DWU-PRO-001-MSD P-Card Purchasing Procedure

Document Number: DWU-PRO-001-MSD Revision Number: 1
Approved By: Margarett Williams Effective Date: 08-04-10
Description of Last Initial Release
Change:
Document Title:
Purchasing Card (P-Card) Procedure
PURPOSE: To establish the policies for acquisition and use of the Purchasing card.
SCOPE: DWU – Department wide
RESPONSIBILITY & AUTHORITY: Division Manager, Operations Manager, Storeroom
Supervisors, Inventory Control, Procurement Section, and Storeroom Sr. Storekeepers.
SAFETY: Follow all applicable City of Dallas safety guidelines associated with this work
instruction/procedure.
ENVIRONMENT: Follow all applicable City of Dallas safety guidelines associated with
this work instruction/procedure.
PROCEDURE/WORK INSTRUCTION:
1. Purpose of this Directive
1.1 The purpose of this Directive is to set forth policies and procedures for
obtaining and using a Purchasing Card (referred to as the “P-Card”
throughout this document) to procure goods and services so that
employees can do their jobs more efficiently. Each card has the City of
Dallas logo, and states” Commercial Card” and “For Official Use Only”.
2. Purpose of the Purchasing Card
2.1 The purpose of the P-Card program is to establish a more efficient, costeffective
method of paying for small dollar transactions. It is designed to
reduce petty cash, requisitions and purchase order transactions. All P-
Card holders are governed by this procedure, State law, City ordinances,
Dallas City Code and Dallas City Charter requirements regulating the
procurement of goods and services.
2.2 The P-Card program is not intended to avoid or bypass appropriate
purchasing procedures, such as the prohibition against splitting orders.
This program is not intended to purchase goods or services available
through price agreements. The P-Card program is a credit
transaction based system used to procure low value, non-inventory and
non-capital items under $1,000.00.
3. Definitions
3.1 Purchasing Card - The P-Card is a commercial credit card for small-dollar
purchases of goods and services for official City business. The P-Card
may be issued to a permanent employee for use by that employee only.
3.2 Cardholders - Permanent employees who have been designated by the
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Department Director to be issued a P-Card in the furtherance of their job
duties and within the procedures contained herein and elsewhere.
3.3 Purchasing Card Program Administrator - The designee within the
Business Development and Procurement Services, who will serve as a
single point of contact between the City of Dallas and the Bank for general
oversight of the Purchasing Card program.
3.4 Department Purchasing Card Coordinator - The Manager and a backup
person from Material Services Division approved by the Department
Director who is responsible for the monthly P-Card Reconciliation.
3.5 Approving Authority - A P-Card holder’s Manager is responsible for
approving that cardholder’s P-Card expenditures.
3.6 Approving Authority – A P-Card holder’s Manager is responsible for
approving the cardholders P-Card expenditures.
3.7 Bank - The bank selected by the City to provide the P-Card program.
3.8 P-Card Log - A log that details each of the Cardholder’s purchases in a
given reporting period.
3.9 Card Controls - Those perimeters assigned to a particular card which
governs its use (allowable daily transactions, monthly expenditure limits,
etc.)
4. Application Procedure
4.1 A P-Card may be requested for an employee whose job routinely requires
them to procure small dollar items needed to accomplish their assigned
duties, and those items are not on price agreement and are often easily
accessible.
4.2 An application for a P-Card should be completed by the intended
Cardholder and signed by that person’s Manager. The Manager
determines the budgeting default funding.
4.3 A Cardholder’s card limits shall be determined by the Cardholder’s
Manager, and shall be based on the Cardholder’s intended use of the card
in furtherance of their job duties. The limits shall be set in conformity with
the general limits set for all P-Card holders. Cardholders are allowed a
maximum number of transactions each day and a maximum aggregate
dollar amount for each month. Cardholders are not to exceed the limits
established for their card.
4.4 Each Cardholder will be assigned to an MCC Grouping, which will
determine what types of goods and services the Cardholder can purchase.
MCC Codes may be added or deleted from MCC Groupings depending on
the need and circumstances. (see MCC Code Request Form)
5. Cardholder’s Responsibility
5.1 Attend training provided by the Department Coordinator or the backup
person (Office Assistant) prior to being issued a card, and at other times
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as deemed necessary.
5.2 Read and sign a Purchase Cardholder Agreement prior to being issued a
P- Card.
5.3 Sign the new card’s mailing letter to acknowledge receipt of the card from
the Department Coordinator.
5.4 Assume responsibility for all purchases made with the P-Card.
(Unauthorized purchases could be considered misappropriation of City
funds, which could result in the revoking of the card, suspension and
possibly termination.)
5.5 Place receipts into the log envelope and update the log after each
purchase.
5.6 Immediately report a lost or stolen card to the Bank and the Department
Coordinator. The card must be canceled immediately, and if not reported,
the cardholder will be responsible for charges until the Bank is notified.
5.7 Make every reasonable effort to resolve disputed purchases with the
vendor.
5.8 Report all unresolved disputed purchases with the vendor to the
Department Coordinator.
5.9 Review charge slips carefully to ensure sales taxes are not charged to the
account. The Department Coordinator will direct a Cardholder to seek
reimbursement for any sales taxes charged by vendor.
5.10 Obtain a credit memo from the vendor when merchandise purchased with
the card is returned to the vendor for any reason. The credit memo will be
attached to the monthly log along with sales receipt. The amount is to be
credited to the cardholder’s account. No cash refunds are allowed.
5.11 Submit a monthly reconciliation to the Department Coordinator prior to the
designated day.
6. Manager’s Responsibilities
6.1 Determine if a P-Card would benefit or improve their respective operation.
6.2 Approve P-Card applications prior to submission to the Department
Coordinator, and any changes to the card controls after cards are issued.
6.3 Designate a system for maintaining and reconciling receipts to the Monthly
Statement for each subordinate cardholder.
6.4 Review and approve monthly reconciliation(s) prior to submission to the
Department Coordinator.
6.5 Recommend suspension or cancellation of a cardholder’s charging
privileges to the Department Coordinator.
6.6 Collect P-Card from employees who are terminated or change
position, and forward the card and an Internal Terminated Card Form can
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e completed to the Department Coordinator.
7. P-Card Coordinator’s Responsibilities
7.1 Review all requests for new P-Cards, and submit applications to the City’s
Program Administrator for processing.
7.2 Maintain a current list of cardholders and card numbers with card controls.
7.3 Review department P-Card transaction logs for compliance, and reconcile
with monthly bank statements by the 27 th of each month.
7.4 Reconcile Monthly Statement and submit a final report to the City’s
Program Administrator no later than the 29 th of each month.
7.5 Monitor purchases made and report irregularities or discrepancies to the
City’s Program Administrator.
7.6 Adjust expenditure entries between accounting distributions as necessary
before the 28 th of each month.
7.7 Conduct random and unannounced audits of Cardholder’s records.
7.8 Maintain P-Card logs receipts and reconciled accounts in a secure
location by individual cardholder and fiscal year for at least three years.
REFERENCES:
P-Card Application (external form)
Internal Terminated Card Form (external form)
MCC Code Request Form (external form)
Internal Agreement P-Card T-Card Form (external form)
Dispute Form (external form)
RECORDS:
P-Card Transaction Log
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