National Bank of Canada MasterCard
Corporate Purchasing Card (P-Card)
System (CPS) Manual
October 3, 2014
I. System Objective
The primary objective of the Corporate P-Card System (CPS) is to provide a convenient, cost-effective
and efficient method of procuring and paying for lower dollar value goods and services by; simplifying
the procurement process, improving order cycle time, reducing paperwork, expediting vendor
payments and empowering faculty and staff. Departments may use Corporate P-Cards for the
procurement and payment of goods and services where it is efficient, economical and operationally
feasible to do so. System usage must comply with the procedures and policies contained in this
document.
II. Key Areas & Responsibilities
CPS Administration (Supply Management Services)
Responsible and accountable for the overall administration of the system, including co-ordination with
the National Bank for card issuance, changes and deletions; web access and security for
reconciliation & reporting; and monitoring of the system for procedural compliance. Provides
support, assistance and training to Site Co-ordinators and provides assistance for the training of
individual Cardholders, as required.
CONTACTS:
Brianne MacNeil
CPS Administrator
492-7366
FAX: 492-0607
Site Co-ordinators (Department Head, APO or Designate)
Responsible and accountable for administration of the system at the departmental level, including coordination of the addition/issuance and deletion of cards, in co-operation with CPS Administration,
and the distribution and/or reconciliation of monthly individual billing statements. Monitors
Cardholder compliance with the CPS Manual. Determines reporting hierarchy for the department and
ensures accuracy of information. Trains and provides assistance to Cardholders regarding system
instructions and procedures. Acts as a departmental focal point for Cardholder and management
feedback.
Cardholder - “Permanent” University Employee (Full-time, part-time or recurring term of regular or
trust employment status)
Responsible and accountable for security of their card, use of their card in accordance with the CPS
Manual and any additional restrictions/conditions that may be imposed by their Site Co-ordinator.
October 3, 2014
III. General Procedures and Requirements - Cardholder
Each Card has a unique number and is issued to an individual. That individual is
responsible for the card and accountable for the following:
Cardholder Agreement Form: Responsible for accepting and adhering to the policies and
procedures in the Corporate Purchasing Card (CPS) Manual.
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Read the CPS Manual and sign the Cardholder Agreement Form
Return the form to the Departmental Site Coordinator
Site Coordinator will forward to Supply Management Services
Card Security
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Cards must be kept in a secure location when not in use.
Card Cancellation: Cards may be cancelled for the following:
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After one year of non-use
Extended leaves of more than three months
Non-compliance
Loss or theft of card
Transfer to a new department
Retirement or resignation
Report a lost or stolen card:
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Cardholder is responsible for advising the National Bank of Canada to report the loss
and identify possible fraudulent charges.
Notify the Departmental Site Coordinator and the Card Program Administrator
National Bank 1-800-363-3339
Document Retention:
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Responsible for retention of detailed original receipts and packing slips for file/record
maintenance and audit purposes.
A Lost/No Receipt Declaration Form will be accepted as a substitute in lieu of a detailed
receipt, however a lack of supporting documentation and excessive use of Lost/No
Receipt Declaration forms, may result in card cancellation.
Billing Statements:
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October 3, 2014
Promptly review individual billing statements to verify charges and make any changes
to the default accounting codes assigned to the card.
Attach all card slips and supporting documentation (e.g., packing slips, detailed store
receipts, invoices) for verification with your individual billing reports.
Sign the billing statement, attach all supporting documents and return to the Site
Coordinator or designate for online reconciliation prior to month end.
GST self assessment must be performed for purchases of imported services and
intangibles that do not physically cross the border. See link below:
http://www.finance.ualberta.ca/guide/?redirect=370/32781
Signing Authority: It is the Cardholder’s responsibility to ensure that all required
signatures are obtained as outlined below:
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Cardholder must sign billing statement.
Internal Control Approval Signature is required.
Cardholders who are Site Co-ordinators must acquire direct supervisor approval
signature on their billing statement.
Cardholders must not review and approve the billing statements for individuals to whom
they report. One-over-one authorization must be acquired.
One-over-one authorization must be acquired for any travel/hosting related transactions.
Disputed Items:
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Attempt to resolve the disputed item directly with the vendor.
Contact CPS Administrator in Supply Management Services within sixty (60) days of the
transaction date if unresolved with the vendor.
Purchasing Policies and Procedures:
Cardholder’s must adhere to the procedures as set out in the Parent Policy: Supply of Goods
and Services Policy found on the U of A Policies and Procedures Online (UAPPOL) website.
https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/DispPol.aspx?PID=79
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Customs Import Procedure
Customs Permit Procedure
Purchase of Restricted Items Procedure
Acquisition of Foreign Goods and Services Procedure
Retention & Filing Procedure
Signing Authority and Approval Procedure
Non-Compliance: Cards may be cancelled for the following infractions at the discretion
of Supply Management Services:
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Splitting charges to circumvent card limits
Personal purchases
Purchasing restricted items
Lack of signatures and receipts on Cardholder statements
Please note: The credit card “chit” is not considered a receipt. Details of the purchase must
be available for audit purposes.
October 3, 2014
IV. Ordering and Operational Procedures - Cardholder
Ordering:
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The card must be used only to make authorized, official University purchases.
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Purchases must be made within the established card limits. Splitting transactions in
order to circumvent the transaction limit is strictly prohibited.
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Instruct the vendor to ship the goods to Supply Management Services - Central
Receiving and to clearly identify the cardholder name, department name and address
information on the box and packing slip.
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Record all purchases made with the card (See Appendix B).
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Some Vendors may require the “Billing Address” of the card:
University of Alberta
77 University Campus
Edmonton, AB T6G 2R3
Brianne MacNeil
780-492-7366
Examples of Allowable Purchases:
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Goods and Services within the established limit of the card
Items not on the Restricted List
Internet orders (with detailed backup)
Subscriptions, Memberships, Conference Registrations (not including Accommodation)
Hospitality (with internal departmental approval)
Taxi cabs (with internal departmental approval)
Restricted Purchases
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October 3, 2014
Items on the Acquisition of Foreign Goods list (see next page)
Professional Expense Allowance purchases
Travel Expenses (Airfare, Accommodation, meals, Vehicle Rental)
Items of personal use
Cash advance
Donations and Sponsorships
Maintenance Contracts and Lease Agreements e.g. Ongoing equipment maintenance and
Software license agreements
Contracting for services with individuals and small business
Equipment Rentals exceeding thirty (30) days
Services provided by Facilities and Operations i.e. construction/building maintenance
Gifts of Alcohol/Alcohol at Staff functions
Controlled Substances
Radioactive and infectious disease materials
Laser and X-Ray Equipment
Compressed Gases
Pressure Equipment
Commercial Lab Alcohols
Laboratory and research animals
Acquisition of Foreign Goods
Restricted or Controlled goods entering Canada from USA and International locations are not to be ordered
using the Corporate Purchasing Card “regardless of the value” of the goods.
These commodities may require permits, licences or certificates which must be obtained prior to the order
being placed with the foreign supplier. A Purchase Requisition must be used to order the following types of
commodities from foreign suppliers
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Live Animals, Fish and Plants (order lab animals through HSLAS)
Animal Embryos and Semen
Human and Animal Organs, Tissues and Sera
Human, Animal and/or Plant Pathogens and Toxins
Food Products (i.e. Seeds, Soil, Lumber, Turkey, Chicken)
Fertilizers
Carbon Steel and Specialty Steel Products (i.e. Stainless Steel Wire)
Textile and Apparel Products
Rough Diamonds
Explosives, Propellants, Safety Flares, Pyrotechnics
Commercial Alcohols
Radioactive Isotopes
Precursor Chemicals and Controlled Drugs or Narcotics
Energy-Using Products (i.e. Furnaces, Boilers, Heaters, Pumps, Air Conditioners)
For more information on the policy “Acquisition of Foreign Goods” and “Gifts, Donations and
Sponsorships” go to:
https://policiesonline.ualberta.ca/PoliciesProcedures/Pages/DispPol.aspx?PID=79
October 3, 2014
IV. Standardized Departmental Procedures – Site Co-ordinator
A Department Head or Administrative Professional Officer (or appointed representative) must be
designated as the Site Co-ordinator to administer the system at a departmental level and to authorize
and control the issuance of departmental cards. Departments using Corporate Cards are responsible
for any charges relating to their cards. Liability for charges rests with the department, not the
individual Cardholder.
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Site Co-ordinators are responsible for ensuring that every Cardholder is informed about
the system instructions and procedures including credit and transaction limits of their
card, their responsibilities and the restrictions regarding the use of the Corporate Card.
Card Applications:
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Applications may be found in the forms cabinet at www.sms.ualberta.ca. All card
requests are to be directed to CPS Administration.
The card limits currently default to $5,000 CDN per transaction and $15,000 CDN
monthly credit. These limits may be adjusted based on historical spend or non-use. The
single transaction limit maximum is $5,000.00 but may be lower.
Card Cancellations:
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Responsible for notifying CPS Administration when a Cardholder leaves a Department and/or
the University or of extended absence leaves exceeding a three-month period.
Cards can remain “live” during Sabbaticals as long as cardholders can commit to complete
and timely compliance with the requirements of the CPS Manual.
Responsible for obtaining the card from the Cardholder prior to their departure. Cards not
used in a twelve consecutive month period will be cancelled.
Lost or Stolen Cards:
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The Department could be liable for any unauthorized use of the card until notification of loss,
theft or cancellation has been reported to the card company by the Cardholder.
Lost or stolen cards must be reported to both CPS Administration and the National Bank.
The Bank can be notified 24 hours, seven days a week at the following telephone
number:
1-800-363-3339
Monthly Reconciliation:
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Responsible for ensuring appropriate expensing of charges.
If a speedcode or account is incorrect or inactive, charges will be automatically processed
against the speedcode that has been designated as the default
In the case of the default not being valid, charges will be processed to the departments
general operating.
GST self assessment must be performed on imported services and intangibles
Internal Controls:
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October 3, 2014
Responsible for ensuring those adequate internal controls are in place at the departmental
level by ensuring these procedures are followed.
Central filing is required for compliance monitoring purposes.
Signature Approvals:
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Site Co-ordinators must ensure that appropriate signatures are obtained as follows:
a) The Cardholder must sign billing statement.
b) Internal Control Approval signature is required. Site Co-ordinator’s must acquire direct
supervisor approval on their billing statements.
c) Site Co-ordinators must not review and approve the billing statements for individuals to
whom they report. One-over-one signature must be acquired.
d) One-over-one signature must be acquired for any travel/hosting related transactions
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Receipts for hosting expenses must indicate who was hosted on the back of the detailed
receipt. A “Chit” is not considered a receipt.
Travel expenses apply to existing cards only, open for blocking template Alberta 5 or Alberta
10, and must indicate purpose of travel for one-over-one approval.
Please note: Blocking templates Alberta 5 and Alberta 10 are no longer an available option to
Corporate P-Card holders.
Please note: Billing statements that require signature approval outside your department (e.g.
Dean’s that require one-over approval from a Vice-President) must have an internal control
signature prior to leaving the department. These statements must be sent in a timely manner,
every month, within four (4) weeks of cycle date.
Records Retention:
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Corporate P-Card billing statements, complete with supporting documentation (i.e. detailed
receipts, packing slips, charge card slips) must be retained centrally within the department
for audit purposes and to facilitate reconciliation and account verification.
Retention period for these records is six years plus current year.
A Lost/No Receipt Declaration Form must be completed if there is no detailed receipt. This
includes restaurant receipts for hosting purposes. Excessive use of Lost/No Receipt forms
can result in Card cancellation.
Detailed information regarding records retention can be found in the Guide to Financial Management
under Retention and Filing of Source Documents.
Lost/No Receipt Declaration Forms can be found in the Forms Cabinet at www.sms.ualberta.ca
Under the Procurement and Contract Management Forms.
Asset Management
Units are required to track the following in an equipment asset register:
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Portable items under $5,000 which the unit deems prone to loss or theft such as digital
video cameras, laptops, etc.
Every piece of equipment to be tracked as described above must have an equipment asset tag
attached to it. Units may choose to track any other items.
Units are not required to track furnishings assets.
October 3, 2014
VI. Compliance Monitoring
Annual Review:
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Assists the CPS Administrator in performing an annual review of cardholder activity, limits
and status. Results must be reviewed and signed off by Departmental Management.
Compliance Monitoring:
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In addition to the regular review of system reports a representative from Financial Services
will conduct detailed reviews with the assistance of each Site Co-ordinator to determine
whether the system objective has been met.
The process will also include a review of departmental internal control systems and an
evaluation of departmental and Cardholder satisfaction of the system.
Accessibility and availability of supporting documentation and receipts must be located
centrally for internal control and audit purposes, individually and consecutively labeled by
month/year with the corresponding billing statements and supporting documents.
An audit of selected transactions will be performed on an on-going basis and will include the
following:
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Review of receipts (detailed original receipts) and supporting Documentation
Restricted items
Split transactions to circumvent card limits
Personal purchases
Application of correct GST code and amount
Appropriate signature approvals (for departmental internal controls)
Central document retention (receipts, packing slips, statements)
Card activity level
V. Non-Compliance
CPS Administration or the Site Co-ordinator may cancel cards at any time. Non-compliance can be
reviewed on an individual or departmental basis. Supply Management Services reserves the right to
remove all cards at a departmental level for non-compliance.
Cards may be cancelled for the following at the discretion of Supply Management Services:
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Splitting charges to circumvent card limits
Personal Purchases
Lack of appropriate signature approvals
Consistent lack of receipts and supporting documentation
Infrequent or non-use of the card
Purchasing restricted items
If the Department suspects that a card is being used fraudulently, please contact Barb Rumball in Supply
Management Services at 492-7366 or Brianne MacNeil at 492-4680.
October 3, 2014
Appendix A – Electronic Reconciliation
Procedures and Steps in a Standardized Administrative Process
1. On the first working day following the 16th of the month, the billing statements are made available
via the web for online reconciliation. An email notification will be sent from Supply Management
Services to the designated reconcilers indicating cut-off dates for making any changes to transactions
prior to posting to the GL.
2. Billing Statements are to be printed and distributed to the cardholders by the Site Co-ordinator or
designate.
3. Cardholders are to indicate where the charges should be expensed, any GST changes to code, or
amount, and attach all receipts. The billing statement must be signed by the Cardholder and
returned to the Site Co-ordinator or designate in a timely manner to allow the completion of the
online reconciliation of the charges prior to month end.
4. GST Self-Assessment must be performed on imported services and imported intangibles. E.g. data
base services, licenses/maintenance agreements, electronically downloaded software, electronic
copies of books, music etc. Go to:
https://policiesonline.ualberta.ca/PoliciesProcedures/Procedures/Financial-Controls-Self-AssessmentProcedure.pdf
5. Obtain signatures on Cardholder statements as specified in the CPS Manual.
6. Files must be located in a central location, individually and consecutively labelled by month/year
with the corresponding billing statements and supporting documents. This will provide easy
access and availability for the system reviews.
October 3, 2014
Appendix B - Log Sheet
U OF A Corporate P- Card System (CPS) Transaction Log Sheet
Cardholder Name _____________________
Order Date
Corporate P-Card
System Manual
Supplier
Card Number __________________________
Description
Price
GST
Amount
GST
Code
Last Update: June 2013
Default SpeedCode/Account Number
________________
SpeedCode/Account
Change
Notes
Received
Date
Billing
Report
Date
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