What Do I Do Now?

Sue Watts, Accounting Manager

The end of the fiscal year has come and gone, the district should have received everything on the purchase order by June 30, and now the vendor needs to be sure to bill for the product or service so the member can pay it within the encumbrance period.

Things to remember, if you are the vendor:

1. You can only bill for product or service that was provided by June 30. If there was product on either the Mohave purchase order (under the old process) or the member purchase order (under the new process,) that the member did not receive by June 30, be sure to contact the member to be sure they are going to issue a new year purchase order before you ship any additional product.
2. Any Mohave purchase order still open at June 30 will be cancelled, and any replacement purchase order must come from the member under the new process. Mohave will not transition any purchase orders into the new fiscal year.
3. The member needs to receive an invoice in time to process payment. If the purchase order came from Mohave, you must invoice Mohave, and we will bill the member and pursue collection of the invoice. If the purchase order was addressed to you by the member and came to you from Mohave with "MESC Reviewed" stamped on it, the member must be billed direct. According to the USFR, the encumbrance period is 60 days after end of the fiscal year. Be aware, however, that some districts make an effort to close their books earlier than that, so the earlier they are billed, the earlier they can process payment.

Things to remember, if you are a member:

1. If your purchase order was made out to Mohave, you should wait for an invoice from Mohave. If you have received the product, but have not received a Mohave invoice, please contact Mohave so that we can pursue getting an invoice from the vendor. If you have received a vendor invoice, please forward a copy to Mohave and wait for a Mohave invoice; sometimes the invoice goes direct to the member and we have not received a copy.
2. If your purchase order was made out to the vendor and sent to Mohave for review, you will have received confirmation from Mohave that the purchase order has been reviewed and forwarded to the vendor. Payment on purchase orders that were made out to the vendor should be paid direct to the vendor, even though your district is using the Mohave contract.
3. If there is a problem with an invoice, whether it is a Mohave invoice or a vendor invoice, if you have not received the product, if the product is not what you ordered, or if the product is damaged, notify the purchase order addressee immediately. Sometimes the member needs to take the first step to resolve issues and frequently, the person at Mohave or at the vendor who can help, doesn't know there is a problem until they hear from you.

I hope that the process change that went into effect on January 1, 2008, has been successful for both the vendor and the member. Mohave has tried to keep everyone informed of the process change but if you missed out, please visit our website, www.mesc.org.

As always, Mohave is here to help you use our contracts. If you have questions or problems, give us a call. We are always happy to help.

6/27/08, SW