Procurement Card Programs

The Procurement Card (P-Card) What is it? A Credit Card which empowers individual employees to make purchases for their Campus/Department in an efficient manner.

Why have them? Simplified buying process Saves times by eliminating Purchase Orders and Accounts Payable invoices Speeds up payments to your vendors Can be used to generate revenue for your District

How to start a program Piggy-Back on a Cooperative Contract Texas Comptroller of Public Accounts Fort Worth ISD or other entities Publish a RFP Board Approval

Procurement Card Models Individual Card Holders Temporary Use

Individual Card Holder Model 1 2 3 4 5 Approved Vendor List Card Holder Reconciles

Card Check-Out Model 1 Teacher Card Custodian Principal Purchase Card Administrator Merchant Creates Purchase Request If Approved, Card Custodian issues card to Teacher Purchase Made from Approved Vendor Goods Received Returns Card and Receipt to Card Custodian Custodian Reconciles Transactions and forwards to Principal for Approval – on a monthly basis Sends Reconciliation Package to Purchase Card Administrator 2 4 5 6 7 Purchase Approved 3

How P-Cards are being used Walk-In Purchases Wal-mart, Target, Grocery Stores, etc. On-Line Purchases Travel Cards Eliminates the use of employee personal funds Cash Cards Reduces the need for pre-pay checks Accounts Payable Cards Reduces the amount of checks processed

Card Setup Cardholder Request Form Appropriate Management signatures Online Card Setup through the Bank’s System Budget Encumbered (Separate Object Codes) Declining Balance Card Credit limit of the card = Budget Encumbered Bank System should not allow more to be spent Single Transaction/Daily Spend Limits

Training and Documentation Training is required before card issuance Cardholder and Approver must attend Program specifics discussed in detail “How-to” Presentation Tax-Exempt Form provided in Training Purchase Card Manual Approved Vendor Lists Violations Policy

Controls Specific Vendor List 100% Receipt Retention Required Ensures Bid Law Compliance Merchant Category Code (MCC) Restriction 100% Receipt Retention Required Monthly Audits Monthly Reconciliation Required Must completed online transaction verification Signatures required on printed report 10 Business days to complete

Controls Program Manager Internal Audit Support Enforce Violations “School Bus” Yellow Card Single Transaction Limit Daily Spend Limits Declining Balance Required Training

Questions & Answers

Controls within Round Rock ISD Separation of Duties Ownership of the overall process split between the Purchasing Office and the Finance Department Purchasing Office New / replacement card requests Signature on the Cardholder User’s Guide Changes / limit adjustments Finance Department Ownership of the card company contract Receipt of new cards ordered by the Purchasing Office Reconciliation of Statements

Controls within Round Rock ISD Cardholder Responsibilities and Requirements Each card is provided with the individual’s name imprinted on the card Card holder must sign the Cardholder’s User’s Guide at time of receipt Must follow all purchasing guidelines Provide proper documentation (e.g. receipts) for all purchases Provide immediate notice to the Purchasing Office if fraud is found or the card is lost

Controls within Round Rock ISD Classifications Allows for much faster / efficient operations for change requests Currently 50 classifications based on Administrative (“A”) or Curriculum (“C”) Includes: Monthly credit limit based on position ranging from $250 to $35,000 per month A code on if the card can be increased and when if allowed (yes, no, or emergency)

Controls within Round Rock ISD Classifications Examples: Director (level 1) A061CN Limit of $1,000 month No increases allowed Technician (maintenance) A140CN Exec. Assistant (Level 2) A161FY Limit of $7,500 month Increases as requested Principal C010DE Limit of $2,500 month Emergency increases Admin. Associate C040FY Increase during specific periods

Questions & Answers RRISD Web Site: https://www.roundrockisd.org/Modules/ShowDocument.aspx?documentid=20591