P Card - Coordinators Annual Training

Procurement Card (PCard) Coordinators Annual Training

Revised Oct 2009

Steve LePage, CPCP Procurement Card Program Manager

pcard.ask@business.gatech.edu404-894-1009

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

pcard.ask@business.gatech.edu404-894-1009

Robert Sells, CAPP Procurement Card Administratorpcard.ask@business.gatech.edu

404-385-4162