Purchasing Resources

Purchasing Log for FY2025

https://docs.google.com/spreadsheets/d/1Mt7tHZ-24yaHLMTgmomQy0wYPBqWT9tjBHDVIVR2r4c/edit?usp=sharing.

A few procedure notes:

1. Orders less than $10,000, with a reasonable number of order lines, and received before 2:00 pm are to be placed the same day.  Communication to the research labs if this is not possible explaining the situation with copy to the Administrative Manager.

2. The persons submitting the order requests should be compared to the list of approved orderers before placing the order, to confirm the faculty member has given authority to that person to request orders.  If they do not appear on the list, check with the lab manager or faculty member before placing the order.

3. For purchases on sponsored accounts (PG starts with a ‘F’ or a ‘N’), M-Reports should be reviewed for the specific PG prior to order placement to validate the project is active and there is budget line available for the order.  If no budget line exists, reach out to the research administrator.

4. Orders of $5,000 or more should receive prior approval via email from the project administrator, regardless of funding source, prior to placing the order.

5. All orders (M-Marketsite, P-Card, Direct Orders, PRF), regardless of size, are to be logged for confirmation tracking, workload tracking, internal controls, and MNI effort calculation purposes.

6. As confirmations are received for orders, the row is to be highlighted in yellow.  Follow-up should occur for orders where a confirmation is outstanding for more than 1 week.  Confirmations should be saved as a PDF on our server for document imaging.

7. Any compliance issues related to an order (wrong information provided, missing approvals, etc.) are to be logged, particularly for MNI, so we can charge them for this effort.  Repeated or concerning compliance issues should be reported to the Administrative Manager.

Finally, attached are purchasing statistics for this year.  Below are some general impressions from these statistics:

• A total of 4,206 orders were placed this year.  This is an increase of 8.8% upon last year’s orders.

• Average FTEs needed to place orders is 80%, not including remaining Purchasing clerk effort, including: concur reconciliation, SOA reconciliation, front office support, timekeeping, and document imaging.

• The vast majority of our orders cost less than $10,000, have 3 lines or fewer, and have no compliance issues.  Approximately 1% to 5% of our orders require significantly more work than the average order.

• The busiest workday for placing orders is Mondays, followed by Wednesday, Thursday, Tuesday, and Friday

• Over 75% of our orders placed are M-Marketsite orders.

• Approximately 67% of our orders are for the DHG, and 33% are with MNI.  Workload is slightly higher for MNI due to compliance issues for MNI.

A note that our Deposit Log was updated for FY2025.  As always our Deposit Log and Deposit Procedures are on our server in the folder: \\maize.umhsnas.med.umich.edu\HumGen\Groups\Administration\Deposits.

A reminder also that Jeff C. is the primary depositor for our Department, with Shaina as the back-up.  I am the primary reconciler of deposits made by Jeff or Shaina.  If both Jeff and Shaina are out, I would complete the deposit, and Dhammika would reconcile the deposit, to ensure proper internal controls.

Our Journal Entry Log has been updated for FY2025.  A reminder it is a Google Sheet available at: https://docs.google.com/spreadsheets/d/18_ONXissZSGJsUvSipjOFQ6V6cTmEdEANZJgrUOafAU/edit?usp=sharing.

A reminder that only Ruth, Dhammika, and Shaina are authorized to request Journal Entries. Molly may request journal entries related to GCP activity only through SSC, and only with prior approval from Ruth.

A few procedure notes:

1. When practical, Journal Entries (JE) should be requested for completion through Shared Services using their Journal Entry request form: https://teamdynamix.umich.edu/TDClient/40/Portal/Requests/TicketRequests/NewForm?ID=3DL-e-b54FE_.  We pay SSC for this service, and we should take advantage of it when practical.  Exceptions would be monthly recurring JEs, where we simply need to copy the prior month’s JE, or very simple JEs where it would take more time to request the JE from SSC than prepare it yourself.

2. All Journal Entries requested or prepared will be logged in the Journal Entry Log, for internal control and workload tracking purposes.

3. All Journal Entries should have appropriate back-up attached to the JE that documents the revenue or expenses being transferred.  For audit purposes, the header of the JE should clearly describe the purpose of the JE, or additional documentation should be attached explaining the purpose of the JE.

4. Shaina and Dhammika should note Ruth Halsey as the ‘requester’ for all of their JEs, regardless of dollar amount.  This will ensure Ruth receives a notification for each JE requested or completed, so it can be easily reviewed for internal control purposes.

5. Ruth will note Jeff Holden as the requester on all JEs, unless the journal entry has a journal line of $10,000 or more.  She will list herself as the requester for JEs with a journal line of $10,000 or more, as, if she lists Jeff H. as the requester for JEs with a journal line of $10,000 or more he will be unable to approve the JE.

6. Jeff Holden will approve all Journal Entries containing a journal line of $10,000 or more.

7. At the start of each month Ruth will review all Journal Entries from the prior month to ensure they were prepared correctly, appropriately justified, contained appropriate back-up documentation, and posted as expected.

The log for all Position Action Requests (PAR) changes has been updated for FY2025.  A reminder this is a Google Sheet available at: https://docs.google.com/spreadsheets/d/15bD2zJt48925ZOvgKznlO7kNH0hKQOQKDQikwgPmluA/edit?usp=sharing.

This spreadsheet is for workload tracking and internal control purposes.  Only Ruth, Dhammika, Shaina, Ashley, and Diana Barman (for faculty appointment changes) are authorized at this time to prepare PAR changes for our Department.  I have also granted Jeff Creech and Tom Sorenson access to this spreadsheet, for their information.

A few reminders for business process:

1. You may prepare your own PARs, or, if you desire, you may request PAR changes through Shared Services using their form: https://teamdynamix.umich.edu/TDClient/40/Portal/Requests/TicketRequests/NewForm?ID=j9ajWGHiM8g_.  For any complicated PARs it is recommended it be requested through Shared Services.

2. When you prepare a PAR you are to log the PAR under the blue column headings.  Ruth will complete the green, orange, and purple columns, as needed.

3. PARs may be prepared by staff in our Department ONLY for individuals who have their primary appointment in our Department.  If the individual’s appointment is in another Department, the other Department must prepare the PAR, but our Department must still approve of the PAR.

4. Only Jeff H. or Ruth may approve of PARs in our Department.  If other approvers are required, they are to be added after either Ruth or Jeff approve.

5. Ruth will approve all PARs prepared or requested by Dhammika, Shaina, or Ashley.  Jeff is to be included in the notifications for these PARs.

6. Jeff will approve all PARs prepared by Ruth or Diana, as they would be related to appointment changes, additional pay changes, or terminations for faculty or staff.  Ruth is to be included in the notifications for PARs prepared by Diana.

7. If effort changes will involve another Department’s shortcode, an appropriate approver from that Department is to be included in the approval flow.

8. Retroactive appointment changes, terminations, or additional pay changes are to be avoided.  If they occur, they are to be thoroughly justified and documented.  A reminder that retroactive terminations of temporary employees is not possible.

9. Retroactive effort changes of 120 days or greater are to be strictly avoided.  If they occur, they are to be thoroughly justified and documented.

10. For audit purposes, all effort changes should include documentation either in the comments or attached to the PAR that documents PI or Department approval of the effort change.  When an effort change is unusual, it is recommended that PI or supervisor approval be included for audit purposes.

11. For audit purposes, all appointment changes, additional pay changes, or terminations should include documentation of the change.  For terminations, a copy of the resignation or termination letter should be included.  For the renewal of an appointment, the signed renewal letter should be attached to the PAR.  For an appointment change, documentation about the appointment change should be attached to the PAR.  For additional pay changes, documentation as to the purpose of the additional pay should be attached to the PAR.

12. To ensure appropriate internal controls, Ruth will review all retroactive effort changes to confirm that the retroactive payroll was properly processed by the payroll office and follow-up if it is incorrect.  Due to the added re-work by the Payroll Office and our Department associated with retroactive effort changes, it is asked that retroactive effort changes be avoided when possible.