The intent of this reconciliation best practice recommendation is to communicate strategies that streamline the entire ProCard process while following audit compliant procedures. These are guidelines, incorporating key elements of internal control that were developed through a collaborative effort with the campus and have demonstrated cost and time savings. Departments should establish their own ProCard guidelines addressing timeliness of duties and who is responsible for specific functions to demonstrate segregation of duties.
OFM has approved a receipt requirements waiver for purchases up to $75 and it has been reviewed and approved by UW Internal Audit.
The $75 receipt waiver is not mandatory. However, individual departments have the discretion to implement this. If the department decides to use this waiver, then it must be stated in the department's internal policies and contingency procedures.
Reviewing Transactions in PaymentNet
It is critical to develop strong internal controls, specific to department needs. Departments must display that each ProCurement Card transaction is reviewed by at least two people, the cardholder and the reviewer. An online PaymentNet review does not fulfill separation of duty functions alone; two individuals are required to review and demonstrate review compliance with signatures on a JPMorgan Chase monthly UW Transaction Detail with Notes & Accounting Codes report.
Departments must have at least one individual review the online transactions at PaymentNet. Only the online review box needs to be checked. It is not necessary to have both cardholder and reviewer to go online to review the transactions on PaymentNet, but it is recommended whenever possible. When only one individual reviews the transactions online, the second individual should review transactions with a hardcopy of the monthly statement along with a PaymentNet report detailing the specifics of the purchases. To demonstrate separation of duty functions, the cardholder and reviewer should sign and date the “UW Transaction Detail With Notes & Account Codes Report”.
- Each ProCurement Card transaction must be reviewed by at least two people, either with a PaymentNet online review or with a hardcopy review procedure.
With original source documentation, the cardholder and/or reviewer must review the cardholder’s transactions at PaymentNet:
- validating that the purchase was received at the agreed upon price
- enters details of the purchase in the transaction note box
- ensures correct budget and object code allocation
- checks the appropriate review boxes, “Cardholder” and/or “Reviewer” boxes
- The purchase cycle is closed when it is determined that the correct amount was charged and the item was received in acceptable condition.
Do not check off the review boxes until the purchase cycle is closed.
- Do not check the cardholder or reviewer box if a dispute has been initiated with the vendor or online with PaymentNet's dispute process.
- Do not check off the cardholder or reviewer box if the transaction is being reviewed by JP Morgan's Fraud Department.
- Print the “UW Transaction Detail With Notes & Account Codes Report ” after transactions have been reviewed and allocated to appropriate account codes.
- To demonstrate separation of duty and approval of transactions, the cardholder and reviewer must sign the “UW Transaction Detail With Notes & Account Codes Report”.
- allocate charges to proper budgets and object codes
- ensure appropriate taxes are issued to the purchase
- enter pertinent information into the transaction note box
- check a Review box
- print the UW Transaction Detail with Notes & Accounting Codes report at the end of the monthly accounting cycle (cardholder and reviewer signatures are required)
- Match each transaction on the Transaction Detail report to its corresponding source document and support and verify that it is allowable and that the quantities and amounts are correct
- Investigate and resolve any discrepancies as necessary
- Reasonableness is satisfied when discrepancies are within 10% of expected cost, not to exceed $100, (given this latitude it’s still the department’s decision to establish what is reasonable)
3. When finished, sign the UW Transaction Detail with Notes & Accounting Codes report
- This signature documents reconciliation and demonstrates segregation of duty requirements when the cardholder signature is also present
- A signed and dated report is required to verify that expenditures have been reviewed for appropriateness
- Monthly "UW Transaction Detail with Notes & Accounting Codes" report
- Evidence of purchase approval include:
- Email authorization
- Department form
- Department blanket authorization for individual cardholder
3. Original invoice or receipt from vendor or:
- Faxed invoice from vendor
- Email invoice from vendor
- Electronic or printed online payment screen from vendor
- Scanned invoice or receipt
4. Confirmation of receipt of goods include:
- Signed packing slip by receiver of goods
- Email verification by receiver of goods
- Signed transaction log by receiver of goods
- “Received by” signature and date on invoice by receiver of goods
- Receipt for items purchased in-store
- Itemized bill from restaurant with list of attendees and purpose of event
5. Perjury Statement when any of the above requirements cannot be satisfied