Purchasing Card (p-card)

Transcription

1 Purchasing Card (p-card) Manual Purchasing Department Revised June 13, 2018

2 Purchasing Card Manual Page 1

3 TABLE OF CONTENTS Section Page # 1. Purpose 2 2. Introduction 2 3. Receiving a p-card 2 4. Authorized p-card use 2 5. Unauthorized p-card use 3 6. Making a Purchase 3 7. Cardholder Record Keeping 4 8. Review of Monthly Statement 4 9. Use of p-card for University-Sponsored Travel P-card Program Violations P-card Security Cardholder Separation from University P-card Definitions Program Timelines 6 PURCHASING CARD (P-CARD) FORM P-Card Application Purchasing Card Employee Agreement P-Card Missing Receipt Affidavit Request to Ship APPENDIX # Appendix A Appendix B Appendix C Appendix D Purchasing Card Manual Page 2

4 PURCHASING CARD (P-CARD) PROGRAM POLICIES & PROCEDURES 1. PURPOSE The purpose of the Purchasing Card Program (p-card) is to improve the purchasing process by streamlining small dollar purchases, expand controls, and increase efficiency. 2. INTRODUCTION This method of purchasing is used in order to allow departments the flexibility of acquiring goods on an as needed basis, with specified restrictions, rather than process a Purchase Requisition. Those employees who have been issued a P-Card may initiate transactions in person, online, or by telephone, within the limits of the procedures, and receive goods. Payments to vendors are made via the Master Card settlement system. Monthly payments from the University will be made to the bank automatically and departmental charges will be uploaded to accounts in the Banner finance system once a month. 3. RECEIVING A P-CARD 3.1. University faculty and staff requesting a p-card must complete a Purchasing Card Application and Employee Agreement (see appendix A and B ) and submit both to the Purchasing Department. Applications must include a budget manager s signature authorizing the request Upon receipt of the p-card, the Purchasing Department will contact the cardholder to schedule p-card training The Purchasing Department will maintain all records of p-card requests, limits, cardholder transfers, and lost/stolen/destroyed card information. 4. AUTHORIZED P-CARD USE 4.1. The employee s name will be embossed on the p-card, along with the University tax ID number. P-cards will not be issued in a department name Use of the Purchasing Card is limited to the following conditions: a. The total value of a transaction shall not exceed a Cardholder s single purchase limit. Payment for a purchase must not be split into multiple transactions to stay within the single-purchase limit. b. All items purchased must be immediately available at the time of order. No backordering of merchandise is allowed. c. Cardholders must adhere to spending limits. d. Requests to increase limits or change merchant code restrictions must be made to the Purchasing Card Administrator or designee. Purchasing Card Manual Page 3

5 5. UNAUTHORIZED P-CARD USE 5.1 The Purchasing Card shall not be used for the following: Alcoholic beverages Ammunition Animals Appliances Automotive service and repairs Cash Advances Computers and peripherals Controlled substances Copying Services Cylinder gases Federal Grant purchases Firearms Food -- per LSSU Travel Policy dated July 1, 2017 Furniture Gasoline/Fuel per LSSU Travel Policy dated July 1, 2017 Hazardous Materials Leases Maintenance contracts Personal purchases Photocopiers and supplies Postage/Shipping Printers Printing Services Projects that include logo, artwork, and imagery Purchases involving trade of University property Radioactive Materials Software Telephones and telephone-related expenses 5.2 A Cardholder who makes unauthorized purchases with the p-card may be liable for the total dollar amount of such purchases. The amount of the purchase will be deducted from the card holder s salary via payroll deduction. The Cardholder will also be subject to disciplinary action, which could include cancellation of card privileges, or other appropriate measures as outlined in the pcard Employee Agreement. 6. MAKING A PURCHASE 6.1 It is the Cardholders responsibility to seek competition and the best value within the parameters of quality and delivery. When making a p-card purchase, it is recommended that the Cardholder check as many sources as reasonable to assure optimal price, quality and delivery. The Purchasing Department has established prime vendor contracts with Office Depot (office supplies) and Ink & Toner Alternative (printer toner and cartridges). Failure to utilize identified prime vendors may be construed as p-card violations. 6.2 Cardholders will utilize the following checklist when making a purchase: a. Use contracted prime vendors when applicable. If a contracted vendor has not been established, solicit as many sources as appropriate to the situation. The Purchasing Department can assist you with vendor selection. Purchasing Card Manual Page 4

6 b. Designate a vendor: 1) Confirm that the vendor agrees to accept MASTER CARD. 2) Confirm pricing and availability (back orders are not approved). 3) Inform the vendor the purchase is for Lake Superior State University and is tax exempt. The tax exempt number is printed on the face of the p-card. 4) Direct the vendor to include the following information on the shipping label and packing list: Cardholder name and department name The words p-card purchase Delivery/shipping address: Address for UPS or FedEx shipment: 1100 Meridian Avenue, Sault Ste. Marie, MI Address for United State Postal Service shipment: 650 W. Easterday Avenue, Sault Ste. Marie, MI P-Card Returns: If an item is not satisfactory, is received wrong, damaged and/or defective, or if the order is duplicated, the Cardholder should contact the vendor to explain the problem and inquire about the vendor s return policies. If the item(s) are to be returned, the Cardholder must complete a Request to Ship form (see appendix D ). Submit the Request to Ship form to the Purchasing Department and deliver the item(s) for return to Central Receiving, located in the Physical Plant Building. 6.4 P-card Disputes: If the Cardholder is disputing a charge, he/she will notify the P-Card Administrator. The 5 th 3 rd Dispute Form will be sent to the Cardholder for completion. Cardholder will send the form to the Purchasing Department as soon as possible. Disputes must be sent to the Bank within 30 days of the statement date. 7. CARDHOLDER RECORD KEEPING Whenever a p-card purchase is made, either online, over the counter, or by telephone, original itemized sales documentation is required as proof of the purchase. Such documentation will be submitted with the reconciled monthly statement. An itemized receipt is required for all purchases. All p-card information shall be retained for three (3) years within the p-card holders department. 8. REVIEW OF MONTHLY STATEMENT 8.1 At the end of each billing cycle, the Cardholder will receive a statement of account listing the Cardholder s transactions for that period. 8.2 The original itemized sales documents (packing slip, invoice, cash register tape, credit card slips, etc.) for all items listed on the statement must be neatly attached to the statement. This data is critical to enable proper account reconciliation and audit review. 8.3 If the Cardholder does not have documentation of a transaction listed on the statement, he/she will complete a Missing Receipt Affidavit (see appendix C ), with an explanation that includes a description of the items(s) purchased, date of purchase, Vendor s name and reason for the lack of supporting documentation. 8.4 The Cardholder and Budget Manager shall review and approve the expense report within 5 working days from the end of the statement cycle. Upon approval, expense reports and receipts are to be sent to the Purchasing Department for audit. Statements and receipts are due in the Purchasing Department no later than the 5 th of each month. Failure to comply with this deadline is considered a violation. Purchasing Card Manual Page 5

7 8.5 The Purchasing Department will review and audit the charges and reports on a monthly basis for compliance. The Business Office will audit and ensure each account number is correct. 8.6 If an item has been returned and a credit voucher received, the Cardholder will verify that this credit is reflected on the expense report. If credits are not listed on the expense report the Cardholder will work with the vendor to ensure credit is received. 9. USE OF THE P-CARD FOR TRAVEL 9.1 Purchasing cards may be used for University-sponsored travel, as authorized by the appropriate budget manager. Cardholders must request their card be opened for travel, in writing, to Purchasing. 9.2 Cardholders are expected to adhere to the policies and procedures for University travel, as outlined by the Business Office. 9.3 Cardholders using the Purchase Card for travel must document travel purpose (who, what, where and why) on the expense report and submit original itemized receipts with the reconciled expense report. 10. P-CARD PROGRAM VIOLATIONS 10.1 Purchasing Card program violations include, but are not limited to: Purchase of unauthorized items or expenses Missing receipts Inadequate purchase description Failure to report travel expenses (who, what, when, where and why) Failure to submit signed and approved expense report by the 5 th of each month. Shipment of order to a location other than LSSU s Receiving Department or mailroom. ` 10.2 Violation of p-card policies/procedures will be reported to the P-card Administrator. Action will be taken as a result of violations. Such actions include, but are not limited to: re-payment in full for unauthorized purchases, suspension of card, or cancellation of card as determined by p-card Administrator and cardholder s budget manager. 11. P-CARD SECURITY 11.1 It is the Cardholder s responsibility to safeguard the Purchasing Card and account number to the same degree that a Cardholder safeguards his/her personal credit card The cardholder shall not allow another person to use their p-card. A violation of this trust is subject to p-card violation action If the Purchasing Card is lost or stolen the Cardholder must immediately notify Purchasing. A new p-card will be promptly issued to the Cardholder after the reported loss or theft. A p-card that is found by the Cardholder after being reported lost must be sent to the Purchasing Department for destruction. 12. CARDHOLDER SEPARATION FROM UNIVERSITY Should a Cardholder terminate employment with the University or transfer between departments, the user Department has the specific obligation to reclaim the p-card, notify the P-Card Administrator, and return the p-card to the Purchasing Department for destruction. The cards may also be collected through the exit interview process with the Human Resources Office. Purchasing Card Manual Page 6

8 13. DEFINITIONS 14.1 Cardholder: Employee who has been granted use of a p-card to make purchases in accordance with p-card policies and procedures Budget Manager: The individual responsible for the account in which p-card transactions are expensed P-card Administrator: The Purchasing Manager who is responsible for all program details Statement of Account: The monthly statement the bank produces that is distributed by the Purchasing Department to the cardholder SGD2 Expense Report: This is a list of expenses from a statement period that is coded by the card holder for account numbers and explanation of the purchase(s). 14. TIMELINES: 15.1 Billing Cycle: The p-card program runs on a 30 day cycle. The cycle closes on the 27 th /28 th of each month SDG2 Expense: Charges are expensed on the SDG2 expense report at the time a charge is authorized by the bank Expense Report: The cardholder and Budget Manager shall review and approve the expense report within 5 working days after the end of the statement cycle. Reconciled and fully approved expense reports are due in the Purchasing Department no later than the 5 th of each month. Purchasing Card Manual Page 7

9 APPENDIX A PURCHASING CARD (P-CARD) APPLICATION Cardholder Name: Department: Phone No.: The above named cardholder is being entrusted with a purchasing card (p-card) to make financial commitments on behalf of Lake Superior State University. The cardholder will be allowed to purchase good on an as needed basis, with specified restrictions as outlined in the p-card manual. Upon receipt of the p-card, the Purchasing Department will contact the cardholder to schedule p-card training. Upon completion of training the cardholder will be required sign an Employee Agreement indicating their understanding of the p-card program, and their responsibilities associated with use of the p-card. The cardholder will follow the established procedures for use of the p-card. Failure to do so will result in revocation of the p-card or other disciplinary actions. Should the named cardholder terminate employment with the University, the Departmental Budget Manager has the responsibility to reclaim the p-card and return it to the Purchasing Department prior to the employee s termination date. To be completed by the requesting department budget manager: Requested single transaction limit: $ (not to exceed $250) Requested monthly credit limit: $ (not to exceed $1,000) Card is authorized for university sponsored travel? YES NO Signature: Date: (Cardholder) Signature: Date: (Budget Manager) RETURN COMPLETED APPLICATION TO THE PURCHASING DEPARTMENT Purchasing Card Manual Page 8

10 APPENDIX B P-CARD EMPLOYEE AGREEMENT I,, hereby request a Purchasing Card. As a holder I agree to comply with the following terms and conditions regarding my use of the card: I understand that I am being entrusted with a valuable tool a Purchasing Card and will be making financial commitments on behalf of Lake Superior State University. I will strive to obtain the best value for the University. I understand that the University is liable to Fifth-Third Bank for all charges made on the card, therefore I must submit appropriate documentation (e.g. invoices, receipts) for all purchases made on the card. I agree to use this Purchasing Card for approved purchases only and agree not to charge personal purchases. I acknowledge unauthorized purchases will be deducted from my salary via payroll deduction. I understand that the Business Office will audit the use of this Purchasing Card and report and take appropriate action on any discrepancies. I will follow the established procedures for the use of the Purchasing Card. Failure to do so may result in either revocation of my use of privileges or other disciplinary actions. I have reviewed the Purchasing Card Procedures and understand the requirements for the Card s use. I agree to return the Purchasing Card immediately upon request or upon termination of employment (including retirement). Should there be any organizational change which causes my department to likewise change, I also agree to return my Card and arrange for a new one, if appropriate. If the Purchasing Card is lost or stolen, I agree to notify Fifth-Third Bank and the Purchasing Card Administrator immediately. If the Card is stolen, I also agree to notify Public Safety. Employee Signature Date Department Manager Date Purchasing Card Administrator Signature Date RETURN COMPLETED AGREEMENT TO THE PURCHASING DEPARTMENT Purchasing Card Manual Page 9

11 APPENDIX C P-Card Missing Receipt Affidavit I,, have either not received or have misplaced a P-card receipt totaling $. This document will be used in lieu of an invoice or receipt for this transaction. Vendor: Date of Purchase: Item(s) Purchased: (Include description, quantity and unit price, and business purpose for each item) What attempts have been made to request a duplicate receipt from the vendor? (Include names, dates, phone numbers, or s used in requesting documentation from the vendor.) I certify that the amounts shown above (and on the attached, if applicable) were purchased and received for Lake Superior State University purposes. I understand that habitual use of this form* instead of submitting actual receipts or invoices will result in suspension or termination of P-Card privileges. Cardholder (Printed Name) Cardholder (Signature) Date Approving Official (Printed Name) Approving Official (Signature) Date *Habitual use is defined as more than three (3) times in one fiscal year and will result in suspension of P- card privileges for a minimum of 3 months. Purchasing Card Manual Page 10

12 APPENDIX D REQUEST TO SHIP/RETURN TO VENDOR Name: Date: Department: FOAPAL: Dollar value of item(s): Fixed Asset Inventory #: Serial #: Model #: Purchase Order #: P-Card (last 4 digits): This is a return Refund requested Credit requested Neither refund nor credit This is repair This is a shipment other than a return or repair Reason for return/shipment: (defective, incorrect item, preview item, repair estimate): Items being returned/shipped (please include quantity & item description): Return/shipping address: (PO Box not acceptable) Ordered From: (Include Co. Name & Address) Confirmation of Return from Vendor: Return Authorization #: Date: Company Rep. Name: Phone#: Authorized by: Signature of Purchasing Manager Date Purchasing Card Manual Page 11