p card - coordinators annual training
DESCRIPTION
TRANSCRIPT
Procurement Card (PCard) Coordinators Annual Training
Revised Oct 2009
Steve LePage, CPCP Procurement Card Program Manager
Agenda
Program Overview Duties & Responsibilities Program Controls Purchases What’s New Recap Questions
Overview
Overview
PCard program is a highly efficient, critical component of the GT buy/pay process.
Primary tool for business related, non-equipment purchases under $5,000
Use of the PCard: Simplifies purchasing & payment process Expedites ordering & delivery of
goods/services Provides significant cost savings Provides electronic control & accountability
Overview
FY2009 Volume = $46.4 million FY2009 Transactions = 156,500 Cards = 1,800 Departments = 130+ Coordinators = 160
Duties & Responsibilities
Department Responsibilities
Ultimate accountability for program resides with Department Head
Department Head may delegate operational responsibility
Designate program officials Coordinator Approving officials (Approvers) Cardholders
Department Responsibilities
Ensure internal procedures are in accordance with Institute policy
Monitor for compliance Identify & address policy violations Maintain written list of Approvers that
identifies assigned cardholders
Department Responsibilities
Establish coordination procedures between cardholders, approvers, & coordinators
Ensure timely reconciliation, approval, and compliance reporting of monthly PCard
packages (bank statements & accountable documentation)
Develop procedures to ensure responsible budget holders verify charges to sponsored accounts
Department Responsibilities Establish redistribution procedures
Works PCard Manager Cardholders Proxy Reconcilers Journal Entry
* Re-evaluate card limits periodically * Review ongoing business need for
active cards annually
Department Responsibilities
Establish procedures for document retention
Minimum of 5 years – depending on fund requirements (sponsored awards – 3 yrs from date of final expenditure report submission)
Must be retained under control of the department business office – not the cardholder
Readily available for review/audit if requested
Coordinators
Oversee department program Manage day-to-day operations Establish and maintain card controls Facilitate unit based training & guidance
Primary link to GT PCard Program Manager Communicate program information to
appropriate personnel Facilitate monthly on-line compliance
report
Approvers
Responsible for review & approval of cardholder’s transactions
Ensure appropriateness of purchases to best of their knowledge
Verify completeness of documentation Signed & reconciled bank statements Detailed back up documentation
(receipts) Report monthly status to unit
coordinator
Program Controls
Program Controls
Maintain integrity of program Program established with built-in
oversight controls No system is 100% risk free Integrity of employees
Card Issuance
Only permanent, regular-status employees are card eligible
No student employees or Tech Temps
Cardholders authorized by department Verify business need PCard Request Form
Spending Limits Default accounting information
Background Checks
New cardholders must have criminal
and consumer credit checks on file
Existing cardholders are required to
have a criminal check on file prior to renewal card being issued – no credit check required
Background checks not required for FedEx
Employee Agreement Form
Cardholders must sign an agreement form prior to being issued a PCard acknowledging:
Receipt of training Understanding of responsibilities Understanding and acceptance of
consequences for PCard violations
Card Coded Controls
Customized to fit cardholder - based on job responsibilities, anticipated usage, historical spending patterns & budget limitations
Per transaction dollar limit Per cycle (month) dollar limit Vendor-type restrictions
Merchant Category Codes (MCC)
Transactions not within established parameters declined at POS
Card Security
Cardholders are accountable for all transactions on their PCards
The PCard and PCard number should be protected at all times
Card-sharing is strictly prohibited – cardholders may not “lend” their card or card number to anyone
Card Security
Cardholders must immediately report lost, stolen, or fraudulently used PCards to:
Bank of America at 1-888-449-2273
The cardholder’s approving official and the unit PCard Coordinator must also be notified.
The PCard Coordinator has the responsibility for communicating the information to PCard Administration
GT Policies
GT PCard Policy Manual Business & Finance Manual (BFM)
section 5.2.1.8
http://www.procurement.gatech.edu/policies.htm
Department internal procedures Must be in accordance with GT Policy
Training
Coordinators must attend initial and annual re-certification training classes conducted by Business Services
Cardholders must complete the PCard Cardholder Training & Certification on-line tutorial
Prior to card issuance Annually in January for re-certification
Training
Departments should ensure that: Approvers complete the PCard Cardholder
Training & Certification on-line tutorial Initially Annually thereafter
Card program personnel are trained on internal procedures
Card program personnel are familiar with small value purchase procedures
Training
Additional on-line training Works PCard Redistribution PCard Redistribution – Journal Entry PCard Monthly Compliance Report
Group training by Business Services available by request
* DOAS State Purchasing Division statepurchasing.doas.ga.gov (click on Knowledge Management)
Works
On-line access to transactions Management reporting
Cardholder statements Spend by vendor Spend by Project/Account Multiple transactions
Email notifications of activity
Cost Allocation
Defaults Each card assigned Project & Account
Reallocation On-line via Works Journal entry after posting to GL
Sponsored Projects PI review of expenditures to their projects
Cost Allocation
PCard default Account 714150 This account is appropriate for many charges
and need only be changed for the exceptions such as :
Telecommunications When required by
the fund being charged the unit’s internal procedures
Monthly Compliance Report
On-line report to track reconciliation and approval status
Assist departments with listing of cardholders requiring review
Assist departments with compliance
Card suspension for non-compliance
Monthly Compliance Report
Coordinators with a PCard may not “self-certify” on the monthly compliance report.
If the Coordinator is also a cardholder: The department must designate another
employee to perform the reporting duties for the Coordinator’s card.
In no instance should a department allow a Coordinator to approve or report on the compliance of their own card.
Audits & Reviews
Internal Auditing periodically reviews transactions in each department for: Adherence to policies & procedures Handling of violations Adequacy of accountable documentation Reconciliation/review process * GT employees can confidentially &
anonymously report suspected PCard misuse via Institute “Hotline”
Purchases
Authorized Uses of PCards
PCard may be used by employees for purchases of non-equipment, business related items within the delegated authority limit
Cardholders and approving officials are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A. § 45-10-1 et.seq. (State Employee Code of Ethics, Conflicts of Interest, etc.).
Authorized Uses of PCards
Cardholders must follow State (DOAS), BOR, and GT purchasing policies and strive to obtain the maximum value for each dollar of expenditure
* Order of precedence for selecting vendors:(1) Statewide Mandatory Contracts
(2) GT Agency Contracts
(3) Georgia Correctional & Georgia Enterprises
(4) Statewide Convenience Contracts and the open market
* Emergency Purchases * Sole Source Purchases
Unauthorized Purchases No personal purchases No employee travel & entertainment expenses No motor vehicle fuel
No alcoholic beverages or tobacco products
No professional services
No gift cards, stored value cards, prepaid
cards, calling cards, gift certificates
No funding of the BuzzCard
Unauthorized Purchases
No equipment costing $3,000 or more
No food except as authorized in BFM 5.2.1.9 No cash advances, cash refunds, or “store credit” No agency or affiliated organization expenditures
except for Study Abroad Programs No purchases from units of the Institute
No split purchases to circumvent transaction limits
No sales tax should be paid to Georgia vendors
Documentation Requirements
An accountable document (i.e. sales
draft or receipt) must be retained as
proof of purchase for each transaction Document must contain “line item
detail” Line item description Line item pricing
Used to reconcile monthly bank statement
Documentation Requirements
Lost or missing receipts: Cardholder is responsible for obtaining
duplicate from vendor If copy cannot be obtained, cardholder may
create a memo to be used as the receipt containing:
Required line item information for transaction Explanation of attempts to obtain copy from
vendor Excessive use of memos (more than 3 in FY)
may result in suspension of card privileges
Documentation Requirements
Audit reviews indicate increased scrutiny on vendors that appear “unusual” given our mission. Therefore if the business purpose of a purchase is not self-evident, cardholders should:
Annotate the documentation to clearly show the business purpose
Make certain the purchase is permissible on the funding source used
Sales Tax
Cardholders are responsible for ensuring vendors do not charge Georgia sales tax
“AP – Sales & Use Tax Certificate of Exemption / Georgia Form” is available on Business Services web site
If tax is erroneously charged, the cardholder must:
Contact vendor to obtain credit to the card Maintain documentation of attempts to obtain credit
with the transaction backup documentation If credit cannot be obtained from vendor, dept
must pay the tax Sales tax may not be disputed through the bank
Delivery of Goods
Goods should be shipped to official Georgia Tech business addresses only
No unauthorized home deliveries
What’s New - Recap
What’s New - Recap
Departments no longer required to maintain written procedures
Periodic re-evaluation of spending limits Annual review of ongoing business need for
cards Emphasis “Order of Precedence” for
selecting appropriate vendors Emergency purchases Sole Source vendors
Link to Institute “Hotline”
QUESTIONS
Steve LePage, CPCP Procurement Card Program Manager
Robert Sells, CAPP Procurement Card [email protected]
404-385-4162