Procurement Card. Procedures Manual

Transcription

1 Procurement Card Procedures Manual By: Cindy Lambeth, Purchasing Agent Purchasing Department Santa Rosa County School District (850) Updated 09/28/15 1

2 General Guidelines Cardholder Guidelines Administrator Responsibilities Intermediary Responsibilities Personal Identification Number (PIN) Check out Form Transaction Denied Exceed the Limit Request Credits Convenience Checks Travel Reasons for Disputes Procedures for Disputes Lost or Stolen Cards Audit Training

3 GENERAL GUIDELINES This document details the basic procedures involved in the use of the Procurement Card (P-Card) and covers the responsibilities of the Cardholder, Site Administrator and the Bookkeeper/Secretary (Intermediary). The P-Card program has been developed with certain controls beyond the typical credit card we all carry in our wallets. These controls ensure that the cards are used only for specific types of purchases, within specific dollar limits, and transaction limits. Although the P-Card provides a tool for making small-dollar purchases, existing Florida laws governing purchasing, accounts payable, records retention and other applicable laws must be followed. All small purchases under $ are to be made via the P-Card, unless approved otherwise by the Purchasing department. Any purchases made with federal funds must meet the requirements set forth by the federal grantor. Most cardholders are limited to purchases of $ per transaction. This limit is set to insure that controlled property (fixed assets with acquisition cost of $ or greater) is not purchased with the P-Card unless otherwise approved by the Purchasing Director or designee. Examples of allowable purchases include, but are not limited to: books and software postage repair parts small equipment (non-controlled property) supplies videos Disallowable items include but are not limited to: alcoholic beverages cash advances adult entertainment food (unless otherwise pre-approved thru grants, SIP, etc.) non-work or personal use items and services tobacco products CARDHOLDER GUIDELINES The success of the P-Card Program relies on the cooperation and professionalism of all personnel. The most important participant is the Cardholder, the key element in making this program successful. Cardholders are responsible for the following: Keep the P-Card in a secure place. Take all precautions so that the account number cannot be stolen. Buy only job-related goods/services. Comply with all School Board purchasing policies and procedures. 3

4 Do not attempt to use the card when purchases are over the transaction limit. For most Cardholders, the limit is $ per transaction. Split orders (i.e. purchasing over the limit by using the card more than once to purchase fixed assets) are prohibited. Ensure that funding is available to pay for purchases. If funds to be used are for special projects, make sure project manager has approved the purchase in advance. Prior to entering a request a submission of information about the purchase, including the budget lines, should be faxed or sent to the Project Manager. This will allow the Project Manager to review and approve the expenditure of project funds and release the request in a timely manner. Determine if the purchase is subject to sales tax. If not, inform the merchant that the purchase is tax-exempt. Review the receipt before leaving the store and, if taxes were included, request a credit. If you have made a phone or mail order and sales tax was charged, contact the merchant and request that a credit be processed for the amount of the tax charged. A copy of the Santa Rosa County School District Tax Exemption Certificate is available on the Purchasing department s website. Department/School cards are not guaranteed fraud protection. If the bank does not reconcile and close the fraud case, it will be the department/school s responsibility to pay for the fraud charges. When using the Department/School card a new PIN will need to be issued each time the card is check out. If using the P-Card for travel, membership dues, conference, training or other transactions that require prior approval; make sure all appropriate forms are completed and approved prior to making the purchase. Collect, save and turn in sales receipts to the Intermediary in a timely manner. Receive and inspect all ordered materials and services. Report discrepancies to merchant for corrections. Instruct Merchant to send the sales receipt directly to the Cardholder and not to send an invoice to Accounts Payable. Purchase items available on existing contracts from the contract merchant. Use quotes (RFQ) and bids (RFB) that have been awarded by the Purchasing department. Make sure the merchant understands that charges are not to be billed until the item(s) have been shipped. The Fair Credit Billing Act (FCBA) prohibits payment to a merchant prior to receipt of goods or services except in specific circumstances. Back ordered items must be shipped before charged by the merchant. Provide the merchant with the appropriate delivery information. Do not use Post Office Box for "Ship to" addresses. Request that your name and "Ship to" address are clearly marked on the outside of the package. Cardholders are expected to follow appropriate state laws and guidelines, as well as use good and reasonable judgment when making purchases. Employees who misuse or abuse this privilege are subject to disciplinary action up to and including termination of employment. (Please review tip sheet / agreement form.) Before a card is issued, users must complete training on the P-Card Program. An instructional video is located online at and must be 4

5 reviewed by new Cardholders along with this Procedures Manual. An agreement form must be signed and forwarded to the Purchasing department. The only person authorized to use the P- Card is the person whose name appears on the P- Card. The Cardholder is responsible for all purchases made on his/her card. Before a School Board Employee uses a Department/School Card, he/she must view the online video, read and sign the P-Card Tip Sheet, and sign the card out and in, using the School P-Card Log Sheet kept at each site. A new pin will need to be issued each time the card is checked out. Receipts and cards are to be returned in a timely manner. If a sales receipt is missing, it is the Cardholder's responsibility to contact the merchant and request a duplicate receipt and appropriate documentation. If a Cardholder returns any merchandise, a credit should be issued to the Cardholders P- Card account and a credit receipt obtained. Cardholders should avoid merchants with restrictive return merchandise policies, when possible. Under no circumstances may a Cardholder receive cash. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the support documentation for that purchase. The following information is to be used to properly track the credit transaction: Date of the original transaction Date of the credit transaction Description of the item Dollar amount P-Card 16-digit account number and expiration date Address and telephone number as it appears on the Cardholder Profile Address: 6544 Firehouse Road, Milton, FL Telephone: Main phone number at Cardholder site. If the transaction involves a reservation or order that has been canceled, the Cardholder is responsible for ensuring that a cancellation number is obtained at the time of cancellation. If a credit does not appear on the monthly statement, the appropriate dispute paperwork, to include cancellation number, should be filed by the Cardholder's Intermediary. In the case of a disputed charge, the cardholder must try to resolve the dispute directly with the merchant, and notify the Intermediary of the disputed item. ADMINISTRATOR REPSONSIBLITIES Cost Center/Site Administrators are to initiate requests for new P-Cards by completing the P-Card Request Form and forwarding it to the Purchasing department for processing. Cost 5

6 Center/Site Administrators are to: Review and approve Cardholder P-Card transactions and initial each receipt or the coding log sheet. Ensure that the Purchasing department is notified if a Cardholder transfers within the School Board or terminates employment. Monitor Cardholder activity for appropriateness and taking any necessary disciplinary action for misuse of the P-Card. Review the purchase methods, if necessary, to ensure appropriate purchasing practices are followed. Ensure that Cardholder received goods or services before payment. Ensure that primary Intermediary has trained backup support to reconcile and process monthly P-Card statements and make payment in their absence. Ensure P-Card Statements are reviewed and paid in a timely manner. INTERMEDIARY RESPONSIBILITIES The Intermediary is the individual, usually the financial secretary, bookkeeper or data entry clerk, responsible for the reconciliation of the Cardholder receipts with the monthly statement. The reconciliation process must be done as soon as possible following receipt of the statement. A P- Card schedule will be posted on the Purchasing department s website and ed to the intermediary. The intermediary should enter the dates of the P-Card schedule on their Microsoft Outlook Calendar and set reminders. Statements will be downloaded and printed from the SunTrust website. Download schedules and Vendor Numbers are listed on the Purchasing department s website. All Intermediaries must attend P-Card training. The Intermediary has the responsibility of training backup support to reconcile and process monthly P-Card statements and make timely payments in their absence. Individual Cardholders have the ability to check their specific P-Card transactions using the SunTrust on-line system, Enterprise Spend Platform. Only assigned Intermediaries have the ability to view all P-Card transactions assigned to their center number. If the intermediary or their backup has forgotten their password for the SunTrust website, they must notify the Purchasing department. The Purchasing department personnel will change the passwords when necessary. The Intermediary is to collect P-Card receipts from Cardholders in a timely manner. (a) If a log sheet is completed and the receipts matching the log sheet entries are attached to the sheet, only the log sheet needs to be initialed/signed by the Administrator after review of the receipts. (b) If a log sheet is not being used, all receipts should be reviewed and initialed/signed by the Administrator. After the receipts are justified against the statement, a request for purchase order is entered into 6

7 the School Board Financial system using your download schedules assigned vendor number. There are two ways you may enter your request: (a) Daily/Progressive: Enter the budget lines, and complete the description area with detailed information, enter quantities, cost and then post the request. This method allows you to enter the requesting person s name or make notes that allow easier identification for budget tracking and product delivery. This request will stay in a "V" status and can be used in a progressive manner with additional purchases being entered daily. Each P-Card request is reviewed and matched to the SunTrust monthly statement and receipts; adjustments are made and the request is published so that payment may be made. (b) One Time: Enter the budget lines, complete the description area, use a quantity of one (1) with the total amount and then post the request. The request will stay in a V status until it is changed by the user to allow release and publishing. Refer to the "Purchasing Made Easy Manual" for exact steps. Daily reviews of up-to-date card transactions can be made through the SunTrust on-line Enterprise Spend Platform. Transactions are not charged or posted to accounts until the items are shipped by the merchant. Requests for purchase orders are to be annotated on the description page with the Cardholder Name, last four digits of the P-Card number and the closing date, which can be found on the statement. After the Purchase Order is approved, the pay authorization will be located in the cost center s print folder. The pay authorization is to be signed by the bookkeeper/secretary and the Administrator. The pay authorization and the P-Card statement should be forwarded to Accounts Payable. Records are to be kept on each P-card and its transactions. These records include the receipts/log sheet signed by the Administrator, a copy of the statement, and/or order forms and a copy of the pay authorization with all the proper signatures. Records are to be assembled per card per month. Follow the records retention guidelines for the maintenance of purchase orders, statements and other method of payment documentation. All Administrator s receipts, or log sheets with attached receipts, must be reviewed and initialed by another Administrator. Site audits will be performed at least once per year. Fax/ audits will be done each month. PERSONAL IDENTIFICATION NUMBER (PIN) When the P-Card is activated by a cardholder a PIN shall be assigned. The PIN is assigned to each card and cannot be shared. If a cardholder/employee shares their P-Card and PIN, fraud charges will not be covered by SunTrust. The school/site will be responsible for paying the fraud charges. The employee is responsible for the safekeeping of the P-Card and PIN. If the employee does not remember their PIN, it can be changed by calling SunTrust. 7

8 P-Cards that are issued in the school or department name (non-named P-Cards) are not covered by fraud protection. If there are fraud charges, SunTrust will try to resolve and close the fraud case. If SunTrust cannot resolve the fraud charges, the school or department is responsible for the payment of the fraud charges. The school/department cards are to be checked out and back in when in use. The checkout log will need to be completed by the employee that is checking out and returning the P- Card. A new PIN shall be assigned each time the P-Card is checked out. To activate a new card and assign a PIN, the employee shall call SunTrust ( ) and use the automated activation and PIN selection system. To activate your P-Card in the SunTrust automated system you will need to select one (1) for English or two (2) for Spanish, choose one (1), enter the sixteen (16) digit card number, and the school/department four (4) digit center number. Then you will choose one (1) to select a PIN. To select a PIN, enter the first name on the card using the letters on the telephone keypad, choose one (1) to confirm, enter a four (4) digit PIN of your choice, and re-enter the PIN to confirm. The PIN has been assigned to the P-Card and should not be shared with anyone. To change your PIN, the employee shall call SunTrust and use the automated activation and PIN selection system. To change the PIN, select one (1) for English or two (2) for Spanish, choose two (2) to select a PIN, enter the sixteen (16) digit card number, enter the first name on the card using the letters on the telephone keypad, choose one (1) to confirm, enter a four (4) digit PIN of your choice, and re-enter the PIN to confirm. The PIN has been changed and should not be shared with anyone. CHECKOUT LOG FORM A checkout log form must be used when District employees are to use the school/department P- card. The employee must complete the checkout information and call SunTrust automated system to change the PIN. The PIN cannot be shared with anyone. Once the employee has returned the P-Card, the employee must complete the card return information on the checkout log form. Receipts must be initialed by the District employee that checked out the P-Card. Receipts should be turned in when returning the P-Card to the intermediary. TRANSACTION DENIED On occasion, a Cardholder may attempt to purchase items from a merchant and the purchase is denied. Some of the most common reasons for denial are: Cardholder has attempted to make a purchase from a merchant whose Merchant Category Code (MCC) is not authorized; such as those who sell alcoholic beverages, jewelry or tobacco products as their main source of business. The purchase from the merchant may be greater than the Cardholders single transaction limit of $ The purchase from the merchant may place the Cardholder over the authorized monthly limit. With few exceptions, each card s monthly allowance is $5,000. 8

9 The merchant has entered the incorrect expiration date. The swipe was a bad read and didn t capture the security code. Please check your SunTrust account posting status frequently. Please contact the Purchasing department if you have a denied transaction. The Purchasing department has the capabilities to view the denied transaction and the code associated with the denial. EXCEED THE LIMIT REQUEST On occasion, a purchase may need to be made over the single transaction limit. This can only be done by the Intermediary contacting the Purchasing department by with a copy to their Administrator and submitting the following information: Last four numbers of the P-Card Name of Cardholder Name of Company or Vendor purchase is being made from Description of what is being purchased Total amount of the purchase Dates the purchase will be made The Purchasing department will then initiate an override with SunTrust and notify the requestor by when the override has been completed. The purchase must be made within the time frame submitted. The intermediary must notify the Purchasing department when the transaction has posted to the cardholder s SunTrust account. The cardholder must keep all applicable receipts or invoices and turn them in as soon as possible to the Intermediary. If the P-card is used for a phone order, the Cardholder is to request that a confirmation receipt be faxed/ ed, as soon as possible, listing the items purchased, unit price and total price. If receipt is not received, a Lost Receipt Form must be completed and signed by Administrator. This information will be used for reconciliation and to validate charges. If a charge is disputed, copies of the receipts validating the purchase must be provided. CREDITS If a credit needs to be issued, the merchant will issue a credit to the P-Card. When then credit is posted on the statement, the following procedures apply: a) If the purchase is listed on the statement and the credit is not, then you would pay the full balance of the statement. This will happen if the credit is issued after the closing date. The credit will be on the next month s statement. On the next month s Purchase Order you will need to list the purchase order number of the previous month s statement and budget line that the credit should go back to. The amount you pay would be for the charges only and not the credit. Accounts Payable will enter funds back into that budget line. 9

10 b) If the purchase and the credit is on the same statement, you will pay the full balance of the statement. This is called a wash. CONVENIENCE CHECKS A Convenience Check is a draft that can be used with vendors that do not accept P-Cards and the purchase is under $ Exceptions: Always use a purchase order when doing business with the Florida Book Depository or Sam s wholesale. Convenience checks are available for Visa cards only. Convenience Checks are assigned to specific P-Card accounts, generally to the Intermediary or to the School P-Card. The checks will be imprinted with Santa Rosa County School Board, the Cardholder's name, site and part of the account number. The amount of the check will be posted to your credit card account, just like any other transaction. Procedures for access checks are the same as any other transaction. A fee of 3% (with a $3.00 minimum and a $30.00 maximum) will be applied to your account for each convenience check. Convenience checks will be requested and maintained at the Purchasing department in a secure location. When a site determines a need for a Convenience check, they will complete the Convenience Check Requisition found on the Purchasing department s website and send it to the Purchasing department with any documentation available. The check will be completed by Purchasing department personnel and forwarded to the Director of Purchasing or designee to be signed. The Convenience check will then be delivered, via courier, to the requesting site, or will be available for pickup by request. Both Cardholder and Administrator are to co-sign the check before it is submitted to the vendor. The Intermediary shall send a copy of the convenience check with all three signatures to the Purchasing department. A copy of the check and documentation will also be kept on file at the site with the appropriate statement for auditing. If a refund is issued based on a convenience check purchase, a copy of the refund check and any accompanying paperwork should be kept with a copy of the convenience check. Upon receipt of the refund, the check is to be signed by the Intermediary (persons whose name is on the check) and sent to the Finance department accompanied by a completed budget amendment form and a note describing why the need for an amendment. A copy of the refund and paperwork is also to be sent to the Purchasing department. TRAVEL The P-Card may be used by authorized cardholders when on School District business travel for some expenses, such as car rentals, gas, airline tickets and lodging. The P-Card normally is not to be used for meals (pre-approval may be granted depending on circumstances, such as paying for student meals). If you are traveling for the School Board and you are renting or using your personal vehicle the following procedures should be followed: 1. If you rent a vehicle from any car rental company, you may use your School Board P-card 10

11 to purchase fuel during the trip. A reimbursement request for mileage shall not be claimed. 2. If you are using your personal vehicle, pay for the fuel with your personal funds and apply for mileage reimbursement, (in-county or out-of-county), on a School Board reimbursement travel form. The use of the card will allow for significant tax savings, in most cases in excess of 10%. When making reservations for lodging within the state of Florida, the hotel should be informed that the lodging is for business purposes. Payment will be made using a Santa Rosa County School Board P-Card and the transaction is tax exempt. While the tax exempt number is on the card, it is advisable to present a copy of the tax certificate to the hotel. The Santa Rosa County School Board Florida Department of Revenue Consumer's Certificate of Exemption is located on the Purchasing department s website. All hotels in the state of Florida are required to accept the Tax Certificate. Hotels out of state may not honor the certificate. In such cases, payment of tax is authorized. Care is to be taken to insure that movies, personal phone calls, any otherwise non-reimbursable travel expenses or personal items are not charged to the P-Card. Maintain a copy of the School Board Travel Reimbursement Form, which must reflect P-Card charges, as documentation with the corresponding P-Card statement. (Make notation on the travel form whenever a P-Card was used in place of requesting reimbursement.) REASONS FOR DISPUTE Alteration of amount: Amount of the merchant s sales draft differs from amount of the charge shown on the monthly statement. Unauthorized mail or phone order: Cardholder did not make a purchase indicated on the monthly statement. Credit not received: Cardholder has received a credit receipt from a merchant for a particular transaction; however, the credit has not been posted to the Cardholder's account according to the monthly statement. The credit receipt is older than thirty days and the cardholder has contacted the merchant to resolve. Imprinting of multiple charges: Cardholder indicates more than one charge was received for the same purchase and the merchant will not issue a credit. Merchandise not received: (1) Cardholder indicated that while the charge is valid, the items have not been received. Cardholder has contacted the merchant without satisfactory resolution. Fair Credit Billing Act (FCBA) prohibits payment prior to receipt of goods or services except in certain circumstances. 11

12 (2) Cardholder has been charged for a purchase but has contacted the merchant to cancel the order. The cardholder will refuse the merchandise if it is delivered subsequent to the cancellation. Merchandise returned: Cardholder was charged for the purchase but has since returned the merchandise and a credit has not been issued within thirty days. Unrecognized charge: Cardholder does not recognize the charge and is requesting a copy of the charge receipt. NOTE: Receiving the charge receipt does not cancel this dispute. The Cardholder must authorize payment for the merchandise or request a credit. There is a $3.00 charge per request for charge receipts from SunTrust not involving a disputed item. PROCEDURES FOR DISPUTES If there is a fraud charge on the P-Card statement, contact the vendor to see if a credit can be issued for the fraud charge. If the vendor will not issue a credit, contact the Purchasing department. The Purchasing department will notify SunTrust. A case number will be issued. SunTrust will Purchasing department an Affidavit of Fraud which will be forwarded to the Intermediary to complete and sign. The Intermediary will SunTrust disputes at [email protected] with a copy to Purchasing and Accounts Payable departments. The Intermediary should obtain an confirmation that the Affidavit of Fraud form was received. SunTrust will automatically close the card and issue a new card. Purchasing personnel will follow up to make sure the fraud is reconciled. If the fraud was charged on a department/school card and the bank did not reconcile and close the fraud case, the department/school is responsible for the fraud charges. LOST OR STOLEN CARDS If a P-Card is lost or stolen, the Cardholder is to immediately notify SunTrust at Lost or stolen cards are reported by telephone and will be blocked immediately. The Cardholder should be prepared to provide the following information to the SunTrust representative: P-Card 16-digit account number. Address and telephone number as it appears on the Cardholder s account profile: Address: 6544 Firehouse Road, Milton, FL Phone: School or Department Main Number A brief summary of events The Cardholder must also notify Purchasing department of the lost or stolen card as soon as possible. The Purchasing department will request a replacement card. AUDIT P-Card transactions will be audited by the Purchasing department personnel. There will 12

13 be monthly and annual audits conducted. The monthly audits will be by or fax. A list of transactions will be ed to the Intermediary for the monthly audits. The Intermediary will or fax the receipts and documents to the Purchasing department. For the annual audit, there will be a site visit made to the school or department to view P- Card transactions and documentation. A final audit findings memo will be sent to the administrator for each school or department. TRAINING All intermediaries and their backups are required to complete P-Card training with the Purchasing department upon initial employment with the District or when transferred into a position that requires the employee to be the Intermediary or backup. Additional training will be conducted by the Purchasing department at various educational training sessions during the year. An employee can request additional P-Card training by making an appointment with the Purchasing department. 13