SCHOOL BOARD OF BREVARD COUNTY PURCHASING CARD MANUAL

Transcription

1 SCHOOL BOARD OF BREVARD COUNTY PURCHASING CARD MANUAL

2 TABLE OF CONTENTS PURCHASING CARD PROCEDURE Introduction Page 2 1. Purpose Page 2 2. Scope Page 3 3. Applicability Page 3 4. Background Page 3 5. Card Description Page 4 6. Responsibilities Page 4 7. Benefits Page 5 8. Training Page 5 9. Request for New Purchasing Card Page Purchases General Information Page Purchases Local Page Purchases Phone or Mail Orders Page Monthly Statements Page Disputed Items Page Improper Use of Purchasing Card Page Lost or Stolen Cards Page Job Transfers or Termination of Employment Page Changes in Name, Address, Phone Number Page Ten & Eleven Month Employees Page Annual Inventory of Cards Page Cardholder Maintenance Form Page Purchasing Card Activity Report Page How to Handle Disputed Items Page Questionable Purchase Report Page Quick Reference Page Definitions Page Forms: Additional Card Request Form Purchasing Cardholder Agreement SITE Cardholder Agreement SITE Card Checkout Sheet Card Holder Maintenance Purchasing Card Activity Report Wachovia Customer Statement of Error Form Questionable Purchase Report Disputed Item Report Distributed by Purchasing Page - 1 of 21 4/17/2006

3 SCHOOL BOARD OF BREVARD COUNTY, FLORIDA PURCHASING CARD PROCEDURES INTRODUCTION The Purchasing Card Program is designed to improve efficiency and to assist in the management of low-dollar purchases of $ or less, and brings many benefits to Brevard District School, its employees and suppliers. The Purchasing Department and the Accounting Department will monitor the performance of the program. All questions or concerns should be directed to: Procurement Card Contact: All forms, Profile and Applications etc. Accounting Contact: Visa Billing Purchasing Department Beverly Davis ext. 645 Accounts Payable Sonia Ugran ext PURPOSE To establish those procedures under which the District shall control the use of Purchasing Cards that will be assigned to and utilized by the department s/school s employees to purchase non-stock materials, supplies and approved services, on behalf of the District. These procedures are intended to accomplish the following: 1.1 To ensure that the procurement with Purchasing Cards is accomplished in accordance with the policy and procedures established by the School Board. 1.2 To enhance productivity, significantly reduce paperwork, improve controls, and reduce the overall cost associated with small dollar purchases. 1.3 To ensure appropriate internal controls are established within each school/department procuring with Purchasing Cards so that they, the cards, are used only for authorized purposes. 1.4 To provide for disciplinary action if the procurement cards are misused. 1.5 To ensure that the District bears no legal liability for inappropriate use of Purchasing Cards. 1.6 To provide a convenient method for small dollar purchases, consolidate payments - improve customer service - reduce transaction cost - streamline processes - capture spending information. Distributed by Purchasing Page - 2 of 21 4/17/2006

4 1.7 To provide prompt payment to vendors and to provide hard data on small purchase activity with vendors in order to achieve savings by contracted discounts or fixed pricing based upon the volume of business with the vendor. Finally, it is intended that the procedures established herein are viewed as minimum standards for the schools/departments, who may wish to establish additional controls beyond those herein stated. The success of the District Purchasing Card Program relies on the cooperation and professionalism of all personnel associated with this project. The most important participant is the Cardholder. The Cardholders are the key elements in making this program successful. 2. SCOPE: This procedure will be applicable to those schools/departments that have selected employees to use Purchasing Cards to purchase materials, supplies and, approved services, or for specific expenditures to be incurred under conditions as herein stated. The decision of when a Purchasing Card is issued, and to whom, will be made by the Principal of the School or Department Head and the Purchasing Card Program Administrator. 3. APPLICABILITY: This procedure applies to all schools/departments of the District. 4. BACKGROUND: The District has used various methods to facilitate small dollar purchases of goods and services required in the field. These methods, such as petty cash, internal accounts and district purchase orders, have proven to be costly, time consuming, and occasionally merchants have not accepted them. To promote vendor acceptance and operational efficiency, the District has initiated the Purchasing Card Program. The District recognizes an opportunity to streamline processes, improve management reporting, and reduce the cost of making small dollar purchases. A number of unique controls have been developed for this program that does not exist in a traditional credit card environment. These controls help ensure that the card can be used only for specific purchases and within specific dollar limits. In addition, each Cardholder will be required to validate each purchase, as well as authorization from the Principal/Department Head. Distributed by Purchasing Page - 3 of 21 4/17/2006

5 5. CARD DESCRIPTION: The Purchasing Card shall contain the District s name and logo (School Board of Brevard County), the cardholder s name and/or the School/Department name (for Site Cards), tax exemption number, and an expiration date. It has been uniquely designed to avoid confusion with personal credit cards. 6. RESPONSIBILITIES OF PARTIES INVOLVED 6.1 Purchasing Department: The Purchasing Department shall act as the purchasing card administrator, and will coordinate the issuance, maintenance, and cancellation of the Purchasing Cards with the financial issuer. The Program Administrator will provide mandatory training and Purchasing Card Procedures Manual to all cardholders and Purchasing Card Custodians. 6.2 Principal/Department Head: The Principal/Department Head shall act as a custodian of the cards issued with his/her approval to designated employees and/or to cards issued to their site. Custodial responsibilities include appointing a P-Card Site Coordinator to manage the Purchasing Card Program at the school or department level, accept responsibility that card purchases comply with District Policies when approving the cardholder s statement, collecting cards from terminated or transferred employees, notifying the Purchasing Department of any lost, stolen, or terminated cards or any changes to spending limits, and resolving inappropriate or disputed charges. 6.3 Accounting Department: The Accounting Department will review all charges to ensure that they are appropriate and have the proper approval. Accounting will notify the Principal/Department Head and Purchasing of any inappropriate charges. Accounting will be responsible for making timely payments to Wachovia. 6.4 Cardholders: It is the responsibility of the cardholders and/or principals/department heads (for Site Cards) to properly safeguard their Purchasing Cards. All precautions shall be used to maintain confidentiality of the Cardholder s account number and expiration date of the Purchasing Card. The Purchasing Card is to be used only by the authorized cardholders for school/department purchases only. The cardholder must turn in receipts daily to the Purchasing Card Custodian at their site. 6.5 Purchasing Card Custodians: It is the responsibility of the Purchasing Card Custodian to settle the monthly statements within the required time frame. The school district has 12 days to pay their master bill. Each cardholder s settlement sheets, with all attached receipts and other documentation, must be sent in for payment by the 15 th of each month, to the Accounting Department. Any disputes (such as Florida Sales Tax) that arise are to be indicated on the statement in which they are billed. The Cardholder and the Card Clerk are responsible for the resolution of disputed purchases and/or amounts. When the credits for the disputed purchases and/or Distributed by Purchasing Page - 4 of 21 4/17/2006

6 amounts are received they must be listed on the Purchasing Card Activity Report as a separate line item with the appropriate account coding. The Purchasing Card Custodian must ensure that the Purchasing Card Activity Report is complete and accurate when submitting for monthly payment. 7. BENEFITS: There are many benefits to using the Purchasing Card for small dollar purchases including: 7.1 District benefits Simplifies the purchasing process for the large volume of small dollar purchases. Lowers the overall transaction processing cost per purchase. Accountability. Provides electronic management information. 7.2 Cardholder benefits Convenience of purchasing without petty cash, internal purchase orders (limited purchase orders), or district purchase orders. Expedites the delivery of goods or services to the job site. Expands the list of merchants from whom purchases can be made. 7.3 Merchant benefits Expedites payment to the merchant. Reduces paperwork. Lowers risk of nonpayment. 8. TRAINING: All Cardholders will complete training before they are issued a Purchasing Card. 8.1 Participating in the Purchasing Card Program is a privilege being offered by the District. If Purchasing or Accounting becomes aware of any inappropriate or late approval of transactions, Cardholder privileges may be canceled. 8.2 It is expected that the Purchasing Card Procedures and training program will assist you in making this program a success. Distributed by Purchasing Page - 5 of 21 4/17/2006

7 9. REQUEST FOR NEW PURCHASING CARDS: 9.1 Your Principal/Department Head may request a Purchasing Card for you or for their school/department by submitting a completed Additional Card Request Form to the Purchasing Department. No credit checks are made against individual cardholders. The Additional Card Request Form is used to request additional cards for the School Board of Brevard County s corporate account. For Site Cards Only: If the card is lost or stolen, the district is liable for the monthly limit set on the card, therefore these limits shall be set lower than and individual card The Purchasing Department will coordinate the issuance of your Purchasing Card with Wachovia and notify the Principal/Department Head of the next available Purchasing Card training session As part of the training, you will be given a copy of the SBBC Purchasing Card Procedures Manual. This booklet explains the entire purchasing card program and how it works. 9.4 Prior to taking receipt of your district purchasing card, you will be required to sign a SBBC Purchasing Cardholder Agreement Form which will be retained in Purchasing. Principals/Department heads will sign for all Site Cards issued at their request for their school/department. 10. PURCHASES GENERAL INFORMATION: 10.1 You are the only person authorized to use your individual card. No member of your family, your supervisor, or anyone else but you may use your Purchasing Card. Site Cards issued to a school/department may be used by any district employee at that location who is authorized to do so by the Principal/Department Head You are authorized to use the Purchasing Card for district/school purchases only Approved District Leave Forms must accompany ANY charges related to out-ofdistrict travel. This includes charges for airline tickets, registrations, hotels, and rental cars The Purchasing Card cannot be used for the following: Inventoried Items (a single item that costs $ or more fixed assets) Tools (No Second Chance Card will be Cancelled) Furniture Distributed by Purchasing Page - 6 of 21 4/17/2006

8 Technology Equipment Acquisition (This includes computers, printers, cameras, copiers, fax machines, and other business equipment and peripherals. Meals (Reimbursed through Travel Vouchers) Cash Advances Personal Items and/or Gifts Fuel and Oil (covered under fuel purchasing card) Telephone Calls Annual Contracts/Service Agreements Internal Account Purchases Items stocked by the District warehouse (unless cost effective to do so) Any other restrictions placed on card by the Principal/Department Head or by other District Policy Alcohol and tobacco products 10.5 Most cardholders may use the Purchasing Card for authorized purchases costing $ or less. Each single purchase may be comprised of multiple items, but the total cannot exceed the single transaction dollar limit set by the Principal/Department (For Non-Inventory Items Only No Fixed Assets) Purchases are not to be split in order to avoid the single purchase limit You must follow your school/department s administrative funding procedures to ensure that sufficient funds are available prior to making a charge on your purchasing card. Use of the Purchasing Card does not relieve you from complying with Federal, State, Local laws, ordinances, regulations, or School Board policies and procedures District purchasing procedures apply to the Purchasing Card in the same manner as they apply to a district purchase order. If you have any questions, please contact Purchasing Cardholders who fail to turn in monthly, reconciled Purchasing Card Activity Reports, by the 15 th of each month, to Accounts Payable are subject to suspended privileges until the reports are received. The next business day prevails when the 15 th falls on a weekend or holiday. Cardholders with three suspensions in a one-year period are subject to cancellation of the card. In this case, the cardholder may not reapply for a Wachovia Purchasing Card until six months have passed from date of cancellation If your Principal/Department Head questions a purchase made by you, you must substantiate necessity or official use. Misuse of the Purchasing Card shall be subject to the immediate revocation of Purchasing Card privileges. Resolution of situations involving improper use of the Purchasing Card will be handled by the Distributed by Purchasing Page - 7 of 21 4/17/2006

9 appropriate authority in accordance with School District Policies and Procedures, and reported to the Purchasing Department The Purchasing Card Administrator may suspend or cancel a cardholder s purchasing card privileges at any time. Cards may be canceled for the following reasons: Violation or abuse of any School District Policies and Procedures. Cardholder non-responsiveness to requests for additional and/or followup information. Providing illegible copies of the P-Card Purchase documentation. Not following the guidelines under item Questions regarding Purchasing Card procedures should be directed to the Purchasing Department at Ext PURCHASES LOCAL: 11.1 The Purchasing card may be used at any store or business that accepts VISA. Since not all suppliers will accept the card, prior confirmation of their acceptance is recommended The supplier will complete a sales receipt, which should contain the following information: a.) The last four digits of the Purchasing Cardholder card number, expiration date, cardholder name and/or school/department name for Site Cards. b.) Date and total amount of purchase c.) Brief description of the item(s) purchased (itemized) with pricing. d.) Supplier s name and identification As the sales receipt is being completed, the supplier will obtain authorization for the transaction via either a telephone call or direct telecommunication link to the Visa Card authorization network. The supplier will obtain an authorization number as long as the purchase is within the limits established for your card You will be requested to sign the sales receipt. Before signing you should check for the following: a.) b.) c.) Verify that the dollar amount is correct. Verify that sales tax is not charged to your card. (CHECK THIS BEFORE LEAVING THE STORE.) Verify that the sales receipt or cash register tape itemizes each purchase as to the type of item, quantity, and unit cost. Distributed by Purchasing Page - 8 of 21 4/17/2006

10 11.5 You will be given a copy of the sales receipt and the cash register tape. Turn these in to your Purchasing Card Custodian daily Record the Purchasing Card transactions on the Cardholder Activity Report. Your Principal/Department Head will determine who fills out the Activity Report for your site you or your Purchasing Card Custodian If you do not have sufficient documentation for the transaction, an explanation that includes a description of each item, quantity, unit price, date of purchase, supplier s name, and an explanation for the lack of supporting documentation must be submitted and approved by the Principal/Department Head. 12. PURCHASES PHONE OR MAIL ORDERS: 12.1 Telephone and mail orders should be placed for items available for immediate shipment; backorders will not be allowed You must confirm that the supplier agrees to charge the Purchasing Card when shipment is made Confirm with the supplier that shipment will be made within 10 workdays When placing a telephone order, you will be asked to provide your name, card number, expiration date, and shipping address No purchases are to be delivered to your home address Always ask for the name of the person you placed the order with Confirm the total cost, including shipping and handling charges if applicable You should instruct the supplier to include on the shipping document or packing slip that the purchase was made with the Purchasing Card. This information will be helpful to the receiving person and to you when you receive the goods Record the transaction on the Cardholder Activity Report. Indicate in the appropriate column that this was a telephone or mail order by supplying the name of the person you placed the order with. This report must be turned in to the Purchasing Card Custodian on a weekly basis Upon receipt of the packing slip, you should check for the following: a.) Verify that all goods were received. b.) Verify that the dollar amount is correct. c.) Verify that sales tax has not been included in the total charge to card. d.) Verify that the packing slip shows in sufficient detail the types and number of items purchased as well as their unit cost. Distributed by Purchasing Page - 9 of 21 4/17/2006

11 12.11 Turn the packing slips in to the Purchasing Card Custodian immediately upon receipt and verification If you do not have sufficient documentation for the transaction, an explanation that includes a description of each item, quantity, unit price, date of purchase, supplier s name, and an explanation for the lack of supporting documentation must be submitted and approved by the Principal/Department Head. 13. MONTHLY STATEMENTS: 13.1 Your school/department s Purchasing Card Custodian will receive a monthly statement for each cardholder and/or site card issued to that school/department. Card statements will also be available on-line in the near future for early reconciliation The Purchasing Card Custodian should have been receiving sales receipts and packing slips daily from you Upon receipt of Cardholder Activity Report, the Purchasing Card Custodian must match each purchase listed on the VISA statement with a sales receipt or packing slip which shows the details (itemized list w/pricing) of the purchase The Purchasing Card Custodian must report any charges that appear to be inappropriate to the Principal/Department Head with proper documentation To prepare the monthly statement for payment, the Purchasing Card Custodian must do the following: 13.6 Match each charge with a sales receipt or packing slip a.) Code each charge to the appropriate account/center (including any credits) b.) Verify that no Florida State sales tax was charged. (If sales tax has been charged, you must contact vendor to a get credit for the amount of sales tax.) c.) Verify that a separate Customer Statement of Error Form has been completed for each disputed charge. A copy must be submitted in the payment packet each month until resolved. When the credit shows up on your monthly statement, it must be shown as a line item on your Cardholder Activity Report with the proper account code to be credited d.) Report any charges that appear to be inappropriate to the Principal/Department Head e.) Report the resolution of any inappropriate charges to Accounting and Purchasing 13.7 The Purchasing Card Custodian must have the Principal/Department Head or appointed authorized representative sign the monthly activity statement as authorization for payment. By signing the statement, the designated Distributed by Purchasing Page - 10 of 21 4/17/2006

12 School/Department is certifying all charges are appropriate and authorized, and all charges are proved by attached receipts The Purchasing Card Custodian will send the following documentation to Accounting by the 15 th of each month: (The School/Department Head and Purchasing will be notified when individual statements are not received in the allotted time.) Continued failure to meet the f15th of the month deadlines may result in the revocation of Purchasing Cards. a) Monthly statement from Wachovia (Visa) b) Cash receipts or packing slips for all purchases (if receipts are less than ½ page in size, please tape to full-sized sheet of paper, with as many receipts as will fit on a standard size sheet 8 1/2 x 11 inches) c.) Cardholder Activity Report with Approved District Leave Forms (required if charges have been made for any airline tickets, hotel reservations, registrations and/or rental cars) d.) Customer Statement of Error Form (required if you are not paying your charges in full. You must complete a separate form for each disputed charge on your monthly Visa statement.) 14. DISPUTED ITEMS: 14.1 A purchase is considered to be in dispute when one of the following situations occurs: a) If an item that you have purchased with the Purchasing Card is found defective or a service faulty, it is your responsibility to return the item to the supplier for replacement or to receive a credit on the purchase. If the supplier refuses to replace or correct the faulty item, then the purchase of this item is considered to be in dispute. b) If an item on the monthly statement appears to be for the wrong amount, duplicated, or cannot be verified as one of your charges, you are responsible for resolution, with help from your Purchasing Card Custodian. Contact the supplier to verify all information and to confirm that a duplicate shipment did not occur. If resolution cannot be made with the supplier by receiving credit for the erroneous charge, then the purchase of this item is considered to be in dispute. c) If Florida State Sales Tax has been included on any of your charge card receipts the amount of the tax is in dispute. The District cannot pay State of Florida Sales Tax. You must go back to the vendor and request a credit to your card account in the amount of the sales tax that was charged to the card All disputed items must be reported to the Accounting Department by completing the Customer Statement of Error Form, located on the back of the monthly statement, or by completing the Customer Statement of Error Form (forms section of this manual). This form is also part of the forms packet ed to the Distributed by Purchasing Page - 11 of 21 4/17/2006

13 Purchasing Card Custodians. Attach all appropriate documentation, and submit it with your monthly statement to the Accounting Department A copy of the unresolved Customer Statement of Error Forms must be submitted to Accounting along with all other information supporting the dispute each month until resolution of the dispute has been made If the Cardholder and/or the Purchasing Card Custodian cannot resolve a disputed item within thirty (30) days, contact the Purchasing Department Ext. 645 for assistance in resolving the issue Purchasing will contact the vendor and/or Wachovia and notify you of the action taken. It is your responsibility to notify your Purchasing Card Custodian and Accounting of the resolution. 15. IMPROPER USE OF PURCHASING CARD: 15.1 Upon review of the monthly statement, the Purchasing Card Custodian is required to report any charges that appear to be inappropriate to the Principal/Department Head with proper documentation The Principal/Department Head is required to review all monthly purchases to confirm that appropriate vendors were used; that items were for official school district use, and that the purchases were in accordance with district policies and procedures It is the responsibility of the Principal/Department Head to resolve any questionable purchases with you. a) If it cannot be satisfactorily determined that the purchase was approved and necessary for official school district use, you must provide a credit voucher proving the item(s) had been returned for credit, or reimburse the district for the expense. b) Disciplinary action for misuse will also be the responsibility of the Principal/Department Head in accordance with administrative or school board rules. c) The Principal/Department Head has the authority to prohibit an individual s privilege to use a purchasing card if the individual(s) have demonstrated the inability to follow district policies and procedures for card usage (applies to both Individual and Site Cards) 15.4 The Director of Purchasing has the authority to revoke a purchasing card if district guidelines are repeatedly violated. Examples of some violations are: a.) The purchase of inappropriate items b.) Failure to submit proper documentation in a timely manner c.) Delinquent arrival of settlement information causing the District to be late in submitting payment to financial institution by due date Distributed by Purchasing Page - 12 of 21 4/17/2006

14 16. LOST OR STOLEN CARDS: 16.1 Should you lose, misplace or have your Purchasing Card stolen, you must immediately notify Wachovia of the loss by calling In addition to notifying Wachovia, you must notify your Principal/Department Head AND the Purchasing Department of the lost, misplaced or stolen card within one workday after discovery of the loss or theft of the card. Do not assume that a lost card will be found, report it so that it can be cancelled another card will be issued to you or your site The Principal/Department Head is required to submit a completed Cardholder Maintenance Form (form section of this manual) to the Purchasing Department within five workdays. Information must include the date the card was stolen or discovered lost, and the location of where the card was stolen or the loss occurred. A copy of the Cardholder Activity Report showing any purchases made prior to the loss or theft must be attached Should the card be returned or located after it has been cancelled, it must be sent to the Purchasing Department for destruction. 17. JOB TRANSFERS OR TERMINATION OF EMPLOYMENT: 17.1 Since Purchasing Cards are issued to an individual employees at a particular site, if you leave the School/Department for any reason (e.g. transfer, retirement, and termination), your card must be collected and returned to the Purchasing Department. The Purchasing Department will destroy the card and notify Wachovia. The Principal/Department Head at your new location (if you transfer) can request a new card for you The Principal/Department Head is responsible for the collection of the card and the completion and submission of the Cardholder Maintenance Form (form section of this manual) to Purchasing In the event the Principal/Department Head is not able to collect the Purchasing Card when you leave, they will immediately notify the Purchasing Department by telephone and follow-up with a completed Cardholder Maintenance Form to cancel the card Purchasing will notify Wachovia to cancel the Purchasing Card, thereby preventing any purchases after you leave. 18. CHANGES IN NAME, ADDRESS, PHONE NUMBER: 18.1 If your name, address, and/or phone number has changed, it is your responsibility to notify your Principal/Department Head. Distributed by Purchasing Page - 13 of 21 4/17/2006

15 18.2 Your Principal/Department Head must submit a completed Cardholder Maintenance Form (form section of this manual) to the Purchasing Department requesting the change If your old card is to be deleted or canceled, your Principal/Department Head must collect the card and send it to Purchasing for destruction. 19. TEN & ELEVEN MONTH EMPLOYEES: 19.1 In May, the Principal/Department Head will collect your individual purchasing card if you are a ten (10) or eleven (11) month employee and have no need for the card while school is not in session Your Principal/Department Head will provide you a receipt for the card that has been turned in It is the responsibility of the Principal/Department Head to store the card(s) in a secure location If the cardholder does not return to the Principal s/department Head s location, the card is to be returned to the Purchasing Department for cancellation. Otherwise, the card will be reissued upon the return of the employee. 20. ANNUAL INVENTORY OF CARDS: 20.1 Once a year, the Purchasing Department will provide a list to each school principal and/or department head of the Purchasing Cards under their control The Principal/Department Head will conduct a physical inventory and sign the bottom of the card listing sheet acknowledging that all cards issued to their School/Department have been accounted for. This document is to be returned to the Purchasing Department. 21. REQUEST FOR ADDITIONAL CARD REQUEST FORM: 21.1 The Additional Card Request Form (form section of this manual) is used by the Principal/Department Head to request a Purchasing Card for you individually or a site card for their location. This form allows for additional cards to be requested for the School Board of Brevard County s corporate account You must complete the first section of the form by supplying the following information: a.) School/Department name b) Center (organization) Number (Example: 9380 for Purchasing) Distributed by Purchasing Page - 14 of 21 4/17/2006

16 c.) Name of Individual or Site Card Number (Example: ) d.) Business (school/department) phone number and extension # e.) School/Department address where statement should be mailed 21.3 Sign and date the form and give it to your Principal/Department Head Your Principal/Department Head will submit the completed Additional Card Request Form to the Purchasing Department for processing See also Request for New Purchasing Cards. 22. CARDHOLDER MAINTENANCE FORM: 22.1 The Cardholder Maintenance Form (form section of this manual) is used by the Principal/Department Head to request that your card be changed or canceled Should you lose, misplace or have your Purchasing Card stolen, you must immediately notify Wachovia of the loss a) In addition to notifying Wachovia, you must notify your Principal/Department Head AND the Purchasing Department of the lost or stolen card within one workday after discovery of the loss or theft of the card. b) The Principal/Department Head is required to submit a completed Cardholder Maintenance Form to the Purchasing Department within five workdays. Information must include the date the card was stolen or discovered lost, and the location of where the card was stolen or loss occurred. A copy of the Purchasing Card Activity Report showing any purchases made prior to the loss or theft must be attached. c) Should the card be returned, it must be sent to the Purchasing Department for destruction Since Purchasing Cards are issued to individual employees at specific locations, if you leave the school/department for any reason (e.g. transfer, retirement, and termination), your card must be collected and returned to the Purchasing Department. a) The Principal/Department Head is responsible for the collection of the card and the completion and submission of the Cardholder Maintenance Form to Purchasing. b) In the event the Principal/Department Head is not able to collect the Purchasing Card when you leave, they will immediately notify the Purchasing Department by telephone and follow-up with a completed Cardholder Maintenance Form. c) Purchasing will notify Wachovia to cancel the Purchasing Card, thereby preventing any purchases after you leave. Distributed by Purchasing Page - 15 of 21 4/17/2006

17 22.4 Changes to cardholder information: a) It is the responsibility of the school/department to keep cardholder information current. b) The Principal/Department Head may request the following types of changes to your card s information by completing the Cardholder Maintenance Form, and forwarding it to the Purchasing Department: Single transaction limit Monthly credit limit Your name, address, and/or phone number. 23. PURCHASING CARD ACTIVITY REPORT: 23.1 The Purchasing Card Activity Report (form section of this manual) is used to report all purchases made with the Purchasing Card. The Purchasing Card Custodian will turn this report in to Accounting along with the Wachovia monthly statement and other supporting documents The top section of the Purchasing Card Activity Report requests general information: a) The Individual or Site Card name on the Card b) School/Department name c) Center (Organization) number d) Card Account Number (Purchasing Card Account Number) 23.3 The bottom section is used to report each purchase made: a) Date of charge b) Vendor s name c) Product/Service description c) Total dollar amount charged to your card d) Name of person contacted, if item was ordered by phone or fax e) Account/Center coding. Your Purchasing Card Custodian can help you with this 23.4 If you do not have sufficient documentation for the transaction (a receipt), an explanation that includes a description of each item, quantity, unit price, date of purchase, supplier s name, and an explanation for the lack of supporting documentation must be submitted and approved by the Principal/Department Head. Distributed by Purchasing Page - 16 of 21 4/17/2006

18 23.5 The total of all your purchases should equal the total on the Wachovia Statement. If you have disputed items on your statement, make sure they are properly documented on the statement so that they do not get paid. The balance due on the Statement should match the total amount on your Cardholder Activity Report See also Purchasing Card Procedures. 24. HOW TO HANDLE DISPUTED ITEMS: 24.1 To report a disputed item to Wachovia and to Accounting complete the back portion of the monthly statement titled Customer Statement Description of Error Form or complete the form on titled Wachovia Customer Description of Error Form. (One form is required for each disputed amount.) 24.2 Complete the section of the form Customer Statement Description of Error Form by supplying the following information: a) Name b) Account Number c) Transaction Date d) Transaction Description e) Reference Number (Assigned by Visa) f) Amount ($) of Transaction 24.3 The second section of the form asks for the nature of the dispute. Check the appropriate box that indicates what the problem is. If you check Box 11-Other, you are asked to attach a letter of explanation Sign, date and give your work phone number where you can be reached during the day. Forward the statement to your Purchasing Card Custodian The Purchasing Card Custodian will make two copies (of both the front and back) of the statement, and send the original statement in the payment packet to Accounting. Your Purchasing Card Custodian will retain one of the copies; the other will be forwarded to Purchasing if the dispute cannot be resolved between you and the vendor. (Do not copy the receipts - only the statement.) 24.6 If the dispute cannot be resolved by the school/department within 30 days, Purchasing will contact the vendor and/or Wachovia and notify you or your Purchasing Card Custodian of the action taken. Distributed by Purchasing Page - 17 of 21 4/17/2006

19 25. QUESTIONABLE PURCHASE REPORT: 25.1 The Questionable Purchase Report (form section of this manual) is used by the Purchasing Card Custodian to report any questionable purchases to the Principal/Department Head The Purchasing Card Custodian completes the top section of the form by supplying the following information: a) Date the form is being completed b) Name of the Purchasing Card Custodian preparing the form c) School/Department name d) Cardholder s name and/or Site Card Name ( , , etc.) e) Account number f) Date of the questionable purchase g) Vendor s name h) Description of the product/service purchased i) Price of the questionable purchase j) A detailed reason to question the purchase 25.3 The Principal/Department Head is required to review your purchases to confirm that appropriate vendors were used; the items were for official school district use, and the purchases were in accordance with district policies and procedures. It is the responsibility of the Principal/Department Head to resolve any questionable purchases with you The Principal/Department Head completes the bottom section of the form after determining what type of action is required. a) If the Purchase Approved is checked, no further action is required. The form is to be returned to the Purchasing Card Custodian for filing with the monthly statement. b) If the District to be reimbursed by the Cardholder is checked, the Principal/Department Head must obtain a check from you, made payable to The School Board of Brevard County. The Purchasing Card Custodian must send this check along with the monthly statement to Accounting. c) If the District to be reimbursed by is checked, the Principal/Department Head must supply the source of the reimbursement. This could be internal accounts or some other source. The Principal/Department Head must obtain a check, made payable to The School Board of Brevard County. The Purchasing Card Custodian must send this check along with the monthly statement to Accounting. Distributed by Purchasing Page - 18 of 21 4/17/2006

20 25.5 If the Purchase deemed inappropriate is checked, the Principal/Department Head must supply the details of the purchase and the action taken See also Improper Use of Purchasing Card. 26. QUICK REFERENCE: 1. What is a Purchasing Card? A credit card that is used as an alternative payment method for small dollar Expenditures (less than $750.00). 2. What are the advantages for using the Purchasing Card? Improved user satisfaction due to prompt order confirmation and accelerated product receipt. Improved vendor relations by eliminating the potential for late payments, the vendor is paid within 48 hours. 3. Who may have a Purchasing Card, and how do you obtain one? Any District employee, who is responsible for making purchases may, with the Department Head or Principal of the School and the Purchasing Card Program Administrator approval, may be issued a Purchasing Card. 4. What is the responsibility of the Cardholder? Upon acceptance of the Purchasing Card, employee must sign a Cardholder Agreement. Signing this agreement acknowledges employee receipt of the card and acceptance of responsibility for abiding by the terms and conditions of the agreement. Ensure that usage of the card conforms to procedures and that the card is used only for business purposes. Cardholder will retain and verify charge receipts and attach to the monthly statement. Cardholder must obtain management s approval on a statement. 5. What is the Department Head or Principal of the Schools responsibility? Identify and authorize employees who should be issued a Purchasing Card. Establish limitations. Ensure that the Purchasing Cards in their area conform to the District policy and program guidelines. Review and sign detailed statements monthly. Forward statements with receipts to Finance. 6. What is the responsibility of the Purchasing Department/Coordinator? Manage, authorize and terminate, and maintain a file of individuals authorized to conduct Purchasing Card transactions. Distributed by Purchasing Page - 19 of 21 4/17/2006

21 Respond to questions concerning Purchasing Card expenditures. 7. How are purchases made? Cardholder calls or visits vendor and places order. Cardholder provides the vendor with the Purchasing Card number and delivery instructions. 8. Does the Purchasing Card have a spending limit? Individual transaction limited up to and including $ Or as established by Department Head or the School s Principal and the Purchasing Card Program Administrator. 9. What happens if the statement is incorrect or an item needs to be returned? Cardholder notifies Issuer if incorrect charge is identified on the statement. Cardholder works with the vendor to arrange for returns and credit. Cardholder verifies that credit appears on next statement. 10. What types of purchases are allowable? District purchasing policies and procedures shall be followed. The Purchasing Card is to be used for purchases of small dollar expenditures. These items can be purchased and picked up directly at the vendor, or can be ordered by telephone or fax and delivered to the Cardholder. Office Supplies Vehicle Repairs and/or Repair Parts Airline Tickets Car Rentals Lodging Accommodations 11. What purchases are disallowed? The Purchasing Card cannot exceed $ or as determined by the Department Head or Principal of the School and the Purchasing Card Program Administrator. Splitting of requirements - not allowed. Entertainment Meals Personal use Cash advance Alcoholic beverages Tobacco products Non-work or personal use items and services. Services such as consultants or construction. Telephone Credit Card Distributed by Purchasing Page - 20 of 21 4/17/2006

22 DEFINITIONS: Appointed Representative - an individual the Department Head/Principal selects to act on their behalf. Approver - A person delegated the responsibility of reviewing Cardholder transactions to ensure the appropriateness of activity and timely processing of charges. Billing Cycle - The monthly billing period that begins the 4 th day of each month and ends the 3 rd day of each month with a 14-day grace period before payment is due. Cardholder - the District employee to whom a written Delegation of Authority has been given granting the use of the Purchasing Card to make purchase within preset limits on behalf of District. Cardholder Profile - Parameters that are set for a designated Cardholder that identify the Cardholder, set default accounting codes and provide restrictions or spending limitations in the VISA Purchasing Card system. Cash Advance - Prohibited on the Purchasing Card as well as personal purchases. Charge Slip/Documentation - Itemized list of individual purchases on receipt. Contractor/Issuer - Wachovia Credit - Charged amount removed from total owed by District. Cycle Limit - A maximum dollar value of charges and/or number of transactions that may be applied to a Cardholder s purchasing authority for the billing cycle. Daily Limit - A maximum dollar value of charges and/or number of transactions that may be applied to a Cardholder s purchasing authority per day. Delegation of Authority - a document issued by the Department Head or Principal of the school that establishes the individual as an authorized Cardholder. The delegation of authority will specify spending and usage limitations unique to that Cardholder. Delivery Address - Complete address including Cardholder s name and room number (where applicable.) Non-stock material - materials not available in the District s Warehouse. Official Use - Necessary merchandise purchased for District s use. Payer - An individual located in the Finance Department who is responsible for validating the payment of an approved transaction for one or more Cardholders. For example, ensuring that adequate or appropriate accounting codes are assigned or checking the available budget. Normally, this will be the last level of review prior to routing a transaction through for payment but is not part of the approval levels. Purchasing Card - A credit card that is used as an alternative payment method. Purchasing Card Administrator - The individual who is responsible for District s Purchasing Card Program, Purchasing Department Supervisor. Definitions (Continued) Reconciler - The individual who reconciles Cardholder receipts. Reconciliation - Balancing charge slips with bank statement. Services - Non-personal temporary work. Single purchase limit - Each Cardholder will be limited to a maximum $ on any single purchase or as otherwise determined by Approving Supervisor. Small Purchase - an acquisition of supplies, nonpersonal services, and construction in the amount of $ or less. Statement - Monthly record of charges and credits. Supervisor - The individual who supervises a Cardholder and who has been delegated the responsibility for reviewing transaction to ensure the appropriateness of activity and timely processing of charges and/or credits. Tax exemption - all purchases shall be exempt from state and local taxes, in accordance with state law. Dispute - For items purchased and found defective or faulty, the Cardholder can return the item to the merchant who will initiate a credit that will appear on the next month s statement of account. MCC - Merchant Category Code assigned to a merchant by VISA, which identifies the primary goods or services, provided by the merchant. Meals - Prohibited on the Purchasing Card. Monthly Limit - A maximum dollar value of charges and/or number of transactions that may be applied to a Cardholder s purchasing authority during a month. Distributed by Purchasing Page - 21 of 21 4/17/2006

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