CHA Purchasing Card (PCard) CHA Purchasing Card (PCard) Training for Cardholders and Training for Cardholders and

ManagersManagers

PCard Administrators PCard Administrators

Steve LamphereSteve LamphereKen WidisKen Widis

Presentation HighlightsPresentation HighlightsProgram OverviewProgram Overview

Benefits to the CHA Benefits to the CHA

Benefits to the SupplierBenefits to the Supplier

CHA and Personal LiabilityCHA and Personal Liability

How Program WorksHow Program Works

DocumentationDocumentation

Purchasing Card Policy and Procedures Purchasing Card Policy and Procedures

Cardholder ResponsibilitiesCardholder Responsibilities

Program RestrictionsProgram Restrictions

PCard and the CHAPCard and the CHASimplifies purchase of non-restricted products and Simplifies purchase of non-restricted products and servicesservices

Reduces administrative time and effort related to Reduces administrative time and effort related to purchase of authorized commoditiespurchase of authorized commodities

Reduces administrative cost associated with Reduces administrative cost associated with processing purchase orders, invoices and checksprocessing purchase orders, invoices and checks

Effective procurement tool for emergency Effective procurement tool for emergency requirementsrequirements

Compliments CHA buys, electronic purchasing Compliments CHA buys, electronic purchasing systems and the online private marketplacesystems and the online private marketplace

Point-of-Sale ControlsPoint-of-Sale ControlsPurchase Card transactions per dayPurchase Card transactions per day

Purchase Card transactions per monthPurchase Card transactions per month

Single purchase limit up to (Max) of $2,500.00 (includes all Single purchase limit up to (Max) of $2,500.00 (includes all transaction related shipping, delivery or handling charges)transaction related shipping, delivery or handling charges)

Monthly spending limit of up to (Avg)$5,000.00Monthly spending limit of up to (Avg)$5,000.00

Monthly spending limit can be increased based on need and Monthly spending limit can be increased based on need and A0 approvalA0 approval

CyclesCycles– SpendingSpending– StatementStatement

PCard VocabularyPCard VocabularyCardholderCardholder - Person whose name is - Person whose name is on the cardon the card

Approving OfficialApproving Official - Cardholder’s - Cardholder’s immediate supervisorimmediate supervisor

MBNAMBNA - The bank that provides the - The bank that provides the cardcard

Program AdministratorProgram Administrator – Overall – Overall Program responsibilityProgram responsibility

PCards Streamline the Purchasing PCards Streamline the Purchasing and Payment Processand Payment Process

Steps in a Purchase Steps in a Purchase Order TransactionOrder Transaction

Steps in a Purchasing Steps in a Purchasing Card TransactionCard Transaction

Benchmark StatisticsBenchmark Statistics

CHA PO & P-Card CHA PO & P-Card StatisticsStatistics

The Steps in the Purchasing Card Process

End user enters PO into YARDIALL Purchases must be Approved Prior to PCard Use Vendor paid immediatelyVendor delivers item directly to departmentPCard Holder receives invoice for every purchase

Why Use Anything BUT Purchasing Why Use Anything BUT Purchasing Cards?Cards?

Purchasing 101Purchasing 101

““Why some items aren’t allowed on Why some items aren’t allowed on the card.”the card.”

ServicesServices

Repairs, alterations andRepairs, alterations and

maintenancemaintenanceNeed to manage risk—insurance requirementsNeed to manage risk—insurance requirements

ContractsContractsRecommended for all servicesRecommended for all services

Required for all personal servicesRequired for all personal services

InformationInformation Technology Technology

DelegatedDelegated Authority Authority

Only IT is authorized to approve Only IT is authorized to approve Hardware / Software purchasesHardware / Software purchases

Compatibility issuesCompatibility issues……………………

Some software OK if approved in Some software OK if approved in advance via email other advance via email other documentationdocumentation

Items Requiring Pre-AuthorizationItems Requiring Pre-Authorization

Gifts, donations, awards, Gifts, donations, awards, contributionscontributions

Hosting/EntertainingHosting/Entertaining

Other…..Other…..

MiscellaneousMiscellaneous

Payments to individuals, employees Payments to individuals, employees or residentsor residents

Items to be installedItems to be installed

Fines, late fees, penalties, interest, Fines, late fees, penalties, interest, finance chargesfinance charges

Some Vendors do not accept Charge Some Vendors do not accept Charge CardsCards

Approving Official ResponsibilitiesApproving Official ResponsibilitiesUltimately responsible for appropriate card Ultimately responsible for appropriate card use.use.Approves the appropriate level of Approves the appropriate level of spending authority for the cardholder. spending authority for the cardholder. Approves the cardholder’s purchasing card Approves the cardholder’s purchasing card application and agreement. application and agreement. Approves the cardholder’s initial per-Approves the cardholder’s initial per-transaction and monthly transaction limits, transaction and monthly transaction limits, and any temporary or permanent and any temporary or permanent increases to those limits.increases to those limits.

Cardholder ResponsibilitiesCardholder ResponsibilitiesDirectly responsible for appropriate Directly responsible for appropriate card use.card use.Keeps the purchasing card in a safe Keeps the purchasing card in a safe and secure location.and secure location.Makes allowable and appropriate Makes allowable and appropriate purchases.purchases.Receives and inspects orders.Receives and inspects orders.Arranges for returns and credits Arranges for returns and credits when necessary.when necessary.

Cardholder ResponsibilitiesCardholder Responsibilities

Reviews transactions online Reviews transactions online

Gathers and assembles all Gathers and assembles all supporting documentationsupporting documentation

Reports immediately a lost or stolen Reports immediately a lost or stolen card or any unusual card activitycard or any unusual card activity

Surrenders the card upon Surrenders the card upon termination of employment or upon termination of employment or upon request by the AO or PArequest by the AO or PA

Procedures for Using the CardProcedures for Using the Card

Resources Resources

Placing OrdersPlacing Orders

Receiving & Receiving & Inspecting OrdersInspecting Orders

Reviewing Reviewing Transactions Online Transactions Online

Avoiding FraudAvoiding Fraud

Preparing for ReviewPreparing for Review

Resources: CHA Purchasing Resources: CHA Purchasing Card HandbookCard Handbook

– Web SiteWeb Site– Approved Contractor ListApproved Contractor List– CHA Policies & ProceduresCHA Policies & Procedures– Review proceduresReview procedures

Procedures: Procedures: When Making A PurchaseWhen Making A Purchase

Save ALL receipts Make a screen-print when ordering on-lineKeep completed order-form when faxing ordersDuring travel, save meeting/conference agendas, hotel folios, and rental car agreements

PCard as a Travel Card:PCard as a Travel Card:Only the traveler’s Only the traveler’s PCard may be used for PCard may be used for his/her expenseshis/her expensesAirline tickets for Airline tickets for employees MUST be on employees MUST be on a PCarda PCardDo NOT use for personal Do NOT use for personal charges on hotel bill charges on hotel bill Do NOT use to buy fuel Do NOT use to buy fuel for privately owned for privately owned vehiclesvehicles

Before TravelingReview the current CHA Travel Policy

Review the per diem allowance for your destination

Contact the Procurement Office at least 3 working days prior to travel if your limit needs to be adjusted

During Travel:

Save all receiptsSave meeting /conference agendaObtain itemized hotel billSave rental car agreement

Returning from TravelCollect all receiptsUpdate the PCard transaction in YARDI Collect and Attach all receipts to monthly PCard statement for reconciliation

Return, Receive, Inspect & Document Return, Receive, Inspect & Document Receipt of OrderReceipt of Order

Work out any problems with the Work out any problems with the vendorvendor

Return to vendor — MUST be a credit Return to vendor — MUST be a credit to the PCard (No Cash Back)to the PCard (No Cash Back)

Obtain itemized receiptObtain itemized receipt– Vendor name, address and phoneVendor name, address and phone– Date of purchaseDate of purchase– Description of each item purchasedDescription of each item purchased– Per-item cost, if available from vendorPer-item cost, if available from vendor

Receipt Tips

In Person: Keep itemized receipt

Phone: Tell vendor to mail or fax receipt

Fax: Keep copy of order form & attach packing slip

Internet: Screen print the completed form & attach packing slip

Procedures: Lost/Procedures: Lost/Missing ReceiptsMissing Receipts

Try to get a receipt from the vendorTry to get a receipt from the vendor

Attach packing slip if availableAttach packing slip if available

Attach copy of order formAttach copy of order form

Attach a piece of product packagingAttach a piece of product packaging

Attach Affidavit of Lost Receipt FormAttach Affidavit of Lost Receipt FormLink to form available on Purchasing web siteLink to form available on Purchasing web site

Disputed ChargesDisputed Charges

Contact the vendor Contact the vendor and attempt and attempt resolution first.resolution first.

Contact MBNA Contact MBNA within 30 dayswithin 30 days

Complete and Complete and submit “Dispute submit “Dispute form”form”

What if the card is lost or stolen?What if the card is lost or stolen?7 x 24 hours 7 x 24 hours availability availability

Card holder should Card holder should notify MBNA notify MBNA immediately.immediately.

Notify your agency Notify your agency Program Program

Administrator.Administrator.

What happens if I break the What happens if I break the rules…..rules…..

Suspension of PCard PrivilegesForced to attend RetrainingPermanent Loss of PCard PrivilegesTermination andProsecution possible in some cases

Misuse of Misuse of PurchasingPurchasing Card CardPersonal misuse:Personal misuse:

– Personal purchasesPersonal purchases– Purchase of restricted commodities or from restricted suppliersPurchase of restricted commodities or from restricted suppliers– Splitting of purchase or service cost over multiple card Splitting of purchase or service cost over multiple card

transactions in order to circumvent the authorized transaction limittransactions in order to circumvent the authorized transaction limit

Administrative misuse:Administrative misuse:

– Failure to obtain and submit supporting documentation for all card Failure to obtain and submit supporting documentation for all card transactionstransactions

– Lack of timely and proper reconciliation of monthly statementsLack of timely and proper reconciliation of monthly statements– Use of the card by anyone other than the authorized cardholderUse of the card by anyone other than the authorized cardholder

Risks:Risks:

– Warning letter / verbal from Program AdministratorWarning letter / verbal from Program Administrator– Suspension of card privilegesSuspension of card privileges– Employee terminationEmployee termination

PCard Card Misuse & AbusePCard Card Misuse & Abuse

– IT’S NOT PERSONAL, IT’S BUSINESSIT’S NOT PERSONAL, IT’S BUSINESS

– Cardholder Suspension Cardholder Suspension

– Cardholder RetrainingCardholder Retraining

– Fraudulent use of the Purchasing credit card Fraudulent use of the Purchasing credit card will resultwill result in actions being taken in accordance in actions being taken in accordance with the procedures established in the with the procedures established in the Cardholder Agreement form.Cardholder Agreement form.

SummarySummaryUse your card judiciously with Use your card judiciously with common sense.common sense.

Follow the program rules.Follow the program rules.

Reallocate your charges in a timely Reallocate your charges in a timely manner.manner.

Keep accurate records.Keep accurate records.

Communicate with your Approving Communicate with your Approving Official or the Procurement Dept on Official or the Procurement Dept on any problems you might have.any problems you might have.

Questions or Feedback?Questions or Feedback?