PROJECT ADVISORY TEAM ON PROCUREMENT
RECOMMENDATIONS
COORDINATION [and planning]
Library units, departments or teams should maintain adequate supply of critical or strategic but regularly used supplies, such as printer cartridges, so that no rush orders need be done. The library Purchasing unit should stop maintaining an inventory of supplies.
The principal investigator for any project funded by a grant, a gift or any other source different from the library operating budget, is responsible for knowing and complying with the permissible uses of the project’s funds.
Individual units, departments, divisions or teams are responsible for monitoring bills and ongoing use of cell phones, pagers, etc., once the instruments are purchased.
Electronic forms, databases, reports, etc., should be used to the maximum extent possible, rather than paper. Online approvals and routing should be provided. The UM Libraries’ “Supply and Equipment Requisition” form and the Boise-Cascade order form should become online forms.
Forms, databases, etc., should have multiple uses and users, should be standard rather than customized, and in all possible cases, the forms, databases, reports, etc., used and accepted by campus Procurement and Accounts Payable. In other words, redundant typing or custom forms, reports or databases should not continue.
The Libraries purchasing unit Head should continue to keep in-process files of purchase orders and accompanying documentation. Within thirty days of completion of a purchase transaction (i.e., purchase received, invoice paid) all documentation for that transaction should be sent to the Library Personnel & Budget Office for the archived files. The archived files currently in the Purchasing Unit should be combined with those in Library Personnel & Budget promptly. The archived files will remain in LPBO where space is available.
Backup for processing orders in the head of Libraries Purchasing unit’s absence should be provided. For example, the account clerk III could process straightforward orders for less than $5,000 and the head facilities and services could handle complex, sole or single source, or purchase requests for over $5,000.
The receiving part of Purchasing should have a list of administrative assistants, team members and other staff responsible for ordering for their units, to expedite finding the people responsible for deliveries which were not ordered through Purchasing.
Responsibility for reviewing purchase card transactions should be removed from Library Personnel & Budget. The new reviewer will be Director PASD. The Head of the purchasing unit will be the backup reviewer. The reviewer should have the authority and responsibility to review transaction logs and/or paper files of holders of purchasing cards for appropriateness of purchases and to advise a card-holder if purchases are not within accepted practice. If inappropriate purchases continue, the reviewer can and should bring the unacceptable practice to the attention of the person who approves the card-holder’s purchases.
The Director of PASD should begin signing all purchase orders, internal service requests, etc. The director of PASD as a member of LEC has a broader view of library expenditures and is better able to approve large ticket items. The head of LPBO, head of facilities and services, LPBO manager and the dean should serve as back-up approvers.
The purchasing unit should bring to the Director PASD (or other approver’s) attention any purchase orders or other requests that are questionable, if questions have not been answered through direct contact with the requestor.
Approximately a year after procurement guidelines and training (including additional training for the account clerk III ) are implemented, workload levels could be re-evaluated in the purchasing and receiving unit.
DOCUMENTATION [and guidelines]
Specific guidelines for procurement should be written and maintained on the Web as authoritative reference for staff. Administrative memos 1, 1a and 18 should be rewritten or removed altogether from the memo series. Web-based procurement guidelines (whether as part of the administrative memo series or separately) should include such items as:
· Definitions of each type of procurement,
· Explanation of what constitutes complete documentation for each type of procurement,
· Who can approve, process or transmit or charge various types and amounts of purchases. Suggestions:
-Administrative assistants and/or other personnel designated by directors can process Boise-Cascade orders for routine supplies of up to $250.00, with no other approval required.
-Directors or their designees should approve
requests for Boise-Cascade above $250.00 per order,
all purchase card requests,
any requisition to be submitted to Library Purchasing, etc.
· For most items, the initial requestor will likely be familiar with the products and vendors and therefore should supply that information with the requisition. The library Purchasing unit may also provide advice or comparative information on vendors and prices for items requested by purchase order and which cost $5,000 or less. For items $5,000 and over, the comparison or investigation will be performed by campus Procurement.
· Who can receive purchasing cards and what their responsibilities are in order to use and retain cards.
· It is recommended that no office furniture be obtained with purchasing cards, unless the cost is below the threshold per item for “big ticket items” set by LEC. All furniture must be purchased through State Use Industries and all purchases must be approved by LEC.
· Any office furniture requested from a source other than State Use Industries must be sent through the Purchasing
unit with all appropriate documentation.
· Administrative assistants and others with general purchasing cards are expected to use them for allowable, routine
purchases, within their spending limits for each card and with each item being less than the threshold set by LEC.
· Directors or their designees are to approve requests before a purchase is made with all cards- general or special
purpose. The booklet, “UM Purchasing Card User’s Guide” is the authoritative source for allowable purchases. It is on the Web at http://www.purchase.umd.edu/general/userguide.pdf.
· Purchase orders generated by the library Purchasing unit should include cost center information in the online PO form.
· Legitimate rush orders are those for which the need could
not have been anticipated in time to process a regular order. Rush or emergency orders must be accompanied with justifications and a director’s signature.
· The receiving part of Purchasing should have a procedure for quickly ascertaining the people responsible for unexpected or unidentified deliveries. The procedure could be via e-mail or telephone.
Guidelines should be written by a subset of the project advisory team on procurement, plus any other individuals needed.
The guidelines should feature links to the university’s Department of Procurement & Supply and the Accounts Payable Office.
COMMUNICATION
Specific responsibilities for staff dealing with budget or procurement need to be delineated and those roles communicated to all staff.
All units placing orders independently of the library Purchasing unit, to be delivered to the McKeldin or Hornbake loading docks, should notify Facilities at both locations as to the orders and approximate delivery dates (if known), if the shipments are large or bulky or contain expensive items.
The Library Executive Council should promptly inform the Purchasing unit, the head of Facilities and Services and the head of Library Personnel & Budget of approvals of “big-ticket” items (usually furniture or equipment).
EDUCATION
The Libraries should provide training in purchasing as part of the Learning Curriculum. Periodic “Orientation to Purchasing” classes should be provided or everyone interested, along with specific modules on purchase card, travel card, foundation accounts, etc. Departmental supply representatives and purchase-card holders should be required to attend classes pertinent to their responsibilities.
OTHER
Other topics arose that were outside the purview of this project advisory team. However, they are important issues and should be addressed, so the team issues the following recommendations, in addition to the ones regarding procurement:
The Library Executive Council should consider establishing divisional budgets with the directors being responsible and accountable for expenditures.
The Library Executive Council should consider the usefulness of the present system of cost centers.
The University of Maryland Foundation and the University of Maryland College Park Foundation should be encouraged to offer charge cards for appropriate accounts.
