Embed Size (px)
Citation preview
Purchasing Card/Accounts Payable Presentation
Agenda
Introduction
Audit findings
Audit Recommendations
How can we help?
Introduction
PCards introduced 1st May 2003
Significant growth in use
Internal audit of April 2008 data
Highlights improved communication/training
Audit Findings
13 instances where reconciliation not submitted
9 instances where the cardholder’s supervisor did not approve the reconciliation
1 instance where the cardholder did not sign the reconciliation 1 instance in which an employee, other than the cardholder, signed
the reconciliation
99 instances of insufficient documentation
13 instances in which a transaction was split, circumventing the University’s procurement policy related to transactions over $5,000.
Other Audit Findings
Miscoding to accounts
Incorrect taxes
Ineligibility or non-compliance of research expenses per Tricouncil
Audit Recommendations
Enhancing communication with and training for cardholders and supervisors regarding their responsibilities, including authorization, coding, documentation and reconciliation requirements.
Cardholder Responsibilities
Reconcile:
Cut-off is 25th of each month or if the 25th falls on a weekend, the next business day
Reconciliation reports due to Business Office within two weeks
Cardholder Responsibilities
Authorization:
Only the cardholder may use the card Cardholder must sign reconciliation Cardholder’s supervisor must sign reconciliation
**Research** If a research purchase is made on a card belonging to someone other than PI/authorized delegate, must provide proof of PI’s approval/request.
Cardholder Responsibilities
Coding:
Expenses coded to the correct account
Taxes properly recorded
**Research** Must be eligible expenses – check with Research Accounting if in doubt – before purchasing!
Cardholder Responsibilities
Supporting Documentation:
Must be original receipts
Email for internet purchases plus Visa Receipt or Invoice
Receipts/packing slips for good received
**Research** require proof of PI authorization
Audit Recommendations
Developing and implementing a monitoring function designed to identify internal control weaknesses, establish action plans to address such weaknesses, and issue violation warnings.
Monitoring Function
PCard monitoring function in Accounts Payable
Monthly review of activity
Research reviewed for eligibility/compliance
Violation letters sent via email
Subsequent reminders sent via mail, copy to supervisor
Audit Recommendations
Ensuring potential split transactions are identified, resolved and warnings issued to cardholders and supervisors for policy violations and employing consequences when appropriate.
Standard Card Limits
Transaction Monthly
Operating $5,000 $20,000
Research $1,000 $10,000
Split Transactions
Often circumvent Purchasing Policy
All reconciliations reviewed for split transactions
Occurrences forwarded to Purchasing Manager
Communication sent to Cardholder
Audit Recommendations
Developing a process by which Purchasing Services is informed of all changes to employment status of faculty and staff that possess a purchasing card.
Cardholder Status
HR informs us of some changes in employment status
You can also keep us informed of changes in your department (leaves, transfers, acting, CDA)
Audit Recommendations
Implementing the appropriate best practices suggested by IAAS for managing and increasing the acceptance and usage of the University’s procurement card program.
Increasing usage
Rogers and other regular bills
Conference registration
Courier Services
Aramark catering
Hardware Services
Bookstore
How can we help?
For limit change requests, please contact Purchasing (and Research for cards linked to Research grants)
FAQ’s on Purchasing website
Training
Your ideas?
Where to get information
Purchasing Services613-520-3622
Research Accounting613-520-3631
Accounts [email protected]
Thank you for attending!
