Purchasing Card
FREQUENTLY ASKED AUDIT QUESTIONS
Cardholders, Site Managers and Divisional Business Offices should be prepared to respond to random audits or reviews of Purchasing Card activity and documentation. These audits are conducted by Purchasing Card Program Staff, Internal Audit Staff, UW-System Administration and the Legislative Audit Bureau. Below are sample questions or issues that your department/site may be asked to address during a routine audit.
- Are the card(s) normally kept on site or carried by an authorized user?
Ideal Answer: EITHER. Is some cases, it makes more sense for the cardholder to carry their card in their wallet or purse. If the cardholder uses their card less frequently, however, he/she may choose to store the card in a locked drawer/safe in their office. Either method is acceptable, so long as the onsite location or authorized user provides adequate security for the card and card number. - Is there a signed Designated User Agreement Form on file for each additional user of the card or card number?
Ideal Answer: YES. Copies of all signed Designated User Agreement Forms are kept on file in the department for the required seven years, even if the designated user has departed. - Does the Site Manager use a purchasing card he/she is managing to make purchases?
Ideal Answer: NO. The reconciliation process is done independently of the purchasing process. The possibilities of errors and/or inappropriate charges could occur without such reconciliation. - Where is the original source documentation for the Purchasing Card stored? Who is responsible for retaining the documentation?
Ideal Answer: The original source documentation is retained by the Site Manager in his/her office or in a central business office for the required seven years. The cardholder is NOT responsible for retaining the documentation. - Is the departmental records retention period seven years for supporting documentation?
Ideal Answer: YES. The department maintains all records, receipts, statements, etc. onsite for the required seven years. - Is the supporting documentation detailed enough to determine what was purchased?
Ideal Answer: YES. If the vendor documentation is not sufficient, the cardholder has provided a detailed, handwritten explanation of what was purchased. - Has the card been used to purchase items listed as unallowable on the Purchasing Cardholder Agreement Form?
Ideal Answer: NO. The card use has been limited to acceptable purchases only. - Was the card used to conduct business with any vendors listed on the Shop@UW website?
Ideal Answer: NO. The department uses Shop@UW to conduct business with state contracted vendors. - Do any of the transactions have the appearance of Serial Purchasing?
Ideal Answer: NO. The cardholder has not split transactions to avoid the $5, 000 single purchase limit. He/She understands that all purchases greater than $5,000 must be ordered on a requisition and processed by Purchasing Services. - Were there taxes paid on the purchasing card?
Ideal Answer: NO. The cardholder is aware that the University is exempt from State Sales and Use Tax. He/She notifies vendors of our tax exempt status and refers to the University’s tax exempt number at the point of sale. If sales tax is charged in error, in an amount greater than five dollars, the cardholder contacts the vendor and requests the dollar amount be credited back to his/her card number. All attempts are recorded on the original source documentation. - If there are travel-related expenses, has the card been approved for travel?
Ideal Answer: YES. There is a signed Travel Agreement Form on file for the cardholder at the Purchasing Card Program Office. The cardholder and site manager have also attended a Travel Training session. - Is the signed Statement of Account Report included as part of the source documentation?
- Ideal Answer: YES. The cardholder printed and signed the bi-weekly Statement of Account Report. The Statement and source documentation was then forwarded on to the site manager for review and reconciliation. The site manager signed the Statement of Account Report when the process what complete. All source documents are kept on file for the required seven years.