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Purchasing. Budget Hearings – Purchasing Steve Shelley March 21, 2013. Purchasing. Director of Purchasing Assistant Director Purchaser Purchaser (handles accounts payable) Purchasing Assistant (Acts as Procurement Card Administrator) Administrative Assistant Storekeeper. Purchasing.

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purchasing
Purchasing

Budget Hearings – Purchasing

Steve Shelley

March 21, 2013

purchasing1
Purchasing
  • Director of Purchasing
  • Assistant Director
  • Purchaser
  • Purchaser (handles accounts payable)
  • Purchasing Assistant (Acts as Procurement Card Administrator)
  • Administrative Assistant
  • Storekeeper
purchasing2
Purchasing

MISSION STATEMENT

The mission of Purchasing is to assist the University to obtain goods and services needed by faculty, students, and staff, to spend the University’s money wisely so that maximum value is obtained for its limited financial resources.

purchasing4
Purchasing

Average processing time from Requisition to Purchase Order is 1.55 days

We do not incorporate Requisitions that require bids into this number

central warehouse
Central Warehouse

Storekeeper

  • Responsibilities
    • Receives all materials shipped to MSU both physically and prepares all reports electronically
    • Shipments made by MSU (receives all shipments)
    • Secures an inventory of ~$220,000 thru issues & receipts
    • Stores and maintains equipment for all departments located on campus
    • Receives & stores all surplus equipment until disposed
    • Makes deliveries to departments of received materials
central warehouse1
Central Warehouse

Note:

If your departments are buying the same supplies repetitively with their procurement card, then those materials could be inventoried in the central warehouse with Purchasing buying for the best value to the University (Save You Money!)

hub data
HUB Data
  • Stands for Historically Under-utilized Business
  • Director of Purchasing acts as Campus HUB Coordinator
  • Purchasing, at minimum, solicits two (2) HUBS for bidding purposes (if at all possible)
  • Two reports to State each fiscal year
    • Semi-annual
    • Annual
hub data2
HUB Data
      • 2012 Goals 2012 Actual
  • Heavy Construction 11.9% 45.7%
  • Building Construction 26.10% 61.2%
  • Special Trades Construction 57.2% 35.8%
  • Professional Services 20% 100%
  • Commodities 12.6% 47.3%
procurement card
Procurement Card

Avg. $147,000 per month

$1,764,000 per year

192 Card Holders

Months

procurement card1
Procurement Card

Avg. 890 per month

10,680 Transactions per year

contract administration1
Contract Administration

Director of Purchasing is now over contract administration

  • Work load has increased over 100% by creating the contract administration office
  • Two people in the purchasing office are handling the contract administration duties
    • The Director of Purchasing
    • The Administrative Assistant

The purchasing office needs to add one additional person to the department to be able to handle the additional responsibilities.

paperless initiative
Paperless Initiative

Question:

How many sheets of copy paper are purchased each year by Midwestern State University?

paperless initiative1
Paperless Initiative

Answer:

  • >8,400,000 Sheets
    • This does not take into consideration what the print shop buys, or what is being purchased via the procurement credit card.

Question:

How many sheets of copy paper are purchased each year by Midwestern State University?

paperless initiative2
Paperless Initiative

Question:

How many dollars does MSU spend each year on toner and ink cartridges for our printers?

paperless initiative3
Paperless Initiative

Question:

How many dollars does MSU spend each year on toner and ink cartridges for our printers?

Answer:

  • > $75,000 per year

This does not include the copy machines located on campus. This cost is built into your lease cost of the copier.

paperless initiative4
Paperless Initiative

Sample of current paperless transactions:

  • Direct Deposits—21,000 Checks - NOT BEING PRINTED
  • Hourly Time Sheets—7,600 copies - NOW ELECTRONIC
  • Purchasing, Accounts Payable, Receiving, Purchase Orders Change orders, Miscellaneous— >60,000 copies per year - NOW SCANNED
  • Student – related – NOW ELECTRONIC
    • Billings - 25,000 electronic
    • Refunds - 7,400 electronic
    • Postage savings of $17,000 in student-related mailings
paperless initiative5
Paperless Initiative

Opportunities:

  • Acculog Software Registrar Office—Graduate & Undergraduate Catalog
    • Potential savings up to $40,000 per print
  • Direct Pay Vouchers > 10,000
  • Monthly Time Sheets > 7,000
  • Budget Transfers > 800
  • W-2’s and W-4’s > 2,500
  • Employment Contracts > 4,000
    • Notice of Employment > 3,000
  • PTF’s> 10,000
  • Routing Sheets & Contracts > 10,000
  • Banner Approval Module for Requisitions > 6,000
  • And many other opportunities throughout campus
paperless initiative6
Paperless Initiative

Summarizing the requirements for a paperless initiative:

  • Original form generated electronically and completed on-line
  • Automatic edits within system
  • Approvals are electronic
  • Routing is electronic
  • Once fully approved, information entered into system automatically
  • Any attachments can be scanned and follows record/form digitally
  • Repository for form/attachments are digital with easy viewing access

What would it take for MSU to create a paperless initiative?

paperless initiative7
Paperless Initiative

Current Capabilities:

  • Banner already has forms for timesheets, PTF’s, budget transfers, requisitions, etc.
  • Electronic approval and routing being used for hourly timesheets
  • Document imaging currently being done in Admissions, Registrar, Financial Aid and Purchasing
  • Exploring the capabilities we currently are paying for and possess within Banner system
  • Cost may be minimal to expand use to other offices and areas
  • Other campuses use for practically all administrative paperwork and files
paperless initiative8
Paperless Initiative

Digital Signatures:

  • Digital signatures post a person’s secured scanned signature onto an electronic or scanned document (such as contracts)
  • Would require additional software outside of Banner
  • Software is compatible with Microsoft Word, Excel, PDF & others
  • Digital signature software costs are estimated to be ~$30,000 plus server, with payback less than one year
paperless initiative9
Paperless Initiative

Suggested Next Steps:

  • Support from senior administration
  • Start a small working group
  • Tackle a minor form (such as budget transfer)
  • Work with one or two departments to beta test
  • Pick the next form to target
  • Roll-out to other departments via good communication, training and support
  • Target 1-2 years for most major forms to go electronic, depending on resources and IT staffing availability