Procurement & Campus Services

Procard User Guide Index

 

Procard User Guide   - Chapter 4

Revised - February 2017
POST AUDIT/OVERSIGHT:

NOTE:

Following is Chapter 4, POST AUDIT/OVERSIGHT, of the Procard User Guide. There are five chapters in all. The link to the online User Guide is provided to all prospective cardholders at training. For additional details, please contact the Procard Manager in the Procurement Department at 545-1748.

Post Audit Policies/Procedures

Who Performs Post Audits?
How will I know when I’m to be audited?
What issues will be addressed during a post audit review?
Instances of Non-Compliance are called “Findings”
The Procard Explanation/Justification Affidavit
The PART is there to assist the Cardholder/Records Manager
Why all the fuss?

Oversight Policies/Procedures

Non-Compliance with Procard Policy:

Non-Compliance with Procard policy may result in a reduction in the Cardholder’s transaction limits or in the cancellation of the Procard. For the complete list of review issues, see the Post Audit Checklist below. Examples of issues of non-compliance follow:

  • Use of Procard for personal purchases;
  • Use of the Procard for the purchase of restricted commodities;
  • Use of the Procard for the purchase of items that are available on Campus, University, State, or MHEC Contract from a vendor other than an appropriate contract vendor;
  • Use of the Procard by an unauthorized individual (someone other than the "official" Cardholder);
  • Use of the Procard in excess of assigned Cardholder limits or available budget, after the expiration date of a grant or contract account, or for purchase(s) that are inappropriate for the Speed Type/Account Code charged;
  • Failure to comply with the procedures outlined in Chapter 2, Procard Records Management, as outlined in the Guide.

Fraud or Personal Purchases

In cases where it is proven that fraud has occurred, or that the Cardholder has used the card for personal purchases that do not benefit the University, disciplinary and legal action, up to and including termination of employment and the repayment to the University of any improper charges, may be required, based upon investigation by University Administration and any other parties that are deemed appropriate. Suspected instances of fraud will be turned over to the University’s Internal Auditors immediately for their review and possible action.

Disputes over Audit Findings

Should a Cardholder disagree with an audit finding made by the PART, the Cardholder may write to the Audit and Grants Compliance Manager, to dispute the finding. The Cardholder should include a copy of the correspondent letter that was provided by the PART to the Cardholder with the finding, and a complete and clear written explanation of the Cardholder’s reason for the dispute. The next level of dispute would be to the Controller for Administration and Finance.

Overview of Oversight

Following is an overview of how oversight of the Procard works:

  1. The PART will review the Cardholder/Records Manager’s Procard files against the Post Audit Checklist shown below, on a periodic basis.
  2. The Team will revisit Cardholders/Records Managers whose purchase transactions/records do not comply with Procard policy periodically until the Team is satisfied that the instances of non-compliance have been rectified.
  3. The Cardholder/Records Manager will be required by the Team to complete the Procard Explanation/Justification Affidavit for certain instances of non-compliance; for example, purchasing from the restricted list, dovetailing, using a non-contract vendor when a contract is available etc.
  4. Action may be taken against the Cardholder’s Procard (reduction in spending/transaction limits or cancellation of card), depending on the severity of the instance(s) of non-compliance and the Cardholder’s history of non-compliance with Procard policy, if any. Said action may be taken by the Controllers office or upon request by the department.
  5. Cardholders/Records Managers/Account Administrators/Reporting Authorities, as may be appropriate, will be kept informed of audit results and of any action that might be taken against a Procard as a result of non-compliance with policy.
  6. Questions related to training, applications, exception requests, changes, and transaction declines should be referred to the Procard Manager, Procurement Office at 545-1748. Questions about records retention or audit responses should be directed to the Procard Auditor, Controller’s Office, at 545-1429.

Procard Purchases Post Audit Checklist 

 

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