Business Office Updates & Revisions - June 1, 2022
The document highlights roles & responsibilities related to business office updates, purchasing, capital investments, and more. It stresses the importance of clear processes, improved communication, and continuous improvement.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
BUSINESS OFFICE UPDATES & REVISIONS June 1, 2022
THANK YOU! Background Goals Designate Roles & Responsibilities Clearly define processes Improve Communication Continuous Improvement annually Capital Investments Effective July 1st
Roles & Responsibilities Pg. 6 WHCCD STAFF (Requisitioners/ordering Dep) Identifies a need, obtains competitive quotes, initiates the requisition process, obtains approvals Program Director/Coordinator Certifies the purchase follows the requirements of the grant, categorical, and/or project funding Area Dean/Supervisor Reviews requisition for completeness, ensures there are available funds, approves request Capital Investments
Roles & Responsibilities Pg. 6 Business Office Reviews requisition for overall appropriateness Purchasing Department May obtain additional quotes or assist department in obtaining quotes Ensures legality of purchase Identifies sources for purchases Coordinates bids Establishes purchasing standards Reviews and approves District Purchase Requisitions Coordinates Asset Management Capital Investments
Roles & Responsibilities Pg. 6 Receiving (M&O or IT) Receives deliveries Delivers to ordering departments Assists in Inventory Management processes Accounts Payable Once goods/services are verified by WHCCD staff Makes payment to vendor for materials or services received Capital Investments
The Bid Matrix Pg. 7 Capital Investments Public Projects Goods/Services Construction Supplies Building Modification Equipment Improves the usefulness or life of a building Consulting Services Contract Services Maintains the buildings original condition Some Installation
UPDATED ITEMS: Department Creates a Request for Board Agenda Item Department emails the quote to all approvers with the req# and cc s purchasing Approvals for under $5,000: Budget Manager Procurement Supervisor OR Grant Supervisor Approvals over $5,000: Both approvals from above Procurement Supervisor OR VP/President Technology Purchases require AVC IT approval in addition to above Pg. 6-9
Requesting a Board Agenda Item Capital Investments Truck Driving Simulator for Coalinga Campus Truck Driving Simulator for Classes XXX, YYY, ZZZ as set by the certification standards by the certifying agency. Three quotes were obtained: Vendor 1: Price Vendor 2: Price (some equipment could not be provided by this vendor) Vendor 3 Price We recommend purchasing from Vendor 3. After purchasing the equipment that vendor 2 cannot provide, Vendor 3 is the lowest offer.
Capital Investments TOTAL PRICE SWF 3 Local XX-XXX-XXXXXX-XXXXX-XXX
Requesting a Board Agenda Item Capital Investments Email Confirmation: Your Board Agenda Request has been submitted to your campus President/AVC for approval Goes to Purchasing for Review Uploaded to Board Docs for next available Board Meeting Must be approved by president 3-5 business days prior to board agenda item to allow time for purchasing review and any clarifications Board Item Deadlines on Calendar applies to Purchasing Department
PURCHASE ORDERS Pg. 8 & 10 Blanket Purchase Order One Vendor Supplies only Frequently ordered low-cost supplies All Blanket Purchase Orders end June 30th Purchase Order Contract and Notice to Vendor to Proceed with Order For specific orders/items/contract Electronically sent to the Vendor and Requesting Department Quotes will be kept with Purchase Orders for invoice matching Capital Investments
CHANGE ORDERS Pg. 10 Capital Investments Change Orders can be requested: Increase BPO by 10% or decrease by any amount throughout the year Adjustment was made in original order due to: supply chain issues, backordering, tax/shipping handling/other fees assessed incorrectly All Change Orders must be requested through the Change Order Request Form Must be approved by Budget Manager Must be approved by Purchasing Department
Unauthorized Purchases Pg. 11 The district is NOT responsible for making payment to any vendor for items that were ordered prior to receipt of a Purchase Order Includes Employee Reimbursements For extenuating circumstances Employees requests payment to vendor through Check Request Process President must approve Purchasing will review for any legal issues Capital Investments
Additional Considerations - Appendices Gift of Public Funds Meals for Staff Staying at or under the per diem rates IRS regulations for De Minimus Coding as Supplies or Equipment 54XXX supplies 56XXX - equipment Capital Investments
IT Pg. 13-14 Capital Investments Software/hardware Facilities Pg. 15 Building, structure, grounds, maintenance, furniture Marketing Pg. 15 Compliance with marketing standards Categorical and Grant Funds Pg. 15 Purchase aligns with funding regulations Prepayment Pg. 15 Paying for items/services in the year they were received Additional Taxes Pg. 16 Sales/Use Tax Out of State Vendors Performing Services
Receiving Items Pg. 17 1. Purchase Order Rec d 2. Order Placed 3. Item Received by Department (Acquisition Date) 4. Invoice is received by department or AP - Department sends invoice to AP OR - AP requests Okay to Pay from Department 5. Department initiates Inventory Process if Applicable Capital Investments
Inventory Pg. 17-18 - Acquisition Cost >$500 - = ITEM + sales tax + shipping + install - Acquisition Date - Day the item was received - Relocating Items - Notify purchasing department for item relocations Capital Investments
Contracts Pg. 28 Contracts development and review begin at the requesting department level Purchasing will review for legal language and bid requirements Technology contracts must go through the ITO Contracts with facilities components must go through M&O Capital Investments
Contracts Pg. 29 When possible, contracts should be on a district approved template to reduce contractual review Contracts involving services on campus should provide the appropriate Certificate of Insurance listing WHCCD as an add l insured. All contracts over $15,000 must go to the Board within 60 days of execution See Bid Matrix for Board Consent/Approval thresholds Chancellor and Vice Chancellor are the ONLY authorized signatories for the District Capital Investments
Contracts Certificate of Insurance from College May take 3-5 days for issuance Must have a fully executed contract Signed by Authorized Signatory Purchase Orders Blanket Purchase Orders should be created for a fully executed contracts Terms of Payment Typically, payment will be issued as services are completed Under no circumstances should full payment be issued prior to completion of scope of work Capital Investments
PROCUREMENT SUBJECT TO CUPCCAA Pg. 23-27 Capital Investments Alteration of a new building Extends the useful life Changes the functionality i.e. art studio to computer lab New Construction Maintenance and Repair Maintaining the building or structure to its original functionality Installation services include affixing items to the building Upside Down Test
EXCEPTIONS TO COMPETITIVE PROCUREMENT
PIGGYBACKING Pg.19 Utilizing another agency s contract to procure goods Does not apply to services unless procured through Chancellor s Office, UC or CSU Must be under the same terms, conditions, pricing, and items as original contract Original contract must have been procured in accordance to California Standards (even out of state awarding agencies) For federal funds recommended to get program approval prior Capital Investments
Safe Piggybacking Options Pg. 19 Department of General Services (CMAS) PCC 20653 UC/CSU PCC 20653.5 Chancellor s Office and it s Auxiliaries (The League, Foundation for California Community Colleges) PCC 20661 Capital Investments
How to Piggyback All procurement information from the awarding agency must be acquired and kept with the Purchase Order Notice to Bid Advertisements Original Contract with award terms Board must determine it is in the best interest of the District to piggyback PIGGYBACK IS NOT A GUARANTEED BEST PRICE Capital Investments
Piggybacking legalities Capital Investments Incidental generally accepted as 10% Utilizing CMAS agreements 49.9% per CMAS guidance Does not apply to Chancellor s Office Auxiliaries or UC/CSU contracts as exempted through PCC 20653.5, Ed Code 81646, PCC 20661, Ed Code 7670.5
Sole Source Sole Source is when only one vendor is able to provide a good or service I.e. proprietary information limits competition Not an example of Sole Source: Lego Bricks Cannot sole source from LEGO because other vendors can supply Lego bricks Capital Investments
Sole Source Justifications For Purchases under the Bid Threshold Single Source Justification Form For Purchases Over the Bid Threshold Sole Source Justification Form Must complete a Market Analysis to justify the purchase price Capital Investments
Other Items of Exception Educational Materials Books, periodicals, instructional software, test materials Subject to Board Approval IT equipment and software Some flexibility to allow for additional considerations outside of price Can pick one of the lowest of three bids Capital Investments
SPLIT BIDDING Split bidding is strictly prohibited for any type of procurement Defined as splitting projects into phases or subprojects to avoid bidding thresholds If projects are similar in nature, trade, location, and timelines they should likely be bid together as a project IFB Scope of Work will indicate how the phases should be conducted during project management Capital Investments
Setting Up a User User will need to log into Amazon Business Services through their Single Sign On Manager will notify Purchasing of all employees they want access as Buyers in Amazon Purchasing will move them into their Supervisor s Group Capital Investments
Making Purchases Purchase Order must be in place with Amazon prior to placing order All orders will be reviewed and approved by the department supervisor Supervisors are responsible for determining appropriate purchases by funding source Orders over $5k require Purchasing and VP approval Orders over $10k require President approval IT orders require ITO approval Capital Investments
Bulk Orders Custom Quote Engine Tool Solicits quotes from multiple vendors for: Amounts over $10k OR Quantities over 999 Lowest Quote can then used to create a Purchase Order Still subject to bid matrix requirements Capital Investments
ACCESSING AND MANAGING BUDGETS
Elements of the Budget BUDGET ENCUMBRANCES YTD = AVAILABLE BALANCE Capital Investments BUDGET Available Resources for a Fiscal Year ENCUMBRANCE Any Purchase Orders YTD Actuals AVAILABLE BALANCE what can be moved out or encumbered
Budget Structure Fund: 11 Unrestricted (General Apportionment) 12 Restricted (Grant or Categorical Funds) Activity Designates types of projects 1XX federal funds 2XX state funds Cost Center Usually assigned to departments, areas or funding sources Capital Investments
Budget Structure Object Codes 4XXXX: Revenue 5XXXX: Expenditures 51XXX: Academic Salaries 52XXX: Classified Salaries 53XXX: Benefits 54XXX: Supplies 55XXX: Operating 56XXX: Capital Outlay (equipment) 57XXX: Other Outgo (i.e. student aid) Location 100 District -110 Coalinga -220 Lemoore 440 Firebaugh Center Category Capital Investments Subcategory
Portal Fastest way to access budgets Shows ALL lines of a budget, even if not in use Capital Investments
GLBR Summary Level Budget Check Recommended Sort: Fund, Subclass, Category Capital Investments
GLTB Detail of every transaction posted to the selected Budget Export to Excel Use pivot table or formulas to control your view of the budget Capital Investments
Project Planning Review discretionary spending Object Codes beginning: 54, 55, 56, 57* Temp Codes: 523, 514 Identify Department Goals and Resources necessarily to meet those goals Events, supplies, equipment, temps, etc. Create a budget for each resource Create Purchase Orders or Blanket Purchase Orders as soon as able to encumber funds Review and adjust encumbrances regularly (monthly or quarterly) Capital Investments
Budget Transfers Departments can enter Budget Transfers through Colleague between discretionary funds All funds not tied to regular salaries and benefits Must be the same fund Budget Transfers outside of Salaries & Benefits must be reviewed and entered by the Business Office I.e. salary savings need to be moved to a temp line to maintain appropriate services Capital Investments
Expense Transfers Expense Transfers must be reviewed and entered by the business office Expenses can be moved between funds Reasons: Original transaction was misclassified Over budget and needs to move to a different funding source Original was unallowed on the funding source and must be moved to a different one that allows for the expense. Capital Investments
