P ROCUREMENT C ARD
P ROGRAM
Procedures
New Hanover County Schools – Purchasing Department
June, 2016
PROCUREMENT CARD PROGRAM
EFFECTIVE JUNE, 2016
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SIDE BARSIDE BAR INTRODUCTION
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The procurement card program provides a more rapid process for small purchases while
reducing paperwork and handling costs. Using the Procurement Card Purchasing System
(PCPS) dramatically reduces the payment cycle from the traditional requisition process
which includes, pricing, inquiry, order placement, delivery of goods, invoice and voucher
review while increasing efficiency. This program will eventually eliminate the need for petty
cash, decrease check requests and reduce the administrative cost of issuing small dollar
purchase orders.
The Procurement Card is a Bank of America Visa Card issued in the employee’s name with
“New Hanover County Schools” name clearly indicated on the card.
DEFINITIONS
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Administrator: the person (Purchasing Director/or designee) responsible for all program
details, including all cardholder inquiries
Budget Manager: the person (Principal, Department Head or designee) who reviews and
approves a cardholder’s monthly statement
Cardholder: personnel who have been issued procurement cards and authorized to make
purchases in accordance with these procedures
Requisitioner: an employee who has a need for materials that can only be fulfilled by a
vendor (Under the PCPS, a requisitioner may be a cardholder.)
Single Purchase Limit: a dollar amount limitation of purchasing authority delegated to a
cardholder (This dollar limit may vary from cardholder to cardholder.)
Monthly Billing Statement: the monthly listing of all transactions by the cardholder,
issued directly to the cardholder (This statement is also titled Cardholder Activity.)
Vendor: a company from which a cardholder is purchasing materials under the provisions of
this procedure
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PROCUREMENT CARD PROGRAM
EFFECTIVE JUNE, 2016
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RECEIVING A PROCUREMENT CARD
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Budget managers may propose personnel to be cardholders by completing a Procurement
Card Agreement and Enrollment Form which is posted on the Purchasing website. This form
indicates all information required to add a cardholder in the procurement card system. Email form to [email protected].
The proposed cardholder shall be issued a copy of these procedures and shall be required to
sign the Procurement Card Employee Agreement and Enrollment form. The agreement
indicates that the cardholder understands the procedures and other responsibilities of a
PCPS cardholder.
AUTHORIZED PROCUREMENT CARD USE
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The procurement card the cardholder receives has his/her name embossed on the card and
shall ONLY be used by the cardholder. No other person is authorized to use that card.
While cardholders may make transactions on behalf of others in their school or department,
they remain responsible for all use of the card.
PROCUREMENT CARD USES
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The procurement card may be used for the purchase of instructional and office supplies, food
purchases, on-line software subscriptions (follow existing Technology software approval
procedures), apps and other small dollar purchases when the issuance of a purchase order
would be comparatively costly and inefficient. Computers, laptops, i-Pads, and printers shall
not be purchased using the procurement card.
Travel in accordance with the Travel Procedures published by the Finance Department and
included in the Budget manual is allowed. Registration, airline tickets, rental cars, hotel
reservations and gas is permitted.
Meals shall not be purchased with the procurement card while in travel mode. Complete the
Employee Expense Reimbursement form on the Finance website to request travel advance
funds or employee reimbursement for meals. Submit Employee Expense Reimbursement
directly to Finance.
Refer to the Procurement Card Procedures Manual for Budget Manager and Cardholders for
detailed requirements regarding the purchase of food, snacks and meals.
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PROCUREMENT CARD PROGRAM
EFFECTIVE JUNE, 2016
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PROCUREMENT CARD RESTRICTIONS
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The procurement card shall NOT be used for the following:
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personal purchases or identification
a single purchase that exceeds the cardholder’s single purchase limit-do not divide
into multiple transactions to circumvent single transaction limit
cash advances (telephone calls/monthly service)
gift cards
contractor payment
computers, laptops, i-Pads, printers
entertainment
meals while in travel mode-see Procurement Card Uses
UNAUTHORIZED PURCHASES
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A cardholder who makes unauthorized purchases or carelessly uses the procurement card
may be liable for the total dollar amount of such unauthorized purchases, plus any
administrative fees charged by the bank in connection with the misuse. The cardholder will
also be subject to disciplinary action.
BUDGET MANAGER RESPONSIBILITIES
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The budget manager shall:
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propose personnel to be cardholders by completing and submitting the Procurement
Card Employee Agreement and Enrollment Form
ensure funds are encumbered on a purchase order for each cardholder prior to all
purchases (P-Card PO)
maintain an internal approval process to include an authorization form to be signed
approving individual cardholder purchases prior to all purchases using the
procurement card (may use a standard requisition to be kept on file at school or
department; do not submit to Purchasing)
be responsible for maintaining sufficient funding encumbered on P-Card POs for all
cardholders by requesting increases as needed prior to purchases-increases for items
already purchased are not permitted
review and reconcile cardholders monthly billing statement and transaction log
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PROCUREMENT CARD PROGRAM
EFFECTIVE JUNE, 2016
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request the Purchasing Director/designee cancel a cardholder’s card (e.g. terminated
or transferred employees and for loss of procurement card privileges)
read the Procurement Card Procedures Manual for Budget Manager and
Cardholders for all detailed processes to comply with the Budget Manager
responsibilities
the procurement card will be revoked if the Budget Manager does not follow all
procedures
CARDHOLDER RESPONSIBILITIES
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The cardholder is responsible for:
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using the procurement card for legitimate business purposes only
maintaining the procurement card in a secure location at all times
not allowing the use of their card by other individuals
obtaining the Budget Manager’s approval prior to all purchases
ensuring sufficient funds are encumbered for all purchases by working with Budget
Manager to obtain available funds encumbered and notifying Budget Manager when
funds encumbered are almost depleted
adhering to purchase limits and restrictions
obtaining and maintaining detailed receipts for all purchases
reviewing, reconciling and submitting to the Budget Manager monthly billing
statement and transaction log and submit to the Budget Manager monthly with
detailed receipts for approval
returning procurement card to the Purchasing Director/designee if requested to do so
for any reason
reading the Procurement Card Procedures Manual for Budget Manager and
Cardholders for all detailed processes required to comply with Cardholder
responsibilities
the procurement card will be revoked if the Card Holder does not follow all
procedures
MAKING PROCUREMENT CARD PURCHASES
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Procurement card procedures allow purchases from the best available source but the
transaction and spending limits should not be violated. This implies the possibility of not
comparing sources or competition between vendors. However, it is also policy to seek
competition and the lowest prices within the parameters of quality and delivery.
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PROCUREMENT CARD PROGRAM
EFFECTIVE JUNE, 2016
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Whenever making a procurement card purchase, the cardholder should check as many
sources of supply as reasonable based on the situation and related cost-benefit to assure best
price and delivery.
Cardholders must exercise good judgment and act responsibly when using procurement cards
and shall ensure all purchases are made in accordance with the Procurement Card Program
Procedures.
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