Achieving Procurement Excellence in the Animal Resources Center

1. With the Animal Resources Center October 26, 2009 Achieving Procurement Excellence

2. Outline • Administration Excellence • Mission • Vision • Goals • Financial & Procurement Services • Financial Controls/Roles & Responsbilities • Procurement Cycle • Process Improvements • Faculty of Medicine and McGill MarketPlace • PCards vs. MMP • Our Experience • McGill MarketPlace • Approval Process

3. The Mission Transform the Faculty of Medicine’s administrative infrastructure into one that supports the vision and mission of the Faculty in its role of teaching, research and service to the community.

4. Our Vision Develop administrators who are: Knowledgable in all aspects of administration Integral part of our Learning Collaboratives Supported by: An Administration Excellence team at the Faculty level A web portal specifically designed to their needs On-going training and mentoring To achieve efficient, cost effective administrative units

5. Goals Mastery in all aspects of department administration: Student Centered Stewardship – undergrad to post-grad to doctoral to post doctoral Human Resources – recruitment to retirement or exit Financial Services – financial management of the Faculty, its departments, and research funds Facilities Management – responsible management of all facilities Stakeholder Affairs – relations with donors, alumni, students & faculty

6. Financial & Procurement Services • Financial Controls • Roles & Responsibilities • Procurement Cycle • Process Improvements

7. Financial controls MMP Purchase Requisition with FOAPAL A Virtual Shopping Mall Budget Availability Checking Free form (non-catalog) req Local Approval Roles & Responsibilities Integrated with Minerva/ Banner

8. Roles & Responsibilities clarified FOAPAL

9. Procurement Cycle Initiate request for goods/services (6) • Identify business requirement for purchase • Estimate cost of purchase • Ensure funding is available Issue Payment (2) Selectvendor(s) • Identify potential vendors • Obtain written quotation • Review terms of purchase, warranties, return policies (5) Receive and Verify Invoice (3) Place Order • Depending on size and/or nature of the order, written confirmation of terms may be required. (4) • Ensure that information on the invoice (i.e. price, quantity, quality, etc) matches the information contained in the original purchase agreement • Obtain approval to issue payment of the invoice Goods/Services Received • Ensure that terms of purchase/sale are met, i.e. quantity, quality, etc. McGill MarketPlace

10. MMP - Communication Tool The only point of entry for any radioactive material purchases – full integration with Hazardous Materials Management System (November 2009) Intervention on foreign purchases to clear customs Terms and conditions to protect you Bill 17 – Act Respecting Contracting by Public Bodies will be respected All orders > $100K require public bid Contracted or preferred vendors University Signing Bylaws are respected

11. Process Improvements PO’s to catalog vendors <$2500 bypass Procurement Services’ approval Issued daily by Procurement Services if approved by 3:00 p.m. Inappropriate, frozen or terminated funds not available for selection Cost Sharing FOAPALS can be applied by line item Avoid after-the-fact manual adjustments Create complicated annual maintenance contracts only once and copy Audits will be directed to Accounts Payable

12. Seamless Integration with Finance Budget Availability Checking MMP will verify if you have sufficient balance on the fund(s) charged to cover the order Considers ‘pipeline’ transactions (already completed but not yet posted to FOAPALs) If insufficient funds Requestor will receive an ‘auto disapproval’ email and the order is cancelled Simply copy the original order, make changes, and resubmit Helps you to avoid over-expenditures

13. MMP Steps Verify, Edit and/or Create Profile Shop with this profile Create Cart • Profile Data • Shipping Addresses • FOAPAL Favorites • Hosted Catalog • Punch-Out • Non-Catalog Select Vendor Add Products • Rename Cart • Add Internal Note • Add External Note • Edit Item Details Edit Cart • Transaction Date • Ship to Address • Delivery Date • FOAPAL information Review A Shopper will assign cart to a Requestor Place Order Assigned Cart Requestor will continue to complete the order • View Requisition Status (MMP) • View Approval History (Minerva) View Requisition History

14. Payment Request Form still used for non-order payments Payment to Vendor Outside of Procurement Cycle • Membership dues • Course registration • Subscriptions • Payments to individuals for living and clothing allowances • Subject fees originated by the paying • department. • Institutional advances and transfers relating to research • grants Non-Invoice Payments

15. Faculty of Medicine & McGill MarketPlace • Procurement in the Faculty • MMP Experience • PCards vs. MMP • What worked/What didn’t? • McGill MarketPlace • Approval Process

16. Procurement in the Faculty Goal: Best-in-Class procurement practices for the Faculty of Medicine Tool: McGill Marketplace “MMP” • Web based purchasing tool to • Get it right the first time & • Significantly reduce administrivia

17. MMP Experience • Proactive management of funds and budgets • Users will not go back to PCards: • Just as fast • Better control over spending • Significant reduction in administrivia • When it hasn’t worked & why? • Spending over budget • Routines not respected • Approvals not in place

18. PCard Vs MMP • MMP - Pro • Accessible 24/7; • Same day order turn around time and in many cases next day delivery; • You decide who can make purchases in MMP; • You can approve the transactions before the order is made and charged to your FOAPAL; • Track what purchases are being made and by whom; • Invoices sent directly to Accounts Payable; • You cannot buy goods with insufficient funds. • Vendor is not paid immediately (net 30 days) • PCard - Pro • You order goods with a phone call • Your goods are delivered • PCard – Con • After the fact reconciliation – you must approve on MOPS and add a FOAPAL; • You must store original invoices in orderly fashion for 7 years – subject to after-the-fact compliance reviews; • You cannot easily identify what was purchased without going back to original invoice; • Card sharing – you cannot easily identify who made the purchase – vulnerability to fraud; • The charges are automatically charged to your FOAPAL without approval; • Significant delays for replacement cards. • Vendor is paid immediately

19. MMP in Anatomy & Cell Biology and Pharmacology & Therapeutics • What worked? • Securing the Department Chair’s complete support; • Presenting an information session to ALL Fund Financial Manager’s (FFM’s) and their purchasers; • Partnering with Financial/Procurement services to ensure questions/concerns/comments could be addressed immediately • Ensuring everyone was setup prior to “Go-live training” • Administrator being very pro-active post “Go-live training” • What didn’t? • Delaying the “Go-Live training” date - should be done no more than 2 or 3 weeks following this info session; • Lecture style training session with little hands-on – live examples from A-Z with active participation are the best approach.

20. MMP in Anatomy & Cell Biology and Pharmacology & Therapeutics • Importance of the Behind-the-Scenes work of the Administrator was crucial in: • Communicating with the FFM’s and purchasers • Reserving dates and rooms that best suited everyone (for the most part) • Worked with each FFM to: • Explain what was needed to be done • Assist with the decisions that needed to be made prior to “Go live” • Worked with each FFM to enter required information in Minerva • Communicating all issues/comments/feedback

21. McGill MarketPlace Preparing for Unit enablement

22. McGill MarketPlace • It is your virtual shopping mall at McGill • You can: • View, compare, search for products • Order products charging FOAPALs • Shop from multiple online catalogs using a shopping cart • Save a list of favorite products • View order history

23. Complete and Order using FOAPAL(s) • Can assign FOAPAL per line item or globally • Can have zero $ line item • User shopping profiles will allow for FOAPAL favorites • Purchase Requisitions approved locally by FFM (Fund Financial Manager) or delegate • All Purchase Orders will be sent to vendor

24. Objectives • Provide a one-stop shop for all purchasing of goods & services requirements • Save money across the University by negotiating better pricing • Easier access to purchasing data • Improvement of processes and financial controls

25. Why? • Single access point for your purchases • Secure environment for making purchases which reduces risk of abuse ( i.e. PCards) • Increases control over who can make purchases • Instant validation of available funds

26. Why? • Better tracking of expenditures to budgets • Better control over purchasing & therefore spending • Elimination of duplicate orders • Significant reduction in “wrong charges” i.e. incorrect FOAPALs being used • Significant reduction in PCards which frees us up from the bureaucracy necessary to replace PCards

27. Why? • Reduces administrative tasks such as: • No post purchase reconciliations to PCards (no need to approve in MOPS) • All invoices will be sent directly to Financial Services • Document retention is managed centrally therefore no need to keep paper records in departments or labs • Frees up department heads, administrators, PI’s…to proactively manage their funds and budgets

28. Approval Process for Purchase Requisitions Budget Availability Checking (if applicable) Otherwise auto-disapproved Local queue (one per fund) Central queue (one per group of funds) PR  PO Sample Threshold Level 1 Auto Approval < $1,000 10 FFM* delegate(s) > $1,000 20 FFM(s) > $10,000 50 Fund Administrator with possible escalation > $ depending on funding source Requisition posted PO issued *FFM = Fund Financial Manager

29. Manage My Records and Approvals myMcGill Link in email Minerva

30. Useful Web links McGill Contracted Vendors (Secured site - sign in required) • https://home.mcgill.ca/procurement/vendor MMP Tutorials • http://www.mcgill.ca/purchasing/buy/marketplace/tutorials/#1 Procurement Administration Tutorials • http://www.mcgill.ca/financialservices/training/tutorials/procureadmin/ Approvals Tutorials • http://www.mcgill.ca/financialservices/training/tutorials/approvals/

31. Your 1st point of contact for support Faculty of Medicine HelpDesk 398-5656 AdminHelp.med@mcgill.ca Guide, Tutorials and How-To documents • MMPwww.mcgill.ca/purchasing/buy/marketplace/tutorials/ • Finance Controlswww.mcgill.ca/financialservices/handbook/policiesandprocedures/payment/

32. Central Support available • Procurement Services – Purchasing policy and procedures • Marketplace.purchasing@mcgill.ca • Finance Helpdesk – Setting up Requestors, Delegating Approvals, Approving Documents • (514) 398-4400 ext. 04596 or 04597 • FIShelp.acct@mcgill.ca • ICS service desk – For system support • (514) 398-3398 • Support.ist@mcgill.ca

33. What’s next • You will be invited to a McGill Marketplace implementation workshop where you will learn: • How to get setup in MMP; • Know what role you have in MMP; • How to make it work efficiently for you; • How to track & expedite your orders; • How to perform approvals (if implicated); • How to manage these events and records.

34. Wrap up • The Faculty of Medicine commits to providing you with an ongoing support system to ensure a smooth and easy transition to using McGill MarketPlace; • With your support, by November 30, 2009 Animal Resources Center will be a recognized MMP benchmark for the Faculty of Medicine.