PROCUREMENT CARD PROGRAM HANDBOOK

Transcription

1 PROCUREMENT CARD PROGRAM HANDBOOK Current Versin Rev. 8/2018

2 TABLE OF CONTENTS TOPIC PAGE Welcme and Cntacts... 3 Cde f Ethics... 4 Lst r Stlen Card... 5 Limits and Merchant Categry Cde (MCC Cdes)... 5 Rles and Respnsibilities Cardhlder... 6 Apprving Official... 7 Reallcatr... 8 Use f the Prcurement Card... 8 Purchasing Authrity... 9 Hw the Prcess Wrks Preapprval... 9 Purchase... 9 Selecting a Merchant Placing an Order Receive Gds/Review Purchase Dcumentatin Sales Tax Cmmunicatins and Reallcate Recnciling the Bank Statement Prhibited Transactins Excluded Merchant Types Allwable PCard Purchases f Services Prizes, Awards, and Gifts Declined Transactins Returns and Exchanges Disputed Transactins Apprving Official Review Imprper Purchase Prcedure Definitin f Terms Attachments: Lst Transactin frm Cardhlder Agreement Mnthly Checklist and Certificatin frm Transactin Header Sheet Fiscal Delegate Signature Authrizatin frm Page 2

3 WELCOME TO THE PROCUREMENT CARD PROGRAM The Prcurement Card Prgram (PCard) is a payment methd where department persnnel are issued a Visa t pay vendrs fr small dllar items purchased fr Cllege business. PCards are nly issued t benefited emplyees. Just as with any regular cllege purchase, all purchases paid fr with a PCard shuld be preapprved by the Apprving Official/rg wner BEFORE riginatin. All charges are the liability f the Cllege. There is n persnal liability unless the terms and use f the card are vilated. It is imprtant t remember the PCard is simply a methd f payment. As a result, dcumenting purchases in cmpliance with state, system, and cllege prcedures can be time cnsuming. Please ensure yu read this entire handbk and pay clse attentin t thse requirements. We hpe yu find the Prcurement Card Prgram helpful in efficiently cnducting business fr Red Rcks Cmmunity Cllege. Please d nt hesitate t ask questins regarding any aspect f the PCard Prgram. We welcme yur input and suggestins fr imprvement f this prgram. Using This Handbk This handbk will prvide yu with the basic steps fr using the PCard Prgram. It cvers usage, cmpliance, dcumentatin, reviewing and apprving statements, reallcating transactins and mre. We understand that all situatins may nt be addressed in this handbk. If yu have unique circumstances, please cntact Purchasing r alternate cntact belw fr preapprval fr any unusual transactin. RRCC Cntacts Renee Murill, Prcurement Manager Prcurement Card Prgram Administratr renee.murill@rrcc.edu Lynn Beltran, Purchasing Crdinatr lynn.beltran@rrcc.edu Hlly Wren, Cntrller hlly.wren@rrcc.edu Bryan Bryant, Vice President f Administrative Services bryan.bryant@rrcc.edu BANK Cntacts Fr CITIBANK: Custmer Service Page 3

4 CODE OF ETHICS State f Clrad Prcurement Cde and Rules All purchases must be fr fficial state business and regardless f methd f payment, must cmply with the State f Clrad Prcurement Cde and Fiscal Rules. Any unauthrized purchase can result in an emplyee being held persnally respnsible in accrdance with the Clrad Revised Statute (CRS), , LIABILITY OF PUBLIC EMPLOYEES: IF ANY GOVERNMENTAL BODY PURCHASES ANY SUPPLIES, SERVICES, OR CONSTRUCTION CONTRARY TO THE PROVISIONS OF THIS CODE OR THE RULES PROMULGATED PURSUANT THERETO, THE HEAD OF SUCH GOVERNMENTAL BODY AND THE PUBLIC EMPLOYEE, WHICH FOR THE PURPOSES OF THIS SECTION INCLUDES ELECTED OFFICIALS, ACTUALLY MAKING SUCH PURCHASE SHALL BE PERSONALLY LIABLE FOR THE COSTS THEREOF. IF SUCH SUPPLIES, SERVICES, OR CONSTRUCTION ARE UNLAWFULLY PURCHASED AND PAID FOR WITH STATE MONEYS, THE AMOUNT THEREOF MAY BE RECOVERED IN THE NAME OF THE STATE IN AN APPROPRIATE CIVIL ACTION. Additinally, all state emplyees must adhere t the fllwing: State f Clrad Cde f Ethics Any persn emplyed by the State f Clrad wh purchases gds and services, r is invlved in the purchasing prcess, fr the state, shall be bund by this cde and shall: 1. Avid the intent and appearance f unethical cmprmising practice in relatinships, actins, and cmmunicatins. 2. Demnstrate lyalty t the State f Clrad (state rganizatin where emplyed) by diligently fllwing the lawful instructins f the State f Clrad while using prfessinal judgment, reasnable care, and exercising nly the authrity granted. 3. Cnduct all purchasing activities in accrdance with the laws, while remaining alert t, and advising the State f Clrad (state rganizatin where emplyed) regarding the legal ramificatins f the purchasing decisins. 4. Refrain frm any private r prfessinal activity that wuld create a cnflict between persnal interests and the interests f the State f Clrad (CRS, ). 5. Identify and strive t eliminate participatin f any individual in peratinal situatins where cnflict f interest may be invlved. 6. Never slicit r accept mney, lans, credits, r prejudicial discunts, and avid the acceptance f gifts, entertainment, favrs, r services frm present r ptential suppliers which might influence, r appear t influence purchasing decisins. 7. Prmte psitive supplier relatinships thrugh impartiality in all phases f the purchasing cycle. 8. Display the highest ideals f hnr and integrity in all public and persnal relatinships in rder t merit the respect and inspire the cnfidence f the State f Clrad and the public being served. 9. Prvide an envirnment where all business cncerns, large r small, majrity r minrity wned, are affrded an equal pprtunity t cmpete fr State f Clrad business. 10. Enhance the prficiency and stature f the purchasing prfessin by adhering t the highest standards f ethical behavir. The cmplete state Prcurement Cde and Rules and the Cde f Ethics can be fund at The State Bard fr Cmmunity Clleges Cde f Ethics can be fund at Page 4

5 LOST OR STOLEN CARD IMMEDIATELY REPORT A LOST OR STOLEN CARD TO THE BANK CITIBANK CUSTOMER SERVICE When reprting a lst r stlen card t Citibank, infrm them this is a Purchasing Card THEN CONTACT THE COLLEGE S PURCHASING DEPARTMENT Renee Murill renee.murill@rrcc.edu The Cllege is liable fr all charges made n a PCard befre the card is reprted as lst r stlen. If fraudulent activity des ccur, the bank will wrk with law enfrcement, if applicable, and the Cardhlder t investigate and attempt t recver the expenses. The Cardhlder may be asked t cmplete an Affidavit f Credit Card Fraud. LIMITS AND MERCHANT CATEGORY CODE (MCC) Hw the Card Is Cntrlled The standard limit is set at $3, Any exceptins are handled n a case-by-case basis. Each card has limits, which are specified by the Prcurement Card Prgram Administratr. These are transactin limits, daily limits, per cycle dllar limits and maximum number f transactins allwed per day and per cycle. Cntact the Prcurement Card Prgram Administratr fr yur limits if yu d nt knw them. MCC Cde grupings are assigned depending n the Cardhlder s department and purchasing respnsibilities. Each card is excluded frm specific merchant types such as travel vendrs, vehicle vendrs and access t cash, betting, lttery, etc. Page 5

6 ROLES AND RESPONSIBILITIES Cardhlders: Create a PIN when activating yur card. If yu frget the pin number, yu will have t cntact the bank. Purchasing will nt have access t this infrmatin. IMMEDIATELY reprt a lst r stlen card t Citibank at Yur department has full liability fr all purchases made befre a card is reprted lst r stlen. Als infrm the Prcurement Card Prgram Administratr. Making PRE-APPROVED purchases fr yur department f authrized and allwed gds up t yur transactin limit. As the Cardhlder, yu are the nly ne authrized t use the prcurement card. DO NOT SHARE YOUR CARD OR CARD NUMBER WITH ANYONE ELSE. Making purchases in cmpliance with infrmatin set frth in this handbk and in cmpliance with State Purchasing Rules and Regulatins. Remember, the PCard is just a methd f payment. All regular purchasing rules still apply. Making purchases in cmpliance with State Price Agreements. See Selecting a merchant under Hw the Prcess Wrks fr additinal details. Ensuring riginal dcumentatin (charge slip r invice) is cmplete and kept in yur prcurement card file fr every transactin. If a receipt is lst and a duplicate cannt be btained frm the merchant, cmplete the "Dcumentatin f Lst r Unavailable Transactin Infrmatin frm". Disputing charges in a timely manner. Ensure refunds/credits are psted t the same card accunt charged. Ntifies Apprving Official f changes in emplyment status such as transfer and terminatin. Turning in yur card t the Prcurement Card Prgram Administratr upn terminatin f emplyment and submitting all dcumentatin (receipts) fr PCard purchases prir t final exit prcess. The Cardhlder is ultimately respnsible fr ensuring that the bank statements are recnciled n a mnthly basis and all recrds match. As a best practice, Cardhlder shuld recncile purchases within apprximately 5-7 business days f the cycle clse date (25 th ) each mnth and submit the packet t their Apprving Official fr review and apprval. Cmplete the PCard Mnthly Checklist and Certificatin and attach it t each statement. Cardhlders must use the PCard Transactin Header Sheet fr each purchase. The Transactin Header Sheet is designed as a tl t aid the Cardhlder in easily cmpleting all required infrmatin and, if fully cmpleted, reduces time in fllw up frm purchasing staff. Page 6

7 Required infrmatin fr each purchase must be cmpleted n the Transactin Header Sheet: a detailed descriptin f the item and business need fr each item purchased, the rg cde/department charged fr the purchase, the accunt cde, and the Cardhlder signature and date acknwledging receipt f the gds and/r services. These requirements are fr EACH purchase and nne are ptinal. RRCC is a Clrad sales tax exempt institutin. There shuld nt be any sales tax charged fr purchases delivered within the state. If yu are charged tax in errr, please request a refund frm the vendr. If yu d nt request a refund r yur vendr will nt grant a refund (typically ccurs if refund is nt requested within 30 days f purchase date), yu have tw ptins: 1. Pay the cllege back fr any sales tax charged by making payment at the Cashier s Office OR 2. Accept a 25-pint purchasing vilatin. Repeated instances f sales tax being charged will result in PCard suspensin r cancellatin. Ensure that all deliveries are t Red Rcks, either Lakewd r Arvada Campus and nt t a hme r ther address. Be sure that any receipts, invices fr dues/memberships are made ut t RRCC s address and nt a hme address. Discntinuing use at fiscal year-end during dates specified by the Cllege s Cntrller. The Prcurement Card Prgram Administratr will ntify all Cardhlders f the affected dates as the fiscal year-end appraches. Attending a biennial in-persn training and passing a written. Cardhlders wh d nt satisfactrily cmplete biennial testing will have their card suspended until satisfactry training and testing requirements are met. Apprving Officials: Apprving Officials serve as an internal cntrl pint fr the Prgram by ensuring that Cardhlders cmply with state and system Prcurement, Persnnel and Fiscal Rules, RRCC s internal plicies, and the prvisins f the Cllege s Prcurement Card Prgram. Sme respnsibilities include: Ensuring all Cardhlder purchases are preapprved prir t riginatin. PCards are a methd f payment and d nt remve the requirement fr ensuring purchases are preapprved. If yur Cardhlder purchases items withut yur preapprval, ntify the Prcurement Card Prgram Administratr immediately s the situatin may be addressed as a purchasing vilatin. Reviewing all transactins in detail, ensuring PCard usage is in cmpliance with all practices and prcedures. Ensuring that all statement recnciliatin dcumentatin is received by yu in a timely fashin fr yur review. Sign the Mnthly Checklist and Certificatin frm. As a best practice, set up a prcess with the Cardhlder t assign a respnsible persn s that apprved bank statements and all backup are submitted t Purchasing n a mnthly basis by the 15 th f the fllwing mnth. Nte: Apprved bank statements nt received by the 15 th f the mnth may result in pints assessed t the Apprving Official and/r the Cardhlder. Page 7

8 Ntify the Prcurement Card Prgram Administratr f any changes in Cardhlder emplyment and/r supervisin status. Mnitring Cardhlder activity fr unusual patterns f use. Dcumenting and reprting Cardhlder vilatins t the Prcurement Card Prgram Administratr. Mnitring budget t ensure that sufficient funding is available and that apprpriate reallcatin is ccurring regularly. Attending a biennial in-persn and passing a written. Apprving Officials wh d nt satisfactrily cmplete biennial training as requested will have their apprving authrity suspended until satisfactry training and testing requirements are met. Anther fully-trained Apprving Official (fllwing the hierarchy) will need t cmplete the review f all Cardhlder statements until training and testing requirements are met. Reallcatrs: Nte: Sme Cardhlders may nt be assigned reallcatin respnsibilities, a staff member may, in rare instances, be designated nly the task f reallcating PCard purchases made by anther staff member. Reallcating transactins within 5 days f pstdate. Transactins must be reallcated befre the feed date indicated in the FAAINVT frm. Wrk with the accunting department t fix transactins that have psted t the accunting system with the incrrect accunt cde. USE OF THE PROCUREMENT CARD State Fiscal Rule 2-1 (based in statute) prvides that all expenditures by state agencies shall meet the fllwing standards f prpriety: 3. RULE: 3.1. Are fr fficial State business purpses nly Are reasnable and necessary under the circumstances Are authrized by the apprpriatin and required apprvals have been received Prices r rates are fair and reasnable Amunt is within the available unencumbered balance r is within the balance encumbered specifically fr the expenditure Are in cmpliance with applicable statutes, executive rders, rules, and plicies. State Agencies and Institutins f Higher Educatin shall nt make a dnatin t any ther entity r individual unless specifically permitted by statute. All expenditures by State Agencies and Institutins f Higher Educatin recrded in a State fiscal year shall be fr services perfrmed r gds received by the last day f that fiscal year. In additin, cllege funds may nt be used t purchase gds/services fr persnal use r fr the persnal benefit f anther individual. Page 8

9 PURCHASING AUTHORITY/SIGNATURE AUTHORITY Only an emplyee delegated t purchase n behalf f the cllege may d s. Emplyees with delegated signature authrity may purchase r authrize transactin psting fr specific rgs nly up t the limits established by this guideline. A Fiscal Delegate Signature Authrizatin Frm must be n file in Purchasing. HOW THE PROCESS WORKS PREAPPROVAL IMPORTANT BEFORE USING YOUR PCARD Obtain Prir Apprvals Supervisr: Request apprval frm yur supervisr/apprving Official in advance f yur planned purchase. IT purchases - Cmputer Hardware/Sftware, Electrnic Equipment - IT Directr Guidance is available in the Purchasing Handbk available nline n the Purchasing webpage. Fd - related t Official/Training Functins - Prir apprval frm the President r applicable Vice President must be granted befre using yur PCard t pay a vendr fr this expense. The Official Functin frm must be cmpletely filled ut with all applicable infrmatin including the name f the vendr, estimated csts, descriptin f the meeting, training, etc. The frm is available nline at IMPORTANT NOTE: PCards may NEVER be used t pay fr fd in a restaurant by system plicy, even with a preapprved Official Functin frm. Emplyees wh have Official Functin apprval fr a restaurant meal shuld cntact Purchasing fr assistance a least ne week prir t the event. Grants - Purchases that are funded by grants (i.e. Perkins), special prjects, etc. Services - Yu must btain apprval frm the Prcurement Card Prgram Administratr r Purchasing Crdinatr befre yu use yur PCard t pay fr services, except in very specific instances listed n page 17. Cnferences (vernight) - Registratin fr cnferences requiring vernight r ut-f-state travel, regardless f wh is paying fr the travel csts. The Travel Authrizatin frm must be apprved by the President and have the assigned RR number BEFORE yu pay fr any cnference registratin expenses. Attach a cpy f the fully executed, apprved Travel Authrizatin frm t yur PCard statement. PURCHASE Make a purchase in accrdance with Fiscal, Prcurement and RRCC Purchasing Guidelines. The prcurement card is a methd f payment fr gds and shuld be used fr fficial Cllege business purpses nly. Typically, yu may nt use a prcurement card t pay fr services. Allwable services purchases are listed n page 17. Other purchases f services (nt n the allwable list) are handled n a case-by-case basis with preapprval granted in writing by the Prcurement Card Prgram Administratr r Purchasing Crdinatr. Nte: If yu purchase items t be charged t a specific grant, please frward the riginal receipts t the Grant Accuntant n later than the 5 th f each mnth. Make a cpy t be kept in yur PCard file fr recnciliatin purpses. Page 9

10 Selecting a Merchant: Cardhlders are encuraged t make their purchases frm State Price Agreements (als knwn as State Awards) where applicable. If yu have any questins n vendr selectin cntact the Purchasing Department fr guidance. Sme State Price Agreements include but are nt limited t: FURNITURE PURCHASES, INCLUDING FILE CABINETS - Clrad Crrectinal Industries is the preferred vendr fr ffice and lunge furniture. Any exceptins will be handled n a case-by-case basis in writing frm the Prcurement Card Prgram Administratr. Clrad Crrectinal catalg is available n-line at TONER can be purchased frm Beynd Technlgy r the ffice supply vendrs JANITORIAL SUPPLIES INDUSTRIAL SUPPLIES/Maintenance Repair and Operatins (MRO) typically items that wuld be purchased at a hardware stre PAPER (COPY AND PRINTER) OFFICE SUPPLIES - preferred vendrs include Office Dept, Surce Office Supply and Staples SMALL PACKAGE DELIVERY Cardhlders are respnsible fr ensuring cmpliance with State Price Agreements. Many items are cvered under mandatry and/r permissive State Price Agreements. It is yur respnsibility t knw what must be purchased frm a specific vendr. Exceptins may require a written waiver frm State Purchasing. That prcess (if needed) must be initiated by the Prcurement Card Prgram Administratr. Please review the list f cmmdities that are cvered under the State s Price Agreements at Whenever pssible, use minrity, wmen-wned and small businesses. Placing an Order: Yu may place yur rder in persn, by phne, r nline. Please be sure t prvide the vendr with yur PCard number as a methd f payment at the time the rder is placed. TRACK ALL YOUR PURCHASES. Fr security reasns, d nt use the card t place an rder ver the Internet unless yu knw it is a secure site and d nt fax r mail the full credit card number, instead ask the vendr t call yu and yu can prvide the infrmatin at that time. At n time may a card number be placed n file with a vendr. Infrm the merchant f the fllwing infrmatin: This purchase is tax exempt. Tax exempt # This is a Red Rcks Cmmunity Cllege purchase and shuld be accrded any applicable discunts. Remind merchants t use the state award pricing, if applicable. Give yur name as it appears n the card. Give accurate delivery infrmatin. D nt allw COD deliveries. Please ensure that all deliveries are t Red Rcks, either Lakewd r Arvada Campus and nt t a hme r ther address. Request dcumentatin shwing descriptin and cst f each item. Page 10

11 Prhibited Vendr Practices: The State agreement with the bank issuing the PCards has varius prvisins which vendrs must fllw. Belw is sme infrmatin frm thse agreements: Charges t Cardhlders - A Merchant must nt directly r indirectly require any Cardhlder t pay a surcharge r any part f any Merchant discunt r any cntempraneus finance charge in cnnectin with a transactin. A Merchant may prvide a discunt t its custmers fr cash payments. A Merchant is permitted t charge a fee (such as a bna fide cmmissin, pstage, expedited service r cnvenience fees, and the like) if the fee is impsed n all like transactins regardless f the frm f payment used, r as the Crpratin has expressly permitted in writing. Fr purpses f this Rule: 1. A surcharge is any fee charged in cnnectin with a transactin that is nt charged if anther payment methd is used. 2. The Merchant discunt fee is any fee a Merchant pays t an Acquirer s that the Acquirer will acquire the Transactins f the Merchant. Minimum/Maximum Transactin Amunt Prhibited - A Merchant must nt require, r indicate that it requires, a minimum r maximum transactin amunt t accept a valid and prperly presented card. Keeping Track f Orders Placed: Keeping track f the rders yu place will allw yu t fllw up n late deliveries, prblem rders, partial shipments, and ther rder issues. The Cardhlder is respnsible fr knwing all rders that have been placed and their status at any pint in time. If necessary, keep a lg. RECEIVE GOODS, REVIEW PURCHASE DOCUMENTATION, and CHECK FOR TAX Receive and Inspect the Gds: Inspect all gds IMMEDIATELY UPON RECEIPT. If there is a prblem with the rder, cntact the merchant immediately. Keep ntes n prblems and reslutin including names, dates, and the results f the cmmunicatin. Yu must sign the receiving statement n the Transactin Header Sheet fr each purchase receipt. Best practice is t immediately write dwn the item descriptin(s) and specific business purpse fr the purchase. Review Receipt fr Accuracy: Be sure t lk at yur back up dcumentatin and make sure that all items yu were charged fr are valid and n tax was charged. In additin, check fr sales tax that may have been charged in errr right away. Ding s will allw yu t request an immediate refund frm the vendr and ensure yu are nt persnally liable fr either the sales tax prtin f the purchase r a purchasing vilatin. Attaching yur receipt right away t the Transactin Header Sheet and cmpleting all questins n the frm will ensure all requirements are met and make recnciling yur statement mre efficient. Sales Tax: Red Rcks Cmmunity Cllege is exempt frm paying lcal and state sales tax n purchases delivered within the state. If yu were charged sales tax, please fllw the prcess belw: Page 11

12 1. Request a refund frm the vendr and make a nte n the Transactin Header Sheet and/r the Mnthly Checklist and Certificatin frm. The credit shuld shw up n the current r subsequent bank statement. When the credit appears n yur bank statement, cmpare the amunt credited with the riginal receipt shwing the amunt charged. Attach a cpy f the riginal receipt t the statement with the credited amunt. IMPORTANT: Vendrs ften will nt prvide a refund f sales tax charged in errr, unless it is requested within 30 days f the transactin. If yur vendr will nt prvide a refund, yu may: 2. Reimburse the cllege fr the amunt f taxes paid. Attach a cpy f the Cashier s Office depsit frm with yur PCard statement. OR 3. Receive a purchasing vilatin and 25 pints. Please knw mst vendrs will prvide a refund, if requested in a timely manner by the Cardhlder. Instances f recurring sales tax charged may result in PCard suspensin r cancellatin. COMMUNICATION AND REALLOCATE Receipt f Transactin via As transactins pst in Banner, Cardhlders, accunt managers and the business manager shuld receive an ntificatin shwing the merchant name and the dllar amunt f each purchase. Cardhlders shuld review the t ensure that each transactin listed is their wn. Accunt managers have apprximately 5 business days frm the bank pstdate t reallcate expenses in Banner. Transactins will remain in the FAAINVT frm until Finance runs an electrnic sweep prcess t pst them t the Banner-perating ledger. If the PCard transactin is defaulted t the wrng accunt cde and the sweep is cmpleted, the transactin will pst t an incrrect rg and/r accunt cde. If that ccurs, a manual jurnal entry (IDI) will need t be cmpleted by the accunting department s that the expense can pst t the crrect rg r accunt cde. Please nte that sme Cardhlders have a specific accunt cde assigned and nt all transactins may need t be reallcated. The reallcatin instructins are psted n the Purchasing webpage at Please cntact the Prcurement Card Prgram Administratr if yu need any assistance with the reallcatin prcess. RECONCILING THE BANK STATEMENT At the end f each cycle (25 th f each mnth), the Cardhlder and Apprving Official will receive an frm RRCC.PCard@rrcc.edu with the current statement attached. This will be sent n the 26 th (r next business day) f each mnth. Cmplete and sign the PCard Mnthly Checklist and Certificatin. Tape all receipts (prtrait frmat) t 8.5 x 11 plain paper r the Transactin Header Sheet t aid in scanning t Banner Dcument Management (BDM). Identify any disputed charges and attach a cpy f the Disputed Transactin frm t yur statement. Prvide the full packet t yur Apprving Official. As a best practice, this shuld be apprximately 5 business days f receipt f the ed statement. Page 12

13 Required Transactin Dcumentatin: The Cardhlder is respnsible fr ensuring that every transactin has valid supprting dcumentatin. Valid supprting dcumentatin may include: An itemized receipt and card transactin slip frm vendr. A signed delivery packing slip. Order frms fr dues, subscriptins, registratins r similar dcumentatin. Detailed invice shwing credit card payment. Electrnic cnfirmatin frm the merchant. Infrmatin cntained in supprting dcumentatin MUST include: Merchant name Purchase date Descriptin, price and quantity f each item purchased. An itemized list and a clear detailed descriptin f what was purchased are required. Fr example, a merchant may have 3XY4567 as the descriptin n the receipt; if that is the case then what was actually purchased needs t be identified i.e. snw shvel. Ttal cst f the rder Cardhlder name and/r last 4 digits f card number Transactin Header Sheet: In rder t capture all the required infrmatin fr each transactin the use f the Transactin Header Sheet is mandatry fr each purchase. See the sample at the end f the handbk. Org Cde where the transactin is t be charged Accunt Cde Grant expense (yes r n) Verify that sales tax was nt charged (if charged tax, prvide cpy f credit receipt frm vendr, prvide cpy f depsit at Cashier s ffice, r nte Cardhlder being assessed pints) If applicable, prvide cnference registratin details such as lcatin and attaching a cpy f the fully apprved Travel Authrizatin frm if required. Business Purpse: Clear, detailed explanatin fr the business need fr the item/service purchased Nte: All explanatins shuld be written in a level f detail such that a persn with n knwledge f cllege business practices culd understand the need fr the purchase and the descriptin f the specific item purchased. i.e. s that an auditr can understand the what and why f each purchase. (i.e. Text bk fr Melissa Grant, English Instructr Cpy fr classrm purpses.) Acknwledgement f receiving After receiving and reviewing the cmpleted packet, purchasing staff may fllw up with the Cardhlder if an additinal explanatin is required r additinal dcumentatin is needed. Please knw we are asking additinal questins nly t ensure all apprpriate detail required fr audit purpses is fully dcumented. Please wrk with Purchasing t ensure all requested dcumentatin is received quickly. Page 13

14 T fully recncile the bank statement, the Cardhlder must review transactins as fllws: Attach all receipts/invices pertaining t each transactin (receipts must be ready t scan) in date rder t the Mnthly Checklist and Certificatin frm. Make sure yur recrds match. Dcumentatin is required fr bth charges and credits. If dcumentatin is missing and a duplicate receipt cannt be prvided by the vendr, cmplete the Lst r Unavailable Transactin frm. It is expected that every effrt will be made t btain a duplicate receipt frm the vendr. Typically vendrs can prvide a duplicate receipt if requested within 30 days f the riginal purchase. A cpy f this frm is lcated at the end f the Handbk r nline: PCard. Fr items purchased with grant funds, frward all riginal receipts t the Grant Accuntant, n later than the 5 th f each mnth. Fr example, if yu purchase gds fr a grant n December 20 th, the receipt and ther dcumentatin (except fr the apprved PCard statement) must be in Grant Accunting by January 5 th. When yu submit yur statements mnthly t Purchasing, please be sure t include a cpy f each riginal receipt that yu submitted directly t Grant Accunting. This will help Purchasing in the audit f yur statement. Recncile credits in the same manner as charge transactins. If yu have purchased fd relating t an fficial/training functin, ensure a cpy f the "Official Functin Frm" is attached t the statement and, if applicable, attach a cpy f the agenda and sign-in sheet. If a payment has been made fr cnference registratins pertaining t vernight r utf-state travel, attach a cpy f the fully executed Travel Authrizatin frm t yur PCard statement. The Mnthly Checklist and Certificatin frm must be cmpleted (use the drp dwn bx t indicate Y r N/A as it is applicable fr EACH line that pertains t the current mnth s statement), signed and dated by the Cardhlder and frwarded alng with the statement and all receipts, t the Apprving Official. The Apprving Official will review the statement and the purchases made and als sign the certificatin frm. Bank statements, alng with all applicable backup and the certificatin frm, are frwarded t the Purchasing Department n a mnthly basis. Statements are due n the 15 th day f the subsequent mnth i.e. March is due n April 15. Statements nt received by the deadline may result in late statement pints t the Apprving Official and/r the Cardhlder. Audits are cnducted in cmpliance with CCCS guidelines. (All transactins receive 100% audit.) Please cmmunicate with the Purchasing Department if yu have any issues/cncerns that wuld prevent yu frm meeting the deadline. Page 14

15 PROHIBITED TRANSACTIONS The prcurement card may nt be used fr the fllwing purpses: Unauthrized purchases as nted in the table n page 16. Purchase f gds and services fr persnal use r fr the persnal benefit f anther individual. All expenses must be fr fficial cllege business purpses nly. Sme examples include: Greeting cards Items fr staff kitchens (cffee, micrwaves, plastic wear, etc.) Fundraising activities - Cllege funds may nt be used t supprt private r RRCC related activities, this includes the purchase f gds r services. Flwers Gift cards Cash advances such as cash back with a purchase, cash credit returns, traveler's checks, mney rders, and ATM transactins. Splitting a purchase t circumvent single purchase dllar limits. Backrders - Backrders culd adversely affect future rders because f the "number f transactins" and "dllar amunt per day" card limits and shuld be avided. Travel related transactins (airline travel, autmbile rentals, ldging, and restaurants) the State Travel Card administered by State Travel Management Prgram is the required mechanism fr these purchases. Alchl purchases. Autmbile related prducts and services prhibited fr general PCard use. Cardhlders whse jb respnsibilities include purchasing supplies and services fr the repair and maintenance f agency wned, nn-fleet vehicles shuld btain written authrity frm the apprpriate prgram directr and the PCard Prgram Administratr. The State Fleet Card administered by State Fleet Management may be used instead fr nn-fleet related purchases and must be used n all purchases fr state fleet vehicles. Unallwable purchases under the terms f any applicable grant r prject. Payments n cntracts withut prper authrized signatures, including internet purchases which require a click-thrugh agreement. Gift cards. Spnsrships/Dnatins Items which have nt been preapprved by yur supervisr/apprving Official. As a result f these prhibitins, varius merchant categries have been excluded r have been placed ff limits fr use f the card. The fllwing table includes a representative list f excluded Merchant Categries: Page 15

16 EXCLUDED MERCHANT CATEGORY TABLE Merchant Categry Autmtive/Vehicle Cash /Equivalents Clthing Stres Entertainment Fd/Beverages Gvernment Services Ldging Persnal use Retail stres Services Transprtatin Freign Vendr Descriptin Fuel fr state vehicles (licensed equipment). Cash advances, depsit accunts, traveler s checks, freign currency, mney rders, savings bnds, manual r autmated cash disbursements, securities, insurance mney rders, and wire transfers. Furriers and fur shps. Betting including lttery tickets, chips at gaming casins, ff-track betting, and wagers at racetracks. Meals, alchlic beverages when cnsumed in eating places such as restaurants, bars, ccktail lunges, nightclubs, and ther drinking places, fast fd, packaged liqur stres. Curt csts including fines, bail and bnd payments, and tax payments. Htels, mtels, and resrts. Any gds and/r services fr persnal use. Furniture, tbacc, duty free items, miscellaneus fd stres, cnvenience stres, markets, specialty stres, and vending machines. Examples include but are nt limited t: Emplyment agencies, temprary help services, cmputer and data prcessing services, truck stp transactins, and mving cmpanies. Services with single entity independent cntractrs-sle prprietrs. Sme items typically cnsidered t be services are nt prhibited. See the allwable list f services n page 18 f this Handbk. IMPORTANT: If a purchase is unclear, please cntact the Purchasing Office. Travel agencies, airprt services and airlines, aut rentals, railrads, bus lines, limusines and taxicabs, cruises, bats and ferries, marina services, bridge and rad fees, cmmuter transprtatin, ambulance services, and ther transprtatin services. The PCard may never be used t pay a freign vendr, regardless f where the transactin riginates. The prhibited transactins n page 14 and excluded merchant types abve are mandatry. Any exceptins will be handled n a case-by-case basis. Exceptin apprval must be received in writing ( ) frm the Prcurement Card Prgram Administratr, Purchasing Crdinatr, r the Cntrller and filed with yur PCard statement. Page 16

17 ALLOWABLE PCARD PURCHASES OF SERVICES The fllwing transactins are nt cnsidered t be prhibited services. The PCard may be used t pay fr: Certified Mail USPS Depsits/payments fr tl/equipment rental, field trips (nn-restaurant) Dry Cleaning and Laundry Services Dues and Memberships Embridery services when purchasing clthing such as unifrms, t-shirts, etc. Fd Service Vendrs Framing f Art Wrk and Specialty Items Advertising Human Resurces and Marketing nly Plaques and Awards Pstage Printing Yu may use the printer f chice. Prmtinal Items with custmized lg, etc. Small Package Delivery (Shipping) Fed Ex, UPS and DHL (Internatinal Shipping) PRIZES, AWARDS, AND GIFTS If a department wishes t prvide a cntest judge, speaker, etc. a gift in lieu f an hnrarium payment, r prvide a prize fr cntests, etc. they may d s up t a $50 limit. The $50 des nt include incidental expenses such as engraving, packing, insuring, r mailing csts. An example f an apprpriate thank yu gift r prize within the IRS limitatins wuld be an engraved plaque, RRCC shirt, r ther item csting $50 r less. IMPORTANT: If the dllar amunt is mre than $50 then a Prize and Award frm must be cmpleted and signed by the recipient and additinal frms may be required. Please nte that gifts/awards t emplyees (including student emplyees) may have different requirements and shuld first be discussed with the Prcurement Manager r Cntrller. DECLINED TRANSACTIONS Pssible reasns fr decline and what t d if yur purchase is declined. Phne Orders The merchant has written dwn the card number and/r expiratin date incrrectly. Check the numbers with the merchant. The transactin exceeds yur per transactin r per cycle dllar limits. Cntact yur supervisr/apprving Official and Purchasing t request pssible apprval fr a temprary increase t yur transactin r card limit. The transactin exceeds yur daily r per cycle number f transactins limits. Cntact yur supervisr/apprving Official and Purchasing t request pssible apprval fr a temprary increase in yur limit. The merchant s 4 digit MCC cde is ne f the Cllege s excluded cdes. Page 17

18 If the transmissin is dwn between the merchant and its bank, the transactin will decline. Ask the vendr t try later. Nte: If the vendr makes 10 tries and is declined each time, the card will then decline at any vendr fr the remainder f the day. Cntact Citibank custmer service, fr infrmatin n why a transactin was declined. RETURNS/EXCHANGES Make arrangements with the merchant befre shipping an item fr return. The merchant must credit a return and charge a new transactin. Exchange f like items, fr example: different clr may nt require a credit transactin. It is a merchant vilatin t refund cash fr a credit card return. D nt allw merchants t d this. It is a Cardhlder vilatin t accept cash. Dcument all returns and exchanges. This infrmatin may be needed fr a frmal dispute. Make certain yu return any item via Fed Ex r if mailing, send certified with a return receipt requested s yu have written prf that smene signed fr the return. DISPUTED TRANSACTIONS Disputed transactins must be reprted t the bank within 60 days f the statement cycle date in accrdance with cntract terms. Hwever, it is recmmended that transactins are disputed within 30 days f the purchase. Please keep in mind that the first sign f a discrepancy can be detected when yu receive the transactin ntificatin. Mst disputes can be settled immediately by cntacting the vendr directly. If yu are unsuccessful, fllw the prcess belw: Frmal disputes must be filed with Citibank within 60 days f the end f the cycle in which the transactin first appeared. The Disputed Transactin frm can be fund nline at Cntact the Prcurement Card Prgram Administratr fr assistance. The fllwing may be frmally disputed with Citibank: Unauthrized charges, including unauthrized phne r mail rder charges. Difference in amunt authrized and amunt charged. Duplicate charges. Transactins which are yurs but are being challenged fr ther reasns. Failure t receive gds. Returned r defective merchandise. Yu have received a credit vucher frm the merchant r have been tld by the merchant they will issue a credit but the accunt has nt yet been credited in the PCard system. Page 18

19 APPROVING OFFICIAL REVIEW Apprving Officials must dcument their review and apprval f each purchase listed n each accunt statement received frm Citibank. Next, the Apprving Official frwards the cmpleted, signed packet t Purchasing alng with all supprting dcumentatin. The Mnthly Checklist and Certificatin frm must be signed by the Cardhlder and Apprving Official in rder t dcument review and apprval. Please remember that apprved statements/packets shuld be submitted t Purchasing n later than the 15 th f the mnth fllwing the cycle clse date. Packets received after the deadline may result in vilatin pints assessed t the Cardhlder and/r the Apprving Official. Apprving Officials shuld review each statement t ensure: Cardhlder reviewed and crrectly cmpleted the checklist and signed the certificatin. All purchases were preapprved. All dcumentatin is received and taped t an 8.5 x 11 page (fr easy scanning) in accrdance with PCard and department practices and prcedures by established deadlines. A Transactin Header Sheet is attached t each receipt and includes dcumentatin f: A detailed descriptin f each item purchased (if nt present n the receipt), Signature and date acknwledging receiving, Detailed descriptin f business purpse f purchase, Org cde/department t be charged, Accunt cde Review any cnference details t ensure apprpriate dcumentatin is submitted, and Review f any sales tax charge and Cardhlder reslutin. Cardhlder must chse t: Request a refund f tax frm the vendr (shuld attach cpy f refunded tax), r Pay the cllege back (shuld attach Cashier s Office depsit slip), r Cardhlder will be charged 25 pints. Best practice is t circle r checkmark sales tax (zer) n each receipt. All Cardhlder vilatins are dcumented and reprted in accrdance with department guidelines. Each purchase is fr fficial state business nly and meets State Fiscal Rules, Prcurement Rules and CCCS system and RRCC plicies. If purchase is made with grant funds, Apprving Official als verifies purchase is allwable t prgram and cntains prper apprvals by grant persnnel. If there are discrepancies i.e. missing receipts, missing Official Functin frm, charged tax, please wrk with the Cardhlder t crrect the situatin befre signing ff n the statement. Page 19

20 If there is a PCard vilatin such as using the card t pay fr IT equipment, using the card t purchase items that were nt preapprved, etc. infrm the Prcurement Card Prgram Administratr. Yu may submit a written explanatin n the certificatin frm with the bank statement indicating the reasn why yu are nt apprving the specific transactin. The Prcurement Card Prgram Administratr will fllw up with yu and the Cardhlder regarding the apprpriate curse f actin. Vilatins shuld be reprted t the Prcurement Card Prgram Administratr immediately upn discvery. Als, in accrdance with State f Clrad Fiscal Rule 2-10, all incidents f suspected fraud and abuse f the prcurement card, alng with any misuse f the PCard, must be reprted t the State Cntrller s Office. Fr audit purpses all recrds pertaining t a purchase must be kept fr a perid f seven (7) years. Recrds will be retained by Business Services. IMPROPER PURCHASE VIOLATION PROCEDURE All staff authrized t purchase gds r services n behalf f their departments are required t knw and fllw State Fiscal and Prcurement Rules, Clrad Cmmunity Cllege System (CCCS) plicies and Red Rcks Cmmunity Cllege internal prcesses including thse defining vilatins and their cnsequences. If yu becme aware f a mistake in the prcurement prcess, immediately cntact the Prcurement Manager r Cntrller fr guidance n rectifying the situatin. If the Prcurement Manager determines that a vilatin has ccurred, a Ntice f Imprper Purchase may be issued. Upn receipt f an Imprper Purchase Ntice, bth the emplyee and supervisr will sign the frm and return t Purchasing. Additinal infrmatin such as written justificatin may be requested depending n the circumstances. This ntice will be dcumented and tracked electrnically. The Prcurement Manager will issue pints fr each discvered vilatin; hwever, a written warning may be issued in lieu f pints being assessed. Human errr and the degree f seriusness will be taken int cnsideratin. Cnsequences Vilatin Pints Anyne that accumulates 150 pints r mre will have their purchasing authrity suspended. Depending n the nature f the vilatin, the issuance f pints may nt be a factr and autmatic suspensin r revcatin may be enfrced. This means a serius vilatin may result in the inability t sign a purchase requisitin, expense vucher, r initiate any type f purchase by any means including use f the PCard. Suspensin r revcatin f purchasing authrity will be handled n a case-by-case basis. Vilatin pints will be reviewed n a quarterly basis. The vilatin pints will be remved frm the ttal cumulative pints apprximately tw years after the pints were assessed. Hwever, the recrd f the vilatin pints will remain n file permanently. Page 20

21 Vilatin pints will remain in effect even if the staff member transfers t a different department. The fllwing list is prvided as a guide t the pssible vilatins and the amunt f pints issued fr each situatin. Misuse f Cllege Prcurement Card Shared card - 50 pts. Unauthrized r inapprpriate purchase - 50 pts. Inadvertent persnal use - 50 pts. Intentinal persnal use pts. - immediate revcatin f all purchasing authrity Failure t prvide adequate dcumentatin timely- 50 pts. Sales Tax charged - 25 pts. Pints are charged if the emplyee des nt get a vendr refund fr the sales tax charged r in an instance where the emplyee des nt reimburse the cllege fr sales taxes paid. Submitting statements late 10 pts. Repeated instances f late statements will be handled n a case-by-case basis with the Cardhlder, Apprving Official and respective VP and may lead t suspensin r cancellatin f PCard use, regardless f purchasing vilatin pints assessed. Split Transactin - Splitting a purchase t circumvent single purchase dllar limits. The State Prcurement Rules require a Purchase Order fr all prcurements mre than $5,000. Cmpetitive bidding is required fr all single purchases f gds mre than $10,000 and f services mre than $25,000. Splitting a purchase may ccur with mre than ne Cardhlder pts. Additinal Purchasing Vilatins: Ordering a gd r service withut a signed Cllege Purchase Order r Cntract issued by the Purchasing Department that results in a statutry vilatin pts. Unauthrized ut f pcket expenses submitted fr reimbursement. 50 pts. Failure t submit an invice timely t Accunts Payable 50 pts. Signing a Vendr Agreement, Cntract r Credit Applicatin (The Cllege President and Vice President f Administrative Services are the nly "authrized" persnnel n campus that can sign these dcuments) pts. STATE CONTROLLER POLICY Statutry Vilatin-Fiscal Rule 2.2 Purchasing vilatins greater than $5,000 must be reprted t the State Cntrller. Ratificatin f the illegal purchases must be requested [by the Vice President f Administrative Services] f the State Cntrller. The State Cntrller is nt required t apprve r ratify yur purchase. Red Rcks must include an explanatin f why cmmitment arse befre it was authrized and include the steps that are planned t prevent a recurrence f this situatin in the future. If the State Cntrller des nt apprve the purchase, by law it cannt be paid fr by the Cllege. Any statutry vilatin nt ratified by the State Cntrller will be the persnal bligatin f the persn wh rdered the gds r services and incurred the bligatin. REMINDER: Purchasing authrity is granted at the discretin f the Cllege President. Page 21

22 DEFINITION OF TERMS Apprving Official The individual assigned respnsibility fr reviewing PCard usage fr cards assciated with their Organizatin cdes (Orgs), t ensure cmpliance with the plicies and guidelines set frth in the PCard Prgram Handbk. A Cardhlder may nt be his/her wn Apprving Official. Accunt Manager A security rle assigned in Banner. The persn respnsible fr reallcating PCard transactins. Billing Perid The mnthly billing cycle set by Citibank. The cycle at RRCC begins n the 26th and ends n the 25 th day f each mnth. Business Manager - A security rle assigned in Banner. Typically, the supervisr f the PCard r accunt manager. Cardhlder A Cllege emplyee wh has been issued a PCard. The Cardhlder is respnsible fr making prper and allwable charges n the PCard and fr immediately ntifying the PCard Prgram Administratr f a lst r stlen PCard. Charge PCard transactin resulting frm a payment t a vendr fr gds and/r services. Charges appear n the PCard bank statement as a psitive number. Credit PCard transactin reversing previus charges as the result f returning gds r any ther valid reasn. Credit transactins are issued by a vendr. Credit transactins have the same dcumentatin requirements as purchases. Credits appear n the PCard bank statement as a negative number and reduce the amunt wed by the cllege t the bank. Default Org/Accunt The Org linked with the individual PCard. All transactins made with the PCard will be initially charged t this Org. The default Org is required n the PCard applicatin. Dispute A transactin appearing n the mnthly Cardhlder statement which the Cardhlder believes is invalid. Citibank Issuing banking institutin f the individual Visa credit cards. Merchant Any business that accepts a Visa credit card. Merchant Categry Cdes (MCC) These cdes are grupings f the fur-digit Standard Industry Cde, which best describes the vendr s type f business. Transactins at vendrs with certain (disallwed) MCC cdes will cause the card t decline. PCard/Prcurement Card Visa credit card issued t individual emplyees f the Cllege. PCard Prgram Administratr The Cllege s Prcurement Manager. Persn respnsible fr implementing plicies and prcedures. Pst Date The date a transactin is sent frm Visa t Citibank. This ccurs several days after the transactin date. Purchase Allwable gds prcured thrugh the use f the PCard. Reallcatin The prcess t mve charges and/r credits t the prper Org and Accunt cde. Yu may nly reallcate t thse Orgs fr which yu have the signature authrity r the written permissin f the Respnsible Persn/Org Owner fr the Org. Page 22

23 Receipt A dcument frm the vendr, which details the items purchased, the date purchased, and the price. Typically, this cnsists f a traditinal credit card receipt with detailed stre cash register receipt attached but may als include detailed packing slips and rder frms fr purchases such as publicatins, memberships, subscriptins, etc. The per-item price must appear n the dcument, in whatever frm it takes. Transactin A financial recrd sent t Citibank resulting frm the use f the PCard either fr purchase r a return f gds. The transactin is ultimately sent t the Cllege s Banner PCard System. Transactin Authrizatin/Decline The authrizatin the merchant receives frm Visa t accept r decline the purchase. Transactin Date The date the transactin was made with the vendr. Vilatin Nn-cmpliance with the terms f the PCard Prgram Handbk resulting in imprper use f the PCard. Page 23

24 RED ROCKS COMMUNITY COLLEGE Prcurement Card Dcumentatin f Lst r Unavailable Transactin Infrmatin Frm This frm is required fr any prcurement card transactins that d nt have dcumentatin frm the merchant. Frequent ccurrences f lst r a lack f dcumentatin may result in the revcatin f card privileges. Dcumentatin frm the merchant is required fr all transactins. Dcumentatin includes: Receipt and card transactin slip frm the merchant Packing slip frm the delivery Invice shwing credit card payment Order frms fr dues, memberships, subscriptins r similar items Infrmatin Transactin Reference # Cardhlder Date f Purchase Apprving Official Merchant Department Descriptin, Quantity, Cst fr each Item Purchased Descriptin Quantity Unit Cst Ttal Cst Ttal Cst If applicable, attach any additinal infrmatin, crrespndence r justificatin abut this transactin. Reasn riginal dcumentatin is nt available: Cardhlder Certificatin Signature- I,, hereby certify the fllwing: All items purchased n this PCard transactin were fr the benefit f the State and n persnal purchases were made. I will nt seek reimbursement in any ther manner fr this transactin. Original dcumentatin is nt in my pssessin fr the reasns stated abve. I acknwledge that repeated lack f dcumentatin may result in revcatin f my PCard privileges. Signature: Date: Apprving Official Signature I hereby acknwledge lack f dcumentatin frm the merchant fr this transactin. Signature: Date: PURCHASING DEPARTMENT COMMENTS: Signature: Date: Page 24