Purchasing on Campus and more

1
Purchasing on Campus and more

• Human Resources
• Faculty Staff
• Development Opportunities

2
Agenda

• 900 Introduction
• 910 Financial Services Website
• 915 Policies Procedures
• Buying/Ordering
• Purchases Not Allowed
• 1000 Break
• 1015 Systems Contracts
• Procurement Card
• LVPO
• gt1500 Purchasing Services
• Competitive Bidding
• 1115 Tax

3
AgendaContd

• 1130 Dangerous Goods
• 1200 Lunch
• 100 Customs/Import/Export
• Traffic/Courier/Freight/Shipping
• 115 Systems Contracts
• 145 Travel (CAUBO, Vehicles Red Car, Travel
  Authority, Amex, Relocation)
• 215 Accounts Payable
• 230 Parking Lot Wrap Up

4
Financial Services Website

• www.fin.uoguelph.ca

5
Purchasing Services

• Is purchasing centralized at the University of
  Guelph?

6


7

8

• Purpose
• To assist the University to maximize value
  received for monies disbursed
• Scope
• All purchases /or rentals of equipment supplies,
  materials, goods or services
• Excludes
• Major construction contracts (except colleges,
  research farms)
• Capital and renovation project furniture
• Legal and medical fees
• Recruitment services
• Consultant fees (lt10,000)
• Library books Policy Ref FI 18.0

9
Purchases Not Allowed

• Commercial Alcohol/Spirits
• Must be purchased by Purchasing Services
• Animal/All Vertebrates
• Must obtain Animal Care Committee (ACC) approval
• Must be purchased by Purchasing Services

10
Commodity Distribution

• Administrative/Consulting/
• Contracted Services
• Agribusiness/Groundskeeping Horticulture/Live
  Animals
• Ancillary Support
• Computing/Communication/
• Office Equipment

• Louise McPhail, ext 52178
• lmcphail_at_fin.uoguelph.ca
• Dale Stevanus, ext 58483
• dstevanus_at_fin.uoguelph.ca
• Wayne Brittenden, ext 52609
• wbritten_at_hrs.uoguelph.ca
• Lynn Drohan, ext 52139
• ldrohan_at_fin.uoguelph.ca

11
Commodity Distribution

• MRO(Maintenance/Repair/
• Operations)
• Scientific/Research/Medical/
• Veterinary
• Procurement Card
• Co-Ordinator
• Customs/Transportation

• Randy Graham, ext 56696
• rgraham_at_fin.uoguelph.ca
• Tim Lovegrove, ext 53844
• tlovegrove_at_fin.uoguelph.ca
• Lynne Harbin, ext 58482
• lharbin_at_fin.uoguelph.ca
• Linda Smith, ext 52541
• lsmith_at_fin.uoguelph.ca

12
Customer Methods of Purchasing

• 1st Is the purchase low value? i.e. lt1,500
• Systems Contract
• Procurement Card
• LVPO
• 2nd Complete a purchase requisition and forward
  to Purchasing Services

13
(No Transcript)
14
Where do I Buy from?

• If lost..call Purchasing Services

15
1st Step - Systems Contracts.soon to be renamed!

• Check www.fin.uoguelph.ca to determine if
  contract exists
• Click Services
• Click I Need to Buy or Pay for Something
• Search by commodity or supplier name

16
1st Step - Systems Contracts.soon to be renamed!

• Pre-negotiated contracts with preferred suppliers
• Costs, delivery and all Ts Cs pre-set
• Many methods of ordering, on-line (web), phone,
  fax, paper
• Predetermined maximum line levels

17
1st Step - Systems Contracts.soon to be renamed!

• Competitively bid, if possible
• Consolidated Invoicing
• No invoice matching required
• Post delivery/payment reconciliation

18
2nd Step Procurement Card

• Currently switching to US Bank Canada VISA
  (affiliated with the Royal Bank)

19
2nd Step Procurement Card

• Cardholder Benefits
• Reduces need for petty cash, reimbursement,
  cheque requisitions
• Empowers employees
• Quick delivery
• Reduced administrative effort
• No personal funds used

20
2nd Step Procurement Card

• Supplier Benefits
• Reduced credit risk for suppliers
• Lower overhead
• Immediate payment

21
2nd Step Procurement Card

• Administrative Benefits
• Savings in cost of producing cheques
• Management reports
• Reduces overhead, i.e. postage
• Streamlines purchasing/payment process

22
2nd Step Procurement Card

• Restrictions
• Personal use
• Travel, food (exception of Zehrs/Ultra Mart),
  lodging expenses
• Hazardous material
• Alcohol
• Livestock, laboratory /or research animals
• Radioactive materials

23
2nd Step Procurement Card

• Ideal Uses
• Conference Registration
• Subscriptions
• Low value purchases where a contract does not
  exist
• Membership/association fees

24
2nd Step Procurement Card

• Liability Credit Rating
• University has limited liability for lost or
  stolen cards
• Cardholders are responsible for safe keeping
• Misuse /or overspending is responsibility of
  department
• No credit check of cardholder

25
2nd Step Procurement Card

• Whats New with US Bank of Canada VISA
• Web based reconciliation
• General ledger (g/l) code can be changed,
  including object code
• At a minimum, the object code must be changed to
  reflect more appropriate accounting

26
2nd Step Procurement Card

• End Use field has been added to handle taxes
• No longer need for multiple cards
• Increased transaction limit from 1,500 to 3,000

27
2nd Step Procurement Card

• End Use
• Admin (Administrative)
• Farm
• Food
• Medical
• Pharmacy
• Research

• Teaching
• Library Books
• Books/Sub (Subscriptions)
• Conferences
• Gasoline
• Service

28
2nd Step Procurement Card
29
3rd Step - LVPOs

• Low Value Purchase Orders
• Pre numbered Purchase Orders
• Available from Purchasing Services
• Must approve invoice
• Ensure taxes are properly identified on LVPO
• Same restrictions as procurement card, i.e. no
  personal, alcohol, animals, hazardous material,
  radioactive

30
Customer Responsibilities

• For low dollar purchases, LVPOs, Direct Invoice
• Supplier search selection
• Product specification, quality quantity
• Price negotiation
• Tax Application (see back of LVPO)
• Freight Charges (designate FOB)
• Delivery requirements

31
Customer Responsibilities

• For low dollar purchases, LVPOs, Direct Invoice
• Expediting
• Amendments/Returns
• Control/Custody of LVPO forms
• Obtaining Special Approvals
• Obtaining appropriate approvals/signing authority
• Procedure Ref Low Value Purchase Order System
  FP2.3.01

32
Purchase Ordersissued by Purchasing Services

• Purchase Orders/Requisitions NOT Required for
• Freight
• Contract Labour (staff)
• Hospitality Services
• Utility Service
• Travel Agencies
• Petty Cash

33
Purchase Ordersissued by Purchasing Services

• Legal Fees
• Medical Fees
• Recruitment Services
• Consultants where the total contract is lt10,000

34
Purchase Ordersissued by Purchasing Services

• Competitive Limits
• 0-5,000 Verbal Quote from competitive
  supplier
• 5,000-25,000 Written Quotes from 3 Suppliers
  (if possible)
• gt25,000 Formal Request For Proposal (RFP)
• gt100,000 Electronically advertise on MERX

35
Purchase Ordersissued by Purchasing Services

• Single Source gt5,000
• Requisitioner must provide justification to wave
  competition
• Single source must have the prior approval to
  enter into negotiations from one level higher
  than the level having purchasing authority for
  the estimated value of the requirement

36
Purchase Ordersissued by Purchasing Services

• At the completion of the negotiations, purchase
  approval must be sought in accordance with the
  signing authority levels.

37
Cycle Times

• Purchase Orders 5 days
• Quotations 5 days
• Request for Proposals (RFP) 50 days

38
Request for Proposal

• Used for material/services gt25,000
• Formal document
• Details mandatory terms conditions
• Details evaluation criteria weighting

39
Request for Proposal

• Formal closing
• Audit customer in attendance
• Open proposals
• Record opening
• Reject late or unsigned proposals

40
Request for Proposal

• Evaluation methodology used to determine short
  list
• Notify unsuccessful suppliers
• Debrief unsuccessful suppliers, if requested

41
How Can the Customer Help?

• Involve Purchasing Services at beginning of
  procurement cycle (needs identification)
• Provision of technical specifications
• Inclusion of specific suppliers to be approached

42
How Can the Customer Help?

• Prompt authorization of any changes or approvals
• Inform Purchasing Services of any performance
  issues good or bad

43
GST PST

• Check www.fin.uoguelph.ca to review sales tax
  guides
• Click Help with Sales Tax
• Click Sales Tax Guides
• Need more help?
• Contact Barry Hodgson, Controller (ext 52074)
  bhodgson_at_fin.uoguelph.ca

44
Dangerous Goods

• Without certification for transportation of
  dangerous goods, all shipments must be
  coordinated through
• Kevin Ecott
• Supervisor
• Mail Services
• ext 52264
• kecott_at_fin.uoguelph.ca

45
Customs/Import/Export

• Brokers
• Importing
• Federal Express (FedEx) for express courier
  shipments
• FedEx Trade Networks (FTN) for UPS, ground, air
• Livingston International minimal usage
  presently

46
Customs/Import/Export

• For perishables, or high value shipments please
  contact, prior to the shipment
• Linda Smith
• Customs Officer
• Purchasing Services
• Ext 52541
• lsmith_at_fin.uoguelph.ca

47
Customs/Import/Export

• Exporting
• Federal Express
• For other ground carriers, please contact Linda
  Smith, Customs Officer
• Shipping papers are required for everything with
  exception of printed matter please contact
  Linda Smith, Customs Officer (allow 48-72 hours)

48
Traffic/Courier/Freight/Shipping

• Couriers
• Federal Express (FedEx) - preferred
• Purolator
• Departments must contact Linda Smith, Customs
  Officer, to be set up on-line.

49
Traffic/Courier/Freight/Shipping

• For large shipments, i.e. not suitable for
  courier, please contact
• Linda Smith
• Customs Officer
• Purchasing Services
• Ext 52541
• lsmith_at_fin.uoguelph.ca

50
Systems Contracts.soon to be renamed!

• Familiarize Yourself..
• I need to know who we have contracts with
  for what!
• How go to I Need to Buy or Pay for
  Something
• Where go to Supplier Listings
• Who go to Suppliers by Name
• What go to Suppliers by Commodity

51
Systems Contracts.soon to be renamed!

• When ready to purchase or inquire.
• Go to
• Suppliers by Name or
• Suppliers by Commodity or
• Suppliers that Offer On-Line Purchasing

52
Systems Contracts.soon to be renamed!

• Select Supplier of Choice
• Information needed to inquire order is shown
• If prices on-line, 2 methods of display

53
Systems Contracts.soon to be renamed!

• 1. On Supplier page check bottom of page
• (LOGIN ID) (Password)
• Note Requires U of G Central Login Acct
  (CCS)
• 2. On Supplier page check top of page
• Address Information
• Click Webpage
• Note Contact Supplier to obtain User ID
  Password

54
Systems Contracts.soon to be renamed!

• Employee Perk
• Suppliers that Offer Personal Purchases

55
Systems Contracts.soon to be renamed!

• How do I reconcile?.
• Tally Sheet Supplier Reference Number

56
Systems Contracts.soon to be renamed!

• How do I receive pay?.
• Retain copy of order/packing slip/invoices sent
  with shipment
• Highlight or circle supplier ref on shipment
  documents file
• View transaction in FRS
• Match to supplier ref (highlight or circled) on
  shipment documents

57
Travel Authority (TA) Personal Reimbursement
Claim

• Foundation (refer to Travel Policy for details
  search for Travel Policy on U of G home page)
• Reasonable economical, Department U of G
  limits, caps on certain expenses
• Justifiable original receipts, U of G business,
  non-spousal
• Out of Pocket Expenses
• U of G Business (Non-Personal)

58
Accounts Payable

• Staff List
• www.fin.uoguelph.ca
• Click Department, Accounts Payable, Our
  People
• Accounts Payable Payment Schedule
• Signature Forms
• On-line
• Cheque Requisitions
• On-line
• Process / Matching
• Purchasing Services Approval
• Coding Corrections