Procurement Card (PCard) Cardholder and Coordinator Training & Certification

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:

http://www.trainsweb.gatech.edu/?page=login so that a record of the training exists.

Using the PCard at Georgia Tech PCARD ADMINISTRATION [email protected]

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Agenda 

Program Overview



Program Controls

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Responsibilities

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Purchases



Annual Certification



Program Key Points

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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 5.2.1.8

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Program Overview

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Program Overview/ Non-Catalog Suppliers 

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

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

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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

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Program Overview 

FY2013 Volume = $41.0 million

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FY2013 Transactions = 131,174

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FY2013 Average Transaction Amount = $311

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FY2013 Cardholders = 1,765

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Departments = 130+

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Coordinators = 160+ Slide 7 of 76

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. www.doas.ga.gov (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 http://www.lexis-nexis.com/hottopics/gacode/default.asp Enter 50-5-83 in the search box and click Search To view the text click on: § 50 - 5 - 83 . Definitions; requirements for state purchasing card program Slide 8 of 76

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)

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Program Controls

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Managing the PCard Program PCard Program Manager Department PCard Coordinator

Cardholder

Cardholder

PCard Program is administered by Business Services Each department assigns a Department PCard Coordinator to manage the PCard program at the department level

Cardholder

Cards are issued to Georgia Tech in the individual’s name Slide 11 of 76

Program Controls 

Maintain integrity of program

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Program established with built-in oversight controls

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Doctrine of cardholder accountability

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No system is 100% risk free



Integrity of employees

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Card Eligibility/Issuance 

Permanent, regular-status employees are card eligible 



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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

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How Do I Get A PCard? • Complete Cardholder Training & Certification tutorial

1st

2nd 3rd 4th

• http://www.orgdev.gatech.edu/training/?page=mastcal

• Complete the PCard Request Form and the Employee Agreement Form for the PCard • http://www.procurement.gatech.edu/pcard/training-forms#forms

• Submit the forms to your Department PCard Coordinator for approval • Department PCard Coordinator will forward the forms to the PCard Administrator

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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

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 $2,499.99 per transaction. The standard monthly dollar limit is $25,000. Slide 16 of 76

PCard Spending Limits  Department Head or Department PCard Coordinator can request temporary exceptions by contacting [email protected]  Single transaction dollar limit  Monthly (per cycle) dollar limit Note: I ncreased lim it cards m ay not be used to circum vent State’s no-bid lim it

 PCard denied by vendor if  Purchase exceeds single transaction dollar limit  Purchase exceeds monthly (per cycle) dollar limit Slide 17 of 76

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

GT Policies  GT PCard Policy Manual  Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.policylibrary.gatech.edu/procurementcards-pcard

 Department internal procedures  Must be in accordance with GT Policy  Can be more restrictive, but not less restrictive

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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

ETHICS HOTLINE 

GT employees can confidentially & anonymously report suspected PCard misuse via a “Hotline” 1-866-294-5565 or 



https://secure.ethicspoint.com/domain/en/report_cust om.asp?clientid=7508 or www.ethicspoint.com, click “File Report”

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Issuing the PCard

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Issuing the PCard  PCard Administration in Business Services will notify you by e-mail when your PCard has been  Approved/issued 

Ready for pick up

State of Georgia TAX EXEMPT FOR OFFICIAL USE ONLY

Purchasing Card 1234 5678 2345 6789 09/09

GEORGE P. BURDELL GEORGIA TECH

09/14

 Your Department PCard

Coordinator establishes your  Default Project ID  Default Expense Account  Single Transaction Limit  Monthly Purchase Limit Slide 23 of 76

Works 

Welcome email from “Works” with login instructions when issued a PCard



Bank posts transactions daily to Works/email 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

Cost Allocation 

Defaults 



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

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Cost Allocation PCard default account: Account typically associated with charges on the PCard 



Ex: Default account used 714100 – Supplies & Materials

Redistribute charges to appropriate expense account 

Ex: Registration Fees to 727100 or Special Group Meals to 727700

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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

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

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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

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CARDHOLDER RESPONSIBILITY

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You Are Responsible  GT PCard Policy Manual  Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.admin-fin.gatech.edu/?page=business

Misuse of the PCard will result in having your PCard privileges revoked, and could result in termination of employment and criminal penalties.

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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

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Lost or Stolen Cards  Cardholder immediately report lost, stolen, or fraudulently used PCards to: Bank of America at 1-888-449-2273  Cardholder - Notify Approver and Department PCard Coordinator

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Returning PCards  If the cardholder is 

Transferring to another Department; or



Leaving Georgia Tech

EMPLOYEE MUST Return PCard to the Department PCard Coordinator

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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

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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

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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 27th each month

 Federal, State, and Internal Auditors may request this file for compliance audits at any time

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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.

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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

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

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 (www.procurement.gatech.edu), click on Purchasing>PCard

Develop procedures to ensure responsible budget holders verify charges to sponsored accounts

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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

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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

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Coordinators 

Oversee department program



Primary link to GT PCard Program Administration





Communicate program information to appropriate personnel Facilitate monthly online compliance report

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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

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

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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

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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

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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

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Purchases

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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. § 45-10-1 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

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), www.doas.ga.gov BOR (Board of Regents), www.usg.edu/business_procedures_manual Georgia Tech purchasing policies, www.procurement.gatech.edu/ Slide 52 of 76

Order of Precedence 1st 2nd 3rd 4th 5th

• State of Georgia-DOAS Mandatory Contracts • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp

• Georgia Tech Agency Contracts • See Contract Section in BuzzMart

• Georgia Correctional Industries or Georgia Enterprise • http://doas.ga.gov/statelocal/SPD/contracts/pages/home.aspx

• State of Georgia-DOAS ‘Convenience’ Contract • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp

• Open market

The order of precedence is followed as listed above. Exceptions are made for emergency purchases and sole source purchases.

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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 $2499.99. Use of the PCard program as a method of payment does not relieve the cardholder of these responsibilities.

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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

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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. B.

True False

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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 5.2.1.9 Food/Group Meals Policy (Food/Group Meal Grid www.procurement.gatech.edu >Purchasing>PCard, then related links on right side)



Freight/shipping charges



Non-inventoried equipment: single units under $2,500 including freight

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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

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

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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 5.2.1.9 Food/Group Meals Policy such as bottled water, beverage/coffee service, snacks, or entertainment.

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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

Sales Tax 

Cardholders are responsible for ensuring vendors do not charge Georgia sales tax 



If tax is erroneously charged, the cardholder must:  





“AP – Sales & Use Tax Certificate of Exemption / Georgia Form” is available on www.procurement.gatech.edu under PCard Forms

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

Split Transactions  





 

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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 $2499.99, 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 email request to [email protected] to increase your STL temporarily (the maximum STL is $4999.99, 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 4999.99 must also be careful and not split transactions to go above their special STL.

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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

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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 http://procurement.gatech.edu/pcard/training-forms#forms 

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

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

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

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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

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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

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

www.doas.ga.gov (click on Statewide Card Programs, then top left, click on Knowledge Management)

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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 5.2.1.8).

Certified

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PCard Program Key Points 

PROCUREMENT CARD WEBSITE 

www.procurement.gatech.edu  

Click on forms > Procurement Card (PCard) List includes PCard Forms, Tax Exemption Forms, and PCard Presentations

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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

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QUESTIONS Visit our Frequently Asked Questions section of our website!

Contact your Department PCard Coordinator or Beverly Wright, Procurement Card Program Manager [email protected] 404-894-1009

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Review Question 10 The best way to contact PCard Administration is through [email protected]. A. True B. False

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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

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