Loading...
05-004 PCard policy procedures_2017 FINANCE PURCHASE CARD (P-CARD) PROCEDURES Approval Date 21-08-2017 Revision Date 21-08-2017 Page 1 / 5 PURCHASING CARD (P-CARD) PROCEDURES 1.0 Purpose This Policy describes: a) Who may obtain a Town of Tillsonburg Purchasing Card (P-Card); b) The P-Card’s authorized uses; and c) Identify roles and responsibilities. 2.0 Application and Scope This policy applies to full-time Town employees, part-time employees where there is a minimum of 3 days or 24 hours worked per week. In this policy these employees shall be referred to as “Employees.” 3.0 Definitions “Purchasing Card” or “P-Card”: a Town corporate credit card, with a monthly credit limit as set by the Town, which can be used by designated employees: i. to purchase Town-related goods or services which are Eligible Purchases; or ii. for permitted business travel and meal expenses up to but not exceeding the per transaction limit set by the Town. “Approver”: the department head or staff manager who is responsible for, among other things, ensuring the Cardholder’s purchases are Eligible Purchases and are charged to the correct cost centre. “Cardholder”: Town employee who has been issued a P-Card for Eligible Purchases. “Eligible Purchases”: permitted transactions, including but not limited to: i. Books / magazines; ii. Subscriptions; iii. Computer hardware and software; iv. Professional Membership dues; v. Conference Registration fees; vi. Office supplies, cleaning material. vii. Business meal and entertainment; viii. Food and beverages; ix. Hotels; x. Airfare; xi. Train tickets; xii. Taxi; “Ineligible Purchases”: non-permitted transactions, including but not limited to: i. Personal purchases meaning any expense of a personal nature unrelated to Town business; ii. Duplicate reimbursements a) e.g. A meal when the Cardholder plans to use a per diem for meals on that date; TOWN OF TILLSONBURG FINANCE DEPARTMENT PURCHASING CARD (P-CARD) PROCEDURES Page 2 / 5 PURCHASING CARD (P-CARD) PROCEDURES b) e.g. Gas purchase when the Cardholder plans to use a mileage claim for that trip; iii. Consulting Services; iv. Professional Services; v. goods and services covered by a Blanket or Systems Contract, without prior written consent by Finance Department vi. hazardous materials; vii. donations; viii. cash advances; or ix. Any other purchase other than Eligible Purchases. “Purchasing Card Administrator": responsible for facilitation of the Purchasing Card program within the Finance Department. “Supplier Documentation”: proof of purchase documentation from the supplier for each P-Card transaction, which includes, at a minimum: i. the date of the transaction; ii. the name of the supplier; iii. the dollar amount of the transaction; and iv. description of the item(s) purchased. 4.0 Procedure Employees who would like to obtain a P-Card must obtain written authorization from their manger/supervisor. The P-Card is Town property. It cannot be transferred to, assigned to, or used by anyone other than the designated Cardholder. Each department will determine and advise the permitted uses, limits, and restrictions of P-Cards issued to their Employees in accordance with the business needs of the department. The P-Card may be used by Employees for Eligible Purchases, supported by original receipts. P-Card users must forward all original receipts to the Finance Department, in accordance with the P-Card Procedure. When a P-Card transaction is assigned to a departmental cost centre, each transaction must be approved by an Approver with the appropriate approval authority or their designate, as outlined in the Town’s Purchasing Policy It is the Cardholder’s and the Approver’s responsibility to ensure that the P-Card has been used for an Eligible Expense and is supported by an original receipt. The Town reserves the right to: i. audit all P-Card expenditures at any time, including after approval of P-Card expenditures, to ensure that all P-Card Cardholders have complied with the P- TOWN OF TILLSONBURG FINANCE DEPARTMENT PURCHASING CARD (P-CARD) PROCEDURES Page 3 / 5 PURCHASING CARD (P-CARD) PROCEDURES Card Policy, the P-Card Procedure, all other applicable Town policies and procedures; ii. require the Cardholder to reimburse personally the Town for any Ineligible Purchases, regardless of whether the Approver previously approved the transaction as an Eligible Purchase; iii. assign reimbursement for Ineligible Purchases made by the Cardholder against payments otherwise due and owing to the Cardholder by the Town; and/or iv. revoke the Cardholder’s P-Card and privileges at any time. 5.0 Roles and Responsibilities Responsibility of the Finance Department: The Finance Department shall: i. review P-Card applications from Employees for eligibility and completeness; ii. submit approved P-Card requests to provider; iii. provide sessions so that Cardholders are trained and aware of applicable policies and procedures; iv. maintain a permanent file of Cardholder applications and related information; v. assist in the resolution of problems involving Cardholders, suppliers and/or the P- Card issuing company; vi. delete original receipts after ninety (90) days; vii. review monthly billing statements, reconciliations, compliance and exception reports, and management reports for unusual activity; viii. notify the appropriate department head or manager of issues; and ix. undertake expense report compliance review programs. x. keep P-Cards in a safe and secure place when not in use for an extended period of time xi. send regular communication to Cardholders with outstanding P-Card transactions that their card transactions are to be cleared. a. If outstanding P-Card transactions are not cleared after fifteen (15) days, the P-Card may be suspended at the discretion of the Town; Responsibility of Treasurer: i. the Treasurer is responsible for the interpretation and administration of the P-Card Policy and Procedure. Cardholder Responsibilities Cardholders: i. shall not permit anyone else to use the P-Card. No other Town staff, family member or any other individual is authorized to use the P-Card. ii. Shall keep the P-Card in a secure place; iii. may use the P-Card for Eligible Purchases by telephone and online. Cardholders must apply the same high degree of care that they would use to protect their personal credit card security in making online or telephone Eligible Purchases using their P-Card. TOWN OF TILLSONBURG FINANCE DEPARTMENT PURCHASING CARD (P-CARD) PROCEDURES Page 4 / 5 PURCHASING CARD (P-CARD) PROCEDURES iv. Shall immediately report a lost or stolen P-Card to both TD/US Bank and the Purchasing Card Administrator; v. may use their P-Card for Eligible Purchases up to their P-Card limit (per transaction, with a maximum monthly credit limit per P-Card), or such lower amount as required by the Approver. This amount includes all taxes and shipping costs. These limits are set by the Purchase Card Administrator. Exceptions will be considered and approved, on a case by case basis, by the Finance Department. vi. shall exercise honesty, good faith, and common sense when using their P-Card. a. If the Cardholder has any doubt as to whether a proposed purchase is an Eligible Purchase, the Cardholder must take direction from Finance Department. b. If the P-Card is used inadvertently for an Ineligible Expense the Cardholder must contact the P-Card Administrator for direction c. Cardholders must ensure that the cost of each Eligible Purchase is reasonable. Cardholders must make every reasonable effort to purchase the lowest cost good or service available to fulfill the business requirement. d. Cardholders shall not split transactions to circumvent the P-Card spending limits. vii. shall review all Visa P-Card transactions through Access Online by on a timely bases (within 15 days or the first working day of the following month; whichever is sooner) of the P-Card transaction; viii. shall obtain and retain original Supplier Documentation for all P-Card purchases made in person, by telephone, or online. For clarity, supplier documentation, for purposes of this Policy, does not include receipts; ix. shall submit all original receipts to the Finance Department, failing which the Town may suspend the Cardholder’s P-Card privileges; x. shall complete and submit a Supplementary Receipt Form, and include it with the monthly submission, if the supplier documentation does not include the date of the transaction, the name of the supplier, the dollar amount of the transaction, and a description of the items purchased; xi. shall not approve their own transactions xii. shall advise the Purchasing Card Administrator of a change in Town position or department; xiii. shall return the P-Card to the Purchasing Card Administrator, Human Resources or departmental supervisor if the Cardholder terminates or resigns from the Town; Approver’s Responsibilities Approvers shall: i. ensure the Cardholder’s purchases are Eligible Purchases and are charged to the correct cost centre; ii. not approve their own transactions; and iii. not request an employee to incur an expense on their behalf or an expense that includes them (e.g. meal at a restaurant). iv. immediately report a lost or stolen P-Card to both TD/US Bank and the Purchasing Card Administrator; TOWN OF TILLSONBURG FINANCE DEPARTMENT PURCHASING CARD (P-CARD) PROCEDURES Page 5 / 5 PURCHASING CARD (P-CARD) PROCEDURES v. inform the Purchasing Card Administrator of a change in a Cardholder’s department or position, long term disability, leave of absence, sabbatical, or depletion of budget/funds for themselves or any Cardholders reporting to the Approver; a. If the Cardholder leaves the Town before reviewing the outstanding P- Card transactions, the approver must assign a designate to who is responsible for submitting the original receipts (or supplemental receipt form) to the Finance Department. vi. request the cancellation of P-Cards for Cardholders who cease to be employed by the Town or who otherwise become ineligible for a P-Card; vii. fully cooperate with all P-Card related inquiries, and compliance reviews. Responsibility of Director, Department Head or designate Director, Department Heads or designates are responsible for: i. approving the issuance of P-Cards to Cardholders; ii. authorizing transaction limits equal or less than the limits for single purchases and the monthly credit limit as set by the Town; iii. authorizing Purchasing Card Profiles; and iv. notifying the Finance Department Program Administrator or Treasurer regarding any policy and procedures exceptions when they become aware of them. 6.0 Information and Assistance Any policy or procedure exceptions, when known by the Finance Department, will be brought to the attention of the Cardholder, as well as the Approver, and the Director or CAO at the discretion of Finance Department. Questions and comments regarding the P-Card policy and procedure are to be directed to the Purchasing Card Administrator.