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Procurement Card Training Refresher Procurement Card Training Refresher

Procurement Card Training Refresher - PowerPoint Presentation

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Procurement Card Training Refresher - PPT Presentation

Procurement Services Kathy Bordenski Assistant Director Business Development Programs Management Advisory Services MAS Michele Evans Director Alexandra ZourasWieneke Manager Jennifer Thompson Management Analyst ID: 496875

card procurement cardholder log procurement card log cardholder purchases reviewer services umaryland visa transaction purchase compliance authorized www transactions responsibilities order vendor

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Slide1

Procurement Card Training Refresher

Procurement Services:

Regina Spencer,

Assistant Director Business Development Programs

Management Advisory Services (MAS):

Michele Evans, Director

Alexandra Zouras-Wieneke, Manager

Jennifer Thompson, Management Analyst

Elaine Portnoy, Management AnalystSlide2

Training Objectives

Review Requirements and Responsibilities of

Cardholder

Authorized ReviewerVerification ReviewerCurrent Monitoring TrendsMAS reviewsAudit ImplicationsVarious reviews and audits of pcard transactions

2Slide3

Introduction

Procurement Card Program is managed by Comptroller’s Office for State of MD

Procurement law mandates that

all purchases over $5,000 be made through Procurement Services to ensure appropriate purchasing method used Example – competitive bids or sole source justifications obtainedConsult Procurement Services regarding any order expected to exceed $5,000Cards are:

A benefit

To be treated with the same level of scrutiny as a purchase order

Any purchase not permitted by purchase order is not permitted by procurement card

3Slide4

Cardholder

ResponsibilitiesSlide5

Cardholder Responsibilities

Understand and comply with

all

policies and procedures in the User's Guide which include:Card securitySecure the card, card number, expiration date, and security code at all timesDo not share the card/sensitive details

Promptly escalate inappropriate use or a lost or stolen card

Make

only allowable purchases - consult Procurement Services or MAS when uncertain

Reimbursement from Foundation or other source for unallowable purchases not acceptable

Promptly record each transaction (purchase or refund) on

the log

as they occur; include a

clear

description to justify business purpose for each purchase

Maintain a

detailed receipt for each purchase (items purchased, quantities, itemized pricing, shipping charges, sales taxes, fees); ensure total on receipt matches the final purchase total

5Slide6

Cardholder Responsibilities

(Continued)

Document delivery of relevant purchases (packing slips, delivery date column of log, etc.)

Promptly notify Inventory Custodian of non-capital and sensitive equipment purchases to ensure appropriate tagging and recording (e.g., document asset tag numbers on log or purchase documentation) Policy – new policy coming!

Reconcile monthly transaction log to Visa statement

within 7 days

of receiptComplete “Reconciled to Bank Statement” column of log for each transaction

Sign

and

date both log and Visa statement

Promptly hand-off log, statement, and supporting documents to authorized reviewer

Quickly address discrepancies or disputes,

including sales taxes

charged inappropriately; remember to log and monitor the status of expected refunds

Accept no vendor incentives (gift cards, free games or other free items with purchase )

6Slide7

Cardholder Responsibilities

(Continued)

Maintain records at least 3 years beyond fiscal year-end (may be longer for grant-related purchases)

or until audited by Legislative Auditors whichever is laterEffectively respond to all compliance and/or audit inquiriesPromptly notify Procurement Services of any status changes

Change in role

Change in name/contact details

Change of reviewer(s)Card no longer needed

Separation of employment

Surrender card immediately upon separation of employment or change in role/department

7Slide8

Reviewer

ResponsibilitiesSlide9

Authorized Reviewer Responsibilities

Understand and

monitor cardholder activity for compliance with

all policies and procedures in the User's Guide. Confirm the following for each cardholder:All transactions – including any not posted to Visa statement

– were accurately recorded in the transaction log with

clear

descriptions regarding business purposeVisa statement was effectively reconciled to transaction log

within 7 days

of receipt

Receipts and other relevant documents are included,

and

sufficiently detailed, to demonstrate

every

transaction’s compliance

Cardholder has appropriately:Completed all relevant columns appearing on the transaction logSigned and dated both the log and Visa statement

Sign

and

date both the log

and

Visa statement acknowledging compliance with the above requirements

9Slide10

Authorized Reviewer Responsibilities

(Continued)

Document concerns shared with each cardholder, including follow-up actions that need to be addressed by cardholder

Subsequently confirm that each item has been addressed by the cardholderEscalate issues not addressed through appropriate departmental channel(s) and/or Procurement ServicesForward completed transaction logs, Visa statements, and supporting documents to the verification reviewer, allowing sufficient time for the

verification

review to be completed by first business day of the following month

If cardholder had no card activity for the month, obtain written acknowledgement (e-mail, blank/signed log stating this point, etc.)

10Slide11

Authorized Reviewer Responsibilities

(Continued)

Points to Remember

You are the University’s primary line of defense against non-compliant and potentially fraudulent purchasesAuthorized Reviewer is the only one who assesses the reasonableness of each cardholder transaction to ensure compliance

Joe Evans

requires

that you promptly report the following to him – each month - before his monthly affirmation to the State:Non-compliant cardholder transactions

Scenarios in which

all

cardholder transactions have not been reconciled to the Visa statement

Scenarios in which the authorized reviewer has not approved

all

transactions for the billing cycle

Any gift card purchases

A non-response to Joe Evans’ monthly e-mail by the authorized reviewer certifies that

all

charges for the billing cycle have been reviewed

and

are compliant,

and

reviewers have signed

and

dated the transaction log and Visa statement, as appropriate.

11Slide12

Verification Reviewer Responsibilities

Receive monthly emails from Procurement Services showing cardholder activity for the most recent billing cycle

By the

first business day of the month following the cardholder’s reconciliation, confirm that:All relevant cardholders and authorized reviewers have signed and dated both their transaction logs and Visa statements timely

The authorized reviewer signing is the reviewer on record with Procurement Services

Note: the cardholder’s reconciliation is to be completed within 7 days of receipt

of the Visa statement

Sign

and

date the transaction logs, acknowledging the above points

Promptly escalate instances of cardholder and/or authorized reviewer non-compliance to Procurement Services

12Slide13

Compliance TrendsSlide14

Compliance Monitoring Trends

What is currently happening

Missing and incomplete transaction logs (completed log example)Transactions not logged as they occur/inadequate reconciliation to VISA statement

Inappropriate charges not identified by cardholder

or

authorized reviewer Compromised card

Duplicate vendor payments

Personal purchases

Incomplete and delayed reviews and/or verifications

Incorrect reviewer of record

Non-capital and sensitive equipment purchases not recorded on department’s inventory register or inventory register not maintained by department at all

14Slide15

Compliance Monitoring Trends

(Continued)

Documentation concerns

Clear business purpose Item descriptions, quantities, and prices on vendor documentation Vendor documentation present for all purchases (put back if removed for copies) Evidence that goods were received (packing slip, email, date on log)Logging and monitoring of returns/expected refunds

Documented explanations for

all

off-campus shipmentsSales tax paid and recovery not pursued Security of card and sensitive card details

Maintained on filed documentation or in a safe with unrestricted access

15Slide16

Compliance Monitoring Trends

(Continued)

Vendor incentives

Ex., gift cards, coupon vouchers, food items, tote bags/gift items Travel costs (taxi, parking, limo, lodging, etc.)Furniture purchases without MCE waiversUnauthorized food and accessory purchases Revised Policy effective 2/1/2014: New Food Policy

Fellows and residents are not

students!Gifts and awards Foundation expenses paid using state-issued VISA and subsequently reimbursed

16Slide17

Compliance Monitoring Trends

(Continued)

Split purchases

– what, why and how!Purchases exceeding $4,999 and split into multiple transactions to circumvent the thresholds Problem arises when Daily Purchases with same vendor exceed $4,999 (Example)What did you know and When did you know it? At the time of purchase/order

, if you know the order will exceed $4,999 -

do not use

the pcard and contact procurement services for further assistanceAt the time of purchase/order, the amount does not exceed $4,999 – pcard used to place order. Later that same day, another order was requested/placed with the same vendor and the combined orders exceeded $4,999….you must:

Document the

time/date

of each request and order placement to show the orders were requested and made independent of the one another

Requests should be from separate individuals and/or for separate projects

Payment of multiple invoices from same vendor on same day exceed $4,999

Document invoices are for separate orders made on separate days – order date important

17Slide18

Reviews and Audits

General Accounting Division, Comptroller of Maryland

Sends list of questionable transactions monthly

GAD Questionable VendorsLevel 3 Data examplesOffice of Legislative Audits Recently completed a Statewide Audit of the Procurement Card ProgramOLA State CPC Audit Report 2014

University System of Maryland

Routinely sends lists of questionable transactions based on level 3 descriptions

Management Advisory Services

Performs routine pcard reviews of Departments

Reviews questionable transactions

18Slide19

19Slide20

Contacts

Procurement Services:

Regina Spencer,

Asst Director Business Development Programs (410) 706-8304; rspencer@umaryland.eduWebsite: www.umaryland.edu/procurement/Management Advisory Services (MAS): Michele Evans, Director

(410) 706-5584; mevans@umaryland.edu

Alexandra Zouras-Wieneke, Manager

(410) 706-6848; azouras@umaryland.edu

Jennifer Thompson, Management Analyst

(410) 706-5996; jthompson01@umaryland.edu

Website: www.umaryland.edu/mas

/

20Slide21

Helpful Links

Procurement Card website for general pcard information:

http://www.umaryland.edu/procurement/corporate-purchasing-card

/Procurement Card User’s Guide: http://www.umaryland.edu/media/umb/af/procurement/UserGuide.pdfPcard Program Forms (for changes to cardholder acct, reviewers, etc): http://www.umaryland.edu/procurement/forms/Financial Services Policies/Procedures:

http://www.umaryland.edu/financialservices/policies-and-procedures

/

Non Capital Equipment (including sensitive) Policy: http://www.umaryland.edu/media/umb/af/fs/policies/Non-CapitalEquipment.pdf

Food and Business Meals Expense Policy:

http://

www.umaryland.edu/media/umb/af/fs/policies/FoodBusinessMealsExpense.pdf

Office of Legislative Audits - Statewide Purchasing Card Audit 2014:

http://

www.ola.state.md.us/Reports/Performance/CPC14.pdf

21