Developing and maintaining strong compliance policies for purchasing cards (p-cards) is one of the issues facing organizations today. Several top-performing organizations participated in a recent J.P.Morgan study on p-card use and discussed best practices that help them maintain control of their organization’s p-card programs.

Technology

Incorporating technology can help p-card administrators block unauthorized purchases, monitor compliance, change spending limits, and cancel cards. Technology can also help administrators recognize p-card misuse and abuse. To help prevent misuse, cardholders should complete a training course before receiving their cards, and training should continue as long as the employees remain cardholders. It is important that employees are aware of their roles and responsibilities as cardholders.

Audits

Looking beyond traditional controls and conducting audits on purchases outside of the norm, such as purchases shipped to an employee’s home rather than to the business address, enhances the audit process. P-card administrators should also look out for instances such as purchases being made in the evening and weekend or items obtained using Web sites like eBay.

Peer Review

In addition to audits, organizations may consider performing regular peer reviews of purchasing practices. Peer reviews can help regulate improper p-card use and help maintain Sarbanes-Oxley compliance. With these strategies, organizations can create a more effective p-card program and improve compliance and the audit process.

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