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HomeMy WebLinkAboutPR 651 FIN - Purchase Cards PROCEDURE PR.651.FIN TITLE: PURCHASE CARDS Date issued: June 2009 Last revised: Authorization: Senior Staff: 10 March 2009 1.0 OBJECTIVE To provide procedures for use of purchase cards as a procurement tool for low dollar value board purchases within specific limits. 2.0 DEFINITIONS In this procedure, 2.1 Purchase Card means a credit card issued to authorized employees for the purchase of low value goods and services. 3.0 RESPONSIBILITY 3.1 The Chief Financial Officer is responsible for issuing and implementing procedures related to purchase cards. a) The Chief Financial Officer or designate will establish limitations on the purchase cards to individual cardholders, such as, setting transaction limits, limiting merchant types where the card can be used, within the existing limits of the Signing Authority policy and procedure. b) The Chief Financial Officer or designate will be the ultimate authority on the approval of the purchase card limits and issuances. 3.2 The Cardholder is responsible for: a) adhering to rules and regulations imposed by the Board and Scotiabank; b) signing the Purchasing Card Cardholder Agreement Form 651.001; c) obtaining detailed receipts for all transactions and submitting monthly VISA statements to the immediate supervisor for approval; d) returning the purchasing card to the Purchasing Card Coordinator for cancellation, as appropriate; e) immediately notifying Scotiabank and the Purchasing Card Coordinator of any loss or theft of the purchasing card; -2- PR.651.FIN f) ensuring that sufficient funds are available in the budget (ASN) before using the card. 3.3 The following responsibilities may be delegated as required: a) ensuring that the purchasing card, all transaction receipts, and other documents bearing the purchasing card number are kept in a secure location with controlled access for transaction editing and auditing purposes; b) editing all transactions on Scotiabank's web site at pwnet.procard.com/ocdsb in a timely manner; c) resolving "disputed charges" directly with Scotiabank; d) resolving other non-disputed merchant issues directly with the merchant and, if necessary, with the assistance of the Purchasing Card Coordinator. 3.4 The Immediate Supervisor is responsible for: a) identifying the employee(s) who will be authorized to make low-dollar-value purchases through the use of purchasing cards; b) approving all monthly purchasing card transactions and forwarding signed statements to Financial Reporting; c) specifying the types of merchants that the purchasing card can or cannot be used at (if desired); d) specifying the specific merchants that the purchasing card can or cannot be used at (if desired); e) preparing and submitting the appropriate forms to the Purchasing Card Coordinator for the issuance or cancellation of cards, increases or decreases to credit limits, changes of address or changes in department or area of responsibility. 3.5 The Purchasing Card Coordinator is responsible for: a) providing coordination with respect to monitoring the overall utilization of purchasing cards within the Board; b) responding to questions from cardholders, staff, and merchants on any aspect of the purchasing card program; c) ensuring that the conduct of all purchasing card activity is done in accordance with the Purchasing Card Rules and Regulations and approved policies and procedures; d) being the sole Board contact with Scotiabank purchasing card representatives regarding purchasing card issuances, changes or cancellations; e) processing bank forms with respect to purchasing card issuances and cancellation, increases or decreases to purchasing card limits, changes of address and changes of departments or areas of responsibilities, as requested by immediate supervisor; -3- PR.651.FIN f) cardholder and management training; g) assisting cardholders with returns, credits, unsatisfactory goods etc., if requested by the cardholder and provided that the situation cannot firstly be resolved between the cardholder and the merchant. 4.0 PROCEDURES Overview of Process 4.1 Each card shall be issued in the name of the specified individual and shall not be used by other staff. Cardholders shall retain receipts for all transactions. 4.2 The Financial Services Department shall receive one monthly corporate invoice for all transactions for the previous month’s billing period. 4.3 Cardholders or their delegates shall edit their transactions in accordance with the subsection on Transaction Editing. Receipts shall be filed by the cardholder for auditing purposes. Cardholder statements shall be approved by the immediate supervisor before being forwarded to financial reporting. 4.4 The Financial Services Department shall pay the monthly corporate invoice with one payment on a specific date each month. Each cardholder’s cost centre will be charged with the monthly transactions charged to the card in accordance with the subsection on Transaction Editing. Card Issuance 4.5 To obtain a purchasing card, a Purchasing Card Application Form 651.001 (see Appendix 1) shall be authorized by the immediate supervisor and forwarded to the Purchasing Card Coordinator. Purchasing cards are typically received in the Financial Services Department within 7-10 business days after the Purchasing Card Coordinator has received the completed application form. Employees shall sign a Purchasing Card Cardholder Agreement Form 651.002 (see Appendix 2) prior to receiving their purchasing card. Ordering and Receiving Goods and Services 4.6 Orders for goods and services can be placed by telephone, facsimile, online or in person. Cardholders shall obtain a receipt showing: a) the name of the merchant; b) the date of the transaction; c) a description of the goods purchased; d) the total amount paid; e) the taxes paid; f) the merchant's GST registration number (if applicable). 4.7 Cardholders shall retain all receipts in a secure location as further described in the subsection Transaction Editing unless other arrangements have been agreed to by both the cardholder and the Financial Services Department. -4- PR.651.FIN Transaction Editing 4.8 Details of each purchasing card transaction can normally be found on Scotiabank’s web site at pwnet.procard.com/ocdsb within 48 hours of the actual purchase being made, depending on how quickly the merchant processes th e transaction. First time users shall contact the Purchasing Card Coordinator for their user name and password. 4.9 The cardholder or their delegate shall locate transaction information on Scotiabank’s web site, review the transactions they have made, and assign the appropriate ASN in the field provided. This process known as “transaction editing” shall be done daily or as often as the cardholder wishes. Transaction editing shall be done no later than the 22nd day of the month for the latest billing period. Billing periods run from the 16th day of one month to the 15th day of the following month. Any transaction that is not edited by the 22nd day of the month will be charged to the previously established default ASN. 4.10 Monthly statements are mailed to each cardholder on or about the 3rd week of the month for the period ending the 15th day of the month. As a final step in the "transaction editing", cardholders or their delegates shall attach all receipts to the monthly statement and file them in a secure location for auditing purposes unless other arrangements have been agreed to by the cardholder and the Financial Services Department. 4.11 It is possible that all of the purchasing card transactions for a given period may not appear on the Transaction Editing Screen of Scotiabank’s web site due to timing issues with the date of purchase and the cut-off date for the billing period. In these cases, the record should be noted and carried forward to the next billing period’s Transaction Editing process. 4.12 Please note that due to an arrangement between Visa and its merchants, merchants are not entitled to process transactions until the goods are actually shipped. Disputed Charges and Returns 4.13 "Disputed charges" are purchases that do not accurately reflect the transactions ma de by the cardholder (ie. invalid charges, mathematical errors, multiple postings, etc.). The cardholder shall report these disputes directly to Scotiabank by calling 1 -888-823-9657 and inform the Purchasing Card Coordinator. 4.14 Problems with merchants relating to unsatisfactory goods, late deliveries, changes from quoted prices, etc. are not considered "disputed charges" and must be settled directly with the merchant by the cardholder. If a situation cannot be resolved, please contact the Purchasing Card Coordinator for assistance. All credits must be processed against the purchasing card. Under no circumstances are cash refunds permitted. Cancellation of Cards 4.15 The cardholder shall immediately return the purchasing card to the immediate supervisor when: a) specifically requested to return the purchasing card by the immediate supervisor or the Purchasing Card Coordinator; b) upon termination of employment with the Board. -5- PR.651.FIN 4.16 The immediate Supervisor shall then complete Section 3 of the Cardholder Change/Cancellation Form 651.003 (see Appendix 3) and forward it to the Purchasing Card Coordinator along with the returned purchasing card. Lost or Stolen Cards 4.17 The cardholder shall immediately notify their immediate supervisor, the Purchasing Card Coordinator and Scotiabank at 1-888-823-9657 of any loss or theft of the purchasing card. Reports of loss or theft can be made 24 hours per day. The immediate supervisor shall then complete the appropriate area of the Cardholder Change/Cancellation Form and send it to the Purchasing Card Coordinator. If the purchasing card is stolen, a police report and an OCDSB Loss and Theft Incident Report shall be obtained and forwarded to the Purchasing Card Coordinator. 4.18 If the purchasing card should eventually be found, the cardholder shall return the card to the Purchasing Card Coordinator through the immediate supervisor using Section 3 of the Cardholder Change/Cancellation Form. Change of Address, Department or Area of Responsibility 4.19 To change the cardholder’s address, department or area of responsibility, the immediate supervisor shall complete Section 1 of the Cardholder Change/Cancellation Form and forward it to the Purchasing Card Coordinator. Modification of Card Limits 4.20 To modify a cardholder’s purchasing card limit, the immediate supervisor shall complete Section 2 of the Cardholder Change/Cancellation Form and forward it to the Purchasing Card Coordinator who will then obtain authorization by the Chief Financial Off icer. Modifications to purchasing card limits typically take twenty-four (24) hours to process. The Purchasing Card Coordinator can arrange for the modifications to occur immediately in an emergency situation. Merchants 4.21 The Purchasing Card can be used with any merchant that accepts Visa. Purchasing Services should be advised whenever a merchant does not accept Visa. 5.0 APPENDICES OCDSB FORM 651.001: Purchasing Card Application Form OCDSB FORM 651.002: Purchasing Card Cardholder Agreement OCDSB FORM 651.003: Cardholder Change/Cancellation Form 6.0 REFERENCE DOCUMENTS Board Policy P.007.FIN: Signing Authority and Spending Controls Board Policy P.039.FIN: Travel, Meal, and Kilometrage Claims Board Policy P.069.FIN: Tendering, Purchasing and Acquisition of Supplies a nd Services Board Policy P.116.FIN: Purchasing Cards Board Procedure PR.502.FIN: Spending Authorization and Controls Board Procedure PR.529.FIN: Travel, Meal, and Kilometrage Claims Board Procedure PR.651.FIN: Purchase Cards Procedure OCDSB FORM 651.001 (March 2009) Appendix 1 of PR.651.FIN PURCHASING CARD APPLICATION FORM Immediate supervisors are required to complete a separate form for each employee receiving a purchasing card. EMPLOYEE PERSONAL INFORMATION: (Last Name) (First Name) (Initials) (Birthdate – YYMMDD) (EIN Number) MAILING ADDRESS FOR MONTHLY STATEMENTS: (Street Address) (Department) (City) (Province) (Postal Code) (Business Telephone Number) (Fax Number) (E-mail address) PURCHASING CARD CONTROLS: Default ASN Single Transaction Limit (exclusive of tax) $2,500 max. - specify if limit should be lower: Monthly Transaction Limit (exclusive of tax) $10,000 max. - specify if limit should be lower: (Please see the Purchasing Card Coordinator if you want to place restrictions on the types of merchants or the specific merchants for which the purchasing card can or cannot be used.) Financial Services AUTHORIZATION: Department Approval ________________________________________ _________________ ______ __________ (Immediate Supervisor’s Signature) (Date) (rec'd by) (date) OCDSB FORM 651.002 (March 2009) Appendix 2 of PR.651.FIN PURCHASING CARD CARDHOLDER AGREEMENT The Ottawa-Carleton District School Board (the Board) hereby authorizes your use of a Purchasing Card to assist you in the performance of your duties. It is understood, as a responsible employee of the Board, that you will safeguard and protect the Board's assets by keeping receipts, reconciling Scotiabank monthly statements and following proper card security measures. I, , hereby acknowledge receipt of a Board Purchasing Card, card number . As a cardholder, I agree to comply with the terms and conditions of this Agreement and the applicable provisions of the Purchasing Card Rules and Regulations Document (the "Document”) provided, and as such Document may subsequently be revised. I acknowledge receipt of the Manual and confirm that I have read and understand its terms and conditions. I understand that the Board is liable to Scotiabank for all charges made by me. As the holder of this Purchasing Card, I agreed to accept responsibility for the protection and proper use of this purchasing card as outlined in the Agreement and the Document. I understand that the Board will audit the use of the Purchasing Card. I understand that I cannot use the Purchasing Card for personal purchases, third party purchases, or to obtain cash advances. I further understand that in the event of a breach of these fiduciary obligations, the Board shall take any recovery action or any disciplinary action deemed appropriate. I agree to report a lost or stolen card immediately by telephone to the Scotiabank Purchase Card Service Centre at 1-888-823-9657 and by advising the Financial Services Department. At this point, no further use of the account is authorized. I understand that the Board may terminate my right to use this Purchasing Card at any time for any reason. I agree to return the Purchasing Card to the Board immediately upon request or upon termination of employment. CARDHOLDER: Signature Date Print Name Department/School Birth Date (YYMMDD) Purchasing Card Controls as at the date of this Agreement: Single Transaction Limit Monthly Transaction Limit OCDSB FORM 651.003 (March 2009) Appendix 3 of PR.651.FIN CARDHOLDER CHANGE/CANCELLATION FORM Immediate supervisors are required to complete the appropriate section(s) of this form for each cardholder. (Cardholder Name) (Purchasing Card Number) SECTION 1 - CHANGE ADDRESS WHERE MONTHLY STATEMENTS ARE TO BE SENT: (Street Address) (Department) (City) (Province) (Postal Code) (Business Telephone Number) (Fax Number) (E-mail address) SECTION 2 - CHANGE PURCHASING CARD CONTROLS: New Default ASN New Single Transaction Limit (exclusive of tax) $2,500 max. - specify if limit should be lower: New Monthly Transaction Limit (exclusive of tax) $10,000 max. - specify if limit should be lower: (Please see the Purchasing Card Coordinator if you want to place restrictions on which types of merchants or which specific merchant’s the purchasing card can or cannot be used at) SECTION 3 - CANCEL PURCHASING CARD: Card was lost: Date reported to VISA Card was stolen: Date reported to VISA Other: Please attached Purchasing Card Card was lost or stolen, cancelled, then found: Please attached Purchasing Card Financial Services AUTHORIZATION: Department Approval ________________________________________ _________________ ______ __________ (Immediate Supervisor’s Signature) (Date) (rec'd by) (date)