Objective Understand what a ProCard approvers responsibilities entail. Learn to use Pathway, cardholder statements and receipts to ensure accurate transaction documentation.
Awareness Ignorance of the law excuses no one Cardholders and Approvers who accept and use the ProCard are responsible for knowing and upholding policy.
Here at DePaul 835 Active Cardholders 200 Approving Officials In 2013 –72,000 Transactions, $17.6 million –360 transactions or $88,000 per AO –$245 = average transaction (up from $203) –$321,000 not approved on time –37% spent from April - June
Responsibility of Approver Determine department’s need of card(s). Ensure cardholders are compliant with university policies. Review submitted transactions to ensure proper documentation, appropriateness of business expenses and proper chartfield allocation. Reject transactions that do not meet requirements and conduct timely follow-up with cardholder.
Responsibility of Approver Have a clear understanding of why each purchase was made and who authorized the purchase. Ask Questions! Report any suspected fraud to Procurement Services and Internal Audit.
Establishing a Review Process Managers are the university’s first level of defense. Determine realistic monthly review processes as well as departmental policy for storing receipts. Perform random checks outside of regular statement approval timeline. –The threat of a future investigation reduces the occurrence of fraudulent behavior from 75% to only 43%.
Accessing the Data Printed & Submitted monthly cardholder statement PaymentNet transaction query tool Other reports & data in PaymentNet Vendor Receipts
Levels of Data Level 1 Transaction date, Dollar amount Vendor name, location, category Level 2 Purchase ID, sales tax amount Merchant Alias Level 3 Item description, unit cost, quantity Passenger name, location and dates of travel
Using the Data Compare data provided by the vendor with information and documents provided by the cardholder. Line item detail (Level 3) from Pathway, if available, should match original, itemized receipt. Travel dates and passenger names should match dates of conference and attendees identified in cardholder notations.
Reviewing Backup Documentation Determine acceptable forms of backup. Know what you’re looking at. Compare documentation/receipts with other expenses from the same vendor.
Is this a receipt?
Reviewing Backup Documentation Receipts confirm payment has been made and the transaction is complete. –They include dates, amount, purchase method, tax amount, shipping amount Receipts do not include: –Buttons or icons labeled “Submit to order”, “Checkout”, or “Update Shopping Cart”. –Estimated tax –Estimated shipping
Additional Areas of Concern Transactions reported as fraud/disputed –Follow up to see that credit was received –If transaction is fraud, the card should be cancelled immediately Meals and Entertainment Travel (Hotels, Airfare & Lodging) Spending Restrictions –Grants – Alcohol, International Airfare 3rd Party Reimbursements –Items paid upfront by DePaul but to be reimbursed by a 3 rd party (conference dues, meals, etc.)
Meals & Entertainment Review Checklist: –Compare last 4 digits of credit card number on receipt to employee’s credit card number(s). –Check where the receipt was issued, e.g. “Bar,” “Patio Bar,” “Room Service,” etc. –Review the time that receipt was generated and compare to the meal being submitted (Saturday at 9:34 p.m. and identified as lunch?). –Check receipt to see if number in party is identified and compare to list of attendees. –Compare the expenses, receipts, and times for other employees in attendance.
Meals & Entertainment Review Checklist (cont.) –Compare the meal location and time to the employee’s itinerary and schedule. –Does the meal fall on the day of departure or return? –Is the signature authorization receipt the only documentation submitted or is an itemized receipt also available? –Does the receipt include items or charges other than food/drink (e.g. purchase of restaurant gift card along with the meal for personal use at a later time.)? –In addition to the business purpose, are the names, titles, and affiliations to DePaul documented for all attendees?
Travel Review Checklist: –Does the traveling employee name match the passenger name provided by the level 3 detail? –Do the dates of travel match the dates of conference and/or hotel stay? –Is an itinerary the only documentation provided by the cardholder or is a boarding pass also included? –Was this trip preapproved or is there evidence of a clear, legitimate business purpose? –Does this employee regularly purchase airfare or have a history of canceled trips?
Hotel and Lodging Review Checklist: –Are original receipts made available for all expenses? –Are all pages of the hotel invoice present? –Is the itinerary the only supporting piece of documentation? –Check for the number of occupants on the receipt and compare check-in and check-out dates with dates of travel. –Were personal expenses billed to the room?
Other Review Tips Never too busy to avoid accountability. Get to know the cardholder and understand their role to determine regular spending habits. Check to see if the cardholder has also submitted expense reimbursements. Hold all cardholders to the same standards.
Who to Call if Fraud is Suspected? Procurement Services –(312) Internal Audit –(312) Misconduct Reporting Hotline –(877) JPMorganChase –(800)