Okla. Stat. tit. 70, § 70-5-135

A. The board of education of each school district shall use the

following system of initiating, recording and paying for all

purchases, salaries, wages or contractual obligations due from any

of the funds under the control of such board of education. However,

a school district board of education may use the procedures outlined

in Section 304.1 of Title 62 of the Oklahoma Statutes for the

payment of salaries and wages only if the board so votes. The

Oklahoma Statutes - Title 70. Schools Page 295

provisions contained herein shall not apply to the sinking fund and

school activity fund.

B. The encumbrance clerk and treasurer of the school district

shall each enter the authorized amounts in the various appropriation

accounts of the funds to which this system is applied. The

authorized amounts of appropriations shall be the general fund and

building fund appropriations approved by the county excise board and

such additional amounts as may be applied in the manner provided by

law, the amount received for deposit in a special cash fund where

such special cash fund is authorized by law or required by the

person or agency providing such funds, or the amount of the net

proceeds realized from the sale of bonds of the school district and

any other income due such fund.

C. It shall be the duty and responsibility of the board of

education of the school district to prescribe and administer

adequate business procedures and controls governing the purchase or

confirmation of purchase and delivery of goods or services. The

procedures shall include delivery of an acceptable invoice by

document, facsimile, electronic or other standard form that includes

the information required by the district. Such procedures shall

include the designation of authorized persons to purchase goods or

services for the district and the method of determining the school

employee receiving delivery of each purchase.

D. Prior to the issuance of a purchase order, the encumbrance

clerk must first determine that the encumbrance will not exceed the

balance of the appropriation to be charged. The encumbrance clerk

shall charge the appropriate appropriation accounts and credit the

affected encumbrances outstanding accounts with the encumbrances.

Encumbrances must be submitted to the board of education in the

order of their issuance on a monthly basis, subject to a monthly

business cycle cut-off date determined by the board of education.

Approved encumbrances shall be listed in the minutes by the minute

clerk.

E. Before any purchase is completed, a purchase order or

encumbrance must be issued. No bill shall be paid unless it is

supported by an itemized invoice clearly describing the items

purchased, the quantity of each item, its unit price, its total cost

and proof of receipt of such goods or services. The bill and/or

invoice shall be filed in the encumbrance clerk's official records.

If a district has the ability to electronically utilize evaluated

receipt settlement (ERS), the district may remit to vendors on that

basis if the requirements of this subsection are fulfilled. In the

event a district is establishing electronic data interchange,

electronic entries will suffice in lieu of paper documents. In

order for a district to be authorized to utilize an evaluated

receipt settlement system:

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1. The ERS must result in payment by the district from vendor

receipts that have been matched to the purchase order date;

2. The ERS may only be used when there is an agreement between

the district and the vendor for use of an ERS; and

3. The ERS must be included in the district's journal

ledger/accounts payable/purchase order software.

F. The encumbrance clerk shall debit the encumbrances

outstanding account and credit the accounts payable account for the

amount of the approved bill. The board of education shall determine
ay only be used when there is an agreement between

the district and the vendor for use of an ERS; and

3. The ERS must be included in the district's journal

ledger/accounts payable/purchase order software.

F. The encumbrance clerk shall debit the encumbrances

outstanding account and credit the accounts payable account for the

amount of the approved bill. The board of education shall determine

the extent such costs may fluctuate without additional board action.

Minor adjustments not requiring additional board approval shall be

referenced to the original encumbrance.

G. An approved bill may be paid by issuing a warrant or check

against the designated fund only after ascertaining that proper

accounting of the purchase has been made and that the files contain

the required information to justify the expenditure of public funds,

except as otherwise provided in subsection I of this section. The

warrants or checks so issued shall be recorded in an orderly

numerical system established by the district. The encumbrance clerk

shall charge the warrant or checks against the accounts payable

account and credit it to the warrants or checks issued account.

Provided, if payment is to be made immediately and the board of

education deems it advisable, the postings to the accounts payable

account may be omitted and the payment of the approved bill may be

credited directly to the warrants or checks issued account. The

warrant or check shall show on its face the name of the school

district, the date of issue, the payee, the amount, the expenditure

classification code, and such other information as may be necessary

or desirable. The president and clerk of the board of education

shall each sign the warrant or check, or approved facsimile thereby

denoting to the public that the warrant or check is for the purpose

and within the amount of the appropriation charged.

H. The treasurer shall register the warrant or check in the

warrant or check register, charging the appropriation account and

crediting the warrants or checks outstanding account of the

designated fund. Provided, no warrant or check shall be registered

in excess of the appropriation account's balance. All warrants or

checks shall be registered in the order of their issuance. Voided

warrants or checks shall be registered and filed with the treasurer.

The treasurer shall sign each warrant or check through individual

signature or approved facsimile showing its registration date and

shall state whether it is payable or nonpayable. When a warrant or

check is paid, the treasurer shall maintain evidence the warrant or

check has been processed and paid. Nothing in this subsection shall

prohibit any governing board from using automated recordkeeping

procedures, provided the information required in this subsection can

be accessed.

Oklahoma Statutes - Title 70. Schools Page 297

I. Any board of education of a school district of this state

may make a payment which would otherwise be made by warrant or

check, by disbursement through an Automated Clearing House, bank

account debit system, wire transfer through the Federal Reserve

System, or any other automated payment system operated by a

financial institution insured by the Federal Deposit Insurance

Corporation. The internal controls over such payment system shall

be reviewed and approved by the independent auditor of the district

during the annual audit. The provisions of Sections 601 through 606

of Title 62 of the Oklahoma Statutes shall apply to instruments or

payment authorized by this subsection.

J. School districts complying with the provisions of this act

shall use only those forms and accounting systems approved by the

State Board of Education. Such forms and systems shall be

considered in substantial compliance with this act if they are

sufficient to convey the meaning and sequence of transactions

contained herein. Provided, nothing contained herein shall be
d by this subsection.

J. School districts complying with the provisions of this act

shall use only those forms and accounting systems approved by the

State Board of Education. Such forms and systems shall be

considered in substantial compliance with this act if they are

sufficient to convey the meaning and sequence of transactions

contained herein. Provided, nothing contained herein shall be

construed to limit or prevent the use of additional or subsidiary

accounts, forms, or files which may be deemed necessary or advisable

by the board of education of the district or the State Board of

Education.

K. Any school district desiring to utilize the services of a

data processing center to furnish any or all of the records herein

required may do so if the center and its system complies with this

act and the rules and regulations of the State Board of Education.

Such center shall furnish an honesty bond in an amount to be set by

the board of education but not less than Ten Thousand Dollars

($10,000.00).

L. The State Board of Education shall notify the board of

education of the school district of the tentative amount the

district is to receive from state and federal aid funds or

allocations, and the board of education of the school district may

include such tentative estimate as an item of probable income in the

preparation of the school district's Estimate of Needs and Financial

Statement; provided, no such federal aid estimate shall be used in

any way to reduce the State Foundation Aid or Incentive Aid for such

school district or sustain a protest for the reduction of a tax

levy.