P-Card Policy Changes

Transcription

1 P-Card Policy Changes ABAC Procurement PCard Management April 2017

2 BIG Changes to the State P-Card Policy In October 2016, the Department of Administrative Services (DOAS) and the Office of Planning & Budget (OPB) announced that they would implement the following changes to the Statewide Purchasing Card effective April 1, 2017: Reduce the number of cardholders. Establish a $1,000 maximum Single Transaction Limit (STL) for unplanned, nonroutine, urgent point of sale P-Card transactions. Establish a pre-approval/requisition process for all planned P-Card transactions. Establish a P-Card Plan at each state entity, to be approved by DOAS & OPB. New roles for Agency/University Heads and CFOs. Establish Annual Self-Audits and Plan Reviews.

3 Cardholder Justification 1. Justification of need for each cardholder or job class. 2. Justification of need for point of sale purchases based on job requirements. Adding language to Job Descriptions: Required Qualification Must meet criteria to hold a purchasing card (credit check, criminal background check, etc.) Financial Authority Make purchasing card transactions in accordance with state law and policy

4 Reduced Number of Cardholders 3. A scenario of card distribution that meets the statutory requirement. Currently, we have 19 active Cardholders on campus. Coverage: For some Areas that do not have a P-Card (Office of the President, Academic Affairs, Academic Support, Dean of Students, Enrollment Management, Forestry, and Ag) there is a Cardholder that can make purchases for these areas. In case of an urgent purchase and the Cardholder for the above for your area is not available contact the P-Card Administrator for help

5 3 Month limit for P-Card Activity 4. Establish time limits for determining when to cut off or cancel dormant cards based on job requirements. Cardholder must use P-Card at least once in a 3 month period, otherwise the need to have a P-Card will be evaluated. Given the limited number Cardholder spots available, distribution must be prioritized to those with the greatest demonstrated need.

6 Spending Limits 5. Establish spending limits (with appropriate waiver requests) based on job requirements and business model. The standard Single Transaction Limit (STL) is set at $2, The standard monthly Cycle Limit (CL) is set at $5,000 or depending on your department could be higher. Temporary increases to the monthly (CL) can be granted with Supervisor s written approval. This form will be located on the Procurement website. The temporary increases revert back to original limit within 5 business days. Increases of the Cycle Limit (CL) above $25,000 require prior approval from DOAS and OPB.

7 Internal Controls Overview 6. An overview of Internal Controls surrounding card use. ABAC s P-Card policy will be posted on the Procurement website. Includes the P-Card Application process, Allowed/Prohibited Purchases, Cardholder and Approver responsibilities. All Unplanned, Non-Routine purchases will be communicated to each individual area. P-Card Plan documents some key Internal Control items. Such as a Purchase Request must be filled out Prior to making a purchase for $0.00 to $4,

8 Approval Chain & Requisition Tool 7. Establish approval chain for each cardholder. Planned Purchases: Must go through Pre-Approval Process and be approved by at least 2 Approvers (the one making the request and the Supervisor/Department Head) before a purchase is made. The Requisition Tool is available on the Procurement Website: located under forms- Purchase Order Request and Payment Form. Check Pcard box. IT also pre-approves for IT-related purchases. Purchase Request must be turned in with date of or prior date of purchase with 2 Approvers.

9 Approval Chain & Requisition Tool For P Card holders that are approved to make unplanned purchases: Unplanned Purchases: For urgent, unplanned, non-routine purchases under $1,000, there is no pre-approval required. In case of a declared emergency, form SPD-PC003, Special Approval Request, must be submitted to the P-Card Administrator providing an explanation and Justification within 72 hours of the Unplanned Purchase. Post transaction approvals remain as before.

10 Definition of Unplanned, non-routine, or urgent Cardholders must have preapproval for all purchases that do not meet the following criteria: Purchases <$1,000 that are unplanned, non-routine, or urgent: Unplanned is defined as not anticipated or known in advance. Non routine is defined as commonplace tasks, chores, or duties done irregularly or at sporadic intervals. Not monthly or standard recurring. Urgent is defined as compelling or requiring immediate action or attention; imperative; pressing

11 P-Card Plan Amendments Changing the P-Card Plan required DOAS & OPB approval before taking effect. This includes: Adding a Cardholder; Changing the job class of a cardholder, Reports to, Reconciler, or Approver; Permanently changing spending limits; Adding or changing any standing special approvals; and Changing any procedures provided in the P-Card Plan. EXCEPTION: We can change out a Cardholder so long as the job class and all other information remains the same. There is a 45 day freeze on all revisions to P-Card Plans

12 Grant funded purchases not allowed The new policy requires rebate sharing with ABAC for the use of the P-Card. This conflicts with grant compliance regulations for Grant purchases. Grants are issued with the stipulation that the ABAC s procurement processes be used to meet internal control and federal expenditures guidelines. The P-Card used for Grants will only be allowed to make the online exam testing as a planned, routine under $1,000 (non-requisition process). Airline tickets may not be purchased with the P-Card charged to a Grant

13 Works Program/ Paper work Due by 6th Comments must be entered in the comments panel before signing off. Enter SWC# and a description of what was charged. Unplanned, Non-Routine purchases for certain areas designated over $1,000 will need to have this description in the comments panel. The Prior Approval to travel when ordering Airline tickets must be filled out and approved with 2 signatures. Enter under Other on the form and estimate high incase the tickets come in higher than originally planned then form will be voided. This form must be attached to the invoice for the airline tickets and submitted with paperwork.

14 Works Program/ Paper work Due by 6th All paperwork (log, statement, receipts, invoices, Purchase Request, and prior approval to travel form when using the P-Card for airline tickets) must be attached Paperwork is due on the 6th of each month. This does not mean after the 6th. Consistent late paperwork could result in cancellation of the P-Card. E-Verify form for purchases such as Services $2,500 and over.

15 Alternative Payment Options Purchase Order Petty Cash Payment Vouchers

16 Cardholder & Approver Training Log on to DOAS s Learning Management System (LMS)and take: Introduction to Purchasing Card Principles (6600W) Introduction to Purchasing Card Principles Test (6600T) Once you have successfully completed the online course and the exam, submit your certificates to the P-Card Administrator Must be completed by April 14 th or your card will be put on hold.

17 Main Number: Contact Us Contact: Teri Mathis-PCard Administrator Robbie Hawsey (APO) Deidra Jackson- Comptroller Kristen Beasley- Accountant Paul Willis- CFO (Chief Financial Officer)

18 Questions