Minnesota State Implements Enhanced Purchasing Card Procedures to Strengthen Accountability

In a move to bolster financial efficiency and accountability, Minnesota State Colleges and Universities have updated their purchasing card (P-Card) procedures, detailed in their comprehensive System Procedure 7.3.3. The updated policy outlines strict guidelines for the use, management, and monitoring of purchasing cards across its colleges, universities, and system offices.

Streamlining Procurement While Ensuring Compliance

The P-Card program serves as a cost-effective and convenient method to streamline institutional purchases. By reducing the volume of individual vendor payments, the program enhances operational efficiency while maintaining stringent financial oversight. Aimed at fostering transparency, the procedure includes clear definitions, responsibilities, and a structured framework for obtaining and using P-Cards.

Enhancing Financial Integrity

The procedure also mandates periodic audits, reviews for inactive cards, and a detailed process for card returns and refunds. These measures aim to enhance financial integrity and ensure that funds are used strictly for their intended purposes.

A Culture of Transparency

Minnesota State’s updated P-Card procedures reflect a commitment to fostering a culture of transparency and accountability within the system. By establishing robust checks and balances, the institution is well-positioned to maintain trust and optimize its financial resources for educational excellence.

For more information, the full procedure is available on the Minnesota State website under System Procedure 7.3.3.: Minnesota State - Procedure 7.3.3 Purchasing Cards

Key Highlights of the Revised Procedures:

• Authorized Usage and Limitations:
  • P-Cards are strictly for institutional business purposes and prohibited for personal expenses.
  • Specific spending limits, merchant category blocking, and transaction caps are in place to prevent misuse.
• Oversight and Accountability:
  • Cardholders are required to review and submit transaction records within five days of receiving statements.
  • Supervisors must monitor expenses, ensure compliance, and address any misuse immediately.
• Prohibited Purchases:
  • Restrictions include personal items, alcohol (except in academic contexts), cash advances, and sensitive equipment without approval.
  • Usage of third-party payment services like PayPal is discouraged and heavily regulated.
• MDHR Compliance and Record Retention:
  • The procedure ensures compliance with Minnesota Department of Human Rights (MDHR) documentation requirements.
  • Institutions must maintain detailed records of all transactions for auditing purposes.
• Fleet and Institutional Cards:
  • Guidelines are provided for managing fleet cards associated with state-owned vehicles and virtual cards for specific institutional purchases.

Single Source Exemption Overview

A single source exemption applies when only one supplier is reasonably available after a thorough search. This is an exception, not the standard, as it bypasses open competition. The requestor must justify the necessity per Minnesota Statute §16C.02, Subd. 18, and Minnesota State Board Procedure 5.14.2 Consultant, Professional or Technical Services, and Income Contracts and Procedure 5.14.5 Purchasing. The full process for single source requests can be found: Single Source Supplier Process.

Key Criteria for Approval

A single source request is valid if:

• A public emergency requires immediate action.
• The item/service is proprietary or compatible only with existing systems.
• Competition was attempted, but responses were insufficient.

Not valid: Vendor preference, past relationships, special deals, or lack of planning.

Process in Marketplace

• Submit requests via Marketplace for compliance tracking and transparency.
• Post a Public Notice in Marketplace as a Single Source event.
• Attach the Single Source Form under "Tools > Internal Notes."
• For purchases over $100,000, pre-approval from the System Director is required.
• For purchases below $100,000, the institution CFO must sign before submission.

Compliance & Support

Staff are encouraged to follow these procedures to ensure compliance and transparency. Additional resources are available through the Procurement Community for further guidance.

We are excited to announce that this March, Minnesota State will be celebrating Procurement Month! This is a fantastic opportunity to recognize the outstanding contributions of our professionals who play a crucial role in the success of our campuses.

Throughout the month, we will have various categories and awards to celebrate excellence in procurement. We encourage all participating staff to nominate a peer for one of the four awards. This is your chance to highlight the hard work, dedication, and achievements of your colleagues.

Please stay tuned for an upcoming announcement that will provide detailed information on the award categories and the nomination process. Let's make this Procurement Month a memorable and inspiring celebration!

Thank you for your continued dedication and excellence.

Formation of the Supplier Diversity Advisory Committee

We have proceeded with the formation of a Supplier Diversity Advisory Committee. This committee is co-chaired by Dr. Priyank Shah and Dr. Tim Anderson, both of whom bring a wealth of experience and dedication to this initiative. The committee first met on February 03, 2025, marking the beginning of a concerted effort to drive supplier diversity initiatives forward.

The advisory committee currently consists of nine members from our various campuses, all volunteering their time to play a crucial role in shaping policies and strategies to ensure that diverse suppliers have ample opportunities to engage in procurement processes. By developing an inclusive environment, Minnesota State will create a more equitable and competitive marketplace.

Upcoming Opportunity Fair

In addition to the formation of the advisory committee, Minnesota State is excited to announce the Opportunity Fair, an upcoming procurement fair sponsored by the Department of Administration and designed to connect diverse suppliers with procurement officials and buyers. This event will provide a platform for minority-owned, women-owned, veteran-owned, and disability-owned businesses to showcase their products and services, network with potential clients, and learn about upcoming procurement opportunities.

The Opportunity Fair will feature mini sessions on various topics, including certification processes, government contracting, and strategies for competing in state procurement. Attendees will have the chance to meet with buyers from over 20 state agencies, making it an invaluable event for businesses looking to expand their reach and impact.

The Opportunity Fair will take place on February 11, 2025 at 9:00 AM at the Minnesota Department of Transportation Training Center in Shoreview. Please contact the Supplier Diversity Manager, Mo Yusuf, if you would like more information.

Supplier Spotlight: National Office Works

National Office Works (NOW) was incorporated in 2006. At the time, the company was named Chicago Green Office Company. It had aspired to offer “green” office products to the marketplace, as sustainability was high on the agenda of most organizations. After the recession, it re-branded as National Office Works because sustainability was not a priority in the marketplace, so their shifted their focus to minimizing costs and maintaining low expenses.

NOW has a staff of 11, which includes Joanna Davidson as CEO, Ian Davidson as Sales Director, A senior Accountant, 2 customer service representatives, 2 sales representatives, 3 delivery drivers, and a furniture planning manager. They are designated a WBE (Women Business Enterprise) by the WBENC. Joanna started the company and continues to lead its efforts to meet and exceed the demands and requirements of customers and partners.

National Office Works is a partner of Staples and provides small business customer service in collaboration with Staples’ national reach and inventory.

Disclaimer: Departments and employees are encouraged to review all available options and follow established procurement guidelines when considering vendor solutions.

Organization Message

The first step to any successful improvement is communication. While this newsletter broadcasts updates for all projects in procurement, Marketplace is leveraging the Organization Message to bring immediate updates on the Marketplace homepage. Users should consider adding the organization message to their personalized dashboards as it will contain information on outages, updates, and changes. It will also be available when any update is made through the notification icon at the top right.

Validation Changes

As of December 19, 2024, at 4:30 PM, when creating new contracts with specific values not matching, Marketplace will generate an error message that prevents users from submitting the contract for approval until values are corrected. The primary focus currently is matching the Total Contract Value and the Total Contract Value Range. Marketplace will provide instructions for resolving errors based on the mismatched values. You can find more details on the Marketplace Communications site.

Key Benefits of JAGGAER Marketplace

• Streamlined Process: Centralized sourcing activities with automated notifications and task coordination.
• Enhanced Transparency & Compliance: Built-in audit trails and access to past sourcing events.
• Improved Supplier Engagement: Simplified bid submissions leading to better competition.
• Real-Time Communication: Automated updates keep stakeholders informed.
• Data-Driven Decisions: Advanced analytics and reporting tools for vendor evaluation and cost savings.
• Time & Cost Savings: Automation reduces manual tasks and administrative expenses.
• Employee Coverage: Ensures continuity of sourcing events during absences or staff transitions.

Challenges of Not Using JAGGAER Marketplace

• Delays & Inefficiencies: Manual processes slow down approvals and sourcing events.
• Lack of Transparency & Compliance: Difficulty tracking sourcing activities and maintaining audit trails.
• Higher Administrative Burden: Increased paperwork and manual documentation efforts.
• Limited Supplier Engagement: Traditional methods discourage participation and competition.
• Missed Cost Savings: Fewer opportunities for competitive pricing and volume discounts.

JAGGAER Marketplace empowers institutions with modern, efficient sourcing tools that enhance compliance, improve supplier engagement, and reduce administrative burdens. We encourage all institutions to leverage this platform for a more effective and strategic procurement process.