MEMORANDUM SA 99-28
|All ISIS Agencies|
|FROM:||F. Howard Karlton, CPA|
|SUBJECT:||FY 99 Commodity-based Purchases Not Encumbered by 6/30/99|
All commodity-based purchases and contracts for FY99 that require the encumbrance of AGPS purchase orders and CFMS contracts should be entered into AGPS/CFMS and encumbered on or before 6/30/99. After 6/30/99, it will not be possible to encumber a transaction in AGPS/CFMS. All increases to existing AGPS/CFMS encumbrances must also be entered and encumbered by 6/30/99. AGPS/CFMS will not allow the increase of an existing encumbrance after 6/30/99. Although AFS will allow the entry and encumbrance of an AFS PO and an increase to an existing AFS PO after that date, it is in violation of DOA policy for agencies to encumber FY99 transactions after 6/30/99 in ISIS. Agencies should make every effort to enter and encumber all commodity-based purchases and contracts by 6/30/99. 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.
However, 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 6/30/99 and are $10,000 or less. Commodity-based purchases received on or before June 30, 1999 which have not been encumbered in AGPS by June 30 and are below $500.00 will be paid through AGPS using an LDO document type during the 45-day period as usual. The limit will be set back to $500.00 on August 1, 1999. 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 FY99 and FY00. However, it is the policy of the Division of Administration that agencies should only process LDOs of $500.00 or more for FY99 purchases only.
The use of the raised limit is intended for FY99 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 prior to 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.
|c:||Office of Legislative Auditor|
|Ms. Denise Lea|
|Ms. Susan Smith|
|Ms. Connie Carlton|
|POST OFFICE BOX 94095||STATE CAPITOL ANNEX||BATON ROUGE, LA 70804-9095|
|(504) 342-0708||FAX (504) 342-1053|
|AN EQUAL OPPORTUNITY EMPLOYER|