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Procurement review flags warehouse accounting and centralizes supplies ordering
Summary
Reviewers identified historical GL coding that records warehouse inventory on asset lines rather than expense lines and instructed procurement to research the warehouse budget, produce an item list, and mandate ordering from the central warehouse to capture bulk savings.
During the budget review, procurement staff described plans to centralize office‑supply ordering through the city warehouse to realize bulk discounts and reduce ad‑hoc purchases. The procurement buyer said a forthcoming list will require departments to order from the warehouse for items such as water, paper and envelopes.
Finance reviewers raised a separate but related accounting concern: several warehouse purchases have been recorded to asset GL accounts rather than expense lines. The meeting record shows staff asking procurement to research the history of the warehouse GL coding and to confirm whether items should be expensed or capitalized; staff flagged this as an audit‑relevant question.
Staff described one recent one‑time purchase (a pallet jack) that was below the capitalization threshold and said the purchase will not be ongoing. They also recommended implementing a replacement schedule and tagging equipment so future lifecycle costs are visible. Procurement identified Jerome Wilson (buyer) and Leandra (inventory specialist) as operational leads for the roll‑out and training on the ERP warehouse visibility tools.
Next steps: procurement will confirm the warehouse budget and GL lines, circulate the list of mandatorily stocked items, and provide a training schedule so departments can see live inventory levels in the ERP before the change becomes mandatory.
