Transcript ReviewerTraining

Purchasing Card Reviewer
Training
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
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
Documenting furniture and food purchases
as required
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, but this
decision is made at the department level.
Reconcile Monthly VISA
Statement
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Compare VISA statement to transaction
log and resolve any discrepancies in a
timely manner
Keep all receipts and related paperwork
(VISA statement, signed transaction log)
together
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
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)
Stringing purchases to avoid limit of
delegated authority ($5,000)
State and University
Restrictions (con’t)
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Services provided by an unincorporated vendor
(applies to services only – these vendors must
be incorporated)
Food purchases must be well documented with
the name and purpose of the function and who
attended it, by name or affiliation. Costs for
alcoholic beverages are not to be included under
any circumstance.
Purchases Requiring Additional
Approval
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Licenses, contracts, and agreements must be
sent to Procurement & Supply for approval.
Cardholders are not authorized signatories for
the University
Telecommunications equipment (antenna,
satellite installations, 2-way radios) require
approval from OIT/NTS
Purchase of hazardous materials must be
generated through Environmental Safety
Modifications to building structure must be
approved by and coordinated through Facilities
Management
Purchases Requiring Additional
Approval (con’t)
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Purchase of furniture (must be purchased from
MCE, or must be documented on Potential
Business for MCE form)
All Contract and Grant funds shall be in
compliance with the associated terms of the
contract or grant
Food purchases must be well documented with
the name and purpose of the function and who
attended it, by name or affiliation.
Changes to Cardholder
Information
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Request changes using Account Maintenance
Request Form (available online)
Cardholder Name or Address Change
Default FRS Account Change
Cancel Card
Single Purchase or Monthly Credit Limit Change
(as a minimum, requires department head
approval)
No Transactions in a Billing
Period?
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Logs do not have to be approved
Credit card statements will not be sent
Review process is not required
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 UM 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 UM 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
Electronically sign off verifying the review has
been completed (procedures located at
http://www.purchase.umd.edu/general/
pcardresponsibilites.html)
Reviewer’s Responsibilities
(con’t)
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Retain the records in chronological order in
the department’s business office, and securely
maintain the files.
Ensure Contract and Grant funds are spent
within the contract or grant guidelines.
Note: Reviewers will receive an email
notification each month reminding them that
the review is due.
Ensure cards are cancelled when a
cardholder leaves the University or the
department
Establishing the Review
Process
Establishing the Review
Process
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Departments may require preauthorization prior to cardholder making a
purchase
Some departments have established
procedures (check with your Business
Office)
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
log and 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 Delegated
Procurement Team by submitting an Account
Maintenance Form
Reviewer shreds the card and discards it
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 tagged in inventory
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
Complete a Reviewer Access Request form
Removing the previous reviewer
 Assigning a new reviewer
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Submit form to Delegated Procurement Team
Forms
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All forms associated with the Purchasing
Card are available online at
www.purchase.umd.edu
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
on a travel restricted card)
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 one receipt
Missing statements
Lack of additionally required
documentation
Consequences of Misuse and
Negligence
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Report misuse and negligence to
Delegated Procurement Team
Institute the “3 strikes, you’re out” rule
Suspend card until cardholder attends
another training (becomes HR issue)
Cancel the card (coordinate with
Delegated Procurement Team)
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
Loss of Leave Time
Suspension and/or 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 Delegated Procurement Team
Immediately.
Contact Information
*Send an email to [email protected] to
certify completion of reviewer training*
Contact the Delegated Procurement Team
Voice Mail(301) 405-5834
FAX
(301) 314-1352
Email
[email protected]