TABLE OF CONTENTS I. PROGRAM OVERVIEW... 2 A. Purpose... 2 B. Administration... 2 II. OPERATIONAL PROCEDURES... 2 A. Cardholder Eligibility... 2 B. How to Obtain a Procard... 2 C. Procard Issuance... 3 D. Cardholder Responsibilities... 3 E. Departmental Responsibilities... 4 F. Purchasing and Contracts Office Responsibilities... 5 G. Business Office Responsibilities... 5 H. Prohibited Purchases... 5 I. Exceptions to Prohibited Purchases... 6 J. Foundation Procards... 6 K. Agency Procards... 7 L. Emergency Procards... 7 M. Exceptions... 7 III. ATTACHMENTS... 7 A. Attachment A Cardholder Agreement... 7 B. Attachment B Procard Activity Log... 7 C. Attachment C Procard Activity Log Instructions... 7 D. Attachment D Supporting Documentation Form... 7
I. PROGRAM OVERVIEW A. Purpose PROCARD USER S MANUAL Tennessee Tech s procurement card (procard) program enables the streamlining of the procurement and payment processes using its contracted vendor (currently US Bank) to manage use of the procards issued to properly approved University cardholders. B. Administration The Purchasing and Contracts Office and the Business Office co-administer the University s procard program. The Purchasing and Contracts Office is responsible for establishing new accounts, distributing cards to cardholders and making changes to existing accounts as needed. The Business Office assists departments with card payment issues, such as tax exemption requests, refunds, etc. and provides support to the Purchasing and Contracts Office for successful administration of the procard program. II. OPERATIONAL PROCEDURES A. Cardholder Eligibility Only permanent University employees are eligible to obtain a procard. B. How to Obtain a Procard 1. To request a procard, an employee must complete a Procard Request Form in Eagle Buy and submit it for appropriate approvals. 2. As part of the request form, the department shall specify the Banner Index and Account Code(s), the requested monthly credit limit, and any other special requests regarding use of the procard. 3. A request to establish or increase a cardholder s monthly credit limit amount above $7,500 must include written justification to support this limit and is subject to approval by the Associate Vice President of Business and Fiscal Affairs. The information provided should include a list of the cardholder s Banner index numbers, including any used for reallocation of charges, and a description of special circumstances which necessitate the higher limit. 4. Once approved, the Purchasing and Contracts Office will notify the prospective cardholder to register for a procard user training class. All prospective cardholders must complete the user training class and sign a Cardholder Agreement (Attachment A) before receiving a procard. 5. Once training is completed, the Purchasing and Contracts Office will request that US Bank issue the new card(s) and will distribute the card(s) to the cardholder. An authorized signature is required at the time of card pickup.
C. Procard Issuance 1. Procards are issued in the name of the cardholder. 2. Each procard is issued with an encoded Banner index and account code that serves as the default account for all charges, unless the authorized departmental representative reallocates a particular charge to a different index/account through US Bank s online account access portal. Departments/ cardholders must complete reallocations of charges by the deadline(s) established by the Business Office for downloading of charges to the Banner system. 3. The University s sales and use tax exemption number is typically printed on the face of the procard. 4. Procards have a monthly credit limit, which is designated by the department when the card is requested. Departments wishing to change a monthly credit limit, or to make any other changes to a procard account, must submit a Procard Maintenance Form through Eagle Buy. 5. University procards have an automatically set single transaction expenditure limit of $4,999. Charges exceeding the single transaction limit will be denied by the credit card company. Certain cards, such as group travel, Foundation, or Agency procards may not be subject to this restriction. 6. University procards have internal controls restricting their use according to Merchant Category Codes (MCC) as established by the credit card company. For example, the credit card company will deny a procard charge at a restaurant unless the University has approved an exception to the MCC restriction for the card through the US Bank system. D. Cardholder Responsibilities 1. The cardholder is responsible for the safekeeping of the card at all times. If a card is lost or stolen, of if a cardholder suspects fraudulent use of his/her card, the cardholder must immediately notify US Bank and contact the Purchasing and Contracts Office no later than the first business day following the incident. 2. Cardholders must make procard purchases in accordance with University policies and procedures, including, but not limited to, competitive bid and any special approval requirements, i.e. ITS, food, etc. Cardholders who make unauthorized or fraudulent purchases are subject to disciplinary action by the University. 3. Cardholders must maintain complete backup documentation (i.e. receipts, order confirmation, special approvals, etc.) to support each procard purchase and make the documentation available as needed to confirm compliance with University policies and procedures. Cardholders/departments should maintain, at a minimum, the information as contained in the Supporting Documentation Form (See Attachment D) for each procard transaction. This
form may be used to document procard purchases. 4. When placing an order, the cardholder must insure that a vendor does not charge sales tax. If sales tax is charged, it is the cardholder s or department s responsibility to obtain a refund/credit for such charge. The University is not responsible to pay taxes for which it is exempt, and such charges may be billed to the cardholder as a personal expense. 5. The cardholder is responsible for contacting US Bank or the merchant, as appropriate, regarding incorrect charges to his/her account. E. Departmental Responsibilities 1. Departments are responsible for verifying the appropriateness of purchases and ensuring the availability of funds in their departmental budgets for the purchases. 2. Departments (or cardholders) are responsible to confirm that purchases are being charged to the correct Banner Index and Account Code. This incudes viewing charges using the bank s online account access and making any necessary reallocations. The normal cutoff date for reallocations is the last day of each month. If the last day falls on a weekend or holiday, the cutoff date is the previous workday at 4:30 p.m. After the cutoff date, the Business Office will upload the charges into the University s accounting system. 3. If a purchase is reallocated to another department s index code (i.e., ITS purchases software for Student Affairs), a copy of the receipt for the charge is to be sent to that department for their records. The original receipt is to be maintained with the cardholder s account statement. 4. Departments are responsible for monitoring purchases and reconciling purchases each month upon receipt of the account statement(s) issued by US Bank and mailed directly to each cardholder. The reconciliation should be completed no later than the last day of the next month following the statement date. For example, for a billing period that ends on October 15 th, the reconciliation should be completed (including approval signatures) by November 30. The Procard Activity Log (Attachments B and C) may be used to document purchases and confirm reconciliation of charges. 5. The person completing the account reconciliation must sign each statement reconciliation verifying that the statement has been reconciled and that all supporting documentation is attached. In addition, the appropriate approving authority must also sign the reconciliation to indicate that the charges are appropriate. The appropriate approving authority for a cardholder is a person who has sufficient authority to be able to question a cardholder s purchases without fear of reprisal and who has a sufficient knowledge of the cardholder s activities to be able to intelligently question the reasonableness of this/her purchase; generally, this is the cardholder s supervisor.
6. Departments are responsible for maintaining sufficient documentation with the procard file to support each purchase, including but not limited to, any special approvals required for the purchase. 7. Departments shall provide copies of procard purchase documentation as requested by Grant Accounting for reimbursement of University expenses by a grantor. 8. Departments are responsible for notifying the Purchasing and Contracts Office of any employment changes that necessitate changes to procards. The Procard Maintenance Request form available in Eagle Buy should be used to request any changes to procards. 9. Departments must centrally maintain procard documentation in accordance with the requirements of the University s Policy on Retention and Disposition. 10. Upon request, departments must provide signed statements and all supporting documentation to external and internal auditors, the Business Office, and Purchasing and Contracts. F. Purchasing and Contracts Office Responsibilities 1. The Purchasing and Contracts Office will process requests for new procards to US Bank and make account changes via the US Bank online portal as requested by authorized University employees. 2. The Purchasing and Contracts Office will close accounts for cardholders whose University employment is terminated. 3. The Purchasing and Contracts Office will conduct random audits of departmental procard spend to ensure compliance with University policies and procedures. G. Business Office Responsibilities 1. The Business Office will ensure that monthly uploads for US Bank Access Online charges are entered into the Banner system. 2. The Business Offices makes one consolidated payment to US Bank from the master billing statement. All departmental accounts are then debited for each charge posted during the billing cycle. Only the charges actually posted by the credit card company during the billing cycle will be uploaded into Banner Finance for a particular month. Items ordered near the end of a billing cycle may be included on the next monthly account statement. 3. The Business Office will provide support to departments and the Purchasing and Contracts Office to ensure overall success of the procard program. H. Prohibited Purchases Unless otherwise noted in Section I. below, University procards shall not be used to purchase or pay for the following: 1. Items classified as University equipment
2. Purchases exceeding the competitive bid threshold 3. Cash advances 4. Gift cards 5. Travel expenses, with the exception of airfare and baggage fees purchased in advance of travel and registration fees for conferences/workshops 6. Meals at restaurants 7. Fuel 8. Accessories for University-owned cell or desk phones 9. Item(s) for personal use 10. TTU Marketplace purchases 11. Purchases where trade-ins are being used. (Trade-ins must be processed through the Purchasing and Contracts Office.) 12. Purchases requiring execution of a contract or agreement. (All contracts must be processed through the Purchasing and Contracts Office.) 13. Payments pursuant to a University purchase order should not be made with a procard. 14. Licensed motor vehicles 15. Internet domain names I. Exceptions to Prohibited Purchases 1. Although classified as capital expenditures, purchases of materials for additions to the University s library collection, i.e. books, catalogs, binding, audio-visual, and other general publications, may be made by properly authorized Library personnel using a University procard, in accordance with the Library s established purchasing procedures. 2. The Director of Residential Life may designate certain Residential Life cardholder(s) permission to use a University procard to purchase meals at restaurants as appropriate, for students living in University housing. 3. Learning Village employees may use a University procard to purchase meals at restaurants and pay student entertainment expenses in accordance with established guidelines for such activities. 4. The University may issue a group travel procard to Athletic teams and/or other groups that will permit purchases of allowable meals, hotel rooms, fuel, etc. while the group is in a state of travel, in accordance with University policies and procedures and other applicable guidelines, including, but not limited to those of the National Collegiate Athletic Association and the Ohio Valley Conference. Athletics may use their assigned group travel procard(s) for expenses for athletic recruits. J. Foundation Procards The restrictions specified in this manual are not designed to limit the use of procards for purchases by the TTU Foundation. Foundation funds are not University funds,
and purchases made using Foundation funds are subject to the Foundation s established policies and procedures. Foundation procards may not be used to purchase equipment. K. Agency Procards Agency funds are not University funds, and University purchasing policies and procedures do not apply to purchases made through agency funds. L. Emergency Procards The University maintains a small number of procards specially designated for use in the event that University operations are impeded by extraordinary circumstances to the extent that use of the cards is necessary to acquire goods and services for University operation. None of these cards are active, and cardholders may only activate cards in case of emergency conditions as noted above and upon approval by the President, Vice President for Planning and Finance or designee. These cards are maintained in secure locations by the cardholders. The emergency procards are assigned to the following departments: Purchasing and Contracts Facilities & Business Services Business Office M. Exceptions The Vice President for Planning and Finance or designee must approve any exceptions to this manual and may do so after determining the exception is in the University s best interest. III. ATTACHMENTS A. Attachment A Cardholder Agreement B. Attachment B Procard Activity Log C. Attachment C Procard Activity Log Instructions D. Attachment D Supporting Documentation Form
CARDHOLDER AGREEMENT FOR UNIVERSITY/FOUNDATION PROCARD Attachment A Please complete the following: DATE: NAME: Print Name as it will appear on the Procard The prospective Cardholder is to complete this agreement after completing the User s Training Session and after reading the Procard User s Manual. Cardholder is hereby authorized to make purchases and pay for such purchases using the Tennessee Technological University/Foundation procard as provided in the Procard User s Manual. Purchases may be made consistent with Cardholder s organizational responsibilities, including any grant restrictions, for legitimate business purchases. All purchases must be made in accordance with applicable University/Foundation policies and procedures and are subject to monetary limits as established by the appropriate approving authority and/or provisions of the Procard User s Manual. Cardholder please initial each statement. I understand that: I am responsible for the safeguarding and security of my procard; My procard purchases must comply with University/Foundation policies and procedures; My procard is not to be used for personal purchases, and I will reimburse any such charge to the University; The University/Foundation has the right to cancel my procard at any time; In the event I use the card in a fraudulent manner, the University may take appropriate disciplinary action, up to and including termination of my employment. In the event my employment is terminated or if I transfer my employment to another University department, I am no longer authorized to use my procard. Cardholder s Signature Department Date Training Completed Signature of Procard Trainer
PROCARD ACTIVITY LOG Attachment B Name: Department: Procard # (last 4 digits) Reconciled By: Approved By: Date: Date: Order Date Vendor/Contact/ Phone # Quantity/Description Charges (or Refunds) Index Account Code Date Merchandise Received Reconciled With Statement (*)
Attachment C ACTIVITY LOG PROCEDURES The Procard Activity Log is a tool that cardholders/departments may use to monitor procard purchases. The Procard Activity Log entries presented below are representative of the information that should be recorded. However, other forms of documentation with comparable information are acceptable and each department may determine its own method(s) of monitoring. A Procard Activity Log, Supporting Documentation Form (Attachment D), or similar documentation, is required when orders or credits are processed using a method where a receipt is not immediately available. In those cases, orders should be logged to detail quantity of items ordered and received, and amount charged for each item. This will ensure that the University will be charged appropriately and/or will receive proper credit amounts. Shown below is a sample activity log: Procard Activity Log Name: Department: Procard # Reconciled By: Approved By: (Last 4 digits) Date: Date: Order Date Vendor/Contact/ Phone # 8/11/17 Staples Business Advantage 282-8882 Quantity/ Description Charges (or Refunds) Banner Index Code/Account Code 3 Staplers $15.00 x-xxxxx 74510 8/12/17 Wal-Mart/ Pickup Film Processing $9.50 x-xxxxx 74510 8/13/17 PC Computing Computer Supply ($45.00) x-xxxxx (merchandise return) 74510 Date Received 8/13/17 8/15/17 8/15/17 Reconciled With Statement (*)
Attachment D SUPPORTING DOCUMENTATION FORM Procard User Name Dept. Account No. Procard Account No. (Last 4 digits) Date 1. Vendor Name and Address: 2. Vendor Telephone No.: 3. Vendor Contact Name: Quantity Item Description Extended Cost Shipping/ Delivery Cost Total Cost Date Received Explanation: Cardholder Signature Date