Procurement CardProcess and Data Recovery

Joanne Des Roche, CAManager, Accounts Payable

June 2015 1

2

Agenda

• History

• Purpose/Restriction

• Process

• Data Inquiry

3

History

Developed in-house through our IT department

Our first transaction with this system was March 2007Currently there are 106 usersNumbers of transactions / dollar amount

Fiscal year 2015 - 6,150 / Calendar year 2014 - $1.6MFiscal year 2014 – 7,096 / Calendar year 2013 - $1.4 MFiscal year 2013 – 7,526 / Calendar year 2012 - $1.3M

Staff involved in administration Vendor master person – Financial services employee responsible for viewing access and expense allocation

Administrator – Materials Management employee ensuring expenses are allocated monthly download expenses weekly for access to the expense upload the allocated expenses to our reporting system

2 Accounts Payable Clerks – Financial services employee verify transactions allocated by the Administrator

4

Purpose/RestrictionsTo provide a convenient method of procuring and paying for low value goods and services.

All expenses are paid through automatic bank withdrawal

Restrictions• Entertainment• Radioactive materials• Hazardous material• Laboratory and research animals• Maintenance contracts (cell phones, printer maintenance ….)• Capital purchases over $1,000• Spending through Research Funds (except when purchasing

requisition is completed)

5

Purpose/Restrictions

Duplicate payment protectionIn Accounts Payable we process two types of invoices

Non PO invoices and PO invoices

Risk of duplicate payment on Non PO invoices is low individuals authorizing the payment on the invoice would be aware of the credit card activity.

Risk of duplicate payment on PO invoices is higher but is identifiableThe invoices goes straight to Accounts Payable, not through the departments.The duplicate payment can be identified because the expense can only be applied to the PO once. If AP posting is not paid, this transaction can be reversed otherwise we must go to the company to return the payment.

6

ProcessAccess – throughout the University

Procurement card application form is completed by supervisor and authorized by an individual with signing authority.Requested information include:

Cardholder name/ID numbersome personal information is required by federal and provincial requirement.

Expense allocationCredit limitTransaction limits – Transaction, Daily, WeeklyAuthorizing signature

Fund accessExpense can be applied against general operating fundsSpecial purpose funds and endowment funds require approval from Financial Services staff

7

Process

Access – Finance users

3 Buyers, Materials ManagementOnce Purchasing Requisition is authorizedPreference is to use P card instead of sending payment to AP

Saves time in processing the paymentReduces data entry errors

CriteriaDollar limitPayment in advance

~ 50% of requisition are paid via P card

1 Accounts Payable Clerk- rareInvoice is authorized for payment just as any payment in APWhen

Non Resident bank do not accept our cheques Vendor requires immediate payment

8

9

Data Inquiry

Transaction recovery is available through our Web Information System to• Cardholder

– Limited to self

• Supervisor– Limited to the Cardholder approval

• Business Manager– A person who allocates expenses for the Cardholder

• Finance staff– Access to all users

10

Data Inquiry

Very few limitations for data recovery through the P card system

Expense allocation

BYY######

11

Inquiry on Judy Headrick (AP clerk) for the last two years

12

Details provided

13

Query on a portion of the vendor name

14

Other possible search queries

• Document number or any portion of• Vendor ID number• All transactions in a date range• Expense allocation• Cardholders or multiply cardholders

15

Questions / CommentsEmail joanne.desroche2@uleth.ca