Purchasing Card Refresher Training For Cardholders and Approvers Provided By Procurement Services
Introduction Purchasing Cards (P-Cards) are designed to provide a more efficient means of making routine purchases and payments by reducing paperwork, allowing more control and responsibility at the department level, and streamlining the purchasing cycle Issuance of a purchasing card is a privilege accorded to the cardholder to ease their administrative burdens and is not available to all employees
P-Card Basics P-Card and SmartSource Two ways to purchase: P-Card and Smart Source P-Card will not be used in Smart Source but will play a strategic role outside of Smart Source for: Travel and entertainment Suppliers who are not yet enabled as a hosted or punch-out catalog supplier within your current transaction limits Current Enabled Suppliers: Neta Scientific, B&H Photo, CDW-G, Dell, Fisher Scientific, GovConnection, Grainger, Graybar, Life Technologies, McKesson, McMaster-Carr, Perkin Elmer, Telrose Corp, Thomas Scientific, VWR International This is an initial list and additional suppliers will be enabled as time permits Purchases for these suppliers should not be made via P-Card
P-Card Basics Standard Transaction Limits Standard limits are $4,999 per transaction; $10,000 per month; and 12 transactions per day set at your department s discretion. Upon request the limit may be increased: Temporary Adjustments (for non-smart Source purchases such as travel) Request must be sent to SmartSource@drexel.edu indicating amount of increase, cost center, approval from someone with authority over the cost center and copies of quotes/invoices/bids as necessary Permanent Adjustments Submit a P-Card Change Form to SmartSource@drexel.edu
Using the P-Card Prohibited Items Purchases for enabled Smart Source catalog suppliers Personal charges, even with the intent of reimbursing the University Traveler s Checks, cash advances or cash withdrawals Gasoline (except for rental car or university owned vehicles) On campus purchases of any sort or for services that can be performed by another on-campus department Example: Drexel Copy Center, Facilities, IRT Webinars, Faculty Club Exceptions: University Book Store Any purchase that would require Facilities to deliver, install or engineer the space in which the item was going Example: Furniture, carpeting, electric power Alcoholic beverages
Using the P-Card Prohibited Items Any item that exceeds your transaction limits and/or budgets PaymentNet system and WebFinance are two independent systems PaymentNet is not aware of how much is actually available in your budget Purchases presenting a significant risk or exposure to liability for the University Example: Live animals, radioactive materials, controlled substances Services of sole proprietorships, individuals, or non-incorporated businesses Sponsorships and Donations Contract/agreement whereby the University is required to sign Cell phone, electronic devices and associated plans per the Cell Phone Policy Critical personnel devices and grant funded devices are charged to a central bill Home Internet Service
Using the P-Card Allowable Uses Dues, membership, licenses, and application fees Conference and seminar registration fees Airline, hotel, bus, rail, rental car reservations and meals for business travel Books, publications, periodicals, subscriptions, videos and audio recordings Interlibrary loans to external libraries Photo, art, shop and lab supplies Computer supplies and software NOTE: Software is limited to non-network applications Recurring Charges (e.g. subscriptions)
Using the P-Card Allowable Uses Requiring Additional Documentation and\or Approval Third Party Payment Providers Example: PayPal, Square, etc. Include detail of original supplier in your Paymentnet transaction notes Gifts and Gift Cards Purchases must be made in compliance with the Gift Policy. The business purpose of the gift must be documented in PaymentNet The Gift Card Authorization Form must be submitted with the monthly Transaction Allocation Report for the cycle in which the transaction occurred Marketing, Advertising and Promotional Items Any item bearing University designs, seals, trade names and symbols that have come to be associated with Drexel University may not be purchased without prior approval from the University Communications Office per the Marketing, Advertising and Promotional Materials Policy
P-Card Records and Bookkeeping Appropriate Receipts and Documentation A proper receipt is not simply a credit card receipt or charge slip. A proper receipt includes: Itemized description of the items purchased Date and amount of purchase Name of the merchant/vendor/supplier Method of payment Missing or Lost receipts Cardholder must attempt to retrieve a duplicate copy from the vendor If duplicate cannot be obtained and the transaction was reconciled to a general University fund, a missing receipt form may be completed (This form requires a signature from a Dean or Vice President) If the transaction was reconciled to a grant the cardholder may be held liable to reimburse the grant; contact your Grant Administrator for assistance
P-Card Records and Bookkeeping Examples of Receipt Acceptable Vendor Name Purchase Date Purchase Amount Itemized List of items Payment Method Sales Tax Note Cardholder should inform vendor that Drexel is sales tax exempt (PA & NJ). PA Tax exempt number is imprinted on the front of your P-Card. Not Acceptable A credit card receipt by itself only shows the total. It lacks sufficient detail about the nature of the purchase.
P-Card Records and Bookkeeping Record Retention All documentation must be kept in accordance to the Record Management Policy This documentation includes but is not limited to: In general: Monthly Report Paid invoices and/or receipts and missing receipt forms Additional bids and sole source letters Confirmations of temporary increases and/or exceptions Documentation for transactions paid through any non-grant related funds must be kept at Drexel for 7 years Documentation for transactions paid through a grant must be maintained permanently
Monthly Process Reconciliation and Reviews Monthly Accounting Cycle typically runs from the 21 st of the month to the 20 th of the next month with the exception of the days falling on a weekend or a holiday For your convenience We send out a monthly email on the first day of the new cycle with the deadlines for that cycle We post a Cycle schedule online & on the PaymentNet homepage If deadlines conflict with business travel, vacation or meetings, it is the Cardholder's responsibility to contact the Department Business Manager and/or the P-Card Office for guidance Online reconciliation A cardholder must review and reconcile every transaction in PaymentNet and ensure the: Correct cost center has been allocated Business purpose is clearly stated {Who, What, When, Where, Why} Detailed backup documentation (receipt, invoice, bids etc.) is retained Itemized invoices must be retained: example-hotel, restaurant
Monthly Process Transaction Allocation Report To generate your report, you will want to ensure the following have occurred: The cycle has ended-reconciliation and Report Due Dates All transactions have been reconciled Every transaction has a detailed transaction note indicating the business purpose of the purchase {Who, What, When, Where, Why} Reports submitted with missing transaction notes will be returned unprocessed Please Note: Reports are only submitted for cycles where there is activity
Monthly Process Transaction Allocation Report Submission Once approved, submit your Report to the P-Card Office one of the following ways: Preferred submission method: Scan and email to SmartSource@drexel.edu Electronic Reports must be in adobe PDF format When sending multiple reports, each report must be sent as an individual attachment Emails may contain multiple attachments Each attachment must be named as: Fax to 215-895-2877 Interoffice or mail to: Last Name First Initial Month Year.pdf Ex. John Smith February 2014 named as SMITHJFEB14.pdf Procurement Services 3201 Arch Street, Suite 400 Philadelphia, Pa 19104 Please Note: Do not forward copies of receipts unless requested by P-Card Office
Roles, Responsibilities, and Process Department Head/Administrator Responsibility Responsibility for financial control and stewardship of the purchasing card program rests with each department Every department must establish internal controls sufficient to regulate the department s purchasing card activities A department head/administrator is responsible for: Designating Approvers Setting appropriate transaction limits and card usage for each requested purchasing card Approving purchasing card applications Ensuring cardholders have duties commensurate with the established program requirements and spending limits Safeguarding University assets and preventing, detecting, and correcting errors and irregularities Ensuring the reliability of financial information and compliance with all university policies, procedures and timetables Maintaining appropriate records in a safe and secure location
Roles, Responsibilities, and Process Approver Responsibility An Approver is responsible for: Ensuring cardholders abide by the program s policies and procedures Reviewing all charges, receipts, transaction notes and supporting documentation billed to a cardholder s account to verify charges are appropriate and reconciled to the correct cost center Signing the Cardholder s Transaction Allocation Report Immediately call to report abuse or misuse to 215-895-2876 In case of cardholder transfer or termination, ensure the cancellation of purchasing card
Reconciliation and Reviews Approver Review-Suspicious P-Card Use During the review process, the Approver/Supervisor has a fiduciary responsibility to identify improper use of the P-Card. All employees share the responsibility for preventing, detecting, and reporting fraudulent and/or dishonest acts. The University has a responsibility to investigate allegations of improper P-Card activity. Any misuse of the P-Card may result in suspension or cancellation of P-Card privileges. Employees should promptly report any suspicious use of the P-Card to their supervisor, Procurement Services and/or to the University s compliance hotline: 1-866-358-1010
Roles, Responsibilities, and Process Cardholder Responsibility A Cardholder is responsible for: Abiding by all purchasing card policies and procedures Use of the P-Card is subject to review, audit, suspension, or cancellation Ensuring the security of the purchasing card and the account number P-Card may not be used by anyone other than the cardholder Completing reconciliation of all transactions in PaymentNet Preparing and submitting the monthly report with all required documentation for each purchase to approver for signature Maintaining monthly reports and all required documentation for each purchase according to the Record Retention Policy Identifying and resolving disputed transactions
Roles, Responsibilities, and Process Cardholder Responsibility-Notifications Promptly notify SmartSource@drexel.edu if you: Change departments (Will require a new card application) Take a leave of absence (Card will be temporarily suspended) End employment with the University (Card will be terminated) P-Card Administrators: Carolyn Dingle, P-Card Administrator, 215-895-1280 Kimberlee Smegal, P-Card & Compliance Manager, 215-895-6190 Immediately contact JPMorgan if you discover your P-Card is lost or stolen: Call JPMorgan Chase s 24-Hour Customer Service 800-270-7760 After you have contacted JPMorgan Chase, notify SmartSource@drexel.edu
Roles, Responsibilities, and Process Cardholder Responsibility-Security P-Cards should be treated with the same security as a personal credit card. Sign the back of your card as soon as you receive it Never give your card number over the phone unless you initiated the call Ensure the card is protected and kept in a secure location Only the cardholder listed on the face of the card is authorized to use it Take reasonable steps to ensure the supplier is legitimate; utilize preferred vendors when possible
Roles, Responsibilities, and Process Cardholder Responsibility-Merchandise Returns, Exchanges or Disputes If you receive merchandise that is not acceptable, i.e., incorrect, damaged, defective, etc., contact the vendor immediately to resolve the situation Disputes should be handled with the vendor whenever possible If a resolution cannot be obtained within a 2-3 week timeframe from the initial transaction date, you will want to dispute the transactions via the PaymentNet system advising the vendor of your action If merchandise is returned for credit, obtain a credit receipt from the vendor Refunds should never be in cash. Refunds should never be in the form of store gift cards. If merchandise is exchanged, reference the original transaction with any additional documentation supporting the exchange
Roles, Responsibilities, and Process Lost or Stolen Cards/Fraudulent Charges Lost or stolen cards must be immediately reported to JPMorgan, the cardholder s approver, and SmartSource@drexel.edu If you suspect your card has been compromised, it is imperative that you contact JPMorgan to close your card and have a new one reissued JPMorgan may place a temporary hold on your card if there appears to be suspicious activity Upon calling JPMorgan {Provide the last four digits of your Drexel ID#} If the charges are legitimate, the hold will be removed If the charges are fraudulent, the card will be closed and a new one reissued All charges, including fraudulent charges, must be reconciled completely with cost center and transaction notes
Roles, Responsibilities, and Process Summary Cardholder Ensures receipt of the materials purchased The Cardholder contacts the merchant promptly to resolve any discrepancies or damaged goods Assures there are itemized receipts and other required documentation for each transaction Reconciles all transactions with accounting codes and notes Generates Transaction Allocation report Attaches the supporting documentation to the P-Card Transaction Allocation Report and forwards to Approver Approver Verifies the itemized receipts match the transaction Verifies additional required documentation is complete, e.g., transaction notes, correct cost center, and compliance with all policy/procedures Signing Report and returns to cardholder Cardholder Forwards completed Transaction Allocation Report to smartsource@drexel.edu Maintains report and all supporting documentation according to the Record Retention Policy
Compliance Review Process General Information The P-Card office randomly reviews Cardholder s bookkeeping to ensure compliance with our policies There are two types of Compliance Reviews Individual Report Review Cardholder will receive an email requesting a scanned copy of the transaction allocation report for a particular cycle with all accompanying documentation Departmental Review Department Administrator will receive an email stating a date and time for a P-Card administrator review of cardholders bookkeeping within that department
Consequences for Non-Compliance Overview Cardholders are responsible for and accountable to the University for all purchases made with the purchasing card and they must adhere to all University and department policies regarding its use All purchasing card purchases should be for official University business only It is critical that required submissions and requests for information are submitted in a timely fashion. Failure to meet reasonable deadlines for submission of information, such as signed reports and requests for other documentation, will result in a single reminder notice being sent to the cardholder. This will afford the cardholder a total of 5 business days from such request to comply. If the requested information has not been received by the P-Card office within 5 business days from the request, the P-Card will be suspended until the required documents are received. Repeat offenders will be required to attend a training prior to activation of their privileges. Any employee who fails to use the purchasing card properly or abuses the use of the purchasing card shall be subject to cardholder penalties
Consequences for Non-Compliance Breaches of Policy The following Policy violations will lead to purchasing card suspension and/or termination: Intentionally splitting a purchase across multiple transactions or multiple cards to circumvent transaction limits Sharing the P-Card with someone else Purchasing prohibited items without getting pre-approved for an exception Not maintaining original receipts and other back-up documentation Lack of proper transaction notes in Paymentnet Failure to request sales tax refund for items that were covered by our blanket sales tax exemption Not adhering to departmental internal controls related to use of the P-Card Making intra-campus purchases Other breaches of P-Card policies
Consequences for Non-Compliance Breaches of Procedure The following procedural violations will lead to purchasing card suspension: Not meeting deadlines for Transaction Allocation Report submission Not resolving outstanding report issues Missing signatures Missing transaction notes Incorrect cycle date range Not satisfying requests for documentation within 5 business days Other breaches of P-Card procedures
Contact Information P-Card Email: SmartSource@drexel.edu Used for all P-Card related inquiries and issues such as: Temporary limit increases Transaction Allocation Report submission Cost Center additions or deletions P-Card Staff Carolyn Dingle, P-Card Administrator, 215-895-1280 Kimberlee Smegal, P-Card & Compliance Manager, 215-895-6190 Nicholas Borrelli, Director of Accounts Payable, 215-895-1212
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