TINDLEY ACTION PLAN
1. Develop and implement Procurement Policy
(completed and on-going by CFO/Accounting Manager/Accountant/Grants
Manager/Network President/Department Heads)
a. Enhance written procedures for procurement and accounts payable.
i. Purchases between $15,000-$25,000 will require two quotes
for all new vendors; purchases between $25,000-$75,000 will
require three quotes for all vendors; and purchases over
$75,000 will require a competitive bid process for all vendors.
ii. Establish a Master Vendor list.
1. Master Vendors may be used for up to $20,000 for
regular services and products in the normal course of
business with dual approval by the Network President
and CFO.
b. Require vendor bids/quotes for services.
c. Segregate purchasing duties.
2. Research new vendors prior to utilization
(implemented and ongoing by CFO/Accountant)
a. Are these vendors commonly known in the industry or the
community?
b. Does the vendor have a valid website, phone number, address and
email address?
3. Conduct Periodic/Continuous Fraud-Detection Monitoring
(CFO – at every fiscal year end)
a. Annually identify (1) Tindley’s top 20 vendors, (2) all Tindley vendors
receiving annual payments totaling more than $10,000, and (3) any
new vendors receiving annual payments totaling more than $5,000.
i. Ensure there are valid and updated contracts for these vendors.
ii. Ensure the description for services on the corresponding.
invoices are detailed and complete.
iii. Assess multiple corresponding invoices that have the same total
amounts.
4. Refine and codify job descriptions/job duties for Network President,
CFO, Grants & Compliance Manager, and Director of Development
(HR/Board to be completed by 9/30/24)
a. Keep these job descriptions in a database to ensure a smooth
transition in the event of a departure or retirement.
b. The job descriptions should highlight the financial compliance aspects
of each position.
5. Change reporting structure for CFO
(to be implemented by HR/Board 9/30/24)
a. CFO will report directly to the Board with a dotted line to the Network
President.
6. Provide anti-fraud training for Network President, CFO, Director of
Development, Grants & Compliance Manager, and in-house accounting
professionals
(to be implemented by Network President/CFO and completed by 11/30/24)
7. Establish a Whistleblower/Ethics hotline to report suspected fraud
(to be implemented by HR 9/30/24)
a. Ensure employees understand that it is available to report suspected
fraud.
b. Develop procedures for responding to whistleblower allegations.
PROCUREMENT POLICIES AND PROCEDURES
I. INTRODUCTION AND PURPOSE
Tindley should adhere to strict ethical and legal standards to prevent fraud and
ensure accountability. This procurement policy should be cross-referenced with
current local, state, and federal laws.
II. CODE OF CONDUCT
A. Conflict of Interest
Tindley purchasers shall not participate in the selection, award, or administration of
a contract if they have a real or apparent conflict of interest.
Such a conflict arises when the Tindley purchaser; any immediate family member
(spouse, child, parent, parent in law, sibling, or sibling in law); partner; or an
organization that employs, or is about to employ, any of the above has a direct or
indirect financial or other interest in, or will receive a tangible personal benefit from,
a firm or individual considered for the contract award.
An “organizational conflict of interest” is created because of a relationship that a
Tindley employee has with a parent, affiliate, or subsidiary organization that is
involved in the transaction such that the Tindley employee is or appears to be unable
to be impartial in conducting a procurement action involving the related
organization.
B. Gifts, Money, Gratuities
Tindley employees involved in the purchasing process shall not solicit or accept gifts,
money, gratuities, favors, or anything of monetary value, except unsolicited items or
services of nominal value from vendors, prospective vendors, parties to subcontracts,
or any other person or entity that receives, or may receive compensation for
providing goods or performing services to Tindley. All Tindley purchasers shall
review and comply with Tindley’s procedures for disclosing, reviewing, and
addressing actual and potential conflicts of interest.
III. PROCUREMENT PROCEDURES
A. Procurement Procedure
See chart at the end of document
B. Bid Procedures
All procurement shall be conducted in a manner that provides, to the maximum
extent practical, a full and open competition. Tindley bid procedures should always
follow local, state, and federal requirements.
Procurement Processes should include the following:
1. Assemble a Procurement Committee consisting of the Network
President, CFO, Grant Manager, and the requestor of the product or
service.
i. In the event that the requestor of the product or service is the
Network President, a Tindley Board member of the applicable
committee that corresponds to the request will be asked to
participate.
2. Pre-Bid Phase.
i. If an outside vendor is needed to develop the bid specifications
for a bid project, the vendor, or related parties to the vendor
cannot participate in the bid.
ii. The procurement committee should have specific criteria of the
bid specifications including how bids will be judged based on
price, quality, experience of vendors, etc.
iii. All solicitations shall incorporate a clear and accurate
description of the technical requirements for products or
services to be procured.
iv. Identify all requirements which offerors must fulfill and all
other factors to be used in evaluating bids and proposals.
v. If required by local, state, and or federal laws, Tindley should
publicly announce in advance of projects that require a
competitive bid process.
vi. Vendors should not be allowed to interface with Tindley
procurement committee members before any public bids are
announced, and post-bid announcement, interactions should
occur only as part of the formal bid process (questions and
answers in writing, face-to-face walk-throughs, proposal
phases, and actual bid submissions).
3. Bid Phase.
i. All bidders should have adequate time to respond to a bid,
including Q&A sessions, and a face-to-face walk-through if
necessary.
ii. The Tindley employee sending out bid packages including
specifications, should not be the same person receiving the
vendor bid submissions.
iii. The Tindley employee receiving the bid submissions should
time and date stamp each bid received and the committee
should exclude any bids submitted after the bid deadline.
iv. Tindley employees are forbidden to disclose to vendors
information about other bidders, including bid proposal
contents such as pricing.
4. Bid Selection Phase.
i. The procurement committee should develop a bid template and
checklist that ranks bids based on criteria developed by the
committee and ensures bid procedures are followed.
ii. If the procurement committee chooses the winning bid on
criteria other than what is stated in the original specifications,
the committee must document the reasons why. For example, if
the winning bid was not the lowest price, the committee must
justify in writing why the vendor was selected.
C. Competition
All procurement shall be conducted in a manner that provides, to the maximum
extent practical, a full and open competition.
1. Procurements shall avoid noncompetitive practices that may restrict or
eliminate competition, including but not limited to:
a. Unreasonable qualification requirements.
b. Unnecessary experience and excessive bonding requirements.
c. Non-competitive pricing practices between firms or affiliated
companies.
d. Non-competitive contracts to consultants on retainer contracts
e. Organizational conflicts of interest.
f. Specifying “brand name” only instead of allowing “an equal to
product.”
2. Procurements shall not intentionally split a single purchase into two or
more separate purchases to avoid dollar thresholds that require more
formal procurement methods.
3. Procurements shall include in any pre-qualified list an adequate number
of current qualified vendors firms or products.
4. Procurements shall not preclude potential bidders from qualifying during
the solicitation period.
5. Procurements shall not use any geographic preferences (state local or
tribal) in the evaluation of bid proposals except where expressly
mandated or encouraged by applicable federal statutes.
6. The procurement team must find, when possible, bidders to compete that
were not provided by the Tindley requester.
7. The procurement committee must use independent judgment and notify
the Board of Directors and ethics hotline if the requester of products or
services is attempting to use undue influence for the team to select specific
vendors.
D. Considerations
Tindley purchasers should take the following actions when procuring goods and
services.
1. Conduct a lease versus purchase analysis when appropriate, including
for property and large equipment.
2. Consolidate or break out procurements to obtain a more economical
purchase if possible.
3. Use state and local intergovernmental or inter-entity agreements, or
common or shared goods and services, where appropriate.
4. Use federal excess and surplus property in lieu of purchasing new
equipment and property if it is feasible and reduces project costs.
5. Use time and materials contracts only if no other contract is suitable
and the contract includes a ceiling price that the contractor exceeds at
their own risk. If such a contract is negotiated and awarded, Tindley
must assert a high degree of oversight to obtain reasonable assurance
that the contractor is using efficient methods and effective cost
controls.
IV. PROCUREMENT METHODS
A. All procurements made under this policy shall:
1. Be necessary, at a reasonable cost, documented, not prohibited by law
or the applicable funding source, and made in accordance with this
policy.
2. Avoid acquiring unnecessary or duplicative items.
3. Engage responsible vendors who possess the ability to perform
successfully under the terms and conditions of a proposed
procurement.
4. Tindley purchasers shall consider vendor integrity, public policy
compliance, past performance record, and financial and technical
resources.
B. Procurement Parameters
For all transactions, Tindley shall follow the applicable procurement method set
forth in Appendix 1
C. Exceptions to Standards Methods
Solicitation of a proposal from a single source may only be used if the following apply
and are documented:
1. The item is only available from single source.
2. Public exigency or emergency will not permit any delay.
3. The Federal awarding agency or pass-through expressly authorizes the sole
source in response to a Tindley request.
4. After soliciting a number of sources, competition is determined inadequate.
V. DOCUMENTATION
A. Records
Tindley shall maintain records sufficient to detail the history of each procurement
transaction. These records must include, but are not limited to:
1. A description and supporting documentation showing the rationale for
the procurement method (e.g., cost estimates).
2. Selection of contract type.
3. Written price or rate quotations (such as catalog price, online price, e-mail
or written quote), if applicable.
4. Copies of advertisements, requests for proposals, bid sheets or bid
proposal packets.
5. Reasons for vendor selection or rejection, including Finance Committee
and Board Minutes, rejection letters, and award letters.
6. And the basis for the contract price.
VI. COMPLIANCE WITH THIS POLICY
Program directors and, where applicable, the purchasing committee, shall maintain
oversight to ensure that contractors and vendors perform in accordance with the
terms, conditions, and specifications of contracts or purchase orders. Violations of
this policy may result in disciplinary action, up to and including termination.
VII. VENDOR SELECTION CRITERIA
For vendors that have been selected in a competitive bid or that will provide critical
services to the school, Tindley should evaluate them based on cost, quality, past
performance, experience, and financial stability. Before providing services or
products, the selected vendor can be asked to provide references, allow for
background checks, and provide documentation such as certificate of insurance,
certificate standing, adherence to anti-fraud policies, and contracts with right-toaudit
clauses.