Agenda
 Introduction
 Audit findings
 Audit Recommendations
 How can we help?

Introduction
 PCards introduced 1 st 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 25 th of each month or if the 25 th 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
Operating
Research
Transaction
$5,000
$1,000
Monthly
$20,000
$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 accounts_payable@carleton.ca

Thank you for attending!