Albuquerque Public Schools

Transcription

1 Albuquerque Public Schools PURCHASING CARD PROGRAM POLICIES AND PROCEDURES Revised July 2016

2 Table of Contents CONTACT INFORMATION...3 INTRODUCTION... 4 What is the Purchasing Card?... 4 The Purchasing Card program benefits PARTIES INVOLVED... 4 Card Issuer... 4 Purchasing Card Program Administrator... 4 Chief Business Officer... 4 Cardholder... 5 Supplier... 5 PROGRAM INFORMATION... 5 Cardholder Eligibility... 5 Cardholder Liability... 5 Cardholder Account Closure... 5 Lost, Misplaced or Stolen Purchasing Cards... 5 Recommended Purchases... 6 Prohibited Purchases... 6 Supplier Blocking... 7 Spending Controls... 7 Operational Funds vs. Categorical Funds.7 Categorical Procedures...7 Erroneous Declines... 7 Credits... 8 Unresolved Disputes and Billing Errors... 8 Security and Storage... 8 Reconciliation and Approval... 8 Audit Assistance... 8 CARDHOLDER RESPONSIBILITIES... 9 PURCHASING CARD PROGRAM ADMINISTRATOR RESPONSIBILITIES APPENDIX Purchasing Card Agreement... A Cardholder Dispute Form... B Most Frequent asked Questions C Authorization Form Letter to Vendor......D 2

3 CONTACT INFORMATION Purchasing Card Program Administrator: Name: Elizabeth Maldonado Supervisor Phone #: Georgia Padilla Specialist Phone: Marilyn Coffey Specialist Phone: Address: 6400 Uptown Blvd. N.E. Suite 510E Phone: (505) Fax: (505) Wells Fargo s Card Services Cardholder's Point of Contact 24 hours a day 365 days a year Wells Fargo Bank Card Services

4 INTRODUCTION Welcome to the Albuquerque Public Schools Purchasing Card Program. This program is designed to assist in the management of low-dollar purchases and brings many benefits to Albuquerque Public Schools, its employees and suppliers. What is the Purchasing Card? The Purchasing Card is a credit card issued by Wells Fargo Bank. It is a fast and flexible purchasing tool which provides an extremely efficient and effective method of purchasing and paying for small dollar items with a total value of $ or less. The Purchasing Card works just like a personal credit card and will enable cardholders to purchase non-restricted commodities directly from suppliers. Purchases can be completed with suppliers over the phone or in person. The card acceptance by vendors is restricted by Merchant Category Codes. Albuquerque Public Schools authorizes purchases from those codes you will most likely need in support of your position. It is possible a Merchant Category Code is not authorized for a service you may need. In this case, the card will not be accepted and you will need to contact the Program Administrator at APS at The Purchasing Card will be issued in the employee s name (principal or director) with the Albuquerque Public Schools name clearly indicated on the card. Cardholder Benefits - A cardholder will be able to obtain goods and services for purchases under $ directly from suppliers without the need to use the paper intensive requisition and purchase order process. By streamlining the purchasing process, the Purchasing Card will also help improve turnaround time on the delivery of goods and services. Albuquerque Public Schools Benefits - The Purchasing Card program provides a cost-efficient method for purchasing small dollar goods; built-in card features make the program easy to control and reduces processing costs by minimizing the number of procurement related invoices and checks. This reduced workload provides employees with time they need to focus on negotiating strategic large dollar purchases. Supplier Benefits - The Purchasing Card is welcomed by over 15 million suppliers worldwide. When accepting the card for business purchases, suppliers need not send invoices since they will receive payment directly from Wells Fargo Bank (via the card association) within 48 hours. All the supplier will need to do is send a paid receipt to the Cardholder. PARTIES INVOLVED Card Issuer The card issuer,, issues Purchasing Cards to approved Albuquerque Public Schools employees, provides electronic transaction authorization, and bills Albuquerque Public Schools for all purchases made on Albuquerque Public Schools Purchasing Cards. Purchasing Card Program Administrator The Purchasing Card Program Administrator serves as the main contact for Albuquerque Public Schools. The Program Administrator acts as the intermediary for establishing and maintaining management Wells Fargo Bank reports and for coordinating all cardholder maintenance (adds, changes and closures) with. The Program Administrator also coordinates bill payment and monitors overall performance of the program against qualitative and quantitative goals. Chief Business Officer The Albuquerque Public Schools Chief Business Officer is responsible for approving Purchasing Card applications and submitting approved applications to the Purchasing Card Program Administrator. 4

5 Cardholder An Albuquerque Public Schools employee, (Principal or Director) who is approved by the Chief Business Officer to use the Purchasing Card to execute purchase transactions on behalf of Albuquerque Public Schools. Supplier The vendor supplies items purchased by cardholder. PROGRAM INFORMATION Cardholder Eligibility Criteria necessary to receive a Purchasing Card is as follows: 1. Applicant must be an employee of Albuquerque Public Schools. 2. Each individual cardholder must sign a Purchasing Card Agreement form provided by the Program Administrator. 3. Applications for a Purchasing Card must be approved by the requestor s immediate supervisor, APS Chief Business Officer or their superintendent and forwarded to the Program Administrator. Cardholder Liability The Purchasing Card is a corporate charge card that will not affect the cardholder s personal credit. However, it is the cardholder s responsibility to ensure that the card is used within the stated guidelines in the Albuquerque Public Schools Policies and Procedures Manual. Failure to comply with program guidelines will result in permanent revocation of the card, notification of the situation to management, and further disciplinary measures that may include termination. Cardholder Account Closure The Program Administrator is required to close an account if a cardholder transfers to a different department, moves to a new job not requiring a Purchasing Card, terminates employment, or any of the following reasons: 1. The Purchasing Card is used for personal or unauthorized purposes. 2. The Purchasing Card is used to purchase alcoholic beverages or any substance, material, or service which violates Albuquerque Public Schools policy, law or regulation pertaining to Albuquerque Public Schools. 3. The cardholder allows the card to be used by an unauthorized individual. Authorized use is only for APS purposes and only by APS employees. 4. The cardholder splits a purchase to circumvent the purchase credit limit of the Card. 5. The cardholder uses another cardholder s card. 6. The cardholder fails to provide receipts for all transactions. 7. The cardholder fails to provide, when requested, information about any specific purchase. 8. The cardholder accepts a cash refund in lieu of credit to the Purchasing Card account. 9. The cardholder does not adhere to the Albuquerque Public Schools Policies and Procedures Manual. 10. The cardholder fails to account for charges on the card within fifteen days from the statement date by submitting the purchasing card reconciliation form and all supporting receipts to Accounts Payable. 11. When a card holder s privileges are revoked the cardholder will be required to sign an agreement ensuring the cardholder will use their card responsibly and any further abuse will result in the permanent revocation of purchasing card privileges. Lost, Misplaced or Stolen Purchasing Cards Cardholders are required to immediately report any lost or stolen Purchasing Card to call Wells Fargo Bank tollfree at (24 hours a day, 365 days a year). The cardholder must also immediately notify his/her Superintendent and the Program Administrator about the lost or stolen card at the first opportunity during normal business hours. 5

6 Recommended Purchases Purchases allowable under APS small purchases guidelines (purchases of $ and under). Hotel expenses only incurred while on District approved travel. Airfare while on District approved travel. Meal expenses while conducting District approved business for which a lunch break or meal are not provided. (Not including travel). Acceptable expenses would include a reason to continue work within a group, committee, professional development, training or special meetings, but does not include staff meetings. Purchasing cards cannot be used for meals when traveling because these must be reimbursed at the state mandated rate of $30.00 in-state/$45.00 out of state per day. Purchases from local vendors. Out-of-town vendors can only be used for district approved travel. Airfare and hotels charges under $ with a pre-obtained travel authorization number (TAN #). Charges for Gross receipts/sales tax (except on the purchase of services). Please contact procurement for copies of the APS non-taxable transaction certificate. charges must be supported by itemized receipts. Conference and registration fees under $ (can be out-of town, as part of district approved travel). Gasoline for company cars and rental cars while on district approved travel. Local meals while conducting district approved business when meals are not provided (re-occurring staff meetings are excluded). Computers may be purchased only from the APS contracted vendors-check with purchasing as these may change (Gateway, Dell, and Apple). Prohibited Purchases Purchases over $ which do not adhere to APS small purchases guidelines No Tax; see Procurement for issuance of NTTC Form ( ) Personal Transactions Massage Parlors Liquor Stores Escort Services Alcoholic beverages Open Accounts for hotel room incidentals, e.g. room services, movies, parking, etc. (must use personal credit card and request reimbursement) Gift Cards Candy Snacks Equipment and/or furniture exceeding $1,000 per item (not in combination) Splitting a purchase to circumvent the single purchase limit of the card ($1,000.00) Purchases from out-of-town vendors, with the exception of district approved travel charges under $ Meals while on district approved travel (food during travel is reimbursed through the per diem travel form). Charges for Gross receipts/sales tax (except on the purchase of services). Please contact procurement for copies of the APS non-taxable transaction certificate. Prepaid purchases. Internet purchases. Donations. Equipment and/or furniture exceeding $ per item (not in combination). If there is any question as to whether a transaction is allowed or not, the cardholder should contact the Program Administrator. 6

7 Supplier Blocking Transactions will be blocked at the point of sale for the types of suppliers included on the Blocked Merchant Category Classification Code Listing. Changes to the blocking list can be made as demonstrated by business need. A cardholder should contact the Program Administrator to change the blocking list associated with the cardholder s profile at Wells Fargo Bank. Spending Controls The Purchasing Card is to be used only for the purchase of goods or for approved District travel expenses (excluding meals). Albuquerque Public Schools standard spending parameters for a Purchasing Card are set at $ per transaction with a maximum of $ per month per card. Exceptions to these Albuquerque Public Schools standards must be approved by the Program Administrator. Only the program administrator can change the cardholder s profile at Wells Fargo Bank. Operational funds versus Categorical funds If a school or department has both categorical funds/grants, and operational funds, two different purchasing cards will be required. The categorical purchasing card will be identified by the word Cat which will be located on the card after the school name. The categorical card should only be used for budgeted categorical funds, and the operational card should only be used for budgeted operational funds. The procedures for processing categorical funds are slightly different and are as follows: Categorical Procedures Categorical funds must be encumbered for recording and reporting purposes for the various grant administrators. Therefore, each time a purchase is to be made using categorical funds a Small Purchase Order requisition must be entered in to the Lawson system using the P-card vendor number, listed below DO NOT USE the vendor number of the store you will be purchasing from. The vendor for this requisition should be vendor number APS P-Card Employees or APS P-Card Charter for charter school purchasing cards. The accounting unit must be the same for all lines on the requisition. The account number may be different for each line and Distribution Company must be 210 for State grants or 217 for Federal grants. The SPO requisition(s) must be released by the site administrator as soon as possible following purchase of items charged to Categorical programs. Operational funds do not have to be encumbered; however, budgeted funds must be available prior to spending. At the close of a monthly billing cycle (fourth Friday of each month) will send a statement of all cardholder activity to the cardholder. The cardholder will retain receipts for transactions not on the current month bank statement for use with the following month statement (same for both operational and categorical). The cardholder MUST SIGN THE BANK STATEMENT AND RECONCILIATION FORM and forward it, along with supporting receipts, SIGNED hard copy of the completed p-card reconciliation form (be sure to include in the cost account information, the category and activity number for categorical accounts) and hard copy of the SPO requisition(s) to the APS Accounts Payable department. The SPO requisition will be rejected following compliance review by the Grant Management department. Erroneous Declines If the cardholder feels the Purchasing Card was erroneously declined by a supplier, the Program Administrator should be contacted for assistance. The Program Administrator will contact to determine the reason for the decline and will make appropriate changes to the cardholder s profile. If a decline occurs outside of normal Albuquerque Public Schools business hours, the employee must find an alternate payment method or terminate the purchase and contact the Program Administrator during normal business hours. 7

8 Credits Suppliers should issue all credits for returned merchandise or services to the individual Purchasing Card account for any item they have agreed to accept for return. UNDER NO CIRCUMSTANCES SHOULD A CARDHOLDER ACCEPT CASH IN LIEU OF A CREDIT TO THE PURCHASING CARD ACCOUNT. Unresolved Disputes and Billing Errors The Cardholder is responsible for contacting the supplier to resolve any disputed charges or billing errors within 45 days of receiving a statement. If the matter cannot be resolved with the supplier, the cardholder should: 1. Contact Wells Fargo Bank at directly for assistance. 2. Enter a Dispute Transaction online with Wells Fargo. (see appendix) This must be accomplished within 60 days from the transaction date. 3. Disputed charges must be accounted for on the reconciliation form until the dispute is resolved. If the dispute is resolved in the cardholder s favor, a credit in the amount of the disputed transaction will appear on a subsequent cardholder statement. 4. Contact the Program Administrator for assistance if an acceptable resolution is not obtained. Security and Storage Cardholders should always treat their Purchasing Card with at least the same level of care as their own personal credit cards. Keep the card safely secured and the account number carefully guarded. The only person entitled to use the card is the person whose name appears on the face of the card or designee identified by the cardholder. Designee must sign cards in and out. Any designee must return the card within 24 hours following authorized use. Reconciliation and Approval 1. At the close of the monthly billing cycle, Wells Fargo Bank will the reconciler notification that the statement is available on line. A reminder will be sent 7 days after the first if the reconciler has not already completed their reconciliation. Once approved by the reconciler, the cardholder/approver will receive an and will have 6 days to complete their approval. 2. The statement is reconciled against accumulated receipts/ packing slips or other supporting documentation, using correct cost accounts for each purchase i.e. (general supplies, purchase services, textbook, etc.) Appendix E. Reconciler will print and forward a copy to the appropriate accounts payable tech for review and audit. All documentation must be sent to Accounts Payable within twenty days (this is time allotted for both reconciliation and approval) of the statement date. Cardholder must sign the printed and signed copy of the statement. If not signed it will be returned to cardholder for signature. 3. Program Administrator reviews cardholder transactions included in the management paper and/or electronic reports and ensures that all cardholders have submitted statements and receipts. 4. Internal Audit performs a statistical audit of statements and receipts to monitor compliance with Policy and Procedures. The Program Administrator maintains all statements for periodic audit. 5. Payment is made to Wells Fargo 21 calendar days after the statement billing date. Statement is cut off the last Friday of the month. Audit Assistance The Program Administrator will perform or assist Albuquerque Public Schools internal audit in a periodic audit of Albuquerque Public Schools internal policies and procedures and will select and audit monthly cardholder memo statements and other documentation as required by the Albuquerque Public Schools policies and procedures. 8

9 CARDHOLDER RESPONSIBILITIES The Cardholder must: 1. Ensure budgeted funds are available before using the card and appropriate cost accounts are used for each purchase, i.e., supplies, purchase services, etc. 2. Ensure categorical card is used for all categorical purchases and operational card is used for operational purchases. Categorical card is identified with the word Cat on the card after the school name. 3. Ensure a Small Purchase Order requisition is entered and released for each categorical purchase, using Vendor number Do not enter a requisition for operational accounts. A hard copy of the SPO requisition must be sent to accounts payable with the bank statement and receipts, etc. 4. Ensure the Purchasing Card is used for legitimate business purposes only. 5. Maintain the Purchasing Card in a secure location at all times and have a system for checking the card in and out. 6. Not allow unauthorized individuals to use their Purchasing Card. 7. Adhere to the purchase limits and restrictions of the Purchasing Card and ensure the total transaction amount of any single transaction does not exceed $ Purchase card will be declined if purchase is over $1, Obtain a receipt or packing slip for ALL transactions and tape the receipts to an 8 1/2 X 11 sheet of paper to ensure they are not lost. 9. Reconcile the statement to the receipts and/or packing slips each month, items that are not on that month s statement must be retained for the subsequent months statement including any credits that may not appear on the current statement. 10. Submit reconciled statements with attached receipts and/or packing slips and hard copy of the purchasing card reconciliation form for all charges appearing on the monthly statement to their accounts payable technician. Please attach receipts to the bank statement in the order they appear on the statement. 11. CARDHOLDER must sign the Bank Statement copy. 12. Submit a separate statement for operational and categorical purchases. The statement reconciliation should be completed within twenty days of the statement date. 13. Attempt to resolve billing disputes directly with the supplier. If unable to resolve the dispute, the cardholder should initiate dispute form to Wells Fargo Bank online. 14. Ensure an appropriate credit for the reported disputed item or billing error appears on a subsequent cardholder statement. 15. Do Not accept cash in lieu of a credit to the Purchasing Card account. 16. Immediately report a lost or stolen card to Wells Fargo Bank at (24 hours a day, 365 days a year). 9

10 17. Immediately notify the Program Administrator and manager of a lost or stolen Purchasing Card at the first opportunity during normal business hours. 18. Return the Purchasing Card to the manager upon terminating employment with Albuquerque Public Schools or transferring departments within Albuquerque Public Schools. 19. If a supplier does not accept credit cards, contact Accounts Payable at (Faith), or (Patricia). 20. Report fraudulent charges to Wells Fargo immediately, and then inform the Program Administrator at APS at PROGRAM ADMINISTRATOR RESPONSIBILITIES Albuquerque Public Schools will assign a Purchasing Card Program Administrator to be responsible for the over all Purchasing Card program. Responsibilities include: 1. Act as the liaison with Wells Fargo Bank. 2. Review approved cardholder applications for completeness of required information. 3. Submitting cardholder applications, change requests, and closure requests to. 4. Provide training materials to cardholders before issuing a Purchasing Card. 5. Having the cardholder sign a Purchasing Card Agreement, signifying agreement with the terms of the Purchasing Card program. 6. Having the program administrator sign a Purchasing Card Agreement, signifying the issuance of the Albuquerque Public Schools purchasing card. 7. Retain signed Purchasing Card Agreements in a secure location. 8. Ensuring lost or stolen cards are blocked by Albuquerque Public Schools. 9. Forwarding supplier set-up requests to Wells Fargo Bank. 10. Assisting cardholders with erroneous declines, unresolved supplier disputes, lost/stolen cards and fraudulent charges. 11. Monitoring the Wells Fargo Bank paper and or electronic reports to review the Purchasing Card program. 12. Receiving and reviewing Wells Fargo Bank bills. 13. Analyzing exception reports. 14. Processing electronic billing uploads to Accounts Payable for proper cost account and G/L distribution. 15. Recording, in the Financial System payment to Wells Fargo Bank by the payment due date. 16. Ensure each month that all bank statements, supporting receipts and p-card reconciliation forms are received in accounts payable for all Wells Fargo Bank cardholder s transactions. 17. Follow up to ensure all monthly charges on the individual cardholder statements are properly accounted for. 18. Ensure the Purchasing Card is used for legitimate business purposes only. 19. Inform the Wells Fargo Bank of cardholder blocking code or credit limit profile change. 20. Inform the Wells Fargo Bank when cardholders terminate employment or change APS employment status. 21. Inform the Superintendent, Chief Business Officer and Internal Audit if a cardholder violates the policies and procedures as documented in this manual, which will subject the offending cardholder to disciplinary action. 22. Destroy Purchasing Cards for cardholders who have been transferred, no longer need the card or have been terminated. 10

11 APPENDIX Purchasing Card Agreement (A) Cardholder Dispute Form (B) Frequently asked questions (C) Authorization Form Letter to Vendor (D) Memos (E) Wells Fargo Commercial Card Expense Procedures (F) 11

12 Appendix (A) ORGANIZATION Purchasing Card Agreement AGREEMENT TO ACCEPT Albuquerque Public Schools PURCHASING CARD Albuquerque Public Schools is pleased to issue you the Wells Fargo Bank Purchasing Card account number. It represents Albuquerque Public Schools trust in you and your empowerment as a responsible agent to safeguard Albuquerque Public Schools assets. ************************************************************************************* I,, hereby acknowledge receipt of the Albuquerque Public Schools Purchasing Card Program Policies and Procedures manual. I agree that I have thirty days to read and understand the terms of the Policy and Procedure manual. I agree to not use the card until I read and understand the terms of the policy. If I do not agree with the terms, I agree to return the unused card to the Program Administrator within the thirty day period. As a cardholder, I agree to comply with said document and understand that Albuquerque Public Schools is liable to Wells Fargo Bank for all ORGANIZATION approved purchases. I agree to use the Purchasing Card for ORGANIZATION approved purchases and agree not to charge personal purchases. I understand that Albuquerque Public Schools will audit the use of the card and report any discrepancies. I further understand that improper use of the card will result in a security investigation which may lead to disciplinary action, up to and including prosecution and termination of employment. Should I fail to use the card properly, I authorize Albuquerque Public Schools to deduct such amount from my salary and accrued benefits equal to the total amount of unaccountable expenditures. I also agree to allow Albuquerque Public Schools to collect any amounts owed by me even if I am no longer employed by Albuquerque Public Schools. In the event that the Purchasing Card is not used as herein stated, I hereby authorize Albuquerque Public Schools to release my last known address and any information relating to my use of the card to Wells Fargo Bank. I understand that Albuquerque Public Schools may terminate my right to use the card at any time for any reason. I also agree to return the card to Albuquerque Public Schools immediately upon request or upon termination of employment or change in APS assignment. CARDHOLDER Signature Date: PROGRAM ADMINISTRATOR I acknowledge that the above cardholder has been issued Albuquerque Public Schools Purchasing Card account number. Signature Date: 12

13 Appendix (B) Signed on as : NYGAARD, DEBBIE Emulating : BOOTHE, LOUANNE Dispute Transaction Card Number Transaction Date Posting Date Merchant Name Merchant Type xxxx-xxxx-xxxx /20/ /22/2006 SOUTHWESTAIR Southwest Airlines G/L Code Amount Merchant City and State DALLAS,TX Merchant Reference Number Please take a moment and check the appropriate statement that validates your dispute. IF YOUR CARD HAS BEEN LOST OR STOLEN AND YOU HAVE NOT YET REPORTED IT, PLEASE CONTACT US AT IMMEDIATELY. Reason Select Unauthorized : I certify that the transaction disputed was not made by me or the person authorized by me to use the card, nor were the goods or services represented by this transaction received by myself or a person authorized by me. For options 2 through 9, you must first contact the merchant and attempt to resolve the disputed transaction before filing a dispute with Wells Fargo. If the merchant has already been contacted and the dispute was not resolved, select the appropriate option below and follow any special instructions that are displayed with the option selected. Before clicking the "Submit" button at the bottom of this screen, please provide a detailed description of the dispute in the description boxes, including any steps taken with the merchant to resolve the dispute. Duplicate Processing : I have been charged multiple times for the same transaction. Paid By Other Means : I have already paid for the transactions shown above by: check cash money order other credit card. Incorrect Amount : My sales slip indicates an amount of $ but it appeared on my statement as the amount above. Service Not Rendered : I did not receive the service. I have contacted the merchant and they have not resolved my dispute. Merchandise Not Received : I did not receive the merchandise. I have contacted the merchant and they have not resolved my dispute. I expected to receive the merchandise/services on Partial Amount Dispute : Although I did engage in the above transaction, I am disputing the entire charge, or a portion in the amount of $ I have contacted the merchant and requested a credit to my account for the reason explained below. 13

14 Cancellation : Although I did engage in the above transaction, I cancelled the reservation, service, or merchandise with the merchant on IMPORTANT: If the dispute is a hotel or auto rental charge,provide the Merchant Cancellation number in the description box below. Credit Not Posted : I have in my possession a credit memo that has not posted to my account OR was listed as a purchase on my statement/activity report. Unrecognized : I do not recognize this transaction and would like to request a copy of the charge. If, after review, I determine this is not my charge I may dispute it at a later date. **** You have only 60 days from the posting date of the transaction to dispute a charge. If we have questions regarding this dispute, please provide a phone number where you can be reached * Please briefly describe the reason for the dispute of this transaction. Include a summary of the steps you have taken to resolve the matter directly with the merchant. </TD Submit Submit and Back Back Page viewed as of 01/22/ :17:10 AM To report a card lost or stolen, please contact Wells Fargo immediately at Home About Wells Fargo Security Guarantee Privacy Policies Copyright 2000 Wells Fargo, All Rights Reserved. 14

15 Appendix (C) FREQUENTLY ASKED QUESTIONS REGARDING PURCHASING CARDS What is a purchasing card? A purchasing card is a credit card. To any vendor, it is a Visa card issued by Wells Fargo Bank. What makes it a purchasing card is the control of the types of businesses where the card can be used. Businesses prefer credit cards. A purchasing card eliminates the need for individual requisitions for each SPO purchase. Your purchases will not be restricted by a stores credit limit. Why do I have to have separate cards for Catergorical and Operational? Federal funding agencies and various grants have certain rules and regulations that must be adhered to. These funds are monitored by the APS District s Grant Management department for compliance with each individual grant. Funds must be encumbered for recording and reporting purposes. That is the reason the SPO requisition number is required, this requisition will be rejected after the Grant Management Technician does the compliance. Operational funds, on the other hand do not have to be encumbered so a SPO requisition is NOT REQUIRED. HOWEVER, it is important to ensure the funds are available in the budget before purchases are made. The categorical Bank Statements and supporting documentation are sent to Grant Management by the A/P Technician and processed when compliance is completed. How do you request a purchasing card? The office of the Chief Business Officer (CBO) has request forms as well as Accounts Payable. How many cards may a school request? The number of cards per school depends on the school s needs and ability to control access to the cards. This determination will be made by the Program Administrator. If a school has Categorical (Grants) then the school will be issued a separate card for these programs. Why does an individual s name need to be on a card? Without a name on a card the District would not be protected by the $50.00 fraudulent use limit provided by federal law. The cards will be issued in the name of the Principal or Director only. Based on need, managers may be issued a card with special approval. How are the card transactions accounted for? Each month the card holder will receive a statement from Wells Fargo Bank showing all the transactions on the card for that month. A purchasing card reconciliation form is provided to each cardholder to record the transactions that appear on the bank statement. The purchasing card reconciliation form is used by the Accounts Payable department to charge the transactions against the school or departments budget. Is there a limit to how much can be charged to a card? Yes, each card has a transaction limit of $1, and a monthly purchase limit of $5, Schools and departments will need to institute procedures to control access to the card(s) and authorization of how much can be spent by an employee when the card is issued to them. Can spending limits be increased? In cases where the District will be granted significant savings for fast payment of an order or volume discounts, the purchasing card Program Administrator may approve a temporary increase in the limit. Controls should also be in place to ensure the funds have not been depleted by earlier expenditures. Can a card be used by an individual other than the cardholder s name appearing on the card? Yes, when cards are issued, recommended procedures are provided for these purposes. See form letter under APPENDIX. 15

16 Appendix (D) AUTHORIZATION LETTER TO VENDOR SCHOOLS LETTER HEAD Date: TO WHOM IT MAY CONCERN: Jane Doe is a (teacher/employee) at (Name of School/Dept.) and has permission to use the purchasing card issued to (Principal s or Director s name), the (Principal/Director) of (Name of School). You may ask for photo identification to verify if necessary. Sincerely, Name and Signature of Cardholder 16