1. | RATIONALE| 1.1. | This procedure supports the implementation of Policy 4100 – Internal Controls, Expenditure Management & Expenditure Reimbursement. | | 1.2. | The procedure delineates the guidelines for expenses accrued by employees, schools, and departments as they fulfill their responsibilities while representing the interests of students, the community, and the Board. |
|
2. | OBJECTIVE | 2.1. | Maintaining appropriate and effective systems of internal control based on established business practices and procedures, data integrity, and clearly defined roles and accountabilities. | | 2.2. | Ensure effective and efficient utilization of all available resources in alignment with prudent use of taxpayer funds. |
|
3. | APPLICATION AND SCOPE | 3.1. | All funding sources, including Operating, Special Purpose, and Capital Funds, are subject to this procedure. | | 3.2. | This procedure applies to all staff and departments, offering guidance on management authority, expenditure management and expectation, and staff reimbursements. The document outlines requirements and restrictions pertaining to expenditures below:| a) | Section A: Authority for Expenditures | | b) | Section B: Limitations on Expenditures | | c) | Section C: Travel Expense Reimbursement | | d) | Section D: Insurance Aspects of Employee Travel | | e) | Section E: Petty Cash Management and Use | | f) | Section F: Procurement Card |
|
|
4. | SECTION A: AUTHORITY FOR EXPENDITURES| 4.1. | Spending Authority| a) | Publication of the budget, as approved by the Surrey Board of Education, assigns authority to administration to make expenditures within the amounts and scope of the accounts allotted to them in the budget and following district policies and procedures. | | b) | Authorization is granted to the budget officer (principal or other management person) to expend or release funds. The budget officer must ensure that the expenditures are required for district operations, follow district policies and procedures and/or are in compliance with granting agency/donor terms and conditions. | | c) | The budget officer may be able to delegate responsibility; however, the budget officer cannot delegate accountability. | | d) | A budget officer or their authorized designate is prohibited from approving any expenditure or payment requisition if the budget officer or designate is the intended payee. The approval of a supervisor is necessary to ensure that individuals are not put in a position where they can authorize payments to themselves or for their benefit, in line with the principle of one-over-one approval. | | e) | One-over-one approval is required for, but not limited to, the following transactions:| i. | Travel expense claims, | | ii. | Hosting expenses, | | iii. | Procurement card transactions, | | iv. | Expense reimbursements. |
| | f) | Superintendent and Trustees transactions will be authorized by the Secretary-Treasurer or designated by the Secretary-Treasurer. | | g) | Fiscal Management Services Department will maintain an updated listing of all sites and the staff authorized to sign on each. FMS will distribute the signing authorization listing to those areas that require this information. Specimen signatures must be on file with Fiscal Management Services of all staff with authorization privileges. | | h) | Budget officer and authorized designate are accountable to the Superintendent and/or Secretary-Treasurer for the fulfillment of their responsibilities under this procedure. |
| | 4.2. | Specific Authority for Capital Fund Expenditures| a) | To facilitate the prompt and cost-efficient progress of capital projects, the Secretary-Treasurer is empowered to allocate funds for capital expenses while awaiting approval from the Ministry. |
| | 4.3. | Purchase requisition and purchase order issuance| a) | Purchase requisitions are initiated by a budget officer or authorized designate to acquire goods and services. Budget officers approving purchase requisitions are responsible for ensuring:| i. | The appropriate goods and services are being ordered. | | ii. | The expenditure is within budget capacity. | | iii. | General ledger account coding is appropriate. | | iv. | Funding agency contractual covenants are satisfied. |
| | b) | The Secretary-Treasurer or designee may override budget controls to enable purchase order issuance in emergent and special circumstances. | | c) | Obtaining goods and services without a purchase order when required by Policy 4600 Purchasing Goods & Services and related procedures is unacceptable, unless exempt under Section 4.5 of this procedure. Invoices and claims received where a required purchase order has not been obtained will be referred to the Purchasing Department, which will investigate the reason for non-compliance and report the unauthorized purchase to senior management. |
| | 4.4. | Receiving Verification Documentation| a) | When goods or services that have been ordered via a purchase order are more than $2,000, acknowledgment of receipt by the school/department is to be forwarded to Fiscal Management Services promptly to facilitate payment to the vendor (known as a three-way match). | | b) | Breakage, lost cartons, short shipments, and returned over-shipments are to be immediately reported to the vendor, Purchasing, and Fiscal Management Services, with supporting evidence/documents. | | c) | Receiving documentation signed “subject to inspection” is expected to be resolved by the receiver on a timely basis and communicated to Fiscal Management Services as to whether the shipment was short, damaged, or complete in good order. Lack of a timely disposition of the “subject to inspection” clause will be treated by Fiscal Management Services as a confirmation that the shipment was complete in good order. |
| | 4.5. | Recognition of Expenditures/Invoice Processing| a) | Payments to vendors are expected to be made within best business practiced timelines and based on appropriate validated documentation as identified in this procedure. | | b) | Invoices for a purchase order with a value of less than $2,000 from a vendor will be paid within 30 days from the date of the invoice or per vendor discount terms unless Fiscal Management Services is advised within 10 days of the date of invoice of any discrepancies on price or shipment of goods or service. | | c) | Invoices for a purchase order with a value of $2,000 or greater from a vendor, may be recorded as an expenditure by Fiscal Management Services and hold payment pending the arrival of receiving documentation. | | d) | Recognition of expenditures is effective at the time the goods or services are received. Fiscal Management Services may record an expenditure based on an invoice and suspend payment pending the arrival of receiving documentation. | | e) | A lack of budget capacity is not to stop recognition of the expenditure, where a legal obligation exists. Where recognition of the expenditure results in the budget being exceeded, Fiscal Management Services will notify the budget officer who is responsible for resolving the insufficient budget. | | f) | Where price discrepancies on invoices relate to formal quotes by Purchasing, Fiscal Management Services will hold payment and notify Purchasing. Purchasing will investigate any discrepancies and advise Fiscal Management Services of any adjustment to the invoice. | | g) | Where quantity discrepancies arise from differences between quantities ordered and received, Fiscal Management Services will pay invoices based on the actual quantities acknowledged as received. | | h) | Where the maximum purchase limit on a Blanket Purchase Order is exceeded, the budget officer is responsible for securing an increase to the value of this purchase order. |
| | 4.6. | Authority to Spend without Purchase Orders| a) | Authority to incur expenditures without purchase orders is provided for the following classifications of activity:| i. | Petty Cash expenditures; | | ii. | Internal service charges; | | iii. | Travel Expense Reimbursement; | | iv. | Systems supply contracts; | | v. | Legal fees or Legal obligations; | | vi. | Bank Procurement Card Master payment | | vii. | Insurance | | viii. | Payments that are required for immediate service (i.e. Postage meter, utilities, telecommunications) or | | ix. | Payments authorized by the Secretary-Treasurer. |
|
|
|
5. | SECTION B: LIMITATIONS ON EXPENDITURES| 5.1. | Limitations have been established on expenditures to ensure the values and credibility of the organization and individuals are maintained, to promote efficient use of the school district’s resources. | | 5.2. | Types of Expenditures with Limitations| a) | Staff and volunteer engagement efforts, limited to 3% of the school's regular school-based annual budget and $30 per staff member per fiscal year for district departments, can be approved by the school principal or manager to enhance school culture and offer support. Permitted spending includes spirit wear, non-meeting meals, or gift cards to acknowledge staff, parents, or volunteers. Payments cannot go directly to an employee or be redirected at their request.
Gift cards ought to be modest and of minimal worth, restricted to cafes or bookshops, with a maximum limit of $25. | | b) | Interior decorations for personal offices may not be purchased from district funds. Interior decorations for public areas should be modest and sensitive to the public statement they make on our spending priorities. | | c) | Working meals provisions – meals may be provided during meetings or in-service that occur over a mealtime. Prior written approval is required from a member of senior management and total costs cannot exceed the applicable meal per diem rate per number of attendees.
Payment requests must include the purpose of the meeting and the number of attendees must be documented. If a meeting has five or fewer attendees, the names of the attendees must be documented.
Trustees, executive committee, and assistant Superintendents can claim out-of-pocket expenses for attending retirement dinners or banquets in an official capacity to the maximum applicable meal per diem rate, excluding the cost of gifts. | | d) | Hospitality – is defined as the provision of food or beverages, that are provided to individuals who are not employees or Trustees and hosted by Trustee(s), member of the executive committee, or senior management, representing the district in an official capacity. Prior approval from the Superintendent is required. Hospitality expenses will be reported annually to the Board. Detailed receipts, including the names of attendees and a brief explanation of the hosting, are mandatory. | | e) | Trustees’ membership in approved organizations related to the functions of the school district, subscriptions, and minor meeting expenses will be preapproved by the Superintendent or Secretary-Treasurer. Similar expenditures by employees will be approved by the budget officer. | | f) | District or site-based funds will not cover or reimburse expenses for items considered prohibited. These items include, but are not limited to:| i. | Items for personal use, | | ii. | Alcoholic beverages or alcoholic purchases | | iii. | Cannabis or tobacco products of any type, | | iv. | Firearms, weapons, | | v. | Vaping products of any type, | | vi. | Political donations, | | vii. | Interior decorations for personal offices or spaces, | | viii. | Personal loans or cashing of personal cheques. |
| | g) | Personal Gift Cards – Expenses made with a personal gift card are not eligible for reimbursement. Reimbursements are approved when money has been spent out-of-pocket and is supported by an itemized receipt. |
|
|
6. | SECTION C: TRAVEL EXPENSE REIMBURSEMENT| 6.1. | This procedure is to clarify the process and guidelines to be followed when public funds are used for travel, meals, and other expenses incurred while performing duties on behalf of the district. It aligns with the essence and purpose outlined in the Province of BC's "Core Policy & Procedure Manual. | | 6.2. | Travel Definitions| a) | Local Travel encompasses authorized travel within the Metro Vancouver and Fraser Valley regions, which does not require completing an Application for Travel form. | | b) | Out-of-Area Travel encompasses authorized travel to a meeting, workshop, conference, or other activity held outside of Metro Vancouver and the Fraser Valley. |
| | 6.3. | Authorization| a) | If an employee is authorized by their supervisor to use their vehicle for school district business, particularly for local travel as specified, they are eligible for reimbursement at a kilometer rate detailed in Appendix 1, unless employment contracts explicitly exclude it or when a travel allowance is provided. | | b) | Provisions for trustee local travel expenses are outlined under Procedure 2300.1 Trustee Remuneration and Benefits. | | c) | In out-of-area travel cases, arrangements must be made using the most economical and practical means possible, including minimizing overnight stays when reasonable.| i. | For out-of-area travel, employees are required to complete an Application for Travel (AFT) form. This form should provide details of the purpose of the trip, venue information, and cost logistics. Additionally, before making any travel arrangements, approval must be obtained from the immediate supervisor, budget officer, and a senior management member. | | ii. | Travel outside of Canada and non-continental U.S. locations requires preapproval from the Superintendent or Secretary-Treasurer. | | iii. | Travel reimbursement that involves both school district and personal business will be provided at the lower of the following options: the actual transportation expenses incurred, or an estimation of the minimum acceptable expenses that would have been accrued if the personal travel had not occurred. |
|
| | 6.4. | Pre-Payment of Expenses| a) | No costs associated with Section C: Travel Expense Reimbursement will be made using the district’s procurement card unless preauthorized by the secretary treasurer or designate. | | b) | Requests for district payment of registration costs must be submitted to Fiscal Management Services at least 30 days before the event's start date or before the deadline for registration. | | c) | Pre-travel expenses, such as airfare and conference registration, can be submitted for reimbursement as incurred. These pre-travel claims must be referenced in the final claim for a trip. | | d) | Where prepayment of expenses has occurred and the employee is unable to attend, they must make the effort to request a refund and inform their immediate supervisor promptly. | | e) | In exceptional situations, a cash advance may be granted if the total out-of-pocket expenses surpass $1,000, or due to unique circumstances. Requests for cash advances must be sent to Fiscal Management Services at least two weeks before the trip, and the requested sum should match the estimated travel costs detailed in the AFT. If the expenses have already been settled, no advance will be given. The approved advance will be directly deposited into the applicant's bank account. | | f) | If an employee cannot attend an event and fails to secure a refund, they need to provide a valid reason for their absence. Otherwise, they are required to reimburse the district for the prepaid amounts. The employee's supervisor is responsible for ensuring the timely repayment to the district. |
| | 6.5. | Expenses Claims forms need approval from the employee's immediate supervisor and budget officer. Supervisors must ensure that the claimed expenses for authorized travel are reasonable and align with the allowable expenses as outlined in this procedure. | | 6.6. | Expense Claim submissions:| a) | Local Travel Expense Claim forms should be submitted monthly, with no claims accepted beyond 90 days from the end of the month. Separate claim forms are required for each calendar month. | | b) | Out-of-Area Travel Expense claims should be submitted within 30 days of travel completion. | | c) | Expense Claim forms must be accompanied by itemized receipts, except when claiming per diem allowances as detailed in Appendix 1. | | d) | Cash advances must be reconciled against travel expense claims; otherwise, they may be subject to payroll deductions. |
| | 6.7. | Expense Criteria| a) | Registration – Registration costs will be reimbursed based on the receipt, provided with an event agenda or program. | | b) | Air Travel – should only be utilized when ground transportation cannot adhere to the event schedule or when the limitations of distance or time render it unfeasible. Whenever possible, travelers should book all modes of travel at least one month in advance to take advantage of lower rates.
Reimbursement for air travel will cover the actual cost, provided it does not exceed the economy rate for the most direct route.
Airfare up to premium economy will be allowed when one of the below conditions are met:- When flying within Canada or the continental US, and when the total flying time exceeds 7 hours.
- In cases of a health condition, provided prior approval is obtained from the immediate Supervisor.
Travelers are required to include copies of all airfare tickets with their Travel Expense Claim form. Expenses related to flight cancellation insurance and travel agent fees are eligible for reimbursement. | | c) | Personal Vehicle - the use of a personal vehicle for business purposes will be reimbursed based on the distance driven at the current per-kilometer rate unless otherwise restricted by an employment contract and set out in Appendix 1.
Regarding local travel, the calculation of kilometers will start from the first school/office visited to each subsequent school/office, excluding the distance from home to the initial school/office and from the last school/office to home. Employees who are required to travel between work locations should make every reasonable effort to plan their work to minimize travel required.
Employees may be reimbursed for any additional cost for carrying “business use” insurance, per Section D – Insurance Aspects of Employee Travel.
For out-of-area travel, the use of a personal vehicle is permissible if the reimbursement does not exceed the cost of full economy airfare to the same destination.
Employees are encouraged to carpool whenever it is feasible to reduce expenses and limit the emission of greenhouse gases. In situations where employees are transported to the departure point (such as an airport, bus station, ferry terminal, or train station) and picked up upon their return, they may be eligible to claim the per-kilometer rate allowance, unless provisions within employment contracts exclude or where a travel allowance is received. | | d) | Vehicle Rental - Prior approval from the Secretary-Treasurer or their authorized designate is mandatory for any business-related vehicle rentals. This approval must be included while submitting the Travel Expense Claim. Vehicle rental must prove to be the most cost-effective travel option. Consideration of vehicle rental, insurance, and fuel expenses is only warranted when they result in overall savings for the district, and there are no other viable alternatives. | | e) | Ferry fees will be reimbursed based on actual receipted costs. | | f) | Other Modes of Transportation Costs - For local travel, exceptions for alternative modes of transportation may be considered on an individual basis, subject to prior approval from the employee's supervisor or designated authority before incurring expenses for alternative modes of transportation where the use of their vehicle is not possible. IE taxis, bus/shuttle services, or other commercial ride-hailing services. Approval should be based on the necessity of the transportation mode for the specific business purpose. Employees seeking reimbursement for alternative modes of transportation must submit valid receipts along with the signed/approved request in writing and should include a justification.
For out-of-area travel, expenses related to ground transportation, including airport shuttles, taxis, bus/shuttle services, or other recognized commercial ride-hailing services, are eligible for reimbursement. The Board will not reimburse premium fees (UberBlack, Lyft Lux, Limousine service, etc.) Receipts are required for expenses exceeding $20.. | | g) | Other Travel-related Costs - Receipts are required for expenses exceeding $20, specifically parking, bridge tolls, highway tolls, and road tolls. | | h) | Meals - Meals will be reimbursed at the meal per diem rates when not otherwise provided (i.e. conferences, hosts, carriers). When travel in the United States takes place, allowable per diems are applied in U.S. dollars before conversion to Canadian dollars. Meal per diem allowances are set out in Appendix 1. On the date of departure, travel status must start before 7:00 a.m. to claim breakfast; before 12:00 noon to claim lunch; and, on the date of return, travel status must end after 6:00 p.m. to claim dinner. | | i) | Accommodation - Accommodation expenses related to local functions within the local travel area (Metro Vancouver and the Fraser Valley) are typically not approved, as it is assumed that participants will arrange daily travel from their homes. Exceptions for local lodging must receive prior approval from the Superintendent, Secretary-Treasurer, or deputy Superintendent.
For events out-of-area travel, Trustees and employees are expected to choose the most cost-effective travel and lodging options, considering travel times and proximity to scheduled events, and secure lodging at government rates whenever applicable. The use of alternative accommodation services, such as Airbnb or similar short-term rental providers, poses a significant risk and is not permitted.
Claims for reimbursement should include only expenses for hotels, parking, and associated taxes. Private accommodations, such as staying with friends, colleagues, or relatives, are considered an allowable expense. The allowable rate per night is set out in Appendix 1. | | j) | Incidental Expenses- An overnight allowance is expected to cover incidental expenses, examples are noted below. The rate is set out in Appendix 1.| i. | Porter gratuities | | ii. | Personal Telephone calls | | iii. | Laundry | | iv. | Internet Charges |
| | k) | International Travel - Travel to international locations other than the United States may result in costs that are significantly greater than the per diem rates. Exceptions to the per diem rates related to international travel must be approved by the Superintendent or the Secretary-Treasurer. All expenses claimed must be supported with receipts. Should receipts not be available, the established per diem rates will apply. | | l) | Foreign Exchange - Expenses in foreign currencies are converted to Canadian dollars based on Bank of Canada exchange rates. Alternatively, the traveler may submit receipts from a currency exchange or provide a copy of their credit card statement (card number and non-related transactions redacted) to confirm the actual exchange rate applied. |
|
|
7. | SECTION D: INSURANCE ASPECTS OF EMPLOYEE TRAVEL| 7.1. | Business Use Insurance for Personal Vehicles| a) | Employees can seek reimbursement of any additional costs associated with obtaining business use insurance when they are required to use their vehicle for Board business travel more than 6 days a month as required by ICBC.
Exclusions apply to employees who receive reimbursement for travel expenses through a monthly vehicle allowance or who are contractually obligated to bear the costs of personal vehicle expenses.
To claim reimbursement, employees with business use insurance must complete the Business Use Vehicle Insurance Reimbursement form and submit:| i. | A photocopy of the vehicle's insurance documentation proving the presence of active business use insurance. | | ii. | A completed Insurance Agent’s Declaration of the Difference Between the Cost of "To and From Work" and "Business Use" Coverage, or a similar statement from the employee's insurance agent. | | iii. | Confirmation from their supervisor affirming that the employee will utilize their vehicle for more than 6 days of business travel per month. |
|
| | 7.2. | Settling Claims Arising from Accidents involving Employee vehicles while on District Business| a) | An employee is on authorized district business when kilometrage costs are eligible for reimbursement. Commuting to and from work is not reimbursable and is, therefore, not considered to be district business. Parking at work is not considered to be district business. | | b) | Claims resulting from accidents involving employee vehicles during authorized district business are typically addressed by the coverage carried on the vehicle in question or Worksafe BC. The district bears no responsibility for loss or damage to the vehicle or personal property. |
| | 7.3. | Vehicle Vandalism Claims| a) | If a student vandalizes an employee's motor vehicle at the employee's workplace during their regular shift or at an approved school/district function, the employee can seek reimbursement for the lower of the deductible portion of a damage claim or the repair cost, up to the maximum specified in the relevant collective agreement. Trustees, exempt staff, principals, and vice principals are subject to the Teachers' Collective Agreement in this regard. | | b) | To initiate the claim, the employee must submit the approved Private Vehicle Damage Claim form to the Risk Management Services Department. This submission should include the police case number for the incident and evidence of completed repairs. |
| | 7.4. | Out-of-Province Excess Hospital/Medical Coverage| a) | Where an employee completes an Application for Travel form which involves out-of-province travel, excess hospital/medical coverage is provided to generally pay for costs that exceed British Columbia Health Care programs to a maximum of $100,000.00. Coverage is limited to a maximum of thirty (30) days for any one trip. When a district trip is extended for personal purposes, the insurance is not extended for the personal period. | | b) | This insurance policy does not provide coverage for students and volunteers who are travelling out-of-province. Specific insurance must be purchased for student and volunteer travel out-of-province. |
|
|
8. | SECTION E: PETTY CASH MANAGEMENT AND USE| 8.1. | Petty Cash Allotments for sites are funded with district-supplied cash, on a revolving loan basis, to facilitate the temporary financing of purchases to be charged against district budgets.| a) | Petty cash funds are established up to the following limits upon application to the Fiscal Management Services Department.| i. | Elementary Schools $1,000, | | ii. | Secondary Schools $5,000, | | iii. | Learning Centres $1,000, | | iv. | Continuing Education Centres $5,000 |
| | b) | Application for temporary increases to these limits will be reviewed on an individual basis. Requests are to be forwarded to the Fiscal Management Services department. | | c) | Policy #4900 – Management of Site-Based Funds and its procedures describe requirements for the operation of each site’s bank account, financial records, accountability, reporting, and audit. |
| | 8.2. | Petty cash funds are authorized for use where district-recommended purchasing arrangements have not been established or are not practical for the purchase, subject to the following requirements. (Examples of district purchasing arrangements are systems supply contracts and district contracts/catalogues.)| a) | Authority has been granted to the Budget Officer (principal or other management person) over the account to be charged, or written authorization has been obtained from the Budget Officer responsible for the account. | | b) | Budget funds are available in the expenditure account (parent budget account where applicable) to cover the transaction. | | c) | An “at Arm’s length” relationship exists with the vendor (for example no conflict of interest as described in Policy #7213 – Conflict of Interest). | | d) | Documentation is acceptable and retained. | | e) | The Dollar limit, including taxes, does not exceed $2,000 per item and/or for a series of similar purchases from similar suppliers for expenditures other than the following types of purchases where no dollar limit applies: field trips or extracurricular transportation costs, or postage. | | f) | Special situations for which the Budget Officer and purchasing manager agree, in writing, that petty cash funds can be used for the purchase. |
| | 8.3. | Petty Cash Limitations – Payment for the following items are to be processed directly by the District and not through Petty cash allotment or other site-level funds.| a) | Wages, salaries, honoraria, and student scholarships. These must be paid directly by the district to facilitate compliance with legislative and contractual requirements. | | b) | Capital furniture & equipment / computer equipment | | c) | Staff travel or other professional development expenditures. | | d) | Professional services, contracts, subscriptions, licenses, or agreements | | e) | Other limitations include:| i. | Prohibited items identified in Section 5.2 f) | | ii. | Fines, Late payment or service charge fees, or penalties | | iii. | Purchases above $2,000, including taxes and delivery. | | iv. | Orders which have been split into two or more transactions to remain under the $2,000 limit. |
|
| | 8.4. | Appropriate Expenditure Documentation| a) | Acceptable documentation for support of expenditures includes:| i. | Original receipts. | | ii. | Cash register tapes with details of items purchased, listed by either supplier or claimant. | | iii. | Original invoices, or faxed copies, signed to serve as original, paid by cash or cheque drawn on the site’s bank account. (It is a preferred practice where an expenditure has been paid with a site cheque, or the site to mark the invoice paid and to record the site’s cheque number). | | iv. | Prepaid orders, with original computer-produced cheque stubs. | | v. | Credit or debit card sale drafts that detail the items purchased. |
|
| | 8.5. | Non-conforming documentation of expenditures includes:| a) | A cash register tape, credit or debit card sales draft, or other purchase documents on which the items purchased are not described by either the purchaser or the vendor (cash register tapes should not include items of a personal nature). | | b) | Supplier statements, packing slips, or delivery advices, as invoice details are required. |
| | 8.6. | Replenishment of Petty Cash Funds| a) | Requests for replenishment are to be made regularly to record expenditures promptly and facilitate accurate financial reporting. Replenishment must be requested at least monthly, and more frequent submissions are encouraged. Replenishments claimed in the final weeks of the fiscal year may not be processed until the following year. |
|
|
9. | SECTION F: PROCUREMENT CARD| 9.1. | Intended Purpose – the Procurement Card (PCard) is intended to facilitate the purchase of materials and services required to conduct Board business. The key benefits include an alternate method of paying for low-dollar consumable items and services; a reduction in the number of purchase requisitions, invoices and cheques, employee reimbursements, and petty cash transactions; and faster receipt of products or services. | | 9.2. | Roles and Responsibilities| a) | Procurement Card Program Administrator
The PCard Program Administration will be managed by the Purchasing Department. These responsibilities include, but are not limited to:- All administrative interaction between the school district and the PCard financial institution.
- Maintaining a cardholder database.
- Authorizing the issue of new cards.
- Arranging for the cancellation of cards.
- Arranging replacement, lost or stolen cards.
- Maintaining total and merchant category codes.
- Establishing and maintaining district-wide communication.
- Developing and distributing program literature and materials.
- Assisting in normal card usage procedures.
- Assisting in problem resolution
- Notification of non-compliance to cardholder and initiating appropriate action if necessary.
- Developing and providing cardholder training
| | b) | Budget Officer
The budget officer is assigned responsibility for budgets directly related to the activities they manage. This person is responsible for the authority and use of the PCard and ensuring proper reconciliation of each card issued under their authorization. By authorizing an employee for use of the PCard, the budget officer has granted this employee authority for purchases to be made and charged to the budget officer’s respective budgets. | | c) | Procurement Cardholder
The cardholder is the individual, who has responsibility for the PCard and overall management of its use, including:- Authorizing disbursements.
- Accounting and reconciliation of the procurement account purchases and credits.
- Maintaining card security to prevent unauthorized charges against the accounts.
- Ensuring purchases are following district policies, procedures, and best accounting practices.
- Notifying the PCard financial institution and the PCard program administrator of lost or stolen cards.
- Notifying the card administrator of disputed charges within fifteen days of the statement date.
- Adhering to all conditions and restrictions on card usage.
- Verifying and reconciling all account activity, prices, authorizations for payment, etc.
- Notifying the card administrator of any changes in the assignment (school, department) or in personal information (name, workplace address) or any changes that require an adjustment to the default general ledger account number.
|
| | 9.3. | Authorization of Procurement Card| a) | Use Approval
The Secretary-Treasurer authorizes Purchasing Department to issue a PCard to any employee at a school, district office, or department, where appropriate and within the board’s approval for use, under the conditions of this procedure. | | b) | PCard Credit Limits
Each PCard is restricted on the number of transactions and dollar amount of purchases per transaction and per month. The default credit limit per card will be $2,000 per transaction and $10,000 per month.
The Purchasing Department will perform periodic reviews of various cardholder groups and recommend any necessary change to credit limits to the Secretary-Treasurer or designate. Cardholders may request an increase/decrease of the credit limit through their principal or manager, to the Purchasing Department stating their reasons for the request. Requests will be reviewed for their appropriateness before recommendation to the Secretary-Treasurer or designate, for approval. | | c) | Total Category and Merchant Category Codes
Total category (TCC) and merchant category codes (MCC) identify a grouping of standard industry codes which describe the type of business and commodities of merchants. Certain TCC and MCC codes have been blocked from prohibited items and to reduce the risk of potential fraud. A cardholder may request a change to the TCC or MCC in writing to Purchasing Department stating reasons for the request. |
| | 9.4. | Establishing a Procurement Card| a) | Employees seeking to obtain a PCard can do so by completing the Procurement Card Application Form, available from the Purchasing Department. Authorization from the Budget Officer (principal or manager) is required for processing the application.
This application will include:- Name of employee
- Mailing address for the statement
- Employee’s acknowledgement of responsibilities
- Default general ledger account code
- Signature of employee
- Authorization by the Budget Officer
All applications will be forwarded to the Purchasing Department for review and consideration for a PCard. Incomplete forms will be returned to the applicant. Any denied application will be returned with the stated reason. | | b) | Purchasing Department will establish the PCard account in the name of the applicant (cardholder), the established credit limit, and the default general ledger account code. The name embossed on the card is the only person entitled to use the PCard | | c) | The PCard financial institution will forward the PCard to the office of the PCard Program Administrator, within Purchasing Department. |
| | 9.5. | Procurement Cardholder Responsibility| a) | Use and Management
The cardholder accepts full responsibility for the use of the card once activated. The PCard is strictly for School District No. 36 (Surrey) business. The PCard can be used to make any purchases within the acceptable limits of the TCC and MCC codes. PCards are prohibited from being used for:- Provisions under Section C: Travel Expense Reimbursement
- Prohibited items identified in Section 5.2 f)
- Wages and salaries,
- Cash advances,
- Capital Furniture & equipment / Computer equipment,
- Meals reimbursed via District per diem rates
- Professional services, contracts, subscriptions, licenses, or agreements
- Fines, fees, or penalties
- Purchases above $2,000, including taxes and delivery.
- Orders which have been split into two or more transactions to remain under the $2,000 limit.
The cardholder must adhere to all the conditions and restrictions imposed on the card usage. | | b) | Security
The PCard must be safeguarded, and the number must not be given out except to authorized suppliers, i.e. a supplier with whom an order is being placed. Keep the PCard and the PCard number confidential. | | c) | Lost or Stolen PCards
The cardholder must report lost or stolen cards immediately, first to the PC financial institution (Bank of Montreal @ 1-800-361-3361) and then to the PCard Program Administrator (Purchasing Department). Once reported to the financial institution, the account will be blocked instantly, minimizing the potential risk exposure. Verbal reports of lost or stolen PCards must be followed up in writing to the PCard Program Administrator by way of an Incident Report. | | d) | Cardholder Transfers to Another District Site
In the event a cardholder transfers from one school to another or between departments, the PCard need not be surrendered, but the default general ledger code must be changed.
It is the responsibility of the cardholder to immediately advise the PCard Program Administrator of any changes in assignment or personal information such as name or workplace address. Before leaving for their new assignment, the cardholder should ensure that all purchases made up to the point in change of their assignment are reconciled. | | e) | Cardholder Termination of Employment
The cardholder must inform the PCard Program Administrator of their termination of employment and surrender the card to the PCard Program Administrator. | | f) | Fraudulent Card Use
If the financial institution, cardholder or PCard Program Administrator suspects that the card has been used fraudulently, the card will be cancelled. The financial institution can suspend cards instantly upon notification by the cardholder or card program administrator. The financial institution may also inform merchants or suppliers that the card has been cancelled. If a cardholder is asked by a merchant to surrender a revoked card, they must do so. Intentional misuse or abuse of the PCard will result in immediate revocation of privileges and may be cause for disciplinary action. | | g) | Procurement Card Cancellation
A PCard can be revoked for the following reasons:
• Employment termination of cardholder. Cancellation should be notified before termination.
• Change in PCard financial institution/program.
• Suspected misuse or fraudulent use of PCard.
• Non-compliance with district policies and procedures.
• Change in cardholder’s employment assignment, where duties do not necessitate the need for PCard.
• Lost or stolen cards.
• Budget officer’s request to terminate Pcard(s). Such requests would be in writing to PCard program administrator.
• Secretary-Treasurer’s request to terminate card(s). | | h) | PCard Statement Reconciliation
The cardholder must obtain receipts for each transaction to reconcile the purchases made on the PCard account. Please review Section E – Petty Cash Management and Use for the definition of acceptable documentation. Should the cardholder have a concern with a transaction, the cardholder should seek resolution directly with the merchant. If the problem cannot be resolved, the cardholder must notify the PCard program administrator immediately.
The PCard program administrator will follow up the dispute with the financial institution and advise the cardholder of the outcome. |
| | 9.6. | Procurement Card Accounting Procedures| a) | Receipt Collection and Submission
The cardholder must ensure that the Pcard statement, including supporting receipts, are signed by the budget officer and submitted to the Fiscal Management Services Department for inspection no later than the 10th day of the following month. Receipts must adhere to Section E: Petty Cash Management and Use. The Fiscal Management Services Department conducts random checks on a selection of claims based on assessed risks. Failure to submit will result in the cancellation of PCard. | | b) | PCard Statement Approval
For every cardholder they supervise, the budget officer must review the PCard statement and receipts and sign the statement as evidence of their approval before submission of the PCard statement to Fiscal Management Services.
Principals are responsible for their school-based budget and must review the PCard statements and receipts and sign the statement as evidence of their approval before submission of the PCard statement to Fiscal Management Services. | | c) | PCard Payments
The PC financial institution will forward a master statement to the Fiscal Management Services Department for payment monthly. Fiscal Management Services will proceed to make payment to the PC financial institution in accordance with the agreement with the financial institution. | | d) | PCard Journalize of Charges
At the time of receipt of the PCard master bill, Fiscal Management Services will proceed to journalize the charges to the default general ledger codes associated with each PCard number.
Should the cardholder wish to change a general ledger account code for a particular charge, such requests will be in writing to the Fiscal Management Services Department with the applicable budget officer's approval. | | e) | Reimbursement from Site Funds
Where funds were collected at the school or department level to offset an expense paid by PCard, a site cheque payable to “School District No. 36 (Surrey)” must accompany the PCard statement submitted to Fiscal Management Services. |
|
|
10. | REFERENCES AND RELATED DOCUMENTS| 10.1. | School Act, section 23 (2), School Act Regulation 7 (1) (a) | | 10.2. | Province of BC’s Core Policy & Procedures Manual | | 10.3. | Policy 4100 – Internal Controls, Expenditure Management & Expenditure Reimbursement | | 10.4. | Policy 4600 – Purchasing Goods & Services | | 10.5. | Policy 4900 – Management of Site-Based Funds | | 10.6. | Policy 7213 – Conflict of Interest – Employees | | 10.7. | Appendix 1-1 Expense Rates and Allowances
|
|
11. | AUTHORITY AND RESPONSIBILITY| 11.1. | Secretary-Treasurer | | 11.2. | Finance Director |
|
12. | HISTORY |
