PROCUREMENT CARD (P-CARD) MANUAL

A Procurement Card (P-Card) Manual serves as a comprehensive guide outlining the policies, procedures, and best practices for using procurement cards within an organization. It ensures compliance with state regulations, promotes transparency, and prevents misuse of public funds. By establishing clear guidelines for authorized purchases, spending limits, and reconciliation processes, the manual helps streamline procurement, reduce administrative costs, and enhance financial accountability.

Below is a Procurement Card (P-Card) Manual template and supporting forms, designed to establish clear guidelines for the responsible and efficient use of P-Cards within your organization. This template can be customized to align with your organization’s specific policies and operational needs. Before implementation, consult with your P-Card Administrator, finance department, and other key personnel to ensure compliance with internal controls, regulatory requirements, and best practices.

P-CARD BEST PRACTICES

1. Establish Clear Policies & Guidelines

Develop a Comprehensive P-Card policy manual outlining permitted and prohibited purchases, spending limits, and reconciliation procedures.
Ensure all cardholders understand and acknowledge the policies before using the card.

2. Implement Strong Internal Controls

Define spending limits and merchant category restrictions to prevent unauthorized transactions.
Require pre-approval for certain types of purchases or transactions over a set threshold.
Regularly audit and review transactions to detect and address potential misuse or fraud.

3. Train & Educate Cardholders

Conduct mandatory training sessions for new P-Card users on proper use, responsibilities, and reporting requirements.
Provide refresher courses to ensure continued compliance with policy updates.

4. Monitor & Reconcile Transactions Promptly

Require timely submission of receipts and transaction documentation.
Establish a monthly reconciliation process to verify purchases and resolve discrepancies.
Utilize P-Card reporting tools to track spending patterns and identify potential misuse.

5. Enforce Accountability & Consequences

Assign cardholder accountability by requiring signed agreements outlining responsibilities.
Implement consequences for misuse, including suspension or revocation of P-Card privileges and disciplinary action when necessary.

6. Leverage Technology for Oversight

Use automated expense tracking systems to monitor spending and flag unusual transactions.
Integrate P-Card data with financial management software to improve reporting accuracy.

PROCUREMENT CARD (P-CARD) MANUAL