Procurement & Campus Services

Procard User Guide Index

 

Procard User Guide   - Chapter 4

 


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 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 extreme cases (instances 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 action, and, possibly, legal action, up to and including termination of employment and the repayment to the University of any improper charges, may be required, based upon an extensive 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 Procard Audit Manager, Goodell Building, 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
  1. Following is an overview of how oversight of the Procard works:
    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 Assistant Controller/Director of Procurement, or by the dean, director, account administrator, or the reporting authority.
  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. The procedures are detailed in the Post Audit Review Flows for Issues of Non-Compliance to Procard Policy shown below.
  6. The flows outlined in the charts reflect worse case scenarios. The PART will work with Cardholders/Records Managers, to insure that they have a clear understanding of policy, and to help them to rectify and correct findings, in order to avoid any action against the Cardholder’s Procard.
  7. Questions related to training, applications, exception requests, changes, transactions 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 Audit Manager, Controller’s Office, at 545-4710.

 

General/Audit Program for Procard Purchases
Post Audit Checklist 

 

Cardholder’s Name:

 

 

Cardholder’s Department:

 

 

Period Reviewed:

 

From:

 

To:

 

Date(s) of Audit:

 

From:

 

To:

Reviewed by (Post Audit Review Team Member(s):

 

Account Charged – Name & Number:

 

Type of Account Charged (Grant, Trust, University):

 

 

Purchase Description:

 

 

Purchase Amount:

 

 

Transaction to be Tested:

 

   

Audit Task

Yes

No

Comments

Departmental Procedures

 

 

 

1. Are records being maintained in accordance with the Procard Record Keeping System requirements? (Refer to Procard User Guide, Chapter 2.)

 

 

 

a. Locked filing cabinet, separate drawer?

 

 

 

b. Where is the card stored when not used?
     
c. Is the card now is a secure location?
     
d. Is a copy of the approved Card Application Form on file in the Cardholder's records?
     
e. Is the Cardholder and Records Manager familiar with how to access the Procard User Guide online?
     
f. Remind Cardholder that all records and activity against the card are open to review by internal, external, state and federal auditors.
     
g. Is a copy of the signed Cardholder Agreement on file?
     
h. Are the monthly statements in the file?

 

 

 

 

 

 

 

Cardholder Procedures (perform for every third item selected)

 

 

 

2. Has the most recent Cardholder’s statement been reconciled and turned in to the Records manager by the 15th of the month following the statement date?      

 

 

 

 

 

 

 

 

3. During the review, confirm that (ask question):      

a. The Cardholder has stayed within his/her transaction limits set on the card (on Card Application Form).

     

b. The Records Manager has reconciled each Cardholder statement to monthly PeopleSoft reports for each cycle.

     
       
4. Is the card used solely by only the Cardholder?      
     
5. Have any of the charges been disputed? If “Yes,” is there proof of notification to the Procard Manager in Procurement?      
     
6. Has the Cardholder used appropriate channels to report a lost or stolen Procard, if applicable?      
     
Documentation Procedures      
7. Is the Expense Approval - Business Expense Form included, when appropriate, and does it have the required signatures?      
       
8. Has the Cardholder complied with the requirement to use contract vendors (Campus, University, MHEC, State) if contract is available?      
       
9.  Has the Cardholder complied with the requirement not to purchase any of the restricted commodities?       
       
10. Does the backup documentation include appropriate line item details?      
       
Transaction Procedures      
11. During the review confirm that:      

a. The card has been used only for legitimate University business.

     

b. No personal purchases have been made.

     

c. None of the transactions appear to be dovetailed to avoid the per purchase transaction limit set on the card.

     

d. The Cardholder has received contract pricing.

     

e. No sales taxes have been charged to the purchases for MA vendors.

     

f.  Credits have been handled and applied appropriately.

     

g. Returned items have been handled appropriately.

     

h. Grant charges have been made within the grant time frame. [Grant/contract issue - not responsibility of PART]

     

i.  Documentation supports the legitimate business purpose of all transactions.

     

Procard Audit FlowChart

AUDIT PERFORMED BY POST AUDIT REVIEW TEAM (PART)

 

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