Implementing Purchase Cards

1. Implementing Purchase Cards User Training

2. Part 1:OVERVIEW P-Card Program and Policies P-Card Program

3. P-Card Program Goals • Convenience and timeliness for staff • Reduce Purchase Order Use • Quicker turn-around time for orders • Utilize Internet ordering • Reduced invoicing • Timely payments made to vendors

4. Who Does What with P-Cards • Use Purchase Card • Maintain Receipt Logs CARDHOLDER • Authorizes Cardholders • Authorizes Cardholder Limits • Review Cardholder Purchases • Monthly Budget Summary DEPARTMENT HEAD BUSINESS OFFICE • Training • Application Process • Audits Receipt Logs • Process Budget Summaries DIRECTOR of FISCAL SERVICES • Training • Investigate/Decline Issues • Authorizes Changes

5. REMEMBER!!!! Current Policies Still Apply!! • WESD Board Policies • WESD Travel Requirements • WESD Purchasing Rules • P-Cards are Non-transferable

6. Part 2:GETTING STARTED P-Card Program

7. How to Acquire a P-Card j Request P-Card k Get District/Administrator Approval l Read and Sign Policies & Procedures m Attend Formal Training – WESD Policies n Receive and Activate Card o Assume Full Responsibility for Card

8. P-Card Purchasing Prerequisites • Authorized by WESD Business Office • Approved by your Dept. Administrator for Budgetary Limits approvals • Follow proper Purchasing Procedures

9. Purchasing Limits *Varies by User Need Single Transaction Limit Monthly Limit Bank only monitors limits WESD Director of Fiscal Services approves any adjustments from original authorization upon Administrator request.

10. P-Card Tips • 1. Check Your Receipts! • WESD is a tax-exempt agency. Our tax exemption number is 93-6002529. • No sales tax should be charged from any state • When items are being shipped, freight should be included in the quoted price. • 2. Maintain P-Card Security • Security for cards, transactions, and statements are the responsibility of the Cardholders • Items with account numbers need to be secure at all times • The Bank and WESD requires name appearing on the card be person initiating the transactions

11. Purchases Not Allowed • Anything for personal use • Capital equipment over $5,000 or hazardous materials • Items exceeding single purchase limit • Purchases inappropriate for WESD • Travel, unless authorized

12. Suspension or Termination of Cardholder Privileges • Non-compliance with WESD Board & Purchasing policies • Non-compliance with State & Federal procurement laws • Failure to retain receipts and maintain Purchase Receipt Log • Failure to initiate and resolve charge disputes • Non-approved purchases • Personal expenditures • Job position change (requires re-application) • Position responsibility change • Administration Discretion This may result from any of the following:

13. Part 3: Operational Procedures P-Card Program

14. How Will P-Cards Affect Me? • P-Cards are a corporate liability, not an individual liability. • Personal credit ratings will not be affected. • No personal funds will be used to pay monthly statements.

15. Purchasing • Less than $5,000.00 for goods, equipment, and services. • From $5,001.00 to $75,000.00 for goods and equipment, but not services, a three-quote process is required. • WESD purchasing guidelines Policy DR.

16. Cardholder’s Responsibilities • Place orders/purchase • Retain itemized receipts • Note order/purchase on Purchasing Receipt Log • Check receipts and log against monthly statements • Attach receipts as listed on bank statement – Date and sign Purchase Receipt Log • Submit to Dept. Administrator or Business Office

17. RECEIPT LOG • One receipt log per cardholder • Record each transaction on the receipt log • Reconcile receipts and log to monthly bank statement • Organize receipts in order as listed on bank statement • Attach receipts to back of statements • Sign and date receipt log • Attach receipt log to top of bank statement • Submit to Dept. Administrator for approval

18. Purchase Receipt Log Sample

19. What if Receipts and Statements Don’t Match? It doesn’t add up! • Go Back to Vendor • If they don’t agree, call bank to dispute • Fill out a Dispute Form and fax to Bank • Make copies of Dispute Form for your records • Send original to Program Administrator • Cardholder’s are responsible to initiate the follow-up disputes DO NOT DELAY PROCESSING BECAUSE OF DISPUTES!

20. Woke Up This Morning and Realized You Lost Your P-Card? • Call the 1-800 number from your manual immediately • FAX a written confirmation to bank as soon as possible • Notify and forward the notice immediately to the Director of Fiscal Services

21. Administrator Responsibilities • Collect, review, and approve all Cardholders receipts, Receipt Logs, and Bank Statements • Designate account budget codes to individual transactions from Purchasing Receipt Log • Receipt Log total must match the bank statement total • Sign-off Monthly Budget Summary, send with all monthly paperwork to Director of Fiscal Services by the 15 of each month

22. Business Services Responsibilities • Pay the monthly statements by the due date and charge the correct account • Review P-Card activity for proper usage and produce required IRS 1099 form, if needed • Provide opportunities for initial and annual refresher training every month • Conduct internal audit

23. Internal Audit Business Services will conduct audits to monitor compliance with agency policy on purchasing, card usage, record keeping and ethics. • P-Card log is accurate and all receipts have been obtained • Account limits have been adhered to • Expense transactions have been authorized • Inactive accounts have been closed • P-Card based purchasing has been consolidated when practical • Exit procedures have been updated to add a specific line item for collecting the P-Card

24. Records Retention All receipts, invoices, and P-Card Transaction Logs, bank statements and quotation forms are to be kept as follows: • Expenditures of federal funds: 5 years after final or annual expenditure report accepted. • Other records: 2 prior years