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Procurement Card Programs

Procurement Card Programs. The Procurement Card (P-Card) What is it?. A Credit Card which empowers individual employees to make purchases for their Campus/Department in an efficient manner. Why have them?. Simplified buying process

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Procurement Card Programs

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  1. Procurement Card Programs

  2. The Procurement Card (P-Card) What is it? • A Credit Card which empowers individual employees to make purchases for their Campus/Department in an efficient manner.

  3. Why have them? • Simplified buying process • Saves times by eliminating Purchase Orders and Accounts Payable invoices • Speeds up payments to your vendors • Can be used to generate revenue for your District

  4. How to start a program • Piggy-Back on a Cooperative Contract • Texas Comptroller of Public Accounts • Fort Worth ISD or other entities • Publish a RFP • Board Approval

  5. Procurement Card Models • Individual Card Holders • Temporary Use

  6. Individual Card Holder Model Approved Vendor List 2 1 Card Holder Reconciles 5 4 3

  7. Card Check-Out Model 3 If Approved, Card Custodian issues card to Teacher 5 Returns Card and Receipt to Card Custodian Teacher Card Custodian 4 6 Purchase Made from Approved Vendor Goods Received 1 Custodian Reconciles Transactions and forwards to Principal for Approval – on a monthly basis Creates Purchase Request 2 Purchase Approved Merchant 7 Sends Reconciliation Package to Purchase Card Administrator Purchase Card Administrator Principal

  8. How P-Cards are being used • Walk-In Purchases • Wal-mart, Target, Grocery Stores, etc. • On-Line Purchases • Travel Cards • Eliminates the use of employee personal funds • Cash Cards • Reduces the need for pre-pay checks • Accounts Payable Cards • Reduces the amount of checks processed

  9. Card Setup • Cardholder Request Form • Appropriate Management signatures • Online Card Setup through the Bank’s System • Budget Encumbered (Separate Object Codes) • Declining Balance Card • Credit limit of the card = Budget Encumbered • Bank System should not allow more to be spent • Single Transaction/Daily Spend Limits

  10. Training and Documentation • Training is required before card issuance • Cardholder and Approver must attend • Program specifics discussed in detail • “How-to” Presentation • Tax-Exempt Form provided in Training • Purchase Card Manual • Approved Vendor Lists • Violations Policy

  11. Controls • Specific Vendor List • Ensures Bid Law Compliance • Merchant Category Code (MCC) Restriction • 100% Receipt Retention Required • Monthly Audits • Monthly Reconciliation Required • Must completed online transaction verification • Signatures required on printed report • 10 Business days to complete

  12. Controls • Program Manager • Internal Audit Support • Enforce Violations • “School Bus” Yellow Card • Single Transaction Limit • Daily Spend Limits • Declining Balance • Required Training

  13. Questions & Answers

  14. Controls within Round Rock ISD • Separation of Duties • Ownership of the overall process split between the Purchasing Office and the Finance Department • Purchasing Office • New / replacement card requests • Signature on the Cardholder User’s Guide • Changes / limit adjustments • Finance Department • Ownership of the card company contract • Receipt of new cards ordered by the Purchasing Office • Reconciliation of Statements

  15. Controls within Round Rock ISD • Cardholder Responsibilities and Requirements • Each card is provided with the individual’s name imprinted on the card • Card holder must sign the Cardholder’s User’s Guide at time of receipt • Must follow all purchasing guidelines • Provide proper documentation (e.g. receipts) for all purchases • Provide immediate notice to the Purchasing Office if fraud is found or the card is lost

  16. Controls within Round Rock ISD • Classifications • Allows for much faster / efficient operations for change requests • Currently 50 classifications based on Administrative (“A”) or Curriculum (“C”) • Includes: • Monthly credit limit based on position ranging from $250 to $35,000 per month • A code on if the card can be increased and when if allowed (yes, no, or emergency)

  17. Controls within Round Rock ISD • Classifications • Examples: • Director (level 1) A061CN • Limit of $1,000 month • No increases allowed • Technician (maintenance) A140CN • Limit of $1,000 month • No increases allowed • Exec. Assistant (Level 2) A161FY • Limit of $7,500 month • Increases as requested • Principal C010DE • Limit of $2,500 month • Emergency increases • Admin. Associate C040FY • Limit of $7,500 month • Increase during specific periods

  18. Questions & Answers RRISD Web Site: https://www.roundrockisd.org/Modules/ShowDocument.aspx?documentid=20591

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