Henderson State University Procurement Card Program Guidelines and Procedures

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1 Henderson State University Procurement Card Program Guidelines and Procedures Welcome to the State of Arkansas / HSU Procurement Card (P-Card) Program. As an agency of the State of Arkansas, HSU is participating in this program designed to help better manage low-dollar supply purchases and bring many benefits to the University and our vendors. The P-card will facilitate the acquisition of lower dollar goods and services needed for conducting official University business. It is intended that the P-card be issued to select university fulltime employees to enhance the University and departmental effectiveness and economy of operations. Responsibility and accountability for P-card transactions will reside at the department level. Personal purchases are strictly forbidden and may result in disciplinary action. All university departments, as a condition of participation in the P-card program, shall abide by the terms of the procedures. The success of the P-card program and its continuing use depends on your participation and cooperation. Read and follow the program guidelines as specified herein.

2 What is a Procurement Card? The P-card is a special Visa credit card issued by the State of Arkansas through US Bank to be used for official business purchases. It is a fast, flexible purchasing tool that offers an alternative to the existing purchasing process. It provides an extremely efficient and effective method for purchasing supplies. Who is eligible for a card? Any employee of Henderson State University that is authorized by the department head and the appropriate Vice President will be eligible for a P-card. The issuance of a P-card to you represents the trust bestowed upon you by the University to protect its assets and integrity. You are the point of control to maintain appropriate spending activities to protect your departmental funds. The P-card will be issued in the name of the individual cardholder. A card application form will require some personal information from the prospective card holder, but this does not affect your personal credit in any way: the information is for security purposes only.

3 Benefits of using a P-card Time and monetary savings Consolidated billing Less need for small dollar purchase orders Internet ordering 24/7 purchases possible Ability to order on your own, at any time! Spending Limits EACH TRANSACTION -The maximum single transaction limit is $1,000 (including shipping costs and taxes). MONTHLY SPENDING- The maximum monthly expenditure limit is $1,000.

4 Making A Purchase Purchasing In Person The Cardholder takes the P- Card to the place of business and verifies that they will accept the Visa card. Phone Orders The Cardholder may telephone an order to a supplier. Internet Orders The Cardholder may use electronic mail to submit an order to a supplier. The cardholder ensures that all transaction documentations are provided to the department liaison for recording in the P-card transaction log. The Cardholder must inform all suppliers that the University is NOT exempt from Arkansas sales tax. Shipping and Receiving Instructions- It is strongly recommended that goods ordered via the P-Card be shipped directly to your departmental campus address via UPS, Federal Express, or other method suitable for the items purchased unless the package contains hazardous materials which may require special handling. DO NOT have items shipped to your home address.

5 General Policies and Procedures P-cards will be issued to an individual in the individuals name for official university business. The Cardholder must be a full-time employee of Henderson State University. P-cards are not transferable and are the sole responsibility of the cardholder. Each department will assign a person as the department liaison. The department liaison will be responsible for the basic administrative procedures of maintaining the P-card transaction log. The department head must sign off for all transactions each month. The department head and appropriate vice president must approve the request for an individual to obtain a P-card. The department head and vice president approval delegates transaction authority to the cardholder for necessary departmental purchases. Each department will be responsible to assure credit card charges are accurate on the monthly budget report.

6 Non-allowable Charges Alcoholic Beverages of Any Kind Food Purchases-Restaurants Travel Expenses of Any Kind(airfare, restaurants, hotels, etc.) Printing of Any Kind Cash Advances Gift certificates Fuel Personal Purchases SPLIT PURCHASES On-Campus Suppliers--Media Services, Central Stores & Physical Plant State contract items - Be conscious of buying items that are on a State Contract. The University is required to utilize the vendors of these contacts, so please, make yourself aware of these contracts. Additional Limitations Rebates - Any rebates received by the Cardholder as results of a P-Card transaction shall be deposited back into the appropriate departmental account and documentation reflecting the transaction shall be sent to the Purchasing Department. Promotional type items received as the result of a P-Card transaction shall become the property of the University and shall be utilized by the applicable university department.

7 Circumstances for Decline of Card *You have exceeded your designated transaction limit *You have exceeded your designated monthly limit. *You attempt to use the card for a blocked merchant category. Cardholder Responsibilities Complete training and sign cardholder agreement prior to issuance of a P-card. Keep your P-card and account number confidential. Use the P-card for University business ONLY. Enter a Requisition (DPS) prior to using the P-card. Requisition (DPS) must be in the amount that is estimated to be required for the semester/year. Understand non-allowable purchases. Do not split transactions to avoid maximum dollar limits. You MUST obtain receipts for EACH transaction and provide to the departmental person responsible for approving the charges in the DPS system. No cash refunds for returns. No exchanges. Understand that intentional misuse or abuse of the P- card will result in immediate revocation of charging privileges and possible disciplinary and legal action. Return your P-card to the PCA immediately upon termination of employment or if no longer using the P- card.

8 Lost or Stolen Cards Must be reported within 48 hours; please report immediately to US Bank at (24 hours a day, 365 days a year). Notify the HSU Procurement Card Administrator at the first opportunity during normal HSU business hours at P-Card Cycle Reconciliation All transactions must be approved within the designated monthly cycle and charges reallocated to the appropriate account number(s). All receipts must be received in the Purchasing office within five(5) days after the monthly cutoff date. NOTE: Regardless of whether an individual approves the charges, US Bank will be paid. Charges that have not been approved will be flagged and subject to audit review and possible suspension of privileges. Monthly Transaction Cycle Begins on the 15 th of each month and ends on the 14th of the next month All charges must be approved by the cut-off date and receipts forwarded within five (5) days after the monthly cut-off date.

9 4 Quick Ways to Lose Your P-card Privileges: 1. Not approving the charges in a timely manner. 2. Failure to forward your detailed receipts for charges and/or credits for processing. 3. Buying items that are not allowable within purchasing regulations & laws 4. Making a personal purchase Consequences of Splitting Purchase to Avoid Transaction Limits Card will be suspended for a minimum of 30 days User and approver will be notified by To reinstate privileges: Memo from user s approver giving adequate justification. If approved by the Purchasing Department, user must attend PCard training again Suspected Fraudulent Card Use Immediate suspension of card User and approver will be notified by Internal Audit will be notified immediately Possible criminal investigation and prosecution Termination of employment

10 Need Help? Contact the Procurement Card Administrator (PCA) for help: Name: Tim Jones Address: HSU Box 7894 Phone: Fax:

11 P-CARD NON ALLOWABLE LIST Many items available at merchants cannot be purchased with the P-card due to existing state contracts and restrictions imposed by Constitutional Amendment 54. The following list has been developed to make users aware of the restricted items. This list may not include all nonallowable items and is subject to change. If in doubt contact the HSU Purchasing Department. CONTRACT ITEMS; Air Conditioners Ammunition Capital Equipment Cell Phones Computers Hewlett Packard Printers Envelopes Letterhead and Envelopes Light Bulbs (in bulk over $100) Paper Towels / Tissue (in bulk over $100) Software (Microsoft or Adobe) Stock Continuous Blank Labels

12 Tires (auto, truck or bus) Vehicles (new or used) Xerographic and Print Shop paper AMENDMENT 54 ITEMS Printing PERSONAL ITEMS Alcoholic Beverages Bottled Water / Coffee Candy, Soft Drink, Food Decorative Items Flowers/Plants/Greeting Cards Narcotics, Prescriptions, Medication Party Holiday Decorations Plaques/Awards Small Appliances..coffee makers Supplies for party/celebrations