Do not use the purchasing card for personal purchases, cash advances, or purchasing cash equivalents i. Record all purchases on the purchasing card log and include all original receipts in transaction log envelope. Reconcile purchasing card statement promptly each month once you receive the notice that transactions are available. Purchasing card accounts must be reconciled by the 15th of the month following the statement date. Advise cardholders to have proof of receipt documented and readily available for your review in the transaction log envelope.
Approve monthly cardholder transactions by the specified deadline. Dollar Limits Single purchase and monthly limits are assigned by the Purchasing Card Committee when the account is set up with the bank. Reconciling Monthly Transactions Because delinquency in reconciling monthly transactions impedes accurate verification of the purchasing card payment, the following process has been instituted to encourage compliance with due dates as well as to provide consequences for late reconciliation and approval.
Cardholders: When transactions are available for reconciliation typically by the 1st of the month purchasing cardholders will be alerted via e-mail that they have transactions to reconcile and the deadline by which reconciliation and approval must be accomplished.
In addition, approvers will be alerted via e-mail the cardholders that have transactions to reconcile and the deadline by which reconciliation and approval must be accomplished. Prior to the deadline for reconciling, the Financial Accounting Services Office will e-mail cardholders a reminder to reconcile in a timely fashion and to seek assistance if needed.
For a first offense of late reconciliation, cardholders will be issued a warning notice. Someone from outside your unit should be able to fully understand why the purchase was made based on your paperwork. Something went wrong with your transaction, or out of the ordinary? Please make a note to the file detailing what happened. Small businesses suffer hugely through procurement and purchasing fraud because too few safeguards are in place.
Oversight is needed to deter fraud and ensure purchasing stays in line, and this comes in the form of things like never letting anyone have end-to-end control of funds. There are all kinds of accountability measures companies can adopt to make embezzlement and theft trickier to do, but performing an audit is an important step in finding out what sort of measures may be missing.
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Share It. Talk to the team. Get the low down on processes and approaches in use by anyone in purchasing or procurement. Ensure three-way matching is being used consistently and correctly. Review exceptions and identify potential areas for corrective action to optimize workflows and procedures. Review exceptions and identify potential areas for refinement and correction. Flag instances of invoice fraud, duplicate payments, inaccurate or fraudulent disbursements, theft, and maverick spend for special investigation and correction.
As with purchase orders, verify conflicts of interest are prevented through proper segregation of duties. Identify problem areas and provide suggestions for corrective action that improves process efficiency, reduces risk, ensures compliance, etc. Create a schedule of follow-up audit testing to ensure suggested improvements have been implemented. Embrace Automation If tackling an internal procurement audit seems daunting, take comfort in the knowledge that a single change can make the entire process infinitely easier.
Automation eliminates wasted resources, human error, and needless, costly delays, too. No more expensive and time-consuming data entry. No more expensive paper document storage. No more missing out on essential goods and services or struggling to maintain adequate cash flow for both necessary purchases and innovation. No more inaccurate, risk-creating errors in forecasting and strategic decision making due to opaque spend.
Internal Procurement Audits Save You Time, Money, and Frustration To reap the value hidden in your procurement department, you need to know how to review and optimize its processes. To discover how we can help grow your business: Read our case studies, client success stories, and testimonials. Learn about us, and our long history of helping companies just like yours. Learn best practices for purchasing, finance, and more Browse hundreds of articles , containing an amazing number of useful tools, techniques, and best practices.
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