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2. Purchasing Budget Hearings – Purchasing Steve Shelley March 21, 2013 2

3. Purchasing Director of Purchasing Assistant Director Purchaser Purchaser (handles accounts payable) Purchasing Assistant (Acts as Procurement Card Administrator) Administrative Assistant Storekeeper 3

4. Purchasing MISSION STATEMENT The mission of Purchasing is to assist the University to obtain goods and services needed by faculty, students, and staff, to spend the University’s money wisely so that maximum value is obtained for its limited financial resources. 4

5. Purchasing 5

6. Average processing time from Requisition to Purchase Order is 1.55 days We do not incorporate Requisitions that require bids into this number 6

7. Central Warehouse Storekeeper Responsibilities Receives all materials shipped to MSU both physically and prepares all reports electronically Shipments made by MSU (receives all shipments) Secures an inventory of ~$220,000 thru issues & receipts Stores and maintains equipment for all departments located on campus Receives & stores all surplus equipment until disposed Makes deliveries to departments of received materials 7

8. Central Warehouse Note: If your departments are buying the same supplies repetitively with their procurement card, then those materials could be inventoried in the central warehouse with Purchasing buying for the best value to the University (Save You Money!) 8

9. HUB Data Stands for Historically Under-utilized Business Director of Purchasing acts as Campus HUB Coordinator Purchasing, at minimum, solicits two (2) HUBS for bidding purposes ( if at all possible ) Two reports to State each fiscal year Semi-annual Annual 9

10. HUB Data 10

11. HUB Data 11 2012 Goals2012 Actual Heavy Construction 11.9%45.7% Building Construction 26.10%61.2% Special Trades Construction 57.2%35.8% Professional Services 20%100% Commodities 12.6%47.3%

12. Procurement Card Avg. $147,000 per month 192 Card Holders 12 $1,764,000 per year Months

13. Procurement Card Avg. 890 per month 13 10,680 Transactions per year

14. Contract Administration 14

15. Contract Administration Director of Purchasing is now over contract administration Work load has increased over 100% by creating the contract administration office Two people in the purchasing office are handling the contract administration duties The Director of Purchasing The Administrative Assistant The purchasing office needs to add one additional person to the department to be able to handle the additional responsibilities. 15

16. Paperless Initiative 16 Question: How many sheets of copy paper are purchased each year by Midwestern State University?

17. Paperless Initiative Answer: – >8,400,000 Sheets This does not take into consideration what the print shop buys, or what is being purchased via the procurement credit card. 17 Question: How many sheets of copy paper are purchased each year by Midwestern State University?

18. Paperless Initiative Question: How many dollars does MSU spend each year on toner and ink cartridges for our printers? 18

19. Paperless Initiative Question: How many dollars does MSU spend each year on toner and ink cartridges for our printers? Answer: – > $75,000 per year This does not include the copy machines located on campus. This cost is built into your lease cost of the copier. 19

20. Paperless Initiative Sample of current paperless transactions: Direct Deposits—21,000 Checks - NOT BEING PRINTED Hourly Time Sheets—7,600 copies - NOW ELECTRONIC Purchasing, Accounts Payable, Receiving, Purchase Orders Change orders, Miscellaneous— >60,000 copies per year - NOW SCANNED Student – related – NOW ELECTRONIC Billings - 25,000 electronic Refunds - 7,400 electronic Postage savings of $17,000 in student-related mailings 20

21. Paperless Initiative Opportunities: Acculog Software Registrar Office—Graduate & Undergraduate Catalog  Potential savings up to $40,000 per print Direct Pay Vouchers > 10,000 Monthly Time Sheets > 7,000 Budget Transfers > 800 W-2’s and W-4’s > 2,500 Employment Contracts > 4,000  Notice of Employment > 3,000 PTF’s > 10,000 Routing Sheets & Contracts > 10,000 Banner Approval Module for Requisitions > 6,000 And many other opportunities throughout campus 21

22. Paperless Initiative Summarizing the requirements for a paperless initiative: Original form generated electronically and completed on-line Automatic edits within system Approvals are electronic Routing is electronic Once fully approved, information entered into system automatically Any attachments can be scanned and follows record/form digitally Repository for form/attachments are digital with easy viewing access What would it take for MSU to create a paperless initiative? 22

23. Paperless Initiative Current Capabilities: Banner already has forms for timesheets, PTF’s, budget transfers, requisitions, etc. Electronic approval and routing being used for hourly timesheets Document imaging currently being done in Admissions, Registrar, Financial Aid and Purchasing Exploring the capabilities we currently are paying for and possess within Banner system Cost may be minimal to expand use to other offices and areas Other campuses use for practically all administrative paperwork and files 23

24. Paperless Initiative Digital Signatures: Digital signatures post a person’s secured scanned signature onto an electronic or scanned document (such as contracts) Would require additional software outside of Banner Software is compatible with Microsoft Word, Excel, PDF & others Digital signature software costs are estimated to be ~$30,000 plus server, with payback less than one year 24

25. Paperless Initiative Suggested Next Steps: Support from senior administration Start a small working group Tackle a minor form (such as budget transfer) Work with one or two departments to beta test Pick the next form to target Roll-out to other departments via good communication, training and support Target 1-2 years for most major forms to go electronic, depending on resources and IT staffing availability 25

26. Questions? 26

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