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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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procurement training

Procurement Training

Sponsored by the Collaborative Sourcing Team

introduction continued kim bienfang
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

keynote speaker
Keynote Speaker
  • Laura M. King Vice Chancellor/CFO
surviving an ola audit
Surviving an OLA Audit
  • Lisa Sparks
  • Director of Purchasing
  • St. Cloud State University
finding 4 insufficient control of employees use of the college issued credit cards
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
finding 14 expense transactions did not comply with certain mnscu policies and procedures
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
  • 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.
finding 16 did not retain records to support important financial activity
Finding 16: Did not retain records to support important financial activity
  • Missing supporting documentation for vendor invoices, packing slips, etc
path to pre audit preparedness
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
a couple words of advice
A Couple Words of Advice
  • Only answer the question
  • “As you can see on our website..”
the interview
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.

purchasing card questions
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?
bidding questions
Bidding Questions
  • Describe the process from request to award
  • Dollar limits
  • Laura King letters of approval to exceed local authority
  • Construction contracts
accounts payable questions po payoff direct pay
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
purchasing questions
Purchasing Questions
  • Describe the process from request to approval
  • Inventory and receiving interactions
  • Dollar limits
  • Certificate of insurances
audit sample requests
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
  • 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
updated procurement policies
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 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
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
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
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
q a with panel1
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
Contracts & Purchasing Web Site
  • Highlights of Contracts & Purchasing Site
  • Preview: New C&P site in development
    • Temporary Address during development:
    • Username: “mnscu”
    • Password: “mnscubuys”
  • Please email comments or ideas to…
    • “”
    • Please include “C&P web” somewhere in the subject.
wrap up kim bienfang
Wrap-up (Kim Bienfang)
  • Questions
  • Lunch and networking