Procurement Card Program

District staff members who frequently purchase goods for the district are eligible to receive and use a Procurement Card (P-Card), after appropriate authorization from their supervisor and the Purchasing department. The P-Card may be used with any qualified merchant who accepts District procurement cards.

Procurement cards (P-Cards) are used for traditional small dollar purchases or travel, with total cost not to exceed $5,000 (exceptions may be approved on a case-by-case basis), including freight and tax. Uses may include but are not limited to; operating supplies; books, equipment; subscriptions; conference registration fees; official travel; professional membership and dues.  

The P-Card is to be used for Renton School District business only, not for personal use. All transactions made using the P-Card must benefit and support the District’s strategic goals.

The procurement card program manager for the District is the Purchasing Manager.

Procurement Cards are generally used for low-dollar, high-volume, District expenses that cannot be efficiently purchased via purchasing requisition. District Policy 6213, Reimbursement for Staff Travel Expenses, and its associated procedure 6213P, also govern staff travel expenses.

Card Accountability

Each card custodian will maintain a detailed log of card issuance as cards are checked in and out to authorized cardholders.  Card activity and cardholders must be recorded and reconciled to maintain the integrity of the program.  At a minimum, the log will identify the date the card was issued, to whom it was issued, purpose for issue, and date the card was returned to the card custodian.

Memorandum of Understanding (MOU)

Annually, A Memorandum of Understanding (MOU) is to be completed by the staff checking out a school/department card and the original must be kept on file by the card custodian. By signing this MOU, the staff checking out the card understands that Renton School District has authorized use of the District’s procurement card for authorized business expenditures only. 

Each employee utilizing the District procurement card must complete a MOU on annual basis and remain a qualified District employee for the duration of its use.

Signatory Authority

All items purchased must abide by Renton School District policy. Some purchases may require accepted terms and conditions adhering to the approval process and an official signature. The cardholder should never, under any circumstances, be involved or associated in such scenarios and should never execute a purchase using their assigned purchasing card without consent of Purchasing (e.g., the supplier asks you to sign an agreement as a condition of the purchase).

Safeguards

Cardholders are required to store procurement cards in a safe, secure location. Only the approved cardholder is authorized to make purchases using the procurement card and are prohibited from allowing anyone else to use their procurement card.

If a procurement card is lost or stolen, the cardholder must immediately report the loss to the issuing bank, the cardholder’s direct supervisor, and the procurement card administrator. If the occurrence happens after business hours, the cardholder should immediately call the issuing bank and report the lost or stolen procurement card. The telephone number is located on the back of the procurement card and should be recorded and stored in an alternative location for accessibility in case of emergency.

Credit Limits

Each individual procurement has a single transaction credit limit and a monthly expenditure limit. Limits may be increased or decreased, with approval, depending on unit requirements and to accurately reflect the spending level in accordance with authority and spending history.

Temporary increase in credit limits. For a temporary increase in the single transaction and/or monthly expenditure limits above previously approved credit limits, the following approvals are needed before the temporary limit can be granted (this can be in the form of an email):

• Temporary credit limit increase between $501 – $5,000 – Responsible Administrator
• Temporary credit limit increase between $5,001 – $15,000 – Purchasing Manager
• Temporary credit limit increase, $15,001 and above – Executive Director -Business Services

Fraudulent Charges and Disputing Transactions

The disputed items process allows cardholders to withhold payment of fraudulent charges appearing on the statement until the disputed items are resolved. Fraudulent charges are the only items the cardholder will be allowed to dispute.

A fraudulent charge is an unauthorized transaction(s) made with a lost, stolen, compromised, or counterfeit card/card number. The cardholder must communicate with Purchasing to reissue a new card. The cardholder should then notify his/her direct supervisor and Purchasing.

Disputable transactions are merchant errors or errors in billing between the merchant and cardholder. For example, these may include multiple billing, billing the wrong amount, billing without receiving merchandise, or billing on a cancelled order. If a charge is disputable, notify the Purchasing for assistance.

Business Services requires frequently reviewing all transactions to identify fraudulent charges as soon as possible. Detecting fraudulent charges promptly allows the bank adequate time in pursuing all investigations with efficiency.

Declined Transactions

If a transaction is declined, the cardholder should call the P-Card administrator for an explanation of the denial. The most common reasons for P-Card declinations include:

• Monthly spending limit exceeded
• Restricted vendor or Merchant Category Code (MCC)
• Single transaction limit exceeded

Delivery/Ship-To Address

All commodities ordered via procurement card needing to be shipped must be delivered to a destination that is an official Renton School District address or verifiable off-site location due to a special project or grant activity. This internal process is necessary for preventing fraudulent activity.

Accounting and Reconciliation of Expenditures

A detailed sales slip, receipt, or invoice must be provided for each item on the cardholder’s monthly statement. As purchases occur, card custodians must retain original documentation.

Supporting Documentation. Obtaining some form of official supporting documentation is crucial, whether the purchase is made in person, via telephone, facsimile, postal service, or online. Any transaction the cardholder cannot provide said documentation or an Affidavit of Cause for will be considered a personal expense, and the cardholder will reimburse the District immediately. If not compliant, further disciplinary actions will be taken.

Valid supporting documentation may include:

• Itemized Receipt and/or transaction slip from the merchant
• Order form
• Invoice showing credit card payment with detailed descriptions
• Packing slip from the delivery annotated by the cardholder as ordered by, received by, paid by and signature of the cardholder.

All documentation must include the following minimum information (cardholder must handwrite any of these items on the receipt if the vendor receipt does not include them):

• Vendor name
• Date of the purchase
• Description and quantity of each item purchased
• Per item cost, if available from the merchant
• Total cost of the transaction
• Cardholder name and card number

Cardholders should access their account online throughout the open cycle and for each transaction:

• Reallocate the charge to the most appropriate accounting code.
• Provide an explanation of why the item was purchased and how it will be used.

A cardholder activity report and supporting documentation for each transaction must be retained with the card custodian each month. The Cardholder Activity Report must be signed by the card custodian and designated approver verifying all transactions.

Reconciliation of transactions posted required. If a transaction has not been reconciled, Purchasing will send out a notification of possible non-compliance. If requested documentation is not submitted to Purchasing within the noted time frame, the procurement card will be suspended until such time as the documentation is submitted and has satisfied the requirement per the program administrator.

Exceptions

It is understood there may be cases when the use of the procurement card may be expanded outside the traditional policy. All requests for exceptions to the policy and procedures established in this guideline must be by a written submission to Purchasing via email to the program administrator. Purchasing will review any and all requests and notify the requestor of the approval or denial. Any and all copies of documentation pertaining to said request should be kept on file in the department and submitted as supporting documentation with the purchase receipt and activity log. The exception request must be made prior to the purchase.