Purchasing card Program

Transcription

1 Purchasing card Program Policies and Procedures 2017/2018 Fiscal Year

2 Purchasing Card Policies and Procedures Introduction The purpose of the purchasing card program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar transactions as well as high volume, repetitive purchases. The program was designed as an alternative to the traditional purchasing process (departmental purchase orders) for supplies and materials. The purchasing card can be used with any vendor that accepts Visa as a form of payment. Certain added responsibilities come with the use of the purchasing card, because purchases are made directly by the cardholder and not by the Purchasing Office. It is incumbent on the cardholder to ensure that the District s Purchasing Policies are being followed and that purchases are made within established purchasing procedures. If used to its potential, the purchasing card program will result in a significant reduction in the volume of purchase orders and related documentation including invoices and checks. In addition, corresponding work processes associated with ordering and check writing will be eliminated. The Texas Education Code provides for criminal penalties for persons who intentionally circumvent the purchasing contracts law by making split, separate, sequential or component purchases. The cardholder should contact the Purchasing Office ( ), prior to making any purchase, if there is any question pertaining to purchasing policies and/or procedures or if the cardholder needs purchasing related assistance. Any questions related to these procedures can be directed to the Manor ISD Business Office at General Information These policies and procedures provide the general guidelines for using the purchasing card. Please read it carefully. Your signature on the Cardholder Agreement shows that you understand the intent of the program and agree to follow the established guidelines. The following important points should be reviewed before using the purchasing card: Your purchasing card is issued in your name. All purchases made on the purchasing card must be only yours. You are responsible for the security of the purchasing card and the transactions made with it. If you do not follow these guidelines when using the purchasing card, you will receive disciplinary action, including termination. Manor ISD employees do not pay their own monthly purchasing card bill. The MISD purchasing card program does not affect the cardholder s credit rating in any way. The purchasing card program carries corporate, not individual, liability. The cardholder can use the purchasing card at any vendor or service provider that 2017/2018 Fiscal Year Page 2

3 accepts Visa. It may be used for in store purchases, mail, internet, and telephone or fax orders. Discretion should be used in order to protect the purchasing card and the card number. The purchasing card may only be used to purchase items that are included in a currently approved budget line item. The purchasing card shall not be used by any District employee to pay for airline tickets, auto rentals, or hotel room charges unless written prior approval is obtained from the Business Office. All travel arrangements shall be made in accordance with District travel guidelines through the Purchasing Office ( ). The purchasing card may not be used to pay for individual travel meals. If dining in a group, the purchasing card may be used but each traveler s name must be noted on the transaction. Use must not exceed the credit limit assigned to your card in a given month. The purchasing card is not intended to avoid or bypass appropriate purchasing or payment procedures. Purchasing card balances reset the day after the first business day of each month. Purchases shall be posted in Skyward by the 5 th of every month for reconciliation. If the 5 th lands on a weekend or holiday, purchases will be posted the next business day. Reconciliation of purchases in Skyward must be complete no later than the 15 th of each month. If the 15 th lands on a weekend or holiday, reconciliations will be due the next business day. Original itemized receipts with cover sheet are also due to the Program Administrator no later than the 15 th of each month. Purchasing card transactions will be reviewed and submitted by the Reconciler, approved by the Cardholder, with FINAL approval coming from the Program Administrator. FAILURE TO RECONCILE AND/OR PROVIDE ORIGINAL ITEMIZED RECEIPTS BY THE 15 TH OF EACH MONTH WILL RESULT IN THE SUSPENSION OF THE PCARD. A communication will be sent to the cardholder and reconciler in the event of a suspension. When all reconciliations are complete and/or receipts turned in, another communication will be sent to the cardholder and reconciler notifying all parties of the reinstatement of Pcard availability. Duties and Responsibilities Program Administrator (Chris Sanchez, Accountant ext. 4019) The Program Administrator is designated to answer questions, address issues and oversee the administration of the program. The Program Administrator has a direct 2017/2018 Fiscal Year Page 3

4 relationship with the Bank. All purchasing card requests must go through the Program Administrator. Purchasing Contact (Carol Steamer-Jackson, Purchasing Specialist ext. 4041) The Purchasing Specialist will assist the Program Administrator in answering questions and ensuring compliance with purchasing guidelines. Cardholder (Primarily District Directors and Assistants) The cardholder may utilize the purchasing card for procuring supplies and other authorized expenditures to facilitate the District s business. The Cardholder is responsible for following the guidelines for purchases, selection of Vendors, security of cards, and monthly statement reconciliation. Reconciler (Primarily Administrative Assistants) The Reconciler is responsible for entering the description, budget code and attaching digital copy of the itemized purchase receipt in Skyward. Each P-card transaction can be found under ACCOUNTSPAYABLE>CREDITCARDS>REVIEW/SUBMIT TRANSACTIONS. Reconciliation of purchases along with original itemized receipts of all purchases is due to the Program Administrator no later than the 15th of each month. Purchasing Card Controls & Procedures Credit Limits All purchasing cards have monthly cardholder spending limits. Limits may vary for each cardholder and will be established according to the established guidelines. Department Heads/Directors $5,000 Coordinators/Assistant Directors $2,000 Campus Principals and Campus Departments $500 Administrative Assistants $500 Each cardholder will be given information on the limits of his/her card upon signing up for the program. Any requests for limits greater than these must be submitted with the use of the Pcard Request/Limit Increase Form and is subject to approval by the District CFO and Superintendent. Upon approval, the Program Administrator will then process the credit limit change. Transaction Limits Your purchasing card may have a single transaction limit. This is the amount available on the purchasing card for a single purchase. Cardholders should not attempt to make a purchase greater than his/her approved amount. It is the cardholder s responsibility to ensure that available credit exists on their card before attempting a purchase by calling the 24-hour Customer Service phone number ( ). Cash purchases in lieu of the P-Card may be subject to non- reimbursement. Cardholders and Reconcilers may also check the balance of their cards on the Wells Fargo Commercial Card Expense Reporting website. For login info contact the Pcard Administrator. 2017/2018 Fiscal Year Page 4

5 Restricted Vendors The purchasing card program will be restricted for use with certain types of suppliers and merchants. If you present your purchasing card for payment to restricted vendors, the authorization request will be declined. Requests to change authorized suppliers of merchants shall be forwarded in writing (via is acceptable) to the Program Administrator. Issuance of Purchasing Card Purchasing cards will be centrally distributed through the Business Office. A Purchase Card Request Form can be obtained from the Program Administrator and will require the approval of the District CFO and/or Superintendent. When a new card is issued, the bank will send it to the Program Administrator for distribution to the cardholder. Cards will be released to cardholders after training and receipt of a signed cardholder agreement. Purchasing Card Activation The cardholder must call Wells Fargo Customer Service to activate the purchasing card before using it. The unique ID for activation will be provided by the Program Administrator. During activation the cardholder will be required to set up a PIN number. The PIN number may be required by some vendors to make purchases. Upon receipt of the card, the cardholder should sign the back of the purchasing card and always keep the card in a secure place. Purchasing Card Receipts Each cardholder should obtain an itemized receipt when using the purchasing card. It is every cardholder s responsibility to ensure there is an original itemized receipt for each purchase. If a purchase is made via mail or telephone, ask the vendor to include the receipt with the goods when shipping the product. Itemized receipts must be uploaded to support each charge. The credit card charge slip is not considered adequate documentation. These receipts will be each cardholder s documentation for the purchasing card charges. Upon reconciliation of charges at the end of each cycle, all charges must be approved by the supervisor and receipts must be uploaded for review and audit. All original itemized receipts must be provided to the Program Administrator for filing purposes. If a receipt is lost or stolen, the cardholder should obtain a duplicate copy of the receipt. IF NO SUPPORTING RECEIPT IS PROVIDED, THE CHARGES BECOME THE PERSONAL RESPONSIBILITY OF THE CARDHOLDER AND FUNDS ARE DUE WITHIN 5 DAYS OR THE P-CARD WILL BE SUSPENDED. Sales and Use Tax The District is a tax-exempt entity and does not pay sales tax for school-related purchases. The cardholder should present a sales tax exemption form when making a school-related purchase. If the cardholder fails to present a sales tax exemption form at the time of purchase and taxes are charged, the cardholder shall be personally liable for reimbursement of all taxes within 30 days of the purchase. Returns, Credits, and Disputed Charges Should a problem arise with a purchased item, every attempt should be made to first resolve the issue directly with the vendor. All returns must be reimbursed by credit to the account; cash refunds are prohibited. Credit slips should be submitted in accordance with 2017/2018 Fiscal Year Page 5

6 district guidelines. Security of the Purchasing card The cardholder is responsible for the security of the card. Guard the purchasing card account number carefully. It should not be posted in a work area or left in a conspicuous place. It should be kept in a secure location. Violations & Consequences The only person authorized to use the purchasing card is the cardholder whose name appears on the card. The card is to be used for business purposes only. The card is not intended for personal use. Personal purchases will be considered misappropriation of District funds, a criminal offense, and will be reported to the proper authorities. Inappropriate use of the card or failure to abide by the purchasing card policies and procedures will result in revocation of the card and appropriate disciplinary action, including termination of employment as outlined below. The purchasing card Program Administrator reviews and identifies district cardholders who violate procedures. The following procedures apply to non-compliance Purchasing Card practices: First Violation On the first identified violation of established procedures the cardholder and his/her supervisor will be issued a warning notification via . This communication will specifically outline the noncompliance and provide guidance on how to correct the situation. Second Violation Upon violation for a second time, again the Cardholder and his/her supervisor will be issued a warning notification via . This communication will specifically outline the noncompliance, provide guidance on how to correct the situation, and outline forthcoming actions should another violation of procedure occur. In addition, a followup phone call by the Chief Financial Officer or her designee may be determined to be appropriate as well. Third Violation If a third violation arises, the cardholder s purchasing card will be suspended for a minimum of 30 days. The Cardholder and supervisor will be notified of this action via . (Due to the timing of the suspension during the business cycle, it is possible for the suspension to last longer than 30 days.) At the end of the suspension period, the purchasing card will be reinstated and an will be sent to the cardholder and supervisor. During the inactivation period, if all noncompliance issues have not been resolved, the suspension of the card will continue until a resolution is reached. In addition, a follow-up phone call by the Chief Financial Officer or her designee may be determined to be appropriate as well. 2017/2018 Fiscal Year Page 6

7 Fourth Violation A fourth violation of purchasing card procedures will result in the revocation of the purchasing card for the noncompliant Cardholder. In addition, disciplinary action up to and including termination, may be appropriate as the former Cardholder may not be able to complete their assigned duties. In specific circumstances, there may be a need for the District to apply more stringent actions than those outlined above. Such actions will be applied on a case-by-case basis, as deemed necessary. Employee Termination The purchasing card must be returned to the Program Administrator upon termination from employment with the Manor Independent School District. Lost or Stolen Cards If a purchasing card is lost or stolen, immediately contact the Bank s Customer Service ( ). After contacting the Bank, please notify the Program Administrator. Prompt action can reduce the District's liability for fraudulent activity. Examples of Acceptable Purchases Art Supplies Auto Parts Books Building Supplies Business Meals* Catering Food Supplies Janitorial Supplies Maintenance Repair Services Medical Supplies Memberships Office Supplies Postage Stamps Safety Supplies Tools/Hardware *In compliance with IRS guidelines, meals will be reimbursed only when: An overnight stay is required Business is conducted during the meal The meal is required as part of a group activity covered by District funds A banquet is held in conjunction with a conference or workshop Meals should not exceed $10.00 per person. 2017/2018 Fiscal Year Page 7

8 Examples of Unacceptable Purchases Airline Tickets Alcoholic Beverages Capital Items any single item with a per unit cost over $500 Cash Advances Computer Hardware (including ipads, Tablets, Netbooks) or Software, including licenses Electronic Devices (digital cameras, ipads, Tablets, Netbooks, PDAs, scientific calculators) Gift Cards Hotel Room Charges Personal Purchases Rental Cars Temporary Services Examples are for illustration only. When in doubt, please contact the Program Administrator or Purchasing Specialist for clarification. 2017/2018 Fiscal Year Page 8

9 COMMONLY ASKED QUESTIONS & ANSWERS For what types of purchases should I use the purchasing card? The District governs how you can use the purchasing card. The Program Administrator will determine the types of purchases, as well as the maximum dollar amount for which you will be authorized. In what ways do I benefit from using the purchasing card? When you use the purchasing card, you enjoy reduced paperwork and flexibility. How does the District benefit from the purchasing card program? When employees use the purchasing card, the District enjoys greater productivity as a result of reduced paperwork, and savings from consolidated supplier invoices to one statement. What should I do if my purchasing card is lost or stolen? Call the Bank s Customer Service immediately ( ), to report the purchasing card missing and request a replacement. Also, notify the Program Administrator as soon as possible. What do I do if a purchase is denied? Your purchase may have exceeded a spending or transaction limit, the District may have excluded that type of supplier or merchant, or the supplier or merchant is not equipped to accept Visa as payment. Contact the Program Administrator to determine the reason. What should I do if I want to change the per month or per transaction limits? Contact the Program Administrator. Any requests for limit changes must be submitted with the use of the Pcard Request/Limit Increase Form and is subject to approval by the District CFO and/or Superintendent. Every attempt will be made to maintain standard spending limits across various department, program, and employee types. What should I do if a supplier does not accept the purchasing card? Contact the Program Administrator, who will then contact the Bank. Please provide the supplier's name, address, and phone number. Will use of the purchasing card affect my credit report? No. The Purchasing card is a corporate liability card, and carries no personal liability for cardholders that use the purchasing card according to District policy and procedure. Whom should I contact to resolve an error or dispute concerning my account? You should first contact the vendor. Most exceptions or issues can be resolved between you and the supplier. If you cannot resolve an issue with the supplier, contact the Program Administrator. When I use my purchasing card to make a purchase, how is the transaction authorized? When you use the purchasing card to make a purchase, the supplier verifies the account number with the Bank. Your spending limits are checked automatically against District policy and procedure. 2017/2018 Fiscal Year Page 9

10 AUTHORIZED USER PURCHASING CARD ACKNOWLEDGEMENT OF USE AGREEMENT This agreement is between Manor Independent School District (MISD) and (name of Employee). District Purchasing Card Policy. I have read, understand and agree that I am responsible for the proper use of the purchasing card as outlined in the MISD Purchasing Card Policy entitled, Purchasing Card Program Policies and Procedures, attached hereto. MISD Property. I acknowledge that the purchasing card is the property of the District, and is to be used ONLY by me for official district business, and only as outlined in the Policy attached to this agreement. I will not permit anyone else, other than myself to use my card and agree to maintain possession of it at all times. Conditional Use. In addition to the requirements, limitations, and uses outlined in the attached Policy the following additional conditions have been placed on my use of the purchasing card issued to me: Insert additional cost and/or item restrictions for this card, if any: Your initial credit limit has been set at $. If purchasing activity appears to require an increase, please contact Chris Sanchez in the Business Office at Extension Loss or Theft of Purchasing Card Notification. As an authorized user of the purchasing card, I will notify the contract vendor (Wells Fargo ) immediately and the District Purchasing Card Administrator as soon as possible or immediately the next working day if the card is lost or stolen, or in the hands of an unauthorized person. Pertinent information regarding the lost or stolen card or improper use will be provided. I will make a reasonable effort to recover the card from an unauthorized person. If I fail to notify the District Purchasing Card Administrator and the purchasing card vendor as soon as possible or immediately the next working day upon realizing that the card is missing or has been misused, I may be considered negligent, and my authority to use the card may be suspended or withdrawn. The card may not be reinstated until such time as I can explain to the Purchasing Card Program Administrator how and why I was unable to keep track of the purchasing card. Receipts. I will retain all receipts and reconcile them monthly, within 10 days of Skyward upload of transactions by the Business Office. If a receipt does not match a charge on the statement or if a charge is not supported by a receipt, I will report discrepancies to the Program Administrator and the purchasing card vendor. If no supporting receipt is provided, the charges become my personal responsibility and funds are due within 30 days. I will maintain a log, to track purchases and receipts and assist in reconciliation. Vendor Notification. I will notify the purchasing card vendor by telephone and submit documentation if there are any discrepancies on the statement, and ask for a credit or correction. I will keep a copy of the request and supporting information for my records and to verify that the credit or correction is made. Return of Purchasing Card. Upon termination or other circumstances in which the Program Administrator require the card to be revoked or turned in, I will return the card promptly to the Program Administrator in the manner specified by the Administrator. Misuse of Card. I understand that the Administrator may revoke or suspend my use of purchasing card privileges without notice if the terms and conditions of the Purchasing Card Program Policies and Procedures are violated. I understand that misuse of the purchasing card, including use by any other individual or for my personal use, is cause for permanent revocation of the purchasing card. Authorized User s Printed Name & Signature Date District Primary Purchasing Card Administrator Date 2017/2018 Fiscal Year Page