Purchasing Card Reviewer
Training
Purchasing Card Benefits
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Convenience
Faster receipt of needed supplies
Reducing purchase orders
More vendors to choose from
Reducing the number of checks issued
Cost savings; * the cost of traditional
purchase order is $89.11, the cost of
using purchasing cards is $21.83
*2007 Purchasing Card Benchmark Survey Results-RPMG Research Corporation
We will cover:
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Cardholder Responsibilities
Restrictions
Purchases Requiring Approval
Changes to Cardholder Information
Reviewer’s Responsibilities
Establishing the Review Process
Leaving the Department
Location of Forms
Purchasing Card Fraud
Contact Information
Cardholder’s
Responsibilities
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Making only authorized purchases
Obtaining a detailed receipt for each
purchase
Completing the transaction log with a
brief description justifying the
purchase
Reconciling the monthly Visa statement
Resolving any discrepancies
Cardholder’s Responsibilities
(con’t)
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Ensuring credits are received
Signing the log
Passing the paperwork to assigned
Reviewer for approval in a timely manner
Note: Reallocation of charges may be the
responsibility of the cardholder. However,
budget management is the responsibility
of the department head.
Reconcile Monthly VISA
Statement
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Compare VISA statement to transaction
log and resolve any discrepancies prior to
the end of the following billing cycle.
Keep all receipts and related paperwork
(VISA statement, signed transaction log)
for (5) five years.
Forward entire package to reviewer within
3 days of completion
Restrictions
Restrictions at Point of Sale
These transactions will be declined by the
bank:
 Purchases exceeding the single purchase
limit or monthly credit limit
 Cash advances
 Restrictions by merchant category
 Travel (Hotels, Airfare, Car Rentals)
 Restaurants, liquor stores
 Entertainment, recreational services
 Personal services such as photographic
studios, funeral services, salons, spas
State and University
Restrictions
These transactions may not automatically
decline, but are not allowed. They will be
monitored for compliance through the review
policy
 Personal purchases
 Cash Equivalents (ex. Gift Cards)
 Gifts, contributions, and donations (such as
alcohol and flowers)
 Alcohol for any purpose
 Allowing someone else to use the card
State and University
Restrictions (con’t)
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Personally accepting kickbacks or
incentives
Entertainment (costs of social activities
and related incidental costs such as meals,
beverages, lodging, transportation, and
gratuities)
Splitting purchases to avoid limit of
delegated authority ($2,500) is prohibited
State and University
Restrictions (con’t)
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Office supplies purchased from vendors other
than the mandatory state contract with Office
Depot
Mandated state contract
Food purchases
Tires
Computers
Purchases Requiring Additional
Approval
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Licenses, contracts, and agreements must be
sent to Purchasing Department for approval.
Cardholders are not authorized signatories for
the University
Telecommunications equipment (antenna,
satellite installations, 2-way radios)
Modifications to building
Changes to Cardholder
Information
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Request changes by contacting the Purchasing
Department
Cardholder Name or Address Change
Default Account Change
Cancel Card
Single Purchase or Monthly Credit Limit Change
(as a minimum, requires department head and
purchasing department approval)
Reviewer’s
Responsibilities
Reviewer’s Responsibilities
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Reviewer is the cardholder’s immediate
supervisor or someone within the cardholder’s
chain of command
Reviewers are required to ensure that charges
are valid, authorized, are within ASU Beebe
Purchasing Card policy and procedures, and are
appropriately documented
A Reviewer may not review his/her own
transactions
Reviewer’s Responsibilities
(con’t)
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At the end of each billing period, the
Reviewer is required to:
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Review the transaction log to ensure all
entries are authorized
Ensure detailed receipt matches the
transaction and description of purchase
Confirm each transaction is authorized and in
compliance with ASU Beebe Purchasing
policies and procedures
Confirm that no one other than the cardholder
gained access to the card information
Reviewer’s Responsibilities
(con’t)
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Sign the monthly transaction log for all
cardholders for whom they review, certifying
all transactions are authorized and that policy
and procedures have been followed
Forward to the Purchasing Department
Reviewer’s Responsibilities
(con’t)
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Retain the records in chronological order in
the department’s office, and securely maintain
the files for a minimum of 5 years.
Establishing the Review
Process
Establishing the Review
Process
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At the discretion of the Reviewer,
departments may require preauthorization prior to cardholder making a
purchase
Establishing the Review
Process (con’t)
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You may have an administrative person
perform initial review of records:
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Ensure a detailed receipt is in the file, and
that the receipt matches the description on
the log
Reconcile credit card statement to the
transaction log
Place receipts in same order as listed on the
statement
Establishing the Review
Process (con’t)
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Ask Questions – have a clear
understanding of why the purchase was
made and who authorized it.
Only the Reviewer (supervisor) can:
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Certify that transactions are authorized (have
you reviewed the receipt?)
Sign the actual transaction log
Leaving the Department?
Leaving the Department?
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If the cardholder leaves the department
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Cardholder or Reviewer Notifies the
Purchasing Department
Brings the card to the Purchasing Department
Reviewer performs complete assessment of all
transactions
Leaving the Department?
(con’t)
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Reviewer to conduct an exit review of
departing cardholder’s transactions
Ensure sensitive equipment (computers,
digital cameras, etc.) are accounted for
Take another look at all records
Trust everyone – review anyway
Leaving the Department?
(con’t)
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If the Reviewer leaves the department
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Another reviewer must be assigned to each
cardholder
Forms
All forms associated with the Purchasing
Card are available online at
www.asub.edu
Faculty Staff
Purchasing
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Purchasing Card Fraud
What is Fraud?
A deception deliberately practiced
in order to secure unfair or
unlawful personal gain
What Fraud is Not
Misuse
Negligence
Misuse
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Restricted purchases made for the institution not for personal gain
Examples of misuse include:
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Purchasing restricted goods and services (ie. Travel
Computers, Office Supplies, Food)
Intentionally splitting a purchase to circumvent
delegated authority (either by the initiative of
cardholder or departmental authority)
Paying unfair and unreasonable prices, not making
good business decisions
Allowing someone else to use the card
Negligence
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Sloppy recordkeeping - not for personal
gain
Unsecured record retention
Lack of any receipt
Missing statements
Lack of additionally required
documentation
Consequences of Misuse and
Negligence
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Report misuse and negligence to the
Purchasing Department
Suspend card until cardholder attends
another training
Institute the “3 strikes, you’re out” rule
Cancel the card
Back to Fraud
 Why
does fraud occur?
 How
does fraud occur?
Why Does Fraud Occur?
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Inattentive Reviewers - cardholders won’t
take the risk if they know their
transactions are carefully reviewed
Fraud is a premeditated, calculated act to
defraud institution
Crime of necessity (personal financial need)
Crime of passion (desperation)
Incident of bad judgment
Program Weaknesses
Program Weaknesses
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Department unnecessarily has too many
cardholders
Reviewers responsible for too many cardholders
Insufficient training
Faltering Reviewer (very dangerous as this
is the first line of defense)
We must have proper mechanisms installed to
detect and halt fraud
How Does Fraud Occur?
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Services paid for, but not received by the
University (usually involves two
individuals)
Personal purchases made, and removed
from institution’s property or shipped to
another location
Personal purchases made in combination
with authorized goods/services
Consequences of Fraud
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Restitution
Termination of Employment
Fines
Criminal Prosecution
Review, Review, Review
Reviewers are the University’s first line of
defense against purchasing card fraud.
Purchasing card fraud is often a symptom of
a bigger personnel issue.
If you suspect purchasing card fraud,
contact the Purchasing Department
Contact Information
Stephanie Creed
sacreed@asub.edu
501 882 4547
Beki Wisdom
bawisdom@asub.edu
501 882 4546