Best Practices for Using the P-Card Appropriately to Minimize Flagged Transactions

Size: px

Start display at page:

Download "Best Practices for Using the P-Card Appropriately to Minimize Flagged Transactions"

Oswin Morton
5 years ago
Views:

1 Best Practices for Using the P-Card Appropriately to Minimize Flagged Transactions July 27, 2016 Charlie Sinex, Director FMS, IU AP and RM Patty Anderson, Contract and P-Card Administrator

2 Today s Topics When to use the P-Card Lifecycle of a P-Card transaction PCDO & Cash Flows Policy compliance Support documentation and the audit trail P-Card statement and receipt upload Flagged, non-compliant transactions Q&A

Use the P-Card when Low value transactions on non-restricted goods and services with suppliers that are not contracted or approved PO vendors in KFS A true

3 Use the P-Card when Low value transactions on non-restricted goods and services with suppliers that are not contracted or approved PO vendors in KFS A true emergency Conference/meeting registration fees One time purchase to supplier that does not have a KFS vendor record Suppliers that only accept credit cards

4 P-Card Transaction Lifecycle Department Fiscal Officer Cardholder Vendor Collects & transmits payment info Provides itemized receipt US Bank Approves or declines Pays vendor Daily batch files to IU IU PCDO Book GL entries Early fiscal review Resolve issues IU AP Pays US Bank Policy Audit Review Audit for flagged issues Resolution Flagged Issues

5 The PCDO and Cash Flows Purchasing Departments request P-card from purchasing for use in their department Purchasing manages policies regarding allowable uses of university P-cards Vendor US Bank pays the vendor at the time of credit card purchase US Bank sends billing files for previous week s purchases to IU KFS US Bank submits transaction detail electronically to IU overnight This information + KFS default account is used to create PCDO documents PCDO documents automatically route to departments for review AP AP pays US Bank weekly through billing files for previous week s purchases AP audits departmental submission of statements and receipts for compliance with university policy and procedure

6 IU Policy Compliance P-Card restrictions are necessary to ensure policy compliance. Transactions are to be audited at the department level to confirm policy compliance and to resolve any non compliant transactions. Submitted US Bank statement and receipt upload must include documentation of resolution of noncompliant transactions. IU AP is responsible for the final policy audit review. Purchasing, Accounts Payable and Internal Audit regularly audit P-Cards.

7 IU Policy Relevant to P-Card Usage Policy 20 University Procurement Contracts University, faculty and staff will use established contracts for goods and services when available Policy 3.5 Purchases for Employees Small appliances, snacks & beverages, etc. Policy 10.0 Restricted Purchases Items of a personal nature, alcohol, flowers, retirement gifts Policy I-50 Allowable Hospitality Expenses Unallowable hospitality will be flagged Policy 2.0 Reimbursement of Travel Expenditures Lodging, ground and air transportation, entertainment, meals

Support Documentation & Audit Trail An approval email from Purchasing for the goods or services purchased must be included when the item, is restricted, unallowable, or potentially unallowable

8 Support Documentation & Audit Trail An approval from Purchasing for the goods or services purchased must be included when the item, is restricted, unallowable, or potentially unallowable (example software, cameras, computers). An advance deposit (AD) document number that processed a reimbursement to IU must be included on the receipt for a personal transaction. Hospitality approval included on allowable expenses. Receipt documentation securely redacted of any critical data prior to submission.

9 P-Card Statement & Receipt Upload Departments have one method for submitting P-Card statements and audit documentation: that is by uploading a PDF file through the FMS AP Documentation Upload Tool. Upload contains US Bank statement, original, itemized receipts, audit support documentation. Paperwork will not be submitted for any other reimbursement. Original paperwork will be retained for a period of seven fiscal years plus the current fiscal year. C&G transactions may require a longer retention period. Paperwork must be purged in a secure manner at the end of the retention period.

Flagged Transactions Non-compliant transactions are flagged during the policy audit review by AP. Fiscal officers and PCDO delegates are notified by email.

10 Flagged Transactions Non-compliant transactions are flagged during the policy audit review by AP. Fiscal officers and PCDO delegates are notified by . Contact AP or the P-Card manager for clarification. Upload support documentation using the AP upload tool audit paperwork submission tab. Delays and repeated misuse may result in card suspension. Avoid flagged transactions by auditing transactions at the department level and providing documentation of resolution with the first bank statement and receipt upload.

11 Questions?

FOUNDATIONS IN UNIVERSITY FINANCE ACCOUNTS PAYABLE

FOUNDATIONS IN UNIVERSITY FINANCE ACCOUNTS PAYABLE Accounts Payable Charlie Sinex Director, Accounts Payable and Records Management Participant Outcomes Recognize Accounts Payable s role in the timely