Procurement Card Programs

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• Procurement Card Programs

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The Procurement Card (P-Card) What is it?

• A Credit Card which empowers individual employees
  to make purchases for their Campus/Department in
  an efficient manner.

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Why have them?

• Simplified buying process
• Saves times by eliminating Purchase Orders and
  Accounts Payable invoices
• Speeds up payments to your vendors
• Can be used to generate revenue for your District
  

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How to start a program

• Piggy-Back on a Cooperative Contract
• Texas Comptroller of Public Accounts
• Fort Worth ISD or other entities
• Publish a RFP
• Board Approval

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Procurement Card Models

• Individual Card Holders
• Temporary Use

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Individual Card Holder Model
Approved Vendor List
Card Holder Reconciles
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Card Check-Out Model
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How P-Cards are being used

• Walk-In Purchases
• Wal-mart, Target, Grocery Stores, etc.
• On-Line Purchases
• Travel Cards
• Eliminates the use of employee personal funds
• Cash Cards
• Reduces the need for pre-pay checks
• Accounts Payable Cards
• Reduces the amount of checks processed

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Card Setup

• Cardholder Request Form
• Appropriate Management signatures
• Online Card Setup through the Banks System
• Budget Encumbered (Separate Object Codes)
• Declining Balance Card
• Credit limit of the card Budget Encumbered
• Bank System should not allow more to be spent
• Single Transaction/Daily Spend Limits

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Training and Documentation

• Training is required before card issuance
• Cardholder and Approver must attend
• Program specifics discussed in detail
• How-to Presentation
• Tax-Exempt Form provided in Training
• Purchase Card Manual
• Approved Vendor Lists
• Violations Policy

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Controls

• Specific Vendor List
• Ensures Bid Law Compliance
• Merchant Category Code (MCC) Restriction
• 100 Receipt Retention Required
• Monthly Audits
• Monthly Reconciliation Required
• Must completed online transaction verification
• Signatures required on printed report
• 10 Business days to complete

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Controls

• Program Manager
• Internal Audit Support
• Enforce Violations
• School Bus Yellow Card
• Single Transaction Limit
• Daily Spend Limits
• Declining Balance
• Required Training

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Questions Answers
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Controls within Round Rock ISD

• Separation of Duties
• Ownership of the overall process split between
  the Purchasing Office and the Finance Department
• Purchasing Office
• New / replacement card requests
• Signature on the Cardholder Users Guide
• Changes / limit adjustments
• Finance Department
• Ownership of the card company contract
• Receipt of new cards ordered by the Purchasing
  Office
• Reconciliation of Statements

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Controls within Round Rock ISD

• Cardholder Responsibilities and Requirements
• Each card is provided with the individuals name
  imprinted on the card
• Card holder must sign the Cardholders Users
  Guide at time of receipt
• Must follow all purchasing guidelines
• Provide proper documentation (e.g. receipts) for
  all purchases
• Provide immediate notice to the Purchasing Office
  if fraud is found or the card is lost

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Controls within Round Rock ISD

• Classifications
• Allows for much faster / efficient operations for
  change requests
• Currently 50 classifications based on
  Administrative (A) or Curriculum (C)
• Includes
• Monthly credit limit based on position ranging
  from 250 to 35,000 per month
• A code on if the card can be increased and when
  if allowed (yes, no, or emergency)

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Controls within Round Rock ISD

• Classifications

• Examples
• Director (level 1) A061CN
• Limit of 1,000 month
• No increases allowed
• Technician (maintenance) A140CN
• Limit of 1,000 month
• No increases allowed
• Exec. Assistant (Level 2) A161FY
• Limit of 7,500 month
• Increases as requested
• Principal C010DE
• Limit of 2,500 month
• Emergency increases
• Admin. Associate C040FY
• Limit of 7,500 month
• Increase during specific periods

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Questions Answers
RRISD Web Site https//www.roundrockisd.org/Modul
es/ShowDocument.aspx?documentid20591