Procure to Pay Services Information Roadshow. Procurement Services August 2013 financecustomercare@ohio.edu

Procure to Pay Services Information Roadshow Procurement Services August 2013 financecustomercare@ohio.edu

Procure to Pay Services Welcome Introductions and Agenda Procure to Pay Services Annual Report 10 minutes Contracts 15 minutes Insurance and Prevailing Wage 10 minutes Accounts Payable 5 minutes Procurement Commodities & Strategic Sourcing 5 minutes ebusiness Solutions 5 minutes Finance Customer Care 3 minutes Q and A

Procure to Pay Services Annual Report Accounts Payable Fiscal Year 2013, volume of invoices processed by Procure to Pay Services increased by over 2%. 175,141 invoices were processed in the fiscal year. 250000 200000 150000 100000 50000 0 2008 2009 2010 2011 2012 2013

Procure to Pay Services Annual Report Accounts Payable cont. These checks and electronic funds transfers were made to 13,267 unique suppliers in fiscal year 2013. This is over 33% decrease since 2008. 20000 15000 10000 5000 0 2008 2009 2010 2011 2012 2013

Purchase Orders The volume of purchase orders issued increased by over 100% in fiscal year 2013. This increase is largely due to the implementation of BobcatBUY. Transferring the procurement of goods and services from direct payments and purchasing card transactions to purchase orders decreases the risk to our institution while ensuring discounts on pricing with contracts. 20000 15000 10000 5000 0 2008 2009 2010 2011 2012 2013

BobcatBUY In fiscal year 2013, there were over 37,222 requisitions completed in BobcatBUY. Over a 100% increase from fiscal year 2012. Over 7,800 suppliers were added or updated in the system over the fiscal year. Campus is now 100% onboard. PO Revision Forms 2% Blanket Order Forms 4% Other Catalog and Non- Catalog Orders 41% New Supplier Request Forms 11% Direct Payment Forms 42%

Requisition Turnaround Times Over 37,000 requisitions in BobcatBUY - 74% turned around centrally in 1 day or less, and another 21% were executed in less than 5 days. 6-10 Days 7% 11-29 Days 5% 30+ Days 1% 2-5 Days 21% 1 Day 20% 0 Days 46%

Purchase Orders 32,977 purchase orders completed in BobcatBUY 15,480 were direct payments. During this fiscal year, we expect to increase the use of catalog and blanket purchase orders, while decreasing the use of direct payments. Other Catalog and Non- Catalog Orders 49% Direct Payments 47% Blanket Purchase Orders 4%

PO Turnaround Times Of the over 32,000 + purchase orders, 82% were completed from requisition to purchase order creation in one day or less, and over 95% of purchase orders in BobcatBUY were created in less than 5 days. 2-5 Days 13% 6-10 Days 3% 11-29 Days 1% 30+ Days 0% 1 Day 21% 0 Days 62%

Concur Expense and Travel Report Processing 31,281 Concur Expense and Travel Reports processed by Accounts Payable in fiscal year 2013. 2.28 Days = Average turnaround time on expense reports 75% decrease in turnaround time from fiscal year 2012 and a 274% decrease from fiscal year 2010. 10 5 0 2010 2011 2012 2013

Contracts and Independent Contractors Grant Baldwin Assistant Director, Contracts

Contracts for Goods and Services It is our role to: Review all contractual agreements procuring goods or services prior to execution Review for appropriate signature authority to assure compliance with State procurement laws & Federal acquisition laws University policy previously awarded bids Independent contractor determination maintain records of all procurement transactions for: Compliance with laws Internal and State audits Public records requests OU Purchase order

Contracts for Goods and Services What is a binding contract? It can be a combination of terms on: OU request for proposal. Proposal responses. Associated State, IUC, or E & I contracts. OU Purchase order Credit application Quotes Sales orders Delivery receipts Referenced terms on supplier s web site Invoices Written contracts

Contracts for Goods and Services Non-Negotiable under Ohio Law Indemnification Language Agreement to Arbitrate Jurisdiction Agreement to specific settlement remedies (legal fees)

Contracts for Goods and Services Problematic Clauses Auto-renewal Confidentiality Payment Terms Late fees, penalties Tax payments Escalation terms Deposits Access to University data

Contracts for Goods and Services Clauses we need to add: Termination for Convenience Insurance requirements Non appropriation clause Non Discrimination Campaign Contributions Ohio Conflict of Interest Drug Free Workplace

Independent Contractors IC relationships are the target of initiatives by federal and state governments, including: Internal Revenue Service OPERS Primary Implication: Whether a person providing a service is an employee or independent contractor is determined by federal and state agencies How this impacts Ohio University Determination process Contracts for all IC s. Independent contractors cannot be treated like employees Documentation and retention requirements

IRS Determination Examples Independent Contractors. Determine their own location, and tasks for completing their work Are responsible for their own training May have employees to achieve final results Are responsible for their own schedule Realize a profit /loss Are paid per project, not with scheduled payments All reimbursed expenses must be outlined in contract and submitted via invoice Furnish all necessary items for completion of work Are free to provide services to multiple clients at one time Is not doing work that is part of the university s mission and normally performed by an employee (i.e. teaching credit courses) A continuing relationship is not anticipated Cannot be fired if they produce a result based on the contract Incur liability for non-delivery

Prevailing Wage, EEO, and Insurance Jane Palmer, Prevailing Wage Coordinator/EEO/Insurance Administrator Richie Dillinger, Buyer and Insurance and Contract Coordinator

State required positions Prevailing Wage Coordinator s main duty is to ensure equal wages are paid to all contractors on OU construction sites and track lots of paperwork. External EEO officer is responsible for tracking OU s use of Minority and EDGE suppliers in compliance with state law.

Insurance Requirements As part of an initiative spearheaded by Risk Management, procurement is assisting with the collection of insurance from suppliers performing work for Ohio University. Risk Managements website: http://www.ohio.edu/riskandsafety/riskmanagement/require ments.htm Supplier Insurance Status (under Resources): http://www.ohio.edu/finance/procuretopay/index.cfm

Service Provider Requirements Current insurance on file if required: Supplier/Payee providing services Supplier/Payee who advises or provides counsel, ex. consultants, psychologists Performers with wild shows, ex. Pyrotechnics, throwing things into the audience, etc. State of Ohio Bureau of Worker s Compensation (BWC) Current OHIO Substitute W9: Form to be renewed every 2 years by Supplier Maintenance Team

Insurance categories Auto insurance card only: work located on campus but is low risk Examples; piano tuners, photographers, videographers, story tellers

Insurance categories, cont. Basic insurance includes: Commercial General Liability Commercial Automobile Workers Compensation (certain small business are exempt) Examples; building repair, copier maintenance agreements, equipment repair, fuel delivery, large florist displays, risky performers, etc

Insurance categories, cont. Consultants Basic Insurance requirements plus Professional Liability Food providers Basic Insurance requirements plus Food License All insurance certificates: Use as Certificate Holder address: Ohio University, 205 WUSOC, Athens, OH 45701 Include required additional insured language

Accounts Payable Gwen Nash, Assistant Director, Accounts Payable

Payments and Suppliers It is our role to: Process all payments for the acquisition of goods and services Audit for completeness and purpose to assure compliance with State & Federal laws IRS Guidelines University policy Maintain records of all payables transactions for: Compliance with records retention guidelines Internal and State audits Public records requests

Supplier Maintenance OHIO Substitute W9 Why we do the things we do IRS reporting IRS B Notices and fines (1099) IRS TIN matching (Is this a valid Tax ID number and does it belong to the person we are doing business with?) Additional data and supplier validation for State of Ohio (EDGE, MBE, etc.) Additional data for Ohio University Payment/Remit address, Purchasing/Ordering address, PO distribution method

Supplier Maintenance Continued SAM- Match against the federal government's System for Award Management Combines several systems used in the federal procurement and awards system including the Central Contractor Registration (CCR), Federal Agency Registration (FedReg), the Online Representations and Certifications Application (ORCA), and the Excluded Parties List System (EPLS) WHEN do we have to do these supplier database checks? At Supplier Set Up At Payment Reduce fraud and risk factors

Ohio University Payment Terms Net 30 days from date of invoice Email invoices to accounts.payable@ohio.edu

Strategic Sourcing Chad Burkett, Strategic Sourcing and Operations Manager burkett@ohio.edu Jim Miller, Facilities and Construction millej16@ohio.edu Open Position, IT, Research & AUX

Strategic Sourcing Why do we offer preferred suppliers? automatic invoicing don t have to attach quotes (catalogs are loaded) don t have to go through bid process (over $25K for goods, over $50K for services) pricing from preferred suppliers very aggressive free shipping;

Strategic Sourcing why Many orders arrive next day OfficeMax located in Columbus GovConnection located in Cincy area Unnecessary goods removed from preferred catalogs to avoid incorrect purchases Microsoft and Adobe Software stripped out of catalogs OIT has site licenses and deep discounts for these products

Preferred Suppliers Who are our preferred suppliers? IT goods GovConnection CDWG Dell Tech Depot has standard models in stock» Phone: 740-597-DEPO (3376) techdepot@ohio.edu Baker University Center 112 OIT technicians certified to repair them

Preferred Suppliers (cont ) Web design http://www.ohio.edu/finance/procuretopay/procurement/prefe rred_vendors.cfm Office Supplies Promotional Goods ASW Global / Printing Services New punch-out catalog coming soon

Preferred Suppliers (cont ) MRO (maintenance, repair and operations) Direct Resource, MSC Industrial Supply, State Electric, Grainger and Crescent & Sprague Classic Solutions Inc; Janitorial Supplies Scientific / Lab supplies Fisher Scientific, VWR Int l, Daigger Airgas, Industrial Gas Provider

Conflict Free Minerals On August 27, 2012, Ohio University announced its commitment to the Conflict- Free Campus Initiative. Ohio University released a Statement on Conflict Minerals calling upon industrial producers of electronics equipment to avoid the use of minerals sourced from terrorist-controlled mines in the Democratic Republic of the Congo (DRC). The statement supports the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which attempts to address the growing humanitarian crisis in the DRC. The act specifically addresses Congressional concerns related to the exploitation of minerals in the DRC and their use in electronics that the United States has purchased. Please check out your favorite electronics supplier's position on this humanitarian crisis and support this important initiative in the choices you make for your electronics purchases. http://www.ohio.edu/finance/procuretopay/procurement/conflictfreeminerals.cfm

ebusiness Solutions Melanie Glassmire, Assistant Director ebusiness Solutions

ebusiness Solutions BobcatBUY Concur JPMC Pcard (PaymentNet 4) Oracle Upgrade to version R12 SciQuest RFP Bid Portal (IonWave)

E-Procurement Statewide initiative with the IUC-PG Inter-University Council of Ohio Purchasing Group 85 members including state universities, community colleges, technical colleges and private schools Institutions partnering with SciQuest: Ohio University, Bowling Green State University, Miami University, Kent State University, University of Michigan, Purdue, WVU, Duke, Harvard, Yale State of Ohio - using SciQuest across 161 state agencies http://www.sciquest.com/newsroom/press-releases/state-ohio-selects-sciquestautomate-purchasing-processes-1

Why BobcatBUY? Overall goals for Ohio University and the Inter-University Council (IUC)/State of Ohio Negotiate discounts for OHIO Channel more spend to contracted suppliers to allow better leverage on price and terms Institutional and State-Wide savings with better direct spending (IUC) Reduce P-Card Usage to mitigate risk of fraud Shift from P-Card and Direct Payment to Purchase Order which have no pre-approvals for purchases.

BobcatBUY & Huron Report The controls and governance that comes with an eprocurement system are essential to maintaining compliance with laws, regulations, and grant terms and conditions. The previous extent of the Procurement Card program at Ohio presented a very large and very clear regulatory and financial risk to the university. The usage of an eprocurement system with pre-approved vendors and transactions is essential to mitigating risk and supporting university savings targets.

Finance Customer Care Center Jennifer Campbell Financial Information Analyst Dan Jones Financial Information Associate Christy King Accounting Specialist FinanceCustomerCare@ohio.edu or 740-597-OHIO Website http://www.ohio.edu/finance/customercare/index.cfm

Finance Customer Care Center The Customer Care team strives to provide Great Customer Service. Very knowledgeable in the multiple systems utilized at Ohio University and can provided detailed assistance with any navigation, process and entry needs. Aim to provide extraordinary Support and Guidance for resolution of any finance-related issue or concern. Currently, heavily focused on Accounts Payable and Procurement. Long term goal, expand to other areas in Finance.

The Ultimate Why Develop strategies to align and manage supplier relationships Compliance with the IRS Reducing costs Collaboration (http://www.ohio.edu/finance/procuretopay/upload/gongwer-report_- Fall-2012-Officials-Urge-College-Collaboration-During-Initial-Regents-Efficiency-Meeting.pdf) Mitigating risk Driving continuous improvement

Q and A Wrap UP