1 P-Card Panel Vicky Frayne – Purchased Services Specialist Francis Howell School DistrictKim Mulvaney – ControllerSt. Joseph School DistrictDawne Trokey – Accounts Payable/P-Card CoordinatorMeramec Valley R-III School DistrictPatty Bedborough, Executive Director of FinanceNorthwest R-I School District
2 P-Card Details FHSD SJSD VISA through UMB starting in FY 04/05 Approximately 300 cards currently issued2,726, in FY 09/10SJSDVISA through Commerce starting in FY 04/5130 cards currently issued$1,771,000 in FY 09/10
3 P-Card Details MVR3 NWRI VISA through UMB starting in FY 04/05 92 cards currently issued$2,621,000 in FY 09/10NWRIMasterCard through Harris Bank/PFM starting in FY 04/0540 cards currently issued$1,864,000 in FY
4 Reasons for Starting Program Tight controls over who/what/where and HOW much employees can purchaseReduced paperwork resulting in lower cost per transactionSimplifies buying processReduces check volumeOn-Line purchasesRemoved need for petty cash in schoolsHotel/Airfare reservationsVendors that don’t accept district purchase ordersRebates on purchases
5 How Issued/Limits Changed Administrator/Manager requests P-card issuanceCardholder requests monthly credit limit increase with approval from supervisorCredit limits may be permanent or temporary
6 Types of Cards FHSD: Ghost, Petty Cash, Individual SJSD: Department, School & IndividualMVR3: Ghost, Department & IndividualNWRI: Individual only
7 Ghost Accounts FHSD SJSD & NWRI MVR3 No physical card is issued Higher monthly credit limits both individual transaction limit and monthly limits. Ex: Bill paying, Textbooks, Copier lease payments.SJSD & NWRICurrently no ghost accountsMVR3No physical card issuedHigher monthly credit limits due to larger purchases(ex: Technology)
8 Limits & Restrictions FHSD SJSD Most have a $500 transaction limit & $2000 monthly limit.Most MCC code restrictions are the same.Activity Petty Cash have some restrictions lifted to allow for specialized activities (IE Golf private clubs).Airline/gasoline purchases not allowed without authorization.SJSDMonthly/Single transaction limits vary across cardsMCC code restrictions are same across all cards
9 Limits & Restrictions MVR3 NWRI Monthly/Single transaction credit limit is $1000(some exceptions ex: Ghost cards)Can be raised with proper approval and paperworkStrategy restrictions (dollar limit & MCC code restriction)NWRIMonthly/Single transaction limit mostly $1000, but varies for AP BookkeeperMonthly limit is mostly $1000, but varies with usage and approvalCan be raised with approval formNo gasoline or gift cards allowedMCC code restrictions
10 MCC Codes Merchant Category Code Assigned by VISA to each vendor identifying what type of vendor they areP-cards can be set to accept or restrict certain MCC codes.(ex. Gas P-card, restrict access to ATMs/Casinos)MCC codes can be set in different groups and assigned to different cards or groups of cards
11 P-Card Agreement/Handbooks FHSDEach user must read & sign an agreement before receiving their card.Handbook given to all cardholders during 2 hours training session.SJSDEach user and bookkeeper must read and sign an agreement when card is assigned, or employees changeHandbook given to all cardholders/bookkeepers/administrator
12 P-Card Agreement/Handbooks MVR3Each user (individual and department cards alike) has to read and sign an agreement at the beginning of the year before using a card.Handbook given to every new cardholder when training is done.NWRIEach individual has to read agreement packet and sign agreementWhen card arrives the AP bookkeeper reviews the rules and the packet with cardholding including the reporting and receipt details
13 TrainingTraining is done individually when a new user gets a card. Updates/reminders are discussed at the annual secretary meeting.Reminders sent via message postings on VISA siteFHSD: Training is given to all new cardholders before they receive their card. Try to do several at a time and have several during the year.
14 Documentation/Sales Tax Monthly statement with a receipt/invoice showing details of the purchase with a total that matches the statement.Administrator approval is required at this time also.Sales tax is not allowed (except for restaurant/gas/out of state purchases) (FHSD does not allow restaurants.)Vendor must credit back the sales tax or cardholder must personally pay.
15 Specific Transactions FHSDRestaurants-requires itemized receipt and charge receiptNo sales tax allowedGift Cards allowed for student incentives. Form and signature of gift card receipiant is required.If used for personal purchase by mistake, employee provides reimbursement to the district.No Paypal transactions allowed.SJSDRestaurants – itemized receipt requiredSales tax allowedGift Cards allowed if for student incentivesIf used for personal purchase employee must reimburse district and warning given with possible suspension of cardMVR3 (and NWRI)Restaurants - itemized receipt requiredGift Cards - Not allowed – no exceptions
16 Disputes/Returns/Credits Dispute form is filled out and sent to VISA/Mastercard. Never had an issue getting a disputed transaction taken off the card.Individual cardholder is responsible for working with the vendor for a return/credit.Online reconciliation is required for all disputed charges and credits are allocated to correct account numbers.
17 Fraud Fraud does happen but not very often. (FHSD: PayPal is the biggest offender for fraud charges.)VISA and Mastercard do a great job monitoring all cards for fraudulent activity.VISA and Mastercard may suspend a card due to what they see as a fraudulent transaction but as soon as we verify that it is not fraudulent, then the card is reopened and ready for use.If it is fraud then VISA and Mastercard take care of getting that transaction taken off our card AND a new card is issued for our cardholder.
18 Processing Transactions Cardholder is responsible for allocating budget number for their transactions each month.Cardholder must also attach all receipts/invoices to the statement for administrator approval.Statements and all receipts/invoices are sent to the Central Office AP office for review.AP reviews transactions/paperwork/approvalsPayment to VISA is made via ACH.Transaction data is downloaded from VISA into a CSV file that is then uploaded into our software system into a batch for processing.MVR3 - transactions are posted to software at vendor detail level.SJSD - transactions are posted as journal entries with vendor name in description.FHSD – transactions are posted in the financial system as a Visa transaction.
19 End of Year ProcessingInformation is sent to all cardholders with cutoff dates for making payments within this fiscal year. Any payments on VISA made after a certain date may not be posted in this fiscal year. This is their responsibility to make payments on VISA, accordingly.1099 Reporting will be done by VISA nowFHSD: Closes most cards at the end of May and requires paperwork submitted before staff leaves for the summer. Bare minimum of cards are left open for emergency transactions only. All cards are closed for 3 weeks and reopen July 1.
20 P-Card Panel Presenters Vicky Frayne – Purchased Services SpecialistFrancis Howell School DistrictKim Mulvaney – ControllerSt. Joseph School DistrictDawne Trokey – Accounts Payable/P-Card CoordinatorMeramec Valley R-III School DistrictPatty Bedborough – Executive Director of FinanceNorthwest R-I School District