purchasing card/accounts payable presentation

Purchasing Card/Accounts Payable Presentation

Agenda

Introduction

Audit findings

Audit Recommendations

How can we help?

Introduction

PCards introduced 1st May 2003

Significant growth in use

Internal audit of April 2008 data

Highlights improved communication/training

Audit Findings

13 instances where reconciliation not submitted

9 instances where the cardholder’s supervisor did not approve the reconciliation

1 instance where the cardholder did not sign the reconciliation 1 instance in which an employee, other than the cardholder, signed

the reconciliation

99 instances of insufficient documentation

13 instances in which a transaction was split, circumventing the University’s procurement policy related to transactions over $5,000.

Other Audit Findings

Miscoding to accounts

Incorrect taxes

Ineligibility or non-compliance of research expenses per Tricouncil

Audit Recommendations

Enhancing communication with and training for cardholders and supervisors regarding their responsibilities, including authorization, coding, documentation and reconciliation requirements.

Cardholder Responsibilities

Reconcile:

Cut-off is 25th of each month or if the 25th falls on a weekend, the next business day

Reconciliation reports due to Business Office within two weeks

Cardholder Responsibilities

Authorization:

Only the cardholder may use the card Cardholder must sign reconciliation Cardholder’s supervisor must sign reconciliation

**Research** If a research purchase is made on a card belonging to someone other than PI/authorized delegate, must provide proof of PI’s approval/request.

Cardholder Responsibilities

Coding:

Expenses coded to the correct account

Taxes properly recorded

**Research** Must be eligible expenses – check with Research Accounting if in doubt – before purchasing!

Cardholder Responsibilities

Supporting Documentation:

Must be original receipts

Email for internet purchases plus Visa Receipt or Invoice

Receipts/packing slips for good received

**Research** require proof of PI authorization

Audit Recommendations

Developing and implementing a monitoring function designed to identify internal control weaknesses, establish action plans to address such weaknesses, and issue violation warnings.

Monitoring Function

PCard monitoring function in Accounts Payable

Monthly review of activity

Research reviewed for eligibility/compliance

Violation letters sent via email

Subsequent reminders sent via mail, copy to supervisor

Audit Recommendations

Ensuring potential split transactions are identified, resolved and warnings issued to cardholders and supervisors for policy violations and employing consequences when appropriate.

Standard Card Limits

Transaction Monthly

Operating $5,000 $20,000

Research $1,000 $10,000

Split Transactions

Often circumvent Purchasing Policy

All reconciliations reviewed for split transactions

Occurrences forwarded to Purchasing Manager

Communication sent to Cardholder

Audit Recommendations

Developing a process by which Purchasing Services is informed of all changes to employment status of faculty and staff that possess a purchasing card.

Cardholder Status

HR informs us of some changes in employment status

You can also keep us informed of changes in your department (leaves, transfers, acting, CDA)

Audit Recommendations

Implementing the appropriate best practices suggested by IAAS for managing and increasing the acceptance and usage of the University’s procurement card program.

Increasing usage

Rogers and other regular bills

Conference registration

Courier Services

Aramark catering

Hardware Services

Bookstore

How can we help?

For limit change requests, please contact Purchasing (and Research for cards linked to Research grants)

FAQ’s on Purchasing website

Training

Your ideas?

Where to get information

Purchasing Services613-520-3622

Research Accounting613-520-3631

Accounts Payable613-520-3627accounts_payable@carleton.ca

Thank you for attending!