Cal Poly Procurement Activities for Year-End Closing Matthew Roberts, C.P.M., CPP, MBA Director of Contracts, Procurement & Risk Management, Cal Poly State University Year-End Legal Training May 2010

Overview of Y/E Procurement Activities Campus Business Practices Y/E Finance Team Procurement Y/E Closing Steps May 20102Year-End Legal Training

Campus Business Practices Year-End Balances Roll Forward Not the same Rule for all CSU campuses Requisitions (pre-encumbrances) removed from Balancing Calculations Memo notation only Multi-Year Agreements Only funded for the current year encumbrance Y/E line closed - “Liquidated” Next fiscal year funds added after Y/E closing May 20103Year-End Legal Training

Year-End Finance Team Y/E Finance team includes Procurement Procurement participates in all status meetings Procurement activities start in February annually Front-end efforts facilitate a smooth closing PO staff take responsibility for their agreements May 20104Year-End Legal Training

PO Closing Outline March Finance issues Year-End Memo Campus cut-offs (aka, Deadlines) Start updating draft in February PO milestones through Y-E scheduled Weekly PO team meetings start up May 20105Year-End Legal Training

PO Closing Outline April PO staff review all Multi-years (MY’s) Expirations Extensions Changes Public Works (PW’s) agreements reviewed Changes Close outs Extensions May 20106Year-End Legal Training

PO Closing Outline May High Dollar Req’s are processed Bid, Sole Sources, Contracts High Dollar Cut-off monitored Future Year (FY) PO process Identify and monitor FY Req’s & PO’s Only place critical FY in this fiscal year FY’s processed after Y-E close May 20107Year-End Legal Training

PO Closing Outline June Review Annual Agreements (AA’s) Renew as appropriate Evaluate for possible MY’s Close AA’s to “actuals” when needed Review all open Req’s Process or cancel Review all open orders (PO’s) Run Open PO Query and review Close and change as needed Run PO reconciliation to close “danglers” May 20108Year-End Legal Training

PO Closing Outline June – continued Daily team meetings with Finance team Req’s are continually reviewed until closing Looking for expedites and FY’s Place Low Value PO’s Last cut-off = First week June for PO Process final Change Orders Place any remaining High Dollar PO’s May 20109Year-End Legal Training

PO Closing Outline June Continued June 30 th (Last day activities) Between 7 am & 2 pm all PO activities completed Between Noon & 2 pm – all receiving and AP activities completed Current Year Purchasing Module closed at 2 pm PO runs PO Activity report and exports.csv file Between 2 & 4 pm Finance team runs GL15 Between 4 & 5 pm Finance team completes all accruals 5:00 pm – go home May Year-End Legal Training

PO Closing Outline July = New Year PO staff take a well deserved vacation! The fun begins for the rest of the finance team Very soon after that Finance team closes the campus legal books. PO staff add new lines for new fiscal year to MY’s May Year-End Legal Training

Resources Year-end Memo (example) Year-end Activity Schedule (PO area ) Year-end Checklist (Finance area) Open Purchase Orders Query (example) Open Purchase Order Activity Report (PS example) Departmental MY Listing (XL spread sheet) May Year-End Legal Training

May Year-End Legal Training