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 UniversityDave Peasley, Metropolitan State UniversityDiana Fliss, Minnesota West Community & Technical CollegeJames Morgan, OOC FacilitiesJeff Kuiper, Southwest State UniversityKim Bienfang, AnokaRamsey Community CollegeLisa Sparks, St. Cloud State UniversityMichael Noble-Olson, Minneapolis Community & Technical CollegeMichael Nordby, OOC FinanceNathan Sorenson, OOC ITSSandra Schmitt, Winona State UniversityWayne Wolden, Minnesota State Technical and Community CollegeSteve Gednalske, OOC Finance

Keynote Speaker

Laura M. King Vice

Chancellor/CFO

Lisa Sparks Director of Purchasing

St. Cloud State University

Surviving an OLA Audit

3 WEEKS …Starting February 1st?!!

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

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

Finding 14: Expense transactions did not comply with certain MnSCU policies and procedures

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.

Continued…

• Missing supporting documentation for vendor invoices, packing slips, etc

Finding 16: Did not retain records to support important financial activity

So now what?

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

Path to pre-audit preparedness

THEY’RE HERE…

A Couple Words of Advice

•Only answer the question

•“As you can see on our website..”

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.

The interview…

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?

Purchasing Card Questions

Describe the process from request to award Dollar limits Laura King letters of approval to exceed

local authority Construction contracts

Bidding Questions

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

Accounts Payable Questions- PO payoff & Direct Pay

Describe the process from request to approval

Inventory and receiving interactions Dollar limits Certificate of insurances

Purchasing Questions

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

Audit Sample Requests

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

Continued...

You made it!

Updated Procurement Policies

Board Policy 5.14 Procurement and Contracts

Procedure 5.14.2 Consultant, Professional or Technical Services

Procedure 5.14.5 Purchasing

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.

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.

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

Q & A with Panel

Collaborative Sourcing Team (CST) Members

Scott Goings, OGCGary Hunter, Intellectual Property

Keswic Joiner, Risk ManagementLou Urban, OOC Business Office

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

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.

Wrap-up (Kim Bienfang)

Questions

Lunch and networking

Cut!