White River School District
Procurement Card
Procedures
PROCUREMENT CARD OPERATING GUIDELINES
White River School District No. 416
PAGE
I. BOARD POLICY 3
II. INTRODUCTION 4
III. OBTAINING A PROCUREMENT CARD 4
IV. OPERATING GUIDELINES 5
V. GENERAL INSTRUCTIONS 5-6
VI. RECONCILIATION PROCESS 7
Transaction Reconciliation Process/Tax Guidelines
VII. FREQUENTLY ASKED QUESTIONS 8
VIII. RETURNS/CREDITS AND DISPUTED ITEMS 9
IX. SECURITY AND REPORTING LOST CARDS 9
X. PROCUREMENT CARD PROGRAM PERSONNEL 10
XI FRAUD CONTROL 10
WHITE RIVER SCHOOL DISTRICT #416 BOARD POLICY No. 6212 6000 MANAGEMENT SUPPORT Purchasing 6212 – Charge Cards
The board authorizes the issuance of charge cards to officers and staff for district purchases, acquisitions and authorized travel. The board shall approve any contract for the issuance of credit cards, including the credit limit. Credit cards may be issued to staff. The superintendent or his/her designee is responsible for the authorization and control of the use of credit card funds, subject to final board approval of payments.
Upon billing or no later than thirty (30) days of the billing date, the officer or staff member using a charge card shall submit a fully itemized expense voucher including receipts or invoices supporting purchases. Any charges not properly identified on the expense voucher or not allowed following review by the auditing officer shall be paid by the official or staff member. Any official or staff member who has been issued a charge card shall not use the card if any disallowed charges are outstanding.
The superintendent shall establish procedures for the issuance and use of charge cards.
Cross References: Board Policy 6213 Reimbursement for Travel Expenses
Legal References: RCW 42.24.115 Municipal corporations and political subdivisions — Issuance of charge cards to officers and employees for travel expenses
43.09.2855 Local governments — Use of credit cards Management Resources:
Policy News, April 2005 Credit Card Policy Updated
INTRODUCTION
Welcome to White River School Districts’ procurement card program. The procurement card is a product designed for low dollar, non-capital item purchases.
BACKGROUND
Historical data shows that a significant portion of the District’s purchase orders are for an amount less than $500.00 per transaction. The procurement card concept is designed to delegate the authority and ability to purchase these low value items directly to the person to whom it matters most, YOU, the user.
BENEFITS
Authorized procurement card users will be able to make purchases much easier, faster, and more economically than before. Paperwork and processing in the purchasing, receiving and accounts payable functions will be improved. These efficiencies will allow a small number of groups and individuals to be more effective and focused on the value-added aspect of their jobs.
CONTROLS
The procurement card program utilizes internal management controls and management information reporting to insure that our policies, procedures, and objectives are being achieved. The District procurement card program is blocked from purchases in designated merchandise class codes. Transactions are reviewed at multiple levels for compliance and appropriateness.
TYPES OF CARDS WE ISSUE
The district has three different types of cards that are being utilized at this time. Individual User Cards – Card is issued under the cardholder name
Travel/District Procurement Cards – Cards are issued under a check out-check in system
OBTAINING A PROCUREMENT CARD
The District’s procurement card program is administered through the Business Services department and can be reached at extension #3831.
OPERATING GUIDELINES
The procurement card may be used at any qualified merchant who accepts credit cards. The procurement card may be used for current year expenses only – no prepays are allowed for the next fiscal year. Contact the business office with questions regarding specific situations.
DO NOT use your procurement card in lieu of compliance with established purchase system controls, such as bid law requirements or where the District has a contracted vendor. If you have a question not addressed in these guidelines contact the procurement card program administrator at extension #3831.
The procurement card is intended for low value, non-capital approved expense purchases. NEVER use your procurement card for transactions that impact our tax liability unless you have received specific authorization from the procurement card administrator.
The following are inappropriate procurement card purchases:
Entertainment Gifts/donations Personal Services Agreements
Contracts Gas Salaries/wages/benefits
Cash Cell phones/pagers Technology or capital equipment (electronics >$200) School/department administrators do not have the authority to make exceptions.
Consequences for noncompliance to program guidelines: • Permanent revocation of procurement card privileges • Assignment of wages for repayment of discrepancies
• Notification to the district’s accounting and security department for investigation • Disciplinary measures that may include termination and legal action
GENERAL INSTRUCTIONS
NOTE: The cardholder is responsible for ensuring that all required steps are completed when placing an order. 1. Determine if the transaction value of what you want to purchase is within the transaction limit (including
taxes, freight, shipping and handling). If NO, process the transaction via a purchase order. If YES, obtain approval from your immediate supervisor or department manager PRIOR to making the purchase. When you need to obtain approval (based on school/department policy), include any supporting documentation (e.g., list of parts, copy of catalog page, subscription order form, requisition form, etc.).
2. Complete a Purchasing Card Agreement and if this is a new vendor who is not currently in our Vendor Master File or on our Purchasing Card Vendor Master list, you must request a W9 from the Vendor prior to placing an order. The vendor may fax the W9 directly to our office at 360-829-3843 or mail the original to us. Please note the W9 is located on the Business Services website under Forms for Vendors. 3. Contact the supplier and place the approved order. Provide the supplier with your procurement card
number and expiration date. Have the supplier ship, according to terms, and give the supplier your school/department’s name, your name, telephone number and shipping address.
5. Before you finish with the vendor, check one last time to make sure all information needed is completed. 6. For local purchases an itemized sales receipt, and/or any other information related to the purchase(s).
must be obtained.
7. The vendor is paid immediately by means of the credit card.
8. Return the card and all paper backup within 3 days of your credit card use. If you placed your order online, please forward the packing slip to the business office once your goods have been received. NOTE:
• KNOW YOUR VENDOR whenever possible.
• When orders must be picked up at the supplier’s place of business, make sure your card is presented for imprint, sign the charge slip, and obtain an itemized cash register receipt for our files.
TRANSACTION RECONCILIATION PROCESS – Procurement Card Managers
Transactions must be reviewed on a weekly basis. NOTE -
** Cardholders - If you are not working for any period of time do not allow use of your card(s) if you will be unable to meet reconciliation requirements AND contact your card group Manager to make arrangements, make sure you have reconciled all outstanding transactions prior to your absence.
** If you have Manager-level approval responsibilities and will be unable to do approvals due to leave please contact Accounts Payable to make arrangements during the period of time you are unavailable.
** DO NOT SHARE YOUR ACCOUNT RECONCILIATION ACCESS WITH ANYONE. Account number(s) and other confidential information are accessible at different levels.
DISPUTES
Assistance with the dispute process for Procurement Card is available from Accounts Payable, x3831. SUPPORT DOCUMENTATION
Retaining transaction documentation is critical for the reconciliation process and audit requirements of the District. Receipts, order confirmations, online order reference numbers, etc., must be retained for each transaction.
EACH TRANSACTION MUST HAVE SUPPORTING DOCUMENTATION – NO EXCEPTIONS. The Cardholder
should gather the related documentation for weekly reconciliation. As appropriate the Cardholder(s) in a School or Department should submit their reconciled documentation to their respective Card Manager as required. The final compilation of monthly support documentation must be labeled (month/year) and forwarded to the Business office per the Accounts Payable pay cycle for easy retrieval for reference and audit.
TAX GUIDELINES
FREQUENTLY ASKED QUESTIONS
What if a cardholder leaves the District?
When a cardholder leaves the District, the cardholder must return the procurement card to the procurement card program administrator. The employee will not be issued a final paycheck until the card is returned and the account transactions are reconciled.
For whom can a cardholder purchase?
The cardholder whose name appears on the procurement card may make purchases for any employee that reports to the same school or department as the cardholder.
What if there is an error on the statement or other problems?
In case of discrepancies or disputed charges, the supplier should be contacted first. Most exceptions or issues can generally be resolved between the cardholder and the supplier/merchant by way of an adjustment that would appear on the next statement. If agreement cannot be reached with supplier, the next step is to contact the bank at their customer service center. Their staff is experienced in dealing with these problems and should be able to help. If you are unable to obtain an acceptable resolution, contact Accounts Payable at extension 3831 for assistance.
Audits
To ensure the continued success of the procurement card program, and in order to meet our district’s audit requirements, periodic audits of the cardholder’s transaction records will occur. The main purposes of the audit are to ensure that correct information is being captured and that the procurement card program policy, procedure and guidelines are being followed.
Impact on cardholders’ personal credit rating
RETURNS/CREDITS/DISPUTED ITEMS
If a purchased item needs to be returned for any reason, make arrangements with the supplier/ merchant to have the item shipped/delivered to the supplier’s place of business or warehouse. Most vendors will issue a RMA# (Return Merchandise Authorization number) which you should note on your documentation. Some vendors will issue a UPS call tag for the item(s). Keep a copy of any shipping documents used for returning merchandise and have the transportation company sign for receipt of any items being returned. These documents should also be attached to your order documents for future reference. Typically the item(s) will be paid in one cycle, and a credit will appear in the next 60 days (two billing cycles). Make sure that the accounts payable office is aware of all returns and credits – ext. #3831.
The supplier/merchant will issue credit for any item(s) returned. The Accounts Payable office will Review subsequent statements to verify that this credit has been processed and posted to your account.
Some disputed items, because of their complexity, may have to be submitted in writing. Please contact the procurement card program administrator for assistance with complicated disputes. All written communications must be submitted within 60 days of the date the item first appeared on your statement.
SECURITY AND REPORTING LOST CARDS CREDIT CARD SECURITY
Keep your procurement card in a secure location and safeguard the account number. You, as the cardholder should be the only one using the card. DO NOT post your account number at your desk, or any other place easily accessible to others. DO NOT share the use of your card with anyone except those approved by your manager or the procurement card program administrator, and only after they have signed a user agreement form.
LOST OR STOLEN CARDS
Like your personal credit cards, if your procurement card is lost or stolen, you must promptly notify the bank and contact the procurement card administrator as soon as possible.
The card will be closed and a new card will be issued and sent to the procurement card program administrator. If the old card is located at a later date – please forward to the Business Office for destruction. Do not attempt to use the old card after it has been cancelled.
Control Mechanisms within the WRSD procurement card program
The WRSD procurement card is a special type of charge card. Cardholder limitations have been coded in the card to control its use in the following ways:
• Number of times a cardholder can use the card per day • Number of times a cardholder can use the card per month • Maximum dollar amount per transaction
• Total spending limit per day and per month per cardholder
PROCUREMENT CARD PROGRAM PERSONNEL
The following resources are available to assist you with using the procurement card, answer any questions you may have, and help resolve any problems that may arise.
WRSD, PROCUREMENT CARD ADMINISTRATOR Program Administrator at extension 3831 • ….to request new card(s) and training • ….to request assistance with use of the card
• ….questions about limits, card restrictions, suppliers or process a dispute • ….questions concerning payments, transactions, the dispute process • ….Monday through Friday, 8:00 a.m. – 4:00 p.m.
• ….to cancel or report lost/stolen procurement cards 24 HOURS A DAY 1-800-344-5696
FRAUD CONTROL
The Procurement Card Fraud Control Department analyzes our purchases for consistency of purchasing patterns. If a pattern alters a fraud representative will contact the cardholder. If you should get a call, they will provide you with the account number in question and ask about the unusual transactions. To avoid needless delays, confirm or deny the charges as appropriate. Follow up with the procurement card administrator at extension #3831 for further assistance.
The fraud control management process involves account monitoring, verification of transactions with the cardholder, and canceling cards to avoid further loss. If you are contacted by one of the fraud team members, follow the guidelines below:
• Procurement Card representatives will identify themselves, state the purpose of the call and provide the card number in questions. If you have concern over the identity of the individual, ask for a call back number through their main switchboard.
• District cardholders may not give out their card numbers; however, they may confirm the card number provided by the Procurement Card Representative.
• District cardholders will be asked if specific transactions are valid and approved by the cardholder. Because the transactions are monitored and identified before they have been posted, in some cases, the
representative may not yet have the vendor name. He or she will have the dollar amount and Merchant Category Code (MCC). This is a universal credit card code that identifies the type of business (e.g. MCC 5261 = hardware).
• District cooperation in confirming or denying the questioned transactions/purchases is critical to the value of this process.
WHITE RIVER SCHOOL DISTRICT
MEMORANDUM OF UNDERSTANDING - USER AGREEMENT District-Issued Procurement Card
I understand the White River School District #416 has authorized my use of a district procurement card for authorized business expenditures on its behalf. In accepting and using the card, I agree to be bound by the terms and conditions which follow:
I will use the card issued to me only for the payment of authorized expenses on behalf of the district which include supplies, dues, registrations, pre-approved travel costs.
I will not use the card to obtain cash advances. I will not use the card for gas purchases.
I will not use the card for technology purchases.
I will not use the card for personal use or for any other non-district purpose. I will not share the card with any other person.
I understand the card cannot be used for: salaries, wages, gifts, donations, personal services. I understand purchases are limited to $________ per transaction.
I understand the credit limit for my card is $________ per month.
I understand I am responsible to provide original, itemized receipts for all charges against this card.
I understand that receipts must be submitted to the Business Office weekly and must be attached to a copy of the authorizing requisition.
I will surrender the card to the Business Office upon request.
I will immediately report any stolen or lost card to 1-800-344-5696 and 360-829-3831
I understand that any charges against the card not properly identified or not allowed by the district shall be paid by me via check, cash or salary deduction. I further understand that in compliance with RCW 42.24.115, any disallowed charges not repaid before the card billing is due will result in a lien against and a right to withhold any and all funds payable to myself by the district up to an amount of the disallowed charges plus interest. I further understand that any employee who has been issued a card shall not use the card if any disallowed charges are outstanding and shall surrender the card upon request of the Business Office.
______________ User Initials I understand that any variance and/or violation to the above conditions will result in
cancellation/revocation of my card. Misuse of the card could result in discipline and/or personal liability for dishonored charges as acknowledged herein.
Any district credit card use is subject to examination by the state auditor’s office.
The district shall have unlimited authority to revoke use of any cards issued and upon such revocation shall not be liable to any cost subsequently charged to the procurement card.
I HAVE READ AND UNDERSTAND THE ABOVE CONDITIONS:
NAME (PLEASE PRINT) TITLE
SIGNATURE SCHOOL/DEPARTMENT
CARD NUMBER DATE
