National Bank of Canada MasterCard. Corporate Purchasing Card (P-Card) System (CPS) Manual

Transcription

1 National Bank of Canada MasterCard Corporate Purchasing Card (P-Card) System (CPS) Manual

2 I. System Objective The primary objective of the Corporate P-Card System (CPS) is to provide a convenient, cost-effective and efficient method of procuring and paying for lower dollar value goods and services by; simplifying the procurement process, improving order cycle time, reducing paperwork, expediting vendor payments and empowering faculty and staff. Departments may use Corporate P-Cards for the procurement and payment of goods and services where it is efficient, economical and operationally feasible to do so. System usage must comply with the procedures and policies contained in this document. II. Key Areas & Responsibilities CPS Administration (Supply Management Services) Responsible and accountable for the overall administration of the system, including co-ordination with the National Bank for card issuance, changes and deletions; web access and security for reconciliation & reporting; and monitoring of the system for procedural compliance. Provides support, assistance and training to Site Co-ordinators and provides assistance for the training of individual Cardholders, as required. CONTACTS: Brianne MacNeil CPS Administrator FAX: Site Co-ordinators (Department Head, APO or Designate) Responsible and accountable for administration of the system at the departmental level, including coordination of the addition/issuance and deletion of cards, in co-operation with CPS Administration, and the distribution and/or reconciliation of monthly individual billing statements. Monitors Cardholder compliance with the CPS Manual. Determines reporting hierarchy for the department and ensures accuracy of information. Trains and provides assistance to Cardholders regarding system instructions and procedures. Acts as a departmental focal point for Cardholder and management feedback. Cardholder - Permanent University Employee (Full-time, part-time or recurring term of regular or trust employment status) Responsible and accountable for security of their card, use of their card in accordance with the CPS Manual and any additional restrictions/conditions that may be imposed by their Site Co-ordinator.

3 III. General Procedures and Requirements - Cardholder Each Card has a unique number and is issued to an individual. That individual is responsible for the card and accountable for the following: Cardholder Agreement Form: Responsible for accepting and adhering to the policies and procedures in the Corporate Purchasing Card (CPS) Manual. Read the CPS Manual and sign the Cardholder Agreement Form Return the form to the Departmental Site Coordinator Site Coordinator will forward to Supply Management Services Card Security Cards must be kept in a secure location when not in use. Card Cancellation: Cards may be cancelled for the following: After one year of non-use Extended leaves of more than three months Non-compliance Loss or theft of card Transfer to a new department Retirement or resignation Report a lost or stolen card: Cardholder is responsible for advising the National Bank of Canada to report the loss and identify possible fraudulent charges. Notify the Departmental Site Coordinator and the Card Program Administrator Document Retention: National Bank Responsible for retention of detailed original receipts and packing slips for file/record maintenance and audit purposes. A Lost/No Receipt Declaration Form will be accepted as a substitute in lieu of a detailed receipt, however a lack of supporting documentation and excessive use of Lost/No Receipt Declaration forms, may result in card cancellation. Billing Statements: Promptly review individual billing statements to verify charges and make any changes to the default accounting codes assigned to the card. Attach all card slips and supporting documentation (e.g., packing slips, detailed store receipts, invoices) for verification with your individual billing reports. Sign the billing statement, attach all supporting documents and return to the Site Coordinator or designate for online reconciliation prior to month end. GST self assessment must be performed for purchases of imported services and intangibles that do not physically cross the border. See link below:

4 Signing Authority: It is the Cardholder s responsibility to ensure that all required signatures are obtained as outlined below: Cardholder must sign billing statement. Internal Control Approval Signature is required. Cardholders who are Site Co-ordinators must acquire direct supervisor approval signature on their billing statement. Cardholders must not review and approve the billing statements for individuals to whom they report. One-over-one authorization must be acquired. One-over-one authorization must be acquired for any travel/hosting related transactions. Disputed Items: Attempt to resolve the disputed item directly with the vendor. Contact CPS Administrator in Supply Management Services within sixty (60) days of the transaction date if unresolved with the vendor. Purchasing Policies and Procedures: Cardholder s must adhere to the procedures as set out in the Parent Policy: Supply of Goods and Services Policy found on the U of A Policies and Procedures Online (UAPPOL) website. Customs Import Procedure Customs Permit Procedure Purchase of Restricted Items Procedure Acquisition of Foreign Goods and Services Procedure Retention & Filing Procedure Signing Authority and Approval Procedure Non-Compliance: Cards may be cancelled for the following infractions at the discretion of Supply Management Services: Splitting charges to circumvent card limits Personal purchases Purchasing restricted items Lack of signatures and receipts on Cardholder statements Please note: The credit card chit is not considered a receipt. Details of the purchase must be available for audit purposes.

5 IV. Ordering and Operational Procedures - Cardholder Ordering: The card must be used only to make authorized, official University purchases. Purchases must be made within the established card limits. Splitting transactions in order to circumvent the transaction limit is strictly prohibited. Instruct the vendor to ship the goods to Supply Management Services - Central Receiving and to clearly identify the cardholder name, department name and address information on the box and packing slip. Record all purchases made with the card (See Appendix B). Some Vendors may require the Billing Address of the card: University of Alberta 77 University Campus Edmonton, AB T6G 2R3 Brianne MacNeil Examples of Allowable Purchases: Goods and Services within the established limit of the card Items not on the Restricted List Internet orders (with detailed backup) Subscriptions, Memberships, Conference Registrations (not including Accommodation) Hospitality (with internal departmental approval) Taxi cabs (with internal departmental approval) Restricted Purchases Items on the Acquisition of Foreign Goods list (see next page) Professional Expense Allowance purchases Travel Expenses (Airfare, Accommodation, meals, Vehicle Rental) Items of personal use Cash advance Donations and Sponsorships Maintenance Contracts and Lease Agreements e.g. Ongoing equipment maintenance and Software license agreements Contracting for services with individuals and small business Equipment Rentals exceeding thirty (30) days Services provided by Facilities and Operations i.e. construction/building maintenance Gifts of Alcohol/Alcohol at Staff functions Controlled Substances Radioactive and infectious disease materials Laser and X-Ray Equipment Compressed Gases Pressure Equipment Commercial Lab Alcohols Laboratory and research animals

6 Acquisition of Foreign Goods Restricted or Controlled goods entering Canada from USA and International locations are not to be ordered using the Corporate Purchasing Card regardless of the value of the goods. These commodities may require permits, licences or certificates which must be obtained prior to the order being placed with the foreign supplier. A Purchase Requisition must be used to order the following types of commodities from foreign suppliers Live Animals, Fish and Plants (order lab animals through HSLAS) Animal Embryos and Semen Human and Animal Organs, Tissues and Sera Human, Animal and/or Plant Pathogens and Toxins Food Products (i.e. Seeds, Soil, Lumber, Turkey, Chicken) Fertilizers Carbon Steel and Specialty Steel Products (i.e. Stainless Steel Wire) Textile and Apparel Products Rough Diamonds Explosives, Propellants, Safety Flares, Pyrotechnics Commercial Alcohols Radioactive Isotopes Precursor Chemicals and Controlled Drugs or Narcotics Energy-Using Products (i.e. Furnaces, Boilers, Heaters, Pumps, Air Conditioners) For more information on the policy Acquisition of Foreign Goods and Gifts, Donations and Sponsorships go to:

7 IV. Standardized Departmental Procedures Site Co-ordinator A Department Head or Administrative Professional Officer (or appointed representative) must be designated as the Site Co-ordinator to administer the system at a departmental level and to authorize and control the issuance of departmental cards. Departments using Corporate Cards are responsible for any charges relating to their cards. Liability for charges rests with the department, not the individual Cardholder. Site Co-ordinators are responsible for ensuring that every Cardholder is informed about the system instructions and procedures including credit and transaction limits of their card, their responsibilities and the restrictions regarding the use of the Corporate Card. Card Applications: Applications may be found in the forms cabinet at All card requests are to be directed to CPS Administration. The card limits currently default to $5,000 CDN per transaction and $15,000 CDN monthly credit. These limits may be adjusted based on historical spend or non-use. The single transaction limit maximum is $5, but may be lower. Card Cancellations: Responsible for notifying CPS Administration when a Cardholder leaves a Department and/or the University or of extended absence leaves exceeding a three-month period. Cards can remain live during Sabbaticals as long as cardholders can commit to complete and timely compliance with the requirements of the CPS Manual. Responsible for obtaining the card from the Cardholder prior to their departure. Cards not used in a twelve consecutive month period will be cancelled. Lost or Stolen Cards: The Department could be liable for any unauthorized use of the card until notification of loss, theft or cancellation has been reported to the card company by the Cardholder. Lost or stolen cards must be reported to both CPS Administration and the National Bank. The Bank can be notified 24 hours, seven days a week at the following telephone number: Monthly Reconciliation: Responsible for ensuring appropriate expensing of charges. If a speedcode or account is incorrect or inactive, charges will be automatically processed against the speedcode that has been designated as the default In the case of the default not being valid, charges will be processed to the departments general operating. GST self assessment must be performed on imported services and intangibles Internal Controls: Responsible for ensuring those adequate internal controls are in place at the departmental level by ensuring these procedures are followed. Central filing is required for compliance monitoring purposes.

8 Signature Approvals: Site Co-ordinators must ensure that appropriate signatures are obtained as follows: a) The Cardholder must sign billing statement. b) Internal Control Approval signature is required. Site Co-ordinator s must acquire direct supervisor approval on their billing statements. c) Site Co-ordinators must not review and approve the billing statements for individuals to whom they report. One-over-one signature must be acquired. d) One-over-one signature must be acquired for any travel/hosting related transactions Receipts for hosting expenses must indicate who was hosted on the back of the detailed receipt. A Chit is not considered a receipt. Travel expenses apply to existing cards only, open for blocking template Alberta 5 or Alberta 10, and must indicate purpose of travel for one-over-one approval. Please note: Blocking templates Alberta 5 and Alberta 10 are no longer an available option to Corporate P-Card holders. Please note: Billing statements that require signature approval outside your department (e.g. Dean s that require one-over approval from a Vice-President) must have an internal control signature prior to leaving the department. These statements must be sent in a timely manner, every month, within four (4) weeks of cycle date. Records Retention: Corporate P-Card billing statements, complete with supporting documentation (i.e. detailed receipts, packing slips, charge card slips) must be retained centrally within the department for audit purposes and to facilitate reconciliation and account verification. Retention period for these records is six years plus current year. A Lost/No Receipt Declaration Form must be completed if there is no detailed receipt. This includes restaurant receipts for hosting purposes. Excessive use of Lost/No Receipt forms can result in Card cancellation. Detailed information regarding records retention can be found in the Guide to Financial Management under Retention and Filing of Source Documents. Lost/No Receipt Declaration Forms can be found in the Forms Cabinet at Under the Procurement and Contract Management Forms. Asset Management Units are required to track the following in an equipment asset register: Portable items under $5,000 which the unit deems prone to loss or theft such as digital video cameras, laptops, etc. Every piece of equipment to be tracked as described above must have an equipment asset tag attached to it. Units may choose to track any other items. Units are not required to track furnishings assets.

9 VI. Compliance Monitoring Annual Review: Assists the CPS Administrator in performing an annual review of cardholder activity, limits and status. Results must be reviewed and signed off by Departmental Management. Compliance Monitoring: In addition to the regular review of system reports a representative from Financial Services will conduct detailed reviews with the assistance of each Site Co-ordinator to determine whether the system objective has been met. The process will also include a review of departmental internal control systems and an evaluation of departmental and Cardholder satisfaction of the system. Accessibility and availability of supporting documentation and receipts must be located centrally for internal control and audit purposes, individually and consecutively labeled by month/year with the corresponding billing statements and supporting documents. An audit of selected transactions will be performed on an on-going basis and will include the following: Review of receipts (detailed original receipts) and supporting Documentation Restricted items Split transactions to circumvent card limits Personal purchases Application of correct GST code and amount Appropriate signature approvals (for departmental internal controls) Central document retention (receipts, packing slips, statements) Card activity level V. Non-Compliance CPS Administration or the Site Co-ordinator may cancel cards at any time. Non-compliance can be reviewed on an individual or departmental basis. Supply Management Services reserves the right to remove all cards at a departmental level for non-compliance. Cards may be cancelled for the following at the discretion of Supply Management Services: Splitting charges to circumvent card limits Personal Purchases Lack of appropriate signature approvals Consistent lack of receipts and supporting documentation Infrequent or non-use of the card Purchasing restricted items If the Department suspects that a card is being used fraudulently, please contact Barb Rumball in Supply Management Services at or Brianne MacNeil at

10 Appendix A Electronic Reconciliation Procedures and Steps in a Standardized Administrative Process 1. On the first working day following the 16 th of the month, the billing statements are made available via the web for online reconciliation. An notification will be sent from Supply Management Services to the designated reconcilers indicating cut-off dates for making any changes to transactions prior to posting to the GL. 2. Billing Statements are to be printed and distributed to the cardholders by the Site Co-ordinator or designate. 3. Cardholders are to indicate where the charges should be expensed, any GST changes to code, or amount, and attach all receipts. The billing statement must be signed by the Cardholder and returned to the Site Co-ordinator or designate in a timely manner to allow the completion of the online reconciliation of the charges prior to month end. 4. GST Self-Assessment must be performed on imported services and imported intangibles. E.g. data base services, licenses/maintenance agreements, electronically downloaded software, electronic copies of books, music etc. Go to: Procedure.pdf 5. Obtain signatures on Cardholder statements as specified in the CPS Manual. 6. Files must be located in a central location, individually and consecutively labelled by month/year with the corresponding billing statements and supporting documents. This will provide easy access and availability for the system reviews.

11 Appendix B - Log Sheet U OF A Corporate P- Card System (CPS) Transaction Log Sheet Cardholder Name Card Number Default SpeedCode/Account Number Order Date Supplier Description Price GST Amount GST Code SpeedCode/Account Change Notes Received Date Billing Report Date Corporate P-Card Last Update: June System Manual