Agenda Introduction Audit findings Audit Recommendations How can we help?
Introduction PCards introduced 1 st May 2003 Significant growth in use Internal audit of April 2008 data Highlights improved communication/training
Audit Findings 13 instances where reconciliation not submitted 9 instances where the cardholders supervisor did not approve the reconciliation 1 instance where the cardholder did not sign the reconciliation 1 instance in which an employee, other than the cardholder, signed the reconciliation 99 instances of insufficient documentation 13 instances in which a transaction was split, circumventing the Universitys procurement policy related to transactions over $5,000.
Other Audit Findings Miscoding to accounts Incorrect taxes Ineligibility or non-compliance of research expenses per Tricouncil
Audit Recommendations Enhancing communication with and training for cardholders and supervisors regarding their responsibilities, including authorization, coding, documentation and reconciliation requirements.
Cardholder Responsibilities Reconcile: Cut-off is 25 th of each month or if the 25 th falls on a weekend, the next business day Reconciliation reports due to Business Office within two weeks
Cardholder Responsibilities Authorization: Only the cardholder may use the card Cardholder must sign reconciliation Cardholders supervisor must sign reconciliation **Research** If a research purchase is made on a card belonging to someone other than PI/authorized delegate, must provide proof of PIs approval/request.
Cardholder Responsibilities Coding: Expenses coded to the correct account Taxes properly recorded **Research** Must be eligible expenses – check with Research Accounting if in doubt – before purchasing!
Cardholder Responsibilities Supporting Documentation: Must be original receipts Email for internet purchases plus Visa Receipt or Invoice Receipts/packing slips for good received **Research** require proof of PI authorization
Audit Recommendations Developing and implementing a monitoring function designed to identify internal control weaknesses, establish action plans to address such weaknesses, and issue violation warnings.
Monitoring Function PCard monitoring function in Accounts Payable Monthly review of activity Research reviewed for eligibility/compliance Violation letters sent via email Subsequent reminders sent via mail, copy to supervisor
Audit Recommendations Ensuring potential split transactions are identified, resolved and warnings issued to cardholders and supervisors for policy violations and employing consequences when appropriate.
Standard Card Limits TransactionMonthly Operating$5,000$20,000 Research$1,000$10,000
Split Transactions Often circumvent Purchasing Policy All reconciliations reviewed for split transactions Occurrences forwarded to Purchasing Manager Communication sent to Cardholder
Audit Recommendations Developing a process by which Purchasing Services is informed of all changes to employment status of faculty and staff that possess a purchasing card.
Cardholder Status HR informs us of some changes in employment status You can also keep us informed of changes in your department (leaves, transfers, acting, CDA)
Audit Recommendations Implementing the appropriate best practices suggested by IAAS for managing and increasing the acceptance and usage of the Universitys procurement card program.
Increasing usage Rogers and other regular bills Conference registration Courier Services Aramark catering Hardware Services Bookstore
How can we help? For limit change requests, please contact Purchasing (and Research for cards linked to Research grants) FAQs on Purchasing website Training Your ideas?
Where to get information Purchasing Services 613-520-3622 Research Accounting 613-520-3631 Accounts Payable 613-520-3627 firstname.lastname@example.org