CHA Purchasing Card (PCard) Training for Cardholders and Managers PCard Administrators Steve Lamphere Ken Widis Did you get your handouts?

Presentation Highlights Program Overview Benefits to the CHA Benefits to the Supplier CHA and Personal Liability How Program Works Documentation Purchasing Card Policy and Procedures Cardholder Responsibilities Program Restrictions

PCard and the CHA Simplifies purchase of non-restricted products and services Reduces administrative time and effort related to purchase of authorized commodities Reduces administrative cost associated with processing purchase orders, invoices and checks Effective procurement tool for emergency requirements Compliments CHA buys, electronic purchasing systems and the online private marketplace

Point-of-Sale Controls Purchase Card transactions per day Purchase Card transactions per month Single purchase limit up to (Max) of $2,500.00 (includes all transaction related shipping, delivery or handling charges) Monthly spending limit of up to (Avg)$5,000.00 Monthly spending limit can be increased based on need and A0 approval Cycles Spending Statement

PCard Vocabulary Cardholder - Person whose name is on the card Approving Official - Cardholder’s immediate supervisor MBNA - The bank that provides the card Program Administrator – Overall Program responsibility

PCards Streamline the Purchasing and Payment Process Steps in a Purchase Order Transaction Steps in a Purchasing Card Transaction Benchmark Statistics CHA PO & P-Card Statistics

The Steps in the Purchasing Card Process End user enters PO into YARDI ALL Purchases must be Approved Prior to PCard Use Vendor paid immediately Vendor delivers item directly to department PCard Holder receives invoice for every purchase

Why Use Anything BUT Purchasing Cards? “Why some items aren’t allowed on the card.”

Repairs, alterations and maintenance Contracts Services Repairs, alterations and maintenance Need to manage risk—insurance requirements Contracts Recommended for all services Required for all personal services

Information Technology Delegated Authority Only IT is authorized to approve Hardware / Software purchases Compatibility issues………… Some software OK if approved in advance via email other documentation

Items Requiring Pre-Authorization Gifts, donations, awards, contributions Hosting/Entertaining Other…..

Miscellaneous Payments to individuals, employees or residents Items to be installed Fines, late fees, penalties, interest, finance charges Some Vendors do not accept Charge Cards

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

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

Cardholder Responsibilities Reviews transactions online Gathers and assembles all supporting documentation Reports immediately a lost or stolen card or any unusual card activity Surrenders the card upon termination of employment or upon request by the AO or PA

Procedures for Using the Card Resources Placing Orders Receiving & Inspecting Orders Reviewing Transactions Online Avoiding Fraud Preparing for Review

Resources: CHA Purchasing Card Handbook Web Site Approved Contractor List CHA Policies & Procedures Review procedures

Procedures: When Making A Purchase Save ALL receipts Make a screen-print when ordering on-line Keep completed order-form when faxing orders During travel, save meeting/conference agendas, hotel folios, and rental car agreements

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

Before Traveling Review 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 receipts Save meeting /conference agenda Obtain itemized hotel bill Save rental car agreement

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

Return, Receive, Inspect & Document Receipt of Order Work out any problems with the vendor Return to vendor — MUST be a credit to the PCard (No Cash Back) Obtain itemized receipt Vendor name, address and phone Date of purchase Description of each item purchased Per-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/ Missing Receipts Try to get a receipt from the vendor Attach packing slip if available Attach copy of order form Attach a piece of product packaging Attach Affidavit of Lost Receipt Form Link to form available on Purchasing web site

Disputed Charges Contact the vendor and attempt resolution first. Contact MBNA within 30 days Complete and submit “Dispute form”

What if the card is lost or stolen? 7 x 24 hours availability Card holder should notify MBNA immediately. Notify your agency Program Administrator.

What happens if I break the rules….. Suspension of PCard Privileges Forced to attend Retraining Permanent Loss of PCard Privileges Termination and Prosecution possible in some cases

Misuse of Purchasing Card Personal misuse: Personal purchases Purchase of restricted commodities or from restricted suppliers Splitting of purchase or service cost over multiple card transactions in order to circumvent the authorized transaction limit Administrative misuse: Failure to obtain and submit supporting documentation for all card transactions Lack of timely and proper reconciliation of monthly statements Use of the card by anyone other than the authorized cardholder Risks: Warning letter / verbal from Program Administrator Suspension of card privileges Employee termination

PCard Card Misuse & Abuse IT’S NOT PERSONAL, IT’S BUSINESS Cardholder Suspension Cardholder Retraining Fraudulent use of the Purchasing credit card will result in actions being taken in accordance with the procedures established in the Cardholder Agreement form.

Summary Use your card judiciously with common sense. Follow the program rules. Reallocate your charges in a timely manner. Keep accurate records. Communicate with your Approving Official or the Procurement Dept on any problems you might have.

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