McGILL UNIVERSITY PROCUREMENT CARD POLICIES AND PROCEDURES

Transcription

1 McGILL UNIVERSITY PROCUREMENT CARD POLICIES AND PROCEDURES The McGill University Procurement Card (PCard) is a University selected credit card assigned to authorized Cardholders in order to allow purchasing of goods and services up to specified amounts for business purposes. The University has implemented the use of the PCard with the objective of improving administrative procedures for the University community by streamlining the paperwork process and improving acquisition time for materials, supplies and services. This Card is embossed with the Cardholder s name and includes the McGill University name. The Card is limited to Business Use Only and may not be used for items of a personal nature, for travel and entertainment related expenses and certain prohibited card transactions. No other McGill staff, family or any other individual is authorized to use this Card. The Cardholder is responsible for ensuring that the PCard is used in accordance with the Procurement Card Policies and Procedures. The University may cancel the PCard at any time should it have cause to believe that the PCard is not being used for the stated authorized purposes. Questions related to the PCard program and Policies and Procedures are to be directed to Purchasing Services. Questions related to the McGill On-line PCard System (MOPS), payment of charges against PCard and disputes are to be directed to the PCard Administration Group. Issued March 13, 2002 Page 1 of 15

2 TABLE OF CONTENTS 1.0 McGILL UNIVERSITY PROCUREMENT CARD POLICIES PROCUREMENT CARD GLOSSARY CARDHOLDER ELIGIBILITY CARDHOLDER LIABILITY PROCUREMENT CARD LIMITS PROHIBITED CARD TRANSACTIONS PROCUREMENT CARD REQUESTS LOST OR STOLEN CARDS DISPUTES CREDITS TAXES ON PURCHASES ENCUMBRANCE VENDOR PARTICIPATION REQUIRED DOCUMENTATION AND RECORD RETENTION RECONCILATION OF PROCUREMENT CARD CHARGES AUDIT AREAS OF RESPONSIBILITY McGILL UNIVERSITY PROCUREMENT CARD PROCEDURES PROCEDURES FOR CARDHOLDER Applying for a Procurement Card Obtaining the Procurement Card Obtaining Goods & Services Procurement Card Transaction Log & Documentation Envelope Best Business Practice Reconciliation of Procurement Card Charges Disputes PROCEDURES WHEN A PROCUREMENT CARD NEEDS TO BE REPLACED In case of a Lost/Stolen Card: In Case of Worn Out/Defective Cards: Procurement Card Automatic Renewal PROCEDURES WHEN A CARDHOLDER LEAVES THE UNIVERSITY OR CHANGES DEPARTMENT Termination Temporary Leave Change of Department Issued March 13, 2002 Page 2 of 15

3 1.0 McGILL UNIVERSITY PROCUREMENT CARD POLICIES 1.1 PROCUREMENT CARD GLOSSARY Best Business Practices: are those business management practices that lead to better results and are generally accepted as the industry standards. Cardholder: A person designated by a Fund Holder to be given a PCard to make purchases within pre-set limits, on behalf of the Fund Holder. The Fund Holder may also require the Cardholder to reconcile the charges made against that Card to the appropriate Fund(s). Card Issuer: Financial (banking) institution that issues the PCard. Cycle Limit: The maximum number of transactions that may be applied to a Cardholder s purchasing authority per day. The University standard Cycle Limit is five (5) transactions per day. Default FOAPAL: The FOAPAL number which is provided by a Fund Holder on the Request for Procurement Card Form. The PCard Administration Group uses the default FOAPAL to distribute the un-reconciled charges remaining after the designated reconciliation time limit. Departmental PCard Administrator Best Business Practice : The individual who has been delegated by the Fund Holder and/or Cardholder the responsibility for reconciling and reviewing transactions to ensure the appropriateness of activity and timely processing of charges and/or credits. Documentation Envelope Best Business Practice : An envelope that is designed for storing monthly PCard supporting documents. The front of this envelope is used as the first page of the Transaction Log. The University highly recommends the use of the Documentation Envelope and the Transaction Log. Encrypted Web Page: Sensitive information, generated by Web pages, is secured when traveling over the worldwide web. Encumbrance: A process for recording commitments of funds available, before a transaction is completed. FOAPAL: Represents the elements of McGill s Accounting Distribution: Fund = the source of money Organization = the department / admin unit responsible for the fund Account = describes the nature of expenditures or revenues Program = tracks the functional area for which the funds are used (e.g.: teaching, research, academic services, etc.) Activity = optional code, at the discretion of the Fund Holder Location = optional code, to identify the physical location related to a financial transaction. Fund Holder: A University faculty or staff member who is responsible and accountable for a University fund. This individual ensures all disbursements are in accordance with restrictions, if any, imposed by the funding source or contributor. Issued March 13, 2002 Page 3 of 15

4 MCC: Merchant Category Code assigned to a merchant by the Card Issuer, which identifies the primary goods or services provided by the merchant. Monthly Limit: The maximum dollar value of charges that may be applied to a Cardholder s purchasing authority for the month. The University standard limit is $15000 per month. MOPS: McGill On-line PCard System that has been developed to facilitate PCard approvals. Users indicate their approval by assigning a transaction to the proper FOAPAL. MOPS provides a variety of options for generating reports. It can be accessed via a menu within Minerva (the web application accessing Banner administrative systems) by logging in with a McGill ID and PIN. PCard, Card or Credit Card: Procurement Card. A University selected credit card assigned to authorized Cardholders for the purpose of Purchasing goods and services up to specified amounts for business purposes. PCard Administration Group: The office which approves PCard applications, monitors all PCard usage and which may revoke the PCard privilege of Cardholders in the event of misuse. Reconciliation: The process whereby the Cardholder or the Departmental PCard Administrator approves the purchases by assigning the appropriate FOAPAL on MOPS. Transaction: A charge, credit, correction or other activity processed against any Cardholder account. Transaction Limit: The maximum allowable dollar limit of $2500 (including shipping charges, currency exchange and taxes) for each transaction (swipe of the Card). 1.2 CARDHOLDER ELIGIBILITY To be eligible for a PCard the applicant must meet the following criteria: The applicant must be a University faculty or staff member; The applicant must submit a written application which must be supported and approved by his/her Fund Holder of the Default FOAPAL; The applicant must complete an on-line certification training on Procurement Card Policies and Procedures prior to being issued a Card; If approved, the applicant must sign the Cardholder Agreement in advance of receiving his/her Card and in the presence of a PCard Administration Group representative. 1.3 CARDHOLDER LIABILITY As the PCard is issued to the University for the use of the authorized Cardholder, it is a University credit card, which will not affect the Cardholder s personal credit. However, it is the Cardholder s responsibility to ensure that the Card is used only within the stated guidelines of the University Procurement Card Policies and Procedures. Failure to comply with these policies and procedures will result in revocation of the Card and may result in disciplinary and other measures taken against the Cardholder. The University will hold the Cardholder fully responsible for all unauthorized purchases and any other fees associated with those purchase(s). Issued March 13, 2002 Page 4 of 15

5 Cards are assigned to a specific individual. They may not be assigned to multiple users. Cards may not be loaned to any other individual. The Cardholder is the only person authorized to use the assigned Card and is responsible for all transactions. 1.4 PROCUREMENT CARD LIMITS McGill University PCard limits are set as per the following parameters: 1. Transaction Limit: Single transaction (i.e. Swipe of the Card) not to exceed $2,500 (including shipping charges, currency exchange and taxes). The Transaction Limit can be lowered. It cannot be increased; 2. Cycle Limit: Five (5) transactions per day. The Cycle Limit can be lowered or increased; 3. Monthly Limit: $15,000 total purchases per month. The Monthly Limit can be lowered or increased. Note: Adjustment to any of the above parameters is subject to the approval of the Fund Holder and the authorized representative of the PCard Administration Group. Purchases must not be split to circumvent PCard limits. If the dollar amount of an item exceeds the established Card limits, a Banner requisition must be issued to Purchasing Services. 1.5 PROHIBITED CARD TRANSACTIONS A series of code numbers will be referenced on the PCard. These codes will indicate the monetary limits that are established for each Card, the number of transactions that are permitted on the Card and certain Merchant Category Code (MCC) restrictions. PCards may not be used to purchase goods and services for personal use. In addition, the following goods and services may not be purchased with the PCard: Regulated alcohol; Laboratory and research animals; Printing services relating to the reproduction of multiple copies of copyrighted materials where copyright clearance has not been obtained; Inter-departmental services of a nature like those currently being provided through Facilities Management work orders; Salary & salary related charges including temporary help and consulting fees; Travel & Entertainment related expenses including conference registration. (This requires use of McGill Corporate Amex card and Travel Reimbursement form); Parts, maintenance services and fuel for the University vehicles (Requires use of McGill Fleet credit card.); Transactions over $2,500 including shipping charges, currency exchange and taxes; Cash Advances; Parking including McGill University Parking Services; Purchases must not be split to circumvent procurement procedures. If the dollar amount of an item exceeds the established Card limits, a Banner purchase requisition must be issued to Purchasing Services. Issued March 13, 2002 Page 5 of 15

6 1.6 PROCUREMENT CARD REQUESTS Any request for a PCard must be submitted in writing to the PCard Administration Group. A Request for Procurement Card Form must be completed for each potential Cardholder and signed by the Fund Holder of the Default FOAPAL. Please see section for the procedures Applying for Procurement Card. 1.7 LOST OR STOLEN CARDS It is the responsibility of the Cardholder to maintain control and security for the PCard. All precautions should be used to maintain confidentiality of all information relating to the Card, such as the Cardholder PCard number and expiration date. The PCard number should never be left in a conspicuous place. Fraudulent use of the Card and lost or stolen Cards must be reported immediately. Please see section for the procedures In case of a Lost or Stolen Card. 1.8 DISPUTES The Cardholder is responsible for resolving all discrepancies and disputes directly with the vendor. Every effort must be made to resolve disputes within thirty (30) days of the transaction. The Cardholder should allow sufficient time for the vendor to prepare credit voucher or for the replacement of items. Please see section for procedures Disputes. If the Cardholder is not able to resolve the dispute with the vendor within 30 days, the Cardholder must indicate on MOPS the dispute and the PCard Administration Group should be contacted to intervene with the Card Issuer on behalf of the Cardholder. 1.9 CREDITS The vendor must issue a credit to the Cardholder account for any item they have agreed to accept for return or price adjustment. This credit will appear on MOPS and should be reconciled in the same manner as other transactions TAXES ON PURCHASES McGill University is required to pay G.S.T. and Q.S.T. in the majority of instances. Depending on the type of supplies and location of the vendor, however, the amount of tax or tax implications may vary. It is the responsibility of the Cardholder to inquire about the applicable taxes prior to confirming the order to the vendor and verify the invoice to ensure that correct taxes are charged ENCUMBRANCE The Cardholder must ensure that there are sufficient available balances in the funds to be charged, taking into account other PCard charges not yet reflected on their funds. Encumbrances will not be created for PCard transactions. Purchase transactions are only encumbered if they are made through the Banner Purchase Requisition and Purchase Order process. Issued March 13, 2002 Page 6 of 15

7 1.12 VENDOR PARTICIPATION All purchases less than $2,500 per transaction (including shipping charges, currency exchange and taxes) must be processed using the PCard. If a vendor frequently used by University employees does not accept the PCard, the University will assist in recruiting the vendor to take the necessary steps toward acceptance of the Card. Cardholders should contact Purchasing Services when encountering vendors who do not accept the Card REQUIRED DOCUMENTATION AND RECORD RETENTION In compliance with McGill University s Records Retention Schedule, PCard transaction documents must be retained for a period of (7) years to support potential audit of transactions by funding agencies or sources. The Fund Holder is responsible for accumulating and arranging for appropriate secure storage of the transaction documents during the (7) year period. Fund Holders may consult the University Archives for advice on complying with the retention requirements, including identifying appropriate storage solutions. For all McGill University PCard transactions, key documents supporting transactions will include invoices (or packing slips with prices) and Card vouchers RECONCILATION OF PROCUREMENT CARD CHARGES PCard related purchasing transactions are fed electronically by the Card Issuer to McGill On-line PCard System (MOPS) daily. The reconciled transactions on MOPS are then fed into Banner daily as invoices with applicable sales tax rebates. Each invoice created will be given a document number beginning with IP, signifying it is a PCard purchase transaction. It is the responsibility of the Cardholder or Departmental PCard Administrator to reconcile PCard charges to the appropriate FOAPAL on MOPS. It is the responsibility of the Fund Holder to ensure that charges to a fund are appropriate and accepted. Reconciliation of PCard transactions must be done on MOPS within thirty (30) days of the transaction date. It is recommended to perform reconciliation of MOPS weekly, so charges are reflected in Banner on a timely basis. Any un-reconciled PCard transaction will be charged to the Default FOAPAL (using the predetermined account code ). The Cardholder s PCard may be revoked if there are frequent transactions in the Default FOAPAL AUDIT PCard transaction records may be requested at any time for examination by the PCard Administration Group, faculty or department management personnel, internal or external auditors. Issued March 13, 2002 Page 7 of 15

8 1.16 AREAS OF RESPONSIBILITY Card Issuer: is responsible for: establishing Credit Card accounts; producing and delivering all Cards to the PCard Administration Group; canceling any Card reported lost or stolen; providing the transactions to the University for displaying on MOPS; providing customer service assistance; collecting payment from the University for services provided under the PCard program; remitting payment to the University PCard vendors. Purchasing Services - is responsible for: administering the PCard Agreement with the Card Issuer; planning, developing and evaluating all aspects of the PCard program including the related Policies and Procedures; reviewing all expenditures to evaluate the effectiveness of the program and identifying any high volume items that could be competitively quoted or bid; arranging vendors to be set up as merchants with the Card Issuer; providing liaison between the Card Issuer and the Cardholder community with respect to promotion of the PCard program and any issue related to MCC codes; maintaining all PCard Web documentation including the on-line certification training page. PCard Administration Group - is responsible for: addressing the security issues raised by the Card Issuer; maintaining Cardholder agreements and other relevant documentation; processing Card applications and approvals; this includes receiving approval of Default FOAPAL s by the appropriate administrators in Accounting; maintaining databases of Cardholders; adjusting Cycle and Monthly Limits on PCards subject to Fund Holder approval; issuing/replacing PCards; facilitating all training related to PCard program; maintaining the University PCard Listserv; enforcing Procurement Card Policies and Procedures; processing all payments made to the Card Issuer; facilitating reconciliation of billing disputes once the Cardholder has exhausted all attempts with the vendor; displaying the transactions on MOPS; ensuring that adequate or appropriate FOAPAL codes are assigned to the charges; ensuring MOPS reconciled charges are posted to Banner Financial Information System (FIS) as invoice charges; coordinating remittance of sales taxes and deposit of reimbursement for unauthorized purchases; monitoring for and resolving potential program abuses; notifying Purchasing Services if unusual or restricted transactions are noted; maintaining and improving the MOPS Web application. Issued March 13, 2002 Page 8 of 15

9 Purchasing Services and PCard Administration Group jointly are responsible for: developing the on-line certification training program; posting PCard related communiqués via the Listserve. ISR/Banner Help Desk are responsible for: maintaining databases of User ID numbers and PINS (Personal Identification Numbers) for access to MOPS; resetting PINS for a Cardholder, if forgotten, following an authentication process. Cardholders are responsible for: the security of the Card and notifying lost or stolen Card information to the PCard Administration Group or Card Issuer as appropriate; appropriate use of the Card in accordance with Procurement Card Policies and Procedures; reconciling and submitting each transaction on MOPS, if designated by the Fund Holder; maintaining appropriate PCard Transaction Logs and supporting documentation; resolving all questionable items or disputes directly with the vendor; indicating unresolved disputes on the MOPS. Fund Holder is responsible for: approving requests for PCards defaulting to his/her account; designating a default FOAPAL for purchases on the PCard; reviewing PCard transactions on their fund statements to ensure that the charges are appropriate; notifying the PCard Administration Group of any change in the Cardholder s status (i.e. employment termination, sabbatical, maternity leave, sick leave); administering their funds and PCard related transactions which are ultimately posted to these funds. Departmental PCard Administrator Best Business Practice is responsible for: ensuring all purchases are appropriate; ensuring all appropriate documents and Transaction Logs are maintained; signing Transaction Logs to confirm the review of transactions for appropriateness, the completeness of documentation and the completion of reconciliation of transactions in MOPS; performing PCard reconciliation using MOPS. Issued March 13, 2002 Page 9 of 15

10 2.0 McGILL UNIVERSITY PROCUREMENT CARD PROCEDURES 2.1 PROCEDURES FOR CARDHOLDER Applying for a Procurement Card Requester completes a Request for PCard form and submits it to his/her Fund Holder for approval; Fund Holder provides default FOAPAL to be assigned to the Card (fund may not start with 8 which signifies a trust fund); Fund Holder s signature delegates transaction authority to the Cardholder; Requester submits completed and approved application form to the PCard Administration Group; Fund Holder may name a Departmental PCard Administrator Obtaining the Procurement Card An electronic notification will be sent to the Cardholder advising him/her that the PCard Administration Group has received the Card; Cardholder completes on-line certification training before receiving the Card; Cardholder presents him/herself in person at the address indicated on the electronic notification, to pick up the PCard; Cardholder must present an Identification card; Cardholder signs the Cardholder Agreement signifying agreement with the terms of the PCard program; Cardholder signs the back of the PCard after taking possession of the Card Obtaining Goods & Services The Cardholder can place orders by phone, facsimile, mail, internet, and over-the-counter. In all cases: The Cardholder must determine, before placing an order that the: proposed purchase is not a prohibited Card transaction; total cost does not exceed the Cardholder s purchase limits, including shipping charges, currency exchange and taxes; vendor accepts the PCard; product is available; price is the best that can be obtained (ask if educational discounts are available); delivery date meets expectations and needs; appropriate method of shipping and handling is selected and special handling instructions are defined; shipping cost. The Cardholder must ensure that the receipt, and/or packing slip contains the: vendor name and address; description of items purchased; quantity of goods ordered and received; itemized unit prices and the amount extensions; goods and Services Tax and Provincial Sales Tax (if applicable); Issued March 13, 2002 Page 10 of 15

11 shipping charges (if applicable); grand total of order. The Cardholder must ensure that the goods are received before completing reconciliation on MOPS. When placing the order by phone or fax, the Cardholder must: provide to the vendor, his/her name, phone number, department name and a shipping address; record the name of the person taking the order; obtain a confirmation order number from the vendor; record the purchase on the PCard Transaction Log. When placing the order by Internet, the Cardholder must: ensure that appropriate consideration is given to security concerns (i.e. encrypted web sites); when possible print copies of orders before issue; obtain electronic confirmation of the order; If PCard purchases are made using an Internet Billing Agency such as Paypal, Ibill or Ebay, the Cardholder forwards a copy of the confirmation together with the description of the merchandise to the PCard Administration Group. Best Business Practice Procurement Card Transaction Log & Documentation Envelope Upon placing an order, regardless of the method used, the Cardholder should record the transaction on their Transaction Log. Receipts should be stored in the Documentation Envelope unless an alternative process has been established. Each Cardholder is provided with an initial supply of 12 PCard Documentation Envelopes (additional supply of envelopes can be obtained at no cost through the PCard Administration Group). The information on the Transaction Log shall include: item # (assign a number in this column and write it on the matching receipt); transaction/credit date; vendor name; brief description of product/service; total amount (including tax and shipping and currency exchange, if applicable); expected delivery date; MOPS approval date; MOPS audit number; check if goods/services is received ; check if receipts are enclosed. The front of the Documentation Envelope can be used as the first page of the PCard Transaction Log. If required, additional copies of the PCard Transaction Log can be printed directly from the web site ( and added to the envelope. The PCard Transaction Log is used to reconcile the transactions. Upon receiving the goods/services, the Cardholder will: check the item that has been received.; check Dispute Item column with the Dispute Code, if applicable Issued March 13, 2002 Page 11 of 15

12 Should any audit find frequent instances of lost or inadequate receipts, the Cardholder s PCard may be revoked and disciplinary measures against the Cardholder, in accordance with University policies, will be taken. Alternative document management processes may be appropriate depending on department needs and administration, providing it complies with the University retention requirements Reconciliation of Procurement Card Charges Daily transaction data is electronically displayed on MOPS where the Cardholder and Departmental PCard Administrator can access and review the PCard activities. The Cardholder or Departmental PCard Administrator will review the unapproved transactions for accuracy and reconcile them with his/her Transaction Log that includes all vendor receipts (invoices), and/or packing slips. If there are no discrepancies, the Cardholder or Departmental PCard Administrator will assign a FOAPAL number on MOPS in acceptance of the charges. These FOAPAL assignments should be completed in a timely manner. Weekly is considered acceptable. The Cardholder or Departmental PCard Administrator is responsible for any discrepancies that may appear in the documentation. The Cardholder should always attempt to resolve any discrepancies directly with the vendor and/or the Card Issuer. Upon completion of reconciliation on MOPS, the approval date and reference number as well as any unrecognized and disputed charges noticed must be added to the Transaction Log. The Cardholder s PCard may be revoked if there are frequent transactions in the Default FOAPAL Disputes The Cardholder must report all unresolved disputes on MOPS within 30 days of the transaction date. The Cardholder is prompted to categorize the nature of the dispute and provide explanation. If the Cardholder is not able to resolve the dispute with the vendor, the PCard Administration Group should be contacted to intervene with the Card Issuer on behalf of the Cardholder. The Card Issuer does not recognize disputes over 60 days from the date of transaction. Common Dispute Reasons: The most common dispute reasons are described below. These reasons correlate with those found on the Transaction Log. Merchandise Not Received This reason is used if the Cardholder has not received the goods ordered. The Cardholder should allow sufficient time for the vendor to correct the error. If the situation is not resolved, the Cardholder is to provide details including the date that the delivery of service or merchandise was expected. Issued March 13, 2002 Page 12 of 15

13 In the event that the order was canceled, the Cardholder is to provide full details such as why the transaction was canceled and the date of cancellation. Unauthorized Mail/Phone Order This reason should be used for telephone or mail order transactions. If a sales slip is signed with an authorized signature or imprinted with the Cardholder s Card, this reason does not apply. Duplicate Processing This reason is used when a transaction has been multiple-billed to an account (the amounts must be the same). The Cardholder is to provide the transaction details of the original billing, such as dollar amounts, transaction date, etc. Merchandise Returned This reason is used when merchandise was returned but the credit has not been posted on MOPS. The Cardholder should allow the vendor sufficient time for processing their paperwork before filing the dispute. If sufficient time has elapsed, describe the reason for returning the merchandise and the date the item was returned. Credit Not Received This reason is used when the Cardholder has received a credit voucher or a written refund acknowledgment from the vendor, but the credit has not been posted on MOPS within 30 days from the date on the voucher or acknowledgment. Alteration of Amount This reason is used when the amount of a transaction has been altered without permission. The Cardholder must acknowledge the amount before alteration, and a copy of the Cardholder s sales slip must be provided to support this reason. The amount of the credit would be the difference between the amount before alteration and after alteration. Inadequate Description or Unrecognized Charge In the event that the Cardholder does not recognize the transaction description, they should request that the Card Issuer Customer Services supply a copy of the sales slip. This should be requested only after reviewing their supporting documentation and ensuring a vendor description or location error has not occurred. The Cardholder Checks the box Inadequate Description/Unrecognized Charge, on MOPS, so that the PCard Administration Group will order a copy of the sales slip. The Cardholder will receive a copy in approximately thirty (30) days. Not as Described This reason is used when the Cardholder claims that goods or services were not received as described. It is important that the sales draft specifically describe what was purchased. In a telephone order situation, the verbal description is considered the document characterization. The Cardholder must explain in his or her support documentation how the verbal description was different from what was actually received. Issued March 13, 2002 Page 13 of 15

14 An attempt must be made to return the goods and must be stated in the Cardholder s complaint. If merchandise was returned, proof of such return must be forwarded to the Card Issuer. Other Dispute Reasons If the reasons discussed so far do not adequately describe or fit the Cardholder s dispute circumstances, please contact the PCard Administration Group. 2.2 PROCEDURES WHEN A PROCUREMENT CARD NEEDS TO BE REPLACED In case of a Lost/Stolen Card: The Cardholder should immediately contact the Bank of Montreal Customer Service at to report a lost or stolen Card. This number is available 7 days a week, 24 hours a day for reporting purposes. The Cardholder must be prepared to respond to the following questions: Cardholder s complete name. Circumstances surrounding the loss of the Card. Any purchase(s) made on the day the Card was lost or stolen. Details of the last purchase amount and location. Personal Identification information. Identify if there is a need to replace the Card. After a missing or stolen Card incident is reported to the Card Issuer, the Cardholder must notify the PCard Administration Group so that the University records can be updated accordingly. If applicable, the PCard Administration Group will process the required paperwork to the Card Issuer to obtain a replacement Card, if applicable. The Card Issuer will mail the replacement Cards to the PCard Administration Group within five (5) working days of notification. The PCard Administration Group will notify the Cardholder when the replacement Card is available for release. Please see section for the procedures Applying for a PCard In Case of Worn Out/Defective Cards: If a PCard needs to be replaced because it is worn out or defective, the Cardholder should notify The PCard Administration Group. They will, in turn requests a replacement Card from the Card Issuer. The Card Issuer will mail the replacement Cards to the PCard Administration Group within five (5) working days of notification. The PCard Administration Group will notify the Cardholder when the replacement Card is available for release. Please see section for the procedures Applying for a PCard. To receive the new Card, the old Card must be surrendered and destroyed in the presence of a representative of the PCard Administration Group releasing the Card Procurement Card Automatic Renewal A new PCard will be issued directly by the Card Issuer and sent to the PCard Administration Group before the expiration date. The PCard Administration Group notifies the Cardholder. If a Card is not received before the current one expires, Cardholder must call the PCard Issued March 13, 2002 Page 14 of 15

15 Administration Group. The Card is valid until the last day of the month indicated (i.e. 10/02 until October 31, 2002). 2.3 PROCEDURES WHEN A CARDHOLDER LEAVES THE UNIVERSITY OR CHANGES DEPARTMENT Termination When a Cardholder leaves the University, the Fund Holder must provide immediate notification to The PCard Administration Group. The Fund Holder must obtain the Card and all outstanding documentation on the account from the Cardholder prior to final separation and reconcile the charges on MOPS. The Fund Holder will destroy the Card and will forward a PCard Cancellation form to The PCard Administration Group. A Request for PCard form needs to be completed for a new Card requested for new/replacement employees Temporary Leave When a Cardholder leaves his/her position or changes responsibilities on a temporary basis (i.e. sabbatical, maternity leave, sick leave), the Fund Holder must obtain all outstanding documentation on the account from the Cardholder, reconcile the charges on MOPS and may then ask the PCard Administration Group to have the Card deactivate or cancelled. In the case of Card deactivation, the Fund Holder submits a written notification to The PCard Administration Group. If the Fund Holder chooses to cancel the Card, the procedures on Termination (see section 2.3.1) must be followed Change of Department When a Cardholder changes department, the same procedures as for Termination (see section 2.3.1) applies. Issued March 13, 2002 Page 15 of 15