Purchasing CARD PROCEDURES

Transcription

1 Purchasing CARD PROCEDURES

2 I. INTRODUCTION The University f San Dieg Purchasing Card ( Pcard ) is designed t prvide an efficient way t prcess lw dllar rders f University business-related gds and services. Qualified departmental purchases within a predetermined purchase limit (f $5,000 r less) can be charged directly t the Pcard. All Pcard purchases are billed centrally t the University and paid t the card spnsr, US Bank. The Pcard prgram transfers purchasing authrity directly t the cardhlder. Rather than requiring a purchase requisitin and purchase rder, the Pcard enables cardhlders t quickly and cnveniently purchase lw dllar gds and services frm any supplier that accepts MasterCard. The Pcard can nly be used fr business expenses. This prgram prvides many benefits t departments and the University, fr example: Cardhlders can btain gds and services quickly and efficiently by dealing directly with suppliers; Cardhlders need nt use persnal funds fr purchases; Purchase requisitins r payment requests are nt required fr qualified Pcard purchases; Petty cash funds are nt necessary t cver Pcard purchases; The number f purchase rders, invices, payment requests, and checks prcessed are significantly reduced n a University-wide basis; and Faculty and staff can better fcus n value-added activities fr the University.

3 II. PURCHASING CARD PROGRAM A. Hw it wrks The Pcard simplifies the purchasing and payment prcess by permitting authrized faculty and staff t place rders directly with suppliers using a MasterCard Crprate Purchasing card. Cardhlders d nt receive supplier invices and they are nt required t prcess the payment at a later date. Instead, the University s Office f Accunts Payable receives a detailed summary billing each mnth fr all Pcard transactins and pays this bill directly. Cardhlders may access the detail f their Pcard charges n-line. Cardhlders are respnsible fr: verifying the accuracy f the charges; classifying the charges with the apprpriate POETS cde; keeping riginal dcumentatin supprting the purchase; and recrding the related business purpse f the expenditures. Each mnth there is activity n the Pcard the emplyee must fill ut a Pcard Transactin Lg with this infrmatin and send it alng with all backup dcumentatin t Office f Accunts Payable by the 25 th f the mnth. The cardhlder must als retain a cpy f all statements and backup dcumentatin fr a perid f 3 years fr audit and ther purpses. By using the Pcard, the cardhlder avids many f the administrative prcedures usually required with departmental purchases: purchase requisitins, purchase rders, invices, receiving reprts, and/r check requests. B. General guidelines Pcards shuld be used in cnjunctin with the University s prcurement plicies and prcedures. Fr further infrmatin abut these plicies, please cntact the Office f Accunts Payable at (619) C. Eligibility fr a Pcard Only full-time faculty and staff are eligible t receive a Pcard. Students (graduate r undergraduate) are nt eligible. It is nt necessary fr every eligible departmental emplyee t receive a Pcard typically, the individual receiving the card shuld be the individual making the majrity f departmental purchases. T btain a card, an individual must: Cmplete the Pcard Applicatin. The applicatin must be apprved by the applicant s supervisr and budget administratr; Persnally attend a Pcard Orientatin Sessin; and Sign a Purchasing Card Cardhlder Agreement. Since the Pcard is an institutinal prgram, apprval is nt cntingent n, nr will it impact, the cardhlder s persnal credit histry. The cardhlder is required t read these Purchasing Card Prcedures and adhere t all guidelines herein. Cardhlders must als have an active sandieg.edu address. The Pcard may nly be used by the individual whse name appears n the card. Cards and card numbers must be safeguarded against use by unauthrized individuals within r utside the University. Nte: The University Pcard is nt a benefit f emplyment. The University reserves the right t terminate individual Pcard privileges at any time, with r withut cause.

4 D. Applying fr a Pcard Eligible University faculty and staff wh wuld like t apply fr a Pcard shuld cmplete the Purchasing Card Applicatin ( E. Cardhlder respnsibilities Once apprved, the cardhlder will receive a Pcard assigned t him/her and the card will be assciated with a default POETS cde. The cardhlder is respnsible fr the prpriety f all charges made t the card and may nt assign a card r card number t an unauthrized persn. Nte: Since the Pcard is paid directly by the University, it is t be used nly fr University expenses. Use f the Pcard fr persnal r nn-business related expenses is strictly prhibited. 1. On-line charge review at Cardhlders can register and access n-line infrmatin abut their Pcard charges at This website prvides cardhlders the ability t mnitr card activity, review available spending limits, access the detail f certain purchases, and dispute unauthrized charges. These activities are available anytime and anywhere yu have an internet cnnectin. 2. Purchase dcumentatin Using the Pcard, cardhlders have the authrity t directly purchase specific gds and services n behalf f University units. Hwever, this privilege als carries the respnsibility t cnsistently maintain adequate dcumentatin fr all transactins n the card. The dcumentatin shuld include an riginal detailed receipt and any ther supplemental dcumentatin that supprts the fllwing: 1) the descriptin f gds r services purchased; 2) the supplier name; 3) the date f the transactin; 4) the price; 5) the quantity f the gds r services rdered; 6) the attestatin f the receipt f the gds r services; and 7) the University business purpse f the charge. On-line receipts are acceptable prvided they reflect the methd and prf f payment in additin t the abve requirements. Sme suppliers may nt prvide itemized detail (descriptins, quantities, unit prices) n their sales receipts. In such cases the cardhlder must btain dcumentatin f this detail thrugh rder frms and/r packing slips. Again, this itemized dcumentatin shuld include descriptins, quantities and, if pssible, unit prices. Third-party verificatin dcuments (see examples belw) shuld be retained and stred with the backup dcumentatin. Examples f apprpriate third-party verificatin dcuments are: Detailed sales receipts; Cnfirming rder frms r applicatins; Service reprts when service is prvided by a supplier; and/r Detailed packing slips. Cmplete, riginal dcumentatin shuld be included cpies are generally nt acceptable. Hwever, shuld a cpy be the nly dcumentatin available, this fact must be dcumented and apprved by the cardhlder s supervisr. If the riginal dcumentatin r cpy is nt available, cardhlders must cmplete a Missing Receipt Declaratin. Due t IRS regulatins regarding the substantiatin f business expenses, Missing Receipt Declaratins shuld be used nly n rare ccasins.

5 3. Mnthly recnciliatin Each mnth, all Pcard hlders will receive a statement directly frm US Bank reflecting all charges fr his/her card fr that billing cycle. Cardhlders are required t recncile their Pcard MasterCard statement t their verificatin dcuments each mnth using the fllwing prcedures: a. Match Pcard mnthly statement charges t verificatin dcuments Cardhlders will receive a mnthly Pcard accunt statement by the end f each mnth. Each purchase listed n the statement must be supprted by the applicable verificatin dcuments t ensure all charges are apprpriate. Cmplete a Missing Receipt Declaratin fr any missing receipts. Again, dcumentatin must supprt the business purpse f the transactins. If the business purpse may nt be easily determined frm the verificatin dcuments, a brief written explanatin must be manually written n the verificatin dcuments. b. Cmplete the Pcard recnciliatin The cardhlder must review and recncile the mnthly statement using the Pcard Transactin Lg. The transactin lg, including the mnthly statement, verificatin dcuments, and cmpleted recnciliatin, must be submitted t the cardhlder s supervisr fr review and apprval prmptly after receiving the statement and recnciling it. c. Submit Transactin Lg, Statement & Backup Dcumentatin All POETS cded Pcard Transactin Lgs must be apprved by the supervisr and submitted t Office f Accunts Payable by the 25 th f each mnth (i.e. January recnciliatin due by February 25 th ). Pcard Activity and Dcumentatin are subject t audit by the University Auditr r the Office f Accunts Payable at anytime. d. Misuse f Pcard privileges The Pcard is t be used fr business purpses nly; persnal charges f any kind are strictly prhibited. Imprper use f the Pcard may result in disciplinary actin up t and including terminatin f emplyment. In the event f imprper charges t the Pcard, the University will seek restitutin frm the cardhlder. Cardhlders may be required t reimburse the University fr any amunts spent using the Pcard which vilate the prvisins f the Purchasing Card Prcedures. Repayment may include deductins frm wages r ther amunts payable t the cardhlder r may require ther steps necessary t permit the University t cllect any amunts wed by the cardhlder. Cardhlders cannt nt request reimbursement fr transactins placed n Pcards. 4. Lst r stlen cards Lst r stlen Pcards must be reprted immediately. The University may be liable fr Pcard transactins until a card is reprted lst r stlen, s time is f the essence. In such cases, cardhlders must prmptly phne US Bank (800) If cardhlders are utside f the United States, call (701) (representatives are available 24 hurs a day, 7 days a week). Please als reprt yur lst r stlen Pcard t the Pcard Administratr at (619) r ap@sandieg.edu. Emplyees may be required t sign an updated Purchasing Card Cardhlder Agreement at the time they are issued a new card. Nte: It is the respnsibility f the cardhlder, budget administratr, and/r Supervisr t advise the Crprate Card Administratr f any/all leave-f-absence situatins. The card must be suspended frm use while the cardhlder is ut f the ffice during a leave-f-absence.

6 F. Respnsibilities f supervisr Althugh the cardhlder has purchase authrity n the assigned POETS cde, the supervisr retains respnsibility ver the budgeted funds. In rder t ensure prper versight ver University funds, supervisrs f Pcard hlders must: 1. Review and apprve purchase dcumentatin As discussed abve, the cardhlder s supervisr must review and apprve the mnthly recnciliatin and supprting purchase dcumentatin fr each Pcard. This mnthly review shuld include the fllwing prcedures: Review and sign the mnthly Pcard Transactin Lg within ne week f receipt frm cardhlder. Prmptly investigate any unexplained, unusual, r significant items; Ensure the mnthly statement and all apprpriate supprting dcumentatin (as discussed abve) is included ; and Ensure cmpleted Pcard Transactin Lgs are bth submitted t Office f Accunts Payable by the 25 th f the mnth while als ensuring that a cpy is prperly filed in the department and maintained n file fr three cmplete fiscal years (r lnger, if required by a federal grant r cntract). 2. Reprt terminatin f cardhlders Upn the ntice f terminatin f a Pcard-hlding emplyee, the supervisr must: Immediately ntify the Pcard Administratr f the ntice f terminatin; Obtain the Pcard and return it t the Pcard Administratr; and Secure Pcard Transactin Lgs frm terminated emplyee t ensure prper recrd retentin. Nte: It is the respnsibility f the cardhlder, budget administratr, and/r Supervisr t advise the Crprate Card Administratr f any/all leave-f-absence situatins. The card must be suspended frm use while the cardhlder is ut f the ffice during a leave-f-absence. G. Predetermined transactin limitatins In rder t prevent misuse f the Pcard, each card has transactin limits. These cntrls generally include: A single purchase limit f $5,000. Multiple charges and/r splitting a transactin t purchase items exceeding the purchase limit are strictly prhibited and may result in lss f card privileges; Mnthly spending limit f $10,000; Restricted merchant cdes and ther restricted transactins. (See Restricted Transactins belw). When a supplier prcesses a transactin, the transactin is apprved r declined based n the abve criteria assciated with that Pcard. The University Pcard is intended t be a flexible tl fr the departmental prcurement f lw dllar gds and services. If a Pcard s mnthly spending limit cnstrains its effectiveness fr departmental use, please have the supervisr r budget administratr cntact the Pcard Administratr.

7 H. Allwable transactins Except fr certain restricted transactins (see fllwing sectin), the Pcard may be used fr all departmental purchases, within the card s limits. Typical uses f the card include the purchase f ffice supplies, and lw dllar services and ffice equipment. USD has entered int an agreement whereby Office Dept is the University s preferred supplier fr ffice supplies. University departments may rder supplies frm Office Dept ver the Internet with a Pcard and have the rder delivered t the department usually by the next business day. I. Restricted transactins In general, the Pcard may nt be used fr the fllwing purchases: Alchlic beverages Animals and animal-related purchases Cash advances/travelers checks Catering services (where a signed cntract is required) Cmputers and printers Cnference and seminar registratin fees Furniture and furnishings Gasline Gift certificates (except fr nminal amunts within the University s gift plicy) Multiple charges r split purchases that enable transactins in excess f $5,000 t be prcessed by a vendr Individually purchased cell phnes Office snacks, decratins and plants Persnal expenses, gds, and services Prescriptin drugs and cntrlled substances Printing Radiactive and hazardus materials/chemicals Stre memberships Telecmmunicatins services, including cell phnes and related mnthly charges Travel and entertainment, including but nt limited t Airlines Aut rentals Htels/meeting rms Meals/restaurants Trains Theaters, clubs Weapns and ammunitin Where apprpriate, restricted items shuld be purchased in accrdance with established purchasing plicies and prcedures (i.e., purchase rders must be issued and disbursements must be prcessed thrugh the Office f Accunts Payable). Questins regarding restricted transactins shuld be directed t the Pcard Administratr.

8 J. Grant and cntract expenditures Grant and cntract expenditures can be made with the Pcard, prvided thse expenditures meet the qualificatins fr allwable Pcard purchases. Such purchases are als limited t thse csts that can be identified with a particular spnsred prject and meet the specified criteria fr direct csts: Reasnable and necessary fr the perfrmance f the prject; Allcable t the prject; Cnsistently treated in like circumstances as a direct charge t a prject; and Allwable under OMB CIRCULAR A-21 ( ml). Grant and cntract expenditures must als cmply with University plicies. Only Pcard purchases that cmply with award guidelines can be charged t a grant r cntract. When an expenditure is nt allcable t the grant r cntract, such expenditure shuld be charged t an unrestricted surce. K. Placing an rder The Pcard may be used t purchase gds r services via phne, mail, the Internet, r at the supplier s place f business. When placing an rder, please: Prvide yur name as listed n the Pcard; Identify yurself as a USD emplyee; Identify that yu are making a crprate Pcard purchase, and that the University directly pays fr the purchase; Prvide the Pcard number and expiratin date; and If applicable, prvide yur campus delivery address. Occasinally, smene ther than the cardhlder may pick up an rder. If the supplier asks this individual t sign the credit card receipt, he/she shuld sign and write received by n the receipt. L. Use Tax M. Disputing a transactin Definitin: A use tax is levied in the United States upn therwise tax free tangible prperty by a resident f the assessing state fr use, strage r cnsumptin f gds in that state, regardless f where the purchase tk place. Typical purchases that require payment f use tax include thse dne while traveling (fr things carried r sent hme), thrugh mail rder, r purchases via telephne r internet. Therefre when making purchases as described abve in a state ther than Califrnia the cardhlder must als place the use tax amunt n the transactin lg and the department will be charged fr the tax n that item even if the invice des nt include such tax. USD is respnsible fr paying the use tax n all items purchased in such a manner as described abve. The cardhlder is respnsible fr transactins charged t his/her Pcard. Therefre, the cardhlder must ensure receipt f gds and services and reslve any delivery prblems, discrepancies, r damaged gds with the supplier. Returns shuld be made directly t the supplier accrding t supplier requirements. The cardhlder is respnsible fr ensuring that prper credit is psted fr any returned items.

9 If the cardhlder encunters errneus charges, disputed items, unprcessed returns (credits), etc. n their Pcard, it is the cardhlder s respnsibility t reslve the prblem with the supplier. If the cardhlder is unable t reach agreement with the supplier, they shuld cntact US Bank at (800) and describe the nature f the prblem, the date, and amunt f the transactin. US Bank will wrk with the supplier t help reslve the dispute. Please nte that suppliers are nt permitted t bill yur Pcard fr purchases until the related items have been shipped. N. Pcard audits The University Auditr r the Office f Accunts Payable will cnduct regular audits f Pcard statements t ensure cardhlders and their respective departments adhere t the Purchasing Card Prcedures. Exceptins nted during these audits will be cmmunicated t the cardhlder; the cardhlder s supervisr; the Pcard Administratr; and ther University persnnel, as apprpriate, up t and including the Audit Sub- Cmmittee f the Bard f Trustees. These audits will assess adherence t University plicies and prcedures and will specifically examine whether: Pcards are used nly by authrized cardhlders fr allwed University expenses, and are nt used fr inapprpriate expenses Pcards are nt used fr splitting a transactin t purchase items exceeding designated purchase limits; Dcumentatin fr all charges is apprpriate and cmplete especially the dcumentatin f a business purpse; Charges are directed t apprpriate Oracle POETS cdes; Accunt statements are recnciled in a timely manner; Accunt statements are reviewed and apprved in a timely manner; and Dcumentatin is apprpriately retained. Failure t adhere t University plicies and prcedures may result in disciplinary measures including suspensin r terminatin f Pcard privileges, suspensin r terminatin f emplyment, and/r legal actin in accrdance with the terms and cnditins f the Purchasing Card Cardhlder Agreement. O. Canceling Pcards T cancel a Pcard, the cardhlder r supervisr shuld cntact the Pcard Administratr. If utside regular business hurs, please phne US Bank at (800) (representatives are available 24 hurs a day, 7 days a week). Nte: It is the respnsibility f the cardhlder, budget administratr, and/r Supervisr t advise the Crprate Card Administratr f any/all leave-f-absence situatins. The card must be suspended frm use while the cardhlder is ut f the ffice during a leave-f-absence.

10 UNIVERSITY OF SAN DIEGO PURCHASING CARD CARDHOLDER AGREEMENT I hereby acknwledge receipt f a University f San Dieg Purchasing Card. As a cardhlder, I understand and agree that use f the card is subject t the terms and cnditins f this Agreement and the prvisins f the Purchasing Card Prcedures ( Prcedures ), and as thse Prcedures may be subsequently revised. 1. I am being entrusted with a purchasing credit card and will be making financial cmmitments n behalf f the University f San Dieg ( University ). I will strive t btain the best value fr the University when using this card. 2. I acknwledge receipt f the Prcedures and cnfirm that I have read them thrughly and will cmply with their terms and requirements. I understand that my use f the card is cntingent upn my cmpliance with the terms f the Prcedures, which may be changed frm time-t-time at the sle discretin f the University. 3. I acknwledge that it is my respnsibility t be familiar and t cmply with all applicable prcedures at the University that gvern my use f the card. 4. I understand and agree that my use f the card is nt a benefit f emplyment, and my permissin t use the card can be rescinded r cancelled by the University at any time and fr any reasn in the University s sle and cmplete discretin. 5. If the University terminates my right t use this card, I agree t return the card t the University immediately upn request r upn ntice f terminatin f my emplyment (including retirement). Shuld I change departments, I must return the card and apply fr a new card. If my card is lst r stlen, I must ntify US Bank immediately and the Pcard Administratr as sn as pssible. 6. I understand the University is liable t US Bank fr all charges placed n my card, therefre, I will nly use this card fr apprved and qualified purchases in accrdance with current plicies and the Prcedures. I will nt use the card fr persnal purchases either fr myself r fr thers. 7. I understand that misuse f my card, including using the card fr nn-business transactins r failing t adhere t University plicies r the Prcedures, may result in disciplinary measures including suspensin r terminatin f card privileges, suspensin r terminatin f my emplyment, and/r legal actin in accrdance with the terms and cnditins f this agreement. 8. Shuld I fail t use the card prperly, I understand that I may be required t reimburse the University fr purchases in vilatin f University plicies r the Prcedures. I acknwledge and agree that t the extent permitted by applicable law, the University, during the curse f my emplyment, may withhld frm my wages r salary any amunts wed fr failing t reimburse the University. I further acknwledge and agree that t the extent permitted by applicable law, if my emplyment is terminated fr any reasn, the University may withhld frm my final wages r salary any amunts wed fr failing t reimburse the University. If the University engages a cllectin agency r initiates legal prceedings t recver amunts wed by me under this Agreement, I agree t pay all fees incurred by the University in such activities r prceedings. 9. I understand that I am respnsible fr prtecting this card that is issued in my name and will nt allw any unauthrized peple, within r utside the University, t use it. 10. I acknwledge that I am required t cnsistently maintain the specific dcumentatin utlined in the Prcedures fr all transactins placed n my card. I further acknwledge that I am required t cnsistently and prmptly cmplete the mnthly recnciliatin prcess as utlined in the Prcedures, including matching my mnthly card statement t the dcumentatin; lgging my transactins n the transactin lg; submitting the statement and dcumentatin t my supervisr fr written apprval within tw weeks f mnth end; and retaining the envelpes and dcumentatin fr three cmplete fiscal years, unless a lnger retentin perid is specified by a grant r cntract. 11. I understand the University will audit the use f this card and, accrdingly, will audit my cmpliance t the Prcedures. I agree t cmply with auditr requests and prmptly furnish infrmatin t the auditr as required. 12. I understand that I cannt use the card fr the purchase f cmputers; printers; furniture and furnishings; travel and entertainment; and any ther restricted transactins listed in the Prcedures. I understand that multiple charges r splitting purchases t enable transactins ver $5,000 t be prcessed n my card is strictly prhibited. I further understand that I am nt entitled t any reimbursement fr transactins placed n my card. Cardhlder Signature: Date: Printed Name: