P-Card Program Changes/Clarificatio

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P-Card Program Changes

Open Forums

August 13, 2008, 10:00 a.m. – 11:30 a.m.

&August 14, 2008 10:00 a.m. – 11:30 a.m.

Alumni Hall Theatre, Room 116

P-Card Changes

Introductions

P-Card ChangesState of Georgia House Bill (HB) 1113http://www.legis.state.ga.us/legis/2007_08/fulltext/hb1113.htm

This site should be shared with all cardholders, approvers, and administrators as well as those individuals who request reimbursement of expenses

P-Card ChangesHB 1113:

1. Imposes civil and criminal penalties for violations

2. Specifies rules, regulations, and requirements of the State Purchasing Card Program

3. Specifies travel advance rules and prohibits fraudulent reimbursement requests

P-Card ChangesHB1113 cont.

Section 1 (b): “It shall be unlawful for any person to obtain for his or her own personal benefit, or for the benefit of any other person, any goods, services, or other things of value through any resource or method established pursuant to this article, including, but not limited to, purchase orders, government contracts, credit cards, or debit cards.”

Section 3(a): It shall be unlawful for any person to use any travel advance received from public funds, for nongovernmental purposes or to submit or approve, knowingly or through willful and wanton neglect, a fraudulent request to the state for reimbursement of expenses.

P-Card ChangesHB1113 cont.

Both P-Card cardholders and Approving Officials may be criminally prosecuted for P-Card misuse – a supervisor that according to Section 2(d) “knowingly, intentionally, willfully, wantonly, or recklessly allows or who conspires with an employee who is issued a purchasing card to violate subsection [2](c) of this code section shall be subject to immediate termination of employment and criminal prosecution.

P-Card ChangesHB1113 cont.

Personal Use of the P-Card Under HB1113, the use of the P-Card for personal

expenditures is strictly prohibited. Cardholders who violate this rule must immediately report the personal use and reimburse the funds. Per USG requirements, the University is required to report misuse to the Board of Regents who will then forward the information to the Attorney General’s Office. This is required regardless of a cardholder’s intent to reimburse the University. An example would be when a cardholder includes a personal purchase with a departmental order to take advantage of free shipping or pricing discounts.

P-Card ChangesHB1113 cont.Personal Use of the P-Card All personal use (intentional and unintentional) of the P-Card should be

handled by the cardholder as follows: Immediately report the purchase to the Approving Official and the P-

Card Administrator. Immediately submit a check payable to GSU to the Cashier’s Office for

the amount of the purchase. Attach a memo on letterhead explaining the circumstances of what

happened (including a timeline of the incident) and attach a copy of the receipt and/or other supporting documentation. Once a receipt is given to cardholder by the Cashier’s Office, submit all paperwork to P-Card Administrator.

Note: These purchases will be reported to University Auditing and Advisory Services for disposition.

P-Card ChangesHB1113 cont.

Background/Credit ChecksPursuant to HB1113, in addition to the required criminal background check, credit checks will be required on employees hired for positions for which purchasing cards are issued. The credit check shall be completed prior to issuing the P-Card. Positions identified by the employing department as P-Card cardholders will be considered to be “positions of trust”. The University shall ensure that the results of a criminal background and/or credit check are provided the privacy protections required by law.

Background and credit checks are required for all new cards issued, effective July 1, 2008. Current cardholders, at time of card renewal, must undergo a background check if not already completed by Human Resources.

P-Card ChangesP-Card Roles and Mandatory Duties

Cardholder

Department Head

Approving Official

Statement of Ethical Values

P-Card ChangesCardholderRoles:1. Regular classified employees2. Individual to whom the card is assigned3. Only one (1) card per cardholder4. May not be his/her own “approving official”

Mandatory Duties:1. Record each transaction on a log as the purchase occurs2. Provide adequate documentation to “approving official” for review3. Sign/date the reconciled monthly transaction log (rubber stamp signatures are prohibited,

all signatures must be original)4. Reconcile the monthly bank statement with the transaction log, receipts, invoices and other

supporting documentation.5. Ensure a propriety review has occurred and is documented. A propriety review indicates

that the purchase was reasonable, appropriate and necessary while also in compliance with P-Card rules and regulations

Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the approving official who approves the purchase

P-Card ChangesDepartment HeadRoles:1. Overall responsibility for budget2. Sole authority for assignment of cards/roles; this responsibility cannot

be delegated

Mandatory Duties:1. Establish and maintain internal controls2. Approve issuance of new cards:

a. Establish cardholder single transaction/monthly credit limitsb. Assign knowledgeable individual acting in a supervisory capacity as the “Approving

Official” for each card

Note: It is recommended that Approving Officials not be responsible for reviewing more than ten (10) P-Cards at one time. Department Heads may request exceptions to this policy from the P-Card Administrator, provided appropriate justification is received

P-Card ChangesDepartment Head

Mandatory Duties (cont.)1. Routinely assess business need for each card2. Evaluate transaction/spending limits at least

annually3. Request changes to card set up and role assignment

Note: The Department Head may also act as an Approving Official

P-Card ChangesApproving Official

Roles:1. Required role (assigned by the Department Head)2. Acting in a supervisory capacity to the cardholder

Mandatory Duties:1. Review the P-Card purchases of assigned cardholders on at least a monthly

basis2. The monthly review must be evidenced by a signature of the approving

official on the reconciled transaction activity log for the assigned cardholders

3. Identify, document, and report cardholder violations4. If desired, the Approving Official can also monitor P-Card purchases on a

more frequent basis using the WORKS™ program

Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the approving official who approves the purchase

P-Card ChangesStatement of Ethical Values

Cardholders will be required to sign a statement of ethical values in order to have a P-Card. Approving Officials will also be required to sign the statement of ethical values prior to being assigned as a P-Card Approving Official.

P-Card Changes

Use of the P-Card

P-Card Changes/Clarifications

Use of the P-Card1. Eligibility and Limits2. Unallowable Uses3. Transaction Activity Logs4. Food/Travel5. Motor Vehicle Expenses6. Common Errors7. Consequences of Inadequate Documentation8. Security Measures to Safeguard the P-Card

P-Card Changes/Clarifications

Use of the P-Card

1. P-Cards may be issued only to regular classified employees of the University

a. Job duty to require the use of the card

b. No more than one(1) card per employee

c. Monthly spending limit shall not exceed $10,000

P-Card Changes/Clarifications

Use of the P-Card cont.

Unallowable Uses:1. Gift cards, gift certificates, or other equivalent forms of cash

(e.g. purchase of gift cards to provide incentive to research participants or students)

2. Split transactions including items which might be purchased on statewide or agency contract to circumvent the single transaction limit

3. Purchasing items with the P-Card that are intended to be reimbursed by the Foundation

4. Intra-University charges (tickets) e.g. Rialto Center for the Performing Arts, Athletic events

P-Card Changes/Clarifications

Use of P-CardUnallowable Uses cont.1. Use of coupons, rebates or rewards programs that offer

free items or promotional items for the benefit of the cardholder are not allowed when purchasing items with the P-Card

a. Rebate checks must be made payable to GSU and deposited through the Cashier’s Office

b. Example: An Office Supply vendor rewards program that allows a customer to earn free items bases on accumulated points/dollars spent

c. HB1113 specifically prohibits employee personal use of rebates or refunds from vendors, banks or other institutions for a purchase or the use of the purchasing card

P-Card Changes/Clarifications

Unallowable Use cont.

P-Card Sharing1. The cardholder is the only person authorized to use the P-Card that has

been issued in that cardholder’s name2. P-Card sharing is prohibited and results in immediate termination of P-

Card privileges3. P-Card sharing increases the risk of fraud and cardholder liability4. Best practices to prevent fraud and misuse include NOT allowing an

individual other than the cardholder to:a. Have physical possession of the P-Card to make payments to point of sale

vendors;b. Have access to the P-Card number and expiration date to make payments via

telephone, internet, or in person;c. Have access to receipts or invoices that display the complete P-Card number

and expiration date

P-Card Changes/Clarifications

Transaction Activity Logs:1. As P-Card transactions occur, the cardholder must

record all purchases on a transaction log2. Logs help to keep a running tally of monthly

charges and identify outstanding transactions not yet billed on the monthly bank statement

3. Maintaining a log will assist cardholders in staying within the established purchasing limits of the card

P-Card Changes/Clarifications

Use of P-Card

Food/Travel:Student food, student travel, and food for instructional uses is permitted on the P-Card subject to certain exceptions and documentation requirements. Additionally, food purchased for resale and as required supplies is allowable. Food purchased for official research use as approved by an Institutional Review Board (IRB), or food that is integral to or subject of research is permitted.

Food and lodging for student activities (does not include faculty, staff, coaches, other school employees, volunteers, or other persons not related to the school) when on official business (e.g. athletic travel).

P-Card Changes Clarifications

Use of P-CardFood/Travel Cont.

Documentation must follow guidelines for “group meals” in the State Travel Regulations.

1. (a) Itemized receipt showing all meals purchased2. Roster of participants showing name and signature of

each student (for activities not open to the entire campus – e.g. Student clubs, athletic teams)

3. Copy of team schedule or other documentation showing that the meal was an authorized student activity

P-Card Changes/Clarifications

Use of P-Card

Motor Vehicle Expenses: Motor vehicle Repairs and Maintenance are allowable

purchased on the P-Card for state-owned fleet vehicles only. However, the P-Card Special Approval Request Form must be completed and submitted to DOAS for approval prior to repairs and maintenance. If approved by DOAS, all costs associated with the state vehicle repair and maintenance must be reported in accordance with DOAS Fleet Management regulations using MAXIMO, the State’s Fleet Management System administered by the DOAS Office of Fleet Management

P-Card Changes/Clarifications

Common Errors:1. P-Cards may only be used to purchase items allowed on

University accounts. Examples of unallowable purchases include but are not limited to:a. Entertainmentb. Flowers/giftsc. Service/Recognition awards i.e. plaquesd. Break room supplies for employee use

2. Personal purchases3. Inventoried Equipment4. Travel (for employees and prospective employees)5. Use of a retail site when vendor has established a specific

website to provide statewide or agency contract pricing

P-Card Changes/ClarificationsUse of P-Card

Consequences of Inadequate Documentation:1. Cardholders are required to personally reimburse the University for

purchases not appropriately documented.2. Approving Officials may also be required to reimburse the University if

the Approving Official approved an undocumented purchase.3. If appropriate documentation is unavailable, a Missing Receipts

Affidavit Form must be completed, signed, and kept on file with the transaction activity log and monthly billing statement. The Missing Receipts Affidavit may only be used three times in a year. The 4th time results in card suspension.

Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the Approving Official who approves the purchase

Security Measures to Safeguard the P-Card

Safeguarding P-Card

1. Keep the P-Card (and account number) in a secure location2. Safeguard the P-Card as you would a personal credit/debit card3. Lost, stolen, or fraudulently used P-Cards must be reported to Bank

of America (1-888-449-2273) and DOAS (e-mail to ProcessImprovement@DOAS.GA.GOV) within 24 hours of discovering the loss, theft, or fraudulent use. The cardholder’s Approving Official and the P-Card Administrator must also be notified.

4. When placing an order online, use only secure sites.a. URL (website address) should begin with httpsb. A graphic, such as a lock, should appear in the bottom right hand corner of

the browser bar

P-Card Program Changes/Clarifications

Questions & Answers