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Procurement Policy Changes April 1, 2011

Procurement Policy Changes April 1, 2011. Highlights of 2011 Changes John Mayes Cary Scapillato March 2011. Agenda. Procurement Transformation Overview Policy Update Executive Summary Specific Benefits Select Metrics Policy Changes Purchasing and payment Invoices Out-of-Pocket expenses

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Procurement Policy Changes April 1, 2011

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  1. Procurement Policy ChangesApril 1, 2011 Highlights of 2011 Changes John MayesCary Scapillato March 2011

  2. Agenda • Procurement Transformation Overview • Policy Update Executive Summary • Specific Benefits • Select Metrics • Policy Changes • Purchasing and payment • Invoices • Out-of-Pocket expenses • Treasury Services • Concerns we’ve heard and how they are being addressed • Resources & Support • Procurement Contact Information

  3. POAP Transformation Overview Purchasing Policies and Procedures establish the foundation for POAP transformation POAP Transformation DONE DONE In Progress DONE DONE 2004 - 2008 FY2011-2012 2009 FY2011

  4. Policy Update Executive Summary… Why are these changes necessary? • To streamline business processes • Increase efficiencies and lower costs • Improve internal controls What benefit will these changes bring to the University? • Improves Yale’s ability to negotiate and take prompt payment discounts • Get it right the first time with upfront charging collection, validation, and approvals • Negotiate the lowest costs for goods and services through increased preferred vendor usage (via SciQuest) What are the preferred methods of procuring goods and services? • SciQuest purchase orders and the Yale PCard

  5. Specific Benefits What are the benefits of using SciQuest PO’s for a department? • Increased likelihood of “getting it right the first time” with upfront charging collection, validation, and approvals • Reduced rework due to upfront collection and validation of charging instructions • Improved visibility of outstanding liability by creating financial commitments • Streamlined payment processingwith more purchase order transactions • Reduce vendor inquiries and more on-time payments • Increased savings from prompt payment discounts • Reduced paper handling due to automated approval workflows for requisitions and invoices • Less time on after-the-fact financial reviews of transactions because of built in up-front preventative controls

  6. Select Metrics

  7. Purchasing and Payment Effective April 1 Pilot April – June

  8. Purchasing and Payment Pilot April – June Effective April 1 Pilot April – June

  9. Invoices Effective April 1

  10. Out-of-pocket expenses Effective April 1 Effective April 1

  11. Concerns we have heard • Self approved Sciquest purchases <$200 cause risk in units in which the initiators are not familiar with policies and charging instructions • Use of SciQuest/PCard for most commonly used goods & services needs to be addressed in some areas • SciQuest only takes VIP numbers which creates problems in departments that use only PTAEO • Reduction in PCard non-travel limits to $2,000 could cause issues in some departments • Training may need to be offered more frequently during the implementation period • Departments may need help training on initiator, preparer & approver roles • More time may be needed for change management in some departments

  12. How we are addressing concerns • Use pilot approach for policy components that cause concern (SOM, Beinecke, Child Study Center, Genetics) • Includes • Use of Sciquest as primary purchasing method • Sciquest auto-approvals <$200 • Reduction of P card limits to $2,000 • Pilot period 4/11 to 6/11 • Remind departments about web training for SciQuest • Add additional SciQuest classroom training sessions during the implementation period if needed • Provide a streamlined version of the ORA “Lab Staff” training curriculum as a web reference guide • Procurement and Controller’s Office to monitor impact of changes and exceptions to policies (may need increased reporting for departments) • Review and finalize department and central process owner pre-implementation readiness activities

  13. Resources & Support • Purchasing Policy 3201 and Procedure 3201PR • At-a-Glance Purchasing Policy 2011 • FAQ’s Purchasing Policy Revision 2011 • Online SciQuest traininghttp://yalebiz.yale.edu/transactions/sciquest • Yale Procurement Buying Guide http://buying-guide.yale.edu/

  14. Procurement Contact information • For Purchasing Questions: Purchasing Services HelpDesk purchasing.helpdesk@yale.edu (203) 432-9955 • For Payment Questions: AP HelpDesk aphelpdesk@yale.edu (203) 432-5394 • For Procurement Systems (Oracle, SciQuest, EMS) Questions: ITS HelpDesk helpdesk@yale.edu (203) 432-9000

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