1. Why focus on procurement?
Donna Sandoval, CGFM
April 11, 2018

2. About our group at this presentation
My current position and experience with Procurement
What is your position?
What is your experience with Procurement?

3. What about Procurement?
Beginning of any financial transaction
Establishing an encumbrance to commit your budget to prevent overspending
First step of accuracy in financial reporting
If you get it right you can evaluate financial status and make management decisions

4. Best Practices Procurement Code -
Arizona Procurement Code included in the Arizona Revised Statute (ARS)
Purpose of this act is to:
Simplify, clarify and modernize
Continued development of procurement policies and practices
Consistency
Increased public confidence
Ensure the fair and equitable treatment
Provide increased economy
Foster effective broad-based competition
Provide safeguards

5. More about procurement code
Arizona State Procurement Office
University of Arizona
ABOR Arizona Board of Regents Procurement Code applies to Arizona’s Public Universities
Pima County Procurement Code
Tucson Procurement Code

6. Certified Procurement Officer (CPO)
A CPO must have the necessary experience, training and qualifications to commit funds for procurements on behalf of your governmental entity.
Do you have a CPO?

7. Do you have procurement policies?
Processes to ensure you comply with the Code
Purpose:
Comply with federal and state laws, rules and regulations
To ensure timely and accurate purchasing practices
 Scope: Who does this apply to?
All department or university employees involved in procurement
Reviewing and Update annually to incorporate new requirements or address findings or problem areas

8. Example: 2016 Finding – Unrecorded Accounts Payable
Corrective Action Plan
A form, Internal Purchase Requisition (IPR) or Contract Request Form
Mechanism to request purchases – field offices or departments
Using the accounting system, it will record approvals and provides workflow
Provide training for staff of how to enter requisitions

9. What do requesters have to submit?
Approval
by a manager or director that is knowledgeable about the good or service
Identify the funding source
Budget planning or a spending plan – How does this fit?  
Quote(s)

10. How do we choose?

11. Tracking requisitions
A packet with IPR, quote(s) and approval
Date stamp, log-in and place in the basket
Entry into the accounting system by someone other than an accounts payable staff
Do you use the accounting system?

12. Approval levels Level 1 – Supervisor Level 2 – CFO or CPO
Review and conversion to PO by purchasing staff ( s go out every morning what you have in your que for approval)

13. Review of encumbrances
Quarterly more often monthly at year-end (increase or decrease of encumbrance)
Beginning of FY process
Rules on encumbrances
Un-planned or special requests

15. Accounts Payable Functions
Matching of invoices and POs
Errors in invoice or POs?
Make corrections

16. Financial Reporting
If payments are correct our financial status reports will be correct
Including budget projections, expense to revenue, federal financial reports

17. Year-End Processes Calculation of accruals
You could use balances on POs
Include all amounts, communicate with your program or service managers
Reconcile and review
What happens if liabilities are not included in accruals?

18. In Summary Know the rules Put policies or procedures into place
Update policies or procedures as needed
Training for staff
Address problems or obstacles
It is a work-in-process as rules change or staff changes

19. Donna Sandoval Donna.Sandoval@state.nm.us