Hisd Pcard Manual

PROCARD USER'S MANUAL

Houston Independent School District

Revised July 14, 2009

FREQUENTLY ASKED QUESTIONS

What should I do if my PROCARD is lost or stolen? Immediately call 800-316-6056 to report the PROCARD missing and request a replacement. The replacement card will be sent to the PROCARD Administrator. Upon receipt, you will be contacted to schedule a time to pick up the PROCARD. What do I do if a purchase is denied? Your purchase may have exceeded a spending limit, transaction limit or may be associated with a merchant category code that has been restricted. Contact JPMorgan Chase at 800-316-6056 to determine the reason for the denial. The PROCARD team does not have access to this information. Is it possible for someone else to use my card? No. According to the HISD Cardholder Contract & Agreement that was signed, the Cardholder is responsible for all charges and the safekeeping of the PROCARD. Will use of the PROCARD affect my credit report? No. The PROCARD carries no personal liability for HISD cardholders who use the PROCARD. Whom should I contact to resolve an error or dispute concerning my account? First, contact the supplier. Most exceptions or issues can be resolved between you and the supplier. If you cannot resolve an issue with the supplier, complete the Statement of Questioned Item Form and submit to the PROCARD Administrator. What about HISD being tax exempt? The card is identified as an HISD official business, tax-exempt card. You should advise the supplier that the purchase is to be tax exempt. The tax exempt number is printed on the front of the card. If ordering by phone or the internet, the vendor must be told that we are tax exempt. What if I do not receive a statement? Statements are sent to the cardholders via email each month at the end of the monthly cycle. If you do not receive your statement, contact the PROCARD Administrators to request a copy. What should I do with the PROCARD when leaving my campus? When employees leave and/or change campus locations, the PROCARD Administrator should be contacted and notified of the change in status. Upon notification, the PROCARD Administrator will close the card account. Cardholders are responsible for ensuring that all allocations, approvals, statements, receipts, etc. are up to date and in order prior to changing locations.

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Lesson 1: Obtaining a F'ROCARD To obtain a PROCARD, you must: Be a full time employee of HISD

Complete & submit an HISD Cardholder Application Form. Download the application via the HISD portal: Procurement (Purchasing) Department under the PROCARD section. Attend the mandatory PROCARD Training Session* Complete and sign the Cardholder Contract and Agreement Form

*Note: PROCARD Training is conducted for Cardholders, Requisitioners and Fund Approvers. Attendance is mandatory and must be completed before a PROCARD is issued. Employees who are classified as Fund Approvers will not be allowed to receive a PROCARD.

The District will determine the number of PROCARDS allocated to each school/department location. Principals/Department Heads are responsible for designating Cardholders at each school location as follows:

Level

Maximum number of cards

Elementary

3

Middle Schools

4

High Schools

5

Departments

5

As a Cardholder, HISD expects you to: Adhere to all responsibilities outlined in the PROCARD User's Manual Maintain prudent and good business judgment when making a purchase with a District PROCARD Retain for monthly statement reconciliation, all charge slips, cash register receipts, and packing lists associated with your PROCARD purchases Verify charges listed on monthly statements received from the bank Resolve errors and disputes, appropriate credits are issued Immediately notify Cardholder status

the

coordinate returns,

PROCARD Administrators

and verify thai of changes

in

Ensure that all policies regarding allocation/approval of PROCARD transactions and submittal of PROCARD Envelopes, statements and receiots are comoleted timelv.

Lesson 3: Making Purchases The PROCARD can be used to place orders: over the phone

by fax by internet or at the merchant location When placing an order by phone, be prepared to provide: Your name Your card number and expiration date

Shipping instructions (School/Department Name, Address, City, State, Zip Code, and Point of Contact)

Ask the supplier to include a detailed sales receipt/packing list thai includes product description, price, and freight charges. Inform the merchant that the purchase is tax exempt.

Receipts

Cardholders are required to collect receipts or documentation of all purchases. The receipt/documentation should contain itemized details such as: Merchant name Detailed list of items purchased The cost Forms of documentation include: Charge slips/cash register receipts, itemized Itemized packing slips Internet screen shots Magazine subscription forms/Registration forms Email acknowledgement of an internet order

NOTE: If a detail and/or itemized description of the items purchased is not provided on the receipt, Cardholders are required to write a briel description of each item purchased. Remember to retain all receipts and/or documentation in a file. This information must be attached to the Cardholder monthly statement. Non-itemized receipts will not be accented.

Merchant Category Restrictions The following merchant categories have been designated as restricted: Camera & Photo Supply Store - merchants in this category include: > Wolf Camera, Canon Store Computer Peripherals - merchants in this category include: Allstate Imaging, American Computer Supplies, Softmart, Global Computers Computer Software/Record Stores - merchants in this category include: Micro Center, Affordable Computer, Academic Superstore, Comp USA, Newegg Computers, Game Stop, "Renaissance Learning Radio TV & Stereo Stores - merchants in this category include: > Circuit City, Best Buy, Frye's, Radio Shack, *Aves Audio Visual Art Dealers/Stamp & Coin Stores Barber & Beauty Boat/Motorcycle Dealers Boat Rentals/Leases/Marinas Cable TV/Utilities Catalog Merchants - merchants in this category include: > Adirondack, Alfax, Best Computer Supplies, National Business Furniture, Myron Manufacturing Department Stores - merchants in this category include: > Macy's, JC Penny Drapery/Upholstery Stores Duty Free Stores/Wholesale Clubs > Sam's, Costco Financial Institutions/lnsurance/Professional Services/Membership Organizations > Doctors, hospitals, schools Florists - All area florists Furriers & Fur Shops Gift Cards - all merchants in store or on line Hotels - for any reason Men/Boys/Women/Children/Family Clothing Stores Pawn Shops/Antique Stores Phone Service/Equipment Precious Stones & Metals Railroads/Passenger Rail/Ambulance Service Steamship/Cruise Lines Taxicabs/Limousines Telegraph/Wire Transfer Toll/Bridge Fees Watch/Clock/Jewelry Repair *Note: HISD approved vendors may be included within the merchant category restrictions, therefore, the PROCARD cannot be utilized. End users can create a requisition in SAP for issuance of a purchase ordei

Lesson 4: What You Can Buy

Small dollar value items (less than $500) can be purchased from suppliers contracted through Annual Bids including, but not limited to:

Office Supplies Maintenance, Janitorial, and Cleaning Supplies Instructional Materials Athletic Uniforms/Equipment Audio Visual Products Awards & Trophies Electrical Supplies Furniture - Classroom, Office, and Library* Media Supplies Music Instruments Technology Supplies In addition to the commodities listed purchases can be made utilizing the PROCARD for non-bid items such as:

Signs & Banners Arts & Crafts Supplies Bookstores Hardware Field Trip Activities/Events Food Service (see Finance Procedures Manual for policies regarding food related purchases) Catering/Deli/Sandwich Shops/Pizza/Fast Foods Postage Groceries/Supermarkets

Conference registrations (less than $500 per person), Stafl Development & Seminars* Subscriptions General Merchandise Stores

Note: According to the policy outlined in the Finance Procedures Manual, Section 259 titled Membership Fees and Dues, memberships must be in the name of HISD or the school. Individual memberships in professional organizations may not be paid for with District funds.

Lesson 4: What You Can Buy

HISD is Tax Exempt

The PROCARD is identified as an HISD official business, tax-exempt card. Cardholders are expected to advise the supplier that the purchase is to be tax exempt. All purchase receipts should be reviewed promptly to ensure that sales tax is not charged. The HISD tax exempt number is printed on the card.

What You Cannot Buy

Although not all inclusive, the following types of expenditures shall not be purchased with the PROCARD:

Any one item greater than $500 Gift Cards - it is against policy to purchase gift cards for any reason. Florists - this MCC code is blocked with the use of the PROCARD Sam's Wholesale Club Costco Department Stores Jewelry Shops Radio TV & Stereo Stores Computer Software, Peripherals Camera & Photo Supply Stores Cash advances/disbursements from financial institutions/ATM's Capital equipment Salary and monetary awards Consultant and maintenance agreements

Purchases from sources where the Cardholder has a financial interest (refer to Policies of the Board of Education, Article Five Employee Procedures, Section 543.500 - Conflict of Interest)

Cash refunds (returns or adjustments must be applied back to the given PROCARD)

Gifts (refer to Section 331, Special Accounts, in the Finance and Procedures Manual for additional guidelines regarding gifts) Entertainment, nightclubs, bars, taverns, cocktail lounges, alcoholic beverage stores, beer, wine, and liquor Government Services/Utilities/Cable (cont.)

Travel related purchases: Airlines

Hotels, including food from hotel restaurants, banquet services, etc.

Rental cars Lesson 5: Managing the PROCARD Changes in Positions and/or Work Locations & Card Cancellation

Cardholders who change positions and/or work locations should notify the PROCARD Administrator immediately. It is the responsibility of the Principal, Department Head and/or Fund Approver to collect assigned PROCARDS from employees no longer authorized for its use and to ensure that all allocations, approvals, PROCARD envelopes, statements and receipts have been completed.

Should a PROCARD require cancellation, the Principal, Department Head and/or Fund Approver must contact the PROCARD Administrator. The card will immediately be cancelled upon notification. PROCARD Envelopes

PROCARD Envelopes are issued to the Cardholder upon receipt of the PROCARD. One monthly statement along with the support documentation is submitted per envelope. Additional envelopes may be obtained upon request from the PROCARD Administrator. PROCARD Envelopes are due by the 10th of the following month after the statement has been received. PROCARD Envelopes are to be submitted as follows: •

Fund Approver's Signature - signature stamps are not acceptable

•

Monthly Statement

•

All detailed/itemized receipts, packing slips, etc. to support each transaction that appears on the statement. All support documentation must be submitted in the order in which the purchases appear on the statement.

•

If the Cardholder is unable to locate a receipt etc., the Cardholder is required to complete the Missing Receipt Documentation Form and submit along with the envelope.

The PROCARD Envelope will be considered incomplete until all statements, receipts and proper signature approval has been submitted. Late or non-submittal of PROCARD Envelopes is considered a violation of oolicv.

Lesson 6: If Your Card Is Misused

Lesson 6: If Your Card Is Misused

As a Cardholder, you are responsible for adhering to all of the guidelines and procedures related to the PROCARD. Such responsibilities include: Protecting the card Retaining receipts and documentation for items purchased Resolving errors, disputes, and returns with the merchant Notifying the PROCARD Administrators of changes in status and/or work location Ensuring all PROCARD transactions are allocated by the Requisitioner and approved by the Fund Approver

Ensuring each monthly statement along with all supporting documentation has been reviewed and approved by the Fund Approver and forwarded to Procurement Services in a timely manner.

Lesson 7: PURCHASING CARD VIOLATIONS HISD has established a 3-strikes-you're-out methodology for non-compliance tc the guidelines and procedures of the PROCARD program: STRIKE 1: 1st E-mail Notification to Cardholder Seven (7) business days will be given to actively respond.

1st missing receipt 1st unintentional violation of policy (use of unapproved supplier)

1st delay in allocating and/or approving PROCARD transactions outside of the allotted time frame

1st submittal of incomplete PROCARD envelopes including statements and receipts more than 30 days late STRIKE 2: 2nd E-mail Notification to Cardholder, Principal/Department Seven (7) business days will be given to actively respond.

•

2nd missing receipt 2nd unintentional violation of policy (use of unapproved supplier)

2nd delay in allocating and/or approving PROCARD transactions outside of the allotted time frame

2nd submittal of incomplete PROCARD envelopes including statements and receipts more than 30 days late 1st solit transaction

STRIKE 3: Final E-Mail Notification: Suspension of the PROCARD and/or Further Employee Reprimand

The PROCARD cannot be used until all transactions are allocated/approved & all envelopes are complete. The PROCARD will remain suspended for 30 days after the outstanding violations have been rectified. In addition, card suspension as a result of late approval of transactions, will generate the suspension of ajl PROCARDS assigned to the campus/department. Suspension ol all cards will remain in effect for 30 days after the outstanding violations have been rectified. If there is a continuing pattern of non-compliance in the use of the PROCARD, the card may be permanently cancelled and other subsequent methods of purchasing may also be suspended along with further disciplinary action for the employee through the Human Resources Deoartment.

Lesson 8: Roles and Responsibilities

Lesson 8: Roles and Responsibilities

Various HISD employees have assigned roles and responsibilities in managing the PROCARD system and protecting cards from misuse. They include the following:

PROCARD Administrator Maintains a record of Cardholder's names, account numbers, credit card issuance dates, expiration dates, etc., which is to be kept secured at all times Monitors and reviews transactions of all Cardholders on a daily basis

Coordinates the program and responds to PROCARD related questions and policy issues Participates in ongoing program reviews Coordinates new credit card requests as well as cancellations Assists Cardholders to resolve billing disputes Regularly reviews requirements

reports

for

compliance

with

program

Responsible for all written/verbal communication regarding the entire PROCARD program

Provide information for updates to PROCARD User's Manual and the web site to maintain the most current information

Verifies that reconciled statements and supporting documents are received monthly from all PROCARD user locations

Maintains files of PROCARD envelopes containing statements and support documentation for audit purposes Finance Pays a single consolidated statement Stores support documentation Transmits download from the bank on a weekly basis into SAP Cardholder

Adheres to all responsibilities agreed to in the PROCARD User's Manual and as outlined in the Cardholder Contract and Agreement Protects the card Reviews and reconciles monthly statement received from the bank

Retains all charge slips, packing slips, and cash register receipts associated with PROCARD purchases

Resolves errors and disputes and coordinate returns Notifies PROCARD administrators of changes in status and/or location Ensures all card purchases are approved by the Fund Approver

Submits monthly statement along with all supporting documentation to the Procurement Services Department in the PROCARD envelope Requisitioner

Ensures all program participants receive notification via email regarding PROCARD transactions that require allocation and/or approval. Receives/Collects all support documentation to verify PROCARD transactions; communicates with the Cardholder Reviews and allocates PROCARD transactions with proper budget Responsible for entering complete information into the text boxes for food and non-food related categories. The information entered must be specific as it relates to the purpose of the purchase and the list and/or number of attendees. Maintains log of document number(s) required for Fund Approver Provides Fund Approver all supporting documentation, including monthly statements, transaction receipts and a list of document number(s) that require approval Upon approval by the Fund Approver, forwards all monthly statements along with support documentation to the Procurement Services Department in the PROCARD envelope provided Fund Approver Approves all PROCARD transactions for Cardholders Ensures & verifies that all transactions are valid for business purposes only Reviews & signs PROCARD Monthly Statement Review/Approval Form when deemed necessarv.

Appendix A: PROCARD Cardholder Contract and Agreement By participating in the PROCARD Program as a Cardholder, you assume certain responsibilities pertaining to the operation and administration of the PROCARD Program. These responsibilities include but are not limited to the following: •

The PROCARD is to be used for HISD business purchases only. The PROCARD may only be used under the parameters and procedures established for the PROCARD Program, which are detailed in The PROCARD User's Manual. The PROCARD may not be used for personal expenditures.

•

The PROCARD will be issued in the name of an employee. By accepting the PROCARD, the employee and the fund approver for a school/department assumes responsibility for the PROCARD and will be responsible for all charges made with the PROCARD. A PROCARD issued in the name of an employee is not transferable and may not be used by anyone other than the Cardholder.

•

The PROCARD must be maintained with the highest level of security. Should the card be lost or stolen, or if the Cardholder suspects the card or account number to have been compromised, the Cardholder agrees to immediately notify the bank at 1800-316-6056 and the PROCARD Administrator in Procurement Services.

•

On a monthly basis, the Cardholder will receive a statement from the bank listing all activity associated with the card. While the Cardholder will not be responsible for making payments for authorized transactions, the Cardholder will be responsible for the verification and reconciliation of all account activity, which includes obtaining the proper approval for all PROCARD transactions from the fund approver.

•

Cardholder accounts are subject to periodic internal control reviews and audits designed to protect the interests of HISD. By accepting the card, the Cardholder agrees to provide all information and documents requested by the internal and/or external auditors and investigators, and to otherwise comply with the requirements ol these reviews and audits. Audits will be conducted on the supplier receipts, bank statements, and other related documents.

•

Parameters and procedures related to the PROCARD Program may be updated or changed at any time and can be accessed via the HISD portal under the Procurement (Purchasing) Department website. It is the responsibility of the Cardholder to be familiar with all district regulations and all updates related to the PROCARD Program.

Appendix A: PROCARD Cardholder Contract ana Agreement

Cardholder Contract and Agreement Page 2 •

The Cardholder agrees to surrender and cease the use of the PROCARD upon request of HISD management, termination of employment whether for retirement, voluntary separation, resignation or dismissal. In addition, the Cardholder must surrender and cease use of the card in event of transfer or relocation. The Cardholder may also be required and Cardholder agrees to surrender the card at any time deemed necessary by district management.

•

The Cardholder under no circumstances will use the PROCARD to make personal purchases for the Cardholder or any other party. Misuse or fraudulent use of the card will result in disciplinary actions up to and including termination and the Cardholder is subject to personal liability for claims and charges sustained by HISD as a result of such misuse or fraudulent use.

•

The Cardholder is being entrusted with a powerful and valuable tool and will be making financial commitments on behalf of HISD. The Cardholder shall at all times strive to obtain the best overall value for these financial commitments.

•

Should the Cardholder violate the terms of this agreement and use the PROCARD for personal use or gain of Cardholder or any other party, the Cardholder agrees to reimburse the District for all incurred charges and any fees related to the collection ol those charges immediately. The Cardholder agrees not to use the PROCARD as a reference to secure other personal credit cards. Any uncollected charges or cost may be withheld from any subsequent payment owed to the Cardholder by the District.

•

The Cardholder agrees to strictly adhere to the policy and procedures established by HISD for the use of the PROCARD. Failure to do so shall result in disciplinary and/or termination of employment actions, reimbursement and liability requirements and revocation of use privileges and/or suspension of all other methods for the acquisition of goods and services including Direct Pay Requests and Travel Vouchers.

•

HISD is tax exempt. All purchases made on behalf of HISD are exempt from sales tax. The Cardholder is responsible for notifying merchants that the purchases are exempt from tax charges.

•

The Cardholder agrees to submit the monthly statement received from the bank as follows:

Bank statement with all itemized transaction receipts attached Bank statement signed and approved by Cardholder Bank statement signed and approved by Fund Approver

All documents forwarded to Procurement Services in the PROCARD envelope provided within ten (10) days of receipt o1 bank statement

Cardholder Contract and Agreement Page 3

By signing below on the day of 200 , I acknowledge that I have read, understand and agree to the terms and conditions of this contract and agreement and I certify that as a participating Cardholder of the PROCARD Program, I understand and assume the responsibilities as outlined in this document. Employee Name (Print) Employee Signature School/Department Phone Number

As the Fund Approver for the employee, I acknowledge that I am responsible to ensure that the employee abides by the above conditions. I am responsible for taking appropriate disciplinary actions involving any misuse of the PROCARD. I am responsible for notifying the PROCARD Administrator for canceling the PROCARD if the Cardholder is terminated for any reason or if the Cardholder transfers to another location within the District. I am also responsible for reviewing and approving all activity, monthly statements, and reports for accuracy and to ensure that expenditures comply with District acquisition policy. Fund Approver Name (Print) Fund Approver Signature General Fund Account Number (GF1 -XX-XXXX-XXX-XX-XX-XXX)

Appendix B: Statement of Questioned item(sj

Appendix B: Statement of Questioned Item(s) SCHOOL/DEPARTMENT

ACCOUNT NUMBER MERCHANT NAME _ AMOUNT

ROUTE #

TRANSACTION DATE REFERENCE #

To assist our investigation, please indicate below the reason for your dispute. If you have any questions, contact the PROCARD Administrators. I did not make nor authorize the above transaction. (Please indicate the whereabouts of your credit card.) There is a difference in the amount I authorized and the amount I was billed. (A copy of your charge must be enclosed.) I only authorized one charge and I was previously billed for this sale. The date of the previous charge is

._

The above transaction is mine but I am disputing the transaction. (Please provide a detailed explanation.)

I do not recognize the above transaction. I have received a credit voucher for the above transaction, but it has not yet appeared on my account. (A copy of the credit voucher must be enclosed.) My account has been charged for the above transaction, but I have not received this Merchandise. The details of my attempt to resolve the disputes with the merchant and the merchant's response are attached. My account has been charged for the above transaction, but the merchandise has since been returned. (Please enclose a copy of your postal receipt.) Cardholder Signature

Date

Fund Approver Signature

Date.

Send completed form to:

PROCARD Administrator Office of Procurement Services Route 10