11.2.1.3. Internal “Contract” Process

There are no “contracts” between departments within the same entity. What should exist is a Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA) between the Directors of the two departments agreeing to provide or exchange services. The MOU can be as simple as a work order; an email between the Directors; or a completed registration form with the account number and initials of the Director for the requesting department.

Once the two Directors agree as to:
1. what will be provided
2. the monetary value that should be transferred between departments.
And services have been performed, a transfer request should be sent to the Business Office.

The transfer request should be initiated by the department who performed the services. The request needs to be copied to the Directors of both of the departments involved in the transfer. The request needs to contain the following information:

a) dollar amount to be transferred
b) account the funds are being transferred from (all 33 digits of the 57×0 account);
c) account the funds are being transferred to
d) reason for transfer (i.e. service performed and date)

Transfers done between departments whose accounts are in the same fund should use object code 5710.xx (i.e. Transportation (FD 01) and Migrant Ed (FD 01)).

Transfers done between departments whose accounts are in different funds should use object code 5750.xx (i.e. Special Ed (FD 02) and CALM (FD 90)).

** Note: The transfer cannot be completed if the funds are not available in the account, so please verify fund availability.

** Example: Migrant Ed program manager would like to attend a workshop that will be given by Schools Legal Svc. The workshop is October 23rd and Schools Legal has set a registration fee of $60.00 per participant. Migrant manager (after clearing attendance at workshop with Migrant Director) corresponds with Legal to register and attends the workshop. On October 25th Schools Legal sends a request to the Business Office (at businessoffice@kern.org) to transfer:
a) $60.00
b) From: 01-700-3110-0-5710.00-4850-2100-00-0000-000
c) To: 01-365-1365-0-5710.00-8600-7200-00-0000-000
d) For: Workshop “Contract basics with Al Harris” 10/23/10 for Sal Avalos.
Both program Directors are cc’d on the transfer request.