Presentation on theme: "Bloomfield School District PURCHASING CARD PROGRAM"— Presentation transcript:
1 Bloomfield School District PURCHASING CARD PROGRAM Policies and Procedures (Cardholder Manual) EffectiveSeptember 1, 2004Revised August 1, 2011
2 IntroductionThe Purchasing Card is a Visa credit tool issued by Bank of America. It is a fast, flexible new purchasing tool which offers an alternative to the existing purchaser order process(es). and provides an extremely efficient and effective method for purchasing and paying for small dollar itemsThe card is to be used only for official purchases; in compliance with the NM Administrative CodeThe Purchasing Card will enable you to purchase non-restricted commodities, by telephone or in person, directly from the vendorsThe Purchasing cards are NOT intended to circumvent the appropriate purchasing, approval or payment processThe Purchasing Card will either be issued in the employee’s name and “Bloomfield Schools” clearly indicated on the card or issued to a District employee on an as needed basis, so long as a valid purchase order is in place with requisite approvals
3 Benefits of the Purchasing Card The Purchasing Card program brings many benefits to:CardholdersYou will be able to obtain supplies directly from your vendorsYou will be required to use a purchase order for all Purchasing Card transactionsBloomfield Schools - The Purchasing Card program provides an cost-efficient, alternative method for purchasing supplies while maintaining good internal controls within the District.VendorsThe Purchasing Card will be welcomed by vendors who accept VISAWhen they accept the card for business purchases, vendors do not need to send invoices to Bloomfield Schools, and they will receive payment directly from Bank of America within 48 hours
4 PARTIES INVOLVED Card Issuer – Bloomfield School District – Bank of America’s issues Visa Purchasing Cards to Bloomfield Schools employeesBilling the Bloomfield Schools for all purchases made on the cards Bloomfield School District –Arranges with Bank of America to have Purchasing Cards issued to approved employeesAgrees to accept liability for the employees’ use of the cards Purchasing Card Administrator –The central Administrator located in Bloomfield Schools Business Office who coordinates the Purchasing Card program Cardholder –An employee of Bloomfield SchoolsApproved by his/her supervisor and by either the Accounts Payable Clerk, Operations Manager or Finance and Operations Director to use the Purchasing Card Vendor –The merchant from whom a Cardholder is making a purchase
5 Cardholder Eligibility Applicant must be an employee of Bloomfield SchoolsApplicant’s request for a Purchasing Cardmust be approved by his/her supervisorand either the Accounts Payable Clerk, Operations Manager or Finance and Operations DirectorEmployee must attend a training session before he/she may be issued a Purchasing Card
6 Cardholder Eligibility – Continued Each individual Cardholder must signCardholder AgreementAuthorization to Collect for Unauthorized Expenditure FormWith the Purchasing Card Administrator presentAuthorization to Collect for Unauthorized Expenditure Form - The form must be notarized
7 CARDHOLDER RESPONSIBILITIES Use the card for legitimate business purposes onlyKeep the Card in a secure location at all timesNot allow other individuals to use their Purchasing CardPrior to making any Purchasing Card transactions/purchases, obtain a properly authorized purchase order for any and all Purchasing Card transactionsThe purchase order must be detailed and contain sufficient information to make a determination about the need for the purchaseVague or blanket purchase orders are not acceptable and will not be approvedAdhere to the purchase limits and restrictions of the Purchasing CardObtain and reconcile all itemized sales slipsPurchasers who cannot produce original receipts may be liable for charges incurred
8 CARDHOLDER RESPONSIBILITIES - Continued For Local Store PurchasesReceipts must be signed by an employee other than the purchaser who verified that the items were received by the District.Attempt to resolve disputes or billing errors directly with the vendorEnsure that an appropriate credit for the reported disputed item or billing error appears on a subsequent Cardholder statement.Not accept cash in lieu of a credit to the Purchasing Card account.Immediately report a lost or stolen card to Bank of AmericaImmediately notify the Business Office of a lost or stolen Purchasing Card - during normal business hoursReturn the Purchasing Card to the Business Office upon terminating employment or transferring DepartmentsReport erroneous transactions to the Business Office during normal business hours
9 PURCHASING CARD ADMINISTRATOR RESPONSIBILITIES Act as liaison with Bank of AmericaReview Department approved applications for completenessSubmit completed application to Bank of AmericaReceive Purchasing Card from Bank of AmericaTrain Cardholder before releasing Purchasing CardAssure all necessary forms are signed and/or notarizedHandle disputed charges/discrepancies not resolved by Cardholder
10 PURCHASING CARD ADMINISTRATOR RESPONSIBILITIES - Continued Collect revoked Purchasing CardsReceive and review monthly billDistributing monthly reports to CardholdersReconcile Bank of America’s bill to Bank of America’s electronic file and to the transaction totals posted to the Bloomfield Schools accounting systemReview usage of Purchasing Card data for appropriatenessEnsure that lost stolen cards have been blocked by Bank of AmericaForward vendor set up requests to Bank of America
11 Requirements for Receiving a Purchasing Card Before receiving a Purchasing Card, you are required to:Complete the Credit Card use trainingSign Bloomfield Schools Purchasing Card Cardholder Agreement (Attachment 1)Sign the Authorization to Collect for Unauthorized Expenditure Form (Attachment 2) must be notarizedBy signing these agreements, you indicate that you understand the intent of the program,You will comply with all guidelines of this ManualAnd you will adhere to District Policies and Procedures relating to the expenditure of district funds
12 Requirements for Receiving a Purchasing Card - Continued For persons checking out a Purchasing Card – because a card is not issued to them personally:Applicant must fill out the Request for Credit Card formReturn it to the budget manager’s secretaryThe secretary uses the Credit Card Request information to generate a Purchase RequisitionSubmit all forms to the Business Office two business days prior to date neededThe Business Office generates a Purchase OrderThe credit card will be activated and ready for the applicant to pick up after …All documents have been verified and training requirements are metReturn the Credit Card and itemized receipts to the Business Office within 24 hours of final use
13 Acceptable Purchasing Card Purchases Examples of purchases that are appropriate for the purchasing card:In and out of state travel, conference expenses, mealsNote: All meal charges MUST be accompanied by an itemized and detailed receipt from the food establishment or the charge WILL NOT be paid by Bloomfield SchoolsApproved supplies for your building, department or programConference and seminar registrationsCraft suppliesBooks and items from book stores
14 Acceptable Purchasing Card Purchases - Continued Instructional games and toysFederal Express, United Parcel Service, United States Postal Services expensesOther miscellaneous items that apply to your budgetHardware storesDiscount storesGift certificates or gift cards –Note: all gift cards/certificates must be accounted for – please have recipients/students sign for receipt of gift card or certificateThis list is not intended to be all inclusive. If you have specific questions, please call the Business Office Manager for assistance
15 Unacceptable Purchasing Card Purchases The following items are examples of purchases that are inappropriate for the purchasing card:Alcoholic beveragesTobaccoLottery TicketsCash AdvancesATM withdrawalsAny personal purposeThe purchasing card cannot be used to pay consultantsThis list is not intended to be all inclusive. If you have specific questions, please call the Business Office for assistance.
16 Purchasing Card Closure The Purchasing Card Administrator is required to close an account if a Cardholder:(a) transfers to a different department(b) moves to a new job in which a Purchasing Card is not required(c) terminates employment or(d) for any of the following reasons which will also subject Cardholder to disciplinary action in accordance with Bloomfield Schools Policies and Procedures relating to disciplinary action and termination for cause:The Purchasing Card is used for personal or unauthorized purposesThe Purchasing Card is used to purchase alcoholic beverages or any substance, material, or service which violates policy, law or regulationThe Cardholder allows the card to be used by another individualThe Cardholder splits a purchase to circumvent the limitations of the Purchasing Card
17 Purchasing Card Closure - Continued The Cardholder uses another Cardholder’s card to circumvent the purchase limit assigned to either Cardholder or the limitations of the Purchasing CardThe Cardholder fails to provide the Business Office with required receiptsThe Cardholder fails to provide, when requested, information about any specific purchaseThe Cardholder does not adhere to all of the Purchasing Card policies and proceduresThe Cardholder makes a purchase without a valid purchase orderA request for closing a Cardholder account will be submitted to Bank of America by the Purchasing Card AdministratorIf a plastic card exists for the Purchasing Card account being closed, you should return it to the Business Office immediately.
18 Cardholder LiabilityThe Purchasing Card is a corporate charge card and will not affect your personal creditIt is your responsibility to ensure that the card is used within stated guidelines of this ManualFailure to comply with program guidelines may result in:Permanent revocation of the cardNotification of the situation to management – andDisciplinary action in accordance with District Policies And Procedures relating to disciplinary action and termination for cause – andRecoupment of any costs associated with unauthorized purchases by the cardholder
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