Procurement Card Policy Overview

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Procurement Card Policy Overview

• Presented by
• Catherine Susman
• Deanne Lahaie-Noll

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Purpose

• Overview of Policys main tenants and procedural
  requirements

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History

• OUS Internal Audit Division performed system-wide
  audit of Procurement Card Program in 2006
• March 2007 IAD Audit Report listed 3 overall
  recommendations
• Improve Monitoring
• Provide Training for all Users and Reviewers
• Improve Program Administration

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History Continued

• Result of the March 2007 report was the OUS
  Procurement Card Policy effective 2-1-2008
• Campus compliance with OUS Policy required by
  7-1-2008
• UO P-Card Policy effective 7-1-2008

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UO Procurement Card Policy

• 9 member policy team helped develop the UO
  Procurement Card Policy
• Campus input sought throughout process
• Policy effective 7-1-08

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Policy Implementation

• Requirements
• OUS online test
• New signature authorization

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OUS Online Test

• Campus completion by 8-1-2008
• All Budget Authorities, Card Custodians, and Card
  Users required to take test
• Open book based upon knowledge of OUS policy
• Program Administrator can verify who has passed
  the test

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Signature Authorization(Initial Submittal)

• Campus completion by 9-1-2008
• Completed and signed by Budget Authority, Card
  Custodian and Card User
• OUS online test must be successfully completed
  before signing the signature authorization
• Includes details on roles responsibilities

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Signature Authorization(Updates)

• Notification of all changes within 24 hours
• If change in Card User a revised signature
  authorization must be filed within 1 week
• If change in Card Custodian or Budget Authority a
  card is suspended until
• A new signature authorization received
• A new card with a new account has been issued

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Roles

• Budget Authority
• Card Custodian
• Card User
• Program Administrator

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Budget Authority

• Must still be the Dean, Director, or Department
  Head
• Responsible for reviewing all charges
• Responsible for requesting and authorizing use of
  P-Cards for department
• Cannot be a Card User

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Card Custodian

• Department representative responsible for holding
  cards safe
• Maintains P-Card documentation
• Monthly Reconciliation
• May also be a Card User

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Card User

• Authorized to use P-Card for purchases on behalf
  of department
• Maintains understanding of policies and purchase
  restrictions
• May be a Card Custodian

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Program Administrator

• Maintains monitors Procurement Card Program
  Policies
• Manages Program training
• Maintains lists of Card Users, Card Custodians,
  and Budget Authorities
• Issues P-Cards

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Using the Procurement Card

• Purchasing goods and non-tax reportable services
  less than 5k
• Back ordering allowed as long as charges for
  items do not occur until item is shipped
• Tax reportable services may be purchased from
  vendors listed on p-card incorporated service
  vendors list or are pre-approved for a one time
  exception by Program Administrator
• Card Custodian must contact Program Administrator
  about any dispute within 30 days of discovery

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Documenting Use of Your P-Card

• Documentation must support what was ordered,
  received and paid for
• Minimum Documentation
• Date of Purchase
• Vendor Name
• Item
• Description
• Amount
• Shipping Address
• Name of Card User
• Card Users shall not store a copy of the P-Card
  account

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Multiple Card Users

• Multiple user log required for P-Cards with more
  than one user
• Multiple user log may be kept in hard copy or
  electronic format
• If kept in electronic format log must only be
  accessible by the Card Custodian

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Monthly Statements

• Departments monthly statements received in a
  secure location
• Verification Reconciliation performed within 30
  days of receiving the statement

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Verifications Reconciliation (Standard
Requirements)

• Custodian required to attest to reconciliation by
  signing and dating statement
• Budget Authority required to attest to
  reconciliation by signing and dating statement
• If any issues with any charges Card Custodian
  contact Program Administrator immediately

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Verifications Reconciliation(Additional
Requirements for Custodian Charges)

• Budget Authority or designee must review, sign
  and date the Custodian charges
• If delegated, reviewer must not be supervised by
  person whose charges are being reviewed
• If any issues with any charges contact Program
  Administrator immediately

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Card Security

• Custodian is responsible for the physical custody
  of the P-Card/account number
• Custodian may not delegate responsibility
• P-Card must be checked out/in by Card Users
• Multiple Card Users require written documentation
• P-Card may not be checked out longer than 24
  hours without written approval from the Budget
  Authority (may not be open-ended approval)

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Violations

• Fall into 3 categories
• Minor
• Intermediate
• Major
• Open, transparent process of what is not allowed
• All reviews will be documented and copies
  provided to Budget Authority Card Custodian

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Sanctions

• Actions taken in response to P-Card Violations
  fall into 3 categories
• Minor
• Intermediate
• Major
• Violations are applied to the P-Card account not
  to individuals
• Appeal Rights

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Procurement Card Training

• OUS online test required for all Budget
  Authorities, Card Custodian Card Users
• Card Custodian training with Program
  Administrator is required before Card Custodians
  can act in their role
• Campus training provided as needed

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Post Audit Internal Reviews

• DAS, OUS 3rd Party Audits
• Internal reviews by PCS
• Onsite reviews
• Notification of review to Custodian and Budget
  Authority
• Standard checklist
• Immediate feedback
• Written report of review results
• Monthly transaction reviews
• Custodian must submit original documentation for
  selected transactions
• Review results communicated to Custodian and
  Budget Authority
• Sanctions will be applied for violations

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Your Attendance and Support is Appreciated

• Please contact us with any questions
• Lynne Harrell 346-3220
• Deanne Lahaie-Noll 346-3156
• Catherine Susman 346-1255

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