Procurement Card (PCard) Cardholder and Coordinator Training & Certification

Transcription

1 Procurement Card (PCard) Cardholder and Coordinator Training & Certification January 2014 Please note: This version is for review purposes only. Training as a new cardholder or annual re-certification must be completed via the OOD Trainsweb site at: so that a record of the training exists. Using the PCard at Georgia Tech PCARD ADMINISTRATION pcard.ask@business.gatech.edu Slide 1 of 76

2 Agenda Program Overview Program Controls Responsibilities Purchases Annual Certification Program Key Points Slide 2 of 76

3 Goals Provide employees with a basic understanding of how to obtain and use the PCard at Georgia Tech Employees must know and comply with the provisions of the PCard Policies & Procedures Manual as set forth in the GT Business & Finance Manual section Slide 3 of 76

4 Program Overview Slide 4 of 76

5 Program Overview/ Non-Catalog Suppliers PCard: tool for supply, material, and service purchases under $2,500; no catalog in BuzzMart PCard: tool for single equipment purchases under $2,500 including freight (non-inventory); no catalog in BuzzMart Use of the PCard for non-catalog suppliers: Simplifies purchasing & payment process Expedites ordering & delivery of goods and services Provides significant cost savings Provides electronic control & accountability Slide 5 of 76

6 Program Overview/ Catalog Suppliers BuzzMart Georgia Tech ebusiness tool Procure to pay tool BuzzMart primary tool for all purchases from catalog suppliers activated in BuzzMart emarketplace Ex: Staples, VWR, Grainger check BuzzMart for updated catalog vendors listed All catalog suppliers in BuzzMart are contract vendors PCard is appropriate tool for non-catalog suppliers Slide 6 of 76

7 Program Overview FY2013 Volume = $41.0 million FY2013 Transactions = 131,174 FY2013 Average Transaction Amount = $311 FY2013 Cardholders = 1,765 Departments = 130+ Coordinators = 160+ Slide 7 of 76

8 Program Overview The PCard Program is subject to applicable state laws, rules, and regulations to include the guidelines issued by the Georgia Department of Administrative Services (DOAS) found in the Georgia Procurement Manual and State Purchasing Card Policy. (click on Statewide Card Programs, then top left, click on Knowledge Management) Employees assigned PCard responsibilities should familiarize themselves with the provisions of public law governing PCards to include Title 50, Chapter 5, Article 3 of the O.C.G.A. at Enter in the search box and click Search To view the text click on: Definitions; requirements for state purchasing card program Slide 8 of 76

9 Program Overview State of Georgia Procurement Card Program Bank of America VISA Card Bank of America online tool called Works PCard Manager (don t confuse with Techworks) Slide 9 of 76

10 Program Controls Slide 10 of 76

11 Managing the PCard Program PCard Program Manager PCard Program is administered by Business Services Department PCard Coordinator Each department assigns a Department PCard Coordinator to manage the PCard program at the department level Cardholder Cardholder Cardholder Cards are issued to Georgia Tech in the individual s name Slide 11 of 76

12 Program Controls Maintain integrity of program Program established with built-in oversight controls Doctrine of cardholder accountability No system is 100% risk free Integrity of employees Slide 12 of 76

13 Card Eligibility/Issuance Permanent, regular-status employees are card eligible No student employees or Tech Temps Cardholders authorized by department Verify business need PCard Request Form New cardholders, including UPS and Fed Ex Ghost cardholders, must have criminal and consumer credit checks on file Slide 13 of 76

14 How Do I Get A PCard? 1st 2nd 3rd 4th Complete Cardholder Training & Certification tutorial Complete the PCard Request Form and the Employee Agreement Form for the PCard Submit the forms to your Department PCard Coordinator for approval Department PCard Coordinator will forward the forms to the PCard Administrator Slide 14 of 76

15 Employee Agreement Form Cardholders must sign an Employee Agreement Form prior to being issued a PCard acknowledging: Receipt of training Understanding and acceptance of the rules for the use and the protection of the PCard Understanding and acceptance of responsibilities for the reconciliation process and for billing disputes Understanding and acceptance of consequences for PCard violations Slide 15 of 76

16 PCard Spending Limits Georgia Tech liable for all purchases with PCard PCard issued in the name of the Cardholder Additional controls placed on the card. The cardholder is limited by: $ limit per transaction $ limit per month The Institute s maximum limit on PCard purchases is $2, per transaction. The standard monthly dollar limit is $25,000. Slide 16 of 76

17 PCard Spending Limits Department Head or Department PCard Coordinator can request temporary exceptions by contacting Single transaction dollar limit Monthly (per cycle) dollar limit Note: Increased limit cards may not be used to circumvent State s no-bid limit PCard denied by vendor if Purchase exceeds single transaction dollar limit Purchase exceeds monthly (per cycle) dollar limit Slide 17 of 76

18 Vendor Restrictions PCard declined at point of sale Vendors restricted identified by Merchant Category Code; examples include travel, entertainment Cardholders No purchases from a vendor with whom you have a financial interest No acceptance of any gift or gratuity (when offered or appears to be offered) to influence purchase decision Slide 18 of 76

19 GT Policies GT PCard Policy Manual Business & Finance Manual (BFM) Chapter 5 Topic Department internal procedures Must be in accordance with GT Policy Can be more restrictive, but not less restrictive Slide 19 of 76

20 Compliance and Audit Reviews PCard transactions reviewed electronically for compliance by: Business Services Department of Administrative Services PCard transactions audited for policy violations, adequacy of accountable documentation, and reconciliation/review process by Department of Internal Audit State Department of Audits and Accounts Policy violations are evaluated on an individual basis and appropriate action taken, which could include termination of employment and criminal prosecution. Slide 20 of 76

21 ETHICS HOTLINE GT employees can confidentially & anonymously report suspected PCard misuse via a Hotline or om.asp?clientid=7508 or click File Report Slide 21 of 76

22 Issuing the PCard Slide 22 of 76

23 Issuing the PCard PCard Administration in Business Services will notify you by when your PCard has been Approved/issued Ready for pick up State of Georgia TAX EXEMPT FOR OFFICIAL USE ONLY Purchasing Card /09 09/14 GEORGE P. BURDELL GEORGIA TECH Your Department PCard Coordinator establishes your Default Project ID Default Expense Account Single Transaction Limit Monthly Purchase Limit Slide 23 of 76

24 Works Welcome from Works with login instructions when issued a PCard Bank posts transactions daily to Works/ notifications of activity sent to you daily Online access to PCard transactions available via Works PCard Manager Department PCard Coordinator will provide instructions on using the system Slide 24 of 76

25 Defaults Cost Allocation Each card assigned project & account (no generic PCard general ledger expense account can be used) Reallocation Online via Works 7 calendar days Campus PCard Redistribution 90 days after posting to GL Paper Journal Entry after 90 days to Accounting Services or Grants & Contracts Transaction Posted Slide 25 of 76

26 Cost Allocation PCard default account: Account typically associated with charges on the PCard Ex: Default account used Supplies & Materials Redistribute charges to appropriate expense account Ex: Registration Fees to or Special Group Meals to Slide 26 of 76

27 Review Question 1 This is a Program Control: A. GT PCards are only issued to permanent, regular-status employees. B. New PCardholders are required to have criminal and consumer credit checks before issued a PCard. C. A signed Employee Agreement Form is required before the PCard can be issued. D. All of the Above Slide 27 of 76

28 Review Question 2 Georgia Tech is not liable for all purchases made on the PCard. A. True B. False Slide 28 of 76

29 Review Question 3 The Department PCard Coordinator establishes: A. Your default project ID B. Your single transaction limit C. Your monthly purchase limit D. All of the Above Slide 29 of 76

30 CARDHOLDER RESPONSIBILITY Slide 30 of 76

31 You Are Responsible GT PCard Policy Manual Business & Finance Manual (BFM) Chapter 5 Topic Misuse of the PCard will result in having your PCard privileges revoked, and could result in termination of employment and criminal penalties. Slide 31 of 76

32 PCard Security Cardholder Accountable for transactions Protect PCard and PCard Number No card sharing - cardholders may not lend their card or card number to anyone Slide 32 of 76

33 Lost or Stolen Cards Cardholder immediately report lost, stolen, or fraudulently used PCards to: Bank of America at Cardholder - Notify Approver and Department PCard Coordinator Slide 33 of 76

34 Returning PCards If the cardholder is Transferring to another Department; or Leaving Georgia Tech EMPLOYEE MUST Return PCard to the Department PCard Coordinator Slide 34 of 76

35 Documentation Requirements Accountable document (invoice or receipt) is proof of purchase for transaction Document must contain line item detail Line item description (include business purpose) Line item pricing Used to reconcile monthly bank statement Purchase must be permissible by funding source used Slide 35 of 76

36 Documentation Requirements Lost or missing receipts: Cardholder is responsible for obtaining duplicate from vendor If duplicate cannot be obtained, cardholder must use PCard Receipt Replacement Form Excessive use of the Receipt Replacement Form (more than 3 in a fiscal year) may result in suspension of card privileges Slide 36 of 76

37 Record Keeping Duties PCard file with accountable documentation (invoices/receipts) and monthly bank statements easily accessible Bank Statements sent monthly Billing cycle ends on the 27 th each month Federal, State, and Internal Auditors may request this file for compliance audits at any time Slide 37 of 76

38 Reconcile Monthly Statements Compare bank statements with receipts to verify your purchases Are the charges accurate? Have credits been issued/deducted? Is there any unauthorized activity? Note: VISA s vendor contract requires billing upon shipping. If you have ordered but have not received the item, make sure it has actually been shipped. Otherwise the charge should be disputed. Slide 38 of 76

39 Reconcile Monthly Statements Reconciled statements must be Signed by the cardholder Counter signed (verified) by the approving official (approver) designated by the Department Head Cardholder and approver must not be the same person for signature purposes Completed PCard monthly reconciliation packages consisting of the signed bank statements and accountable documentation (invoices/receipts) must be retained under the control of the department business office Slide 39 of 76

40 Department Responsibilities Designate program officials Department PCard Coordinator Department Approving Officials (Approvers) Department PCard Cardholders Ensure internal procedures are in accordance with Georgia Tech policy Compliance - identify & address policy violations Must maintain written list of approvers that identifies assigned cardholders Slide 40 of 76

41 Department Responsibilities Establish coordination procedures between cardholders, approvers, and coordinators Ensure timely reconciliation, approval, and compliance reporting of monthly PCard packages (bank statements & accountable documentation) PCard Compliance dates are published on the website ( click on Purchasing>PCard Develop procedures to ensure responsible budget holders verify charges to sponsored accounts Slide 41 of 76

42 Department Responsibilities Establish redistribution procedures Bank of America Works Journal Entry Proxy Reconciler can be assigned in Works to redistribute charges Annually review the ongoing business need for active cards and re-evaluate card limits periodically Slide 42 of 76

43 Department Responsibilities Establish procedures for document retention Minimum of 7 years depending on fund requirements (sponsored awards 3 yrs from date of final expenditure report submission) Must be retained under control of the department business office not the cardholder Readily available for review/audit if requested Slide 43 of 76

44 Coordinators Oversee department program Primary link to GT PCard Program Administration Communicate program information to appropriate personnel Facilitate monthly online compliance report Slide 44 of 76

45 Approvers Responsible for review and approval of cardholder s PCard purchases Ensure appropriateness of purchases to the best of their knowledge Verify completeness of documentation Signed and reconciled bank statements Detailed back up documentation (receipts) Provide evidence of the review by signature on the bank statement Report on monthly compliance to Department PCard Coordinator Slide 45 of 76

46 Monthly Compliance Report Online report tracks reconciliation and approval status Assists departments by listing cardholders requiring review Assists departments with compliance Assists in card suspension for noncompliance Slide 46 of 76

47 Monthly Compliance Report Department PCard Coordinators with a PCard may not self-certify on the monthly compliance report Department must designate another employee to perform the reporting duties for the Department PCard Coordinator s card Department must not allow a Department PCard Coordinator to approve or report on the compliance of their own card Slide 47 of 76

48 Review Question 4 Reconciled bank statements must be signed by the cardholder and the approving official as designated by the Department Head. A. True B. False Slide 48 of 76

49 Review Question 5 If you are missing a receipt or can t get a duplicate receipt from the vendor then you should A. Make a receipt and insert in your reconciliation B. Circle on your bank statement and do nothing C. Complete the PCard Receipt Replacement Form and include in your reconciliation D. All of the Above Slide 49 of 76

50 Purchases Slide 50 of 76

51 Authorized Uses of PCards Cardholders and approving officials are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A et.seq. (State Employee Code of Ethics, Conflicts of Interest, etc.). PCard can be used to make purchases: Over the Counter By Mail By Fax By Telephone By Internet Slide 51 of 76

52 Authorized Uses of PCard Cardholders must follow State (DOAS), BOR, and GT purchasing policies and strive to obtain the maximum value for each dollar of expenditure State (DOAS or Department of Administrative Services), BOR (Board of Regents), Georgia Tech purchasing policies, Slide 52 of 76

53 Order of Precedence 1st 2nd 3rd 4th 5th State of Georgia-DOAS Mandatory Contracts Georgia Tech Agency Contracts See Contract Section in BuzzMart Georgia Correctional Industries or Georgia Enterprise State of Georgia-DOAS Convenience Contract Open market The order of precedence is followed as listed above. Exceptions are made for emergency purchases and sole source purchases. Slide 53 of 76

54 Order of Precedence Georgia Tech requires competitive bidding for all open-market purchases anticipated to be $10,000 or more. However, Georgia Tech sets the single transaction limit for a PCard transaction at $ Use of the PCard program as a method of payment does not relieve the cardholder of these responsibilities. Slide 54 of 76

55 Purchasing Tips Goods should be shipped only to official Georgia Tech business addresses No home deliveries are authorized No supplier contract available Vary the suppliers Fair treatment to all suppliers Obtain a reasonable price Purchasing on behalf of government clients Include supplier diversity Small businesses Disadvantaged businesses Women-owned businesses Obtain fair and reasonable prices Adhere to strict ethical standards Slide 55 of 76

56 Review Question 6 The Order of Precedence rule for purchases using the PCard should be followed except in emergency purchases or sole source purchases. A. True B. False Slide 56 of 76

57 Authorized Purchases on PCard Books Conference registration fees Non-catalog contract items - Examples: temp agencies, cell phone service, copier maintenance (use BuzzMart if catalog is available) Equipment rental (NO Vehicle Rentals except for student groups, which must be from a mandatory statewide contract unless approved through the waiver from the statewide contract process) Food/catering compliant with BFM Food/Group Meals Policy (Food/Group Meal Grid >Purchasing>PCard, then related links on right side) Freight/shipping charges Non-inventoried equipment: single units under $2,500 including freight Slide 57 of 76

58 Authorized Purchases on PCard Office furniture/files Office supplies: For statewide contract (use catalog in BuzzMart) Printing Professional memberships Software data plans, software, or apps for state issued devices such as smart phones, tablets, or laptop computers Study Abroad Program Expenses (BOR BPM section 21.4) Subscriptions Telecommunications Temp employment agencies Utilities electricity, gas, water Slide 58 of 76

59 Unauthorized Purchases on PCard PCard should never be used for personal expenditures Unintentional violation requires reimbursement of funds Intentional violation subject to: Loss of employment and/or Criminal penalties Slide 59 of 76

60 Unauthorized Purchases on PCard The following items may not be purchased with the PCard: Alcoholic beverages or tobacco products Cash advances, cash refunds, or store credit Employee travel (lodging, transportation, meals) Entertainment expenses (must be reimbursed through the Foundation or GTRC) Food/catering not in compliance with BFM Food/Group Meals Policy such as bottled water, beverage/coffee service, snacks, or entertainment. Slide 60 of 76

61 Unauthorized Purchases on PCard The following items may not be purchased with the PCard: Funding of the BuzzCard Gift cards, stored value cards, prepaid cards, calling cards, gift certificates Motor vehicle fuel Personal purchases (includes data plans, software, or apps for nonstate issued devices such as smart phones, tablets, or laptop computers) Purchases from units of the Institute Sales tax paid to Georgia vendors Split purchases to circumvent transaction limits (misuse could result in having your PCard privileges revoked) Slide 61 of 76

62 Sales Tax Cardholders are responsible for ensuring vendors do not charge Georgia sales tax AP Sales & Use Tax Certificate of Exemption / Georgia Form is available on under PCard Forms If tax is erroneously charged, the cardholder must: Contact vendor to obtain credit to the card Maintain documentation of attempts to obtain credit with the transaction backup documentation If credit cannot be obtained from vendor the department must pay the tax Sales tax may not be disputed through the bank Slide 62 of 76

63 Split Transactions Georgia Tech received audit deficiencies for split transactions If the cardholder has multiple orders/purchases on the same day and the total of these orders/purchases exceed cardholder s single transaction limit, then it is a split transaction. Ex. 1. You place an order with XYZ Company for $2200 on 10/04/13 and you place another order with XYZ Company for $600 on 10/04/13. If your single transaction limit (STL) is $ , then this is considered a split transaction. Ex. 2: You place an order with XYZ Company for $500 on 10/04/13 and you place another order with XYZ Company for $1500 on 10/04/13. If your STL is $1500, then this is considered a split transaction. In Ex. 1, the appropriate process would be to put the orders in BuzzMart via a requisition. In Ex. 2, the more appropriate process would be to have your PCard Coordinator send an request to pcard.ask@business.gatech.edu to increase your STL temporarily (the maximum STL is $ , any amount over this requires special state approval). This process only takes a few minutes for PCard administration to make the change. Cardholders who have special approval above the State STL of must also be careful and not split transactions to go above their special STL. Slide 63 of 76

64 Returning Purchases Inform the vendor the item needs to be returned Request a PCard credit be issued Request a vendor return address Request a vendor Return Authorization Number Request a vendor confirmation of the credit Check for the credit on your next monthly bank statement Slide 64 of 76

65 Resolving Disputes With Vendors Attempt to resolve the problem directly with the vendor, documenting all communications If you are unable to resolve the issue with the vendor, complete a PCard Dispute Form found at Fax form to the bank at the number listed on the form Notify your Department PCard Coordinator of the dispute and attach a copy of the dispute form to your monthly statement Check the next statement to ensure credit is received *There is a 60 day time limit from the billing close date for disputed items* Slide 65 of 76

66 Review Question 7 A split transaction is the process of placing multiple orders/purchases on the same day with the same vendor and exceeding your single transaction limit. A. True B. False Slide 66 of 76

67 Review Question 8 The PCard may be used to pay for a lunch meeting at a restaurant. A. True B. False Slide 67 of 76

68 Review Question 9 How many days from the monthly billing statement do you have to complete a Vendor Dispute Form to Bank of America? A. 45 days B. 60 days C. 90 days D. None of the Above Slide 68 of 76

69 Training/Certification Cardholders and Department PCard Coordinators must complete the PCard Cardholder and Coordinator Training & Certification online tutorial Prior to card issuance or with initial Department PCard Coordinator Status Annually in January for re-certification Departments should ensure that: Approvers complete the PCard Cardholder & CoordinatorTraining & Certification on-line tutorial Initially Annually thereafter Card program personnel are trained on internal procedures Slide 69 of 76

70 Training Additional online training Works PCard Redistribution Campus PCard Redistribution Journal Entry PCard Monthly Compliance Report Group training or one-on-one training by Business Services available by request DOAS State Purchasing Division (click on Statewide Card Programs, then top left, click on Knowledge Management) Slide 70 of 76

71 Certification I accept, and agree to comply with, the terms and conditions of the EMPLOYEE AGREEMENT FOR THE GEORGIA INSTITUTE OF TECHNOLOGY PROCUREMENT CARD PROGRAM and the provisions of the PCard Policies and Procedures Manual (PCard policy ). Certified Slide 71 of 76

72 PCard Program Key Points PROCUREMENT CARD WEBSITE Click on forms > Procurement Card (PCard) List includes PCard Forms, Tax Exemption Forms, and PCard Presentations Slide 72 of 76

73 PCard Program Key Points Annual Review of ongoing business need for cards Frequently Asked Questions (FAQ S) on website PCard Quick Reference Sheet on website Slide 73 of 76

74 QUESTIONS Visit our Frequently Asked Questions section of our website! Contact your Department PCard Coordinator or Beverly Wright, Procurement Card Program Manager Slide 74 of 76

75 Review Question 10 The best way to contact PCard Administration is through A. True B. False Slide 75 of 76

76 Tutorial Assessment Let s see what you have learned by completing the following Assessment You must score 80% or higher to receive credit for completing this tutorial You must complete this Assessment once you begin Click next to begin Slide 76 of 76