Purchasing operations share best p-card practices
By Susan Avery -- Purchasing, 5/22/2008 1:50:00 PM
Purchasing operations share real-world best practices for better detecting and controlling p-card misuse and out-of-policy spending in a new study, “Auditing and Compliance Strategies for a Solid Purchasing Card Program” issued by JPMorgan in New York.
Companies surveyed include Chevron Corp., ConocoPhillips, International Paper and Monsanto Co.
Among the best practices highlighted in the report:
• Use technology to streamline back-end auditing. Best-in-class systems enable program managers to block unauthorized purchase categories, monitor corporate compliance, modify spending limits and cancel cards.
• Mandate training for cardholders before a card is issued. Best-in-class companies keep education at the forefront and train early and often.
• Audit beyond the traditional. Best-in-class organizations enhance their auditing practices by looking beyond traditional controls such as cardholder spending limits and restricted Merchant Category Codes. For instance, organizations should consider conducting audits on purchases made in the evening or on weekends.
• Conduct periodic peer reviews before official audits occur. To mitigate improper card use and help support Sarbanes-Oxley requirements, best-in-class organizations also perform ongoing peer reviews of purchasing practices well in advance of regularly scheduled audits
See: P-cards: A big idea for small companies
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