03-a-021 - Administration of Agency Business Procurement Card (BPC) Programs (May 27, 2003)
|INFORMATIONAL CIRCULAR NO. 03-A-021|
|DATE:||May 27, 2003|
|SUBJECT:||Administration of Agency Business Procurement Card (BPC) Programs|
|A & R CONTACT:||Tim Hund||(785) 368-6347||(firstname.lastname@example.org)|
|SUMMARY:||Updated Guidance for Administration of Agency BPC Programs|
Due to the increased scrutiny of procurement card programs at governmental entities across the nation, the Division of Accounts and Reports has recently completed a review of account criteria maintained by UMB Bank for Business Procurement Cards (BPCs) throughout the State. Our observations and associated recommendations are summarized below:
The billing cycle dollar limits for a number of accounts appeared to be high for a number of accounts.Billing cycle limits for new accounts should initially be set no higher than $5,000 for cards and $10,000 for cardless accounts (contract or registration), unless historical usage justifies higher limits.
Two regular BPCs were issued to a number of individuals.Only one regular BPC should be issued to an individual, unless the Division of Accounts and Reports has approved an exception.
A number of accounts had no activity for more than one calendar year.BPCs with no activity for one calendar year should be cancelled (except for automotive BPCs).
Several cardless accounts were in the name of an agency, rather than in the name of an individual.BPCs should always be issued in the name of an individual. This enhances the internal control environment and identifies the person responsible for charges to the account.
Agencies frequently purchase items on-line from vendors that use PayPal as the payment vehicle. While there are benefits associated with purchasing items from vendors that use PayPal as the payment vehicle (items frequently are not available elsewhere and are often priced lower than at other sources), use of PayPal can result in using vendors that are normally blocked electronically by the transaction verification/approval process.PayPal transactions should always be approved in advance by the agency BPC Coordinator to ensure that the items to be purchased and vendors used are appropriate for official State business.
These policy updates have been incorporated into the Business Procurement Card General Procedures, which can be found at http://www.da.ks.gov/ar/genacct/Audit/BPCprocedures.htm.