Procedure 3.1.5 PURCHASING CARD PROGRAM
Approved: June 19, 2007
Revised: June 20, 2023
1.0 Purpose
1.1 The purpose of the District School Board Ontario North East Purchasing Card Program is to simplify purchasing of small-dollar items and automate the supplier payment process.
1.2 The Purchasing Card is to be used for low value, low risk purchases of goods, services and travel including hotels, conference fees and flights generally under $5,000.00 within prescribed limits.
2.0 Responsibilities
2.1 Purchasing Card Coordinator or Designate
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- 2.1.1 Authorize the issuance or withdrawal of purchasing cards with the issuing financial institution.
- 2.1.2 Establish the credit limit and transaction limit for each cardholder in conjunction with the Purchasing Card Approver.
- 2.1.3 Maintain a master listing of all purchasing cards.
- 2.1.4 Maintain a master listing of all cardholder agreements.
- 2.1.5 Process bank forms for changes and/or modifications to purchasing cards.
- 2.1.6 Ensure purchasing activity conduct is done in accordance with approved administrative guidelines and procedures.
2.2 Purchasing Card Approver
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- 2.2.1 Identify the employee(s) authorized to have a card.
- 2.2.2 Establish the credit limit and transaction limit for each cardholder in conjunction with the Purchasing Card Coordinator.
- 2.2.3 Prepare and submit the appropriate bank forms requesting any changes to staff purchasing cards.
- 2.2.4 Ensure each cardholder is informed of their responsibilities regarding use of the purchasing card.
- 2.2.5 Notify the Purchasing Card Coordinator when a cardholder’s employment has ended.
- 2.2.6 Review and approve respective cardholders’ monthly reconciliations.
2.3 Cardholder
- 2.3.1 Adhere to all conditions and restrictions outlined in District School Board Ontario North East’s policy and procedure and issuing financial institution.
- 2.3.2 Ensure card, monthly statements and related documents are kept in a secure location with controlled access.
- 2.3.3 Notify the issuing financial institution, Purchasing Card Approver, and Purchasing Card Coordinator of any loss or theft of the card.
- 2.3.4 Inform the Purchasing Card Approver of cancellation and return of the card or any changes to cardholder information on file.
- 2.3.5 Keep all itemized receipts and proof of purchase information for reconciliation purposes. Failure to submit an itemized receipt may result in an employee being required to reimburse the Board.
- 2.3.6 Resolve disputed charges on card using the “Purchasing Card Dispute Form” (Appendix C).
- 2.3.7 Review and reconcile monthly individual cardholder statements distributed via email at the end of each month, following the “Monthly Cardholder Statement Reconciliation Job Aid” (Appendix D).
- 2.3.8 Obtain approval from cardholders Purchasing Card Approver and submit the reconciled statement to Financial Services within 14 days of the statement date.
- 2.3.9 Cardholders will be held liable for any misuse or willful disregard or policies or procedures which result in loss of money, fraud, or collusion.
- 2.3.10 Consult with the Purchasing Card Coordinator for circumstances not specifically covered in this administrative procedure and adopt the most cost-effective approach for the purchase of goods or services.
3.0 Obtaining A Purchasing Card
3.1 DSB1 employees who as a function of their role or assignment are required to make regular purchases on behalf of DSB1, and who obtain permission from their department supervisor are permitted to obtain a purchasing card.
3.2 The employee electronically completes the “Purchasing Card-Request Form” (Appendix A) and forwards to their supervisor (purchasing card approver) for approval.
3.3 The Purchasing Card Approver electronically approves the “Purchasing Card-Request Form” and forwards it directly to [email protected].
3.4 The Purchasing Card Coordinator requests the purchasing card from the provider.
3.5 The Cardholder activates the card based on instructions and completes the “DSB1 Purchasing Card Agreement” (Appendix B) forwarding it to [email protected].
4.0 Purchases Ineligible For Purchasing Card
4.1 Personal purchases.
4.2 Goods and services that are available under an existing contract(s).
4.3 When the cost of goods and services would be significantly increased by use of the purchasing card and an alternate method of payment is available.
4.4 When goods are of a capital nature and over $500.00 per transaction.
4.5 When a competitive bid is required under 3.1.6 Purchasing.
4.6 Purchases from suppliers where products sold are not permitted under 3.1.6 Purchasing.
4.7 Purchases of services or rentals where the supplier requires access to a DSB1 facility without an existing contract or agreement in place. These are not eligible as current legislation requires the Board to ensure all suppliers performing work on our facilities meet certain legislated requirements such as workers compensation clearance and insurance requirements.
4.8 Purchases that require the cardholder to sign an agreement or contract, as agreements and contracts legally bind the Board to terms and conditions that need to be reviewed and approved by Purchasing.
4.9 All refunds or other adjustments must be returned to the card of issuance. No cardholder will accept cash or cheque from a vendor who is making a refund to a purchasing card previously charged.
5.0 Control Features
5.1 Purchasing cards are the ownership of District School Board Ontario North East and are only used for DSB1 business.
5.2 Business charges are a liability of District School Board Ontario North East and not the individual cardholder. The purchasing card program will have no impact on personal credit.
5.3 Spending limits for each cardholder are determined by the Purchasing Card Coordinator in conjunction with the Purchasing Card Approver for each department.
5.4 Temporary increases to cardholder limits may be approved by the Purchasing Card Approver and the Purchasing Card Coordinator for one-time purchases that meet purchasing card criteria.
5.4 Permanent increases to the monthly credit limit may be approved on an individual need basis. Increases will be documented and require approval of the Purchasing Card Approver and the Purchasing Card Coordinator.
5.5 Financial Services can restrict or prevent purchases from suppliers or groups of suppliers that sell items that reside outside Board policy or that are not permitted to be purchased via the purchasing card.
5.6 Cash advances are not permitted.
5.7 Financial Services will complete audits of purchasing card transactions to ensure compliance with Board policy.
5.8 Individuals making transactions on the purchasing card that do not comply with the Board purchasing policy, regulations and administrative procedures will lose their purchasing card privileges and will need their supervisor to make purchases on their behalf.
6.0 Cancellation of Purchasing Cards
The Purchasing Card Approver must complete the “Change or Cancellation Form” (Appendix E) and return the card to the Purchasing Card Coordinator for cancellation when the card is no longer required due to an employees transfer to another department, area of responsibility or voluntary/involuntary termination of employment with District School Board Ontario North East.
7.0 Lost or Stolen Purchasing Cards
7.1 The Cardholder must immediately notify the issuing financial institution and their Purchasing Card Approver of any loss or theft of the card. A “Change or Cancellation Form” (Appendix E) must be signed and submitted to the Purchasing Card Coordinator.
7.2 If a card is stolen, the police must be notified.
7.3 If the lost or stolen card should eventually be recovered or found, it must be cut in half and returned to the Purchasing Card Coordinator.
Appendices
Appendix A: Purchasing Card - Request Form
Appendix B: Purchasing Card Agreement
Appendix C: Scotiabank Purchasing Card Dispute Form
Appendix E: Purchasing Card Change Request
References
3.1.6 Purchasing-District School Board Ontario North East