P-Card Training Office of Procurement Services

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1 P-Card Training Office of Procurement Services

2 Purpose of Training To ensure staff are knowledgeable and understand their responsibilities when using a university-issued P-Card and to provide an update on new or revised procedures.

3 Training Requirements Existing cardholders, coordinators, and approvers must be trained annually. New cardholders and coordinators must attend faceto-face training before a P-Card will be issued. New approvers have the option to complete training online or face-to-face.

4 WHAT S NEW?

5 P-Card Procedures Updates The default credit limits for newly-issued cards are now: Single-transaction credit limit - $500 Monthly expenditure limit - $2,500 Limits for current cardholders will not change The procedure to increase credit limits, temporarily or permanently, has been defined. *P-Card Procedures were updated in June, 2018.

6 P-Card Procedures Updates Expanded the Accounting and Reconciliation of Expenditures section to provide more detailed guidance. Restricted and non-allowable purchases are clarified. Small furniture purchases allowed on P-Card without prior approval. Low-cost technology cabling or connectivity-related cords and devices also allowed, without prior approval. Review the updated Technology Purchasing Procedures for further details. P-Card Employee Agreement updated. Simplified; easier-to-complete and read format.

7 INTRODUCING THE P-CARD

8 What is the P-Card? Visa credit card issued by US Bank. Alternative method for purchasing departmental goods and services. Streamlines the purchasing process. Issued in the cardholder s name. For official UA Little Rock purchases only.

9 What are its benefits? Flexibility in Ordering Able to obtain supplies, for allowable items, directly from vendor without a purchase order. Time Savings Streamlines the purchasing process. Vendors receive payment within 72 hours. Increased Vendor Selection Expands purchasing options by allowing purchases from vendors that do not accept purchase orders but take a credit card. Most vendors who accept Visa will welcome the P-Card.

10 Keeping the P-Card safe Cardholder is responsible for security of and transactions charged to the P-Card. Store the P-Card in a safe, secure location. It the P-Card is lost or stolen, immediately report the theft. U.S. Bank Direct supervisor P-Card administrator in Procurement Services

11 What is the credit limit? Each newly-issued P-Card has default credit limits. Single transaction credit limit (including shipping, freight, and taxes) of $500 Monthly expenditure credit limit of $2,500 Limits may be increased or decreased, with approval, to accurately reflect a department s spending level.

12 Requesting a credit limit increase Permanent increase (from what was initially established/approved at the time of application). Complete a new P-Card Employee Agreement Temporary increase requires written approval based on increase requested ( approval accepted). Between $501 - $5,000 Department Chair or Director Between $5,001 - $15,000 Dean, Assistant Vice Chancellor, or Assistant Provost $15,001 and above Associate Provost, Associate Vice Chancellor, or Vice Chancellor

13 APPROPRIATE USAGE

14 What are the basics? Used the same way as a regular credit card. The P-Card cannot be used to pay for travel expenses. Except registration fees Be familiar with the P-Card procedures. Safeguard university funds Spend funds ethically

15 Can the P-Card be shared? Sharing a P-Card is NOT allowed. Even within your own department. For any purchase, online or in person. Only the authorized cardholder may make purchases using the P-Card. The cardholder is responsible. Minimizes risk to the cardholder. Protects the university.

16 What can be purchased with a P-Card? Many items! Office supplies from a contracted vendor. Memberships, subscriptions, and renewals. Registration fees. General supplies, such as books, lab, and janitorial items. Items used for official university purposes.

17 Can purchases be split? Splitting purchases to avoid the single transaction limit or bid process is NOT allowed. Individual purchases to any merchant may not exceed the single transaction limit on the card, or $20,000, whichever is lower. Purchases exceeding the single limit on the card, or $20,000, whichever is lower, must be purchased using the requisition-to-purchase order process. Intentional splitting of a purchase to circumvent procurement policies and procedures will result in cancellation of the P-Card, in addition to any other disciplinary action, and may result in civil or criminal penalties.

18 RESTRICTED COMMODITIES

19 What are restricted commodities? These are items that may require additional action before they are approved for purchase. Mandatory state contract items Non-mandatory or cooperative contract items Promotional items Food, meals, and beverages Furniture Computers, laptops, tablets, and software

20 Contract Items Mandatory State Contract Items May not be purchased with P-Card unless from state contract vendor at or below state contract price. Ex., office supplies and paper products must be purchased as allowed by state contract. UA Little Rock Central Stores Government Supply Services (GSS) Goddess Products, Inc. Contact Procurement Services for list of state contract vendors willing to accept a P-Card. Non-Mandatory or Cooperative Contract Items May be purchased using the P-Card if purchasing from a contract vendor.

21 Promotional or novelty items Promotional or novelty items that require an approved UA Little Rock logo/brand May NOT be purchased with P-Card UNLESS prior approval received from Communications. Regardless of cost or method of procurement, all promotional or novelty item purchases must be processed with one of the following: Competitive quote bid Cooperative bid Formal bid See Procurement of Promotional Products

22 Food, meal, and beverages Food (grocery store), meals, and beverages may be allowed only with prior approval. Approval is rare. Special Meeting Form and/or Sodexo waiver may be required prior to authorization.

23 Furniture purchases on P-Card Small furniture purchases Allowed on the P-Card without prior approval. Ex., office chair, standing desk, bookshelf, filling cabinet, safe, etc. Large furniture purchases Follow normal requisition and purchase order process. Ensures state contracts are used and best price obtained. Ex., purchases that exceed bid limits or if an office is being outfitted.

24 Computers, laptops, and tablets Low-cost cabling or connectivity-related cords and devices may be purchased on the P-Card without pre-approval from Procurement and IT Services. P-Card use to purchase all other IT items must be preapproved by Procurement and IT Services. All other IT related purchases using other methods of payment (i.e., requisition) must be pre-approved by IT Services. See Technology Purchases Procedures

25 ADDITIONAL INFORMATION

26 Can cardholder sign terms and conditions? Some purchases may require accepted terms and conditions and an official UA Little Rock signature. Cardholders DO NOT have the authority to sign an agreement or contract as a condition of purchase. Immediately consult with Procurement Services if this occurs. UA Little Rock has an approval process in place when an official signature is required. Policy Signature Authority Delegation for University Financial Transactions and Documents.

27 Where can the purchase be shipped to? To prevent fraudulent activity, all items purchased with a P-Card must be delivered To an official UA Little Rock address. Verifiable off-site location due to a special project or grant.

28 Handling fraudulent charges What is a fraudulent charge? An unauthorized transaction(s) made with a lost, stolen, compromised or counterfeit card/card number. If fraudulent charges are identified Cardholder is responsible for contacting US Bank at and reporting fraudulent activity. The cardholder must communicate with US Bank to reissue a new card. Notify direct supervisor. Notify P-Card administrator in Procurement Services. *Important: Review transactions frequently to identify fraudulent charges as soon as possible.

29 Disputing a transaction Disputable transactions are merchant errors or errors in billing between the merchant and cardholder. Ex., multiple billing, billing wrong amount, billing without receiving merchandise, billing on a cancelled order. If a charge is disputable, notify the P-Card administrator in Procurement Services.

30 P-Card charge declined? If a transaction is declined, the cardholder should call the P- Card administrator for an explanation. Common reasons for declinations include: Monthly spending limit exceeded Restricted vendor or Merchant Category Code (MCC) Single transaction limit exceeded

31 ACCOUNTING AND RECONCILIATION

32 Accounting and reconciliation Reconcile Gather Supporting Documentation Reallocate Charges Prepare Activity and Transaction Detail Reports

33 SUPPORTING DOCUMENTATION

34 Supporting Documentation Gather supporting documentation for each P-Card purchase. Crucial Whether purchase is made in person, via telephone, fax, postal service, or online. Cannot provide documentation? Submit a notarized Missing Document Affidavit No receipt or Missing Document Affidavit? Purchase will be considered a personal expense. Cardholder will reimburse the university immediately. If not compliant, further disciplinary actions will be take.

35 Supporting Documentation What is considered valid documentation? Receipt and/or transaction slip from the merchant. Order form. Invoice showing credit card payment. Packing slip from the delivery annotated by the cardholder as ordered by, received by, paid by, and signature of the cardholder.

36 Supporting Documentation How much detail must be on the supporting documentation? All documentation must include the following information. Vendor name Date of the purchase Description and quantity of each item purchased Per item cost, if available from the merchant Total cost of the transaction Cardholder name and card number Handwrite any of these items on the receipt if it does not include them.

37 Supporting Documentation Prepare supporting documentation for submission. Must fit on an 8-1/2 x 11 sheet of paper. If smaller, then tape the receipt securely on all edges to an 8-1/2 x 11 sheet of paper. Tape should secure only the receipt s edges and never be placed over the documentation. The entire original or photocopied receipt must be visible.

38 REALLOCATE CHARGES

39 Reallocate Charges Cardholders should access their account online throughout the open cycle and for each transaction: Reallocate the charge to the most appropriate accounting code. Provide an explanation of why the item was purchased and how it will be used in the Comments box. List any and all transactions that are fixed assets for inventory purposes in the Internal Audit box. Step 1: Log into account Step 2: Click Transaction Management Step 3: Click Accounting Code of item to reallocate Step 4: Enter new FOAPAL Step 5: Click Save Allocations

40 Reallocate Charges Cardholders should access their account online throughout the open cycle and for each transaction: Reallocate the charge to the most appropriate accounting code. Provide an explanation of why the item was purchased and how it will be used in the Comments box. List any and all transactions that are fixed assets for inventory purposes in the Internal Audit box. Step 6: Click the Comments Tab Step 7: Explain why item was purchased and how it will be used. Step 8: List fixed assets for inventory purposes. Step 10: Click Back to Transaction List Step 9: Click Save Comments

41 PREPARE REPORTS

42 Reports At the end of each billing cycle, the cardholder must access the account online and print the Account Activity Report and Transaction Detail Report. Print the Account Activity Report Attach the Transaction Detail Report Attach all documentation Signatures verifying all transactions Cardholder Coordinator (if applicable) Approver Submit to Procurement Services no later than the deadline listed on the Credit Card Billing Cycle Timeline.

43 Reports: Printing Instructions At the end of each billing cycle, the cardholder must access the account online and print the Account Activity Report and Transaction Detail Report. To print the Account Activity Report Log in to US Bank Click Transaction Management Click View Previous Cycle under the Transaction List section Click Print Account Activity Print in Landscape orientation

44 Reports: Printing Instructions At the end of each billing cycle, the cardholder must access the account online and print the Account Activity Report and Transaction Detail Report. Print the Transaction Detail Report Log in to US Bank Click Reporting Select Financial Management under the Reporting section Select Transaction Detail under the Transaction Management section Under the Date section select Close Cycle Date Range Click the Enable Cycle Day box Enter billing cycle Start Date and End Date Scroll down to Additional Detail section Check Display Transaction Comments Check Display Allocation Detail Scroll down to Report Output and select PDF from the drop down menu Select NO under Break/Subtotal Level section Run Report Attach to the Account Activity Report

45 RECONCILE

46 Reconciliation What is reconciliation? Ensuring that two sets of records are in agreement. Cardholders/Coordinators/Approvers must verify that the Account Activity Report and documentation are in agreement. Procurement Services audits the Account Activity Report for compliance. Reconciliation is required. Transactions not reconciled will result in possible non-compliance notification. If requested documentation is not submitted within noted time frame, the P-Card will be suspended until submitted. Refer to the Compliance Process.

47 COMPLIANCE

48 Non-compliance and violations; what happens? Established process for notification of possible P-Card noncompliance and violations. Non-compliance and violations may result in one or more of the following: Verbal or written warning Suspension or cancellation of the P-Card Disciplinary action (including loss of employment) Civil or criminal penalties Examples of non-compliance or violations include split purchasing and unauthorized sharing of a P-Card.

49 NON-ALLOWABLE PURCHASES

50 What are non-allowable purchases? Items that cannot be purchased with a P-Card due to Existing state contracts Restrictions imposed by Constitutional Amendment 54 University policy Purchase of a non-allowable item using the P-Card will result in an immediate strike on the cardholder s status, per the Compliance Process.

51 What is the three strikes rule? ANY non-allowable item purchase will result in an immediate strike on the cardholder s status: First strike: Card will be shut down for 30 days Second strike: Card will be shut down for 60 days Third strike: Card will be shut down indefinitely; cardholder may not reapply for a university-issued P-Card

52 Non-Allowable Purchases (not a comprehensive list) Procurement Services has developed this list to make users aware of nonallowable items. The list does not include all non-allowable items and is subject to change. Printing Restricted by Constitutional Amendment 54 Contact UA Little Rock Printing Services Decorative items (for non-public areas) Faculty and staff offices and employee break areas are not considered public areas. Items for personal/staff use Ex., prescriptions, party and holiday decorations, small appliances, coffee, etc. Cash advances Fuel Excluding campus bulk fuel purchases

53 Non-Allowable Purchases (not a comprehensive list) Procurement Services has developed this list to make users aware of nonallowable items. The list does not include all non-allowable items and is subject to change. Travel expenses Any expenses related to travel, such as airfare, lodging, rental cars, etc. Exception: Registration fees Hazardous materials Alcoholic beverages Gifts, contributions, sponsorships, and pledges Gift cards Other No construction, remodeling, or capital equipment

54 IN CLOSING

55 Exceptions There may be cases where exceptions to the P-Card procedures may be granted. Submit requests to the P-Card administrator. Via In writing Include all supporting documentation Exception must be made prior to purchase.

56 To complete the P-Card Training Program, you must pass the assessment with a score of 80% or higher. Repeat until 80% obtained. Review the training materials as many times as necessary. Access the assessment Click on the P-Card Training link in the menu on the left. Click on the P-Card Training Assessment link in the dashboard. Assessment

57 Please evaluate this program! Once you have successfully completed this training, please take a few minutes to evaluate our program. Responses are anonymous and will help us improve this training program next year. Access the evaluation Click the P-Card Training link in the main menu to the left. Click the P-Card Training Program Evaluation link in the dashboard.

58 Questions or Assistance? Direct any questions, inquiries, or problems regarding P-Cards to the UA Little Rock P-Card administrator: Nancy Riethoff Office of Procurement Services

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