Grays Harbor College
Purchasing Office
Purchasing Card Program
7 December 2000
All credit cards, charge cards, or purchasing cards
used at Grays Harbor College, other than those for gasoline, vehicle rental,
travel and telephone, shall be ordered by the President or his designee. The President or his designee shall
institute a system for responsibility, control and distribution of credit
cards, charge cards, or purchasing cards at Grays Harbor College. The control shall be so structured that,
upon the request of the Office of State Procurement, Grays Harbor College will
be able to report the number of cards used, the type of cards used, the amount
of purchases made by card within a stated time and any problems that the
College has encountered. The President
or his designee will establish a credit limit for each card ordered within the
Grays Harbor College aggregate limit.
Any requests for exception to the agency aggregate monetary limit will
be made in writing by the President of Grays Harbor College to the Director of
the Office of State Procurement, who will approve or deny. Dollar limitations shall not apply to
travel-related expenditures such as food, lodging, airfare, and vehicle
rental.
Grays Harbor College has established a purchasing card
program in accordance with Office of Financial Management and Department of
General Administration policies and procedures. The source of the purchasing cards is the state contract.
Grays Harbor College is responsible for any use of the
purchase cards, and the employee using the card agrees that he or she is
personally liable for any unauthorized or unapproved purchases. Grays Harbor College reserves the right to
cancel any card when there is clear evidence of abuse, e.g., a pattern of
unapproved purchases.
The Grays Harbor College purchasing card is used to
procure small dollar amount goods and services. The intent of the purchasing card is to promote purchasing
efficiency, flexibility and convenience.
The limitations on the use of purchasing cards include
the following:
1.
The purchasing
card can only be used to purchase goods and services for Grays Harbor College.
2.
Each employee
using a purchasing card must ensure that purchases made with the purchasing
card comply with all applicable laws, rules, and regulations.
3.
The aggregate
limit for purchasing card purchases for Grays Harbor College is $50,000 per
billing cycle (Please see State Administrative and Accounting Manual, Chapter
45.20.20). The College may request in
writing a higher aggregate amount.
Written approval for such higher aggregate amount must be received from
Office of State Procurement before the new, increased amount takes effect.
4.
The use of the
purchasing card to pay for a purchase does not exempt an agency from the
purchasing requirements set by Office of State Procurement: purchasing requirements
such as mandatory use state contracts are still applicable.
Unauthorized Purchases
1.
No cash
advances from financial institutions.
2.
No personal
purchases.
3.
No purchase of
materials or services from any member of the card user’s immediate family.
4.
No purchase of
equipment, materials, or supplies restricted by Grays Harbor College policies.
guidelines or contractual agreements.
5.
No purchase
of chemicals or hazardous materials, as defined by Federal, State or local
regulations. Hazardous materials may
include but not be limited to chemicals, compressed gases, radioactive
materials, controlled substances, or biological organisms.
6.
No
gifts. No gifts for employees, donors
or volunteers. No gifts of any kind for
any reason.
7.
No airfare.
Internal Control Procedures
The internal control procedures listed below
will be in place prior to applying for a purchasing card.
1.
The President
of Grays Harbor College or his designee will designate the Vice President for
Administrative Services to be the Purchasing Card Manager, who will
manage the program. The management of
the program will include training and the maintenance of a list of Approving
Managers and Card Users.
2.
The Vice
President for Administrative Services will designate Approving Managers
who will implement the program. This
will include authorizing employees to use the Purchasing Card and establishing
authorization controls for each card user.
The Vice President for Administrative Services will review purchasing
card applications and will order the purchasing cards from the contract
provider, completing all necessary contractor-provided implementation forms in
order to establish electronic controls.
3.
Upon receipt of
the purchasing cards, the Vice President for Administrative Services will log
the receipt of the card and will schedule training for the designated Approving
Managers and Card Users.
The Purchasing Office will maintain a master list of all purchasing
cards assigned to Grays Harbor College.
4.
Purchasing
cards will be retained by the Approving Managers in a secure location
and the security of the purchasing cards and the account number shall be
maintained. In order to minimize
liability for unauthorized purchases, the Card User must report lost or
stolen cards immediately by calling the Purchasing Office.
5.
Periodic
program reviews will be conducted to determine if proper and effective controls
and use of purchasing cards are being exercised.
6.
When an Approving
Manager transfers laterally or leaves Grays Harbor College, the Purchasing
Office will be notified. If required,
purchasing cards shall be returned by the Approving Manager to the
Purchasing Office.
7.
Individual
purchase transactions using the purchasing card will comply with all applicable
federal and state accounting and reporting requirements including
1.
Requirements of
the Internal Revenue Service, such as Annual U.S. Information Returns (1099s),
2.
Requirements of
the Department of Revenue related to use tax, and
3.
Expenditure
coding requirements as established by the Office of Financial Management.
Agency Roles and Responsibilities
The Vice President for Administrative
Services, or designee is responsible for
1.
Managing the
Grays Harbor College purchasing card program and ensuring compliance with
Purchasing Card Program requirements,
2.
Developing
policies and procedures to insure that Grays Harbor College meets all state and
federal requirements,
3.
Reviewing
purchasing card applications and ordering cards from the purchasing card
provider,
4. Maintaining
a list of authorized Card Users,
5.
Training
Approving Managers and Card Users and providing advice, direction, consultation
and assistance to Approving Managers and Card Users,
6.
Establishing
procedures for maintaining security of the purchasing card and account numbers,
7.
Designating
individuals to have on-line access to purchasing card transaction detail,
8.
Establishing
card renewal procedures,
9.
Submission of
payments to the Purchasing Card contractor within the required contractual
obligation period.
The Approving Manager, or designee is
responsible for
1.
Designating
Card Users,
2.
Establishing
authorization controls for each Card User.
This includes limits on the types of purchases, dollar limit per
transaction, billing cycle purchase limits, etc.,
3.
Delegating
authority to Card Users,
4.
Keeping the
purchasing card in a secure place,
5.
Using the
purchasing card strictly for Grays Harbor College business, in accordance with
Grays Harbor College policies and procedures,
6.
Recording each
purchase on the transaction log and supplying all information required on the
transaction log,
7.
Ensuring timely
reconciliation of Card User statements,
8.
Reviewing and
approving the weekly Purchasing Card Transaction Log and submitting it to the
Purchasing Office,
9.
Taking
appropriate disciplinary measures with Card Users who misuse their purchasing
cards.
The Card User is responsible for the
following
1.
Keeping the
card in a secure place,
2.
Using the
purchasing card strictly for Grays Harbor College business, in accordance with
Grays Harbor College policies and procedures,
3. Not
splitting transactions in order to remain within the established maximum dollar
limit per transaction,
4.
Reporting lost
or stolen cards immediately to the Purchasing Office,
5.
Notifying the
Approving Manager promptly of any inappropriate use of the purchasing card.
Issuing Purchasing Cards
The authorized employee will complete the
application form and submit it to the Purchasing Office. The Purchasing Office will call the employee
to pick up the card when all controls have been set and the card is received
from the bank.
The employee is personally liable for any
unauthorized or unapproved purchases.
Purchasing Card Transaction Log
Grays Harbor College has developed and will
maintain Purchasing Card Transaction Log forms to record each purchase made
using the purchasing card and any items returned to the supplier. All supporting documents (sales receipts,
credit slips, cash register slips, order forms, receiving reports, meeting
announcements, etc.) will be kept and will be readily available when requested.
It is mandatory for Card Users and Approving
Managers to record each purchase on the transaction log. The transaction log contains all the
information necessary to reconcile bank statements and it identifies the
account coding.
For each purchase made with a Purchasing
Card, a signed supplier sales receipt or purchase slip which
clearly describes the items purchased, the
price, and applicable tax will be retained by the Approving Manager and will be
attached to the transaction log during the reconciliation process. Card Users will return sales receipts and
purchase slips to the Approving Manager within twenty-four hours of the
purchase.
Complete files of the Purchasing Card
transactions will be maintained by the Business Office. These files are subject to audit and
review. The retention schedule for
purchasing documents will be followed.
Reconciling Purchasing Card Transactions
On Monday of each week, the Purchasing Office
will download card statements that display detail transactions made during the
current billing cycle; Approving Managers will receive a copy. It will be the responsibility of the
Approving Manager to reconcile each transaction on the card statement to the
Purchasing Card Transaction Log. The
Approving Manager will secure and retain documentation supporting purchases
charged to the purchasing card. The Approving
Manager will secure and retain documentation supporting any items returned to
the supplier, together with the accompanying credit slips. The Approving Manager will review the
reconciliation before sending it to the Purchasing Office. All documentation will be returned to the
Purchasing Office not later than the Wednesday of the same week. Failure to submit the signed report in a
timely manner may result in withdrawal of the privilege of using the Purchasing
Card.
The Purchasing Office will review the
purchases to ensure compliance with the purchasing procedures and requirements,
and will send all documentation to Accounts Payable.
Handling Disputed Items
Grays Harbor College will immediately notify
the purchasing card provider or the merchant, as appropriate, of any items in
dispute. Disputed items will be
documented in writing on a Dispute Form, investigated, and resolved
within 60 days from discovery of the charge or from the first statement on
which the disputed charge appears.
Purchasing Card Abuse
The Approving Manager, in consultation with
the Vice President for Administrative Services, is responsible for taking
appropriate disciplinary actions, consistent with applicable personnel
policies, for the misuse of the purchasing card.
Receiving
All shipments delivered to the Receiving
Office will be opened and inspected for damage. The shipment will then be delivered to the originator of the
order.
Payment of the Purchasing Card
When processing purchasing card payments,
Grays Harbor College will utilize the single pay method. Under this method, a consolidated
statement of all card user transactions is sent to Accounts Payable for
payment. Payment terms are net thirty
days. Accounts Payable will pay within
fourteen days in order to take advantage of rebate incentives. Late payments can result in late payment
fees of 1% per month on the amount overdue or a minimum of $1.00 under RCW
39.76.
Grays Harbor College will pay the purchasing
card provider by warrant or by electronic fund transfer.
Purchase card rebates for prompt payment will
be deposited in the Logistical Services account.
Audits and Administration
Approving Managers are encouraged to review
reports and bank statements to determine if alternate acquisition methods
should be developed. In many instances
the establishment of recurring or blanket orders may financially benefit Grays
Harbor College
Periodic program reviews will be conducted to
determine if proper and effective controls and use of purchasing cards are
being exercised. Approving Managers
will review and analyze account billings and management reports to monitor
purchases and the Purchase Card program.
The Vice President for Administrative
Services will audit compliance with the terms and conditions of the State of
Washington Contract for Purchasing Card Services, as well as compliance with
Grays Harbor College policies and procedures.
Post Audit
Because purchasing card transactions are
subject to audit for compliance with the terms and conditions of the purchasing
card program, Grays Harbor College will retain all source documents for all
purchases made using the purchasing card.
The retention schedule for purchasing documents will be followed.
Web Purchasing Guidelines
The purchasing card can facilitate the
purchase of goods and services via the web.
Purchases made on the web are subject to the same policies as any other
purchasing card transaction. Employees
will follow these guidelines when using purchasing cards on the web:
1.
Purchase only
from known and trusted vendors.
2.
Make sure the
site is secure.
3.
Use caution
when providing personal information.
The following are some of the issues
employees should be aware of when using the purchasing card on the web.
1.
Reputable
Vendors. Employees must be sure the
vendor is legitimate. Employees should
avoid on-line auction sites and do business only with companies employees know
and trust outside of the web. The best
sites will fully disclose warranties and additional costs (e.g., shipping)
before asking for purchase information.
Some vendors will provide a safe shopping guarantee.
2.
Secure
Communications. When employees switch
from browsing to buying, the vendor should issue a prompt that says the
transaction is being switched to a secure system. A safe site will display a symbol of an unbroken key or a picture
of a closed lock. In addition, the web
address should begin with “https//”.
Look for the letter “s”.
Another way to check that the web site is
secure in Netscape Communicator v4 is to choose the Security menu and select
Security Info. A dialogue box will
state whether the page is encrypted.
Web site security can be checked in Netscape
Navigator v.3 by choosing the View menu and selecting Document Info. A dialogue box will state whether or not the
page is encrypted.
3.
Privacy
Protection. Look for a clearly-stated
Privacy Policy on the vendor’s web site.
If there isn’t one, reconsider divulging personal information.
4.
Desktop
Security. If the vendor site requires a
login/logoff, always log off when finished.