1. Purchasing Budget Hearings – Purchasing Steve Shelley March 21, 2013 2.

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Purchasing

Budget Hearings – Purchasing

Steve Shelley

March 21, 2013

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Purchasing

Director of PurchasingAssistant DirectorPurchaserPurchaser (handles accounts payable)

Purchasing Assistant (Acts as Procurement Card Administrator)

Administrative AssistantStorekeeper

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Purchasing

MISSION STATEMENT

The mission of Purchasing is to assist the University to obtain goods and services needed by faculty, students, and staff, to spend the University’s money wisely so that maximum value is obtained for its limited financial resources.

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Purchasing

Jan-12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Sep Oct Nov Dec-130

50

100

150

200

250

300

350

400

450Requisitions/Purchase Orders

Requisitions Purchase/Change Orders

Average 113 per month

Purchase orders 2860 per year

Average 240 per month

1356 requisitions per year

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Purchasing

Average processing time from Requisition to Purchase Order is 1.55 days

We do not incorporate Requisitions that require bids into this number

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Central Warehouse

StorekeeperResponsibilities

Receives all materials shipped to MSU both physically and prepares all reports electronically

Shipments made by MSU (receives all shipments)Secures an inventory of ~$220,000 thru issues & receiptsStores and maintains equipment for all departments located on

campusReceives & stores all surplus equipment until disposedMakes deliveries to departments of received materials

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Central Warehouse

Note:

If your departments are buying the same supplies repetitively with their procurement card, then those materials could be inventoried in the central warehouse with Purchasing buying for the best value to the University (Save You Money!)

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HUB Data

Stands for Historically Under-utilized BusinessDirector of Purchasing acts as Campus HUB

CoordinatorPurchasing, at minimum, solicits two (2) HUBS

for bidding purposes (if at all possible)Two reports to State each fiscal year

Semi-annualAnnual

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HUB Data

FY2008 FY2009 FY2010 FY2011 FY20120.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

% Of Dollars Spent

% Of Dollars Spent

$1,304,353$1,284,633$3,137,498

#1 In State$20,244,948

#1 In State$10,088,744

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HUB Data

• 2012 Goals 2012 Actual• Heavy Construction 11.9% 45.7%• Building Construction 26.10% 61.2%• Special Trades Construction 57.2% 35.8%• Professional Services 20% 100%• Commodities 12.6% 47.3%

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Procurement Card

1 2 3 4 5 6 7 8 9 10 11 120

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

P-Card Dollars

FY12 FY13 Average

Avg. $147,000 per month

192 Card Holders$1,764,000 per year

Months

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Procurement Card

1 2 3 4 5 6 7 8 9 10 11 120

200

400

600

800

1000

1200 P-Card Transactions

FY12FY13Average

100% audit each month

Months

Avg. 890 per month

10,680 Transactions per year

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Contract Administration

Prior Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-130

10

20

30

40

50

60

70

Contract Repository

Contracts

~360 Contracts to date

Average ~45 per month

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Contract Administration

Director of Purchasing is now over contract administration Work load has increased over 100% by creating the contract administration

office Two people in the purchasing office are handling the contract

administration duties The Director of Purchasing The Administrative Assistant

The purchasing office needs to add one additional person to the department to be able to handle the additional responsibilities.

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Paperless Initiative

Question:How many sheets of copy paper are purchased each

year by Midwestern State University?

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Answer:– >8,400,000 Sheets

• This does not take into consideration what the print shop buys, or what is being purchased via the procurement credit card.

Question:How many sheets of copy paper are purchased each

year by Midwestern State University?

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Question:How many dollars does MSU spend each year on toner

and ink cartridges for our printers?

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Question:How many dollars does MSU spend each year on toner

and ink cartridges for our printers?

Answer:– > $75,000 per year

This does not include the copy machines located on campus. This cost is built into your lease cost of the

copier.

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Sample of current paperless transactions: Direct Deposits—21,000 Checks - NOT BEING PRINTED Hourly Time Sheets—7,600 copies - NOW ELECTRONIC Purchasing, Accounts Payable, Receiving, Purchase Orders

Change orders, Miscellaneous— >60,000 copies per year - NOW SCANNED

Student – related – NOW ELECTRONICBillings - 25,000 electronicRefunds - 7,400 electronicPostage savings of $17,000 in student-related mailings

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Opportunities: Acculog Software Registrar Office—Graduate & Undergraduate Catalog

Potential savings up to $40,000 per print Direct Pay Vouchers > 10,000 Monthly Time Sheets > 7,000 Budget Transfers > 800 W-2’s and W-4’s > 2,500 Employment Contracts > 4,000

Notice of Employment > 3,000

PTF’s > 10,000 Routing Sheets & Contracts > 10,000 Banner Approval Module for Requisitions > 6,000

And many other opportunities throughout campus

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Summarizing the requirements for a paperless initiative:

Original form generated electronically and completed on-line Automatic edits within system Approvals are electronic Routing is electronic Once fully approved, information entered into system automatically Any attachments can be scanned and follows record/form digitally Repository for form/attachments are digital with easy viewing access

What would it take for MSU to create a paperless initiative?

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Current Capabilities:

Banner already has forms for timesheets, PTF’s, budget transfers, requisitions, etc.

Electronic approval and routing being used for hourly timesheets Document imaging currently being done in Admissions, Registrar,

Financial Aid and Purchasing Exploring the capabilities we currently are paying for and possess

within Banner system Cost may be minimal to expand use to other offices and areas Other campuses use for practically all administrative paperwork

and files

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Digital Signatures:Digital signatures post a person’s secured scanned

signature onto an electronic or scanned document (such as contracts)

Would require additional software outside of BannerSoftware is compatible with Microsoft Word, Excel,

PDF & othersDigital signature software costs are estimated to be

~$30,000 plus server, with payback less than one year

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Suggested Next Steps:

Support from senior administration Start a small working group Tackle a minor form (such as budget transfer) Work with one or two departments to beta test Pick the next form to target Roll-out to other departments via good communication,

training and support Target 1-2 years for most major forms to go electronic,

depending on resources and IT staffing availability

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Questions?

1. Purchasing Budget Hearings – Purchasing Steve Shelley March 21, 2013 2.

Documents

Transcript of 1. Purchasing Budget Hearings – Purchasing Steve Shelley March 21, 2013 2.