Tim Slifka, CPPO CPPB Purchasing Manager, City of Southlake

Transcription

1 Tim Slifka, CPPO CPPB Purchasing Manager, City of Southlake 1

2 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 2

3 Identify Key Procurement Functions 3

4 Key Functions 1) The Right Price 2) From the Right Source 3) Per the Right Specifications 4) In the Right Quantity 5) In the Right Delivery Timeframe 4

5 5

6 Key Functions Requisition and Purchase Order Process Solicitation Process / Ensure Compliance P-Card Process Invoice Process Department Satisfaction with Services Internal Mandate or Request 6

7 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 7

8 Performance Measures Requisitions Rejected for Non-Compliance Data Entry Errors Missing or Incorrect Documentation Attached Solicitation Process / Policy Violations 8

9 Significant Non-Compliant P-Card Transactions Itemized Receipts No Sales Tax Correct Reconciliation Process Bidding Requirements Met 9

10 Non-Compliant No Purchase Order Invoices Invoices Received Without A Purchase Order 10

11 Satisfaction With Purchasing Services Rating of 90%+ (Very Good) 11

12 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 12

13 Define Purpose of Measurement Outline Key Accountability Indicators (KAI) List KAI and Target Define Purpose of KAI List Action Plan 13

14 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 14

15 Short Term Long Term 15

16 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 16

17 Steps Required Repercussions 17

18 Identify Key Procurement Functions Identify Performance Measures Identify Purpose Establish Timeframe Develop Action Plan Preparing for AEP Application 18

19 CRITERIA 4 MAINTAIN A CONTINUOUS IMPROVEMENT PROGRAM e. Performance Measures Documentation of the KAI s measured for procurement functions, the purpose of each measurement and the results of the actual measurements. 19

20 Article I. Purpose The purpose of this document is to outline the purpose of each Key Accountability Indicator (KAI) and the subsequent actions, if any, needed to improve the outcome of each. Some indicators are City-wide. Others are specific to the Finance Department. 20

21 Article II. Requisitions Rejected for Non-compliance Objective - Provide Financial Stewardship Metric - Requisitions Rejected for Non-Compliance Target <2% Results - FY % FY % FY % FY % Purpose - This KAI identifies requisitions which are rejected for non-compliance with City of Southlake s Purchasing Policy. The target of this KAI is less than 2% of all requisitions are non-compliant. Action Plan - This KAI is discussed during the Quarterly Director s update meetings with the City Manager s Office 21

22 Article II. Requisitions Rejected for Non-compliance Continued In the event a pattern is uncovered in which a department or employee repeatedly appears on the KAI listing for the same reasons, a remediation process is started which includes the following in sequential order: The Department Director is notified of the issue and asked to ensure the employee attends mandatory procurement training to supplement the annual training documented by the Purchasing staff. Repeated infractions occurring after the supplemental training may result in the employee not being able to purchase for their Department. This requires Department Director and Chief Financial Officer approval of the revocation of authority to purchase. 22

23 Article III. Non-Compliant P-Card Transactions Objective - Provide Financial Stewardship Metric - Significant Non-compliant P-Card Trans. Target - <1% Results - FY % FY % FY % FY % Purpose - This KAI identifies procurement card transactions which do not comply with the City of Southlake s Purchasing Policy. The target KAI for this item is less than 1% of all P-card transactions are non-compliant, with the specific items reviewed as follows: Receipts are itemized and the receipt date and amount match the Monthly Transaction Report. Ensure each transaction has a description, an appropriate Org and Object code, and a valid vendor # which has been certified by Purchasing staff. 23

24 Article III. Non-Compliant P-Card Transactions Invoices are not to be paid with a p-card, with the exception of the Purchasing Manager and the Accounts Payable Accounting Assistant. Purchases should not include sales tax. Returns of merchandise should be accompanied by a store credit receipt reflecting the reversal to the user s P-card. Exception requests are required for purchases of uniforms. All bidding requirements apply to P-card purchases. 24

25 Article III. Non-Compliant P-Card Transactions Continued Action Plan Non-compliance with any of the above items results in the employee and Department Director receiving a notice of non-compliance. The notice gives the employee and Director an opportunity to explain the reason for the non-compliance in writing. The notice is then forwarded to the City Manager s Office for determination of the consequences to both the employee and the Director, if applicable. Consequences include the following: Repayment of an invalid purchase, Authorization to use a p-card is removed, Disciplinary action process begins. Any one of these may be enforced, or the City Manager s Office may opt for another consequence based on the specific situation. In addition, this KAI is included in discussions during the Quarterly Director s update meetings with the City Manager s Office. 25

26 Article IV. Non-Compliant No P.O. Invoices Objective - Provide Financial Stewardship Metric - Non-Compliant No P.O. invoices Target - 4% FY % FY % FY % FY % Purpose - This KAI identifies invoices received which are not assigned to an approved PO and which do not comply with the City of Southlake s Purchasing Policy. The target of this KAI is less than 4% of invoices received are not assigned to an approved PO. Action Plan - This KAI is discussed during the Quarterly Director s update meetings with the City Manager s Office. In the event a pattern is uncovered in which a department or employee repeatedly appears on the KAI listing for the same reasons, a remediation process is started which includes the following in sequential order: 26

27 Article IV. Non-Compliant No P.O. Invoices Continued The Department Director is notified of the issue and asked to ensure the employee attends mandatory procurement training to supplement the annual training documented by the Purchasing staff. Repeated infractions occurring after the supplemental training may result in the employee not being able to purchase for their Department. This requires Department Director and Chief Financial Officer approval of the revocation of authority to purchase. This KAI is no longer tracked in However, our process has been modified to return invoices with no purchase orders to the vendor and the department is notified. The department as part of this new process must complete the requisition process and the vendor must submit a revised invoice with the provided purchase order number included on the invoice. 27

28 Article V. Staff Satisfaction with Purchasing Services Objective Manage the Business Metric - Staff Satisfaction With Purchasing Services Target 90 Percent Very Good FY FY % FY % FY % Purpose This KAI identifies overall staff satisfaction with provided Purchasing Services. The target of this KAI is a 90%+ rating of Very Good. Action Plan This KAI is discussed during the Quarterly Director s update meetings with the City Manager s Office. In the event a pattern is uncovered in which the Purchasing Department or employee of that department repeatedly is rated at less than very good, refresher customer service training may be required as needed based on the specific situation. 28

29 SCORECARD FINANCE SCORECARD 29

30 Tim Slifka CPPO, CPPB Purchasing Manager, City of Southlake