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Purchasing Card/Accounts Payable Presentation
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Agenda
Introduction
Audit findings
Audit Recommendations
How can we help?
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Introduction
PCards introduced 1st May 2003
Significant growth in use
Internal audit of April 2008 data
Highlights improved communication/training
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Audit Findings
13 instances where reconciliation not submitted
9 instances where the cardholder’s supervisor did not approve the reconciliation
1 instance where the cardholder did not sign the reconciliation 1 instance in which an employee, other than the cardholder, signed
the reconciliation
99 instances of insufficient documentation
13 instances in which a transaction was split, circumventing the University’s procurement policy related to transactions over $5,000.
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Other Audit Findings
Miscoding to accounts
Incorrect taxes
Ineligibility or non-compliance of research expenses per Tricouncil
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Audit Recommendations
Enhancing communication with and training for cardholders and supervisors regarding their responsibilities, including authorization, coding, documentation and reconciliation requirements.
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Cardholder Responsibilities
Reconcile:
Cut-off is 25th of each month or if the 25th falls on a weekend, the next business day
Reconciliation reports due to Business Office within two weeks
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Cardholder Responsibilities
Authorization:
Only the cardholder may use the card Cardholder must sign reconciliation Cardholder’s supervisor must sign reconciliation
**Research** If a research purchase is made on a card belonging to someone other than PI/authorized delegate, must provide proof of PI’s approval/request.
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Cardholder Responsibilities
Coding:
Expenses coded to the correct account
Taxes properly recorded
**Research** Must be eligible expenses – check with Research Accounting if in doubt – before purchasing!
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Cardholder Responsibilities
Supporting Documentation:
Must be original receipts
Email for internet purchases plus Visa Receipt or Invoice
Receipts/packing slips for good received
**Research** require proof of PI authorization
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Audit Recommendations
Developing and implementing a monitoring function designed to identify internal control weaknesses, establish action plans to address such weaknesses, and issue violation warnings.
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Monitoring Function
PCard monitoring function in Accounts Payable
Monthly review of activity
Research reviewed for eligibility/compliance
Violation letters sent via email
Subsequent reminders sent via mail, copy to supervisor
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Audit Recommendations
Ensuring potential split transactions are identified, resolved and warnings issued to cardholders and supervisors for policy violations and employing consequences when appropriate.
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Standard Card Limits
Transaction Monthly
Operating $5,000 $20,000
Research $1,000 $10,000
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Split Transactions
Often circumvent Purchasing Policy
All reconciliations reviewed for split transactions
Occurrences forwarded to Purchasing Manager
Communication sent to Cardholder
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Audit Recommendations
Developing a process by which Purchasing Services is informed of all changes to employment status of faculty and staff that possess a purchasing card.
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Cardholder Status
HR informs us of some changes in employment status
You can also keep us informed of changes in your department (leaves, transfers, acting, CDA)
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Audit Recommendations
Implementing the appropriate best practices suggested by IAAS for managing and increasing the acceptance and usage of the University’s procurement card program.
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Increasing usage
Rogers and other regular bills
Conference registration
Courier Services
Aramark catering
Hardware Services
Bookstore
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How can we help?
For limit change requests, please contact Purchasing (and Research for cards linked to Research grants)
FAQ’s on Purchasing website
Training
Your ideas?
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Where to get information
Purchasing Services613-520-3622
Research Accounting613-520-3631
Accounts [email protected]
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Thank you for attending!