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PCARD ADMINISTRATION [email protected]
Using the PCard at Georgia Tech
Procurement Card (PCard) Cardholder and Coordinator
Training & Certification
January 2014
Slide 1 of 76
Please note: This version is for review purposes only. Training as a
new cardholder or annual re-certification must be completed via the OOD Trainsweb site at:
http://www.trainsweb.gatech.edu/?page=login so that a record of the training exists.
Agenda
Program Overview
Program Controls
Responsibilities
Purchases
Annual Certification
Program Key Points
Slide 2 of 76
Goals
Provide employees with a basic understanding of how to obtain and use the PCard at Georgia Tech
Employees must know and comply with the provisions of the PCard Policies & Procedures Manual as set forth in the GT Business & Finance Manual section 5.2.1.8
Slide 3 of 76
Program Overview
Slide 4 of 76
Program Overview/ Non-Catalog Suppliers
PCard: tool for supply, material, and service purchases under $2,500; no catalog in BuzzMart
PCard: tool for single equipment purchases under $2,500 including freight (non-inventory); no catalog in BuzzMart
Use of the PCard for non-catalog suppliers:
Simplifies purchasing & payment process Expedites ordering & delivery of goods and services Provides significant cost savings Provides electronic control & accountability
Slide 5 of 76
Program Overview/ Catalog Suppliers
BuzzMart – Georgia Tech eBusiness tool
“Procure to pay” tool
BuzzMart – primary tool for all purchases from catalog suppliers activated in BuzzMart emarketplace
Ex: Staples, VWR, Grainger… check BuzzMart for updated catalog vendors listed
All catalog suppliers in BuzzMart are contract vendors
PCard is appropriate tool for non-catalog suppliers
Slide 6 of 76
Program Overview
FY2013 Volume = $41.0 million
FY2013 Transactions = 131,174
FY2013 Average Transaction Amount = $311
FY2013 Cardholders = 1,765
Departments = 130+
Coordinators = 160+
Slide 7 of 76
Program Overview
The PCard Program is subject to applicable state laws, rules, and regulations to include the guidelines issued by the Georgia Department of Administrative Services (DOAS) found in the Georgia Procurement Manual and State Purchasing Card Policy. www.doas.ga.gov (click on Statewide Card Programs, then top left, click on Knowledge Management)
Employees assigned PCard responsibilities should familiarize themselves with the provisions of public law governing PCards to include Title 50, Chapter 5, Article 3 of the O.C.G.A. at
Slide 8 of 76
http://www.lexis-nexis.com/hottopics/gacode/default.asp Enter 50-5-83 in the search box and click Search To view the text click on: § 50 - 5 - 83 . Definitions; requirements for state purchasing card program
Program Overview
State of Georgia Procurement Card Program
Bank of America VISA Card
Bank of America online tool called Works PCard Manager (don’t confuse with Techworks)
Slide 9 of 76
Program Controls
Slide 10 of 76
Managing the PCard Program
PCard Program Manager
Department PCard Coordinator
Cardholder Cardholder Cardholder Cards are issued to Georgia Tech in the individual’s name
Each department assigns a Department PCard Coordinator to manage the PCard program at the department level
PCard Program is administered by Business Services
Slide 11 of 76
Program Controls
Maintain integrity of program
Program established with built-in oversight controls
Doctrine of cardholder accountability
No system is 100% risk free
Integrity of employees
Slide 12 of 76
Card Eligibility/Issuance
Permanent, regular-status employees are card eligible No student employees or Tech Temps
Cardholders authorized by department Verify business need
PCard Request Form
New cardholders, including UPS and Fed Ex “Ghost” cardholders, must have criminal and consumer credit checks on file
Slide 13 of 76
How Do I Get A PCard?
1st • Complete Cardholder Training & Certification tutorial • http://www.orgdev.gatech.edu/training/?page=mastcal
2nd
• Complete the PCard Request Form and the Employee Agreement Form for the PCard
• http://www.procurement.gatech.edu/pcard/training-forms#forms
3rd • Submit the forms to your Department PCard Coordinator for
approval
4th • Department PCard Coordinator will forward the forms to the
PCard Administrator
Slide 14 of 76
Employee Agreement Form
Cardholders must sign an Employee Agreement Form prior to being issued a PCard acknowledging:
Receipt of training
Understanding and acceptance of the rules for the use and the protection of the PCard
Understanding and acceptance of responsibilities for the reconciliation process and for billing disputes
Understanding and acceptance of consequences
for PCard violations
Slide 15 of 76
PCard Spending Limits
Slide 16 of 76
Georgia Tech liable for all purchases with PCard
PCard issued in the name of the Cardholder
Additional controls placed on the card. The cardholder is limited by:
$ limit per transaction
$ limit per month
The Institute’s maximum limit on PCard purchases is $2,499.99 per transaction. The standard monthly dollar limit is $25,000.
PCard Spending Limits
Department Head or Department PCard Coordinator can request temporary exceptions by contacting [email protected]
Single transaction dollar limit
Monthly (per cycle) dollar limit
Note: Increased limit cards may not be used to circumvent State’s no-bid limit
PCard denied by vendor if
Purchase exceeds single transaction dollar limit
Purchase exceeds monthly (per cycle) dollar limit
Slide 17 of 76
Vendor Restrictions
PCard declined at point of sale
Vendors restricted – identified by Merchant Category Code; examples include travel, entertainment
Cardholders
No purchases from a vendor with whom you have a financial interest
No acceptance of any gift or gratuity (when offered or appears to be offered) to influence purchase decision
Slide 18 of 76
GT Policies
GT PCard Policy Manual
Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.policylibrary.gatech.edu/procurement-cards-pcard
Department internal procedures
Must be in accordance with GT Policy Can be more restrictive, but not less restrictive
Slide 19 of 76
Compliance and Audit Reviews
PCard transactions reviewed electronically for compliance by:
Business Services
Department of Administrative Services
PCard transactions audited for policy violations, adequacy of accountable documentation, and reconciliation/review process by
Department of Internal Audit
State Department of Audits and Accounts
Policy violations are evaluated on an individual basis and appropriate action taken, which could include termination of employment and criminal prosecution.
Slide 20 of 76
ETHICS HOTLINE
GT employees can confidentially & anonymously report suspected PCard misuse via a “Hotline”
1-866-294-5565 or
https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508 or
www.ethicspoint.com, click “File Report”
Slide 21 of 76
Issuing the PCard
Slide 22 of 76
Issuing the PCard
Slide 23 of 76
PCard Administration in Business Services will notify you by e-mail when your PCard has been
Approved/issued
Ready for pick up
Your Department PCard Coordinator establishes your
Default Project ID
Default Expense Account
Single Transaction Limit
Monthly Purchase Limit
State of Georgia TAX EXEMPT FOR OFFICIAL USE ONLY
Purchasing Card
1234 5678 2345 6789 09/09 09/14
GEORGE P. BURDELL
GEORGIA TECH
Works
Welcome email from “Works” with login instructions when issued a PCard
Bank posts transactions daily to Works/email notifications of activity sent to you daily
Online access to PCard transactions available via Works PCard Manager
Department PCard Coordinator will provide instructions on using the system
Slide 24 of 76
Cost Allocation Defaults
Each card assigned project & account (no “generic” PCard general ledger expense account can be used)
Reallocation
Online via Works – 7 calendar days Campus PCard Redistribution – 90 days after posting to GL Paper Journal Entry after 90 days to Accounting Services or
Grants & Contracts
Slide 25 of 76
Transaction Posted
Cost Allocation
PCard default account: Account typically associated with charges on the PCard
Ex: Default account used 714100 – Supplies & Materials
Redistribute charges to appropriate expense account
Ex: Registration Fees to 727100 or Special Group Meals to 727700
Slide 26 of 76
Review Question 1
This is a Program Control:
A. GT PCards are only issued to permanent, regular-status employees.
B. New PCardholders are required to have criminal and consumer credit checks before issued a PCard.
C. A signed Employee Agreement Form is required before the PCard can be issued.
D. All of the Above
Slide 27 of 76
Review Question 2
Georgia Tech is not liable for all purchases made on the PCard.
A. True B. False
Slide 28 of 76
Review Question 3
The Department PCard Coordinator establishes: A. Your default project ID
B. Your single transaction limit
C. Your monthly purchase limit
D. All of the Above
Slide 29 of 76
CARDHOLDER RESPONSIBILITY
Slide 30 of 76
You Are Responsible
GT PCard Policy Manual
Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.admin-fin.gatech.edu/?page=business
Misuse of the PCard will result in having your PCard privileges revoked, and
could result in termination of employment and criminal penalties.
Slide 31 of 76
PCard Security
Cardholder – Accountable for transactions
Protect PCard and PCard Number
No card sharing - cardholders may not “lend” their card or card number to anyone
Slide 32 of 76
Lost or Stolen Cards
Cardholder immediately report lost, stolen, or fraudulently used PCards to:
Bank of America at 1-888-449-2273
Cardholder - Notify Approver and Department PCard Coordinator
Slide 33 of 76
Returning PCards
If the cardholder is
Transferring to another Department; or
Leaving Georgia Tech
EMPLOYEE MUST
Return PCard to the Department PCard Coordinator
Slide 34 of 76
Documentation Requirements
Accountable document (invoice or receipt) is proof of
purchase for transaction
Document must contain “line item detail”
Line item description (include business purpose) Line item pricing
Used to reconcile monthly bank statement
Purchase must be permissible by funding source used
Slide 35 of 76
Documentation Requirements
Lost or missing receipts:
Cardholder is responsible for obtaining duplicate from vendor
If duplicate cannot be obtained, cardholder must use PCard Receipt Replacement Form
Excessive use of the Receipt Replacement Form (more than 3 in a fiscal year) may result in suspension of card privileges
Slide 36 of 76
Record Keeping Duties
PCard file with accountable documentation (invoices/receipts) and monthly bank statements easily accessible
Bank Statements sent monthly
Billing cycle ends on the 27th each month
Federal, State, and Internal Auditors may request this file for compliance audits at any time
Slide 37 of 76
Reconcile Monthly Statements
Compare bank statements with receipts to verify your purchases
Are the charges accurate?
Have credits been issued/deducted?
Is there any unauthorized activity?
Note: VISA’s vendor contract requires billing upon shipping. If you have ordered but have not received the item, make sure it has actually been shipped. Otherwise the charge should be disputed.
Slide 38 of 76
Reconcile Monthly Statements
Reconciled statements must be
Signed by the cardholder
Counter signed (verified) by the approving official (approver) designated by the Department Head
Cardholder and approver must not be the same person for signature purposes
Completed PCard monthly reconciliation packages consisting of the signed bank statements and accountable documentation (invoices/receipts) must be retained under the control of the department business office
Slide 39 of 76
Department Responsibilities Designate program officials
Department PCard Coordinator
Department Approving Officials (Approvers)
Department PCard Cardholders
Ensure internal procedures are in accordance with Georgia Tech policy Compliance - identify & address policy violations Must maintain written list of approvers that identifies assigned
cardholders Slide 40 of 76
Department Responsibilities Establish coordination procedures between cardholders,
approvers, and coordinators
Ensure timely reconciliation, approval, and compliance reporting of monthly PCard packages (bank statements & accountable documentation)
PCard Compliance dates are published on the website (www.procurement.gatech.edu), click on Purchasing>PCard
Develop procedures to ensure responsible budget holders verify charges to sponsored accounts
Slide 41 of 76
Department Responsibilities
Establish redistribution procedures Bank of America Works Journal Entry
Proxy Reconciler can be assigned in Works to redistribute charges
Annually review the ongoing business need for active cards and re-evaluate card limits periodically
Slide 42 of 76
Department Responsibilities Establish procedures for document retention
Minimum of 7 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
Slide 43 of 76
Coordinators Oversee department program
Primary link to GT PCard Program Administration
Communicate program information to appropriate personnel
Facilitate monthly online compliance report
Slide 44 of 76
Approvers
Responsible for review and approval of cardholder’s PCard purchases
Ensure appropriateness of purchases to the best of their knowledge
Verify completeness of documentation Signed and reconciled bank statements
Detailed back up documentation (receipts)
Provide evidence of the review by signature on the bank statement
Report on monthly compliance to Department PCard Coordinator
Slide 45 of 76
Monthly Compliance Report
Slide 46 of 76
Online report tracks reconciliation and approval status Assists departments by listing
cardholders requiring review Assists departments with
compliance Assists in card suspension for non-
compliance
Monthly Compliance Report Department PCard Coordinators with a PCard may
not “self-certify”on the monthly compliance report
Department must designate another employee to perform the reporting duties for the Department PCard Coordinator’s card
Department must not allow a Department PCard Coordinator to approve or report on the compliance of their own card
Slide 47 of 76
Review Question 4
Reconciled bank statements must be signed by the cardholder and the approving official as designated by the Department Head.
A. True B. False
Slide 48 of 76
Review Question 5
If you are missing a receipt or can’t get a duplicate receipt from the vendor then you should
A. Make a receipt and insert in your reconciliation B. Circle on your bank statement and do nothing C. Complete the PCard Receipt Replacement Form and include in your reconciliation D. All of the Above
Slide 49 of 76
Purchases
Slide 50 of 76
Authorized Uses of PCards
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.).
PCard can be used to make purchases:
Over the Counter
By Mail
By Fax
By Telephone
By Internet
Slide 51 of 76
Authorized Uses of PCard
Cardholders must follow State (DOAS), BOR, and GT purchasing policies and strive to obtain the maximum value for each dollar of expenditure
State (DOAS or Department of Administrative Services), www.doas.ga.gov
BOR (Board of Regents), www.usg.edu/business_procedures_manual
Georgia Tech purchasing policies,
www.procurement.gatech.edu/
Slide 52 of 76
Order of Precedence
1st • State of Georgia-DOAS Mandatory Contracts • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp
2nd • Georgia Tech Agency Contracts • See Contract Section in BuzzMart
3rd • Georgia Correctional Industries or Georgia Enterprise • http://doas.ga.gov/statelocal/SPD/contracts/pages/home.aspx
4th • State of Georgia-DOAS ‘Convenience’ Contract • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp
5th • Open market
The order of precedence is followed as listed above. Exceptions are made for emergency purchases and sole source purchases.
Slide 53 of 76
Order of Precedence
Georgia Tech requires competitive bidding for all open-market purchases anticipated to be $10,000 or more.
However, Georgia Tech sets the single transaction limit for a PCard transaction at $2499.99.
Use of the PCard program as a method of payment does not relieve the cardholder of these responsibilities.
Slide 54 of 76
Purchasing Tips Goods should be shipped only to official Georgia Tech business addresses
No home deliveries are authorized
No supplier contract available
Vary the suppliers
Fair treatment to all suppliers
Obtain a reasonable price
Purchasing on behalf of government clients
Include supplier diversity
Small businesses
Disadvantaged businesses
Women-owned businesses
Obtain fair and reasonable prices
Adhere to strict ethical standards
Slide 55 of 76
Review Question 6
The Order of Precedence rule for purchases using the PCard should be followed except in emergency purchases or sole source purchases.
A. True B. False
Slide 56 of 76
Authorized Purchases on PCard
Books
Conference registration fees
Non-catalog contract items - Examples: temp agencies, cell phone service, copier maintenance (use BuzzMart if catalog is available)
Equipment rental (NO Vehicle Rentals except for student groups, which must be from a mandatory statewide contract unless approved through the waiver from the statewide contract process)
Food/catering compliant with BFM 5.2.1.9 Food/Group Meals Policy (Food/Group Meal Grid www.procurement.gatech.edu >Purchasing>PCard, then related links on right side)
Freight/shipping charges
Non-inventoried equipment: single units under $2,500 including freight
Slide 57 of 76
Authorized Purchases on PCard Office furniture/files
Office supplies: For statewide contract (use catalog in BuzzMart)
Printing
Professional memberships Software – data plans, software, or apps for state issued devices such
as smart phones, tablets, or laptop computers
Study Abroad Program Expenses (BOR BPM section 21.4)
Subscriptions
Telecommunications
Temp employment agencies
Utilities – electricity, gas, water
Slide 58 of 76
Unauthorized Purchases on PCard
PCard should never be used for personal expenditures
Unintentional violation requires reimbursement of funds
Intentional violation subject to:
Loss of employment and/or
Criminal penalties
Slide 59 of 76
Unauthorized Purchases on PCard
The following items may not be purchased with the PCard:
Alcoholic beverages or tobacco products
Cash advances, cash refunds, or “store credit”
Employee travel (lodging, transportation, meals)
Entertainment expenses (must be reimbursed through the Foundation or
GTRC)
Food/catering not in compliance with BFM 5.2.1.9 Food/Group Meals Policy
such as bottled water, beverage/coffee service, snacks, or entertainment.
Slide 60 of 76
Unauthorized Purchases on PCard
The following items may not be purchased with the PCard:
Funding of the BuzzCard
Gift cards, stored value cards, prepaid cards, calling cards, gift certificates
Motor vehicle fuel
Personal purchases (includes data plans, software, or apps for non-
state issued devices such as smart phones, tablets, or laptop
computers)
Purchases from units of the Institute
Sales tax paid to Georgia vendors
Split purchases to circumvent transaction limits (misuse could result
in having your PCard privileges revoked)
Slide 61 of 76
Sales Tax
Slide 62 of 76
Cardholders are responsible for ensuring vendors do not charge Georgia sales tax
“AP – Sales & Use Tax Certificate of Exemption / Georgia Form” is available on www.procurement.gatech.edu under PCard Forms
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 the department must pay the tax
Sales tax may not be disputed through the bank
Split Transactions
Georgia Tech received audit deficiencies for split transactions If the cardholder has multiple orders/purchases on the same day and
the total of these orders/purchases exceed cardholder’s single transaction limit, then it is a split transaction.
Ex. 1 . You place an order with XYZ Company for $2200 on 10/04/13 and you place another order with XYZ Company for $600 on 10/04/13. If your single transaction limit (STL) is $2499.99, then this is considered a split transaction.
Ex. 2: You place an order with XYZ Company for $500 on 10/04/13 and you place another order with XYZ Company for $1500 on 10/04/13. If your STL is $1500, then this is considered a split transaction.
In Ex. 1, the appropriate process would be to put the orders in BuzzMart via a requisition. In Ex. 2, the more appropriate process would be to have your PCard Coordinator send an email request to
[email protected] to increase your STL temporarily (the maximum STL is $4999.99, any amount over this requires special state approval). This process only takes a few minutes for PCard administration to make the change.
Cardholders who have special approval above the State STL of 4999.99 must also be careful and not split transactions to go above their special STL.
Slide 63 of 76
Returning Purchases
Inform the vendor the item needs to be returned
Request a PCard credit be issued
Request a vendor return address
Request a vendor Return Authorization Number
Request a vendor confirmation of the credit
Check for the credit on your next monthly bank statement
Slide 64 of 76
Resolving Disputes With Vendors
Attempt to resolve the problem directly with the vendor, documenting all communications
If you are unable to resolve the issue with the vendor, complete a PCard Dispute Form found at http://procurement.gatech.edu/pcard/training-forms#forms
Fax form to the bank at the number listed on the form
Notify your Department PCard Coordinator of the dispute and attach a copy of the dispute form to your monthly statement
Check the next statement to ensure credit is received *There is a 60 day time limit from the billing close date for disputed items*
Slide 65 of 76
Review Question 7
A split transaction is the process of placing multiple orders/purchases on the same day with the same vendor and exceeding your single transaction limit.
A. True B. False
Slide 66 of 76
Review Question 8
The PCard may be used to pay for a lunch meeting at a restaurant.
A. True B. False
Slide 67 of 76
Review Question 9
How many days from the monthly billing statement do you have to complete a Vendor Dispute Form to Bank of America?
A. 45 days B. 60 days C. 90 days D. None of the Above
Slide 68 of 76
Training/Certification Cardholders and Department PCard Coordinators
must complete the PCard Cardholder and Coordinator Training & Certification online tutorial Prior to card issuance or with initial Department PCard
Coordinator Status Annually in January for re-certification
Departments should ensure that: Approvers complete the PCard Cardholder & CoordinatorTraining &
Certification on-line tutorial Initially
Annually thereafter
Card program personnel are trained on internal procedures
Slide 69 of 76
Training Additional online training
Works PCard Redistribution Campus PCard Redistribution – Journal Entry PCard Monthly Compliance Report
Group training or one-on-one training by Business Services available by request
DOAS State Purchasing Division www.doas.ga.gov (click on Statewide Card Programs, then top left, click on Knowledge Management)
Slide 70 of 76
Certification
I accept, and agree to comply with, the terms and conditions of the EMPLOYEE AGREEMENT FOR THE GEORGIA INSTITUTE OF
TECHNOLOGY PROCUREMENT CARD PROGRAM and the provisions of the PCard Policies and Procedures Manual (PCard policy 5.2.1.8).
Slide 71 of 76
Certified
PCard Program Key Points
PROCUREMENT CARD WEBSITE
www.procurement.gatech.edu
Click on forms > Procurement Card (PCard) List includes PCard Forms, Tax Exemption Forms, and PCard Presentations
Slide 72 of 76
PCard Program Key Points
Annual Review of ongoing business need for cards
Frequently Asked Questions (FAQ’S) on website
PCard Quick Reference Sheet on website
Slide 73 of 76
Slide 74 of 76
QUESTIONS
Contact your Department PCard Coordinator or
Beverly Wright, Procurement Card Program Manager [email protected]
404-894-1009
Visit our Frequently Asked Questions
section of our website!
Review Question 10
The best way to contact PCard Administration is through [email protected].
A. True B. False
Slide 75 of 76
Tutorial Assessment Let’s see what you have learned by completing the
following Assessment
You must score 80% or higher to receive credit for completing this tutorial
You must complete this Assessment once you begin
Click next to begin
Slide 76 of 76