Purchasing Card Update
On January 17th, Director Cayton requested an update on the Purchasing Card program (P-Cards)
Among the questions she asked were:
- What has been our $ return for using the Pcard for the last 2 years?
- Where does this $ go to? For what?
- We seem to buy a lot from Ace Hardware. Have we asked for a discount card from them?
- Same with Safeway; it looks like we also get fuel at Safeway so this could help.
Stacy Brown will address the program to the board and answer questions directors may have.
Date: February 20, 2014
To: Michael Green, Superintendent
Subject: P-Card/Purchasing Questions and Concerns
From: Stacy Brown, Director of Business Services
I received an email from Director Cayton the middle of January with some questions regarding the p-card program and also some of our purchasing policies and procedures. I would like to answer these questions and also have a discussion during the board meeting regarding purchasing and any other questions or concerns that the directors have. Please see the following questions and responses:
- What has been the return on the p-card for the last 2 years? During fiscal year 11-12 we received $6,600.00, in 12-13 we received $7,700.00 and so far this year we have received $3,000. However, we have only received one quarter so far this year. I expect to receive approximately $11,000 this year.
- Where does the money go and for what? In the past, the money has not been earmarked for a specific purpose, but has just gone to offset district operating costs. If there is something specific the board would like to earmark this money for we can discuss.
- We seem to buy a lot from Ace Hardware-have we asked for a discount card from them? Although the number of transactions may seem high from Ace Hardware, since 9/1/12 (the last year and a half) we have spent only $1,500 at Ace. We spoke to the store manager who explained that their rewards program would result in a voucher in the amount of $5.00 for every $250.00 spent. These would be sent back to the district and we could issue them to the employee to use when they shop the next time at Ace. Since these discount cards are the equivalent of cash, we would need to develop procedures to distribute and account for the vouchers. This is something we can discuss.
- Same with Safeway and also fuel at Safeway, do we have a discount card? The district does not have as Safeway club card at this time. Staff who make purchases at Safeway use their personal Safeway club cards to receive discounted merchandise on behalf of the district. Safeway gas rewards are only available for use when purchasing gas with cash or debit. Since our cards are credit only, we do not have the option of using the Safeway gas rewards. The employees who use their personal club cards, do earn personal fuel discounts, which the district cannot use. If we were to have district club cards, this is another area where we would need to look at procedures for monitoring. This is also something we can discuss.
- Toners – concerned that we are spending much more than we need to be on toners and suggested we try Southwest Office Systems. At the time of purchase, Stephanie checks pricing at CDWG, Office Depot, Quill (Staples) and KCDA for the best pricing. CDWG holds the state contract and comes in slightly under the other vendors unless there is a special. Steph checked with Southwest Office Systems for one of our most popular machines and found that her process were $10.21 per cartridge higher than CDWG. She did have a sale price that was only good for that month that was $5.21 higher than CDWG. All vendors have significant savings with remanufactured or compatibles. Per the tech department, we do not used remanufactured cartridges. If we go to remanufactured we may have room for savings, but that will need to be a discussion item with the tech department
Hopefully I have answered your questions. I look forward to a discussion at the board meeting.