Purchasing Card Procedures

Transcription

1 7/5/2012 Purchasing Card Procedures

2 PURCHASE CARD PROCEDURES TABLE OF CONTENTS OVERVIEW OF PROGRAM... 3 PURPOSE... 3 INTRODUCTION... 3 BENEFITS OF THE P CARD... 3 CONTACT INFORMATION... 3 DEFINITIONS OF TERMS USED IN P CARD PROCEDURES... 4 GENERAL RESPONSIBILITIES... 4 COMPLIANCE WITH P CARD PROCEDURES AND CONSEQUENCES... 5 MISCELLANEOUS GENERAL P CARD PROCEDURES... 5 CARD SECURITY... 5 VENDOR BLOCKING... 5 CARDHOLDER TRANSFER/SEPARATION... 5 LOST, MISPLACED OR STOLEN PURCHASING CARDS... 6 GETTING A P CARD TO USE FOR COLLEGE BUSINESS... 6 WHO CAN GET A P CARD?... 6 WHAT IS AUTHORIZED CREDIT CARD USE?... 6 WHAT IS UNAUTHORIZED CREDIT CARD USE?... 7 MAKING A PURCHASE... 7 BUYING GOODS WITH THE PURCHASE CARD... 8 SUBMITTING PURCHASE RECEIPTS TO ACCOUNTS PAYABLE... 8 DECLINES... 8 EMERGENCY TRANSACTIONS... 8 CREDIT CARD REFUNDS... 8 UNRESOLVED DISPUTES AND BILLING ERRORS... 9 REVIEWING PURCHASE CARD TRANSACTIONS... 9 REVIEWING P CARD DATA IN BANNER... 9 MONTHLY RECONCILIATION OF PURCHASING CARD CHARGES TO SFSC DEPARTMENTS... 9 REVIEWING PURCHASE CARD TRANSACTIONS IN JP MORGAN SMARTDATA FREQUENTLY ASKED QUESTIONS FORMS FOR P CARD PROGRAM ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D ATTACHMENT E ATTACHMENT F ATTACHMENT G

3 PURCHASE CARD PROCEDURES Overview of Program Purpose South Florida State College (hereafter, SFSC) has established these procedures to document the method and limits for the use of the SFSC MasterCard Credit Cards (hereafter, Purchasing Card or P Card) provided to certain SFSC personnel. The P Cards are issued in order to make purchases of goods and/or services that are required by the College for the normal performance of the card holder s duties. Introduction SFSC has established the P Card program in order to provide a more rapid turnaround of purchases for low-dollar-value goods and to reduce paperwork and handling costs. Those employees who have been issued a P Card may initiate transactions in person or by telephone, fax or Internet, within the limits of these procedures, and receive the purchased goods and services. Benefits of the P Card Using the P Card benefits the College, cardholders, and suppliers as follows: Ability to obtain goods and services faster and easier Reduced need to use personal funds and obtain reimbursements Immediate payment to suppliers/vendors Convenience, security, and flexibility Universal acceptance by suppliers who accept MasterCard Built in controls prohibit certain restricted purchases Automatic recording of all purchases made by cardholder Contact Information Description Name Telephone Fax Card Issuer JP Morgan (lost or stolen card) P Card Administrator Anita Kovacs Dick Peavy Accounts Payable P Card Coordinator Tina Gonzales Amy Dow Tracey Osborne

4 Definitions of Terms used in P Card Procedures Card Issuer The P Card issuer is JP Morgan. The card issuer s services include issuing the P Cards to SFSC employees, providing electronic transaction authorizations, providing the Smartdata program for P Card program management, and billing SFSC for all purchases made on the cards. Cardholder The cardholder is an employee of SFSC who is recommended and approved to use the P Card to execute purchase transactions on behalf of SFSC. Purchasing Card Coordinator A purchasing card coordinator is an SFSC employee designated to be responsible for reviewing transactions of individual cardholders and to make sure the transactions are legitimate business expenses and are classified appropriately. Purchasing Card Administrator A purchasing card administrator is an SFSC employee who administers the P Card program for SFSC, monitors cardholders and acts as SFSC s intermediary in correspondence with the card issuer. Vendor The vendor is the merchant from whom a cardholder is making a purchase. General Responsibilities A cardholder will: 1. Prepare a SFSC P CARD EXPENSE AUTHORIZATION form for each purchase (Attachment C) or credit card refund (Attachment E) made using the P Card. 2. Submit the above form to the Accounts Payable section with all related paperwork, including the receipt and or shipping document, within (3) three work days of the activity or return to the College if traveling. 3. Safeguard the P Card to prevent it being used by anyone else. 4. Insure that all purchases are proper, appropriate and meet all requirements established by the College and all relevant rules and laws. P Card coordinator(s) will coordinate the following: 1. Receipt of Expense Authorization forms from the cardholders. 2. The review of cardholder receipts and statements for adherence to rules. 3. Retention of all receipts and vouchers for audit by internal and external auditors. Receipts for purchases are to be maintained for 7 years. 4. Preparation and submission of the monthly journal entry. 5. Reconciliation of the monthly billing statement to the cardholder supplied documentation. 4

5 P Card administrator(s) will: 1. Make periodic audits of card use and charges for appropriateness. Areas to be monitored include, but are not limited to, compliance with Card regulations, compliance with SFSC regulations, and sales and use tax charges. Non-use of card by cardholders will also be monitored. 2. Process applications for the P Card for issue to College employees. 3. Make periodic inventory of P Cards to insure accountability. 4. Monitor and update card restrictions. 5. Review and recommend updates as necessary to these policies and procedures. Compliance with P Card Procedures and Consequences The use of the purchasing card shifts the control of the purchasing process to the purchaser. As such, in order to maintain more than adequate backup support of all expenditures, deviations from standard purchase card procedures will be monitored as well as immediately corrected. A deviation can comprise of not turning in documentation timely, the loss of purchase documentation, or other issues that might cause an audit concern for the College s overall purchasing process. The intentional use of the P Card to procure goods and/or services for other than the official use of SFSC is fraudulent use. The use of the purchasing card is a job expectation and a responsibility. Violations of administrative procedures may result in suspension or revocation of the issued card and/or disciplinary action, up to and including termination of employment. Miscellaneous General P Card Procedures Card Security It is the cardholder s responsibility to safeguard the credit card and account number. The cardholder must not allow anyone to use his or her account number or purchasing card. Vendor Blocking SFSC reserves the right to block transactions at the point-of-sale level for certain vendor categories. Cardholder Transfer/Separation Before separation from SFSC, the Cardholder shall surrender the credit card to the P Card Administrator. 5

6 If a cardholder transfers to another department, he/she may request to retain their card through their new chain of command and the P Card Administrator. Lost, Misplaced or Stolen Purchasing Cards Cardholders are required to immediately report any lost or stolen Purchasing Card to the card issuer toll-free at (24 hours a day, 365 days a year). The cardholder must also immediately notify the P Card administrator(s) about the lost or stolen card at the first opportunity during normal business hours Getting a P Card to use for College Business Who can get a P Card? Department heads may propose an employee to be a cardholder by completing the Request for P Card (Attachment A). The request must be forwarded through the signature cycle to the P Card administrator for processing. The cardholder must complete a training session before being issued a card. The proposed cardholder will be issued a copy of this procedure and will be required to acknowledge in writing that he or she understands the procedures. What is Authorized Credit Card Use? The unique credit card that the cardholder receives has his/her name embossed on it and shall ONLY be used by the cardholder. NO OTHER PERSON IS AUTHORIZED TO USE THE CARD OR THE ACCOUNT NUMBER ON THE CARD. The cardholder may make transactions on behalf of others in his or her department. However, the cardholder is responsible for all use of his/her card. Use of the P Card shall be limited to the following conditions: a. The cardholder will purchase items that are consistent with the cardholder s organizational responsibilities and that are for the official use of SFSC. b. The cost of a proposed purchase may not exceed the transaction limit established by the college purchasing procedure 4040 as it would apply to the cardholder unless a temporary increase authorization has been approved and received in the Business Office. c. Temporary increases to P Card spending limits may be made using the Increase Authorization form (Attachment D). Temporary increases for less than 90 days may be approved through the chain of command of the cardholder. The form must be signed by someone who has the authority to spend at least the amount of spending level granted in the temporary increase. Increases exceeding 90 days must be additionally authorized by the VP for Administrative Services. 6

7 d. The cardholder WILL NOT split a purchase into multiple transactions to stay within the single purchase limit. e. All items purchased over the counter must be immediately available at time of credit card use. No back ordering of merchandise is allowed. What is Unauthorized Credit Card Use? Cardholders WILL NOT USE the credit card for the following reasons unless specifically authorized in advance by a P Card administrator: a. Personal purchase or identification; b. A single purchase of supplies or equipment that exceeds the cardholder s transaction limit; c. Postage stamps; d. Gift Cards(needs prior approval by Business Office); e. Personal Items (silk plants, pictures, area rugs, fans, and other items for office decoration/customization to personal tastes and preferences.); f. Purchase of uniform apparel g. Cash advances; h. Telephone calls; i. Cellular phones or service; j. Computers, printers, or other electronic technology device; k. Gasoline purchases (see the Purchasing Coordinator to obtain Voyager Card and PIN). l. Employees whose responsibilities include the purchase of meals are not to exceed the generally accepted level of gratuity. If an establishment has a large group mandate of a higher gratuity, appropriate documentation must be provided. Cardholders are advised against splitting purchases into two purchases to circumvent P card thresholds and other purchasing procedures. Purchases will be reviewed by the P Card Coordinator(s) and purchases of like items within relatively short periods will be reviewed with the P cardholder, and their supervisor when such behavior appears to have happened. Appropriate use of the card will be reviewed as well as continued use of the card by the cardholder. MAKING A PURCHASE Whenever making a credit card purchase, the cardholder will use his or her best judgment to obtain the best product at the best price for SFSC. In addition, the cardholder will always consider the departmental budget guidelines when making purchasing decisions. 7

8 Buying Goods with the Purchase Card The cardholder will retain documentation as proof of purchase for all P Card purchases. Such documentation will be used to verify the purchases listed on the cardholder s monthly statement of account. a. When a cardholder makes a purchase over the counter (at vendor s location), the cardholder shall retain the invoice and the customer copy of the charge receipt. The cardholder is responsible to check that the vendor lists the quantity, fully describes the item(s), and does not make arithmetic errors before the cardholder signs the acknowledgement slip. b. When making a purchase by telephone, fax or Internet, the cardholder must retain a copy of the order blank or the order confirmation. When the cardholder receives the goods after placing the order, he/she must retain all shipping documentation and the invoice. Submitting Purchase Receipts to Accounts Payable 1. The cardholder will prepare an SFSC P CARD EXPENSE AUTHORIZATION form (Attachment C) for each purchase or credit made using the P Card. 2. The cardholder will attach all related documentation (receipt, invoice, shipping list, etc.) to the form and submit to Accounts Payable within (3) three business days of purchase (or upon return to campus if on College related travel when the purchase occurs). a. The cardholder must code each transaction to the appropriate department (Index) and general ledger distribution (Account Code) b. The cardholder must sign and date the form. Declines If a vendor declines the Purchasing Card, the cardholder should immediately contact a P Card administrator for assistance. If the purchase is being made outside of normal SFSC business hours, the employee must find an alternate payment method or cancel the purchase and contact a P Card administrator during normal hours. Emergency Transactions Emergency transactions over the cardholder s transaction limit may be declined by a vendor. Should this happen the cardholder should call a P Card administrator. The administrator may or may not facilitate the transaction depending upon the circumstance. For facilitated emergency expenditures, an increase authorization form with appropriate explanations and approvals should be routed to the P Card administrator within one week of the P Card holder s return to campus. Credit Card Refunds Vendors will issue all credits to the individual P Card account for any item they have agreed to accept for return. This credit may appear on a subsequent statement. Under no 8

9 circumstances may a cardholder accept cash instead of a credit to the P Card account. When a credit is issued, this should be documented on the SFSC P Card Credit Card Refund form (Attachment E). Unresolved Disputes and Billing Errors The cardholder is responsible for contacting the vendor to resolve any disputed charges or billing errors. If the matter is not resolved with the vendor, the cardholder should contact the card issuer at or directly to advise them of the dispute. The total amount billed by card issuer will be charged to the individual departmental accounts, and credits for disputed transactions will be posted to departmental accounts when the credit appears on the card issuer billing. Reviewing Purchase Card Transactions Reviewing P Card Data in Banner P Card transactions will be loaded electronically for purchase activity monthly. This will generally occur at the beginning of the following month of the purchase. This means that P Card transactions will be delayed until that time from appearing as expenses against departmental expense budgets. As a result, it becomes the budget manager s responsibility to track P Card purchases made during the month to insure that budget is not exceeded. Monthly Reconciliation of Purchasing Card Charges to SFSC Departments 1. At the end of each month, the cardholder will receive a detailed listing of the cardholder s transactions. Should a cardholder want to verify charges prior to receiving a statement, see the next section to utilize JP Morgan s online credit card system, Smartdata. 2. The cardholder must: a. Verify that the vendor receipts agree with the cardholder statement and that all merchandise has been received. b. Notify a P Card coordinator immediately if there are any discrepancies. 3. A P Card coordinator will assemble and retain cardholder s charge slips and receipts for audit by internal and external auditors. Based on the individual cardholder submissions, a P Card coordinator will process the required accounting entries for the departmental charges 9

10 4. The total amount billed by card issuer will be charged to the individual departmental accounts. Credits for disputed transactions will be posted to departmental accounts when credit appears on the card issuer billing. 5. A P Card coordinator will reconcile the detailed electronic billing statement to amount paid to the card issuer, JP Morgan. A cardholder will be notified if any charges appear on the statement for which the cardholder has not submitted support. Immediate submittal of support documentation will be necessary as the support documentation is already past due for being submitted to Accounts Payable. Reviewing Purchase Card Transactions in JP Morgan Smartdata The cardholder will login to JP Morgan s website at the following link: Cardholders will then find themselves on JP Morgan s Smartdata home page from there cardholders will do the following: 1. Go to Home ribbon, click on Account Activity. 2. From Account Activity, click on Transaction Summary 3. Cardholders will then click Reporting Cycle, click drop down box and choose Billing Cycle month that transaction was made or choose a date range from calendar available and then click Search 4. Search results will then list transactions made; cardholders will then click on Account number to see transaction details. Budget Supervisors can access reporting cardholder transactions as follows: 1. Go to Home ribbon; click on Financial Tab 2. From Financial Tab; click on Account Summary 3. In Account Summary, budget supervisors will click on drop down box in the Search Criteria box and choose All (Account Group); click search. 4. Budget supervisors will then click on the Account Group that they are looking for a Cardholders transaction under. 5. Budget supervisors will then click Reporting Cycle; click drop down box and choose the billing cycle month that the transaction was made in or choose a date range from the available calendar; click Search. 6. Search results will then list transactions made; budget supervisors will click on account number to see transaction details. Frequently Asked Questions Q. How do I look up and review my charges in Banner? A. You can use your normal forms or screens (FGIBDST, FGITRND) to review your charges. Each charge will show as an individual purchase in your budget. The 10

11 charge itself will come as an S document with the vendor name appearing on FGITRND with the amount of the purchase identified in the amount column. Q. What will happen if I forget and accidentally add a personal item such as a soda when checking out with my P Card? A. Personal charges should not be made when using a P Card. Should this occur, be sure to itemize the personal charges as deductions to your reimbursement before submitting the reimbursement request for travel expenditures and highlight the personal charges on the receipt. In the event that there is no reimbursement or the personal charge exceeds the reimbursement request for travel or direct purchases, you must proceed immediately to the Cashier s Office, pay for the personal charges, and submit this receipt (personal charges highlighted) with the other receipts. Q. If I paid for a hotel and plane tickets for a conference with the P Card, do I need to list them on the travel reimbursement form I fill out when requesting meal reimbursements? A. All expenses relating to a trip need to be itemized on the travel reimbursement form. Deductions with a note indicating that the expenses were paid by your P card need to be included so that the total costs related to the trip can be verified upon audit. P Card expense authorizations for hotels and plane tickets in advance of travel will require the dates of travel and conference name so that accounts payable can later verify them to the travel vouchers to preclude the College paying on the P card and reimbursing on the travel voucher form. Q. Can I charge my meals on travel to the P Card since the expenses are reimbursable? No. Per diem rates for travel do not require the submittal of actual expenses for reimbursement. What is spent on meals is of a personal nature and should not be charged to the College P card. Q. Can I purchase gas with my P Card? A. No, the card is not setup to purchase fuel. You must use a Voyager Fuel Card for fuel purchases when using a College vehicle or when renting a vehicle for business purposes. The Voyager Fuel Card allows the College to avoid state sales tax when paying for gas. It also allows the P Card user to not have to fill out separate reimbursement forms for every different gas station frequented. For more information regarding the use of Voyager cards contact a purchasing coordinator at extension

12 Q. What is my limit on my card? A. Each cardholder will have a different limits of per purchase and maximum spending limits according to individual needs. The following staff has the ability to look up and advise you of both your single transaction limit and your monthly limit. 1. Dick Peavy Ext Tina Gonzales Ext Ashley Bennett Ext Amy Dow Ext Tracey Osborne Ext Q. Will I need a Tax-Exemption Certificate with me when I make my purchase? A. Yes. The cardholder has to be sure that sales tax is not rung up for the sales transaction and charged on the card. It is the cardholder s responsibility to have any sales tax charged to the card refunded. Forms for P Card Program The following pages contain the forms discussed in these instructions cardholders to use. 12

13 ATTACHMENT A REQUEST FOR P CARD A purchasing card is requested for the following employee: Employee Name (First, MI, Last) (Must be employee's legal name) EMPLOYEE BIRTH DATE (mm/dd/yyyy) EMPLOYEE GID: DEPARTMENT INDEX NUMBER: WHAT WILL BE PURCHASED: TELEPHONE NO.: TITLE, BRIEF JOB DESCRIPTION: STANDARD PURCHASE LIMITS Single Transaction Monthly Billing / Cycle Limit CHECK BOX BY PROPOSED AM OUNT: Limit *Authorized Staff $ $ $ $ 2, $ $ 1, *Coordinator $ $ 2, $ $ 5, *Administrative Director / Dean $ 1, $ 5, $ 1, $ 10, President / Vice President Administrative Purchaser $ 3, $ 14, OTHER PROPOSED SINGLE / MONTHLY PURCHASE LIMIT: $ $ EMPLOYEE ACKNOWLEDGEMENT OF REQUEST: Signature RECOMMENDATION AND APPROVAL CONVEY THE APPROPRIATE EXPENDITURE AUTHORITY TO THE CARDHOLDER Authorization Box: Printed Name Signature Requesting Chair/Coordinator: Recommending Dean/Director: Recommending Vice President/President: APPROVAL BY CONTROLLER: 13

14 ATTACHMENT B SFSC P CARD CARDHOLDER AGREEMENT Cardholder s Name: New Card Renewal Your current authorization limits for use of your P card are at a single transaction limit of with a monthly limit of. As part of the renewal process we are requesting that you have your budgetary chain of command reaffirm that these levels are still appropriate. Please have your supervisor(s) sign this form, indicate any additional purchases restrictions, and bring it to the Business Office to pick up your new card. Purchasing Restrictions: Budget Supervisor Signature: (Only to be signed if a P Card renewal) Cardholder Acknowledgement I understand that I am expected to follow the College Purchasing Card Guidelines. I am responsible for the safe keeping of the College P Card and, if lost, I will report its loss immediately to Card Issuer and to the P Card Administrator(s). I understand that the use of the P Card is to obtain goods and services for other than the official use of SFSC is considered improper use of College P Card. An employee found improperly using their College P Card will be required to reimburse the College for all costs associated with such improper use and will be subject to disciplinary actions up to and including dismissal. The reimbursement may be done as a garnishment with the cardholder s signature on this agreement. I have read, understand and agree to the conditions above and have received my P Card, valid through. For Authorized Users only I understand that the use of the P Card is limited to buying items as directed and all purchases will be affirmed by my budget supervisor. I understand that the Card s use is restricted as identified above. Cardholder s Signature: Cardholder Receipt (To be signed only when card is received) 14

15 SFSC P CARD EXPENSE AUTHORIZATION ATTACHMENT C FOR: GID: Vendor Name: Vendor ID: Vendor Address: Purchase : Received: Description of Purchase (ATTACH ALL RECEIPTS & RECEIVING DOCUMENTS) _ Index Account Amount TOTAL P CARD PURCHASE $ Card Holder Signature Other Required Budget Signature I hereby certify that this purchase appears to have been properly done in accordance with SFSC P Card Guidelines and College Procedure That the account is correct and funds are available to cover the expenditure. Business Office Representative 15

16 ATTACHMENT D SFSC P CARD INCREASE AUTHORIZATION FORM Card Holders Name & Title: Employee ID: Last Four (4) Digits of P-Card: Effective : Increase Ending : The increase of P Card spending level is hereby requested for the above identified card holder. This increase override exceeds the standard Signatory Authority established by the Cardholder agreement. The purpose of this request is to accomplish the following: Increase Spending Level FROM: TO: Single Transaction Limit Monthly Billing Cycle Limit Single Transaction Limit Montly Billing Cycle Limit Card Holder Signature Required Budget Signature Required Budget Signature Vice President of Administrative Services P-Card Administrator 16

17 ATTACHMENT E SFSC P CARD CREDIT CARD REFUND For: GID: Purchase : Receipt/Invoice #: Transaction being disputed Vendor Name: Vendor ID: Vendor Address: Vendor Phone Number: Description of Purchase (ATTACH Credit Receipt & ALL Documents): Index Account Amount TOTAL P CARD PURCHASE $ Signature I hereby certify that this purchase appears to have been properly done in accordance with SFSC P Card Guidelines and College Procedure That the account is correct and funds are available to cover the expenditure. Business Office Representative 17

18 ATTACHMENT F RECURRING P CARD EXPENSE AUTHORIZATION FOR: GID: Vendor Name: Vendor ID: Vendor Address: City: State: Zip: Related PO#: Yes NO If yes, PO# Description of Purchase (ATTACH ALL RECEIPTS & RECEIVING DOCUMENTS) Index Account Amount TOTAL PCARD PURCHASE $ Recurring Charge Range (cannot extend beyond the fiscal year end): FROM: TO: Card Holder Signature Other Required Budget Signature I hereby certify that this purchase appears to have been properly done in accordance with SFSC P Card Guidelines and College Procedure That the account is correct and funds are available to cover the expenditure. Business Office Representative 18

19 ATTACHMENT G SFSC P CARD LOST RECEIPT FORM Card User s Name: GID: Purchase : Vendor Name: What was purchased: Description Quantity Unit Price Extended Price ATTACH FORM TO AN EXPENSE AUTHORIZATION FORM Shipping : $ ORDER TOTAL: $ Receipt was : Lost (Explain): Unobtainable Why? Other (Explain): I hereby certify that the above accurately depicts the actual purchase and was made in accordance with the procedures established by SFSC and Florida Statutes. Printed Name Signature Cardholder: Concurrence (Department Head): Accepted Purchasing Ca rd Coordinator 19