Presentation on theme: "CHA Purchasing Card (PCard) Training for Cardholders and Managers"— Presentation transcript:
1 CHA Purchasing Card (PCard) Training for Cardholders and Managers PCard AdministratorsSteve LamphereKen WidisDid you get your handouts?
2 Presentation Highlights Program OverviewBenefits to the CHABenefits to the SupplierCHA and Personal LiabilityHow Program WorksDocumentationPurchasing Card Policy and ProceduresCardholder ResponsibilitiesProgram Restrictions
3 PCard and the CHASimplifies purchase of non-restricted products and servicesReduces administrative time and effort related to purchase of authorized commoditiesReduces administrative cost associated with processing purchase orders, invoices and checksEffective procurement tool for emergency requirementsCompliments CHA buys, electronic purchasing systems and the online private marketplace
4 Point-of-Sale Controls Purchase Card transactions per dayPurchase Card transactions per monthSingle purchase limit up to (Max) of $2, (includes all transaction related shipping, delivery or handling charges)Monthly spending limit of up to (Avg)$5,000.00Monthly spending limit can be increased based on need and A0 approvalCyclesSpendingStatement
5 PCard Vocabulary Cardholder - Person whose name is on the card Approving Official - Cardholder’s immediate supervisorMBNA - The bank that provides the cardProgram Administrator – Overall Program responsibility
6 PCards Streamline the Purchasing and Payment Process Steps in a Purchase Order TransactionSteps in a Purchasing Card TransactionBenchmark StatisticsCHA PO & P-Card Statistics
7 The Steps in the Purchasing Card Process End user enters PO into YARDIALL Purchases must be Approved Prior to PCard UseVendor paid immediatelyVendor delivers item directly to departmentPCard Holder receives invoice for every purchase
8 Why Use Anything BUT Purchasing Cards? “Why some items aren’t allowed on the card.”
9 Repairs, alterations and maintenance Contracts ServicesRepairs, alterations andmaintenanceNeed to manage risk—insurance requirementsContractsRecommended for all servicesRequired for all personal services
10 Information Technology Delegated AuthorityOnly IT is authorized to approve Hardware / Software purchasesCompatibility issues…………Some software OK if approved in advance via other documentation
12 Miscellaneous Payments to individuals, employees or residents Items to be installedFines, late fees, penalties, interest, finance chargesSome Vendors do not accept Charge Cards
13 Approving Official Responsibilities Ultimately responsible for appropriate card use.Approves the appropriate level of spending authority for the cardholder.Approves the cardholder’s purchasing card application and agreement.Approves the cardholder’s initial per-transaction and monthly transaction limits, and any temporary or permanent increases to those limits.
14 Cardholder Responsibilities Directly responsible for appropriate card use.Keeps the purchasing card in a safe and secure location.Makes allowable and appropriate purchases.Receives and inspects orders.Arranges for returns and credits when necessary.
15 Cardholder Responsibilities Reviews transactions onlineGathers and assembles all supporting documentationReports immediately a lost or stolen card or any unusual card activitySurrenders the card upon termination of employment or upon request by the AO or PA
16 Procedures for Using the Card ResourcesPlacing OrdersReceiving & Inspecting OrdersReviewing Transactions OnlineAvoiding FraudPreparing for Review
17 Resources: CHA Purchasing Card Handbook Web SiteApproved Contractor ListCHA Policies & ProceduresReview procedures
18 Procedures: When Making A Purchase Save ALL receiptsMake a screen-print when ordering on-lineKeep completed order-form when faxing ordersDuring travel, save meeting/conference agendas, hotel folios, and rental car agreements
19 PCard as a Travel Card:Only the traveler’s PCard may be used for his/her expensesAirline tickets for employees MUST be on a PCardDo NOT use for personal charges on hotel billDo NOT use to buy fuel for privately owned vehicles
20 Before Traveling Review the current CHA Travel Policy Review the per diem allowance for your destinationContact the Procurement Office at least 3 working days prior to travel if your limit needs to be adjusted
21 During Travel: Save all receipts Save meeting /conference agenda Obtain itemized hotel billSave rental car agreement
22 Returning from Travel Collect all receipts Update the PCard transaction in YARDICollect and Attach all receipts to monthly PCard statement for reconciliation
23 Return, Receive, Inspect & Document Receipt of Order Work out any problems with the vendorReturn to vendor — MUST be a credit to the PCard (No Cash Back)Obtain itemized receiptVendor name, address and phoneDate of purchaseDescription of each item purchasedPer-item cost, if available from vendor
24 Receipt Tips In Person: Keep itemized receipt Phone: Tell vendor to mail or fax receiptFax: Keep copy of order form & attach packing slipInternet: Screen print the completed form & attach packing slip
25 Procedures: Lost/ Missing Receipts Try to get a receipt from the vendorAttach packing slip if availableAttach copy of order formAttach a piece of product packagingAttach Affidavit of Lost Receipt FormLink to form available on Purchasing web site
26 Disputed Charges Contact the vendor and attempt resolution first. Contact MBNA within 30 daysComplete and submit “Dispute form”
27 What if the card is lost or stolen? 7 x 24 hours availabilityCard holder should notify MBNA immediately.Notify your agencyProgram Administrator.
28 What happens if I break the rules….. Suspension of PCardPrivilegesForced to attend RetrainingPermanent Loss of PCard PrivilegesTermination andProsecution possible insome cases
29 Misuse of Purchasing Card Personal misuse:Personal purchasesPurchase of restricted commodities or from restricted suppliersSplitting of purchase or service cost over multiple card transactions in order to circumvent the authorized transaction limitAdministrative misuse:Failure to obtain and submit supporting documentation for all card transactionsLack of timely and proper reconciliation of monthly statementsUse of the card by anyone other than the authorized cardholderRisks:Warning letter / verbal from Program AdministratorSuspension of card privilegesEmployee termination
30 PCard Card Misuse & Abuse IT’S NOT PERSONAL, IT’S BUSINESSCardholder SuspensionCardholder RetrainingFraudulent use of the Purchasing credit card will result in actions being taken in accordance with the procedures established in the Cardholder Agreement form.
31 Summary Use your card judiciously with common sense. Follow the program rules.Reallocate your charges in a timely manner.Keep accurate records.Communicate with your Approving Official or the Procurement Dept on any problems you might have.