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For all Procurement Card transactions, the department maintains the official
record of the transaction. Unlike purchase orders, invoices, journal entries,
etc., there will be NO record of the transaction administered centrally. In the
event of an audit the department will be contacted to provide documentation
supporting the business purpose of any Procurement Card transactions under
review. It is critical that departments establish sound documentation and
record keeping procedures to insure that the following questions can be
answered:
What specific goods or services were purchased?
What is the business purpose served by this purchase? (especially
important for purchases of take-out food and sundry items)
Each Procurement Card transaction must be supported by one or more of the
following:
Cashier receipt, vendor statement, credit card slip, email/internet
receipts, or copy of order form. All food receipts *must* show
the complete details of the items purchased. A credit card receipt with only a
total amount is not acceptable per the outside auditors.
If none of these is available, an internal order form or other internally
generated statement detailing purchase will be required.
THESE RECORDS ARE PRIMARY DOCUMENTS SUPPORTING
FINANCIAL TRANSACTIONS – DO NOT DISPOSE OF THESE RECORDS!!!
Procurement Card receipts for chart strings, must be retained
for 5 years.
Procurement Card Receipts for PTAEO strings
must be retained for 7 years.
It is expected that the department maintain Procurement Card transactions
for the current fiscal year or PTAEO year within the department. Records for
previous year(s) should be sent to Records Management – clearly indicating:
PROCUREMENT CARD TXNS, the sending department, the account number, and fiscal
period covered. These records should be BOXED SEPARATELY and CLEARLY
LABELED.
We strongly suggest that departments establish a record keeping system
similar to the following:
The cardholder supplies the original receipt, order form,
packing slip, or charge slip to the Procurement Card approver within the
department as soon as possible after the transaction has occurred. An
explanation of what was purchased and for what business purpose must be noted
on the receipt. Any necessary chart string or natural class changes should be
clearly indicated on the documentation.
The above items to be filed individually by Cardholder Name and Procurement
Card Account (i.e., Credit Card Account) Number.
Procurement Card receipts should be checked for regularly. If the card
approver does not have documentation for these transactions, the cardholder
should be contacted immediately and the necessary documentation secured. The
card approver should note that the purchase has been checked in the Procurement
Card System by clicking on the Receipt on File box (ROF).
Procurement Card receipts are kept in a separate file or folder (they should
not be filed with other Financial transaction information, i.e. Purchase
Requisitions, Request for payments, and/or invoices for other types of
transactions), organized by date and fiscal year. In accounts with a high
volume of transactions the department may want to separate transactions by
month. In accounts with lower volume folders that contain a single years
transactions is sufficient. PTAEO strings may have different fiscal periods. A
new series of Procurement Card files are created with each new fiscal year.
Upon receipt of the JPMorganChase monthly Cardholder Statements, the
cardholders and/or card approver should review the cardholder activity, initial
and date that all receipts have been received. Receipts should be attached to
the statement and filed in the cardholder’s hanging file.
At the beginning of each fiscal year, the previous fiscal year’s Procurement
Card account files will be forwarded to Records Management clearly indicating
the nature and dates of the records. Departments may elect to keep more than
the current fiscal year’s records on-site (this practice is not
encouraged).
If charges have not been processed to your account for credit card
transactions, please notify the Procurement Card Manager to determine the
status of your transactions.
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