SECTION: Procurement Number: Procurement General

Transcription

1 MANUAL OF ADMINISTRATIVE POLICIES AND PROCEDURES SECTION: Procurement Number: AREA: Procurement General SUBJECT: Procurement Card TABLE OF CONTENTS I. PURPOSE AND SCOPE II. INTRODUCTION III. DEFINITIONS IV. RECEIVING THE PROCUREMENT CARD V. AUTHORIZED CARD USE VI. UNAUTHORIZED AND OR INAPPROPRIATE CARD USE VII. MAKING A PURCHASE WITH THE PROCUREMENT CARD VIII. MERCHANDISE RETURNS AND EXCHANGES IX. RECORD RETENTION X. CARDHOLDER VERIFICATION OF CHARGES XI. CARDHOLDER CHARGE DISPUTE RESOLUTION XII. CARD ADMINSTRATOR VERICATION OF CARDHOLDER CHARGES 1

2 XIII. CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS XIV. PROCUREMENT CARD SECURITY XV. LOST, STOLEN OR DAMAGED PROCUREMENT CARD XVI. CARDHOLDER ACCOUNT MAINTENANCE XVII CARDHOLDER TRANSFER WITHIN THE UNIVERSITY XVIII. CARDHOLDER SEPARATION FROM THE UNIVERSITY XIX. PROCUREMENT CARD CANCELLATION XX. ATTACHMENTS/FORMS 2

3 I. PURPOSE This document defines the limits and uses of the procurement card, a payment mechanism that allows authorized personnel to expedite purchases independent of the Purchasing Department. II. INTRODUCTION The University of Houston Procurement Card Program has been established to provide a convenient means with which to make purchases and, at the same time, reduce the costs associated with initiating and paying for those purchases. The Purchasing department is responsible for managing the Program and each Academic or Administrative department is responsible for managing its Cardholder accounts. Three areas of responsibility have been defined within each department to assist in this management effort. There are the Cardholder, Card Administrator, and Department Contact. It is important to understand that these three areas of responsibility do not necessarily equate to three separate individuals within the department. It is permissible for one individual to be assigned one or more of these responsibilities as defined in these Policies and Procedures. The ultimate decision as to how each of these responsibilities is assigned will be made within each department. III. DEFINITIONS A. Procurement Card: A charge card issued to an employee of The University of Houston for the purpose of making authorized purchases on the University's behalf. The University will issue payment for charges made with the Procurement Card. B. Cardholder: University employee and/or campus department, whose name appears on the Procurement Card and is accountable for all charges made with that card. 3

4 C. Card Administrator(s): University employee(s) within each department responsible for verifying that all charges against the Cardholder's account are backed up by support documentation and that the documentation is retained within the department. Card Administrators have the ability to reallocate individual charges to University accounts through use of an Internet-based software product. Cardholders may be their own Card Administrators and a Card Administrator may oversee more than one Cardholder account depending on how the department elects to manage its accounts. A department may assign primary and alternate Card Administrators. D. Department Contact: University employee within each department responsible for receiving and disseminating Procurement Card information within their department and for relaying Procurement Card information from within their department to the Program Administrator. It is recommended that each department have only one Department Contact. E. Program Administrator: University Purchasing Department employee responsible for administering the Procurement Card Program for the University and acting as the liaison between the University and the bank. F. Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the Procurement Card. This amount must not exceed $5, per transaction. Departments may establish lower limits on a per Cardholder basis. A single transaction/charge may include multiple items but cannot exceed $5,

5 G. Monthly Spending Limit: A dollar limitation of purchasing authority assigned to the Cardholder for the total of all charges made during each monthly billing cycle. This amount may not exceed $20, Departments may establish lower limits on a per Cardholder basis. H. Statement of Account: A listing of all transactions charged to the Cardholder's card account up to the end of the monthly billing cycle, approximately the 5th day of each month. This statement is sent by the bank, directly to the Cardholder, on a monthly basis. (See Section X) I. Default Account: The University account code assigned to an individual Cardholder's Procurement Card. Only one Default Account can be assigned to any one Procurement Card and all charges made with the Procurement Card will be posted into the Default Account unless those charges are reallocated. (See Section XIII) J. Support Documentation: A merchant produced or non-university document that records the relevant details for each item purchased including quantities, amounts, a description of what was purchased, the total charge amount and the merchant's name and address (e.g. sales receipt, original invoice, packing slip, credit receipt, etc.). 5

6 IV. RECEIVING THE PROCUREMENT CARD Completed Cardholder Enrollment and Agreement Forms for University Procurement Card must be submitted for each prospective Cardholder. These forms must be signed by the account executive for the default account shown on the forms and then forwarded to the Program Coordinator. (See Attachment A) V. AUTHORIZED CARD USE A. Cardholders are authorized to use the Procurement Card to purchase any merchandise or services required as a function of their duties at the University with the exception of the following: 1. Items For Personal Use 2. Items For Non-University Purposes 3. Cash Advances 4. Food and Beverages (Including Alcoholic Beverages) 5. Travel-Related Expenses 6. Entertainment 7. Gasoline 8. Motorized Vehicles 9. Financial Services 10. Radioactive Materials 11. Purchases prohibited by University policy or not related to University business 12. Capital Equipment >$5, PC and Laptop Computers (any dollar value) B. Only the Cardholder or department to whom the card is assigned, is authorized to use the card and is responsible for ensuring that all 6

7 charges made with the card are incompliance with these Policies and Procedures. C. The total value of any one charge made with the Procurement Card may not exceed the $5, single transaction limit stipulated on the Cardholder's Enrollment Form. VI. UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE The Procurement Card must never be used to purchase items for personal use or for non-university purposes even if the Cardholder intends to reimburse the University. A Cardholder who makes an unauthorized purchase with the Procurement Card, as defined in (Section V), or uses the Procurement Card in an inappropriate manner will be subject to disciplinary action including possible termination of employment at The University of Houston and criminal prosecution. VII. MAKING A PURCHASE WITH THE PROCUREMENT CARD A. The Cardholder should purchase from preferred merchants whenever possible to take advantage of pricing and terms negotiated on a University wide contract basis. B. Confirm that the selected merchant accepts MasterCard. If not, choose another vendor or use a Voucher. In either case, inform the Program Administrator, via your Department Contact, about the fact that the original merchant did not accept MasterCard. 7

8 C. When making purchases in person, the Cardholder must sign the charge receipt and retain the customer copy. The Cardholder should verify that either the charge receipt or sales receipt complies with the requirements for support documentation (See Section 3.J). D. When making purchases via telephone, internet, mail order, etc., cardholders should give the merchant the account number following on the shipping label and/or packing slip: 1. Cardholder name and phone number 2. Department name 3. Complete campus delivery address including building name and room number 4. The words "MasterCard Purchase" 5. University's tax exemption number: Cardholders are encouraged to receive their own shipments; however, if someone on Campus will be receiving a shipment on the Cardholder's behalf, the Cardholder should notify them in advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining all documentation (packing slips, mail order form copies, etc.) related to the purchase and verifying that the documentation complies with the requirements for support documentation (See Section 3.J). XIII. MERCHANDISE RETURNS AND EXCHANGES A. The Cardholder is responsible for contacting the merchant when merchandise purchased with the Procurement Card is not 8

9 acceptable (incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange. B. If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with the support documentation for that purchase. Receiving cash or checks to resolve a credit is prohibited. C. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the support documentation for that purchase. XI. RECORD RETENTION Cardholder Responsibility: The Cardholder is responsible for obtaining purchase documentation from the merchant (sales receipt, packing slip, etc.) To support all purchases made with the Procurement Card and verifying that the documentation complies with the requirements for support documentation (See Section 3.J). Note: In addition to obtaining the documentation, it is required that the ardholder also record the details of each purchase in a Procurement Card Transaction Log. (See Attachment B). X. CARDHOLDER VERIFICATION OF CHARGES A. Cardholders are accountable for all charges made with their Procurement Cards and are responsible for checking all transactions against the corresponding support documentation to 9

10 verify their accuracy and propriety. This check should be done regularly using the Cardholder's printed Statement of Account. Note: If the Cardholder is also the Card Administrator, accountability for ach charge should be recorded at this time as described in Section XII. B. If a particular charge or credit does not appear on the Statement of Account, it should be checked against the next Statement of Account. If the charge or credit does not appear within 60 days after the original charge was made, the Cardholder must notify the Program Administrator. C. If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears. (See Section XI) D. After all transactions have been checked, the Cardholder must sign his or her Statement of Account. The signed statement and all support documentation must be forwarded to the Accounts Payable Department by the 5th day of the following month.. XI. CARDHOLDER CHARGE DISPUTE RESOLUTION In the case of a disputed charge, the Cardholder must try to resolve the dispute directly with the merchant. If the dispute cannot be resolved, the Cardholder must complete a cardholder Dispute Form (See Attachment C) within 60 days of the date noted on the Statement which lists the disputed charge and forward the completed form to the bank. 10

11 XII. CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES A. The Card Administrator is responsible for reviewing each transaction and indicate if a there is a discrepancy. Cardholders will perform this function if they are Card Administrators. B. For a charge to be supported there must be adequate support documentation available so that the Card Administrator can ascertain that the purchase is valid and the Cardholder is accountable for that purchase. C. For there to be a Discrepancy associated with a charge, any one or more of the following situations may exist: 1. Insufficient support documentation. 2. One or more of the criteria for authorized card use set forth in Section V have not been met. 3. The Cardholder disputes the charge. (See Section XI) All discrepancies must be investigated and resolved. The disposition of each discrepancy must be documented and retained with the support Documentation and/or Statement of Account. Cardholders are accountable for all discrepancies. Note: If a discrepancy cannot be resolved, the Program Administrator must be notified. D. Missing or Incomplete Card Statement Support Follow-Up by Accounts Payable Thirty (30) days after card statements are distributed; Accounts Payable distributes an message to cardholders that have not 11

12 submitted their statements. The message will refer them to the Purchasing Department if they did not receive their statement, so they can be provided with another copy. If the non-submission is the result of extenuating circumstances, cardholders should immediately notify Accounts Payable by phone. After sixty (60) days, Accounts Payable will send a second notice to delinquent cardholders. An message will put them on notice that if Accounts Payable does not receive the statements and receipts in the next month, thereafter, their Procurement Card privileges will be cancelled. Accounts Payable will follow-up with a phone call a few days after the message, to ensure there are no extenuating circumstances that should be taken into account. After ninety (90) days, Accounts Payable will send a final message to delinquent cardholders, advising them their card privileges have been revoked. The Purchasing Department will be notified by Accounts Payable, and will contact the bank to arrange for the card to be cancelled. E. After all transactions have been designated; the Card Administrator must forward the support documentation and Statement of Account to the Accounts Payable Department. XIII. CHARGE ALLOCATION TO NON-DEFAULT ACCOUNTS A. For any given charge, the Card Administrator has the option to perform on-line reallocations from the default account to additional University accounts. If the reallocation option is not exercised by the last business day of the month in which the billing cycle ends the total amount of the charge will be posted into the default account. 12

13 Note: Reallocation to Revenue or Salary accounts is not permitted. B. If a particular charge reallocation involves one or more grant accounts, and the Card Administrator is not sure what the grant allows, they should consult the award document(s) for the affected grant(s). If there are still further questions, the Card Administrator should contact the appropriate grant Program Administrator in the Office of Research and Sponsored Programs. XIV. PROCUREMENT CARD SECURITY A. It is the Cardholder's responsibility to safeguard the Procurement Card and its related account number at all times. B. Cardholders should keep their Procurement Cards in a secure location at all times. C. Cardholders should not allow anyone else to use their Procurement Cards and/or Procurement Card account numbers. D. Cardholders should not write their Procurement Card account numbers where they be easily seen by others. XV. LOST, STOLEN OR DAMAGED PROCUREMENT CARD A. If a Procurement Card is lost, stolen or damaged, the Cardholder must notify the bank immediately at Representatives are available 24 hours a day to provide assistance. B. Cardholders must notify the Program Administrator if their cards are lost, stolen or damaged within 24 hours after reporting the incident to the bank. 13

14 C. After the above notification procedures have been completed, a new Procurement Card will be issued to the Cardholder by the Program Administrator. D. A Procurement Card that is found after it has been reported lost or stolen must be destroyed by cutting it in half. The same procedure applies if a card is damaged. Both card halves must be forwarded to the Program Administrator. XVI. CARDHOLDER ACCOUNT MAINTENANCE Whenever any of the information contained on a Cardholder's Enrollment Form changes, a Cardholder Account Maintenance Form must be completed and then signed by the administrator for the default account listed on the Cardholder's Enrollment Form. The completed Cardholder Account Maintenance Form (See Attachment D) is then to be forwarded to the Program Administrator. XVII. CARDHOLDER TRANSFER WITHIN THE UNIVERSITY Cardholders who transfer to a new position within the same department and require the use of a Procurement Card as part of their new duties, should continue to use the same card. Cardholders who no longer require a Procurement Card in their new position or transfer to a different department must cancel their card per the instructions in Section XIX) XVIII. CARDHOLDER SEPARATION FROM THE UNIVERSITY Prior to separation from the University, Cardholders must surrender their Procurement Cards and corresponding support documentation to the Card Administrator. If the Cardholder is the Card Administrator, the Procurement Card and support documentation must be surrendered to the 14

15 Cardholder's immediate supervisor. In either case, the card must be canceled as per instructions in Section XIX. XIX. PROCUREMENT CARD CANCELLATION The Program Administrator must be notified immediately when a Procurement Card is to be canceled. The card must be destroyed by cutting in half. Both card halves must be forwarded to the Program Administrator along with a complete Cardholder Account Maintenance Form. XX. ATTACHMENTS/FORMS ATTACHMENT A CARDHOLDER ENROLLMENT/AGREEMENT FORM ATTACHMENT B PROCUREMENT CARD TRANSACTION LOG ATTACHMENT C STATEMENT OF DISPUTED ITEM ATTACHMENT D PROCUREMENT CARD CHARGES/USAGE 15

16 ATTACHMENT A Application/Approval To access this form visit: THE UNIVERSITY OF HOUSTON PURCHASING CARD PROGRAM CARDHOLDER APPLICATION/APPROVAL FORM Check One: New Change (only complete fields to be changed) Delete/Close (last eight card digits) Cardholder Information (Please Print Information) Cardholder Name: Agency Name: UNIV OF HOUSTON Employee ID: Address Line: Social Security# XXX-XX- Address Line: City: State: Zip Code: Department s Mail Code: Phone Number: Reporting Hierarchy Level Numbers (Required Information) Level 1 Number Level 2 Level 3 Level 4 Cardholder Controls (Required unless specified) Credit Limit (CSL) Single Purchase Limit (SPL) Authorization Per Day Transactions Per Cycle MCC Group (Merchant Category Code Group) Cardholder Approvals Program Administrator Signature: Date Verification ID Number Approved By: Date Applicant: Please Complete form and forward to: Sharon Davis **** Bank Use Only Account Number Verification ID # Verified: Date: Intitials Program Administrator: Please fax completed form to: or submit application online. 16

17 ATTACHMENT B - Procurement Card Transaction Log To access this form visit: 17

18 ATTACHMENT C - Statement of Disputed Item To access this form visit: Commercial Card Statement of Disputed Item Instructions: Your company should first make good-faith efforts to settle a claim or dispute for purchases directly with the merchant. If assistance from Bank One is required, please complete this form, and mail or fax with required enclosures within 60 days from the billing close date to: Procurement Card Program Coordinator Attn: Sharon Davis UH-Purchasing Department 325 McElhinney Hall Houston, TX Phone: (713) Fax 713) Company Name: Account Number: Cardholder Name: This charge appeared on my statement: Billing close date: Transaction date: Reference Number: Merchant Name: Merchant Location: Posted Amount: Disputed Amount: ****Please check only ONE of the following****' Unauthorized Transaction I did not authorize, nor did I authorize anyone else to engage in this transaction. No goods or services represents by the above charge were received by me or anyone I authorized. The card was in my possession at the time of the transaction. Charge Amount Does Not Agree With Order Authorizing The Charge The amount entered on the sales slip was changed from $ to $. I have enclosed a copy of the unaltered sales slip. Merchandise or Services Not Received I have not received the merchandise or services represented by the above transaction. The expected date of delivery or services was. (On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Disputed Transaction I did engage in the above transaction, which I am now disputing. I have contacted the merchant, but I have been unable to return the merchandise and/or I have been unsuccessful in reaching an acceptable resolution with them. (On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Defective or Wrong Merchandise I returned the merchandise on (date) because it was: (please choose one): defective wrong size wrong color wrong quantity Recurring Charges After Cancellation On (date), I notified the above merchant to cancel our monthly/yearly agreement. Since then, my account has been charged time(s). (Please enclose a copy of the merchant's response to confirmation of your confirmation of your cancellation). Items Charged Already Paid by Other Means I already paid for the goods and/or services represented by the above charge by means other than my card. (We must have a copy of the front and back of the canceled check, money order, cash receipt, credit card statement, or other documentation as proof of purchase/payment. On your business letterhead, please describe your attempt to resolve this matter with the merchant, the date(s) you contacted them and their response). Credit Appears as a Charge The enclosed Credit Voucher appeared as a charge on my card account. Credit From Merchant Not Received I did not receive credit for the enclosed Credit Voucher within 30 calendar days from the date it was issued to me by the merchant shown above Hotel Reservation Canceled I did make a reservation with the above hotel, which I then canceled on (date) at (time). At that time, I asked for a cancellation number which is (Please check one if applies): I was not given a cancellation number I was not told at the time that I made the reservation that my account would be charged for a "No Show" Double or Multiple Charges My account has been doubled charged. The first charge appeared on my (date) billing statement. Cardholder's Name (Printed) Cardholders Signature Date Phone Number 18

19 ATTACHMENT D Purchasing Card Charges/Usage To access this form visit: THE UNIVERSITY OF HOUSTON PURCHASING CARD PROGRAM PURCHASING CARD CHARGES/USAGE As a cardholder for The University of Houston, I have agreed to comply with the terms and conditions of the Cardholder Purchasing Card Agreement and the Purchasing Card procedures. If at anytime my card is to be used by another employee of The University of Houston University for official business only, I will assure the employee has been properly instructed as to the usage, the usage (by another employee) is recorded on the transaction log, that all receipts and back up documentation is provided for the transaction log, and that the utmost security processes were implemented until the card is returned to my possession. I agree that usage of my card will strictly adhere to all applicable The University of Houston funding procedures. This signed, original form must be on file in the Purchasing Department before allowing usage by another employee. (Mail this form to the Purchasing Department, 325 McElhinney Hall,Houston, TX Cardholder Name (Print/type) Cardholder Signature Date Supervisor Name (Print/type) Supervisor Signature Date State law requires that you be informed of the following: (1) you are entitled to request to be informed about the information about yourself collected by use of this form (with a few exceptions as provided by law); (2) you are entitled to receive and review that information; and (3) you are entitled to have the information corrected at no charge to you. 19