Multnomah Education Service District

1. Multnomah Education Service District P-Card New User Training

2. P-Card Training Agenda • Introduction • Procurement Ethics • P-Card Purchasing Processes • P-Card Administration • What would you do?

3. Keep in mind • P-Card use is a privilege, not a right!

4. What is a P-Card? • P-Card = “Procurement Card” • A P-Card is a type of credit card with special administrative features that can be used by a business or government agency.

5. Why use Procurement Card? The use of a P-Card is intended to • Promote efficiency in the procurement of goods and services • Provide a convenient method for obtaining goods and services

6. Why Do You Need P-Card Training? • As a public employee, you will be responsible for upholding certain requirements: • Legal • Ethical • Procedural

7. Who is eligible to use Procurement Card? • Regular employees who have successfully completed initial and periodic refresher training • Limited Temp/Seasonal employees who have successfully completed initial or periodic refresher training

8. Who is NOT eligible to use Procurement Card? • Employees of temporary staffing agencies • Outside contractors/consultants • Employees on extended leave such as FMLA, Medical, Disciplinary and other leaves of absence • Employees who have not successfully completed initial or periodic refresher training

9. Procurement Ethics

10. A Paradigm Shift • YOU are now the government purchasing agent. • YOU become the focal point for justifying your actions. • YOU become the object of any media or legal attention as to any of your actions (along with MESD)

11. The GSPC • Oregon’s Government Standards & Practices Commission • The “Ethics Commission” • Per Oregon State Law (ORS 244), the GSPC has jurisdiction over: • Use of public office for financial gain • Conflict of interest

12. GSPC & Public Officials • Definition of “Public Official” • ORS 244.020(15) defines a public official as “any person who… is serving the State of Oregon or any of its political subdivisions or any other public body of the state as an officer, employee, agent or otherwise, and irrespective of whether the person is compensated for such services.” • As an employee of MESD, youare a Public Official!

13. The Law & You • ORS 244.040(1)(a): • "No public official shall use or attempt to use official position or office to obtain financial gain or avoidance of financial detrimentthat would not otherwise be available but for the public official’s holding of the official position or office...“

14. Examples of Financial Gain orAvoidance of Financial Detriment • Frequent flyer miles • Free gift with purchase – classroom? • Free admissions – Due to your “position” • Waived fees – Due to your “position” • Store Credit • Safeway 10¢ per gallon All goods/services/benefits associated/received with P-Card purchase belong to MESD.

15. ORS 244.020: Conflict of Interest • Before taking an official action, a public official should first: determine if an action could result in financial benefit or avoidance of financial detriment to the official, a relative or a business with which the official or a relative is associated. If the answer is "no," proceed with the action. • A “relative" includes the public official’s spouse and the parents, children, brothers and sisters of either the public official or the official’s spouse. A "member of a household" is any relative, as defined above, who resides with the public official.

16. More Law & You • Any person who was a public official at the time of an alleged violation will be subject to the authority of the GSPC, for a period of four years after the alleged violation, regardless of whether or not the person is still a public official at the time a complaint is filed.

17. GSPC on the Web • http://www.gspc.state.or.us/

18. Anybody Can Report You • Downloadable complaint form on GSPC website

19. All Reported Cases Listed on Web • Even if a case is dismissed, the record is kept on the GSPC website for years.

20. P-Card Purchasing Process At Multnomah ESD

21. P-Card Limits (You) • Card Limits • Per-transaction limit • Per- statement cycle limit (28th through 27th) • Department Limits (Budget) • You need appropriate department approval • Ethical Limits • Be sure your purchase is above reproach and doesn’t present the appearance of impropriety

22. Things You Must Do BEFORE Buying • If you are going to use a trade service contractor to glue, nail, screw, drill, use concrete or make a building repair at an MESD or non-MESD site, you must contact FACILITIES SERVICES: • Mark Wheeler: x 1786 • If you are purchasing technology-related items that will work with the network, or for which you expect support from TS, you must contact TECHNOLOGY SERVICES: • Wendy Chase: x 1775

23. Split Requirements • When a purchase contract is broken up into smaller transactions to circumvent bid/quote limits • ORS 279B.065 (2) makes split requirements illegal

24. Purchasing Less than $5000? • Quotes not mandatory (but, would you get quotes at home?) • Avoid split requirements • If you have a stake in the vendor’s business, or if you have a close personal, professional or family connection to the vendor, ask someone else to buy.

25. More than $5000 • If your purchase is $5000 or more • Follow the 3 quote process • Contact Mike Mlynarczyk x1791 in Purchasing for assistance.

26. P-Card Administration

27. When to use the card ? • To the maximum extent possible. • Purchases can be made • In person • By phone • By fax • The internet

28. You and Your Department’s Responsibilities • Physical Security of Cards • Keep all receipts, invoices, packing slips and quotation documents • Verify, enter description and account number in all transactions made against your card in the WORKS system • Provide all documentation for review during audits.

29. Your Further Responsibilities Fixed Asset • Goods that exceed $5,000 are considered inventory items. Make a copy of packing slip, invoice, etc. and forward to Business Services.

30. Bank of America WORKS • A secure, web-based expense management system • Allows you to perform administrative tasks online • Provides automated reporting tools

31. Cardholder Responsibilitiesin WORKS • Each time you use your P-Card, you will receive an email saying, “Task to Perform” • Update P-Card transaction information and sign-off in the WORKS system • Enter valid account codes for your transactions unless otherwise directed

32. If you are a an “Approver” in WORKS • After a P-Card User has completed transaction sign-off, the “approver” will receive an email notifying that there is a transaction awaiting approval in WORKS.

33. Business Services’Responsibilities • Be available for assistance when needed • Review P-Card activity for proper usage • Provide opportunities for initial and refresher training • Conduct monthly internal audits

34. Internal Audit Business Services will conduct random monthly audits to monitor compliance with agency policy on purchasing, card usage, recordkeeping, and ethics. For example, we will check that: • Purchases are made for business purposes only • P-Card receipts are retained • Quote documentation maintained (purchases over $5000) • No “Split Purchases” have occurred • Cards have been cancelled when appropriate • Timeliness of task completion in WORKS

35. Audit Results Most Common Mistakes. . . • No description • Description too vague: “parking” • Delay in Cardholder/Manager Sign Off • Gratuity over the 15% limit • Questionable receipts

36. Qualifying Receipts • Acceptable receipts • Invoice • Register Receipt • Web Page Print Out • An acceptable receipt must include • Vendor Name • Amount • Date • Itemized description of item(s) purchased

37. Lost Receipts You must fill out the “Lost, Stolen or Missing Receipt” form and submit it to your Director for approval. Find it at http://www.mesd.k12.or.us/pcard Excessive lost receipts will lead to the loss of your P-Card privileges.

38. Records Retention All receipts, invoices, and bank statements are to be kept as follows: • Expenditures of federal funds: • 5 years after final or annual expenditure report accepted. • Other records: • 3 years

39. Unapproved Uses • Personal Purchases • Cash or cash-type transaction • Frequent Flyer Programs • Purchase of items expressly prohibited by policy • EScrip Program

40. Special Situation Uses • Percentage Off Programs • Gift Cards -student incentives (tracking mandatory) • Incentive Card Programs - Use 503-255-1841 for purchase discounts (no personal phone numbers) • Safeway card • Albertsons

41. Potential Problems • Suppliers that do not accept credit cards • Available Balance on Card • Returns • Disputed Charges

42. P-Card Team P-Card/WORKS Questions:Brian Altman (503) 257-1794 baltman@mesd.k12.or.us Purchasing Questions:Mike Mlynarczyk (503) 257-1791 mmlynarc@mesd.k12.or.us

43. What would you do? • A team exercise!

44. Question 1 • You want to buy some handmade paperweights as prizes for children in one of your programs. It’s only going to cost you $100 to buy a hundred! The guy who makes and sells the paperweights is your secretary’s oldest son, and he accepts P-Cards. Do you use your P-Card to buy them?

45. Question 2 • You need to buy two overhead projectors for a meeting you’re holding. They cost $2,799, each. If your card transaction limit is $5,000, how are you going to get the projectors in time for the meeting?

46. Question 3 • You accidentally left your receipt in your pants pocket—the pants that are in the washing machine, right now! What are you going to do about it?

47. Question 4 • Computers “R” Us is having a sale on a printer that your boss desperately wants. They’re half-off, costing $3,720, which for these printers, is a really cool deal. In fact, your boss is ready to go out and buy it this very afternoon with his P-Card! What advice would you give him?

48. Question 5 • You bought some office supplies over the phone from a locally-owned store with your P-Card two weeks before Christmas. The next day, the store owner, who is the nicest woman you’ve ever met, delivers you the supplies, along with a beautiful fruitcake. What would you do?

49. Thank You for your Participation! Your Certification will expire in March, 2013