1. May Forum May 9, 2013

2. REVERSE AUCTIONS Tim Walbert Pulaski Technical College twalbert@pulaskitech.edu

3. Proposed Rules R6:19-11-203. Hidden Damages. (a)Under subsection (14)(EE), “hidden or unknown damages” refers to damages to machinery needing repair that were not visible or readily apparent to, or were otherwise not within the knowledge of agency personnel at the time the piece of machinery was being serviced by a vendor. By way of example and not limitation, if an agency takes a piece of machinery to a vendor to repair one or more problems, and in the course of such work the vendor notices one or more additional problems that need repair, the agency may, but is not required to, authorize that vendor to undertake such additional repairs without having to solicit competitive bids. (b)“Machinery” means mechanical devices or combinations of mechanical powers and devices purchased or constructed and used to perform some function and to produce a certain effect or result. (c)This exemption does not apply to damages that are visible, readily apparent, or that are or could be within the knowledge of agency personnel with the exercise of reasonable inspection or investigation.

4. R1:19-11-242. Agency Commodity Management Procedures – Disposition of Commodities Other Than Computers and Electronic Equipment. (a)R ESALE. Marketing and Redistribution (“M&R”) shall make available to agencies, or tax-supported entities, or not-for-profit organizations as defined in Ark. Code Ann. § 22-1-101 commodities in serviceable condition and/or commodities of potential use by agencies, or tax-supported entities, or not-for-profit organizations for a twenty-day period prior to making them available to the general public. During the twenty-day hold period, commodities shall be sold to agencies, or tax-supported entities, or not-for-profit organizations by Marketing and Redistribution. Commodities that historically have not sold to agencies, or tax-supported entities, or not-for-profit organizations or items that are unserviceable may be offered for sale to the general public without the requirement of the twenty-day hold period. The Director may waive the 20 twenty-day requirement when he determines that such waiver is in the state’s best interest.

5. R3:19-11-242. Not-For-Profit Organizations. “Not-for-profit organization” means a private corporation under § 4- 28-201 et seq., that is an exempt organization as described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and that: (1) Has a benevolent, philanthropic, patriotic, or charitable purpose; and (2) Performs a function that would be performed at the public expense if it were not performed by the organization.

6. R1:19-11-244. Protest Periods. (b)(1) The second such period to protest is open only to those persons who actually submitted bids or responses to a solicitation. Such persons may protest the award of a contract in writing within fourteen (14) calendar days after they know or should have known of the facts giving rise to their protest. (2) The word “actual” in the phrase “actual bidder, offeror, or contractor” modifies each noun in the phrase, so that the second protest period is open only to actual bidders or actual offerors, as opposed to those persons or vendors that did not submit a bid or make an offer; and actual contractors, not merely subcontractors or potential subcontractors, whether named or unnamed. Persons or vendors that may have an interest in a particular solicitation or contract but who did not actually submit a bid are not eligible to protest an award of a contract.

7. R1:19-11-264. Submission of Contracts With Members of the General Assembly. (a)All contracts or amendments to contracts with a member of the General Assembly, his or her spouse, or with any business in which such a person or his or her spouse is an officer, a director, or a stockholder owning more than ten percent (10%) of the stock in the business must be presented to the Legislative Council or the Joint Budget Committee, if the General Assembly is in session. (b) Such contracts or amendments to contracts must be submitted to the Office of State Procurement in accordance with all applicable policies and guidelines as prescribed on the Office of State Procurement website.

8. Arkansas NIGP Meeting Thursday, May 23 rd 11:30 Bill & Hillary Clinton International Airport Box lunch – $10 Must respond by 5/10 to gwendolyn.matthews@lrsd.orgMust respond by 5/10 to gwendolyn.matthews@lrsd.org

9. Executive Order 98-04 Contract and Grant Disclosure Form By Ray S. Pierce, J.D.

10. Executive Order 98-04 Where can I find a copy? Go to the Office of State Procurement’s website ( http://www.dfa.arkansas.gov/offices/procurement/Pages/default.aspx )

11. Executive Order 98-04 Click on Government

12. Executive Order 98-04 Click on Regulations

13. Executive Order 98-04 Click on Disclosure Rules and Regulations/ Executive Order 98-04

14. Anyone Remember Me?

15. Executive Order 98-04 Issued by Governor Huckabee in 1998. Purpose is to require anyone attempting to contract with the State of Arkansas to disclose whether that person is a “current or former member of the General Assembly, Constitutional Officer, Board or Commission Member, State employee” (public employees) or the spouse or immediate family member of any of these. These disclosure requirements apply to not only individuals seeking to do business with the State but also to companies.

16. Executive Order 98-04 For companies desiring to contract with the State, they must disclose whether any public employees have a position of control or ownership interest of 10% or greater in the company. Agencies are prohibited from contracting with any public employee or company as described above unless: ▫ The contract was a result of competitive sealed bidding or a Request for Proposal (RFP). ▫The total consideration for the contract is less than $10,000.

17. Executive Order 98-04 In 2005, DFA promulgated rules to clarify and give more detail on the Executive Order. The 2005 rules provided several definitions that are helpful: ▫Agency or State Agency: Every department or board or commission, or other office of State government within the Executive branch. ▫Constitutional Officer: Governor, Lt. Governor, Secretary of State, State Treasurer, State Auditor, Attorney General, and Land Commissioner.

18. Executive Order 98-04 Definitions (continued): ▫State Employee: Any employee of a State agency in a regular salary or extra help position. ▫Immediate Family Member: Spouse, child (step- children included), parents (step-parents and in- laws included), and siblings.

19. Executive Order 98-04

20. Contracts exempt from disclosure requirements:

21. Contract and Grant Disclosure Form

23. “Individuals” means a person contracting with the State outside of a corporate entity (i.e. a sole proprietorship).

24. Contract and Grant Disclosure Form If the person or sole proprietor has nothing to disclose, then the “None of the above applies” box needs to be checked.

25. Contract and Grant Disclosure Form Here is an example of properly filled out disclosure form for Mr. John Q. Public, who is hoping to contract with the Department of Human Services. He has quite a family.

26. Contract and Grant Disclosure Form

27. Use this section when the vendor is a corporate entity (i.e. NOT a sole proprietorship). The disclosures here will be for people that have an ownership interest in (10% or greater) or a position of control in the vendor company.

28. Contract and Grant Disclosure Form If the corporate entity has nothing to disclose, then the “None of the above applies” box needs to be checked.

29. Contract and Grant Disclosure Form Example of properly filled out disclosure for a corporate entity (ABC, Inc.) looking to contract with the State. ▫ABC, Inc. is a for profit company that has 50 employees and a Board of Directors. ▫Several of the people that work for ABC, Inc. have a past or present relationship with State government. ▫ABC, Inc. will be contracting with Department of Health to provide services.

30. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that:

31. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that: He is a current

32. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that: He is a current legislator

33. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that: He is a current legislator, his dates of service,

34. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that: He is a current legislator, his dates of service, his name,

35. Contract and Grant Disclosure Form Here’s an easy one: Rep. John Doe is the Secretary of Board of Directors and owns 15% of ABC, Inc. Thus, his company must disclose that: He is a current legislator, his dates of service, his name, and his ownership interest and/or position of control.

36. Contract and Grant Disclosure Form Here’s another one we see quite often. It, too, is a fairly easy one. The CFO of ABC, Inc., seeking to contract with ADH, is also on the State Board of Public Accountancy.

37. Contract and Grant Disclosure Form So, from here, we see that the covered person is

38. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission,

39. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission, is currently serving

40. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission, is currently serving on the State Board of Public Accountancy,

41. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission, is currently serving on the State Board of Public Accountancy, his dates of service,

42. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission, is currently serving on the State Board of Public Accountancy, his dates of service, his name,

43. Contract and Grant Disclosure Form So, from here, we see that the covered person is on a state board or commission, is currently serving on the State Board of Public Accountancy, his dates of service, his name, and his ownership interest or position of control.

44. Contract and Grant Disclosure Form What happens when a covered person (the person that has to disclose) has an immediate family member that works in State government? The limitations of the form can make this difficult to completely explain. In a nutshell, the information needed is: ▫Where within government the relative works and his/her position. ▫The name of that relative. ▫His or her relationship to the covered person. ▫The covered person’s ownership/interest and position of control.

45. Contract and Grant Disclosure Form Let’s say Frieda Fasttalker is the sole owner of Flimflam, LLC. ▫Flimflam, LLC, is seeking a services contract with ADH. ▫Her son, Felix Fasttalker, is an epidemiologist with ADH. ▫Felix has nothing to do with Flimflam, LLC. ▫Under EO98-04 and the Rule, this relationship still must be disclosed. ▫So, how do we fill out the form to capture the information we need? ▫(Hint: It will be hard on the form as currently set up.)

46. Contract and Grant Disclosure Form How is the form filled out?

47. Contract and Grant Disclosure Form How is the form filled out? ▫Clearly, start by checking the current State Employee box.

48. Contract and Grant Disclosure Form How is the form filled out? ▫Clearly, start by checking the current State Employee box. ▫Next, fill out the State Government job held,

49. Contract and Grant Disclosure Form How is the form filled out? ▫Clearly, start by checking the current State Employee box. ▫Next, fill out the State Government job held, and dates.

50. Contract and Grant Disclosure Form How is the form filled out? ▫Clearly, start by checking the current State Employee box. ▫Next, fill out the State Government job held, and dates. ▫Here are the places where it can get very confusing.

51. Contract and Grant Disclosure Form It is important to keep in mind what information we’re trying to capture here and the point behind it.

52. Contract and Grant Disclosure Form It is important to keep in mind what information we’re trying to capture here and the point behind it. Basically, what the law is looking for is a) who is the State employee, b) the relationship between the State employee and the covered person, and c) the covered person’s relationship to (ownership in or position of control with) the vendor company.

53. Contract and Grant Disclosure Form Unfortunately, as you see, there’s not enough room on the form to put in all the State employee information here, especially if the vendor uses the online form. The online form doesn’t shrink or wrap text to allow for a lot of data entry.

54. Contract and Grant Disclosure Form One can try to put the necessary information in this box, but it has the same limitations.

55. Contract and Grant Disclosure Form So, what should a vendor do if there simply is not sufficient space to provide all of the necessary information?

56. Contract and Grant Disclosure Form So, what should a vendor do if there simply is not sufficient space to provide all of the necessary information? Provide additional information in an attachment. ▫Make sure the disclosure form refers to an attachment.

57. Contract and Grant Disclosure Form So, what should a vendor do if there simply is not sufficient space to provide all of the necessary information? Provide additional information in an attachment. ▫Make sure the disclosure form refers to an attachment. Use as many additional sheets of paper as necessary to provide all the information required.

58. Contract and Grant Disclosure Form Something like this:

59. Contract and Grant Disclosure Form Something like this: On an attached sheet, Frieda Fasttalker should explain that she is the sole owner of Flimflam, LLC, and that she has a son, Felix Fasttalker, who is an epidemiologist with the Department of Health, and that her son has no ownership interest or position of control in the business.

60. Contract and Grant Disclosure Form Make sure the vendor signs, dates, and completely fills out this box on Page 2 of the form.

61. Contract and Grant Disclosure Form REMINDER: The agency is responsible for filling out the “Agency use only” box on Page 2 of the form.

62. Contract and Grant Disclosure Form While that may seem complicated or cumbersome to a vendor, it may be necessary to capture all the information we need to evaluate the disclosures pursuant to EO98-04.

63. Questions ?

64. Year End Instructions Susan Rojas Aasis Service Center sue.rojas@dfa.arkansas.gov

65. Fiscal Year-End Deadlines All agencies must clean up purchasing documents before year-end to properly reflect their program activity level for FY 2013 by: ▫Eliminating unwanted Purchase Orders ▫Closing open Purchase Requisitions ▫Reducing open Funds Reservations ▫Deleting PO lines with discontinued account assignments (those carrying Cost Center, WBS Element, and/or Internal Order), which will no longer be valid in the new fiscal year

66. ASC will carry forward the following open commitments where there is sufficient budget in the new fiscal year to cover the commitment. NOTE: Agencies should be aware that POs and commitments carried forward into FY 2014 must pass a FY 2014 budget validation or they will be reversed and deleted in FY 2013 by ASC prior to the system being available for normal operations on Friday, July 5, 2013.

67. Exclusions from carry forward: No held or blocked Purchase Orders (POs) will be carried forward from FY 2013 to FY 2014. No Purchase Requisitions will be carried forward from FY 2013 to FY 2014. No Purchase Orders (POs) created prior to FY 2013 will be carried forward even if line items were added in FY 2013. Purchase Orders (POs) created in FY 2013 will be carried forward only if sufficient budget exists in FY 2014 to support the entire document.

68. A Goods Receipt (MIGO) transaction must not be keyed unless goods or services have actually been received. An Invoice Receipt (MIRO) transaction must not be keyed unless invoice has actually been received. Purchase Orders which require account assignment information changes (Cost Center, Internal Order, WBS Element, Asset number, and/or G/L Account) ▫Delete existing line with incorrect data ▫Add new line for desired account assignment

69. Agency Responsibilities Clear by posting or deleting all parked, saved as complete, held or blocked documents and invoices prior to June 28, 2013. Any documents remaining in parked status on June 28, 2013 prior to the start of the final payment run will be deleted by DFA – Office of Accounting. GR/IR items should be reviewed. Any old items should be researched and processed to completion through an invoice receipt or through the reversal of receipts (if paid in another manner), etc. This activity should be completed early in June 2013.

70. If your Outline Agreement has a validity date after 6/30/2013 it will show on the transparency website. If that is not correct, make your edits. POs containing assets should not be carried forward

71. End of Year calendar Friday, June 28 DFA personnel will be conducting year end related activities during this time period. Agency personnel will be locked out of the AASIS system. Friday, July 5 AASIS Service Center opens FY2014 period 1 for posting AASIS Service Center unlocks user roles by 7:00 AM to begin normal operations.

72. AASIS Reports to Assist You The following 4 slides offer a list of transactions to help you find, review, and make adjustments as needed for: Outline agreements Purchase requisitions Purchase orders AP documents

73. Transactions used for yearend cleanup: Outline agreements must be output in ME9K Outline agreements must have validity dates opened in order to close outstanding POs and then changed back. If Outline agreement has validity date passed 6/30/2013, it will show on the transparency website. – Change OA ME32K Where Do You Go To Look At Your Budget And View The Commitments? The Actual Budget report - Transaction Y- BCS_80000046 The Open Commitment Item report – Transaction ZCMT

74. What Reports Can You Run To View Your Open/Held Purchase Requisitions? List Display Of Purchase Requisitions – Transaction ME5A List Display Of Open Requisitions – Transaction ZOPENREQ What Reports Can You Run To View Your Open/Held/Blocked Purchase Orders? Display List Of GR/IR Balances – Transaction MB5S Purchasing Document Per Document Number – Transaction ME2N Purchasing Documents Per Account Assignment - ME2K

75. What Reports Can You Run To View Outline Agreements and their Release POs Purchasing Document Per Document Number – Transaction ME2N OSP B--Annual Minority Report - Transaction ZMM12 What Reports Can You Run To View Expiring Outline Agreements Purchasing Documents Per Document Number - ME3N Purchase Orders With An Open Invoice – Transaction ZPO_OPEN_INV Purchase Orders That Have Been Partially Received and/or Invoiced - ZPO_PARTGR_IR. What Reports Can You Run to Find Invoicing Errors? Vendor Line Item Display Report – Transaction FBL1N Purchase Order Vendor Payment Report – ZPOVP

76. What Reports Can You Run to Find Open AP Documents that are committing budget in error? Open Commitment Report – Transaction ZCMT Display Parked Document Report – Transaction FBV3 Parked Vendor Invoices – Transaction ZFI_PARKHELD_RPT Open Item AP Report – Transaction ZOPENITEMAP The Actual Budget Report – Transaction Y-BCS_80000046 Change Purchase Requisition – ME52N Change Purchase Order – ME22N Delete Parked Invoice Documents – FBV0 Delete Parked Invoice Documents – Transaction FBV2 Reversing A Posted But Unpaid Direct Vendor Invoice Or A Direct Vendor Credit Memo – Transaction FB08 Reversing A Posted But Unpaid Logistics Vendor Invoice Or A Logistics Vendor Credit Memo – Transaction MR8M. Clearing Vendor Open Items For A Logistics Invoice – Transaction F-44 Change An Unpaid Logistics or Direct Vendor Invoice Or A Logistics or Direct Vendor Credit Memo – Transaction FB02 What Reports Can You Run To View Vendor Status, i.e. Blocked/Deleted - Display Vendor - Transaction XK03

77. Points of Contact For AASIS courseware regarding PO and Invoice Clean-up: http://www.state.ar.us/dfa/aasis/AASIS_Training/MATERIALSMGMT/aasis_training_POVIC.html If you have any questions regarding performing AASIS transactions, please call the AASIS help desk at (501) 683-2255 and log a help desk ticket.

78. WORKFLOW What is it anyway? Susan Rojas Aasis Service Center sue.rojas@dfa.arkansas.gov

79. Objectives Today, we will discuss ▫ What is workflow? ▫ What is a release strategy? ▫ What is a release code? ▫ What is a release group? ▫ How does a manual approval effect workflow? ▫ Where can I read my messages? ▫ Who approves my document next?

80. Definitions Workflow Workflow for SAP, as the name suggests, means flow of work, may be from one person to another person. It is in fact a sequence of connected activities resulting in exchange of information. Release Strategy The release strategy defines the approval process for purchasing documents. The strategy specifies the release codes with which a complete purchase document must be released (approved) and the sequence in which approvals have to be given.

81. Definitions (cont.) Release Code Two character identifier used to approve a document. All requisitions valued less than $25,000 are approved with a single release code. All requisitions valued at $25,000. or higher require two approvals before the final release is recognized by the system. Release Group One for each document type. Contains one or more release strategies.

82. After Purchase Order Workflow transaction was changed to call up ME28 only, you can no longer reject or change a PO via workflow or manually change the document to remove it from your workflow inbox. You can still reserve/replace, forward to other users, and send email and attachments via the workflow. Results of Avoiding Workflow

83. How does workflow happen?

84. Agency Procurement Specialist Creates PO 4500279108

85. PO creator receives express workflow notification message to select approvers for PO 4500279108

86. Agency Procurement Specialist “Business Workplace”

87. PO document appears in workflow inbox for selection of an approver.

88. Click on “Display workflow log” icon to see a list of eligible approvers

89. Workflow log screen appears. Click on Agents button: Select approvers for purchase order 4500279108. A pop-up box will appear asking you to select “Which Agents you want to Display”.

90. List of people authorized to approve appears. The yellow icon to the right of the name signifies the workflow item will appear in their workflow inbox. Exit the screen and green arrow back to the initial workflow screen.

91. Execute the workflow item

92. Select approver by checking the box left of name. You can select more than one approver, if needed. Click on “Autosequence” to send to first approver.

93. Click “Done”

94. Workflow items disappears from creator’s workflow inbox.

95. It now appears in creator’s workflow outbox “Work items executed by me”. The status is blue, Completed.

96. Selected approver receives an express workflow notification to Approve PO 4500279108. Approver clicks on Inbox button to approve via Workflow, or approve manually via transaction ME28 (which ends workflow).

97. Document appears in workflow inbox with a status of “ready”.

98. To send document to another approver, click forward button

99. “Choose Agent” pop-up box appears. Enter AASIS log-in id to forward document. Green check to save

100. A pop-up box appears to send to more than one agent (Approver). Select Yes, to send to multiple agents, and enter their log-on ID in the box-up box. Select “No” to send to one agent.

101. Item will be forwarded to the selected agent, and moves from workflow inbox to workflow outbox: Forwarded workflow items.

102. To attach a note for an approver, click on Manage Attachment icon, then click on Create attachment.

103. Enter a header message and Green check.

104. Enter detailed message and save. Green arrow back

105. Attachment is added to the work item, PO 4500279108

106. Forwarded PO and attachment appears in workflow inbox of forwarded agent: with Status “Ready”.

107. New approver can approve PO document or can forward it back unapproved. Disappears from Workflow inbox when finished

108. Document and attachment reappears in workflow inbox.

109. Attachment can be read for new additions. Green arrow back to initial screen.

110. Click on document number to view attachments.

111. PO 4500279108 is display only. Cannot be edited or released.

112. Click on Header “Release strategy” tab to see release status. Green arrow back to return to Workflow.

113. Double click on document line item or click on execute icon to take you to Release transaction: ME28

114. AASIS sends you to ME28 to review document, see a print preview, see changes, and/or release document. To release, highlight document and click “Release + save”

115. Where is my document?

116. ZMM7 – Requisition to Check Report

117. ZMM7 - Requisition to Check Report