THE BIG PICTURE. Enhanced Data The Concept – The Culture.
-
Upload
isabel-jefferson -
Category
Documents
-
view
222 -
download
0
Transcript of THE BIG PICTURE. Enhanced Data The Concept – The Culture.
Data Elements Level 1 Level 2 Level 3 Level 4
Cardholder Information X X X Transaction Amount/Date X X X Currency Code Conversion X X X Sales Tax – Calculated X Sales Taxes – Paid X X Customer Code X X Merchant Tax ID X X Industry Merchant Postal Code X X Specific Merchant State/Province Code X X Ship to Postal Code X Ship from Postal Code X Freight Amount X Duty Amount X Destination Country Code X Item Product Code (Commodity Code)
X
Item Description X Item Quantity X Item Unit of Measure X Discount Amount X
Enhanced Data
TOP TEN: BEST PRACTICES
• NUMBER 10:– USE THE INFREQUENT BAD APPLES AS
EXAMPLES– Make consequences known of improper use
• “DOD publicizes a shortlist of employees who have been held accountable for illegal or improper use of
the card.*
TOP TEN: BEST PRACTICES
• NUMBER 9:– ESTABLISHING A MULTI_FACETED
STRATEGIC APPROACH TO MONITORING AND OVERSIGHT
• GSA mandates that contractors provide electronic reports to agency mangers, that are secure and easy to access over the Internet.*
• “A strong training program, state of the art tools,. And a detailed review structure gives federal agencies all the tools necessary to effectively run their card programs
TOP TEN: BEST PRACTICES
• NUMBER 8:– TAKE ADVANTAGE OF PREVENTIVE
CONTROL TO MINIMIZE EXPOSURE• Merchant Category Code Blocking
mechanisms are available from all card providers
• GSA publishes a list of MCC codes Govt might consider restricting: GSA’s Blueprint for Success: Purchase Card Oversight Guide
TOP TEN: BEST PRACTICES
• NUMBER 7:– MAKE TRAINING MANDATORY
• In Testimony to congress, GAO emphasized that effective management or an organization’s workforce, its human capital, is essential to achieving results and is an important part of internal control
• USDA issues a tri-fold Purchase Card “Quick Guide” to cardholders to consult as a quick reminder on appropriate use of the card*
TOP TEN: BEST PRACTICES
• NUMBER 6:NUMBER 6:– ENSURE SEPARATION OF DUTIES
• Responsibilities of cardholders, reviewing officials and agency program coordinators should not overlap
• DOD states: “Separation of duties creates a situation that should preclude errors or attempts at fraud or embezzlement from going
undetected”*
TOP TEN: BEST PRACTICES
• NUMBER 5:– IDENTIFY APPROPRIATE
OVERSIGHT OFFICIALS AND CLEARLY DELINEATE RESPONSIBILITIES
• DOD P-Card Program = approx.. five to seven cardholders to each reviewing official
TOP TEN: BEST PRACTICES
• NUMBER 4:– ESTABLISH SPENDING LIMITS
COMMENSURATE WITH NEEDS• Cardholders can receive a one-time
spending limit increase in the event of a legitimate need to do so.
• Annual review of the program should include an assessment of the credit limits, identifying shortfalls or over-allocation
TOP TEN: BEST PRACTICES
• NUMBER 3:– BE SELECTIVE IN ISSUING CARDS
• Establish an effective approval process– what is the card needed for?– Frequency of use– “ Right cards in the right hands”– credit utilization maximized, tracking minimized
TOP TEN: BEST PRACTICES
• NUMBER 2:– COMMIT THE RESOURCES
NEEDED TO ACHIEVE SUCCESS• Business Finance Magazine-
“Preventing P-Card Plateaus,: – “ don’t cripple program by trying to run it
too cheaply”
TOP TEN: BEST PRACTICES
• NUMBER 1:– ENSURE STRONG MANAGEMENT SUPPORT
OF CONTROLS– GSA: “It is no coincidence that agencies that
clearly communicate their intolerance for payment delinquency, misuse and abuse, and hold those who fail to perform accountable, also have the best run card programs”
Blocking Features
• Corporate Limit
• Single Transaction Dollar Limit
• Daily / Monthly Card Spend Limits & Number of transactions
• Blocking Capabilities – no limit• Country Code
• Cash Advance
• Merchant Category and Specific Supplier
• Single Per Transaction Limit by specific Supplier / MCC
Departmental Account
• Central billed accounts
• Usually has a plastic
• Travel expenses or specific group purchases
Declining Balance Accounts
• With or without replenishment
• Budget, Project Card and petty cash
• Consultants or temporary employees
Account Receivable
• Anyone’s payable is someone’s receivable– Ghost account– The bank credit card statement becomes the
Corporation billing process– Savings attached to automated payments– Eg. Via Rail Canada
Consultative Program Evaluation
Value Realization (VRP) is a customized consulting service that includes:
•In-depth analysis of Accounts Payable •Industry 'Best-Practice' Recommendations•Policy and Procedure Review
Program objectives:•Scope Opportunity•Predict Performance Using Benchmark Averages•Identify and Explore key spend thresholds, top vendors, top commodities and eCommerce opportunities•Track and Celebrate Successes•Rebates