Building P-Card Policies and Procedures. Stacy Gregg, CPPB

Transcription

1 Building P-Card Policies and Procedures Stacy Gregg, CPPB

2 Introduction How much experience in the group? A. I am a p-card holder with little experience outside of purchasing B. I am a liaison or reconciler for another p-card holder C. I manage a p-card program, which was already functioning D. I manage a p-card program, which I built from inception E. I do not fit well into any of the above categories

3 Creating Card Policies When creating a P-Card policy, considerations should include: Program goals & objectives Relationship to other policies Specification of preferred payment methods for the organization Conflicts with existing organizational policies P-Card usage mandated vs. encouraged Policy Responsible Party NOTE: The depth of the policy depends on the organization s philosophy and how it approaches internal policies.

4 Creating Card Policies In general, the organization should ensure that the policy aligns with the program goals and objectives, addressing: P-Card s position within the organization s payment strategy Targeted transactions Prohibited transactions and practices Possible consequences for misuse and abuse

5 It is beneficial for an organization to solicit feedback and secure buy-in of the policy from key players, such as appropriate management members. Creating Card Policies

6 Creating Card Policies Introductory components of a P-Card policy may include the following: Value to the organization Policy s purpose and objectives Intended audience and scope Group responsible for the policy Date of the last policy revision

7 Maintaining the Manuals The Program Manager (or Administrator) is usually responsible for creating and maintaining manuals. Include input & oversight from other stakeholders Ensure manuals remain current Program management procedures should be established denoting who will do what in the process to prevent unauthorized changes and duplicative efforts.

8 Maintaining the Manuals Manuals: Hardcopy vs softcopy Hardcopies are expensive to maintain Hardcopies create a greater risk of participants using of outdated versions Best practice is to place a read only version of the manual in shared access database Intranet sites can also include Program forms FAQ page Administration manual

9 Part One Summary Creating Card Policies Items to be considered when creating a policy Depth of policy depends on organizational norms Policy should align with program goals and objectives Stakeholder roles in the process Introductory components of a p-card policy Maintaining the Manual Program Manager creates and maintains the policy Separate policy for program management officials Hardcopy vs Softcopy of manuals

10 Part One Poll QUESTION 1: How many of you have a formal policy in the organization s main policy manual?

11 Part One Poll QUESTION 2: How many of you have a P-Card Policies and Procedures manual at your site?

12 Part One Poll QUESTION 3: How current is your policies and procedures manual? A. Less than a year old B. 1-5 Years C. Policies and Procedures Manual? Questions, Feedback, Discussion

13 Elements of a Policies & Procedures Manual The Policies and Procedures Manual is the backbone of any P-Card program. Special attention is needed to assure that key areas are addressed, clearly stated and easy to find.

14 Elements of a Policies & Procedures Manual 1. Program Policy The most fundamental element of a P & P manual is the program policy. From it, procedures and program specifics evolve. 2. Program Goals & Objectives Communicating program goals and objectives give participants a better understanding of why. 3. Program Contacts Who to call for what?

15 Elements of a Policies & Procedures Manual 4. How to open a P-Card Account Employee Supervisory approval Agreement of understanding Training requirements 5. Card/Account Security Common Scams Real vs. Fake communications

16 Elements of a Policies & Procedures Manual 6. P-Card Usage and Unique Supplier Processes Possible ordering methods P-card info the supplier may require in addition to card number Organization s Tax exempt number (if applicable) Shipping information Handling of special shipping/receipt concerns 7. Targeted or Restricted Transactions Fixed assets Travel & entertainment Personal items Cash

17 Elements of a Policies & Procedures Manual 8. Card Controls Transaction limits Velocity limits MCC Restriction How to request change to limits 9. Account Maintenance Card limits MCC profile GL coding Approving manager of cardholder Cardholder name, address or telephone

18 Elements of a Policies & Procedures Manual 10. Account Closure Termination of employment Abuse/Misuse Change in employee duties 11. Reconciliation Process Confirmation that transactions are valid Appropriate accounting and budgeting documentation 12. Management Review Process May be either in the transaction level, or At the statement level, or Both transaction and statement level

19 Elements of a Policies & Procedures Manual 13. Records Retention Method (paper vs digital) Location Duration 14. Auditing Program 15. Fraud, Disputes, and Lost Cards Steps to take Contact information

20 Elements of a Policies & Procedures Manual Note: Problematic transactions should be handled promptly! Remember, most issuers set time limits. You will want your customers to remain in the time limits set forth by them.

21 Elements of a Policies & Procedures Manual 16. Repercussions For Policy Violations State the violations State the repercussions Require signature of understanding Provide resolution methods for accidental misuse

22 Part Two Summary The Policies & Procedures Manual Program Policy Goals and Objectives How to Obtain an Account Card/Account Security P-Card Usage Unique Supplier Processes Targeted and Restricted Transactions Card Controls Account Maintenance Account Closure Reconciliation Process Management Review Process Records Retention Auditing Program Fraud, Disputes, Lost Cards Repercussion for Policy Violations Questions, Feedback, Discussion

23 Administration Manual for Program Management Staff In addition to the organization-wide policies and procedures manual for program participants, program management staff needs a complementary, internal administration manual defining their specific operations to specify how program management carries out its job duties associated with: Opening accounts and card issuance Protecting cardholder and account data The P-Card training program Account maintenance Closing Accounts Program Reporting Regulatory compliance

24 Administration Manual for Program Management Staff Administration Manual Topics continued: Tracking fraud & dispute status Policy violations by cardholders or other Communicating with management Maintaining the P & P manual Managing an effective control environment Downloading reconciled transaction from the P-Card technology Paying the issuer in accordance with contract terms

25 Administration Manual for Program Management Staff Supplemental Resources 1. Checklists: Reflecting steps for opening and closing accounts Software instructions Receipt, collection, disposal of plastic cards File requirements 2. Standard training presentations 3. Communications templates or samples

26 Part Three Summary The Administration Manual (need) Topics for Admin Manual Supplemental Resources Questions, Feedback, Discussion

27 Sources NAPCP. (2012). Purchasing Card Essentials (2nd ed.). Minnetonka, MN: NAPCP. NIGP. (2011). CPPO Prep Guide. Herndon, VA: NIGP.

28 Contact Stacy Gregg, CPPB Richland County School District One Columbia, SC

29 QUESTIONS? To submit a question, type your question in the upper part of your Q&A window and click on Ask.