1. PROCUREMENT SERVICES WINTER FORUM 1

2. Today’s Agenda: Tax Office Updates  Tax Office Training  3% or 1099 reporting updates Record Retention Best Practices  Guest Speaker: Barbara Benson eProcurement  New suppliers and what we’re working on Corporate Travel Card Updates  Travel Card Training  Restrictions Lean Projects  Purchasing  Copiers  Supplier Registration  Accounts Payable  Shared Services  BDP Small Business Plan Other Updates:  Small Business in eProcurement  Changes to the Check Mailing process  Procurement Desktop Reports  Biennium Close  Benchmarking  Security Update: SSNs on invoices Paper Conservation Program Supplier Spotlight: Office Depot 2

3. Tax News for 2012 3% Withholding  Governmental agencies must withhold 3% tax  Applies to payments over $10,000  Applies to payments for property or services  Bill to repeal has been introduced Expanded 1099 Reporting  1099 reporting will be required for all payments over $600  Will include payments to corporations (currently exempted from reporting)  Will include payments for goods, as well as services (currently only services)  Bill to repeal passed Senate 3

4. Tax Office Tax Office Starts 2011 Tax Training Series - WA Sales & Use Tax Overview – For more information and a link to the sign up page please see the Tax Training page.Tax Training page 4

5. ProCard Reconciliation & Record Retention Myths & Misconceptions QuestionAnswer  If we don’t have transactions in a particular month, do we print out the ProCard transaction detail report?  Can we scan our paper invoices and then shred the paper?  Electronic receipt/invoices from merchants – Do we have to print the invoice or can we just save the electronic invoice on our computer/system?  No, printing a blank report is not required. However, users are advised to check with their department internal procedures.  No. You are welcome to scan your invoices, but right now you must still keep the original paper.  ProCard advises you to print invoices and attach them to the report for reconciliation. However, from a records management perspective if they are both electronic and you can tie them together—and there is no paper--you don’t have to print. 5

6. ProCard and Records Management  All records (both paper and electronic) have a specific amount of time they need to be kept before they can be destroyed. For state budgets, this records retention period can be found at: http://f2.washington.edu/fm/recmgt/retention schedules/gs/general/uwgs6 http://f2.washington.edu/fm/recmgt/retention schedules/gs/general/uwgs6  For grant/contract budgets it can be found at: http://f2.washington.edu/fm/recmgt/retention schedules/gs/general/uwgs7 http://f2.washington.edu/fm/recmgt/retention schedules/gs/general/uwgs7 6

7. Paper v. Electronic Records  If you receive an invoice or receipt in paper, it has to stay in paper to meet records retention requirements. It can be scanned, but the paper is still considered your official copy.  If you receive an invoice or receipt electronically, you can keep it electronically and do not need to print.  If you have a mixture of paper and electronic records, right now it is best to keep everything in paper to satisfy audit requirements. For your own reference use, you are welcome to scan the paper and refer to the electronic file. 7

8. N EW E P ROCUREMENT S UPPLIERS eBioscience Inc. a manufacturer of antibodies, reagents and cytokines for the biotechnology, pharmaceutical and medical research community is now available in eProcurement. Agilent Technologies, Inc., a leading manufacturer and supplier of scientific test equipment, bio-analytical and electronic measurements tools, supplies and consumables, including Strategene products, is now available in eProcurement. Millipore is a Life Science leader providing cutting-edge technologies, tools, and services for bio science research and bio pharmaceutical manufacturing. Office Depot Green Cart feature will help your office become “greener” by recommending an alternate item with “greener” attributes when one is available. 8

9. eProcurement What are we working on??? Santa Cruz BioRad EnPointe Computer Hardware Distributor for Lenovo Life Science 9

10. Travel Card Travel Card Training RESTRICT NON-TRAVEL RELATED MERCHANTS ON THE INDIVIDUAL TRAVEL CARD. Examples: Barber and Beauty Shops Dating and Escort Services Massage Parlors Health and Beauty Spas Personal Services Jewelry Stores Gambling establishments Travel Matrix http://f2.washington.edu/fm/ ps/sites/default/files/cts/form s/Travel%20Matrix.pdf 10

11. LEAN Project Updates D ELEGATION OF A UTHORITY S OLICITATION S TRATIFICATION P AY VS. B UY C ONTRACT ACCESSIBILITY T OOLS AND T EMPLATES Goals R EDUCE TRANSACTIONS BY 80% R EDUCE PROCESS STEPS BY 50% I NCREASE CUSTOMER SATISFACTION I NCREASE CONTRACT UTILIZATION TO 100% » P ROCUREMENT E XPRESS : Kaizens 11

12. LEAN Project Updates : Copiers  Clean up existing orders/invoices issues  Select suppliers for assessment/pilot project  Select Departments for pilot Goals R EDUCE EQUIPMENT BY 25% R EDUCE PAPER USE BY 30% R EDUCE COST TO UW BY 25% R EDUCE INVOICE DISCREPANCIES BY 75% R EDUCE ENERGY USE OF COPIERS AND PRINTERS BY 50% Kaizens 12

13. LEAN Project Updates » S UPPLIER R EGISTRATION P ORTAL  Wave 1: target completion May 31 2011  Will allow suppliers to submit their information via one method (online)  Benefits:  cutting out redundancy and variation in the delivery process,  ensuring strict version control, and finally,  eliminating majority of manual data input in the process.  This first wave will allow us to cut down 55 steps in the present day process and dramatically reduce the turnaround timeline for the supplier registration process. 13

14. LEAN Project Updates » AP P RODUCTION L INE KAIZEN : FOCUSED ON STREAMLINING AP PROCESSES FOR INVOICES PROCESSED ON PAS PO’ S  AP will be transitioning into the old Travel space in February to pilot the “Production Line” kaizen  Looking at streaming how copies of invoices are sent to campus  Looking at increasing the threshold for NonRIP invoices » AP STAR TEAM KAIZEN : FOCUSING ON PREVENTING & RESOLVING INVOICE DISCREPANCIES  Working on Single Point of Contact (SPOC) for AP and Purchasing to review and resolve most discrepancies 14

15. LEAN Project Updates » S HARED S ERVICES W HAT IS IT : Joint project with College of Arts and Sciences to create a Shared Services Center to consolidate transactional activities L ATEST U PDATE :  Project manager is on board  Fiscal Specialist 2 positions will be posted  Office space established 15

16. LEAN Project: Small Business Subcontracting Plans 16

17. 17 Small Businesses in eProcurement

18. 18 Diverse Supplier Search

19. Checks ~ Effective February 15th ~ Distribution of paper checks for suppliers & travel reimbursements will begin its transition to Creative Communications. This change will be seamless to campus. ~ Phase 2 ~ Phase 2 will transfer the process of sorting, separating, and handling all vendor checks and travel reimbursements to Mailing Services. Impact to campus:  There will be a location change for payment-check pick-up.  No special requests will be allowed after a check has been issued The implementation timeline is dependent on programming requirements. As we get closer to a date for implementation, we will notify you of the date. 19

20. Procurement Desktop Reports Starting Point: 35 reports 20

21. Biennium Close Biennium Close Cut-Off Dates are currently under review  March 31st = recommended deadline for Large Ticket Purchase Orders How will we communicate the deadlines with you? - Procurement Services “What’s New” on the Web (link)link - Procurement Services eNews (link)link - Monthly Biennium Close eNewsletters (in development) - PAS Flashes - FM Newsletters (link)link - MyFinancial.desktop email news (link)link Are you new to Biennium Close? - Check out the online Biennium Close Awareness Training on the Procurement Services Website (in development) 21

22. UW Benchmarking Cost Study is Underway System-wide Benchmarking Cost Study Project  Increase process standardization & automation  Prioritize improvement initiatives by focusing on:  11 procurement process groups  4 finance processes  Requires collection of data on:  Staffing levels  Workloads  Transaction volumes  Quality indicators  Cost drivers  Planning started in November 2010  Project completion in late Spring 2011 22

23. Security Initiative: SSN Update from AP The Issue:Personal SSNs are often listed on invoices Here is what AP is doing to mitigate that risk: 23

24. Substitute House Bill 2287 Three components: 24

25. UW Paper Conservation Committee Paper Conservation Committee was formed in January 2010 and is sponsored by UW Finance and Facilities, and the UW Environmental Stewardship and Sustainability office Committee members include representation from the following:  UWMC Materials Management & HMC Purchasing  UW Procurement Services  UW Recycling & Solid Waste  UW Creative Communications  UW & UW Medicine IT Services  UW Bothell - Facility Services & Physical Plant  UW Tacoma - Finance & Administration  UW Faculty  UW Educational Outreach 25

26. UW Paper Conservation Program Website: http://f2.washington.edu/oess/paper-conserve  Profiles In Green Check out best practices on paper reduction from members of the UW community.  Beverly Anderson, School of Forest Resources Beverly Anderson  Kevin Steenis, UWIT Kevin Steenis  Howard Chizeck, Professor, Department of Electrical Engineering Howard Chizeck  UW Professional & Continuing Education UWEO UW Professional & Continuing Education  Contact Us If you have ideas or best practices, contact us at savepaper@uw.edusavepaper@uw.edu 26

27. Questions or comments? Environmental Stewardship and Sustainability Office http://green.washington.edu Email: oess@uw.eduoess@uw.edu Phone: (206) 221-0391 27

28. Supplier Spotlight: 28