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State of Louisiana DIVISION OF ADMINISTRATION Office of Statewide Reporting and Accounting Policy

M. J. "Mike" Foster, Jr. Governor

Mark C. Drennen Commisioner of Administration

May 8, 2000

MEMORANDUM SA 00-31

TO:  Fiscal Officers
All ISIS Agencies
FROM:  F. Howard Karlton CPA,
Director 
SUBJECT: 

FY 00 Commodity-based Purchases Not Encumbered by 6/30/00

All commodity-based purchases and contracts for FY00 that require the encumbrance of AGPS purchase orders and CFMS contracts should be entered into AGPS/CFMS and encumbered on or before 6/30/00. After 6/30/00, it will not be possible to encumber a transaction in AGPS/CFMS. All increase and substitution OCHG/KAMDs to existing AGPS/CFMS encumbrances must also be entered and encumbered by 6/30/00. AGPS/CFMS will not allow an increase or new line to an existing encumbrance after 6/30/00. Although AFS will allow the encumbrance/increase of an AFS PO that date, it is in violation of DOA policy for agencies to encumber FY00 transactions after 6/30/00 in ISIS. Agencies should make every effort to enter and encumber all commodity-based purchases and contracts by 6/30/00. One solution for those agencies with field offices would be to give those offices a deadline sufficiently before 6/30 to allow for timely data entry into ISIS.

The Office of State Purchasing and OSRAP are aware that there are instances when last minute emergency purchases make it impossible to meet the deadline. An adjustment will be made to the dollar limit of the AGPS LDO transaction to allow agencies to pay for commodity-based purchases that were not encumbered by 6/30/00 and are $10,000 or less. The limit will be set back to $500.00 on August 16, 2000. In the future, agencies must take the necessary steps to ensure that all commodity-based purchases of $500.00 or more are entered and process through AGPS before June 30.

It should be noted that this change will raise the dollar limit on the LDO transaction for both FY00 and FY01. However, it is the policy of the Division of Administration that agencies should only process LDOs of $500.00 or more for FY00 purchases only. The use of the raised limit is intended for FY00 purchases only and it will be monitored by OSRAP. Any violations will be reported to the Office of State Purchasing and the Office of the Legislative Auditor.

Agencies should follow the procurement code as outlined in R. S. 39 Chapter 17. Failure to do so will result in the transaction being null and void. Receipt of the goods and services before June 30 by itself does not produce a bona fide obligation if procurement policy has not been followed. If you have any questions, call the OSRAP Help Desk at (225) 342-1097.

FHK: rtj

 


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