Audit Guidance
PROCUREMENT CARD PROGRAM
November 12, 2008
OVERVIEW
The use of the Procurement Card (P-Card) has many advantages including timely payment, reduction in time between requesting and receiving the goods, fewer checks and vouchers, and rebates based on usage. However, like any credit card there are inherent risks associated with the use of the card. Controls must be in place to ensure funds are available, supporting documentation is required and maintained, the cards are secure, cardholder limits have been established, and card activity is monitored.
To help ensure that P-Cards are being administered in accordance with SUNY and State Guidelines and to assist in strengthening internal controls over P-Card activity, we offer the following audit guidance. This audit guidance should be considered in conjunction with SUNY and State Guidelines.
KEY CONTROLS FOR THE P-CARD
- As a best practice, campuses should require each cardholder's supervisor to review the monthly statement and the corresponding receipts and invoices for appropriateness. Supervisors should sign each P-card statement as evidence that they have reviewed the purchases charged to the cards.
- Campuses should require cardholders to submit original documentation including invoices and receipts with the P-Card statement to the accounts payable office.
- The accounts payable office should obtain supporting documentation for each P-Card statement and periodically review the vendors, charges, and supporting documentation for appropriateness.
- Campuses should ensure that P-card purchases are made in accordance with SUNY and State Guidelines for procurement and at the lowest available price consistent with quality, service, and other needs which best promote the interests of the Campus.
- Campuses should conduct formal training for both cardholder's and department supervisors that includes an overview of the risks related to using the P-card and the consequences for misuse.
- Campuses should have a formal written policy that describes the key procedures for administering and using the P-Card. All cardholder's and department supervisors should acknowledge that they have read and understand the policy.
- Employees should not share the P-card assigned to them with other employees.
- Employees should only purchase items that are within the transaction limit and not split order (make multiple small dollar payments to the same vendor for a single transaction).
- Upon employee termination, the P-card administrator should be informed so that any P-Card associated with the employee is returned and deactivated.
Additional Information
SUNY Procurement Guidelines: http://www.suny.edu/sunypp/documents.cfm?doc_id=428
New York State Office of General Services P-Card Guidelines: http://www.ogs.state.ny.us/purchase/pdfdocument/CreditCardGuidelines.pdf
For additional information, please contact the Office of the University Auditor at 518-443-5533 or University.Audit@sysadm.suny.edu