2013 annual board report - purchasing

HCDE Purchasing Division

Annual Board Report April 16, 2013

Prepared by: Jorgannie Garza, CPA, Purchasing Director

A Business Services Division Overseen by: Jesus J. Amezcua, CPA – Assistant Superintendent for Business Services

Harris County Department of Education— 6300 Irvington Blvd., Houston, TX 77008

Executive Summary Annual Board Report 2013

The Harris County Department of Education’s Purchasing Division is pleased to provide this Annual Board Report which offers an opportunity for the division to share an overview of the division’s programs, initiatives, and accomplishments. The Purchasing Division strives to provide the highest level of service and reflects this through its focus on customer service and its commitment to provide excellent purchasing support to members, vendors, staff, divisions, and administration.

This report highlights information of the Division, including:

Staff & Responsibilities

Training and Certification Programs

Recognition

Operating Measures

Plans for the future

Mission Statement

To exceed client expectations by maximizing fiscal resources and providing quality support services.

Purpose

The Purchasing Division is responsible for all purchasing-related activities for HCDE in

accordance with the authority delegated by the Superintendent, the Board of Trustees, and all

federal and state laws. HCDE’s Purchasing Division ensures that all purchasing transactions are

in compliance with all state, local and federal regulations.

2012-2013 Organizational Chart The HCDE Purchasing Division is part of the Business Services Division under the administration

of Mr. Jesus J. Amezcua, Assistant Superintendent for Business Services.

Functions

The function of the Purchasing Division is to procure goods and services that will support the

various divisions of HCDE. The procurement of these goods and services ensures that HCDE is

spending tax dollars in a cost-effective manner. Internal Purchasing serves all HCDE divisions. To

assist the Department in meeting its goals, the Purchasing Division is composed of several

groups that are responsible for interlinked activities.

Some of the functions that Internal Purchasing performs for the Department include:

Development of proposals (Issuing bids/proposals)

Assist in the development of specifications and scope of services

Assist in the Choice Partners Cooperative proposal process

Requisition, purchase order, and change order processing

Contract development and management

Preparation and processing agenda items for monthly Board of Trustees meetings

Administration of the Procurement Card (P-Card) Program

Staff training

Processing vendor packets

Assisting in the resolution of problems between HCDE and vendors

Customer service

Assistant Superintendent for Business Services

Purchasing Director

Procurement Manager

Quality Assurance Specialist Purchasing Specialist

Procurement Coordinators (2)

Staff & Responsibilities Jorgannie Garza, CPA, has served as HCDE’s Purchasing Director since 2009. The Purchasing

Division serves HCDE customers, including staff, vendors and cooperative members with a

variety of needs.

The Purchasing staff consists of:

Purchasing Director, Jorgannie Garza, CPA

Procurement Manager, Maya Thornton

Procurement Coordinator, Enrique Kladis

Procurement Coordinator, Kendra Jackson

Procurement Specialist, Elouise Lopez

Quality Assurance Specialist, Daniel Ornelas

Pictured from left to right are: Jorgannie Garza, Enrique Kladis, Kendra Jackson, Maya Thornton, Elouise Lopez, Daniel Ornelas, and Jesus J. Amezcua.

TASBO Recognized Award of Merit for Purchasing Operations The HCDE Purchasing Division received the Texas Association of School Business Officials (TASBO) Recognized Award of Merit for Purchasing Operations provided to school districts and Education Service Centers statewide that are committed to following professional standards in the acquisition of goods and services.

HCDE was amongst 26 entities receiving this prestigious award and recognized on February 28, 2013, during the Second General Session of TASBO’s 67th Annual Conference held in San Antonio, Texas.

In determining the Award of Merit designees, TASBO reviewed various procedures and practices including: organization, policies & procedures, contract operations, staff training and certification, p-card systems, use of technology, communication and management of co-operative programs.

A video of the award presentation will be available in the HCDEtv YouTube channel.

Recipients of the 2013 TASBO Award of Merit for Purchasing Operations

Staff Training and Certifications

TASBO Certifications and Conferences

The HCDE Purchasing Division is committed to providing continuous education to staff. Helping our staff members become TASBO certified gives HCDE a competitive edge and increased credibility in the management of the cooperatives.

Jorgannie Garza, Kendra Jackson, and Elouise Lopez, have all earned the TASBO Certified Texas School Business Specialist (CTSBS) designation and are close to completing the Certified Texas School Business Officer (CTSBO) certification. Enrique Kladis and Maya Thornton have each taken four out of the required seven required classes to complete the CTSBS certification

The Purchasing Division staff attended the 67th Annual Conference held in San Antonio, Texas, where they had the opportunity to network with other purchasing professionals, take education courses, and participate in round-table discussions.

HCDE continued its partnership with TASBO to provide certification courses at HCDE and making them available to surrounding districts, thereby assisting our division and members in saving costs related with employee travel.

Noetic Leadership

Kendra Jackson and Jorgannie Garza completed the Institute for Noetic Leadership. Maya Thornton and Enrique Kladis are currently enrolled in the program. This Institute is a learning community for those who wish to approach leadership with renewed intellectual and thinking skills. The goals of the Institute are to establish a commitment among us, individually and collectively and regardless of our levels of authority, to exhibit a diversity of strengths, to work together constructively toward a common goal, to find significant meaning and satisfaction in producing and providing high-quality products and services, and to make a positive difference in the equalization of educational opportunity throughout the County. The Institute faculty includes Jesus Amezcua, Dr. Richard A. Griffin, Les Hooper, and Jim Schul.

Other Training, Conferences and Certifications

Certified Public Accountant (CPA) – Jorgannie Garza maintains the CPA certification through continuing professional education courses. The CPA designation is one of the most widely recognized and highly trusted professional designations in the business world. CPAs are distinguished from other finance professionals by stringent qualification and licensing requirements. CPAs are required to follow a strict code of ethics and perform within the high standards of the profession as required in the purchasing field.

School Finance Council – Staff attends the monthly SFC meetings to keep up to date on purchasing and related policies and maintain the continuous education requirement for certifications.

The Purchasing Division staff also attended numerous in-house trainings; some of which were delivered by the Business Services and Human Resources divisions.

Purchase Order Processing Internal Purchasing supports all divisions with their needs for goods and services. Purchasing uses the Pentamation purchasing module. Elouise Lopez, Procurement Specialist, processes requisitions less than $2,500 and Enrique Kladis and Kendra Jackson, Procurement Coordinators, process requisitions over $2,500. All requisitions are subject to Budget Manager, Purchasing Director, Finance Manager, and Assistant Superintendent for Business Services approval.

During fiscal year 2012 a total of 2,347 purchase orders were processed for a total amount of $22,815,025.78. The table below depicts the number and amount of requisitions processed per category. 66% of requisitions processed under $2,500 account for 4% of total dollar amount; while 4% of requisitions over $50,000 account for 59% of total dollar amount.

Total Purchase Orders Processed by Fiscal Year

FY Total Amount

2006-07 2,308 $8.8 Million

2007-08 2,634 $11.4 Million

2008-09 2,410 $23.3 Million

2009-10 2,506 $22.8 Million

2010-11 2,117 $23.3 Million

2011-12 2,347 $22.8 Million

Percentage amount of requisitions processed per dollar category:

Type of Requisition Total

Processed % Total Amount %

Average Amount

Less than $2,500 1,540 66% $1,021,304.43 4% $663.18

$2,500 - $50,000 722 31% $8,337,557.38 37% $11,547.86

$50,000 - $1 Million 84 4% $10,357,207.97 45% $123,300.09

Over $1 Million 1 0% $3,098,956.00 14% $3,098,956.00

Total 2,347 100% $22,815,025.78 100% $9,720.93

Purchase Orders Processed by Division for FY 2012

Division POs Amount

ABC East 52 $84,756

ABC West 50 $36,983

Adult Education 67 $352,992

Alternative Teacher Certification 16 $22,619

Asst. Supt. for Operations (includes Client Development) 43 $178,865

Business Services 70 $810,656

Center for Safe and Secure Schools 12 $142,149

Choice Partners Cooperative 72 $335,820

Communications and Public Information 43 $88,684

Cooperative for After School Enrichment (CASE) 359 $7,562,154

Department-Wide 24 $74,200

Digital Learning 6 $14,193

Early Childhood Intervention 43 $91,525

Facilities 226 $6,229,666

Head Start 633 $2,429,673

Highpoint East 22 $41,012

Highpoint North 25 $131,095

Human Resources 79 $120,910

Instructional Support Services 72 $349,132

Purchasing Division 18 $17,966

Records Management 30 $507,661

Research & Evaluation 15 $16,294

Resource Development 30 $17,390

School Governance 7 $156,475

Special Schools 32 $565,127

Superintendent's Office 8 $5,287

Technology 90 $1,444,292

Texas LEARNS 25 $410,608

Texas Virtual Schools Network 53 $495,244

Therapy Services 25 $81,599

HCDE Procurement Card Program The Purchasing Division manages the Harris County Department of Education (HCDE) Procurement Card Program (“P-Card Program”). The purpose of the P Card Program is to establish an efficient, cost-effective method of purchasing and paying for small dollar transactions. The P Card is a Master Card issued in the employee’s name by JP Morgan Chase Bank and can be used with any merchant that accepts MasterCard as a form of payment.

The P-Card Program is designed to supplement our purchasing program by allowing users some flexibility. Use of the P-Card must not circumvent the purchasing process; all purchases made on the P Card must be for HCDE business purposes only. The employee is responsible for the security of the P Card and for the transactions made with it. The program was implemented in 2005 and currently has 91 users with varying credit limits (see chart).

Maya Thornton, Procurement Manager, is responsible for ensuring that all P-Card transactions are conducted in compliance with purchasing policies and procedures.

The average amount spent per transaction for the last three years has been $163.50.

Transactions per Fiscal Year

Credit Card Limits

Fiscal Year

Number of Transactions

Total Dollar Amount

Average Amount per Transaction

2010 5,058 $818K $161.71

2011 5,256 $858K $163.16

2012 4,358 $723K $165.90

Credit Limit Number of Cards Issued

$1,500 1

$2,000 5

$3,000 5

$4,000 13

$5,000 60

$6,000 2

$6,500 1

$7,500 4

Total 91

P-Cards Issued by Division

Department Cards

ABC East 2

ABC West 2

Administration 3

Adult Education 2

Business Support 2

Cooperative for After School Enrichment 3

Center for Safe and Secure Schools 2

Center for School Governance 1

Choice Facility Partners 6

Communications & Public Info. 1

Digital Learning 1

Early Childhood Intervention 1

Facilities 20

Head Start 3

Highpoint East 3

Highpoint North 1

Human Resources 2

Instructional Support Services 6

Marketing and Client Services 2

Purchasing 1

Records Management 2

Research and Evaluation 1

Resource Development 1

Special Schools 4

Technology 3

Texas LEARNS 10

Texas Virtual School Network 3

Therapy Services 3

Contracts All contracts are processed through the Purchasing Division by the Procurement Coordinators, Enrique Kladis and Kendra Jackson. Contracts are logged into a master database, stored in fire proof cabinet, and archived on the HCDE portal for quick retrieval. Sample templates are also located on the HCDE portal and have been approved by legal for Professional Services, Consultant Services, Speaker Agreements, Construction Projects, Service Agreements, and Interlocal Contracts.

Contract training is presented every year at the Financial Operating Guidelines training, periodically during the year for new Director Trainings, and on an as needed basis for individuals or divisions that seek additional help.

The table in the right lists the number of contracts processed by fiscal year (some are multi-year contracts).

Contracts Processed by Division during FY 2012

Division Contracts Division Contracts

Administration 22 ISS 144

Adult Education 54 Marketing 6

Alternative Certification 7 Purchasing 265

Business Services 34 Records Management 8

Cooperative for After School Enrichment

188 Research & Evaluation 11

Center for Safe & Secure Schools 85 Research Institute of Texas 1

Choice Facility Partners 13 Resource Development 12

Communications & Public Information

4 School Governance 5

Digital Learning 26 Special Schools 98

Early Childhood Intervention 26 Technology 52

Facilities 59 Texas LEARNS 20

Head Start 79 Texas Virtual Schools Network 20

Human Resources 12 Therapy Services 49

Total Contracts Processed During FY 2012: 1,300

Fiscal Year Contracts Processed

2007-08 961

2008-09 1,246

2009-10 1,204

2010-11 1,262

2011-12 1,300

HCDE Staff Training

Financial Operating Guidelines

The Purchasing Division offers training on updates to state, local and federal regulations, established expenditure limits, requisition processing, approved vendors, filing new vendor packets, the HCDE eBid System and eCatalog, code of conduct when making purchases, coordinating requests for proposals, contract development, P Card program, etc. as part of the annual training on Financial Operating Guidelines (FOG).

The training is offered yearly during the months of May and June and is mandatory for all employees who handle budget, purchasing, payroll, accounts payable, accounts receivable, procurement card, or general business office transactions. All division directors, managers, and supervisors are also required to attend. Several sessions are scheduled to ensure attendance.

The training is offered in an interactive, fun and informative way. There were 57 HCDE staff members who attended the annual FOG training during 2012. The Financial Operating Guidelines is available in the HCDE website and the Business Services and Purchasing internal portals.

Requisitions Processing Training

The Purchasing Division began offering training on processing requisitions in Pentamation in May of 2011. Interactive training sessions were held at the computer lab during the month of May. This training is mandatory for all staff involved in entering requisitions. A one-on-one training is provided throughout the year for new staff or those requesting it.

New Director Training

Mandatory training sessions are offered to new directors, managers, supervisors, or anyone interested in learning about the policies and procedures of the Department, especially as they relate to certain HCDE divisions. Purchasing provides a one-on-one session that includes CH Local and Legal updates, vendor packages, agenda item requirements and deadlines, contract requirements and signatures, information on purchasing cooperatives and approved vendors, and electronic requisitions.

The purpose of this training is for each division director to ensure that: the division is in compliance with written procedures, board policies, and any applicable local, state, and federal laws and regulations; the director implements comprehensive and effective internal controls and ensures that written procedures are employed consistently and are updated as necessary; and that the director stays current and in compliance with all taxing responsibilities involving equalization tax revenues and the payment of applicable local and state taxes.

Plans for the Upcoming Year Over the next year, the Purchasing Division will continue to assess and improve our internal systems and processes to meet our ongoing objective of streamlining operations and providing excellent customer service.

Pentamation Upgrade

The Pentamation system (Financial Software System) is in the process of being upgraded. A training program is being prepared to teach users how to use the new features available. Change orders will now be able to be processed by the divisions and will go through the same approval labels as requisitions.

The new features included in the Pentamation upgrade will increase the overall efficiency of the requisition process.

Training Programs

To ensure an effective procurement process, the Purchasing Division is preparing several trainings to assist users in their day-to-day purchasing activities; these include:

Contracts Clinic – The division is preparing a training program on contract processing. The training’s focus is to provide users an understanding of contract clauses; identify potential pitfalls in vendor contracts; and ensure that all HCDE contract contain adequate clauses. The training will also assist users in determining what type of contract to use and what forms must be submitted for processing

Processing Board Agendas – Train users on how to enter agendas in the Board Agenda Submission System (BASS); what type of template to use; how to word agendas; and attachment requirements.

P-Card Users Training – This will include a thorough understanding of allowable and non-allowable p-card purchases, what documents to include in the monthly report submission, and how to reconcile the monthly statements.

Newsletter

The launch of a quarterly newsletter is planned for July which will offer updates on all the purchasing operations; including, contracts processing, P-Card program, board agenda deadlines, and announcement of new vendors. The newsletter will also include changes in the legislature that affect purchasing processes and operations, tips and tricks, and vendor offers.

Beginning in 2014 the newsletter will be delivered monthly to ensure that users have an updated source of information and to make all frequent questions and answers available to our customers.

P-Card Program Updates

A new, easy to follow, P-card Program Manual is in the final stage of being released. A training program will be implemented for all users and will include video resources as well as one-on-one trainings for new users.

Update the Purchasing Website and Portal

We are currently working on designing a better website that includes more resources for both our internal clients and vendors. The upgrade is expected to be completed this summer.

The SharePoint Portal will also be updated to remove obsolete information and to allow users to navigate and find information in a timely manner.

Site Visits

To ensure that HCDE divisions obtain their goods and services in a timely manner, the Purchasing Division will conduct individual meetings throughout the year to forecast the division’s needs and ensure that their goods and services needed are procured ahead of time and in compliance with all rules and regulations.

For more information about this HCDE Purchasing Division Annual Board Report please contact:

Jorgannie Garza, CPA Purchasing Director

Harris County Department of Education Email: [email protected]