Procure to Pay Services
Information
Roadshow
Procurement Services
August 2013
Procure to Pay Services
•
Welcome
•
Introductions and Agenda
– Procure to Pay Services Annual Report 10 minutes
– Contracts 15 minutes
– Insurance and Prevailing Wage 10 minutes
– Accounts Payable 5 minutes
– Procurement Commodities & Strategic Sourcing 5 minutes
– eBusiness Solutions 5 minutes
– Finance Customer Care 3 minutes
Procure to Pay Services Annual Report –
Accounts Payable
Fiscal Year 2013, volume of invoices processed by
Procure to Pay Services increased by over 2%. 175,141
invoices were processed in the fiscal year.
0 50000 100000 150000 200000 250000 2008 2009 2010 2011 2012 2013
Procure to Pay Services – Annual Report
Accounts Payable cont.
These checks and electronic funds transfers were made
to 13,267 unique suppliers in fiscal year 2013. This is
over 33% decrease since 2008.
0 5000 10000 15000 20000 2008 2009 2010 2011 2012 2013
Purchase Orders
The volume of purchase orders issued increased by over 100% in fiscal year 2013. This increase is largely due to the implementation of BobcatBUY.
Transferring the procurement of goods and services from direct payments and purchasing card transactions to purchase orders decreases the risk to our
institution while ensuring discounts on pricing with contracts.
0 5000 10000 15000 20000 2008 2009 2010 2011 2012 2013
Bobcat
BUY
In fiscal year 2013, there were over 37,222 requisitions
completed in BobcatBUY. Over a 100% increase from fiscal year 2012. Over 7,800 suppliers were added or updated in the
system over the fiscal year. Campus is now 100% onboard.
PO Revision Forms 2% New Supplier Request Forms 11% Direct Payment Forms 42% Blanket Order Forms 4% Other Catalog and Non-Catalog Orders 41%
Requisition Turnaround Times…
Over 37,000 requisitions in BobcatBUY - 74% turned around centrally in 1 day or less, and another 21% were executed in less than 5 days.
0 Days 46% 1 Day 20% 2-5 Days 21% 6-10 Days 7% 11-29 Days 5% 30+ Days 1%
Purchase Orders
32,977 purchase orders completed in BobcatBUY –
• 15,480 were direct payments. During this fiscal year, we expect to increase the use of catalog and blanket purchase orders, while decreasing the use of direct payments. Direct Payments 47% Blanket Purchase Orders 4% Other Catalog and Non-Catalog Orders 49%
PO Turnaround Times…
Of the over 32,000 + purchase orders, 82% were completed from requisition to purchase order creation in one day or less, and over 95% of purchase orders in BobcatBUY were created in less than 5 days.
0 Days 62% 1 Day 21% 2-5 Days 13% 6-10 Days 3% 11-29 Days 1% 30+ Days 0%
Concur Expense and Travel Report
Processing
31,281
Concur Expense and Travel Reports processed by Accounts Payable in fiscal year 2013.2.28 Days
= Average turnaround time on expense reports75%
decrease in turnaround time from fiscal year 2012 and a 274% decrease from fiscal year 2010.0 5 10
Contracts and Independent
Contractors
Contracts for Goods and Services
• It is our role to:
– Review all contractual agreements procuring goods or services prior to execution
– Review for appropriate signature authority
• to assure compliance with
– State procurement laws & Federal acquisition laws
– University policy
– previously awarded bids
– Independent contractor determination
• maintain records of all procurement transactions for:
– Compliance with laws
– Internal and State audits
– Public records requests
Contracts for Goods and Services
What is a binding contract? It can be a combination of
terms on:
– OU request for proposal. – Proposal responses.
– Associated State , IUC, or E & I contracts. – OU Purchase order
– Credit application – Quotes
– Sales orders – Delivery receipts
– Referenced terms on supplier’s web site – Invoices
Contracts for Goods and Services
Non-Negotiable under Ohio Law
–
Indemnification Language
–
Agreement to Arbitrate
–
Jurisdiction
–
Agreement to specific settlement remedies (legal
Contracts for Goods and Services
Problematic Clauses
– Auto-renewal
– Confidentiality
– Payment Terms
– Late fees, penalties
– Tax payments
– Escalation terms
– Deposits
Contracts for Goods and Services
Clauses we need to add:
– Termination for Convenience
– Insurance requirements
– Non appropriation clause
– Non Discrimination
– Campaign Contributions
– Ohio Conflict of Interest
Independent Contractors
IC relationships are the target of initiatives by federal and state governments, including:
– Internal Revenue Service
– OPERS
– Primary Implication:
– Whether a person providing a service is an ‘employee’ or ‘independent contractor’ is determined by federal and state agencies
– How this impacts Ohio University
– Determination process
– Contracts for all IC’s.
– Independent contractors cannot be treated like employees
IRS Determination Examples
• Independent Contractors ….
– Determine their own location, and tasks for completing their work
– Are responsible for their own training
– May have employees to achieve final results
– Are responsible for their own schedule
– Realize a profit /loss
– Are paid per project, not with scheduled payments
– All reimbursed expenses must be outlined in contract and submitted via invoice
– Furnish all necessary items for completion of work
– Are free to provide services to multiple clients at one time
– Is not doing work that is part of the university’s mission and normally performed by an employee (i.e. teaching credit courses)
– A continuing relationship is not anticipated
– Cannot be fired if they produce a result based on the contract
Prevailing Wage, EEO, and
Insurance
Jane Palmer, Prevailing Wage
Coordinator/EEO/Insurance Administrator
Richie Dillinger, Buyer and Insurance and
State required positions
•
Prevailing Wage Coordinator’s main duty is
to ensure equal wages are paid to all
contractors on OU construction sites and
track lots of paperwork.
•
External EEO officer is responsible for
tracking OU’s use of Minority and EDGE
suppliers in compliance with state law.
Insurance Requirements
•
As part of an initiative spearheaded by Risk
Management, procurement is assisting with the
collection of insurance from suppliers performing
work for Ohio University.
• Risk Managements website:
http://www.ohio.edu/riskandsafety/riskmanagement/require ments.htm
• Supplier Insurance Status (under Resources):
http://www.ohio.edu/finance/procuretopay/index.cfm
Service Provider Requirements
• Current insurance on file if required:– Supplier/Payee providing services
– Supplier/Payee who advises or provides counsel, ex. consultants, psychologists
– Performers with wild shows, ex. Pyrotechnics, throwing things into the audience, etc.
• State of Ohio – Bureau of Worker’s Compensation (BWC)
• Current OHIO Substitute W9:
– Form to be renewed every 2 years by Supplier Maintenance Team
Insurance categories
•
Auto insurance card only:
– work located on campus but is low risk
–
Examples; piano tuners, photographers,
Insurance categories, cont.
•
Basic insurance includes:
–
Commercial General Liability
–
Commercial Automobile
–
Workers Compensation (certain small business are
exempt)
•
Examples; building repair, copier maintenance
agreements, equipment repair, fuel delivery, large
florist displays, risky performers, etc
Insurance categories, cont.
•
Consultants – Basic Insurance requirements plus
Professional Liability
•
Food providers – Basic Insurance requirements plus
Food License
•
All insurance certificates:
–
Use as Certificate Holder address: Ohio University,
205 WUSOC, Athens, OH 45701
Accounts Payable
Gwen Nash, Assistant Director,
Accounts Payable
Payments and Suppliers
• It is our role to:
– Process all payments for the acquisition of goods and services – Audit for completeness and purpose
• to assure compliance with – State & Federal laws – IRS Guidelines
– University policy
• Maintain records of all payables transactions for: – Compliance with records retention guidelines – Internal and State audits
Supplier Maintenance –
OHIO Substitute W9
Why we do the things we do…
– IRS reporting
– IRS B Notices and fines (1099)
– IRS TIN matching (Is this a valid Tax ID number and does it belong to the person we are doing business with?)
– Additional data and supplier validation for State of Ohio (EDGE, MBE, etc.)
– Additional data for Ohio University
• Payment/Remit address, Purchasing/Ordering address, PO distribution method
Supplier Maintenance –
Continued…
– SAM- Match against the federal government's System for Award Management
• Combines several systems used in the federal procurement and awards system including the Central Contractor Registration (CCR), Federal Agency Registration (FedReg), the Online Representations and Certifications Application (ORCA), and the Excluded Parties List System (EPLS)
• WHEN do we have to do these supplier database checks?
– At Supplier Set Up
– At Payment
Ohio University Payment Terms
•
Net 30 days from date of invoice
Strategic Sourcing
Chad Burkett, Strategic Sourcing and
Operations Manager
Jim Miller, Facilities and Construction
Strategic Sourcing
•
Why do we offer preferred suppliers?
–
automatic invoicing
–
don’t have to attach quotes (catalogs are loaded)
–
don’t have to go through bid process (over $25K
for goods, over $50K for services)
–
pricing from preferred suppliers very aggressive
Strategic Sourcing…why
–
Many orders arrive next day
• OfficeMax located in Columbus
• GovConnection located in Cincy area
–
Unnecessary goods removed from preferred
catalogs to avoid incorrect purchases
• Microsoft and Adobe Software stripped out of catalogs
Preferred Suppliers
•
Who are our preferred suppliers?
–
IT goods
• GovConnection
• CDWG
• Dell
– Tech Depot has standard models in stock
» Phone: 740-597-DEPO (3376)
[email protected] Baker University Center 112
Preferred Suppliers (cont…)
• Web design http://www.ohio.edu/finance/procuretopay/procurement/prefe rred_vendors.cfm • Office Supplies • Promotional Goods• ASW Global / Printing Services
Preferred Suppliers (cont…)
–
MRO (maintenance, repair and operations)
• Direct Resource, MSC Industrial Supply, State Electric, Grainger and Crescent & Sprague
• Classic Solutions Inc; Janitorial Supplies
–
Scientific / Lab supplies
• Fisher Scientific, VWR Int’l, Daigger
Conflict Free Minerals
• On August 27, 2012, Ohio University announced its commitment to the Conflict-Free Campus Initiative.
• Ohio University released a Statement on Conflict Minerals calling upon industrial producers of electronics equipment to avoid the use of minerals sourced from terrorist-controlled mines in the Democratic Republic of the Congo (DRC).
• The statement supports the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which attempts to address the growing
humanitarian crisis in the DRC. The act specifically addresses Congressional concerns related to the exploitation of minerals in the DRC and their use in electronics that the United States has purchased.
Please check out your favorite electronics supplier's position on this humanitarian crisis and support this important initiative in the choices you make for your
electronics purchases.
eBusiness Solutions
Melanie Glassmire, Assistant Director
eBusiness Solutions
eBusiness Solutions
•
Bobcat
BUY
•
Concur
•
JPMC Pcard (PaymentNet 4)
•
Oracle
–
Upgrade to version R12
E-Procurement
•
Statewide initiative with the IUC-PG
Inter-University Council of Ohio Purchasing Group
85 members including state universities, community colleges , technical colleges and private schools
•
Institutions partnering with SciQuest:
Ohio University, Bowling Green State University,
Miami University, Kent State University, University
of Michigan, Purdue, WVU, Duke, Harvard, Yale
•
State of Ohio
- using SciQuest across 161 state agencies• http://www.sciquest.com/newsroom/press-releases/state-ohio-selects-sciquest-automate-purchasing-processes-1
Why BobcatBUY?
– Overall goals for Ohio University and the Inter-University Council (IUC)/State of Ohio
• Negotiate discounts for OHIO
• Channel more spend to contracted suppliers to allow better leverage on price and terms
• Institutional and State-Wide savings with better direct spending (IUC)
• Reduce P-Card Usage to mitigate risk of fraud
• Shift from P-Card and Direct Payment to Purchase Order – which have no pre-approvals for purchases.
Bobcat
BUY
& Huron Report
• The controls and governance that comes with an eProcurement system are essential to maintaining
compliance with laws, regulations, and grant terms and conditions.
• The previous extent of the Procurement Card program at Ohio presented a very large and very clear regulatory and financial risk to the university.
• The usage of an eProcurement system with pre-approved vendors and transactions is essential to mitigating risk and supporting university savings targets.
Finance Customer Care Center
Jennifer Campbell – Financial Information
Analyst
Dan Jones – Financial Information Associate
Christy King – Accounting Specialist
• [email protected] or 740-597-OHIO
Finance Customer Care Center
• The Customer Care team strives to provide Great CustomerService.
• Very knowledgeable in the multiple systems utilized at Ohio University and can provided detailed assistance with any navigation, process and entry needs.
• Aim to provide extraordinary Support and Guidance for resolution of any finance-related issue or concern.
• Currently, heavily focused on Accounts Payable and
Procurement. Long term goal, expand to other areas in Finance.
