Procurement AN OVERVIEW FOR APPROVING OFFICIALS NOVEMBER 2009 - - PDF document

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Procurement AN OVERVIEW FOR APPROVING OFFICIALS NOVEMBER 2009 - - PDF document

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Procurement AN OVERVIEW FOR APPROVING OFFICIALS NOVEMBER 2009 NOVEMBER 2009 The Purchasing Card is the preferred method of payment for most goods and services costing under $3500. not a debit card. Merchants receive payment at

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Procurement 11/2/2009 1

NOVEMBER 2009 NOVEMBER 2009

AN OVERVIEW FOR APPROVING OFFICIALS

The Purchasing Card is…

  • the preferred method of payment for

most goods and services costing under $3500.

  • not a debit card. Merchants receive payment at

point of sale however funds do not leave account until transaction is expensed through the WSU Accounts Payable system.

  • a Visa card provided by JP Morgan Chase.
  • reconciled with JPMorgan Chase’s Internet

software, PaymentNet.

PCard Process Summary

PURCHASE

  • Present VISA

card at point

  • f sale
  • Provide

merchant with 16-digit VISA account number RECONCILE

  • Data entry to

PaymentNet

  • Locate and

verify transactions

  • n WSU

budget statement DOCUMENT

  • Itemized

receipts

  • PCard

Reconciliation Report or Log Sheet

  • Bank

statement

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Procurement 11/2/2009 2

Purchasing Card Facts

  • Proper card usage is described in WSU Business

Policies and Procedures 70.08.

  • The Cardholder is personally accountable for

purchases made with his/her PCard.

  • Responsibilities of Approving Officials are

listed in this chapter also.

  • The PCard Program is managed by

WSU Purchasing Services and supported by WSU Accounts Payable

Purchasing Card Facts

  • WSU PCards are issued to individuals rather

than departments, for the best fraud protection benefits available.

  • The Cardholder’s social security number is not

included in the Cardholder profile or security information.

  • The PCard application requires no Cardholder

credit check.

  • The PCard has no bearing on the

Cardholder’s credit.

Why Use Pcards?

  • The PCard empowers Cardholder to make

direct purchases and get quicker deliveries

  • VISA is widely accepted by vendors in the

US and abroad. Vendors that do not accept purchase orders will often the PCard.

  • The PCard increases ease of ordering and

reduces cost transactional cost of orders.

  • The PCard transaction is the least costly of

payment methods.

  • Purchasing data is electronic, visible

and searchable.

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Procurement 11/2/2009 3

Roles and Responsibilities

APPROVING OFFICIAL

THE PERSON WHO PROVIDES DIRECTION AND OVERSIGHT FOR USE OF PURCHASING CARDS IN THE DEPARTMENT

Program Participants Hierarchy

Option 1 Option 2

8

Approving Official Reconciler

Cardholder Cardholder Cardholder

Approving Official

Cardholder Reconciler Cardholder Reconciler

PCard Application Roles and Responsibilities Form Change Request Form

9

Cardholder Reconciler Approving Official

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Procurement 11/2/2009 4

Responsibilities

  • Familiarity with WSU business

policies and procedures for the Purchasing Card --- BPPM 70.08

  • Expenditure authority for

departmental budgets.

  • Approve Cardholder applications: hierarchy,

limits, default budget coding etc.

  • Completion of the course “Purchasing Card

Overview for Approving Officials.” is recommended.

Responsibilities

  • Receive email notification as charges

post to the PCard.

  • Review monthly report, itemized

receipts and bank statement

  • Check card usage for prohibited purchases and

unreasonable expenses.

  • Verify budget codings applied are allowable and

valid for each expense.

  • Sign monthly report as expenditure authority and

approver of the purchases.

Cardholder Responsibilities

Card Security

  • Keep the card in locked file or

safe when not in use.

  • Protect the PCard account number from

compromise and unauthorized use. Appropriate Transactions

  • Avoid unreasonable expenses.
  • Avoid prohibited PCard purchases.
  • Avoid purchases that circumvent

limits of the PCard account.

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Procurement 11/2/2009 5

Delegated Purchasing

  • Limited delegated use of the WSU PCard is
  • allowed. Cardholder may authorize another

department employee to make a transaction.

  • A PCard check-out Record is required when
  • ther members of department use the card.
  • Cardholder must provide a letter of delegation

and careful instructions for use of the card.

  • The cardholder is responsible all transactions

made on his/her PCard.

Prohibited Purchases

  • Certain goods and services are

unallowable for purchase with the WSU PCard, due to State regulations, University policies and/or risk factors.

  • Written requests for exceptions can be

considered for unusual circumstances. Address such requests to PCard Program Administrator at purchasing@wsu.edu.

Prohibited Purchases

  • Items for personal use.

Violations are to be reported and cardholder must immediately reimburse WSU by personal check.

  • Food and meals. [Light refreshments are

allowable if paid with appropriate funding source and all the requirements of BPPM 70.31 are met. Pizza is not a light refreshment. ]

  • Catering services, alcoholic beverages
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Procurement 11/2/2009 6

Prohibited Purchases

  • Gasoline and diesel
  • Travel: transportation, lodging and meals
  • Entertainment; which includes event tickets
  • Goods and services provided by University

Publishing, ie business cards, other print jobs, binding and large photocopies orders. Some allowances made for non-Pullman units and cardholders working off-campus. See BPPM 80.05.

Prohibited Purchases

  • Telephone calls, calling cards
  • Gifts, except as allowable under 17A funds.

Documentation must meet all the requirements of BPPM 70.33.

  • Donations

Prohibited Purchases

  • Radioactive materials
  • Controlled substances
  • Weapons and ammunition
  • Equipment purchased with trade-in credit
  • Household moving expenses
  • Cash advances
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Procurement 11/2/2009 7

Prohibited Purchases

  • Purchases from other WSU Departments

(ie Creamery, CDPE, Athletics, Parking Services)

Note: Purchases from other agencies of the State of Washington, including other public institutions of higher education are now allowable.

  • Registered Student Organization purchases with

FS&A funds: Budget 6680

  • Contracts and lease payments
  • Payments to individuals, employees, students

Consequences of Misuse

  • Written warning to Cardholder, possibly with

copies to Reconciler, Approving Official, Department Chair or Director.

  • Card suspension or cancellation
  • Retraining
  • Report of violation to appropriate Vice

President and/or Internal Audit

  • Termination of employment
  • Recovery actions, as permitted by law
  • Criminal prosecution

Reconciler Role

THE PERSON WHO REVIEWS CHARGES, ASSIGNS BUDGET CODING AND MAINTAINS THE REQUIRED DOCUMENTATION A CARDHOLDER MAY PERFORM THE ROLE OF RECONCILER

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Procurement 11/2/2009 8

Reconciler Responsibilities

  • Keeps PCards and account numbers

secure

  • May manage the delegated use of

PCards

  • Knows prohibited uses and limits
  • Receives email notice of posted

transactions

  • Collects transaction documentation

Itemized Documentation

Online order confirmation Sales receipt from POS system Invoice Packing list with prices VISA charge slip with itemization As a last resort, an Affidavit of Lost Receipt documents the transaction. PaymentNet Price Detail can support the Affidavit of Lost Receipt but not substitute for itemized documentation.

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Procurement 11/2/2009 9

Reconciler Responsibilities

  • Performs data entry in PaymentNet:

description and budget coding for each transaction.

  • Marks transactions in PaymentNet

Reviewed when goods are received.

  • Enters transaction notes for charges

which cannot be approved by the 5th day of the following month.

Reconciler Monthly Responsibilities

Note: PCard transactions are to be reconciled to budget statements monthly like other types of departmental expenses. PCard transactions in BALANCES have a reference number matching the PaymentNet Transaction ID. The prefix is U.

  • Runs Purchasing Card

Reconciliation Report to compare with itemized receipts and bank statement OR Finalizes Monthly PCard Log Sheet .

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Procurement 11/2/2009 10

28

CARDHOLDER, CARRIE 9876

29

CARDHOLDER, CARRIE 9876

ONE CARD / ONE MONTH / ONE LOG SHEET “Rolling Log Sheets” containing entries for more than one month not compliant with WSU PCard policy.

PCard Monthly Reports

  • For each month, the Card Reconciler assembles a

PCard transaction documentation file: PCard Reconciliation Report – Or Log Sheet Itemized documentation for each transaction Monthly statement from JPMC.

  • Each PCard account is to have its own file of

documentation, for each month.

  • PCard Log Sheets and documentation must be

retained for six years past the current year, in a central secure location..

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Procurement 11/2/2009 11

Review by Auditors

Practice is tested to requirements of BPPM 70.08 by internal and state auditors. This is not an exhaustive list.

  • Prohibited transactions
  • Check out log
  • Documentation of transactions: statement,

itemized receipt and monthly report.

  • Dated, authorized signatures
  • Separation of duties