Arkansas Department of Education Change in Arkansas Small Purchase Threshold for School Food Authorities beginning July 31, 2017

Memo Information

Memo Number
CNU-18-012
Memo Date
8/28/2017
Memo Type
Regulatory
Section
Child Nutrition
Regulatory Authority
Arkansas Code Annotated 6-21-304-305
Response Required
NO
Attention
Superintendents; Principals; General Business Manager

Contact Information

Memo Text

ATTENTION:  CO-OP DIRECTORS, CHILD NUTRITION, FINANCIAL ADVISORS

 

 

Act 1124 of the Arkansas 91st General Assembly, Regular Session, 2017, increased the small purchase threshold (also called the simplified acquisition threshold) for Arkansas School Food Authorities (SFAs) from $10,000 to $20,000 annually (which is less than the Federal small purchase threshold of $150,000).  Thus SFAs are reminded to follow the stricter state threshold unless the districts has implemented procedures of a small purchase threshold lower than the state level. 

 

The Act allows the Commissioner of Education to adjust this purchasing threshold based on the Consumer Price Index for All Urban Consumers (or successor).

 

This change in the state small purchase threshold is effective July 31, 2017.  Any purchases or agreements to purchases prior to this date must follow the earlier, more restricted small purchase threshold.

 

The Child Nutrition Unit will be completing Procurement Reviews during the 2017-18 school year for those districts scheduled for an Administrative Review.  This required Procurement Review will be based on procurement during the 2016-17 school year (when the $10,000 small purchase threshold was in place). 

 

SFAs are reminded that all purchases from the non-profit food service account must promote free and open competition and be in compliance with 2 CFR 200 procurement regulations.  The Child Nutrition Unit has several procurement resources available on at http://www.arkansased.gov/divisions/child-nutrition-unit/procurement. 

 

Attachment:  Act 1124 of 2017