THE MISSISSIPPI LEGISLATURE

The Joint Committee on
Performance Evaluation and Expenditure Review

Report # 366

A Survey of School Districts' Selection of Vendors and Controls over Direct Sales to Students

November 13, 1997

Introduction

The PEER Committee surveyed Mississippi's 153 school districts to determine their policies related to the sale of items to students by vendors (e.g., rings, school pictures, graduation items, or accident insurance). PEER reviewed two issues: vendor selection and accounting for the funds received by the districts as a result of the sale of items to students.

Overview

No state law, State Board of Education policy, or State Auditor's regulation establishes controls over school districts' vendor selection procedures. Also, local school boards do not require school administrators to use a competitive process in selecting vendors for the sale of items to students.

Given the absence of a required competitive process, 86% of Mississippi's school districts reported that they have not developed or implemented the five basic oversight procedures PEER believes are needed to ensure minimum control over vendor selection, receipt of activity fund commissions generated from the sale of such items, and activity fund management. As a result, school districts may not be providing students and parents with access to the vendor with the highest quality goods at the lowest price and schools may not be maximizing revenue for school activity funds.

Further, although state law and State Auditor's guidelines require certain controls over all school districts' management of activity funds generated through commissions on the sale of items to students, state law does not provide sufficient control to deter the acceptance of gifts by school administrators.

Recommendations

  1. The Legislature should amend MISS. CODE ANN. §37-7-301 to require open and competitive bidding for the selection of vendors who sell items directly to students (e.g., rings, caps and gowns, school pictures, year books, graduation items, and accident insurance). (See Appendix C, page 23 of the report, for proposed legislation.)
  2. The Legislature should prohibit school administrators who enter into agreements with vendors selling items to students from accepting money or items tantamount to gifts from vendors.

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