CHA Purchasing Card (PCard) Training for Cardholders and Managers

1. CHA Purchasing Card (PCard) Training for Cardholders and Managers PCard Administrators Steve Lamphere Ken Widis

2. Presentation Highlights • Program Overview • Benefits to the CHA • Benefits to the Supplier • CHA and Personal Liability • How Program Works • Documentation • Purchasing Card Policy and Procedures • Cardholder Responsibilities • Program Restrictions

3. PCard and the CHA • Simplifies purchase of non-restricted products and services • Reduces administrative time and effort related to purchase of authorized commodities • Reduces administrative cost associated with processing purchase orders, invoices and checks • Effective procurement tool for emergency requirements • Compliments CHA buys, electronic purchasing systems and the online private marketplace

4. Point-of-Sale Controls • Purchase Card transactions per day • Purchase Card transactions per month • Single purchase limit up to (Max) of $2,500.00 (includes all transaction related shipping, delivery or handling charges) • Monthly spending limit of up to (Avg)$5,000.00 • Monthly spending limit can be increased based on need and A0 approval • Cycles • Spending • Statement

5. PCard Vocabulary • Cardholder - Person whose name is on the card • Approving Official - Cardholder’s immediate supervisor • MBNA - The bank that provides the card • Program Administrator – Overall Program responsibility

6. PCards Streamline the Purchasing and Payment Process • Steps in a Purchase Order Transaction • Steps in a Purchasing Card Transaction • Benchmark Statistics • CHA PO & P-Card Statistics

7. The Steps in the Purchasing Card Process • End user enters PO into YARDI • ALL Purchases must be Approved Prior to PCard Use • Vendor paid immediately • Vendor delivers item directly to department • PCard Holder receives invoice for every purchase

8. Why Use Anything BUT Purchasing Cards? • Purchasing 101 “Why some items aren’t allowed on the card.”

9. Services Repairs, alterations and maintenance • Need to manage risk—insurance requirements Contracts • Recommended for all services • Required for all personal services

10. Information Technology • Delegated Authority • Only IT is authorized to approve Hardware / Software purchases • Compatibility issues………… • Some software OK if approved in advance via email other documentation

11. Items Requiring Pre-Authorization • Gifts, donations, awards, contributions • Hosting/Entertaining • Other…..

12. Miscellaneous • Payments to individuals, employees or residents • Items to be installed • Fines, late fees, penalties, interest, finance charges • Some Vendors do not accept Charge Cards

13. Approving Official Responsibilities • Ultimately responsible for appropriate card use. • Approves the appropriate level of spending authority for the cardholder. • Approves the cardholder’s purchasing card application and agreement. • Approves the cardholder’s initial per-transaction and monthly transaction limits, and any temporary or permanent increases to those limits.

14. Cardholder Responsibilities • Directly responsible for appropriate card use. • Keeps the purchasing card in a safe and secure location. • Makes allowable and appropriate purchases. • Receives and inspects orders. • Arranges for returns and credits when necessary.

15. Cardholder Responsibilities • Reviews transactions online • Gathers and assembles all supporting documentation • Reports immediately a lost or stolen card or any unusual card activity • Surrenders the card upon termination of employment or upon request by the AO or PA

16. Procedures for Using the Card • Resources • Placing Orders • Receiving & Inspecting Orders • Reviewing Transactions Online • Avoiding Fraud • Preparing for Review

17. Resources: CHA Purchasing Card Handbook • Web Site • Approved Contractor List • CHA Policies & Procedures • Review procedures

18. Procedures: When Making A Purchase • Save ALL receipts • Make a screen-print when ordering on-line • Keep completed order-form when faxing orders • During travel, save meeting/conference agendas, hotel folios, and rental car agreements

19. PCard as a Travel Card: • Only the traveler’s PCard may be used for his/her expenses • Airline tickets for employees MUST be on a PCard • Do NOT use for personal charges on hotel bill • Do NOT use to buy fuel for privately owned vehicles

20. Before Traveling • Review the current CHA Travel Policy • Review the per diem allowance for your destination • Contact the Procurement Office at least 3 working days prior to travel if your limit needs to be adjusted

21. During Travel: • Save all receipts • Save meeting /conference agenda • Obtain itemized hotel bill • Save rental car agreement

22. Returning from Travel • Collect all receipts • Update the PCard transaction in YARDI • Collect and Attach all receipts to monthly PCard statement for reconciliation

23. Return, Receive, Inspect & Document Receipt of Order • Work out any problems with the vendor • Return to vendor — MUST be a credit to the PCard (No Cash Back) • Obtain itemized receipt • Vendor name, address and phone • Date of purchase • Description of each item purchased • Per-item cost, if available from vendor

24. Receipt Tips In Person: Keep itemized receipt Phone: Tell vendor to mail or fax receipt Fax: Keep copy of order form & attach packing slip Internet: Screen print the completed form & attach packing slip

25. Procedures: Lost/Missing Receipts • Try to get a receipt from the vendor • Attach packing slip if available • Attach copy of order form • Attach a piece of product packaging • Attach Affidavit of Lost Receipt Form Link to form available on Purchasing web site

26. Disputed Charges • Contact the vendor and attempt resolution first. • Contact MBNA within 30 days • Complete and submit “Dispute form”

27. What if the card is lost or stolen? • 7 x 24 hours availability • Card holder should notify MBNA immediately. • Notify your agency Program Administrator.

28. What happens if I break the rules….. • Suspension of PCard Privileges • Forced to attend Retraining • Permanent Loss of PCard Privileges • Termination and • Prosecution possible in some cases

29. Misuse of Purchasing Card • Personal misuse: • Personal purchases • Purchase of restricted commodities or from restricted suppliers • Splitting of purchase or service cost over multiple card transactions in order to circumvent the authorized transaction limit • Administrative misuse: • Failure to obtain and submit supporting documentation for all card transactions • Lack of timely and proper reconciliation of monthly statements • Use of the card by anyone other than the authorized cardholder • Risks: • Warning letter / verbal from Program Administrator • Suspension of card privileges • Employee termination

30. PCard Card Misuse & Abuse • IT’S NOT PERSONAL, IT’S BUSINESS • Cardholder Suspension • Cardholder Retraining • Fraudulent use of the Purchasing credit card will result in actions being taken in accordance with the procedures established in the Cardholder Agreement form.

31. Summary • Use your card judiciously with common sense. • Follow the program rules. • Reallocate your charges in a timely manner. • Keep accurate records. • Communicate with your Approving Official or the Procurement Dept on any problems you might have.

32. Questions or Feedback?