procurement card programs. the procurement card (p-card) what is it? a credit card which empowers...
TRANSCRIPT
Procurement Card Programs
The Procurement Card (P-Card) What is it?
• A Credit Card which empowers individual employees to make purchases for their Campus/Department in an efficient manner.
Simplified buying process Saves times by eliminating Purchase
Orders and Accounts Payable invoices Speeds up payments to your vendors Can be used to generate revenue for
your District
Why have them?
Piggy-Back on a Cooperative Contract• Texas Comptroller of Public Accounts
• Fort Worth ISD or other entities
Publish a RFP Board Approval
How to start a program
Procurement Card Models
Individual Card Holders Temporary Use
1
2
34
5
Individual Card Holder Model
Card Holder Reconciles
Approved Vendor List
Card Check-Out Model
1
Teacher Card Custodian
PrincipalPurchase Card Administrator
Merchant
Creates Purchase Request
If Approved, Card Custodian issues card to Teacher
Purchase Made from Approved VendorGoods Received
Returns Card and Receipt to Card Custodian
Custodian Reconciles Transactions and forwards to Principal for Approval – on a monthly basis
Sends Reconciliation Package to Purchase Card Administrator
2
4
5
6
7
Purchase Approved
3
Walk-In Purchases• Wal-mart, Target, Grocery Stores, etc.
On-Line Purchases Travel Cards
• Eliminates the use of employee personal funds Cash Cards
• Reduces the need for pre-pay checks Accounts Payable Cards
• Reduces the amount of checks processed
How P-Cards are being used
Card Setup Cardholder Request Form
• Appropriate Management signatures Online Card Setup through the Bank’s System Budget Encumbered (Separate Object Codes) Declining Balance Card
• Credit limit of the card = Budget Encumbered
• Bank System should not allow more to be spent Single Transaction/Daily Spend Limits
Training and Documentation
Training is required before card issuance• Cardholder and Approver must attend
• Program specifics discussed in detail
• “How-to” Presentation
• Tax-Exempt Form provided in Training
Purchase Card Manual• Approved Vendor Lists
• Violations Policy
Controls Specific Vendor List
• Ensures Bid Law Compliance
• Merchant Category Code (MCC) Restriction 100% Receipt Retention Required
• Monthly Audits Monthly Reconciliation Required
• Must completed online transaction verification
• Signatures required on printed report
• 10 Business days to complete
Controls Program Manager Internal Audit Support Enforce Violations “School Bus” Yellow Card Single Transaction Limit Daily Spend Limits Declining Balance Required Training
Questions & Answers
Controls within Round Rock ISD Separation of Duties
• Ownership of the overall process split between the Purchasing Office and the Finance Department• Purchasing Office
• New / replacement card requests
• Signature on the Cardholder User’s Guide
• Changes / limit adjustments
• Finance Department• Ownership of the card company contract
• Receipt of new cards ordered by the Purchasing Office
• Reconciliation of Statements
Controls within Round Rock ISD Cardholder Responsibilities and
Requirements• Each card is provided with the individual’s name
imprinted on the card
• Card holder must sign the Cardholder’s User’s Guide at time of receipt
• Must follow all purchasing guidelines
• Provide proper documentation (e.g. receipts) for all purchases
• Provide immediate notice to the Purchasing Office if fraud is found or the card is lost
Controls within Round Rock ISD Classifications
• Allows for much faster / efficient operations for change requests
• Currently 50 classifications based on Administrative (“A”) or Curriculum (“C”)
• Includes:• Monthly credit limit based on position ranging from $250
to $35,000 per month
• A code on if the card can be increased and when if allowed (yes, no, or emergency)
Controls within Round Rock ISD Classifications Examples:
Director (level 1) A061CN•Limit of $1,000 month•No increases allowedTechnician (maintenance)A140CN•Limit of $1,000 month•No increases allowedExec. Assistant (Level 2) A161FY•Limit of $7,500 month•Increases as requestedPrincipal C010DE•Limit of $2,500 month•Emergency increasesAdmin. Associate C040FY•Limit of $7,500 month•Increase during specific periods
Questions & Answers
RRISD Web Site:https://www.roundrockisd.org/Modules/ShowDocument.aspx?documentid=20591