Internet Purchases by sre11677

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                            THE OHIO STATE UNIVERSITY AT NEWARK,
                                PROCUREMENT CARD PROGRAM
                                INTERNAL CONTROL STRUCTURE

A. INTRODUCTION / OVERVIEW

As a major public institution, The Ohio State University is held to a high level of accountability for its
business practices. Accordingly, every reasonable effort must be made by all employees to ensure that
funds are used in a responsible and appropriate manner consistent with the university’s mission, applicable
law, and ethical practice.

Employees who have been delegated the authority and privilege to purchase approved goods on behalf of
the University using a PCard must agree to abide by: all State laws, University Board resolutions, PCard
Business Rules/Policies, University Expenditure Policies and Travel Policies.


B. PROCESSES:

Standard Purchasing Card Procedure:

1. Purchasing cards must be stored in a secure location;

2. A log sheet must be maintained for each card indicating who has taken the card, the date and time the
card was taken, what was to be purchased and the date and time the card was returned. The individual
logged as having the card is responsible for all activity that occurs during that time.

3. Complete a Credit Card Reconciliation Form that:
       a. Lists a detailed description of the purchase
       b. Provides the Chartfield to be expensed for the purchase
       c. Provides for Unit Budget Manager (Department) Approval/IT Approval for all IT related
       purchases/Cabinet level if required

4. Original, itemized receipts AND a copy of the credit card slip should be attached to the Credit Card
Reconciliation Form. For Internet purchases, a copy of the order confirmation and the shipping document
should be attached. Submit form and receipts to departmental Reconciler within 48 hours. All Credit Card
Reconciliation Forms and receipts are to be received by the Reconciler by the 25th of the month.

5. In addition to Unit Budget Manager (UBM) approval on the Credit Card Reconciliation Forms, the Assoc.
Dean will approve all credit card purchases online.

6. The complete Purchasing Card policy may be found on the following website: http://www.osupcard.com.

Purchasing Card for Travel:

1. A Purchasing Card is available for travel that may be prepaid. Complete an OSU Travel Request
(http://www.newarkcampus.org/faculty/Purchasing%20forms/trequest.pdf) , and obtain appropriate
approvals (http://www.newarkcampus.org/faculty/osuntravel.asp). Acquire a “T” number from the Travel
Coordinator in the Purchasing Office in Founders Hall Room 160.

2. Complete a Credit Card Reconciliation Form that:
      a. Lists a detailed description of the travel
      b. Provides the Chartfield to be expensed for the purchase
      c. Includes the University Travel number (“T” Number) for all travel-related transactions (must be
      completed for each purchase)

3. Attach original, itemized receipts AND a copy of the credit card slip. For Internet purchases, a copy of the
order confirmation and the shipping document should be attached.



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4. Submit form and receipts to departmental Reconciler within 48 hours. All Credit Card Reconciliation
Forms and receipts are to be received by the Reconciler by the 25th of the month.

5. The complete Purchasing Card policy may be found on the following website: http://www.osupcard.com.

C. ADDITIONAL RESTRICTIONS, SPECIAL APPROVALS, AND PROCEDURES

Additional Purchase Restrictions and Special Approvals:

In addition to the standard PCard purchase restrictions, the following additional restrictions and special
approvals apply:

ANY and ALL purchases including business meals, entertainment and staff appreciation expenditures that
include alcohol must be approved by the OSU Newark Dean & Director prior to the event and receipts must
be signed and approved after the event. Alcohol can only be charged to discretionary funds.

The PCard may be used for:

        • Small-dollar commodities as approved by the department
        • Internet purchases provided the Internet site is secure and the Cardholder obtains a receipt for the
        item(s) purchased.
        • Travel expenses in accordance with the Travel Policy.

The PCard may NOT be used for:

        • Per diem meals, incidentals and lodging while on travel status
        • Payment to individuals
        • Personal expenses
        • OSU Research Foundation expenses
        • Any item listed as PCard restricted or special approval required


Procedures:

Reconciler:

1. Receives all PCard statements.

2. Receives all Credit Card Reconciliation Forms and receipts.

3. Assigns appropriate Chartfields to transactions as part of system reconciliation process.

4. Validates that Credit Card Reconciliation Forms/receipts are provided for all transactions.

5. Validates that transactions are in compliance with Expenditure Policies.

6. Validates that approvals have been received for all transactions.

7. Submits statements with receipts to Purchasing Manager for final approval.

8. Maintains files of statements and receipts.

9. Files PCard Dispute Forms where necessary. Forms MUST be completed within 60 days of purchase to
insure bank cooperation.




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Approver

1. The individual responsible for approving departmental expenditures (UBM) should also review and
approve PCard transactions.

2. In addition, the Associate Dean will approve all P-card purchases utilizing the online approval system.

Review and Audit

1. It is recommended that the fiscal officers or their designee periodically review all PCard activity and make
adjustments as needed.

2. PCard transactions will be reviewed by the VP Office or their designee at regular intervals throughout the
year.

3. PCard activity will be audited by the VP Office or their designee at least once a year.

Changes to PCard Account

1. All changes to the originally established PCard account must be approved through the completion and
submission of a PCard Maintenance Form.

2. The SFO and Dean & Director must sign all PCard Maintenance Forms.

3. If a Cardholder is terminating from the University, the card should be canceled using the PCard
Maintenance Form.

D. PROCEDURE FOR ADDRESSING INFRACTIONS AND NON-COMPLIANCE

The issuance of a PCard is for the convenience of the department and the staff member.

It is the Cardholder’s responsibility to ensure that the vendor does not charge sales tax. Cardholders must
obtain the credit for any inappropriate sales tax charge
.
Violations of University, PCard, VP office or departmental policies and procedures can result in PCard
privileges being revoked. Misuse of the PCard will result in corrective action including:

        • Verbal notification to Cardholder/User
        • Notification in writing to Cardholder/User and supervisor
        • Temporary loss of privileges
        • Permanent revocation of card
        • Required reimbursement of inappropriate PCard expenses

Three instances of failure to comply with established policies and procedures will result in revocation of
PCard use. Fraudulent use or misuse of the PCard will result in immediate revocation of use of the card.
The University will seek personal restitution for any inappropriate charges and corrective action may also
include termination and/or possible criminal prosecution.


E. SIGNATURE(S)

X
Signature of Senior Fiscal Officer (SFO) College/VP Area Date
X
Signature of Dean/Vice President College/VP Area Date




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