Purchase and Management of Equipment and Supplies

Accountability for Equipment when Employee Retires or Resigns
Contracts for service
Equipment Inventory Form
Federal Excess Property
Instructions for Order Entry
Order Entry System - Publications, Office Supplies, Videos, DVDs, CDs, Slide sets
Obtaining a Sales Tax Purchase Exempt Number
Obtaining a 501 C status
Online Ordering of Supplies
Ordering, go to the Marketing Resources site
Purchasing and Managing Office Equipment
Steps in the Bidding Process
Bid Rejection Letter
Supply Truck Run Schedule

Accountability for Equipment when Employee Retires or Resigns

Accountability for equipment, materials, and supplies when someone retires, resigns or leaves employment can be a serious problem. Ideally, the office procedure would have a check out system for everyone in the office and there would be an inventory done annually of all equipment using the Equipment Inventory Form.

All equipment, tools, books, teaching supplies and other items purchased with Professional Improvement Funds are property of the District Board or of the County Extension Council, if there is no District Board. These items should be included in the office inventory.

Items purchased by program councils should be included in the inventory and identified as owned by the program council.

Here are some recommended steps:

  • County Fiscal Coordinator should assume the responsibility for the office inventory.
  • Using the Equipment Inventory Form and check the items being returned.
  • Both the County Fiscal Coordinator and the employee leaving the office signs the form.
  • If the County Fiscal Coordinator is leaving, then one of the other agents in the office assumes the responsibility at the direction of the District Director.

These steps are designed to encourage honesty and reduce perceived dishonesty.

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Obtaining a Sales Tax Purchase Exempt Number

Obtaining a County Extension Council and/or District Board tax exempt number should not be confused with obtaining 501(c) status. A purchase exemption number is obtained from Kentucky Department of Revenue and the 501(c) status is a Federal Internal Revenue Service designation for non-profit and charitable groups (i.e.: Extension Homemakers, 4-H Council and Clubs). The purpose for obtaining a state purchase exemption number is to be exempted from sales taxes on purchases. Educational and charitable organizations who request sales tax exemption numbers will need to first obtain 501(c) status. However, organization with a sales tax exempt status will still need to collect and pay sales taxes on items sold (KRS 139.497 provides an exception to 4-H and school sales).

County Extension Councils and District Boards should not use the University Tax Exempt Number. That number is to be used only for items purchased by the University of Kentucky.

Obtaining a Kentucky Purchase Exemption Number: 

  • Go to http://revenue.ky.gov/ or telephone 502-564-5170
    • Follow these links:
      • Tax Forms
      • Current Year Forms
      • Sales and Use Tax
      • Application for Purchase Exemption Form 51A125 
  • Complete the form and return it to Division of Sales and Use Tax, Department of Revenue, P.O. Box 1274, Frankfort, KY 40602-1274.  If the tax exemption number is for the Extension District Board, mark Special District in the appropriate spot.  Tax exemption for County Extension Councils and program councils should be marked as educational.
  • Extension District Boards will need to provide a Notification of Existence form. This is on file at the County Clerk's office and is a form used to establish the District Board.
  • The purchase exemption number will be mailed to you.
  • For additional questions contact the Division of Sales and Use Tax, 502-564-5170.

Purchase exemption numbers are provided to the organization paying the bills. Therefore, it is not appropriate to use the county government exemption number.

Purchase exemption numbers may not be used for personal purchases. Avoid giving the appearance of using it personally even though the purchase may be for Cooperative Extension Service.

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Obtaining a 501 (C) Status

There are two 501(c) classifications with the Internal Revenue Service that may be needed by extension organizations.

501(c)(3) is designated for charitable and educational organizations. Extension Homemakers,
4-H and Agriculture Advancement Councils and clubs may be interested in obtaining this designation.

501 (c)(25) is designated for corporations or trusts organized exclusively for acquiring foundations, holding title, and collecting income from real property. Non-profit corporations formed to borrow money to build extension facilities will need this designation.

To apply for 501(c)(3) Status an organization must apply to the Internal Revenue Service on Form 1023 as a Code Sec. 501 (c)(3) organization.

Application for 501 (c)(23) Status requires Form 1024.

The non-profit corporation or councils may also be required to provide an Employer Identification Number. This number is obtained by completing IRS Form SS-4. This number is also used by banks as council or board account identification numbers and should be used instead of an individual's social security number.

Forms listed above can be obtained from the Internal Revenue Service.

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Online Ordering of Supplies

The University of Kentucky continues to have a contract with OfficeMax that took effect in April of 2004. The University partnered exclusively with OfficeMax for all general office supplies, toner/ink cartridges, business papers, HON furniture and technology products.  

If your office is not currently set up, or has not ordered from OfficeMax recently, please contact Ken Lennon at kenlennon@officemax.com to receive an information packet and catalog. 

If you would like to set up an account with OfficeMax, please contact Ken Lennon (kenlennon@officemax.com) by e-mail with the following information:  contact person, phone, fax, e-mail address, shipping address, billing address.  He will get you a PIN (personal identification number) to use when contacting customer service for orders or questions.  Also, if you would like Internet access he will set you up with a Username and Password.  When you place an order with OfficeMax they will send you an invoice for payment, no credit card required.  There will be no charge for shipping.

OfficeMax also offers the ability to purchase items in any OfficeMax retail store at the UK discounted price.  There is a tax exempt discount card set up for business purchases and one that can be used for personal purchases.  We also offer online ordering for personal purchases as well.  If you are interested in the stores discount cards or personal purchases, please contact Ken.

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Purchasing and Managing Office Equipment

  • Include specific equipment needs in the annual budget. Prioritize the list.
  • Investigate the kinds of equipment that will do the best job for your office.
  • Everyone (agents, secretaries, and assistants) in the office need to be involved in the decision-making.
  • Follow the recommended bidding process found in this section.
  • Buy "in state" from a reputable dealer. Catalogue dealers may leave warranty and maintenance in your hands. Also, purchasing in-state enable the use of the county's tax exempt number and supports businesses that pay taxes to the state government.
  • Do not pay book or list price. Talk to the sales representative. Often the price is negotiable. Check government price on items for comparison. However, government prices may not be the best price. Ask: What are the seller's responsibility concerning the equipment's warranty? Is the buyer responsible for getting the equipment to the repair shop? Where is the repair shop? Who will do the training on using the equipment? Who pays for routine service and cleaning?
  • Purchase equipment when it is needed rather than waiting until the end of the year.
  • Service warranties may not be worthwhile to you. Copiers and offset presses are the exceptions.
  • It may be possible to get a company to bill part of the cost in one fiscal year and the balance in the second fiscal year. Many companies will also allow payments on a monthly basis.
  • Set a written policy on the use and loan of the equipment. The County Extension Council needs to be involved in developing and approving the policy.
  • Establish a schedule for routine cleaning and services. Most office and audio visual equipment need annual cleaning and service. Usually the best service comes from the vendor who sold the product. These vendors want their equipment to perform at top efficiency and reliability.

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Steps in the Bidding Process

There are two basic reasons for bidding. (1) To insure equal opportunity for qualified vendors, and (2) To obtain the best price for the purchaser.

KRS 45A.385 requires bidding for items costing $30,000 or more. However, local governments may require bids on amounts less than $30,000. Be sure to check with the County Attorney concerning the guidelines your county government follows.

  • Study and compare different brands and models to determine what is best for your situation, i.e., usage, price, capability, service, availability, is it a close-out model (if so, obtaining parts and service may be a problem in the future).
  • Make a list of specifications you want in the equipment including delivery, training, service, trade-in, capabilities of the equipment, weight (if it is important), wattage, switches, quantity, color, finish, or any other restrictions.
  • Send the specification to possible suppliers with a deadline for return.
  • Some counties require publishing the bid in local newspapers. Check with your County Attorney. Questions you might ask the County Attorney:
    • Does the county require bids to be published in the newspaper?
    • Is there a minimum size for the advertisement?
    • How many times does the bid need to appear?
  • On the designated date, bids are opened and compared.
  • Some vendors may choose to place a bid even though the equipment does not meet specifications. These bids may be disallowed.
  • If bids are not acceptable, you may reject all bids and start the bid process again.
  • After choosing the winning bid, place your order with the vendor and notify other vendors they were not selected.
  • The accepted bid does not have to be the lowest price if there are reasons that justify selecting another vendor.

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