SUSPENSION / REVOCATION OF P-CARD PRIVILEGES- Business Process

Summary:

The responsibility of the individual cardholder is a critical component of the LaCarte P-Card Program. This includes using the card for allowable purchases, staying within the $1,000 per transaction limit, and submitting the monthly cardholder report package (all receipts and transaction log) on time.

Late Monthly Submissions

Incomplete Monthly Submissions

Misuse

Revoking the P-Card

Late Monthly Submissions:

A cardholder who fails to submit her/his monthly cardholder report package five business days after the close of the billing cycle (5^th of every month) is considered late in the submission.

Three weekly e-mail reminders will be sent to the cardholder (and Business Manager) notifying him/her they are late in submission. On the fourth week, if the documentation is not received, the P-Card Manager advises the cardholder (and Business Manager) that their P-Card privileges will be suspended until the completed monthly report package has been received. Once it has been received and audited, the P-Card Manager may reinstate the card privileges. If receipts are never received, the cardholder may be held personally responsible for the reimbursement of the charges incurred within the billing cycle. Also, if the P-Card Manager determines that the cardholder has established a pattern of late submission, the card privileges may be permanently revoked. This decision is made at the discretion of the Manager, based on the number of late or incomplete submissions and may take into account possible mitigating circumstances for any given cardholder.

Incomplete Monthly Submissions:

There are times when a cardholder may submit the monthly cardholder report package on time, but during the course of auditing, it is determined that the submission is incomplete. This could be due to a missing itemized receipt, a missing documentation, etc.

 At the point the submission is determined to be incomplete, the P-Card Manager advises the cardholder by e- mail that the submission is incomplete and explains what is needed to correct the submission. Three weekly e-mail reminders will be sent to the cardholder (and Business Manager) notifying the cardholder of the missing documentation. If the problem is not rectified, the fourth e-mail attempt will notify the cardholder that they will be held personally responsible for the charges incurred on the missing documentation (i.e. a payroll deduction will be taken). As with all late submissions, the P-Card Manager has the authority to suspend or permanently revoke card privileges if it is determined that a pattern exists of missing/incomplete submissions.

Misuse:

If during the monthly audit process, the P-Card Manager determines that there has been misuse of the card, the P-card Manager may revoke the cardholder’s P-Card privileges.

Misuse can take a number of different forms. For example, the following could be considered misuse: using the card for a restricted or prohibited transaction; splitting purchases in order to circumvent the per transaction limit; making personal purchases.

If, in the opinion of the P-Card Manager, the misuse is deemed minor, or is the first offense, the Manager will send an e-mail notification to the cardholder (and Business Manager) of the misuse, informing them that restitution for the violation in the form of a credit to their account, a check, or a payroll deduction must be obtained within 7 working days of the notification. Upon the second offense, the Manager will send an e-mail notification to the cardholder (and Business Manager) of the misuse, informing them that restitution for the violation in the form of a credit to their account, a check, or a payroll deduction must be obtained within 7 working days of the notification. Also, permanent revocation of their p-card privileges will be taken into consideration by the Office of Procurement depending on the seriousness of the offense and identification of patterns of abuse/misuse. Upon the third offense, the Manager will send an e-mail notification to the cardholder (and Business Manager) of the misuse, informing them that restitution for the violation in the form of a credit to their account, a check, or a payroll deduction must be obtained within 7 working days of the notification. In addition, their p-card privileges will be permanently revoked and possible disciplinary action will be pursued at that time.

If the misuse is determined to be major, the P-Card Manager discusses the violation(s) with the Director of Purchasing, prior to sending the revocation notice and initiating a payroll deduction and possible disciplinary action. Upon approval, the Manager will send the revocation and payroll deduction notice to the cardholder, with a copy to their Business Manager.

Revoking the P-Card:

Once the decision has been made to revoke the cardholder’s P-Card privileges, both the Cardholder and the Business Manager are sent a Revocation Notice. A copy is retained in the P-Card Program administrative file.

The P-Card Manager immediately accesses the P-Card on-line system and revokes the card privileges with the issuing bank. The P-Card Manager will follow up with the Business Manager for the return and destruction of the card.