Augsburg College. Wells Fargo Bank Commercial Card Program. Policy and Procedures Manual

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1 Augsburg College Wells Fargo Bank Commercial Card Program Policy and Procedures Manual 1

2 Table of Contents Introduction... 3 General Guidelines Card Issuance... 4 Account Maintenance... 4 Card Usage... 4 Limitations and Restrictions... 5 Lost or Stolen Cards... 5 Authorized Purchases... 6 Unauthorized Purchases... 6 Reconcilement and Payment Receipt Retention... 7 Disputed or Fraudulent Charges... 8 Sales and Use Tax... 8 Common Questions and Concerns Forms Cardholder User Agreement 12 Account Maintenance Form 13 Unavailable Documentation Form 14 Dispute Form 15 Affidavit of Commercial Card Fraud/ Unauthorized Use 16 2

3 Introduction Welcome to the Augsburg College and Wells Fargo Commercial Card Program (P-card). The purpose of the Wells Fargo Commercial Card Program is to streamline and simplify the purchasing and payment process for Augsburg College transactions. The goal of the Program is to: - Simplify the reimbursement process - Eliminate the time consuming bank record process - Reduce/eliminate out of pocket expenses This reference manual will provide you with the particulars of the program, including general guidelines, reconcilement and record keeping procedures, and customer service information. It is important to read the following information carefully, as you will be responsible for adhering to the Augsburg established policies and procedures. As with any new process, it is difficult to anticipate every question or issue that may arise. Please let me know if you have questions regarding the P-Card. The feedback will give us an opportunity to refine our policies and procedures. If you have any additional questions, please contact your Purchasing Card Administrator, Sharon Johnson,

4 General Guidelines Card Issuance: You must be an Augsburg College employee to be eligible for a procurement card (P-card). As a cardholder, you will be asked to complete a cardholder agreement. By signing the agreement, you agree to adhere to the guidelines established in this manual. Please refer to the cardholder agreement. Most importantly, the P-card is issued in your name; purchases made with the P-card are your responsibility. You are the only person entitled to use your card delegation of the card is not allowed. Personal use of the P-card is not allowed. As each P-card is linked to a specific cost center and individual employee, the card cannot be transferred from one employee to another. If you are moving to another area contact your Program Administrator for the necessary changes. You will keep your current card. Upon receipt of your P-card, call the toll-free number printed on the card to activate your card. For verification purposes, you will be asked to provide a secret code (which is the last four digits of your Social Security number). Although the card will be issued in your name, your personal credit history will not affect your ability to obtain a card. Account Maintenance: If there is a need to change any information regarding your account, such as your address or cost center, please complete the Account Maintenance Form and forward to your Program Administrator. These changes can also be made by sending an message to your Program Administrator. Card Usage: The P-card can be used at any merchant that accepts VISA, except for bars, casinos, liquor stores, cash withdrawals, direct marketing, etc. It may be used for in-store purchases as well as phone, fax or mail orders. There is no special terminal or equipment needed by the merchant to process a procurement card transaction it is like any other VISA card. When placing a telephone order ask the vendor to send an order confirmation/receipt via fax or . When placing an online order print out an order confirmation at the end of the purchase process. The document should indicate paid by credit card and must indicate the dollar amount of your purchase. The VISA card cannot be used to withdraw cash from an ATM machine. When using the P-card, please emphasize that an invoice not be sent to Accounts Payable as this may result in a duplicate payment. Augsburg College is tax exempt; the tax exempt number is printed on your card. It is your responsibility as a cardholder to remind the cashier at the time of your purchase that Augsburg is tax exempt. 4

5 Limitations and Restrictions: P-cards are to be used for College business transactions only. The card is to be used for College purchases under 1,000 and all College travel related expenses. The P-card is not to be used for any personal purchases. Travel expenses are not subject to the 1,000 limit, but are subject to your monthly procurement card spending limit. The individual identified on the card is the only user allowed to use the card. Faxing of the cards likeness is not allowed. Failure to comply with this policy may result in either revocation of your use privileges or other corrective action. The Program Administrator, working under the College s policy, has assigned a credit limit to your card. There may also be a single transaction limit placed on your card, which means your card will be declined if you attempt to purchase more than this set amount at one time. Do not split a purchase to avoid the 1,000 limit or single transaction limit. If you believe the single transaction limit will inhibit optimum usage of the P-card, please discuss this with your budget manager. In addition to the single transaction limit, every cardholder has a monthly dollar limit assigned to his/her account. As limitations vary by cardholder, please discuss the limit with your budget manager. If you believe your monthly limit to be insufficient for your requirements, please contact your Program Administrator to discuss having your limit increased. The request must be in writing from your budget manager, an is sufficient. The Wells Fargo Commercial Card Program also allows for Merchant Category blocking. If a particular Merchant Category is blocked (e.g., jewelry stores, liquor stores or ATM machines), and you attempt to use your card at such a merchant, your purchase will be declined. An effort has been made to ensure that the vendors/suppliers used during the normal course of business are not restricted. If your card is refused at a merchant where you believe it should have been accepted, please contact your Program Administrator. Automated customer service assistance is available 24 hours/day, 7 days/week: Important: All requests for changes in monthly limits and restrictions must be made through your Program Administrator at Augsburg College, not through Wells Fargo. Lost or Stolen Cards: You are responsible for the security of your card and any purchases made on your account. If you have lost your card or if you believe it has been stolen, immediately report this information to Wells Fargo Bank Customer Service at Immediately after reporting to Customer Service, you must inform your Program Administrator. It is extremely important to act promptly in the event of a lost or stolen card to avoid company liability for fraudulent transactions. Please do not leave your card on or in an unlocked desk drawer. Keep the card in a secure place at all times. Charges due to a stolen card that are not reversed will be charged to your departmental budget. 5

6 Please see the Disputed or Fraudulent section for additional information. If the Program Administrator is notified by Wells Fargo inquiring about a fraudulent purchase a hold will be put on your card until this issue is resolved. As with a personal charge card, you will no longer be able to use the account number after notifying the bank or Program Administrator of a lost or stolen card. A new card should be issued within 48 hours of notice to Wells Fargo Bank. Authorized Purchases The P-card is intended for College purchases under 1,000 and all College travel related expenses (travel expenses are not subject to the 1,000 limit). These purchases may include: Office supplies Books and subscriptions Professional membership dues Catering Travel Other required supplies Unauthorized Purchases/Vendors Items for personal use Any single transaction exceeding 1,000 - without prior consent (excluding travel expenditures) Country club memberships Cash withdrawals Recreational vehicles (boats, RV s, motorcycles, etc.) Direct marketing Liquor stores, bars Gambling or gaming of any kind As with any College purchase, the card is not to be used for any product, service or with any merchant considered to be inappropriate for Augsburg College funds. Failure to comply with the above guidelines for authorized purchases under the P-card Program may result in disciplinary action and/or cancellation of your card privileges. 6

7 Reconcilement and Payment It is your responsibility, within six days upon receipt of your from the Commercial Card Expense Reporting (CCER) system, to sign on and reconcile your statement online. A complete description must be added for each purchase. For example: Business meeting with Mary Smith, travel to ABC Conference not just meeting or mileage. Place a check mark in each Receipt Attached box indicating you are submitting a receipt for each purchase and verify all expense coding is correct. When you have ensured everything is correct, select the Review Complete button at the bottom of the statement - this sends your statement on for approval. You must print your statement, attach all receipts and send to the Program Administrator for review and filing Science 114, CB 130. You will have six days to review, make any necessary coding changes, add descriptions and send your statement on for approval. After this time expires, your statement is automatically forwarded to your P-card approver. Your P-card approver receives a copy of your statement electronically and has four days to review and approve it. The purpose of this procedure is to have a supervisor sign off that these are legitimate college related expenses. After that time has expired, your statement will be automatically sent to the Program Administrator for downloading of expenses to the budgets. If you fail to reconcile your monthly statement within the six days, your P-card approver will be notified electronically. If you do not turn in a signed monthly statement with required receipts attached, your P-card approver and/or budget manager will be notified. If you fail to comply with these prescribed policies, your privilege of having a P-card may be suspended or eliminated. As a supervisor, by electronically submitting a cardholders statement, you are justifying the charges on the P-card are reasonable and necessary. Receipt Retention: It is a requirement of the program that the cardholder retains receipts for goods and services purchased. The intent of the policy for keeping receipts is to verify that you made a related purchase for the College. You are encouraged to keep all receipts, however, you must attach any receipt for purchases over 50 to your printed monthly statement. If you are missing a receipt over 50, contact the vendor to obtain a copy. If that is not possible, fill out a No Receipt Form, have it signed by your approver and attach to your statement. Even though you are not required to submit receipts for purchases under 50, all purchases must be for reasonable and necessary college-related expenses. You are responsible for verifying a college-related purpose of expenses, should questions arise. For orders placed via phone, fax or mail, you must request a receipt, detailing merchandise price, freight, etc. It is recommended you request the receipt be faxed to you, prior to the goods being shipped, to ensure you have a receipt for statement reconciliation. (Note: a merchant should not reject this request, as it is a VISA policy). It is extremely important to request and retain purchase receipts, as this is the only original documentation. 7

8 Disputed or Fraudulent Charges: If there is a discrepancy on your statement, it is imperative the issue is addressed immediately! Depending on the type of discrepancy, you will need to contact either the merchant or your Program Administrator to resolve the disputed transaction. If you believe the merchant has charged you incorrectly or there are outstanding quality or service issues, you must first contact the merchant and try to resolve the error or problem. If you are able to resolve the matter directly with the merchant, and the error involved an overcharge, a credit adjustment from the merchant should be requested and will appear on your next statement. If the merchant disagrees that an adjustment is necessary, immediately dispute the charges on your current statement or contact Wells Fargo directly Wells Fargo Bank will request complete details of the dispute in writing in order to research the item in question. The details of the disputed transaction should be reported on Augsburg College letterhead or on the Wells Fargo Bank Dispute Form or on the dispute screen available in CCER. Wells Fargo Bank must receive any charge dispute within 60 days of the transaction date. Although Wells Fargo Bank acts as the arbitrator in any dispute, you should never assume that a dispute would be resolved in your favor. If the dispute is not resolved to your satisfaction, and you believe the merchant has unfairly treated you, please notify the Program Administrator with the relevant details. Any fraudulent charge, i.e., a charge appearing which was not authorized by yourself, must be reported immediately to your Program Administrator. Prompt reporting of any such charge will help to prevent the company from being held responsible. A Dispute Form and Affidavit of Commercial Card Fraud form has been included with this package to facilitate notification of any such transactions. Sales and Use Tax Merchants are required by tax authorities to include the applicable sales or use tax at the time of purchase. The amount of tax is dependent on a variety of factors including the state, country and city where the goods are purchased. All merchandise not purchased for resale or not specifically exempt should include the applicable sales tax. If your purchases are usually tax-exempt, you will be required to provide merchants with the necessary forms for non-taxable goods or services. Questions regarding this policy and any other questions concerning tax issues should be addressed to the Administrative Accounting Office 8

9 Common Questions and Concerns Why did Augsburg College decide to participate in the Wells Fargo Commercial Card Program? Like most companies today, we are exploring ways to streamline processes and reduce costs. Frequently the expenses incurred to process a small dollar purchase can be as high as the price of the item itself. With a procurement card, many of the typical purchasing steps should be eliminated including, generating a requisition, preparing a purchase order, matching a packing slip to a purchase order, match the purchase order with an invoice, and then create a check to the vendor. What is the procedure when I pay for something with my procurement card? Essentially, the process is the same as when using your personal credit card. You must always ask for a receipt for your records, also for phone, fax and mail orders. Are there any restrictions associated with the use of my card? Yes, in addition to Augsburg College s policy stating the type of products you can buy, other controls and limits may be placed on your card including: A monthly dollar limit A per transaction dollar limit Blocked merchant categories Please contact your Program Administrator for your specific restrictions How will I know if I have exceeded my monthly limit? Once you have reached your limit within a given month, your card will not be accepted for additional purchases. To determine your outstanding balance at any given time, you may log into the Wells Fargo system and check your available monthly balance or call your Program Administrator. You can also call the toll-free Wells Fargo Bank Customer Service number on the back of your card. What should I do if my card is declined? If you have used your card at this type of vendor previously and you have enough available credit left for the month, then ask the vendor to run your card through again as it might be a problem with the vendor credit card machine. Another reason may be the expiration date was entered incorrectly 9

10 How will I know if Augsburg College is getting billed correctly for the purchases I have made? You will receive a monthly cardholder activity statement online listing all the purchases made and credits received in the previous month. This statement is for your review only and allows you to reconcile your purchases. You can review your statement any time during the current month click on Cycle to Date. You must review the statement in the first six days of the month, as any disputed or fraudulent transactions must be reported to Wells Fargo Bank in a timely manner. How will my monthly P-card bills be paid? The monthly statement you receive is for you to review and to reconcile your purchases. Accounts Payable will make one payment to Wells Fargo Bank covering P- Card expenses for all Augsburg College employees using the card. Who may I talk to if I have questions? The current Program Administrator is Sharon Johnson, The Program Administrator should be contacted for any questions you have regarding limits, usage and other issues. The secondary contact is Matt Rumpza, Only the Program Administrator has the authority to change any existing information or restrictions to a cardholder s account. What should I do if I have a problem associated with something I bought with my P-card? Please refer to the Disputed or Fraudulent Charges section of this guide for complete details. It is extremely important that you address these items immediately. Once I receive the card, can I begin using it immediately? Once you receive your card, you will be instructed to call Wells Fargo Bank s toll-free number and provide certain information (e.g., social security number or other meaningful data) to activate the card. This procedure ensures a secure card issuance process and helps to prevent fraud. What should I do if my card is lost or stolen? It is extremely important to call Wells Fargo Bank s Customer Service toll-free number and your Program Administrator immediately in the event your card is lost or stolen. 10

11 Can another employee utilize my card for purchases? Each P-card will be embossed with the individual employee s name. The employee is responsible for the proper use of his/her card. At no time should another individual utilize your P-card. You are responsible for your card. Can the P-card be used out the United States? Yes, the Wells Fargo Bank P-card is accepted worldwide. Purchases can be made in any currency and billed in U.S. Dollars. The currency, as well as the foreign exchange rate utilized, is stated for each transaction on your statement. When traveling abroad, and you intend to use your P-card for college purchases please call Wells Fargo in advance to inform them you are traveling so you have no problems using the P-card. What should I do if I need to change my monthly or single purchase limits? Discuss with your budget manager and then contact your Program Administrator. 11

12 Cardholder User Agreement You are being entrusted with an Augsburg College purchasing credit card, issued by Wells Fargo Bank. The card is provided to you based on your need to operate on a daily basis and to purchase materials for Augsburg College. It is not an entitlement nor reflective of title or position. The card may be revoked at any time without your permission. Your signature below indicates that you have read and will comply with the terms of this agreement. 1. I understand that I will be making financial commitments on behalf of Augsburg College and will strive to obtain the best value for Augsburg College. 2. I have read and will follow the Purchasing Card Policies and Procedures. Failure to do so could be considered a misappropriation of Augsburg College funds. Failure to comply with this Agreement may result in either revocation of my use privileges or other corrective action. 3. I understand that under no circumstances will I use the Purchasing Card to make personal purchases, either for myself or for others. Using the card for personal charges could be considered misappropriation of Augsburg College funds and could result in either revocation of my use privileges or other corrective action. 4. I agree that should I violate the terms of this Agreement and use the Purchasing Card for personal use, Augsburg College shall have the right to deduct any amounts owed, including but not limited to charges incurred from collection agencies, internal administration costs, court costs, etc, from my paycheck or final paycheck. The laws of the state of Minnesota shall govern the enforceability of this agreement. 5. The Purchasing Card is issued in my name. I will not allow any other person to use the card. I am considered responsible for any and all charges against the card. 6. The Purchasing Card is Augsburg College property. As such, I understand that I may be periodically required to comply with internal control procedures designed to protect Augsburg College assets. This may include being asked to produce the card to validate its existence and account number. 7. If the card is lost or stolen, I will immediately notify Wells Fargo Bank by telephone at and the Program Administrator at Augsburg College, Sharon Johnson I will receive a monthly statement, which will report all purchasing activity during the statement period. Since I am responsible for all charges (but not for payment) on the card, I will reconcile the statement each month, make any coding changes to the expenses if needed, and resolve any discrepancies by either contacting the merchant or Wells Fargo Bank myself. 9. I agree to surrender the Purchasing Card immediately upon termination of employment, whether for retirement, voluntary, or involuntary reasons. 10. By signing this agreement, the cardholder agrees they have read the P-card Policy and Procedure manual and agree to the terms. Employee Name (Print) Employee Signature Employee Home Telephone Number Last 8 Digits of Card Number Date 12

13 Purchasing Card Account Maintenance Form TYPE OF REQUEST (Circle One) A. New Account E. Staff Relocation - New GL : B. Address Change F. Temporary Credit Limit Increase: Amount C. Account Closure Reason for Increase/Date: D Name Change G. Single Transaction Limit Increase: Amount H. Other Description TO ADD A NEW ACCOUNT (Request "A") 1. Circle "New Account under Type of Request Above 2. Complete the section under "Card Information" TO CHANGE INFORMATION ON AN EXISITING ACCOUNT (all other requests) 1. Indicate Type of Request Above 3. Fill in current name on card 2. Fill in last 8 digits of account number 4. Complete only the Fields to be changed in Card Information Section CARD INFORMATION Name characters (Embossed on Card) 2211 Riverside Avenue Address characters (Maximum) Minneapolis City characters (Maximum) Last 4. digits of cardholder's Social Security Job Title Dept/GL Information MN State - 2 characters Zip - 5 Zip Expansion - 4 AUTHORIZATION SPECIAL INSTRUCTIONS Employee Signature Date Approving Manager Signature Date Program Administrator Signature Date 13

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15 Date: Company Name: Cardholder Name: Account Number: Transaction Date: Amount: Merchant Description: Please return this Dispute Form to the Business Purchasing Service Center by fax at or at Please check the appropriate statement that describes your dispute. Please attach any supporting documentation; such as credit memos, letter to merchants, receipts or proof of payment. I certify that the disputed transaction was not made by me or a person authorized to use the card, nor were the goods or services represented by this transaction received by me or anyone authorized by me. Although I did perform the above transaction, I m disputing the entire charge or a portion of the charge in the amount of. I have contacted the merchant and requested a credit to my account for the reason explained in the attached letter. A transaction for appeared on my statement as. I have enclosed the receipt. A credit has not posted to my account or the credit was posted a purchase on my statement or activity report. I have enclosed the receipt for the credit. I did not receive the service or the merchandise. I have contacted the merchant and they have not resolved the dispute. I expected to receive the merchandise or service on (date). Duplicate charge. A single transaction was processed more than once I already paid this transaction by: Check Cash Money order Other credit card. Your Signature Phone number Date address Please send the completed form as soon as possible so that we may process your claim. All disputes must be received within 60 days from the posting date. 15

16 Affidavit of Commercial Card Fraud Please return this Affidavit to the Business Purchasing Service Center by fax at or at Name of Claimant: Wells Fargo Account Number (Last 8 digits): Date: Unauthorized Card Stolen Card Not Received Card Missing Other Although my card is in My card was stolen on I did not receive the My card was discovered Additional information my possession I did not at. I Commercial Card with missing on. provided on a separate make, authorize, or allow notified the an expiration date of sheet. Police. Police Report #: 00/00. anyone to use my card. Please include the following information for each fraudulent/unauthorized transaction: Merchant Name The merchant name where the transaction(s) occurred, found on your statement. Transaction date The date the transaction(s) posted to your account found on your statement. Amount The dollar amount for the transaction(s). If you have more than 10 transactions to list, please provide a separate sheet with all transactions. Merchant Name Transaction Date Amount Check here if you have included items on a separate sheet or attached additional information. By signing this Affidavit, you are making the following declarations: I did not receive any benefit or value from the proceeds of the transaction(s) listed above. I have not arranged with the person(s) who fraudulently used the account listed above to be reimbursed for any portion of the proceeds of the purchase(s). I will cooperate in any investigation, promptly disclose any information requested by the Bank, and if necessary, prosecute the wrongdoer. I will testify to the truth of these statements in any case which may result from this affidavit. All information I have provided in this document is true. I declare under the penalty of perjury that the above stated is true. Signature of Card Holder Date Signature of Other Authorized User Date Executed at (City, County, and State) 16