Procurement Card Procedures |
Section: IV – Purchasing Introduction This procurement card program was established in order to provide a more rapid turnaround of requisitions for low-dollar-value goods and to reduce paperwork and handling costs. Using the Procurement Card Purchasing System (PCPS) dramatically shortens the payment cycle from the traditional requisition process which includes pricing, inquiry, order placement, delivery of goods, invoice and voucher review. Those requisitioners who have been issued procurement cards may initiate transactions in person or by telephone, within the limits of the procedure, and receive goods. Payments to vendors are made via the VISA Settlement system. Accounts Payable will make monthly settlements with the bank. Definitions Administrator: the person responsible for all program details, including all cardholder inquiries Budget Manager: the person who reviews and approves a cardholder's monthly statement of account Cardholder: the personnel who have been issued procurement cards and authorized to make purchases in accordance with these procedures Requisitioner: an employee who has a need for materials that can only be fulfilled by a vendor (Under the Procurement Card Purchasing System, a requisitioner may be a cardholder.) Single Purchase Limit: a dollar amount limitation of purchasing authority delegated to a cardholder (This dollar limit may vary from cardholder to cardholder.) Statement of Account: the monthly listing of all transactions by the cardholder, issued directly to the cardholder by the bank Vendor: a company from which a cardholder is purchasing materials under the provisions of this procedure |
Receiving a Purchasing Card Budget managers may propose personnel to be cardholders by contacting the Procurement Card Administrator and by completing a Cardholder Enrollment Form. The enrollment form indicates all information needed to properly set the cardholder up in the procurement card system. The proposed cardholder shall be issued a copy of this procedure and shall be required to sign a Cardholder Enrollment Form and an Employee Agreement. (Copies of these two forms are found at the end of this section.) The agreement indicates that the cardholder understands the procedures and the responsibilities of a PCPS cardholder. Authorized Credit Card Use Prior to using the Procurement Card, each department/school must send a Purchase Order Request (Form AS-6) to the Purchasing Department, indicating Fund 1 or 2 budget codes to encumber funds for procurement card transactions. Each school or department is responsible for maintaining its card transactions to ensure that the encumbered amount is not exceeded. The unique procurement card that the cardholder receives has his/her name embossed on it and shall ONLY be used by the cardholder. No other person is authorized to use that card. While cardholders may make transactions on behalf of others in their department, they remain responsible for all use of the card. Procurement Card Uses Use of the procurement card shall be limited by the following conditions: 1. The total value of the transaction shall not exceed a cardholder’s single purchase limit. Payment for a purchase will not be split into multiple transactions to stay within the single purchase limit. 2. All items purchased “over the counter” must be immediately available at the time of procurement card use. No backordering of merchandise is allowed. 3. The cardholder must adhere to the spending limit. 4. The cardholder shall inform the vendor that the goods are to be taxed. (Guilford County Schools are not tax exempt.) Procurement Card Limitations The procurement card shall NOT be used for the following:
Unauthorized Purchases A cardholder who makes unauthorized purchases or carelessly uses the procurement card may be liable for the total dollar amount of such unauthorized purchases, plus any administrative fees charged by the bank in connection with the misuse. Making Purchases Procurement procedures allow the purchase of goods or services valued at $2,500 or less to be made from a “Vendor of Choice.” This implies the possibility of not comparing sources or competition between vendors. However, it is also policy to seek competition and the lowest prices within the parameters of quality and delivery. Whenever making a procurement card purchase, the cardholder will check as many sources of supply as reasonable to the situation to assure best price and delivery. Where possible, the Purchasing Department will establish pricing agreements and identify preferred suppliers. Items stocked in the warehouse should not be purchased unless prior approval is given by the Purchasing Department. Items on existing state contracts must be purchased from the contract vendors. Maintenance Department personnel below the level of foreman have a $750 per transaction limit. School personnel may not charge more than $2,500 per day on the card. |
Purchase Checklist Cardholders will utilize the following checklist when making purchases. 1. Check with the Purchasing Department to see if vendors and prices have already been established for the required goods. If not, solicit a reasonable number of sources. If vendors furnish standing price quotations or catalog prices on a recurring basis, check that the price listed is current. 2. Once a vendor is designated and that vendor confirms that the goods or materials are available and meet the specification and delivery requirements, take the following steps:
3. It is extremely important that all purchases be sent to the cardholder ordering the merchandise as this will ensure that the documents necessary for the recordkeeping are readily available to the cardholder. 4. If necessary, advise the individual within your area who receives merchandise of the vendor’s name and order number, anticipated delivery date, number of boxes expected, and carrier (UPS, FED EX, etc.). Also notify the cardholder when delivery is made. Cardholder Recordkeeping Whenever a procurement card purchase is made, either over the counter or by telephone, documentation shall be retained as proof of the purchase. Such documentation will be used to verify the purchases listed on the cardholder’s monthly statement of account. When the purchase is made over the counter, the cardholder shall retain the invoice and customer copy of the charge receipt. Prior to signing this slip, the cardholder is responsible for making sure that the vendor lists the quantity, fully describes the item(s), and includes the sales tax on the charge slip. When the goods are received as a result of placing a telephone order, retain all shipping documentation. A requisition with the signature of the principal/department head shall be attached to the documentation for each purchase. All records must be retained on site and available for audit for five (5) years. Monthly Statement At the end of each billing cycle, the cardholder shall receive from the bank his/her monthly statement of account. It will list the cardholder’s transactions for that period. h The cardholder shall check each transaction listed against his/her receipts and any shipping documents to verify the monthly statement. The original sales documents (packing slips, invoice, cash register tape, procurement card slips, etc.) for all items listed on the monthly statement must be neatly attached to the statement. This data attachment is critical to enable audit substantiation. The procurement card will be revoked if the above routine is not followed. The careful matching of complete support documents to the statement is vital to the successful use of this program. Budget Manager Review The budget manager shall check the cardholder’s monthly statement and confirm with the cardholder the following items as minimum. 1. Receipts and shipping documents exist for each purchase. 2. The goods or materials were received. 3. The cardholder has complied with applicable procedures, including this PCPS procedure. The budget manager’s approval of a cardholder’s monthly statement indicates that the cardholder was authorized to make those purchases and those purchases were made in accordance with the applicable procedures. Lack of Documentation If the cardholder does not have documentation of a transaction listed on the monthly statement, he/she shall attach an explanation that includes a description of the item(s) purchased, date of purchase, vendor’s name and reason for the lack of supporting documentation. Procurement Problems 1. If an item is not satisfactory (wrongly received, damaged and/or defective, a duplicate order, etc.), the cardholder should make contact with the vendor to explain the problem and inquire about return policies. If items purchased by the use of the procurement card are unacceptable, the cardholder is responsible for obtaining replacement or correction of the item as soon as possible. If the vendor has not replaced or corrected the item by the date the cardholder receives his/her monthly statement, then the purchase of the item will be considered in dispute. 2. If the cardholder is disputing a charge, he/she shall complete a dispute form and include it with the statement package. 3. If an item has been returned and a credit voucher received, the cardholder shall verify that this credit is reflected on the monthly statement. 4. If purchased items or credits are not listed on the monthly statement, the appropriate transaction documentation shall be retained by the cardholder until the next statement period. Monthly Account Summaries Monthly account summaries listing all transactions shall be issued by the bank to the Administrator and to Accounts Payable. All cardholders except those in the Maintenance Department shall do the following:
Card Security It is the cardholder’s responsibility to safeguard the procurement card and account number to the same degree that a cardholder safeguards his/her personal credit information. The cardholder must not allow anyone to use his/her account number. A violation of this trust will result in the cardholder having his/her card withdrawn and disciplinary action taken. If the card is lost or stolen, the cardholder shall immediately notify the bank at Also notify the Procurement Card Administrator immediately upon discovery of loss or theft. Cardholder Separation Prior to separation from Guilford County Schools, the cardholder shall surrender the procurement card to the Administrator. |
