Purchasing

1. Purchasing TSS Workshop August 10, 2012

2. Agenda • What’s Different This Year? • New Initiatives for 2012/13 • VISA – Performance and Problems • Purchasing “Competition” • Your Questions

3. What’s Different This Year? • Local Purchase Orders (LPOs) • Filling out a paper form AND putting on system anyway (inefficient) • Board Policy Change (effective 07/01/2012), LPOs: • Must be for an amount less than $1000.00 • Must be to a local vendor (Laramie County Zip Code) • Cannot be for something you pay every year (subscriptions, services, etc.) • EXCEPTIONS – 1) when the payment requires confidentiality (usually HR-related) 2) travel reimbursements for employees • VISA • Read the cardholder manual • Don’t use VISA to “get around” prohibitions elsewhere and ask “forgiveness” later • Activities • District Supply Contracts • Emphasis this year will be on strict compliance • Cardholder agreements are due to Purchasing by October 1st • Personal liability ($) for unauthorized purchases • Loss of card(s) • (There’s really nothing new for you to do with VISA that you shouldn’t already be doing) • Inventory • We haven’t done effectively since 2008/9(?) • We’re going to reestablish the inventory procedures this year • We’ll evolve to a compliance requirement next year and beyond • Stay tuned for more information …

4. New Initiatives for 2012/13 • SAP Replacement • It could be a newer version of SAP, it could be something entirely new • We’re seeking as little customization (complexity) as possible • Secretary/Bookkeeper participation is planned during the evaluation step • Plan is to “go live” (system cutover) in January 2014 • LOTS of work with this one …. • Copier Replacement • This is the last year of the IKON/Ricoh contract • You’ll be asked for information to better tailor our fleet to the functions you need most often • Service/Maintenance will be critical • “Print Management” program (?)

5. VISA TOTALSJUL 2011 – JUN 2012 SY 2011/12 Total: $5,208,495.02 Activity Total: $567,883.97 Fraud, Waste, and Noncompliance: $81,293.99 Bank Rebate: $50,017.99 1.56% FWNC FRAUD: Use by other than District Employees (Phishing, etc.) – Reported to Bank, card cancelled WASTE: WY Sales Tax, Freight on Contract Items, etc. NONCOMPLIANCE: Purchases not initially in compliance with Board policy

6. VISA • VISA is still the “riskiest” purchasing tool • VISA is still the most “flexible” purchasing tool • Overall • #1 Issue: Activity Spending • #2 Issue: Agenda quality – (Agendas MUST cover the five “W”s: who, what, ...) • #3 Issue: Using VISA to circumvent existing contracts • Activity Fund • Activity Handbook says “no meals for in-district competitions” (9/2010) • NOT TO BE USED TO BENEFIT STAFF (meals, clothing, etc.) • Receipts need to be accompanied by student organization and sponsor approvals (Senate or club minutes, etc.) • There will be more scrutiny of Activity purchases in general this year

7. COMPETITION! The Rules: - The first person who provides the correct answer receives a treat and a tally mark for the grand prize - If you don’t answer all of a multi-part question correctly, someone else can steal it - Yes/No, short answer, and multiple choice questions - Whoever has the most tally marks at the end draws for a grand prize NOTE: District Funds were NOT used to purchase treats and prizes

8. QUESTION #1: Who should you contact when you have questions about or issues with Office Depot? CORRECT ANSWER: KAMMI CORMAN at extension 10307

9. QUESTION #2: Name three (3) purchases that require you to create a non-capitalized (“Z-class”) Asset? CORRECT ANSWERS: - Computers, Printers, iPads, iPods, Nooks, Kindles - Projectors, SMART Products, document cameras - Mowers, Snowblowers, Custodial Machines - Appliances - Anything else you want to track in inventory

10. QUESTION #3: Who should you contact when you have a problem with your copier? CORRECT ANSWER: The DOT Service Desk at extension 10630

11. QUESTION #4: Which of the following travel expenses are limited or capped?A) AirfareB) BaggageC) HotelD) Per Diem (Meals)E) Airport Parking CORRECT ANSWER: All of these expenses are limited or capped EXCEPT for “Airfare”

12. QUESTION #5: Name three circumstances that may cause a Purchase Card (VISA) to be declined: CORRECT ANSWERS: - The type of Transaction (sporting goods, organizations, etc.) - The card hasn’t been set up for travel-related expenses - The limit on the control account has been exceeded - Multiple transactions at the same vendor in a short period of time

13. QUESTION #6: What is the best way to save a Purchase Request (PR) if you are interrupted in the middle of it? CORRECT ANSWER: Save it. Write down the PR Number. When you come back later to finish, create a new PR but put a statement in the “Item Note” for the first line that you want it combined with the PR number you wrote down earlier

14. QUESTION #7: What are the four (4) Purchasing “Dollar Limits”? CORRECT ANSWERS: - $1,000 cutoff for using a LPO - $2,500 for Professional Services (consultants, etc.) - $7,500 for Facility or Construction-related services - $10,000 for Commodities and all other services - $25,000 for Commodities and ALL services

15. QUESTION #8: In which text field should you place your asset number(s) when you enter a Purchase Request (PR)? CORRECT ANSWER: Enter it in “Delivery Text” – it will then print on the receiving report and expedite delivery

16. QUESTION #9: Should you put delivery text in EVERY line of a Purchase Request (PR)? CORRECT ANSWER: YES!

17. QUESTION #10: At what dollar limit is it necessary to create a capitalized asset for a purchase? CORRECT ANSWER: $5,000 and above

18. QUESTION #11: Can you use a “supplies” budget (4100) to order an item requiring a capitalized asset? CORRECT ANSWER: NO! (Use 5000-series)

19. QUESTION #12: Does a computer require the use of a material master on the Purchase Request (PR)? CORRECT ANSWER: YES!

20. QUESTION #13: Which two (2) departments must you notify if your Principal wants to enhance or modify your building? (Example: a new school sign) CORRECT ANSWERS: - The PURCHASING department - The PLANNING AND CONSTRUCTION department

21. QUESTION #14: Your Administrator wants to use his/her VISA card to order gifts for the staff for doing such a great job this year. Which budget item should he/she use? CORRECT ANSWER: NONE! (Gifts for staff are prohibited, See your VISA Card Manual for it and other prohibitions)

22. QUESTION #15: What does ordering something on a reservation (i.e. warehouse stock) have in common with ordering a computer? CORRECT ANSWER: Both are ordered using a material master

23. QUESTION #16: Your department just replaced its office furniture. You know that your church has been looking for some extra office furniture. How much should you charge them for it? CORRECT ANSWER: Buildings and Departments aren’t authorized to sell or donate ANY district property, whether to outside entities OR to employees. ALL surplus items MUST be processed through the Central Warehouse. Contact Lisa Sharp at extension 11374

24. QUESTION #17: Which column should you enter the material master number in when you’re creating a Purchase Request (PR)? CORRECT ANSWER: Enter the Material Master Number In the “Material” column

25. QUESTION #18: Your department administrator has provided you three quotes for a staff development guest speaker. The lowest quote is $1,500 and from Fort Collins. Which purchasing instrument(s) can you use?A) Purchase RequestB) Local Purchase OrderC) VISA • CORRECT ANSWER: You need to create a Purchase Request and send the quotes to Purchasing. • Because the amount is over $1,000 and the vendor is outside Laramie County, you can no longer use a LPO • Consultants and contractual services are prohibited purchases, as defined in the Card Holder Manual

26. TIE BREAKER/BONUS: Your card control account has a limit of $100,000. You also have 40 Purchase cards, each with a limit of $5,000. What is your total purchase card limit? CORRECT ANSWER: $100,000. Although each card has a $5,000 limit – or $200,000 total – your control account ultimately establishes your limit

27. Questions?