Procurement AN OVERVIEW FOR APPROVING OFFICIALS NOVEMBER 2009 - PDF document

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 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 RECONCILE DOCUMENT • Present VISA • Data entry to • Itemized card at point PaymentNet receipts of sale • Locate and • PCard • Provide verify Reconciliation merchant transactions Report or Log with 16-digit on WSU Sheet VISA account budget • Bank number statement statement 11/2/2009 1

Procurement 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. 11/2/2009 2

Procurement 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 Approving Official Approving Official Reconciler Cardholder Cardholder Reconciler Reconciler Cardholder Cardholder Cardholder PCard Application Roles and Responsibilities Form Change Request Form 8 Cardholder Reconciler Approving Official 9 11/2/2009 3

Procurement 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. 11/2/2009 4

Procurement 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 other 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 11/2/2009 5

Procurement 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 11/2/2009 6

Procurement 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 11/2/2009 7

Procurement 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. 24 11/2/2009 8

Procurement 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 • Runs Purchasing Card Reconciliation Report to compare with itemized receipts and bank statement OR Finalizes Monthly PCard Log Sheet . 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. 11/2/2009 9

Procurement CARDHOLDER, CARRIE 9876 28 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. 29 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 .. 11/2/2009 10

Procurement 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 11/2/2009 11