Purchasing Card/Accounts Payable Presentation

1. Purchasing Card/Accounts Payable Presentation

2. Agenda • Introduction • Audit findings • Audit Recommendations • How can we help?

3. Introduction • PCards introduced 1st May 2003 • Significant growth in use • Internal audit of April 2008 data • Highlights improved communication/training

4. 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.

5. Other Audit Findings • Miscoding to accounts • Incorrect taxes • Ineligibility or non-compliance of research expenses per Tricouncil

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

7. 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

8. 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.

9. 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!

10. 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

11. 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.

12. 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

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

14. Standard Card Limits

15. Split Transactions • Often circumvent Purchasing Policy • All reconciliations reviewed for split transactions • Occurrences forwarded to Purchasing Manager • Communication sent to Cardholder

16. 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.

17. 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)

18. 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.

19. Increasing usage • Rogers and other regular bills • Conference registration • Courier Services • Aramark catering • Hardware Services • Bookstore

20. 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?

21. Where to get information Purchasing Services 613-520-3622 Research Accounting 613-520-3631 Accounts Payable 613-520-3627 accounts_payable@carleton.ca

22. Thank you for attending!