P-CARD
BEST PRACTICES AND
COMMON PITFALLS
Frances Guzman
Deputy Director for Business Operations and Finance Support
Region One Education Service Center
fguzman@esc1.net
© 2012, Region One Education Service Center
REASONS FOR STARTING
PROGRAM
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Tight controls over who/what/where and HOW much employees
can purchase
Reduced paperwork resulting in lower cost per transaction
Simplifies buying process
Reduces check volume
On-Line purchases
Removed need for petty cash in schools
Hotel/Airfare reservations
Vendors that don’t accept district Purchase Orders
Rebates on purchases
© 2012, Region One Education Service Center
BEST PRACTICES
District Policy/Procedures Manual on the use of
credit cards
Users must read and sign an agreement before receiving their card
Handbook given to all cardholders during training session that outlines safeguards
When a Purchase Order is required for purchases using the P-card
Those cases where a Purchase Order is not used (limited) - for example individual
travel related expenses
o In most cases a credit card receipt or billing statement is not sufficient
documentation; an itemized receipt should be obtained - exceptions: gas receipts
which should include the amount of fuel disbursed and the vehicle license number
o If district vehicles are being fueled using a P-card then a vehicle log should be
maintained that includes mileage, date, fuel amount and cost
o Employees should be aware personal expenses should not be charged to the
district’s credit card other than authorized, reimbursable expenses related to
district travel
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© 2012, Region One Education Service Center
BEST PRACTICES
District Policy/Procedures Manual on the use of
credit cards (cont.)
o A good policy is when the employee checks out a credit card they must return with
receipt(s) and PO copy if warranted or be responsible for the charge
o Credit limits and restrictions - Gift Cards, personal purchases, PayPal, ATMs
o P-cards can be set to accept or restrict certain Merchant Category Codes (MCC) –
example: restrict access to ATMs
o Sales tax is not allowed except for restaurant/gas/out of state purchases; vendor
must credit back the sales tax
o Specific transactions governed by specific requirements, example – Restaurants
(itemized receipt, no sales tax, no gratuity, no alcohol)
o How to handle disputes, returns, credits
o Handling fraudulent activity
o Processing transactions – proper budgets, receipts/invoices, approvals
o End of year processing – 1099s, P-card cutoff
© 2012, Region One Education Service Center
QUESTIONS?
Lori A. Ramos
Purchasing Coordinator
Region One Education Service Center
laramos@esc1.net
Marc David Garcia
Purchasing Specialist
Region One Education Service Center
mdgarcia@esc1.net
© 2012, Region One Education Service Center