Our Process Has Changed to Better Serve YOU!

On January 1, 2008, Mohave Educational Services Cooperative, Inc., implemented changes to our member order and payment processes. Through the program the cooperative procurement process is simplified.

	Member purchase order is made out to vendor
	Mohave reviews member purchase order, stamps with “MESC Reviewed," then forwards via email to vendor and at the same time emails copy back to member
	Invoicing and payment are direct between member and vendor
	Contract pricing is available online to assist in quote verfication
	Minimum admin fee is eliminated
	Communication is direct between member and vendor
	Mohave offers assistance when needed

The information and updates posted on this page are intended to assist our members and vendors with the new process. A designated email address, processchange@mesc.org, is available for your comments. If you need immediate assistance, please contact us at 928-753-6945.

CONTENTS

Mohave Order Process Flowchart
Contract Pricing and Information
Information and Updates
Frequently Asked Questions
Contact Us

Contract Pricing is available for download to assist members in verifying pricing quoted by Mohave vendors as part of the due diligence process.

Specific contract information (e.g. specific terms, period of award, and Due Diligence documentation) including vendor and Mohave contacts for each contract is accessible online.

Mohave has prepared detailed information to address the process change background, impact, procedures, implementation. The presentation is available for download at the link below for your review and input. Updates will also be posted here to keep members and vendors up to date.

Process Change Presentation (Rev. 10/2/07) (PPT, approx. 4.2 MB)

Process Change Presentation (Rev. 10/2/07) (PDF, approx. 9.1 MB)

PROCESS CHANGE RELATED ARTICLES

Mohave eNewsletter

MOHAVE EXPO 2007 PRESENTATIONS

Payment and Admin Fee Process (PPT, approx. 6 MB)

Quote and Pricing Posting Process (PPT, approx. 2.2 MB)

Audit Process (PPT, approx. 3.5 MB)

Procurement Process (PPT, approx. 2.3 MB)

UPDATES FOR MEMBERS

Process Change Update for Members 12/4/07 (PDF, approx. 1 MB)

Process Change Update for Members 11/9/07 (PDF, approx. 920 KB)

Process Change Update for Members 10/5/07 (PDF, approx. 1.7 MB)

Process Change Update for Members 8/31/07 (PDF, approx. 2.8 MB)

Attachments:

New Process Flowchart 8/27/07 (PDF, approx. 50 KB)
Price Posting Plan 8/27/07 (PDF, approx. 270 KB)

UPDATES FOR VENDORS

Process Change Update for Vendors 12/4/07 (PDF, approx. 1 MB)

Process Change Update for Vendors 11/9/07 (PDF, approx. 1.7 KB)

Process Change Update for Vendors 10/5/07 (PDF, approx. 1.7 MB)

Process Change Update for Vendors 8/28/07 (PDF, approx. 100 KB)

Attachments:

New Process Flowchart 8/27/07 (PDF, approx. 50 KB)
Price Posting Plan 8/27/07 (PDF, approx. 270 KB)
Admin Fee Report (Excel, approx. 20 KB)
Admin Fee Calculator (Excel, approx. 70 KB)

Member and vendor questions and Mohave answers pertaining to the process change are listed below. If you have a question that isn't addressed, please send your inquiry to processchange@mohave.org.

Under the new process, will Mohave continue to help with invoice and order problems?
Yes, we will continue to help as requested by either a member or vendor.

Our purchasing software system is set to automatically send orders to the vendor specified on the PO. If POs are made out to the vendor, but routed through Mohave, this may create some problems. Are there options?
Our new process is in design stage. We will work with our focus groups to design and test procedures in order determine appropriate solutions and workarounds.

Why will member purchase orders be routed through Mohave?
Review of orders is important for compliance and monitoring issues. We believe this is the best manner to review member purchases for contract compliance prior to any goods or services being delivered. Receiving a correct purchase order should facilitate proper performance and payment in accordance with the contract. We will test and evaluate this part of the process as we move on.

Will Mohave issue a PO number?
Mohave will not issue a PO or a PO number. Vendor receipt of the member’s PO from Mohave, with an indication of Mohave’s approval, will be authorization for the vendor to proceed with the order.

How will the new process impact open POs on June 30?
The new process has no impact on the status of those POs. However, the member and vendor will directly coordinate the status of (terminate, rollover, etc.), and payment for those POs.

How are prompt payment discounts affected?
Under the new process, members will have the opportunity to take advantage of prompt payment discounts.

Will Mohave log member POs and why?
Yes, Mohave will log member POs to keep track of important information and to help verify vendor admin fee reconciliation.

How will Mohave handle change orders? Will members have to submit them to Mohave?
Yes, members will route change orders through Mohave. This provides an opportunity for Mohave to review the change in order to assist with contract compliance.

Can implementation be changed from January 1, 2008 to July 1, 2008, in order to avoid a change in the middle of the fiscal year?
We believe the best date to implement the change is January 1. This helps avoid confusion at the start of a new fiscal year. Mohave is developing plans to mitigate problems with a mid-year implementation. We will also discuss this concern with the member focus group.

Will the revised Cooperative Purchase Agreement (CPA) cover the member from the signing date to the implementation date of the change?
Yes, the revised CPA will allow members to use Mohave contracts from the signing date forward.

Will incorrect purchase orders be physically returned to the members?
Yes, incorrect member POs will be returned to members with information to help resolve the issues. After making the necessary corrections, the member will return the PO to Mohave, and Mohave will forward the member PO to the vendor.

Will the Mohave contract number be required on the member purchase order?
Yes, it will be extremely important that the member include the Mohave contract number on the PO. This is the only means for members, vendors and Mohave to identify Mohave purchases.

How will Mohave address purchase orders that are still open and incomplete on 1/1/08?
This issue is still under review. However, we anticipate that those orders will be completed under the existing process. That helps eliminate confusion and duplication.

Will the process change result in additional audit requirements for members?
No. Mohave’s process change should not affect the members’ audit responsibilities.

Will members still be notified that their purchase orders have been sent to the vendor?
Yes.

Has Mohave considered changing to a flat annual fee structure, similar to the one at State Purchasing?
Mohave and AzSPO are two different organizations. AzSPO is funded by the State of Arizona’s budget. The administrative fee funds Mohave. A flat fee sufficient to fully fund Mohave’s operations would be extremely difficult to allocate on a fair and reasonable basis, if this could be accomplished at all. We believe the current method of basing the fee on actual purchases is the fairest and soundest method.

How can members track those purchase orders going to Mohave versus those going to the same vendor off Mohave contract?
Listing the Mohave contract number on the PO will be the crucial step for identifying Mohave purchases.

Under the current procedure, all POs made out to Mohave are covered under a contract. Under the new procedure, both Mohave and non-Mohave POs will be made out to the vendor. This may create some reporting difficulties.
Most, if not all, financial and purchasing software has a means to track contract versus non-contract purchases. Larger member agencies already perform such tracking. If this is a concern for your agency, we suggest that you discuss it with your software company. We will also discuss it with some of our members and pass along their ideas.

Why will member purchase orders be routed through Mohave?
Review of orders is important for compliance and monitoring issues. We believe this is the best manner to review member purchases for contract compliance prior to any goods or services being delivered. Receiving a correct purchase order should facilitate proper performance and payment in accordance with the contract. We will test and evaluate this part of the process as we move on.

What should a vendor do when a purchase order is received directly from the member?
The vendor should wait until the approved member PO is received from Mohave. We will work with our vendor focus group to evaluate and test procedures for effectively addressing this situation.

Will Mohave issue a PO number? How do we know the order has been approved?
Mohave will not issue a PO or a PO number. Vendor receipt of the member’s PO from Mohave, with an indication of Mohave’s approval, will be authorization for the vendor to proceed with the order.

How will Erate and lease purchases work under the new process?
We believe the process for Erate and lease purchase have few changes. However, we will be working with the member and vendor focus groups to analyze and test procedures for these purchases.

How will the new process impact open POs on June 30?
The new process has no impact on the status of those POs. However, the member and vendor will directly coordinate the status of (terminate, rollover, etc.), and payment for those POs.

Will Mohave invoice vendors for the monthly admin fee payment?
No, it is anticipated that vendors will pay the admin fee from their records and submit a reconciliation report that to substantiate the payment amount. It this plan is problematic, vendors should contact Mohave for additional discussion.

If member is using both a Mohave contract and their own contract, will they need to use separate purchase orders?
The member will most likely determine the process for this situation. It is acceptable to us to include both Mohave and non-Mohave purchases on the same PO. However, the PO must clearly specify the items being purchased under Mohave contract.

Will payment terms change from net 45 days?
It is anticipated that payment terms will change to Net 30 days.

Will vendors still receive Open Order Report?
It is anticipated that this report will be discontinued because all orders will be between the member and vendor.

Is Mohave’s review of member purchase orders anticipated to be a permanent part of the new process?
Yes, Mohave intends to continue that step in the process to assist members and vendors with contract compliance. It will also provide assurance of our commitment to service.

We welcome your comments, suggestions, recommendations and thoughts about these changes and how they are impacting your organization’s similar processes, staff responsibilities and interaction with members. Please contact Mohave by phone, fax, or email and relay your thoughts on these changes.

Phone: 928-753-6945

Fax: 928-718-3236

Email: processchange@mesc.org