Implementing Purchase-Cards at MESD

1. Implementing Purchase-Cards at MESD User Training

2. Why Are You Here?To Change the Paradigm of MESD Procurement

3. Why?MESD Budget Equalization • Loss of General Fund Budget • Business Office Reductions • Single Purchasing Agent for Agency • Supervisor • Co-op Inventory Control Responsibilities • Co-op Cycle Order Coordinator • Purchasing Rules/Process/Policy/Training/Tech Assistance • Simply Put, there is no-one available to process your requisitions in a timely fashion

4. Benefits of the Procurement CardThe “Silver Lining” • Purchasing Authority is delegated to Programs • Increases Your Flexibility & Response • Allows Business Office to have you provide services to your own programs without additional purchasing employees

5. Why are we Certifying You? • You are being trained for a job you haven’t done or been responsible for before now • You will have a different type of credit card in your hands • More Spending Authority • Greater variety of potential items to buy

6. Training & Certification – This is the Certification Program: • 1. The Paradigm Shift & Ethics of Purchasing • 2. Purchasing • 3. P-card program administration • 4. Q & A • 5. Exam • 6. Certificates

7. 1. The Paradigm Shift & the Ethics of Purchasing

8. The Paradigm Shift • YOU are now the government purchasing agent • YOU become the focal point for justifying your actions • YOU become the object of any media or legal attention as to your actions (along with MESD)

9. Pcard Purchasing Prerequisites • Certified by MESD Business Office • Approval of your Department to make Purchase • Budgetary approvals (what $$$ ???) • Proper Purchasing Procedures • Ethical Use Determination

10. Government Standards & Practices Commission (GSPC) Jurisdiction • The jurisdiction of the GSPC is limited to the following areas: • Use of public office for financial gain (ORS Chapter 244) • Conflict of interest (ORS Chapter 244) • • Statements of Economic Interest (Chapter 244) • • Executive session provisions of Public Meetings law (ORS 192.660) • • Lobbying regulation law (ORS Chapter 171.725 — 171.785;;171.992)

11. Definition of “Public Official” • ORS 244.020(15) defines a public official as "any person who… is serving the State of Oregon or any of its political subdivisions or any other public body of the state as an officer, employee, agent or otherwise, and irrespective of whether the person is compensated for such services.“ This definition includes: • volunteer members of a soil and water conservation board • Chancellor of higher education • Governor • Clerk in a branch office of a state agency • Persons who serve the state or a political subdivision by performing government services under a contract. • It is important to note that a person who was a public official at the time of an • alleged violation will be subject to the authority of the GSPC, for a period of four • years after the alleged violation, regardless of whether or not the person is still a • public official at the time a complaint is filed.

12. The Ethical Issues (cont) • Use of Public Office for financial gain – • "No public official shall use or attempt to use official position or office to obtain financial gain or avoidance of financial detriment that would not otherwise be available but for the public official’s holding of the official position or office..."

13. Frequent Flyer Miles For example, free camera case with camera purchase. All goods/services/benefits associated/received with P-Card purchase belong to MESD. If you use them for personal use = potential violation of ethics regulations “Free Admissions” Waived Fees Financial Gain Avoid Detriment

14. The Ethical Issues (cont) • Conflict of Interests - • A potential conflict of interest occurs when a public official takes official action that could affect the financial interests of the public official,or the official ‘s relatives or businesses with which they are associated. • An actual conflict of interest occurs when a public official takes official action that definitely would have such an effect.

20. Purchasing • Less than $4,500.00 for goods, equipment & services • From $4,500.00 up to $75,000.00 for goods & equipment—but not services…and a three-quote process is required

21. Coordination • FACILITIES SERVICES: If you are going to use a trade service contractor to glue, nail, screw, drill, use concrete or repair at a MESD or even at a non-MESD site. Mark Wheeler, Facilities Services Supervisor X1786 • TECHNOLOGY SEVICES: If you are purchasing technology related items that will work with the network or for which you expect support from T.S. Gary Nelson Technology Services X1541

22. The Purchasing Process • Your Needs are clearly specified and understandable by a bidder • All bidders are treated fairly and equally in an open and competitive environment • It is in a written format (email, fax or letter) • The award results are public information • A written record is maintained for filing and fixed asset identification

23. APPENDIX I Small Purchase Process for FY 2004-05 Use Only Item/System Value less than $4,500 Guiding Principle: Your purchases under these procedures should be above reproach and not present the appearance of impropriety…. If in doubt, ASK! If you CANNOT ask, then DON’T! As a matter of the high ethical standards of MESD, each individual will refrain from participating in any purchasing business which is being conducted with individuals or vendors whom you have a close personal, professional or family connections. If this situation is anticipated or encountered, transfer the purchasing activity to another person to accomplish AVOID SPLIT REQUIREMENTS !!! 1.Contact desired competitive vendor and describe service / item desired, quantity & timeframe. 2.Use designated bankcard to purchase item from vendor. 3.If vendor doesn’t accept P-Card, DO NOT PURCHASE – Contact Purchasing Services for purchasing options. 4.Otherwise comply with the Local Contract Review Board rule 125-310-020.

24. 2004-05 Procurement Card Process Supplies/Equipment Informal Bid Process (3-Quote) APPENDIX J Item/System Value - Exceeding $4,500 but not exceeding $75,000 Guiding Principle: Your purchases under these procedures should be above reproach and not present the appearance of impropriety…. Remember: You are NOT authorized to purchase SERVICES over $4,500 with the Procurement Card at this time. Remember: You are NOT authorized to purchase ANY Supplies or Equipment exceeding $75,000 If in doubt, ASK! If you CANNOT ask, then DON’T! As a matter of the high ethical standards of MESD, each individual will refrain from participating in any purchasing business which is being conducted with individuals or vendors whom you have a close personal, professional or family connections. If this situation is anticipated or encountered, transfer the purchasing activity to another person to accomplish. 1.Using the “Price Quotation Summary” worksheet, clearly detail your needs in writing so that all bidders can understand them. 2.Contact minimum of 3 Competitive Vendors . (FOB destination and give zip code 97220) a.Specify you are obtaining competitive quotes (Describe service / item desired, quantity & timeframe). b.Caution: you are required to communicate identically to each vendor. Complete Price Quotation Summary form. c.Request written quote if possible (email, fax, letter, etc.). 3.Use designated P-Card to purchase item from lowest bidder. If lowest bidder doesn’t accept the P-Card, DO NOT PURCHASE – Submit the Price Quotation Summary form and a requisition to Purchasing.

25. APPENDIX D Multnomah Education Service District REQUEST FOR QUOTATIONS (GOODS) This is a Request for Quotation only and not an order Multnomah Education Service District is seeking competitive quotations on the following item(s), based upon F.O.B. Destination, at: Ship To Address: (type Ship-to Address here) QTY UNIT DESCRIPTION UNIT QUOTE PRICE EXTENDED PRICE $ $ $ $ $ $ $ $ $ $ See attached list. Delivery is requested by (date). Please note if you cannot comply with this request. Quotes are due back no later than (time) on (date). Please respond by (e-mail, fax, etc) at (e-mail address or fax number), Attn: (Your name) If you have questions, please feel free to contact me at (your phone no. or e-mail address). Quoter’s Name: Quoter’s Company: Quoter’s Telephone/Email:

27. Miscellaneous Purchasing Issues Remember: No Split Requirements! MESD Website Established Contracts Samples/Gifts Talk to Purchasing……… Mike Mlynarczyk x1791

28. 3. P-Card Program Administration

29. History of Procurement Card The Government Finance Officers Association (GFOA): • 1995 published its first guideline • 1998 recommends governments explore the use of P-Card to improve the efficiency of their purchasing procedures • 2003 published a recommended practice The Internal Revenue Service: • 2004published final regulations for 1099 reporting pertaining to P-Card purchases for contract services

30. What is a Procurement Card? A credit card issued by Bank of America, to • An individual agency employee, or • A department, or • For a specific purpose For purpose of making authorized purchases within certain limits.

31. When to use the card ? • To the maximum extent possible. • Purchases can be made • In person • By phone • By fax • The internet

32. Why use Procurement Card? The use of P-Card is intended to • Promote efficiency in the procurement of goods and services • Provide a convenient method for obtaining goods and services

33. Department Responsibilities • Physical Security/Control for Cards • Control Use/Restrict Abuse • Keep all receipts, invoices, packing slips and quotation documents • Reconcile Monthly Statements • Return statements to Business Services each month within 3 days of receipt, with account codes to be charged and signatures • Provide all documentation for review during audits.

34. Department Responsibilities (Cont.) • It is suggested that card users complete the P-Card transaction log after each purchase. This log is used to track purchases and ensure all proper documentation has been obtained, and then used to reconcile to the monthly bank statement.

36. Department Responsibilities (Cont.) Personal Services Contract • Collect a W-9 form for payment that exceeds $600.00 annually and forward to Business Services. Fixed Asset • Good that exceeds $5,000 is considered inventory item. Make a copy of packing slip, invoice, etc. and forward to Business Services.

37. Business ServicesResponsibilities Pay the monthly statements by the due date and to the correct account Review P-Card activity for proper usage and produce required IRS 1099 form Provide opportunities for initial and annual refresher training every month. Conduct quarterly P-Card User Group (PCUG) meetings for all users for additional training, information transfer, updates and policy guidance needs. Conduct internal audit

38. INTERNAL AUDIT Business Services will conduct audits to monitor compliance with agency policy on purchasing, card usage, record keeping and ethics. For example, we may check that: P-Card log is accurate and all receipts have been obtained Documentation for competitive bid is maintained Account limits have been adhered to Expense transactions have been authorized Inactive accounts have been closed P-Card based purchasing has been consolidated when practical Instant P-Card activation and deactivation procedures have been used appropriately (dept. card and ghost account) Exit procedures have been updated to add a specific line item for collecting the P-Card

39. Lost Receipts In the unlikely event that you have misplaced your receipt, you must fill out the Lost, Stolen or Missing Receipt form and submit it to your director for approval. This form is available in your manual and on the agency web site

40. Records Retention All receipts, invoices and P-Card Transaction Logs, bank statements and quotation forms are to be kept as follows: • Expenditures of federal funds: 5 years after final or annual expenditure report accepted. • Other records: 2 prior years

41. Who is eligible to use Procurement Card? Regular employees who have successfully completed initial and annual refresher training Limited Temp/Seasonal employees who have successfully completed initial or annual refresher training

42. Who is NOT eligible to use Procurement Card? Employees of temporary staffing agencies Outside contractors/consultants Employees on extended leave such as FMLA, Medical, Disciplinary and other leaves of absence Employees who have not successfully completed initial or annual refresher training

43. What is the purpose of the manuals? Minimize MESD’s exposure to legal liability from inappropriate use of P-Cards through training of card users Ensure appropriate internal controls are established within each department procuring with P-Card. Ensure that goods and services are obtained in an ethical and competitive manner

44. Unapproved Uses • Frequent Flyer Programs • Percentage Off Programs • Gift Cards, etc. • Personal Purchases • Cash or cash-type transaction • Purchase of items expressly prohibited by policy • Habitual late submission of transaction log/continual receipt loss

45. Unapproved Uses (Cont.) • EScrip Program • A resource for fundraising where participating business partners contribute a percentage of your credit card purchases to the school, group or organization of your choice.

46. The use of EAGLS of BOA • A secure, web-based expense management tool • Allows you to perform administrative tasks online • Provides automated reporting tools

47. Potential Problems • Suppliers that do not accept credit cards • Blocked Merchant Category Codes • Returns • Disputed Charges

49. Date: Cardholder Signature: Cardholder Name (Please PRINT): Cardholder Job Title: Department: Work Phone: APPENDIX A PROCUREMENT CARD AGREEMENT As a holder of this Procurement Card: ¨I confirm that I have read and understand the terms and conditions of its use: üI MAY NOT use the procurement card for the restricted commodities set forth in the Manual. üI must follow any additional restrictions as described by my Department. I have been informed of and understand my Department’s restrictions (these restrictions may include spending limits and requisition protocols). üI understand that misuse of this card may result in disciplinary action, up to and including TERMINATION of employment. üI understand MESD and/or my Department will audit the use of this procurement card. üI understand that I must reconcile my transactions within the time limits specified in this manual. Failure to do so may result in forfeiture of the card. ¨I understand my Department is liable to Bank of America for all charges made by me. ¨I agree to allow MESD and/or my Department to collect any amounts owed by me even if I am no longer employed by MESD. ¨I understand MESD and/or my Department may terminate my rights to use this card at any time for any reason. ¨I agree to return the card to my Department immediately upon request or upon termination of employment. ¨I acknowledge receipt of the Procurement Card procedures manual, and agree to comply with the terms and conditions in this and any subsequent revisions of this manual. ¨I agree to accept responsibility for the protection and proper use of this card according to the terms set forth in the manual. ¨I will immediately report theft/loss of card and/or difficulties with the card to the central administrator in my Department, and to the Procurement Card Administrator, Business Services Department I acknowledge receipt of Purchasing Card # _______________________with a monthly limit of $________________And a Transaction Limit of $________________ Distribution: Business Services – 1 copy Cardholder Supervisor – 1 copy

50. Questions & Answers Remember:Regular review is the most reliable means to ensure the card is used properly.