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Procurement Training

Procurement Training. Sponsored by the Collaborative Sourcing Team . Introduction by Kim Bienfang , AnokaRamsey Community College. Today’s Agenda. Introduction Continued (Kim Bienfang ). Collaborative Sourcing Team (CST) Belinda Lindell , Bemidji State University

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Procurement Training

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  1. Procurement Training Sponsored by the Collaborative Sourcing Team

  2. Introduction by Kim Bienfang, AnokaRamsey Community College • Today’s Agenda

  3. Introduction Continued (Kim Bienfang) • Collaborative Sourcing Team (CST) Belinda Lindell, Bemidji State University Dave Peasley, Metropolitan State University Diana Fliss, Minnesota West Community & Technical College James Morgan, OOC Facilities Jeff Kuiper, Southwest State University Kim Bienfang, AnokaRamsey Community College Lisa Sparks, St. Cloud State University Michael Noble-Olson, Minneapolis Community & Technical College Michael Nordby, OOC Finance Nathan Sorenson, OOC ITS Sandra Schmitt, Winona State University Wayne Wolden, Minnesota State Technical and Community College Steve Gednalske, OOC Finance

  4. Keynote Speaker • Laura M. King Vice Chancellor/CFO

  5. Surviving an OLA Audit • Lisa Sparks • Director of Purchasing • St. Cloud State University

  6. 3 WEEKS …Starting February 1st?!!

  7. Finding 4: Insufficient control of employees’ use of the college-issued credit cards • Insufficient card limits (transaction limits, blocked vendors) • Card Sharing • Lack of receipts for purchases • Cardholders or supervisors not reviewing statements or submitting statements with out appropriate receipts to the business office within the allotted time. • Unallowable purchases (personal purchases, meals in travel status, entertainment, catering with alcohol) • Late fees • Special expense food purchases • Lack of encumbrance

  8. Finding 14: Expense transactions did not comply with certain MnSCU policies and procedures • Institution authorized contract over the local authority to purchase with no approval from OOC. • Employees with delegated authority exceeding their authority or had no authority at all. • Purchased without obtaining multiple bids/quotation or without obtaining sealed bids when required. • Did not document a sole source determination • Incurred obligations before encumbering funds

  9. Continued… • Inappropriately procured certain services using purchase orders instead of formally signed contracts. • Paid a contractor more than the amount specified in the contract • Paid for services without evidence that the institution had received the services • Inappropriately paid $1,000 for an employee to renew a realtor license. (The renewal would have been free if the employee had renewed it by the due date.) • Did not record the correct occurrence date in the accounting system-last day of goods received or services rendered.

  10. Finding 16: Did not retain records to support important financial activity • Missing supporting documentation for vendor invoices, packing slips, etc

  11. So now what?

  12. Path to pre-audit preparedness • 1. Review local policy and procedures • 2. Review MnSCU policy • 3. Review purchasing card strategies and blocked vendor list • 4. Review PCS and P-Card security

  13. THEY’RE HERE…

  14. A Couple Words of Advice • Only answer the question • “As you can see on our website..”

  15. The interview… The discussion and process you explain will be documented by the auditor. He will then use the work flow you are telling him to ensure that you are following your own policy and procedures as well as MnSCU policy with the samples requested to be pulled.

  16. Purchasing Card Questions • training procedure? • dollar limits? • blocked vendors? • manual? • Describe the process from the vendor’s store to the accounting system? • How is cost allocation involved? • How do you handle unauthorized purchases?

  17. Bidding Questions • Describe the process from request to award • Dollar limits • Laura King letters of approval to exceed local authority • Construction contracts

  18. Accounts Payable Questions- PO payoff & Direct Pay • Describe the process from invoice in the mail to invoice in the file for each payable route • PO vs. direct pay- when do you use each? Why? • 3 way match

  19. Purchasing Questions • Describe the process from request to approval • Inventory and receiving interactions • Dollar limits • Certificate of insurances

  20. Audit Sample Requests • Accounts Payable- • 30 transactions- to include receiving copy, ok to pay verification, invoice, etc. • Purchase Orders- • 30 purchase orders- reviewed for bid documentation, certs of ins, contracts, delegation to exceed local authority

  21. Continued... • Purchasing Cards • A list of all cardholders with daily/monthly limits • Proof of blocked vendors • 25 samples- to include the whole statement and backup • Complied with MnSCU policy • Receipts existed and matched statement amount • Expense was processed timely • Special expense form/delegation of authority existed when required • Statement was signed by cardholder

  22. You made it!

  23. Updated Procurement Policies • Board Policy 5.14 Procurement and Contracts • Procedure 5.14.2 Consultant, Professional or Technical Services • Procedure 5.14.5 Purchasing

  24. Board Policy 5.14 • Board Approval for contracts >$3 million • Board Approval not required for the following: inter-agency and intra-agency, joint powers agreements, Dept. of Admin. Contracts, Office of Enterprise Tech. (OET), MnSCU master contracts such as CST contracts.

  25. Procedure 5.14.2 Consultant, Professional or Technical Services • Increases college/university authority to $100,000 • Approval required from Vice Chancellor/CFO for inter-agency, intra-agency, joint powers agreements, and master contracts in excess of $1million.

  26. Procedure 5.14.5 Purchasing • Purchases $25,000 or less; requires quotation or open market • Purchases >$25,000 to $50,000 (requires sealed bid or two or more quotations) • Purchases >$50,000 (requires sealed bid by public notice) • Clarifies that bid solicitation is not required for purchases from: Dept. of Admin., OET, MnSCU master contracts, and approved cooperative purchasing agreements

  27. Q & A with Panel • Collaborative Sourcing Team (CST) Members • Scott Goings, OGC • Gary Hunter, Intellectual Property • Keswic Joiner, Risk Management • Lou Urban, OOC Business Office

  28. Q & A with Panel • Please send your questions/issues on the following topics or other procurement issues: • Contracts • Insurance • Intellectual Property • Prepayment or Year End Issues • Collaborative Sourcing Team (CST) Contracts

  29. Contracts & Purchasing Web Site • Highlights of Contracts & Purchasing Site • http://www.finance.mnscu.edu/contracts-purchasing/index.html • Preview: New C&P site in development • Temporary Address during development: • http://www.finance.mnscu.edu/cp-new/index.php • Username: “mnscu” • Password: “mnscubuys” • Please email comments or ideas to… • “sourcing@so.mnscu.edu” • Please include “C&P web” somewhere in the subject.

  30. Wrap-up (Kim Bienfang) • Questions • Lunch and networking Cut!

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