-7.2.1 FACILITY EXPANSION REQUESTS

The following procedures are to be followed to request expansion of a current vending facility:
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.
All requests for remodeling a facility must be submitted to the Program Operations Manager by January 31 of each year. Page 7-2
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. Return to Top

–7.2.2 DECISIONS ON EXPANSION REQUESTS

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:
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.
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.
Whether the expansion request places the current facility in competition with another BEPB facility.
The likely impact of the expansion on the management and operational capacity of the vendor. Page 7-3
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).
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. Return to Top

7.3 ADDITION OF NEW FACILITIES

–7.3.1 IDENTIFICATION OF POTENTIAL NEW FACILITIES

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.
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).
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
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:
the expected costs associated with opening the new facility
the level of risk to ORS in opening the new BEPB facility
the favorability of the lease or other terms for the site on which the BEPB facility is to be located
the anticipated profitability of the new facility and its ability to sustain itself as a profitable BEPB facility
the effects, if any, the new facility is expected to have on the profitability of other BEPB facilities, and
any strategic importance or benefits the facility may offer for the program in general. Return to Top

–-7.3.2 IMPLEMENTATION PLANNING FOR NEW FACILITIES

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:
specify a target date for opening the new BEPB facility Page 7-5
establish a budget for the costs associated with opening the new BEPB facility
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
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
identify the BEPB staff person with responsibility for coordinating all activity related to opening the new facility. Return to Top

–7.3.3 OPERATION OF NEW AND EXISTING FACILITIES BY ORS

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:
New facilities must be bid within 6 months after opening.
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.

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:
an explanation of the reason(s) why the facility is unprofitable
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)
a description of other specific strategies for increasing the profitability of the facility (e.g., product changes, equipment changes), and
a recommendation on whether the facility should be retained or closed. Return to Top

SECTION EIGHT–

VENDOR AGREEMENTS AND SITE CONTRACTS

8.1 AGREEMENTS WITH VENDORS

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. Return to Top

–8.1.1 RESPONSIBILITIES

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.
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. Return to Top

–8.1.2 PROCESSING REQUIREMENTS

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
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

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. Return to Top

–8.2.1 RESPONSIBILITIES

Business consultants are responsible for gathering the data necessary to establish site agreements for BEPB facilities.
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:
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.
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.
To operate other vending facilities not on Federal property, an agreement or contract shall be established with building management. Page 8-3
The business consultant assigned to the facility is responsible for attending all meetings attended by the vendor and building management. Return to Top

–-8.2.2 PROCESSING REQUIREMENTS

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.
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

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.
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 Top

SECTION NINE–VENDOR ASSESSMENT ACTIVITIES

9.1 STRUCTURE FOR VENDOR ASSESSMENTS

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:
a periodic on-site assessment process for evaluation of vendor performance against specific performance measures
an annual performance evaluation process which is directly linked to the results of periodic on-site assessments, and
a competitive rating process used to select Vendors to operate BEPB facilities based on their past performance and capabilities.
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.
Periodic on-site assessments and annual performance evaluations must be provided for the following Vendors:
licensed Vendors assigned a facility, and
BEPB certified replacement managers who have been licensed or have successfully completed training. Page 9-2
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. Return to Top

–9.1.1 PERIODIC ON-SITE ASSESSMENT

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.
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.
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. Return to Top

–9.1.2 ANNUAL VENDOR EVALUATION

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
Review vendor performance ratings on Field Operations Reports completed for the vendor during the past year.
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.
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.
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. Return to Top

–9.1.3 COMPETITIVE RATING OF VENDOR QUALIFICATIONS AS PART OF FACILITY ASSIGNMENT DETERMINATIONS

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.
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 Return to Top

9.2 PROCEDURES FOR ENSURING CONSISTENT VENDOR ASSESSMENTS

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. Return to Top

–9.2.1 UNIFORM RATING SCALES

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.
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.Return to Top

–9.2.2 DEVELOPMENT OF RATING CRITERIA BY BUSINESS CONSULTANTS

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.
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.
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.
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 Return to Top

–9.2.3 PERIODIC REVIEW OF RATING CRITERIA

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.
Revised performance attributes must be approved by the BEPB Administrator before they are utilized by business consultants to guide vendor performance assessments. Return to Top

SECTION TEN–

DISCIPLINARY ACTIVITIES

10.1 GENERAL RESPONSIBILITIES RELATED TO DISCIPLINARY ACTIVITIES

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.
Business consultants are responsible for providing guidance to Vendors in implementing required corrective action and avoiding further disciplinary action.
The Supervisor of Personnel is responsible for maintaining all files containing documentation regarding vendor disciplinary action. Return to Top

10.2 KEY DISCIPLINARY PROCEDURES

BEPB administrative staff are to follow the disciplinary procedures for Vendors provided in Section 650.110 of the State Rules.
Written reprimands are also to be provided in accordance with the ORS BEPB Written Reprimand Procedure. Return to Top

10.3 AUTHORIZATION FOR DISCIPLINARY ACTION

Authority for administering disciplinary action is provided to BEPB administrative staff as follows: Page 10-2
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.
Business consultants are authorized to:
provide an oral reprimand to a vendor and prepare a Written Report of Oral Reprimand,
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
make recommendations regarding suspension, loss of facility or termination of license.
The Supervisor of Personnel is authorized to:
overturn oral reprimands provided by business consultants
provide written reprimand to Vendors, and
determine the appropriateness of and recommend immediate vendor suspensions as well as other vendor suspensions.
The BEPB Administrator is authorized to:
determine the appropriateness, length, and effective date of vendor suspensions and provide Notices of Suspension to Vendors Page 10-3
initiate immediate inventory of all stock, equipment and documents for the facility
make decisions regarding vendor loss of facility or termination of license.

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