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P-Card Best PRACTICES AND COMMON PITFALLS

Frances Guzman Deputy Director for Business Operations and Finance Support Region One Education Service Center fguzman@esc1.net. P-Card Best PRACTICES AND COMMON PITFALLS. Tight controls over who/what/where and HOW much employees can purchase

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P-Card Best PRACTICES AND COMMON PITFALLS

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  1. Frances Guzman Deputy Director for Business Operations and Finance Support Region One Education Service Center fguzman@esc1.net P-CardBest PRACTICES AND COMMON PITFALLS

  2. Tight controls over who/what/where and HOW much employees can purchase • Reduced paperwork resulting in lower cost per transaction • Simplifies buying process • Reduces check volume • On-Line purchases • Removed need for petty cash in schools • Hotel/Airfare reservations • Vendors that don’t accept district Purchase Orders • Rebates on purchases Reasons for Starting Program

  3. BEST PRACTICES District Policy/Procedures Manual on the use of credit cards • Users must read and sign an agreement before receiving their card • Handbook given to all cardholders during training session that outlines safeguards • When a Purchase Order is required for purchases using the P-card • Those cases where a Purchase Order is not used (limited) - for example individual travel related expenses • In most cases a credit card receipt or billing statement is not sufficient documentation; an itemized receipt should be obtained - exceptions: gas receipts which should include the amount of fuel disbursed and the vehicle license number • If district vehicles are being fueled using a P-card then a vehicle log should be maintained that includes mileage, date, fuel amount and cost • Employees should be aware personal expenses should not be charged to the district’s credit card other than authorized, reimbursable expenses related to district travel

  4. BEST PRACTICES District Policy/Procedures Manual on the use of credit cards (cont.) • A good policy is when the employee checks out a credit card they must return with receipt(s) and PO copy if warranted or be responsible for the charge • Credit limits and restrictions - Gift Cards, personal purchases, PayPal, ATMs • P-cards can be set to accept or restrict certain Merchant Category Codes (MCC) – example: restrict access to ATMs • Sales tax is not allowed except for restaurant/gas/out of state purchases; vendor must credit back the sales tax • Specific transactions governed by specific requirements, example – Restaurants (itemized receipt, no sales tax, no gratuity, no alcohol) • How to handle disputes, returns, credits • Handling fraudulent activity • Processing transactions – proper budgets, receipts/invoices, approvals • End of year processing – 1099s, P-card cutoff

  5. Lori A. Ramos Purchasing Coordinator Region One Education Service Center laramos@esc1.net Marc David Garcia Purchasing Specialist Region One Education Service Center mdgarcia@esc1.net QUESTIONS?

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