Sysco Purchase Agreement by puv17844


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                                                                             Contract Administration/
                                                                               Payment Procedures

                                                       The following is offered to agencies to clarify
    Inside This Issue   March 30, 2004   Issue 03-04   procedures for processing payments:
         Commonwealth Contract
1           Administration/ Payment                    FAP111-45-00(-06) states that an agency
            Procedures                                 shall select the appropriate payment method
                                                       for all goods and services. For payments
           Catalog Search Reminders                   against a document that has been entered into
2                                                      (and encumbered funds within) the state’s
           FY2004 Closing Memo Now Posted
                                                       procurement and accounting systems, an
           New Document Subtypes                      agency shall process an electronic invoice that
                                                       will liquidate the encumbrance when payment
           E-procurement Website Address              is authorized. If exercising small purchase
            Changes                                    authority, or if specifically authorized in the
                                                       terms of the contract, an agency may make
           Frequently Asked Questions
                                                       payments using a Procurement Card.           All
            Relating to the Newly Amended
            Travel Regs                                payments referencing contracts and awards
                                                       established in the state’s procurement
                                                       system shall be made in the state’s
           MARS Training Schedule
6           April-June 2004                            procurement system and reference the
                                                       appropriate award.

                                                       200 KAR 5:311 at:
      If you have questions, please contact:                                          and
            Customer Resource Center                   FAP 111-11-00 at:
                    Phone: 564-9641             
                                                       require that all Award/Contracts be modified
         Email:                if there is an increase to the contract. In
                                                       addition, for purchases of fixed amounts of
                                                       commodities,      supplies  or    equipment,
                                                       (Cont’d at top of next page)

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MARS AND BEYOND Newsletter                                                       March 30, 2004 Issue 03-04

modifications that increase the contract                                 Catalog Search Reminders
quantity shall not exceed 10% of the original
quantity unless the solicitation informed                        Procurement Desktop Users
prospective bidders that an increase in           should keep in mind that when searching the
quantity might be forthcoming.          This      electronic catalog the Catalog Search feature
restriction does not apply to construction        can retrieve a maximum of 1000 lines.
                                                  To locate a specific item that is in a large
When        issuing      payments       against   Catalog Master Agreement, such as Cardinal
award/contracts that have been established        Office Products, Duplicator Sales and
for a firm price, agencies should not add lines   Service, or Sysco Louisville Foods, it is helpful
to an invoice document, which do not              to use multiple search criteria.
reference the contract. If the payment is to
exceed the amount of the contract, the            For example, to find calendars in the Cardinal
proper procedure is to modify the contract in     Office Products CMA:
accordance with 200 KAR 5:311 to reflect the
increase, then pay against the contract.                     Type C-02249621 and calendar in
                                                              the Search for: field;
However, there are certain instances where                   Click the <Search> button.
freeform lines may be added to Invoices,
Delivery Orders or Catalog Delivery Orders        Your search will then return up to 1000 lines
that reference Master Agreements or Catalog       of calendars. If you need to refine the
Master Agreements, that are based on a            search even further, add another descriptor
vendor’s printed catalog. In these instances,     to the search criteria.
the vendor’s catalog item may actually be an
authorized purchase, but may not have been        To view other search hints, please visit the e-
added to the PD electronic catalog and            Procurement website at:
therefore is not available in the PD catalog
search.      Due to system size and space         et?object=CatalogSearch&action=show&main=yes
limitations, some PD electronic catalog items,    A “Search Hints” link is located to the right
such as office and building supplies, are         of the Search For field.
partial listings, and freeform lines may be the
only method of paying via a PD document that
will reference the contract. When adding                                  FY2004 Closing Memo
freeform lines, agencies should include the                                   Now Posted
item description in the line.                     The 2004 Closing Schedule is now available on
                                                  the Office of the Controller’s website at:
All referenced regulations and policies can be
found at: under
the link for Laws, Policies and Procedures.       (Cont’d at top of next page)

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MARS AND BEYOND Newsletter                                                     March 30, 2004 Issue 03-04

It includes the deadlines for final MARS                                       Frequently Asked
document approvals that apply to accounting,
purchasing, budgeting, and personnel matters.
                                                                                Relating to the
If there are questions, contact Phil Nally in                                   Newly Amended
Statewide Accounting Services at 564-7750.                                       Travel Regs

                                                    Will I only be reimbursed for the face
                 New Document Subtypes               value of receipts turned in, even if they
                                                     are less than the meal allowance?
               Users were unable to readily
               distinguish Grant contracts           Yes. If you turn in a breakfast receipt for
that    were     awarded    specifically to          $6.00 and the allowance is $7.00. You will
Universities.    Therefore, new document             be reimbursed for $6.00.
subtypes have been added to Procurement
Desktop, as follows:                                What if I leave the server a $2.00
                                                     gratuity at breakfast?
   MA-Grant/Universities
                                                     If the meal was $6.00 and you left a $2.00
   MA Mod-Grant/Universities
                                                     gratuity, you will be reimbursed the
                                                     maximum $7.00 breakfast allowance.
If you have a current MA-Grant or MA-
University contract that is in actuality a          Is it required that gratuities be included
Grant to a University, you may now process a         on meal receipts?
modification and select the MA-Mod-
Grant/Universities subtype.                          The amount of the gratuity can be printed
                                                     on the receipt or the traveler can write it
                                                     in, but the combined cost of the meal and
                E-procurement Website                the gratuity cannot exceed the meal
                   Address Changes                   allowance. Also, the gratuity cannot exceed
                                                     twenty percent of the cost of the meal.
            Effective March 19, 2004, the
Commonwealth’s    e-Procurement   website           When calculating the twenty percent
address was changed from https://ky-                 gratuity, is this based upon the cost of to:                                    the meal only, or does this include
                                                     applicable taxes as well?

Agencies should update any bookmarks or              The cost of the meal only; taxes are not
references to the old address.                       included in the total when calculating the
                                                (Cont’d at top of next page)

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MARS AND BEYOND Newsletter                                                           March 30, 2004 Issue 03-04

   Can I have multiple receipts that support        When I am entering information into a
    one meal?                                         TP/TPI document, meal expenses are
                                                      already shown. How do I reflect the
    Yes, as long as the combined total does not       Actual meal charges?
    exceed the meal allowance.
                                                      The system automatically calculates the per
   Can I purchase a prepackaged meal or a            diem based upon trip itinerary information
    “to go” meal outside of the meal time             entered previously. Travelers should reduce
    frame as established in the Travel Regs           the per diem amount from the maximum
    and be reimbursed for the meal?                   meal allowance to the receipt amount on the
                                                      Itinerary Tab, and include an explanation
    Yes, as long as the travel includes the           (e.g., Adj. made to reduce meals to amount
    entire meal period that is being claimed          expended).
    for reimbursement.
                                                     If I lose my receipt, can I turn in an
   Can I include an alcoholic beverage as a          affidavit and be reimbursed?
    part of my meal and be reimbursed if it
    is still within my reimbursable meal              Original receipts are required every time
    limit?                                            it is possible to retain one. But on those
                                                      rare occasions when receipts are lost or
    No, alcohol is not a necessary expense of         unavailable, an affidavit may suffice. It
    official travel.                                  must contain the same information that
                                                      was required for the receipt, as well as a
   Can I buy groceries and cook my own               notary’s signature and expiration date.
    meals and be reimbursed?                          The use of affidavits must be utilized
                                                      sparingly. Repeated use of an affidavit,
    It is acceptable only as an exception for         (for circumstances when a receipt could
    reasonable circumstances, such as a medical       reasonably be obtained) will be considered
    condition, rural work site or similar             abuse.
    situation and the request must be included
    in the approval process.      The grocery        Are there any other expenses where I
    receipt must be submitted, identifying            can request reimbursement without a
    items used for breakfast, lunch and dinner.       receipt, other than baggage handling?
    No personal items or alcoholic beverages          Sometimes I just can’t get a receipt.
    will be reimbursed. If there is more than
    one traveler, the receipt total should be         Every effort should always be made to
    allocated among travelers. The amount             obtain    a    receipt.    However,     some
    reimbursed to each traveler cannot exceed         circumstances have been identified as
    his calculated meal totals.                       being unlikely to provide a receipt. In
(Cont’d at top of next column)                        (Cont’d at top of next page)

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MARS AND BEYOND Newsletter                                              March 30, 2004 Issue 03-04

    these cases, the traveler should document       What is meant by the term “Agency
    the expense including the date, place,           Head”?    Does this mean the Agency
    amount and purpose. They include: parking        Head now has to sign all authorizations
    meters, in-state toll roads, parking lots        and vouchers?
    that DO NOT provide receipts, phone
    booths and coin operated copy machines.          The use of the term Agency Head includes
                                                     “or his designee”. If an agency’s internal
   Do I need a receipt if I tip the hotel           processes already have an “authorized
    cleaning staff?                                  approval system” in place, it will not be
                                                     necessary    to    change    its   existing
    A gratuity for the hotel cleaning staff is       procedures. Similarly, anyone performing
    not considered a necessary business              electronic approvals should already have
    expense and would not be reimbursable.           their    authorizations   or     supporting
                                                     documents ready for their approvals.
   The new regs say to use the Rand
    McNally Atlas or the Kentucky Official          With the Travel Reg changes, are we
    Highway Map. We already use another              still required to have the Finance and
    software program, do we have to                  Administration Cabinet approve Out of
    change?                                          State Authorizations for travel that is
                                                     outside of Kentucky?
    No, acceptable and recognized mileage
    software programs can be used.                   Yes, that has not changed.

   Where can I obtain a copy of the                Can we still use a P1 document for
    Kentucky Official Highway Map?                   travel payments to employees or are we
                                                     required to use the MARS Travel
                    Commerce Cabinet                 documents?
                   Department of Travel
                      502-564-4930                   We strongly encourage travelers to use         the MARS travel documents. If an agency
                                                     is currently using P1s for travel payments,
   Is it permissible to use invoices (instead       it should immediately request training and
    of P1s) to pay for meeting rooms and             begin conversion to using the MARS travel
    hotel agreements?
                                                     documents. Between now and July 1, 2004,
                                                     agencies should make every effort to
    It is actually the preferred process; that       obtain training and work with the MARS
    is, to use Procurement Desktop with              travel documents to use them solely as of
    contracts/invoices to pay for these types        JULY 1, 2004. The CRC has both classes
    of expenses.                                     and individual tutoring available to make
    (Cont’d at top of next column)                   this transition as smooth as possible.

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MARS AND BEYOND Newsletter                                                                        March 30, 2004 Issue 03-04

                                                                                                      Rev. 3/9/04
                                              MARS Training Schedule
                                                April - June 2004
     Start Date          End Date                     Class Name                                     Location
        04/01/04           04/01/04        Procard                                            Capitol Annex, Rm 462
        04/06/04           04/06/04        Contracting                                        Capitol Annex, Rm 462
        04/07/04           04/07/04        PD MRDB Tables In MS Access                        Capitol Annex, Rm 462
        04/08/04           04/08/04        Intro to MARS                                      Capitol Annex, Rm 462
        04/13/04           04/13/04        PD Payment Processing                              Capitol Annex, Rm 462
        04/14/04           04/14/04        Seagate Info Reporting                             Capitol Annex, Rm 462
        04/20/04           04/20/04        Beginning Steps in MRDB and Access                 Capitol Annex, Rm 462
        04/22/04           04/22/04        Traveling For The Commonwealth                     Capitol Annex, Rm 462
        04/27/04           04/27/04        Purchasing 101                                     Capitol Annex, Rm 462
        04/29/04           04/29/04        Fixed Assets                                       Capitol Annex, Rm 462
     Start Date          End Date                         Class Name                                 Location
        05/04/04           05/04/04        General Procurement                                Capitol Annex, Rm 462
        05/06/04           05/06/04        Fixed Assets                                       Capitol Annex, Rm 462
        05/11/04           05/11/04        Contracting                                        Capitol Annex, Rm 462
        05/12/04           05/12/04        PD MRDB Tables In MS Access                        Capitol Annex, Rm 462
        05/13/04           05/13/04        Intro to MARS                                      Capitol Annex, Rm 462
        05/18/04           05/18/04        Capital Projects                                   Capitol Annex, Rm 462
        05/19/04           05/19/04        PD Payment Processing                              Capitol Annex, Rm 462
        05/25/04           05/25/04        Personal Service Contracts                         Capitol Annex, Rm 462
        05/26/04           05/26/04        Procard                                            Capitol Annex, Rm 462
        05/27/04           05/27/04        Traveling For The Commonwealth                     Capitol Annex, Rm 462
     Start Date          End Date                         Class Name                                 Location
        06/01/04           06/01/04        Chart of Accts/Budget & Cash Control               Capitol Annex, Rm 462
        06/02/04           06/02/04        Purchasing 101                                     Capitol Annex, Rm 462
        06/03/04           06/03/04        Revenue and Receivables                            Capitol Annex, Rm 462
        06/09/04           06/09/04        General Accounting                                 Capitol Annex, Rm 462
        06/10/04           06/10/04        Advantage Payment Processing                       Capitol Annex, Rm 462
        06/15/04           06/15/04        Beginning Steps to MRDB and Access                 Capitol Annex, Rm 462
        06/17/04           06/17/04        Seagate Info Reporting                             Capitol Annex, Rm 462
        06/22/04           06/22/04        PD MRDB Tables In MS Access                        Capitol Annex, Rm 462
        06/23/04           06/23/04        Personal Service Contracts                         Capitol Annex, Rm 462
        06/24/04           06/24/04        Intro to MARS                                      Capitol Annex, Rm 462
        06/29/04           06/29/04        Contracting                                        Capitol Annex, Rm 462
        06/30/04           06/30/04        PD Payment Processing                              Capitol Annex, Rm 462
         If you are interested in attending any of the above classes please contact your Training Team Lead (TTL) or Kathy
    Hutcherson by Email at or by Phone at 564-9641Ext.113 to register. If you are unsure who you
                                               TTL is, please click on the website below:

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