FOOTHILL-DE ANZA COMMUNITY COLLEGE DISTRICT
Business Services
PROCUREMENT CARD
POLICIES AND PROCEDURES
11/1/06
_____________________________________________ ______________________
The Board of Trustees authorized the use of Procurement Cards at their meeting in December, 2003. This authority is granted under Ed Code Section 81656. This purchasing process is used to expedite the purchase and accounting of low cost and frequently needed items or whenever there is sufficient benefit to the District. An application for a District Procurement Card must be approved by the authorizing manager.
1. All Procurement Cards shall be reauthorized every September by the authorizing manager. Business Services will issue a list of current cardholders, the authorizing manager, and the dollar and transaction limits on each card. If a card is not reauthorized by September 30, it shall be terminated. All approved cardholders shall be required to sign a new agreement each September.
2. Every cardholder shall be an employee of the Foothill-De Anza Community College District and shall agree to all terms and conditions as follows established for the issuance of a District Procurement Card.
3. Every cardholder shall sign the card in the presence of a designated District issuer immediately upon taking possession of the card.
4. The cardholder shall be responsible for submitting all receipts to the authorizing manager at the end of each month whether or not are being audited by Business Services. The authorizing manager shall be responsible for maintaining the audit backup for a period of five years.
5. The authorizing manager shall be responsible for complying with all Procurement Card audits requested by Business Services. If necessary receipts are not submitted to Business Services within two weeks of the audit notification, the Procurement Card will be suspended immediately.
6. Business Services shall prepare a quarterly summary of audits completed on Procurement Card accounts and any corrective actions implemented. The summary shall be presented to the Audit and Finance committee as part of the internal auditing system.
7. The cardholder shall be personally liable for inappropriate charges and shall be personally responsible for the settlement of any dispute on any purchase with a vendor. Any inappropriate use of the Procurement Card shall result in immediate termination of the card and appropriate disciplinary action shall be taken in accordance with appropriate contractual and statutory processes.
8. Alcohol cannot be purchased using a Procurement Card. Any purchase which includes charges for meals/food/beverages must be accompanied by an itemized receipt, names of people attending, and purpose of the meeting.
9. The Procurement Card cannot be used for labor services, i.e. independent contractor services, catering (if catering includes labor), or service contracts for equipment.
10. The Procurement Card cannot be used to purchase gas for a personal vehicle; instead, the cardholder should submit a Mileage Voucher or Trip Voucher for reimbursement.
11. High cost, infrequently needed items and equipment that are subject to the district's capitalization policy shall not be purchased with the Procurement Card, but processed through District Purchasing.
12. The Procurement Card will be revoked for the following reasons:
The card is used for personal or unauthorized purposes
The card is used to purchase alcoholic beverages or any substance, material, or service which violates policy, law, or regulation pertaining to the District
The cardholder allows the card to be used by another individual
The cardholder splits a purchase to circumvent a purchase limit assigned to the card
The cardholder purchases equipment requiring capitalization
The cardholder uses another cardholder's card to circumvent a purchase limit assigned to either cardholder
The cardholder accepts a personal gratuity from a vendor
The cardholder uses the card to purchase gratuities and gifts
The cardholder fails to provide the Vice Chancellor, Business Services with information about any specific purchase
The cardholder fails to provide documentation confirming that charges are approved within thirty days of the audit notification
The cardholder fails to provide accounting with expense transfer documentation that may be necessary to record a purchase appropriately
The cardholder does not adhere to any of the Procurement Card policies and procedures
The Procurement Card is the property of the bank, and the bank may at any time revoke card privileges under the provisions of its policies and procedures.
13. Each Procurement Card will be assigned specific purchase limits and restrictions. Cardholders shall adhere to these limits and restrictions.
14. The cardholder is personally responsible for guaranteeing that all charges are for appropriate District expenses, that purchases are within budget limits, and that the purchase does not violate any other law, regulation, or policy of the Board of Trustees. Neither the Bank nor the District assumes responsibility for non-District purchases. The cardholder shall be liable to the District and to the Bank for any non-District purchase.
15. The cardholder shall immediately notify the Vice Chancellor, Business Services if the Procurement Card is lost, stolen, or in the possession of an unauthorized person. A written follow-up, including pertinent information on the cause of the Procurement Card loss or use by an unauthorized person, shall be forwarded to the Vice Chancellor of Business Services in a timely manner.
16. Payment for charges made against the Procurement Card shall be processed as follows:
When the statements are transmitted or otherwise received by the District, the charges against each card shall be charged to that card's designated budget account.
Statements shall be forwarded to a designated administrator at each College or Central Services for review and approval.
Random and scheduled audits are performed each month. Upon request of the Vice Chancellor, Business Services, cardholder shall provide in a timely manner receipts and other documentation to support monthly charges.
17. All charges on the bank statement shall be passed on to the designated cardholder account, including any transaction or annual fees.
I , have read the District's Procurement Card Policy and Procedures and (print name)
agree to abide by them upon acceptance of a Procurement Card issued to me, and that revocation of card authorization will have no effect on obligations outstanding as of the date of revocation.
Signature: ____________________________ Date: ________________________
Recommended Practices for Use of the Procurement Card
Every cardholder shall take reasonable precautions with the Procurement Card. These include, but are not limited to, the following:
1. Keep the card in view after you give it to a clerk. Get it back promptly after they have imprinted it.
2. Avoid signing a blank receipt. Draw a line through blank spaces above the total when you sign.
3. Destroy all carbons and voided (when a mistake was made) receipts. If the clerk has to keep a voided receipt for the store's accounting system, be sure to get a copy.
4. Save all Procurement Card receipts. Upon receiving your monthly accounting report check your receipts and payments against the statement.
5. Immediately report in writing any questionable charges to the Vice Chancellor, Business Services.
6. Never lend your card to anyone.
7. Never leave your card, receipts, or carbons where anyone can pick them up.
8. Never put a card number on a postcard or on the outside of an envelope.
9. Never give your card number over the phone unless you are dealing with a company you are sure is legitimate.
10. Whenever possible, use those vendors identified by the purchasing department.
FREQUENTLY ASKED QUESTIONS REGARDING DISTRICT EXPENDITURES
1. CAN I USE THE PROCARD TO BUY A TANK OF GAS FOR MY PERSONAL CAR WHEN TRAVELING ON DISTRICT BUSINESS?
NO, you must submit a mileage claim and get reimbursed on a per mile basis.
2. CAN I SUBMIT A CLAIM FOR REIMBURSEMENT TO PAY FOR A STAFF RETREAT?
YES, if the retreat has a set agenda and is covering district business, but you cannot use public funds for recreational activities associated with a retreat such as golf, horseback riding, wine tasting, etc.
3. CAN I USE THE PROCARD OR SUBMIT A CHECK REQUEST TO BUY A GIFT FOR AN EMPLOYEE OR STUDENT?
NO, you cannot use public funds to buy gifts for employees or students. Our attorney would say something like this
.Generally speaking, the consideration a public employee receives for his/her diligent service is his/her salary and benefit package, and anything beyond that carries some potential presumption of gift of public funds.
In some instances, the purchase of service awards such as plaques, certificates of appreciation or other such recognition awards for exemplary service can be purchased with public funds, but the test of reasonableness has to be applied.
4. CAN I HAVE ORDERS PAID BY THE PROCARD DELIVERED TO A HOME ADDRESS?
NO, you cannot have items charged to your Procard delivered to a home address or an address that is not a District or campus address.
QUESTIONS TO ASK YOURSELF REGARDING A TRANSACTION
1. Would I be comfortable submitting this request for reimbursement to the Board of Trustees for approval?
2. Could I defend this expenditure to a group of reporters, or the district attorney, or the Audit and Finance Committee?
3. Is this an actual and necessary use of public funds?
(Remember that public funds includes all of General Fund 14, fund 15, 21, 22, 76 Campus Center, Bookstores, etc. These are all the funds we manage with the exception of the Foothill De Anza Foundation)
Mike Brandy, Vice Chancellor Business
11/1/06
|
