Procurement Training and Audit Review March 19, 2015 Presented by: Hao Xie Bruce Hurt Leanne Mead Ramona Divinagracia

Audit Findings I.Walkthrough II.Asset Observation III.Board Reporting IV.Inventory Confirmation/Payments

Section I: Walkthrough Findings/Solutions:  Finding #1: LAVC does not maintain any documentation to ascertain to whom the assets were assigned and the location of these assets. Solution #1: New Asset Location Tracking Form to be attached to Purchase Requisition Form Solution #2: If asset is to be moved to another location after its initial procurement – Fixed Asset Change Request Form must be completed and submitted to Administrative Services by the original recipient.

ASSET LOCATION TRACKING FORM PART - A TO BE COMPLETED BY REQUESTOR PART - B FOR RECEIVING DEPARTMENT’S USE ONLY Name of Requestor:P.O. Number: Department:Date Delivered: Vendor’s Name:Received By: Qty.Asset DescriptionAsset LocationRecipientSerial NumberTag NumberSFP Tag NumberSignature/Date

FIXED ASSET CHANGE REQUEST FORM

Section I: Walkthrough  Finding #2: LAVC does not date stamp invoices. Solution #1: All invoices must be sent to the Business Office/Accounts Payable for date stamping and payment processing.

Section II: Asset Observation Finding/Solution:  Finding #1: Equipment purchased with Specially Funded Program Funds were not properly tagged. Solution #1: Color tags for each respective programs – See next slide – Flow Chart

PO created SFP to provide Tags as required by Grant Agency to Receiving Department Receiving Department to affix SFP Tag prior to delivery Section II: Asset Observation

Section III: Board Reporting Finding/Solution:  Finding #1: Contract (CO) and Short Term Agreements (STA) were not reported to the Board timely (within 60 days) for ratification Solution #1: Submit request to Administrative Services: STA 4 weeks and CO 8 weeks prior to commencement of service. Solution #2: Request submitted after service started will be rejected and returned to the initiator.

Section III: Board Reporting Background:  Per Administrative Regulations B-19 Delegation of Authority to College Presidents; Board must ratify all procurement transactions within 60 calendar days of contract or purchase order commencement.  Board items need to be submitted to Procurement a minimum of 8 weeks before targeted board date. Note: Only one (1) Business Board Meeting per month, which is the second Wednesday of the month.

Section IV: Inventory Confirmation/Payments (Procurement Payments) Findings/Solutions:  Finding #1: There was no evidence to substantiate the delivery of goods and/or the confirmation of services performed.  Bill of Lading/Packing Slip or invoice was not provided  No Approval signature on invoices denoting the confirmation of Services Solution #1: All invoices for services must be signed and authorized for payment by the requestor then forwarded to Business Office/Accounts Payable.

Section IV: Inventory Confirmation/Payments (Procurement Payments) Findings/Solutions:  Finding #2: Payment for Vendors were not made timely  Contract Payments  STA Payments  Purchase Order Payments  FOF Payments Solution #2: See CO, STA, PO, FOF Sample documents

Contract Payments: 10/22/13 1/22/14

STA Payments: 1/2/14 3/6/14

PO Payments 4/4/14 5/19/14

FOF Payments: 4/8/14 5/15/14 5/9/14

Section IV: Inventory Confirmation/Payments (Procurement Payments) Findings/Solutions:  Finding #3: Items/Services procured were not properly authorized and/or approved Solution #1: All Purchase Requisitions and Contract Request Forms must be signed and approved by the VP of Administrative Services. Solution #2: All POs must be signed by the VP of Administrative prior to order placement.

Section IV: Inventory Confirmation/Payments (Procurement Payments) Findings/Solutions:  Finding #4: Items were delivered and ordered prior to seeking the appropriate approvals Note: Confirmation Purchase Orders are strictly prohibited! Solution #1: Engage in procurement planning and respect process timelines. Failure to plan does not constitute an emergency. Solution #2: All Purchase Requisitions and Contract Request Forms must be signed and approved by the VP of Administrative Services Solution #3: All POs must be signed by the VP of Administrative Services prior to order placement.

Policies and Procedures Procurement Policies and Procedures   cellors-directive-142.pdf Asset Management Polices and Procedures  Policies-and-Procedures-Recommendation.pdf