General Information
1. The procurement card is designed to promote purchasing efficiency, flexibility, and convenience. With this card, purchases can be made from recommended vendors that accept credit cards.
a. Some suppliers, especially wholesalers, may not accept credit cards. Verify the supplier’s acceptability of the cards before trying to purchase with any vendor.
2. For vendors used often that do not accept credit cards, the City may be able to work with them to create a more acceptable form of payment such as negotiating a purchasing contract with them or initiating a running ticket. Some cardholder will have the ability to spend more than the $2,500 single transaction limit because they have qualified for the higher purchasing limit for items that the City has a contract for the items being purchased.
a. If this is needed on a card, the Pcard administrator for your area must request this function with Finance. Approval must be granted from Finance before the spending occurs and a separate cardholder agreement must be signed and on file in the Finance office.
3. For those without permission to spend over the single transaction limit as noted above, when using the procurement card, the total payment including freight and other charges must be less than $2,500.
4. Purchases over $2,500 may not be separated into two purchases in order to meet the limitation criteria.
5. The department director or designee will specify the use criteria for each card in their department. This includes the types of purchases, restriction of specific items or vendors, and dollar amount.
6. Unauthorized uses of the procurement card include, but are not limited to:
a. purchases totaling over $2,500
b. inappropriate use of city funds
c. out of town travel or entertainment expenses
d. purchase of controlled or regulated substances
e. personal transactions.
Entity: Cardholder
1. If approved, cards will be issued in the name of the full-time, permanent employee of Salt Lake City Corporation. If other staff needs to have the Pcard, then the Pcard administrator for that area will need to work with Finance to guarantee protections for the card.
2. Every cardholder must have a signed agreement on file with the Procurement Card Administrator in Finance before using their card.
3. Cardholders, card uses, and restrictions will be designated and privileges may be revoked at the discretion of the department head (designee), the Finance Department or the bank.
4. The cardholder shall be personally responsible for inappropriate charges or misuse of the card.
a. This may include, but is not limited to, repayment of the purchases through a payroll deduction on the employee’s paycheck.
5. It is the cardholder’s responsibility to confirm that sufficient departmental funds or budget amounts are available for use prior to making a purchase.
6. It is the cardholder’s responsibility to adhere to any pre-approval procedures their department may have prior to proceeding with a purchase.
7. It is the cardholder’s responsibility to monitor contract changes, updates, and items covered to input the latest, correct information into IFAS. This will include using the correct PEID associated with the contract
8. If your procurement card is lost or stolen, immediately notify the department procurement card administrator and the credit card company within one workday after discovery of the loss or theft of the card.
9. Revoking the procurement card may include, but is not limited to, the following reasons:
a. Personal purchases.
b. Unauthorized purchase of restricted items or from restricted vendors.
c. The cardholder allows the card to be used by another individual.
d. The cardholder makes a purchase for any department other than the department to which he/she is assigned or for which he/she is authorized to purchase except in specific cases such as when the department asks that individual or department/division to make the purchase such as with Internal Service funds within the City.
e. The cardholder splits a purchase to circumvent the purchase limit assigned to the card whether intentional or not
f. The cardholder uses another cardholder’s card to circumvent a purchase limit assigned to either card. Either by physically obtaining the card from the other user or by both users collaborating together to use the card to circumvent the $2,500 purchasing limit
g. The cardholder accepts a personal gratuity from a vendor.
h. The cardholder uses the card to purchase gratuities and gifts.
i. The cardholder repeatedly pays sales tax despite warnings from the Procurement card administrator
j. The cardholder accepts cash for returns, sales tax payments, credits or disputed items.
k. The cardholder fails to provide the department director or designee with receipts or information about any purchase.
l. The cardholder fails to provide documentation confirming that charges are approved within thirty days of a billing cycle.
m. The cardholder fails to provide the department director, designee, or accounting with expense transfer documentation that may be necessary to record a purchase appropriately.
n. The cardholder does not adhere to any of the procurement card policies and procedures.
o. The cardholder leaves the credit card number “on account” with a vendor except in the case of the ghost cards
p. Either the cardholder or the approver does not get a transaction reviewed or approved within 5 business days or repeated misses the Pcard deadline for all items to be reviewed and approved as set by Finance. Multiple infractions of this rule by either the approver or the cardholder can mean the permanent loss of the Pcards and no future participation in the program.
10. The cardholder shall take reasonable precautions with the procurement card. These include, but are not limited to, the following:
a. Reasonable safe-guarding of the card and protection against loss, theft, or unauthorized use
b. Keep the card in view after you give it to a clerk. Get it back promptly after they have imprinted it.
c. Don’t sign a blank receipt. Draw a line through blank spaces above the total when you sign.
d. Verify the purchases are itemized in detail so that correct accounting and coding of the purchases may be accomplished and audited.
e. Destroy all carbons or copies and any voided receipts. If the clerk has to keep a voided receipt for the store’s accounting system, be sure to get a copy.
f. Save all procurement card receipts and back-up documentation.
g. Immediately report in writing any questionable charges to the department administrator.
h. Never lend your card to anyone.
i. Never leave your card or card number, receipts, or carbons where anyone can copy them, photograph them, or pick them up.
j. Never give your card number over the phone unless you are dealing with a company that you are sure is legitimate.
k. Whenever possible, use the established common vendors identified by Purchasing.
11. It is recommended that all items purchased using the procurement card be immediately available for use. Back ordering is discouraged as it requires additional administrative tracking on the part of the cardholder and the departments to ensure goods are not billed prior to receipt.
12. When an item is not available from stock and will be shipped or picked up at a later date, the cardholder must instruct the supplier to include the following information on the shipping document or packing slip:
i. Cardholder’s name, department and phone #
ii. The term “Procurement Card Purchase”
13. The cardholder must instruct the supplier to enclose a copy of the sales slip, invoice, or receipt with each shipment which includes the purchase price, but instruct the supplier NOT to include the card # on the packing slip or any accompanying documents.
14. Telephone, mail, fax, or Internet transactions to acquire supplies or services must be described in sufficient detail so that both parties to the purchase have a clear understanding of what is being acquired.
15. To alleviate additional administrative tracking on the part of the cardholder, the following procedures should be followed:
i. All items purchased during one transaction should be delivered in a single delivery.
ii. All items must be received by month end or by June 30th in order to be included as an expense within the proper month or year-end.
iii. The cardholder must confirm that the merchant agrees to charge the procurement card when shipment (if any) is made so that the receipt of the supplies may be certified on the billing statement.
iv. If the item purchased does not involve a shipment, i.e., conference registration, make sure the supplier sends a detailed, itemized receipt or acknowledgment of the purchase including purchase price. Make sure this receipt does not include the cardholder’s card number.
16. When the item is shipped or picked up at a later date, the cardholder must instruct the supplier to include the following information on the shipping document or packing slip:
i. Cardholder’s name, department and phone #
ii. The term “Procurement Card Purchase”
17. The cardholder must instruct the supplier to enclose a copy of the sales slip, invoice, or receipt with each shipment which includes the purchase price, but instruct the supplier NOT to include the card # on the packing slip or any accompanying documents.
i. It is advised that the cardholder complete a tracking form of telephone, mail, fax, or Internet transactions for reconciliation of procurement card purchases.
18. All transactions should be processed immediately once they are available on-line by cardholder and department.
19. An unusual item that sometimes appears is for international transactions and represents the current exchange rate. If a purchase occurs in a country outside of the United States, there will be an exchange rate fee in addition to the regular transaction. There will be no paperwork, i.e. invoice or receipt, for this transaction so print out a copy of the transaction fee (Works has a print option in the lower right corner once you click on the transaction or you can include a screen print) and attach it to the original transaction that is associated with that fee.
20. The cardholder will compile all receipts and back-up documentation on at least a monthly basis, preferably more frequently at the discretion of the department head
21. Unless otherwise approved by the Finance Director or designee for your department, reconcile on-line with the purchases that have been charged to the card.
a. Employees, who are set up as exempt from reviewing their own transactions on-line, will have other procedures put into place to ensure internal controls for Salt Lake City Corporation are met. By not meeting these procedures used to secure this exemption, the cardholder will have the card revoked and could face disciplinary action by the City.
b. These other procedures must include an acknowledgement of purchase by the cardholder that can be verified by an outside audit.
22. At minimum, this clearing process must take place at month-end on or before the 5th business day of the new month in order to charge departmental purchases to the proper accounting period.
23. The cardholder must perform the following:
a. Review the billing items for accuracy.
b. Provide a complete description of each item purchased on the website under the accounting code called “Description” when you hover your mouse of the blank field.
c. Assign or change account codes to each item, including providing a description of the item purchased
d. Attach original copies of sales receipt(s) or appropriate, complete back up documentation received at the time of purchase or upon shipping to a transaction listing or copy of the billed items.
e. Keep transaction documentation on hand for purchased items or credits that are not yet appearing on the transaction listing.
i. These have not been processed by the vendor and will appear as soon as their processing is complete. If the purchase or credit does not appear in a timely manner, the cardholder should notify the vendor in an attempt to resolve the problem.
ii. If it is not resolved, the cardholder should notify his department head or designee and follow the disputes procedures as outlined in the Returns, Credits or Disputed Items section.
f. Forward this reconciliation to the department head or designee.
g. It is the responsibility of the cardholder to provide their approving department head or designee with the receipts(s) or back up documentation to verify the purchases to the card.
24. The cardholder must notify the department head or designee if unable to reconcile the billing statement. If the cardholder has a problem with a purchased item or a billing that results from use of the card, the cardholder should first try to reach a resolution with the merchant that provided the item. In most cases, disputes can be resolved directly between the cardholder and the merchant. Cardholders should dispute the item on Works and then fill out the form attached (located at the end of the procedures) and mail it in to the address included.
a. Upon completion of the investigation, the cardholder will be notified of the resolution. When considering the availability of funds and budgetary controls, be sure and consider any disputed amounts that may not yet be posted.
25. Procedures for returns, credits and disputed items are as follows:
a. Returns: If a cardholder needs to return a purchased item for any reason, request a “Return Goods Authorization Number” from the supplier.
b. Return the purchased item to the vendor with instructions to credit the card or exchange the item.
c. The “Return Goods Authorization Number” must be clearly indicated on the cardholder’s instructions.
d. Cash returns are strictly prohibited on any and all transactions.
26. The merchant should issue credit for any item that has been discussed and an agreement has been reached for its return.
a. This credit will appear on-line as soon as the vendor processes the transaction.
b. The credit voucher should be attached to the cardholder’s reconciliation along with receipts for purchases.
27. If items purchased with the procurement card are found to be defective or faulty, the cardholder has the responsibility to return the item(s) to the supplier for replacement or to receive a credit on the purchase. If the vendor refuses to replace or correct the faulty item, then the purchase of this item will be considered to be in dispute.
28. The cardholders must use the dispute function on the website or write a letter describing the dispute in detail.
Entity: Department Administrator
1. A department director or designee (department administrator) may request a procurement card for employees within their department.
2. The request form for all new cards must be completed according to the directions of the Finance Division or the Procurement card administrator (attached at the end of the procedures).
3. The information on the request from the department director, department administrator, or designee includes, but is not limited to:
a. The name of the cardholder
b. The default account coding (cost center and object code) of the cardholder’s purchases.
c. The cardholder’s purchase limits
d. The group code for the cardholder’s purchases
e. The cardholders email address
f. The cardholder’s statement address and phone number
4. Upon receipt of the procurement card, the cardholder will be required to personally sign the card as well as a Purchase Card User Agreement (attached at the end of the procedures) in front of the department administrator or designee
5. A copy User Agreement will be given to the cardholder by the department head or designee at the time the card is signed.
6. The signed Purchasing Card User Agreement must be sent to the Finance Division within one business day.
7. Information necessary for noncardholder logins that must be sent to Finance for setup include:
a. The name of the user
b. The group on Works they are to belong
c. The users email address
d. Any Works roles that the user is to have
8. If a procurement card is lost or stolen, immediately notify the department procurement card administrator and the credit card company within one workday after discovery of the loss or theft of the card.
9. A replacement card may be requested at the option of the department head, department administrator, or designee for lost or stolen cards following proper notification by the cardholder to the department head or designee, the Procurement Card Administrator, and the credit card company.
10. The specific uses or card limitation amounts may be changed at the discretion of Finance, the department head, department administrator, or designee. This information must be requested in writing to the Procurement Card Administrator.
11. It is the responsibility of the department head, department administrator or designee to obtain the return of a procurement card from an employee upon termination of employment.
a. If an employee is transferred to a new position within the City, it is the responsibility of the losing department head or designee to recover the card from the employee before they leave employment within the department.
b. The new department head or designee will determine if the cardholder should be issued a new procurement card and the guidelines and restrictions for its use in the new position.
12. To cancel a card, notify in writing the Procurement Card Administrator within one business day unless you have ability to cancel the card on Works yourself in which case cancel the card. Obtain the card from the employee and shred the card.
13. Failure to adhere to the policy and procedures for the procurement cards may result in disciplinary action that includes, but is not limited to:
a. Loss of the procurement cards for the employee for 60 days
Entity: Non-cardholder approver
1. Verify the reconciliation and the account coding for accuracy and budgetary controls.
2. If the reconciliation is correct, approve the purchases on or before the 5th business day of the new month
a. This approval will debit the department’s expenditure accounts and will credit the clearing account used by the Procurement Card Administrator to make the payment.
b. Failure to reconcile, approve, and charge departmental expenses in a timely manner may be cause for revocation of the entire group’s (as defined in the procurement card hierarchy) procurement cards.
i. On the 6th business day, Finance will suspend all cardholders whose transactions are not reviewed and approved even if this is not the fault of the cardholder.
ii. Multiple infractions of this rule by either the approver or the cardholder can mean the permanent loss of the Pcards and no future participation in the program.
3. Approving officials, because of their knowledge of the job responsibilities of cardholders, are required to:
a. Determine if items purchase were authorized, properly received, and have been coded to the correct cost centers and object codes.
b. Resolve any outstanding issues or questions regarding cardholder purchases. If the approving official is not satisfied that the purchase was necessary or proper and for official use, the cardholder may be required to provide a credit voucher proving item(s) had been returned for credit. This will not relieve the cardholder from further disciplinary actions or revocation of the card if deemed necessary by the department head.
a. Determine that budgetary controls have not been exceeded.
b. Determine that receipts and other back-up documentation are complete and verify the cardholder’s approval of purchases.
c. Maintain the statements and all attachments in accordance with established archival record retention guidelines, making them available for internal or external audit, accounting, or purchasing department review. The retention period for these records is the current fiscal year plus four complete prior fiscal years. Attachments can include the cardholder copy of individual charge slips, any receipts, invoices, receiving documents, packing slips, work orders, correspondence, credit receipts, or anything else providing information about, authorization for, or justification for the purchase. Statements and attachments must be maintained in such a manner as to guarantee that procurement account numbers on these documents are secure. The department’s files will be the only source for documentation supporting all cardholder’s purchases and must be available for inspection and/or audit without notice. These files must be retained per current laws regarding this type of document which is currently 4 years (fiscal years) plus current. Then dispose the items in a responsible manner so credit card information is not lost or leaked.
d. Ensure that the cardholder reconciles purchases and that they are approved on-line in a timely manner on or before the 5th business day of the new month. Established guidelines should require a monthly reconciliation at minimum, but more frequent approvals may be made considering the availability of information on line and receipt of back up documentation from the cardholder. See cardholder responsibilities 19 a. and b. above for applicable exception to on-line cardholder review.
e. Any purchase which needs to be charged to another department other than those cardholder’s is set up to purchase for will require a journal entry or interdepartmental billing which is approved by the receiving department. This should only be necessary in the event of an error or mis-coding as cardholders may not purchase items for departments other than their own authorized area.
4. Unless otherwise approved by the Finance Director
or designee for your department, the non-cardholder approver must be the
supervisor of the cardholder or an authorized signer of financial
documents. The list of authorized signers for each department is
maintained by the Finance Division of Management Services.
a. If the non-cardholder on-line approver is not the supervisor or an approved signatory authority, other procedures will be put into place to ensure internal controls for Salt Lake City Corporation are met. By not complying with these procedures used to secure this exemption, an entire group could have all cards revoked and could face disciplinary action by the City.
b. These other procedures must include an approval of
purchase by the supervisor or a signatory approval that can be verified by an
outside audit.
5. Under no circumstances may an approver who is also a cardholder approve his or her own transactions.
6. Failure to adhere to the policy and procedures for the procurement cards may result in disciplinary action that includes, but is not limited to:
a. Loss of the procurement cards for the employee for 60 days
Entity: Finance Department
1. A billing statement will be generated on a monthly basis by the credit card company.
2. All transactions should be once all transactions are reviewed and approved on or after the 6th business day of the new month.
3. Payments to the bank of the total City invoices will be authorized and made by the Finance Division on a monthly basis to avoid any service or interest charges. This payment will be made to a procurement card clearing account.
4. On an annual basis, the Procurement Card Administrator will provide each department with a list of procurement cards issued to employees of that department.
a. Departments will conduct a physical inventory of the procurements cards and will provide a signed report to the administrator of the results of that inventory.
b. In addition, internal or external auditors or the administrator may conduct a complete or partial inventory of the cards as deemed necessary to insure internal and security controls.
Dispute Form for purchases that have posted to Works
For Salt Lake City Corporation cardholders
This will start the process for a dispute and this form will give Bank of America the information it needs to resolve your issue. This needs to be done within 60 days of the statement on which the error appears.
Complete this form and mail it to:
Bank of America
PO Box 53101
Phoenix, AZ 85072-3101
if you cannot locate an address for disputes on the back of your monthly statement. Remember to include any backup documentation you might have about the error and put a copy of the completed form with the paperwork in your files. If no paperwork exists for your files, the copy of this form becomes the documentation to keep in your files.
Company name: Salt Lake City Corporation
Employee name:_____________________________________
Account number (please include the full 16 digit account
number):_____________________________________________
Dollar amount of the error: $__________________________
Description of the error and/or why you believe there is an error:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
New cardholder request
For procurement cards
First
name:
MI: Last
name:
User name:
Email
address:
Group name on works:
Street address:
City:
State:
Zip:
Phone number: (
_)
Name on card (this
should match any id presented at time of purchase):
Monthly credit limit: $
Single transaction limit (if you want it
to be less than $2,500): $
Default cost
center:
Default object code:
Salt Lake City Corporation
Purchase Card User Agreement
You have been chosen to participate in the Purchasing Card Program used by Salt Lake City Corporation because you often need to purchase goods and services while conducting City business. The purchase card is a convenience that carries responsibilities along with it. The card is issued in your name but the card is City property and is only for use in conducting City business. Your signature below verifies that you have read and understand the guidelines below and agree to comply with them.
1. The purchasing card is provided to employees based on their need to purchase business related goods and services. A card may be revoked at any time based on change of assignment or location. The card is not an entitlement nor reflective of title or position.
2. The card is for business related purchases only; personal charges are not to be made against the card.
3. You are the only person entitled to use the card and are responsible for all charges made against the card.
4. Improper use of the card can be considered misappropriation of City funds which may result in disciplinary action, up to and including termination.
5. All charges are billed directly to and paid directly by the City. Any personal charges on the card could be considered misappropriation of City funds because the employee cannot pay the Bank directly.
6. Cardholders are expected to comply with internal control procedures in order to protect City assets. This includes keeping receipts, reconciling monthly statements and following proper card security measures.
7. Cardholders are responsible for reconciling their purchasing card purchases and resolving any discrepancies by contacting the vendor including any amounts paid for taxes unless determined differently by your department’s Financial Director or designee.
8. Each account is assigned a cost center by management and purchases may be automatically charged to that cost center. If changed, a new cost center or object code does not affect past or future charges, only the current transaction.
9. A stolen or lost card should be reported immediately by telephone to Bank of America and then to the departments purchasing card administrator.
10. A cardholder must surrender the card upon termination of employment (i.e. retirement or voluntary/involuntary termination). At this point, no further use of the card is authorized.
11. I have attended training in Procurement card Policies and Procedures and agree to comply with all policies and procedures.
I have received a purchasing card ending with (last 4 digits only)
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Cardholder sinature |
Manager or designee signature |
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Cardholder printed name |
Manager or designee printed name |
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Date |
Date |