Cal Poly Procurement Activities for Year-End Closing

1. Cal Poly Procurement Activities for Year-End Closing Matthew Roberts, C.P.M., CPP, MBA Director of Contracts, Procurement & Risk Management, Cal Poly State University Year-End Legal Training May 2010

2. Overview of Y/E Procurement Activities • Campus Business Practices • Y/E Finance Team • Procurement Y/E Closing Steps Year-End Legal Training

3. Campus Business Practices • Year-End Balances Roll Forward • Not the same Rule for all CSU campuses • Requisitions (pre-encumbrances) removed from Balancing Calculations • Memo notation only • Multi-Year Agreements • Only funded for the current year encumbrance • Y/E line closed - “Liquidated” • Next fiscal year funds added after Y/E closing Year-End Legal Training

4. Year-End Finance Team • Y/E Finance team includes Procurement • Procurement participates in all status meetings • Procurement activities start in February annually • Front-end efforts facilitate a smooth closing • PO staff take responsibility for their agreements Year-End Legal Training

5. PO Closing Outline • March • Finance issues Year-End Memo • Campus cut-offs (aka, Deadlines) • Start updating draft in February • PO milestones through Y-E scheduled • Weekly PO team meetings start up Year-End Legal Training

6. PO Closing Outline • April • PO staff review all Multi-years (MY’s) • Expirations • Extensions • Changes • Public Works (PW’s) agreements reviewed • Changes • Close outs • Extensions Year-End Legal Training

7. PO Closing Outline • May • High Dollar Req’s are processed • Bid, Sole Sources, Contracts • High Dollar Cut-off monitored • Future Year (FY) PO process • Identify and monitor FY Req’s & PO’s • Only place critical FY in this fiscal year • FY’s processed after Y-E close Year-End Legal Training

8. PO Closing Outline • June • Review Annual Agreements (AA’s) • Renew as appropriate • Evaluate for possible MY’s • Close AA’s to “actuals” when needed • Review all open Req’s • Process or cancel • Review all open orders (PO’s) • Run Open PO Query and review • Close and change as needed • Run PO reconciliation to close “danglers” Year-End Legal Training

9. PO Closing Outline • June – continued • Daily team meetings with Finance team • Req’s are continually reviewed until closing • Looking for expedites and FY’s • Place Low Value PO’s • Last cut-off = First week June for PO • Process final Change Orders • Place any remaining High Dollar PO’s Year-End Legal Training

10. PO Closing Outline • June Continued • June 30th (Last day activities) • Between 7 am & 2 pm all PO activities completed • Between Noon & 2 pm – all receiving and AP activities completed • Current Year Purchasing Module closed at 2 pm • PO runs PO Activity report and exports .csv file • Between 2 & 4 pm Finance team runs GL15 • Between 4 & 5 pm Finance team completes all accruals • 5:00 pm – go home Year-End Legal Training

11. PO Closing Outline • July = New Year • PO staff take a well deserved vacation! • The fun begins for the rest of the finance team • Very soon after that Finance team closes the campus legal books. • PO staff add new lines for new fiscal year to MY’s Year-End Legal Training

12. Resources • Year-end Memo (example) • Year-end Activity Schedule (PO area) • Year-end Checklist (Finance area) • Open Purchase Orders Query (example) • Open Purchase Order Activity Report (PS example) • Departmental MY Listing (XL spread sheet) Year-End Legal Training

13. www.calstate.edu Year-End Legal Training