Sponsored by the Collaborative Sourcing Team
 Today’s
Agenda
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Collaborative Sourcing Team (CST)
Belinda Lindell, Bemidji State University
Dave Peasley, Metropolitan State University
Diana Fliss, Minnesota West Community & Technical College
James Morgan, OOC Facilities
Jeff Kuiper, Southwest State University
Kim Bienfang, AnokaRamsey Community College
Lisa Sparks, St. Cloud State University
Michael Noble-Olson, Minneapolis Community & Technical College
Michael Nordby, OOC Finance
Nathan Sorenson, OOC ITS
Sandra Schmitt, Winona State University
Wayne Wolden, Minnesota State Technical and Community College
Steve Gednalske, OOC Finance
 Laura
M. King
Vice Chancellor/CFO
Lisa Sparks
 Director of Purchasing
St. Cloud State University
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Insufficient card limits (transaction limits, blocked vendors)
Card Sharing
Lack of receipts for purchases
Cardholders or supervisors not reviewing statements or
submitting statements with out appropriate receipts to the
business office within the allotted time.
Unallowable purchases (personal purchases, meals in travel
status, entertainment, catering with alcohol)
Late fees
Special expense food purchases
Lack of encumbrance
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Institution authorized contract over the local
authority to purchase with no approval from
OOC.
Employees with delegated authority exceeding
their authority or had no authority at all.
Purchased without obtaining multiple
bids/quotation or without obtaining sealed bids
when required.
Did not document a sole source determination
Incurred obligations before encumbering funds
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Inappropriately procured certain services using
purchase orders instead of formally signed contracts.
Paid a contractor more than the amount specified in
the contract
Paid for services without evidence that the institution
had received the services
Inappropriately paid $1,000 for an employee to renew
a realtor license. (The renewal would have been free
if the employee had renewed it by the due date.)
Did not record the correct occurrence date in the
accounting system-last day of goods received or
services rendered.
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Missing supporting documentation for vendor
invoices, packing slips, etc
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1. Review local policy and procedures
2. Review MnSCU policy
3. Review purchasing card strategies and
blocked vendor list
4. Review PCS and P-Card security
•Only answer the question
•“As you can see on our website..”
The discussion and process you explain will be
documented by the auditor. He will then use
the work flow you are telling him to ensure
that you are following your own policy and
procedures as well as MnSCU policy with the
samples requested to be pulled.
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training procedure?
dollar limits?
blocked vendors?
manual?
Describe the process from the vendor’s store
to the accounting system?
How is cost allocation involved?
How do you handle unauthorized purchases?
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Describe the process from request to award
Dollar limits
Laura King letters of approval to exceed local
authority
Construction contracts
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Describe the process from invoice in the mail
to invoice in the file for each payable route
PO vs. direct pay- when do you use each?
Why?
3 way match
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Describe the process from request to
approval
Inventory and receiving interactions
Dollar limits
Certificate of insurances
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Accounts Payable-
◦ 30 transactions- to include receiving copy, ok to pay
verification, invoice, etc.
◦ Purchase Orders-
◦ 30 purchase orders- reviewed for bid documentation,
certs of ins, contracts, delegation to exceed local
authority
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Purchasing Cards
◦ A list of all cardholders with daily/monthly limits
◦ Proof of blocked vendors
◦ 25 samples- to include the whole statement and
backup
Complied with MnSCU policy
Receipts existed and matched statement amount
Expense was processed timely
Special expense form/delegation of authority existed
when required
 Statement was signed by cardholder
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Board Policy 5.14 Procurement and Contracts
Procedure 5.14.2 Consultant, Professional or
Technical Services
Procedure 5.14.5 Purchasing
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Board Approval for contracts >$3 million
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Board Approval not required for the following:
inter-agency and intra-agency, joint powers
agreements, Dept. of Admin. Contracts, Office of
Enterprise Tech. (OET), MnSCU master contracts
such as CST contracts.
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Increases college/university authority to
$100,000
Approval required from Vice Chancellor/CFO
for inter-agency, intra-agency, joint powers
agreements, and master contracts in excess
of $1million.
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Purchases $25,000 or less; requires quotation or open market
Purchases >$25,000 to $50,000 (requires sealed bid or two
or more quotations)
Purchases >$50,000 (requires sealed bid by public notice)
Clarifies that bid solicitation is not required for purchases
from: Dept. of Admin., OET, MnSCU master contracts, and
approved cooperative purchasing agreements
 Collaborative
Sourcing Team (CST)
Members
 Scott Goings, OGC
 Gary Hunter, Intellectual Property
 Keswic Joiner, Risk Management
 Lou Urban, OOC Business Office
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Please send your questions/issues on the
following topics or other procurement issues:
Contracts
Insurance
Intellectual Property
Prepayment or Year End Issues
Collaborative Sourcing Team (CST) Contracts
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Highlights of Contracts & Purchasing Site
◦ http://www.finance.mnscu.edu/contracts-purchasing/index.html
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Preview: New C&P site in development
◦ Temporary Address during development:
 http://www.finance.mnscu.edu/cp-new/index.php
◦ Username: “mnscu”
◦ Password: “mnscubuys”
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Please email comments or ideas to…
◦ “sourcing@so.mnscu.edu”
◦ Please include “C&P web” somewhere in the subject.
 Questions
Cut!
 Lunch
and networking