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 Services
613-520-3622
Research Accounting
613-520-3631
Accounts Payable
613-520-3627
[email protected]
Thank you for attending!