The DOC Purchasing Puzzle Putting the pieces together Diana Reese Colorado State Library

The Purchasing Pieces Sources of funding Identifying a vendor Deciding method of purchase Preparing the requisition Placing the order Receiving the order Ensuring prompt payment Reporting expenditures Sources of funding Identifying a vendor Deciding method of purchase Preparing the requisition Placing the order Receiving the order Ensuring prompt payment Reporting expenditures

Sources of Funding (see Procedures Manual/Purchasing) State Library (materials only) Library Operating (xx26) – only source available for supplies (Canteen) Division of Educational Services (Canteen) Other facility funds (probably Canteen) LSTA grants State Library (materials only) Library Operating (xx26) – only source available for supplies (Canteen) Division of Educational Services (Canteen) Other facility funds (probably Canteen) LSTA grants

Per state statute, net profits from the “Canteen, Vending Machine, & Library Account” must be spent in a manner directly benefiting offenders.

Library Operating (xx26) 90%-95% of the library’s allocation should be expended by March 31 st each year.

How library operating allocations are made Regional Librarians ask library staff for special needs (priority) requests for the next fiscal year, usually in February or March.

Priority (special needs) Items Defined Equipment and other items other than routine operating supplies.

Priority Item Examples Book trucks (carts) Seating Library Request slips Printed catalogs for AdSeg units DVD players CD/cassette players Computer monitors & printers Book trucks (carts) Seating Library Request slips Printed catalogs for AdSeg units DVD players CD/cassette players Computer monitors & printers

Library Operating Allocations (cont’d) The Canteen Committee allocates a portion of Canteen funds to libraries for operating expenses. RLs review & approve priority need items. Each facility receives a base allocation. Remaining funds are allocated on a per capita basis. The Canteen Committee allocates a portion of Canteen funds to libraries for operating expenses. RLs review & approve priority need items. Each facility receives a base allocation. Remaining funds are allocated on a per capita basis.

Each facility should have a librarian tasked with tracking expenditures (Excel spreadsheet) and maintaining the library’s budget records.

Identifying a Vendor There is a hierarchy for selecting vendors.

#1 Juniper Valley Products (Correctional Industries) If JVP makes the product, JVP must be the vendor – UNLESS a waiver is applied for and approved by the Ass’t Director for Educational Services and the Director of Colorado Correctional Industries.

JVP Furniture If the commodity is furniture, it is mandatory that all state agencies purchase from JVP, unless the CCI Waiver Request Form is submitted, per the State Purchasing Office’s State Price Agreements.

#2 DOC Warehouse The Cañon City (CAA1) & FLCF Warehouse catalogs may be accessed on the R: drive under “Warehouse Docs\Warehouse Catalogs” The BVCC warehouse catalog may be accessed on the Q: drive under “Warehouse Docs” The Cañon City (CAA1) & FLCF Warehouse catalogs may be accessed on the R: drive under “Warehouse Docs\Warehouse Catalogs” The BVCC warehouse catalog may be accessed on the Q: drive under “Warehouse Docs”

#3 Business Technologies (PC Purchasing link on DOCnet) Must be used for computers, printers, and monitors.

#4 State Price Agreements Generally, vendors who have negotiated price agreements with the State of Colorado should be the next choice when selecting a vendor. State Price Agreements However, it is not mandatory to use a vendor unless stated. Generally, vendors who have negotiated price agreements with the State of Colorado should be the next choice when selecting a vendor. State Price Agreements However, it is not mandatory to use a vendor unless stated.

#5 Colorado Cooperative Purchasing Project (Procedures Manual/Purchasing) Each year CLiC negotiates discounts with major library services vendors, e.g. Ingram, Highsmith, Demco, Brodart, Houchen Bindery. These may also be found at the CLiC website: Cooperative Purchasing Agreement.Cooperative Purchasing Agreement Each year CLiC negotiates discounts with major library services vendors, e.g. Ingram, Highsmith, Demco, Brodart, Houchen Bindery. These may also be found at the CLiC website: Cooperative Purchasing Agreement.Cooperative Purchasing Agreement

Method of Purchase There are 4 primary methods: Procurement Card (P-card) COFRS/Purchase Order DOC Warehouse Requisition BT PC Purchasing link on DOCnet There are 4 primary methods: Procurement Card (P-card) COFRS/Purchase Order DOC Warehouse Requisition BT PC Purchasing link on DOCnet

P-Card Must be used if the vendor will accept it. May not be used for Ingram. Only FTE employees may be P- card holders. A requisition should be used in order to document spending approval. Must be used if the vendor will accept it. May not be used for Ingram. Only FTE employees may be P- card holders. A requisition should be used in order to document spending approval.

All P-Card holders must follow the procedures contained in the Procurement Card Program Handbook.

COFRS (Colorado Financial Reporting System) requisition Used for any purchase that is not a P-card or DOC Warehouse purchase. Examples: JVP, Ingram, BT, computer software, vocational program services Used for any purchase that is not a P-card or DOC Warehouse purchase. Examples: JVP, Ingram, BT, computer software, vocational program services

DOC Warehouse Must use a DOC Warehouse requisition form specific to the warehouse being used.

Business Technologies All hardware & software purchase requisitions must be reviewed & approved by BT prior to purchase. Items (PCs, printers, monitors) purchased through BT’s PC purchasing link on DOCnet have implied written approval from BT. All hardware & software purchase requisitions must be reviewed & approved by BT prior to purchase. Items (PCs, printers, monitors) purchased through BT’s PC purchasing link on DOCnet have implied written approval from BT.

Business Technologies (cont’d) All other hardware or software purchases require written approval from BT. Approval is obtained by faxing request to BT Support Center All other hardware or software purchases require written approval from BT. Approval is obtained by faxing request to BT Support Center

Preparing a Purchase Requisition (PR) Every PR should include: PR # (may be assigned by facility) Requestor’s name & signature Regional Librarian’s approval Program Manager’s approval Complete description of item ordered Every PR should include: PR # (may be assigned by facility) Requestor’s name & signature Regional Librarian’s approval Program Manager’s approval Complete description of item ordered

Every PR should include (cont’d) Vendor discount (bid) #, if any Shipping/handling cost Justification for expenditure Accurate vendor & shipping info Appropriate account coding DOC billing address (if COFRS) Vendor discount (bid) #, if any Shipping/handling cost Justification for expenditure Accurate vendor & shipping info Appropriate account coding DOC billing address (if COFRS)

Library Operating Account Coding Fund506 Agy (Agency):CFC Org unitxx26 (xx refers to the facility) Appr (Appropriation): 003 Pgm (Program):8

Library Operating Account Coding Commonly used object codes 3121 – office supplies, book processing/repair supplies 6250 – library materials (capitalized) 3115 – toner cartridges4220 – registration fees 3120 – periodicals/subscriptions (consumable) 6222 – furniture (CI)

Expenditure Justification Common examples: Book processing & repair supplies Office supplies Library promotional materials Common examples: Book processing & repair supplies Office supplies Library promotional materials

Justification for computer hardware or software Should be based on: Work elimination (efficiency) Cost avoidance Improvement of services Improvement of decision making processes Should be based on: Work elimination (efficiency) Cost avoidance Improvement of services Improvement of decision making processes

DOC Billing Address Colorado Department of Corrections Accounts Payable P.O. Box 1010 Cañon City, CO Colorado Department of Corrections Accounts Payable P.O. Box 1010 Cañon City, CO 81215

Purchase Order (PO) A PO is issued by DOC Purchasing if a transaction is $5,000 or more Initiated by completing a COFRS requisition; be very specific w/ product description A PO is issued by DOC Purchasing if a transaction is $5,000 or more Initiated by completing a COFRS requisition; be very specific w/ product description

Purchase Order (cont’d) Req. must include written justification explaining the need Req. must have facility Business Manager’s approval Req. must include written justification explaining the need Req. must have facility Business Manager’s approval

Placing orders P-card orders are placed by the P-card holder, either by phone, fax, online, or in person. DOC Warehouse orders are usually input directly by the Program Manager’s Admin Ass’t. P-card orders are placed by the P-card holder, either by phone, fax, online, or in person. DOC Warehouse orders are usually input directly by the Program Manager’s Admin Ass’t.

Placing Orders (cont’d) JVP orders are faxed to the CI Fiscal office by the librarian, the Business Manager, or the Program Manager’s admin assistant. Find out what the facility prefers. Fax: JVP orders are faxed to the CI Fiscal office by the librarian, the Business Manager, or the Program Manager’s admin assistant. Find out what the facility prefers. Fax:

Placing Orders (cont’d) Orders for PCs, printers, and monitors are input using the PC Purchasing link on DOCnet, by the Business Manager or the end-user. Find out your facility’s procedure.

Orders requiring a P.O. Do not place the order. The Purchasing Office places the order by virtue of issuing the P.O. to the vendor. Exception: open Purchase Orders (usually to Ingram) Do not place the order. The Purchasing Office places the order by virtue of issuing the P.O. to the vendor. Exception: open Purchase Orders (usually to Ingram)

If your orders are delivered through a warehouse… After the order has been placed, fax a copy of the requisition to your facility’s warehouse. The DOC Warehouses will not deliver shipments without an approved requisition. (Purchasing sends copies of P.O.s to the appropriate warehouse.) After the order has been placed, fax a copy of the requisition to your facility’s warehouse. The DOC Warehouses will not deliver shipments without an approved requisition. (Purchasing sends copies of P.O.s to the appropriate warehouse.)

Receiving Orders When an order is received: Check the order in within 24 hrs. A check mark should be placed next to the “qty” in the shipped column for each item. If the “shipped” column is blank, the item is on backorder. When an order is received: Check the order in within 24 hrs. A check mark should be placed next to the “qty” in the shipped column for each item. If the “shipped” column is blank, the item is on backorder.

Sign and date the packing slip (pick list). Most libraries have a stamp for this purpose. If there is not room on the front of the packing slip, stamp & sign the back.

If the order is not complete (items are on back-order) write “ORDER NOT COMPLETE” directly below the receiving stamp and highlight the words in yellow.

Open P.O. If there are more orders to be placed on an “open-ended” requisition or Purchase Order: write “ORDER NOT COMPLETE” directly below the receiving stamp and highlight the words in yellow. If there are more orders to be placed on an “open-ended” requisition or Purchase Order: write “ORDER NOT COMPLETE” directly below the receiving stamp and highlight the words in yellow.

Receiving for P-Card Purchases Send the original packing list to the P-card holder for their P-card records. Keep a copy for the library budget file.

Receiving for DOC Warehouse Orders No receiving documents need to be submitted. The pick list is signed and dated upon receipt of the order. No receiving documents need to be submitted. The pick list is signed and dated upon receipt of the order.

Receiving for COFRS Purchases If the product was purchased w/ a COFRS requisition or P.O., sign and date the packing slip. Prepare a Receiving Report within 24 hrs. of receipt of items. If the product was purchased w/ a COFRS requisition or P.O., sign and date the packing slip. Prepare a Receiving Report within 24 hrs. of receipt of items.

Receiving Report (RR) A RR is written acknowledgement that the products were received in satisfactory condition. A RR authorizes Accounts Payable (AP) to pay the vendor. A RR is written acknowledgement that the products were received in satisfactory condition. A RR authorizes Accounts Payable (AP) to pay the vendor.

Receiving Report Packet A Receiving Report consists of (top to bottom): Signed & dated original packing slip Copy of Purchase Order (if issued) Copy of Purchase Requisition A Receiving Report consists of (top to bottom): Signed & dated original packing slip Copy of Purchase Order (if issued) Copy of Purchase Requisition

Do NOT stamp and sign the Purchase Requisition or Purchase Order.

Submit the RR packet to the Business Manager, who will forward it to AP. Your Program Manager may also want a copy for his/her records. Submit the RR packet to the Business Manager, who will forward it to AP. Your Program Manager may also want a copy for his/her records.

Ingram orders (DOC funds) Fax Receiving Report documents to Accounts Payable within 24 hrs. AP Fax: att’n Debi Meyers Send the hard copy through the Business Manager. Fax Receiving Report documents to Accounts Payable within 24 hrs. AP Fax: att’n Debi Meyers Send the hard copy through the Business Manager.

Ingram orders (CSL funds) Within 24 hrs., fax the signed and dated packing slip to the State Library, att’n Teresa Allen Within 24 hrs., fax the signed and dated packing slip to the State Library, att’n Teresa Allen

Backorders – P-Card If items were purchased w/ a P- card, follow the same procedure as for the first shipment. When the order is complete, write “ORDER COMPLETED” directly under your signature & date rec’d. If items were purchased w/ a P- card, follow the same procedure as for the first shipment. When the order is complete, write “ORDER COMPLETED” directly under your signature & date rec’d.

Backorders - COFRS Prepare another Receiving Report packet, following the same procedures as for the original shipment. When the order is complete, write “ORDER COMPLETED” directly under your signature & date rec’d. Prepare another Receiving Report packet, following the same procedures as for the original shipment. When the order is complete, write “ORDER COMPLETED” directly under your signature & date rec’d.

Budget Files The librarian should keep a copy of all purchasing documents on file for five (5) fiscal years. (Procedures Manual/Time and Records Management) A separate file should be kept for each fiscal year. The librarian should keep a copy of all purchasing documents on file for five (5) fiscal years. (Procedures Manual/Time and Records Management) A separate file should be kept for each fiscal year.

State Fiscal Year The State of Colorado’s fiscal year is July 1 – June 30.

Budget Reporting Requirements Budget reports must be submitted to the State Library annually. Information about the library’s expenditures should be sent to the facility’s assigned Regional Librarian by July 31 st each year. Budget reports must be submitted to the State Library annually. Information about the library’s expenditures should be sent to the facility’s assigned Regional Librarian by July 31 st each year.

CSL Purchases The Acquisitions Librarian tracks all State Library purchases. No budget reports need to be submitted for purchases using State Library funds. The Acquisitions Librarian tracks all State Library purchases. No budget reports need to be submitted for purchases using State Library funds.

Budget Reporting Information required for library materials purchased for each funding source: # books & $ amount # A/V & $ amount # subscriptions & $ amount Information required for library materials purchased for each funding source: # books & $ amount # A/V & $ amount # subscriptions & $ amount

Budget Reporting Information required for equipment purchased for each funding source: Make & model of equipment $ amount of each item Serial Number for each item Information required for equipment purchased for each funding source: Make & model of equipment $ amount of each item Serial Number for each item

Budget Reporting Report the total $ amount spent on operating supplies for each funding source. This includes everything except library materials and equipment.

Questions?