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