Purchasing Card (P-Card) Policy and Procedure Frequently Asked Questions

Transcription

1 Purchasing Card (P-Card) Policy and Procedure Frequently Asked Questions 1. Q: What is a Purchasing Card and why would I want a card? A: A Purchasing Card is basically a credit card that can be used to purchase goods or services (for University business purposes only) without having to issue a purchase order. 2. Q: Who is eligible to obtain a Purchasing Card? A: Any one responsible for completing routine purchase requisitions, petty cash transactions, or miscellaneous payment requests for small dollar purchases is eligible to obtain a Purchasing Card. Your department head must approve all requests for cards. Each department is responsible for determining who will manage and administer its card(s). 3. Q: Is there a limit to the number of cards that a department can have? A: No, cards are issued to individuals, a department can have as many cards as are necessary. 4. Q: How do I get a Purchasing Card? A: The Purchasing Card application is now part of the financial systems Access Request Form and is available on the WEB ( Return the completed application, including the written approval of the Department Head, to the Purchasing Card Administrator for processing. All applicants must attend a training session prior to the card's issuance. At the time of card issue, cardholders are required to sign a "Cardholder Agreement" form. 5. Q: What training sessions are offered? A: Bi-weekly training sessions are held to assist both cardholders and approvers in understanding both their responsibilities and how the Purchasing Card system works. To reserve a spot in an upcoming training session, please register on the WEB ( If you would prefer a one-onone training session, please let the Purchasing Card Administrator know. 6. Q: Who handles changes to the Purchasing Card? A: The Purchasing Card Administrator handles all changes or deletions to a Purchasing Card. 7. Q: Who is the Purchasing Card Administrator? A: The Purchasing Card Administrator (Nirva Hacherian) is located in the Financial Services department - Room 1022, Jorgenson Hall. She is the individual in the Purchasing Payment unit who is responsible for coordinating and monitoring all activities related to Ryerson s Purchasing Card Program. Contact by telephone (416) Extension 4107 or by (n2hacher@ryerson.ca).

2 8. Q: What limitations are placed on the card? A: Each card is electronically coded with authorization instructions. These instructions include, but are not limited to: A maximum per transaction limit of $5000, including shipping and delivery costs and taxes (decided on a card-by-card basis); A maximum monthly limit of $25,000 (decided on a card-by-card basis); Cash Advance blocking; Merchant Category blocking Suppliers are required to request the card issuing company's authorization for all Purchasing Card transactions. Purchases not meeting the limitations are automatically declined. 9. Q: What merchants are blocked on the card? A: The following merchants are blocked on the card: Personal purchases Travel and business entertainment (including restaurants, hotels, airlines) Car rentals, car washes and gasoline Alcoholic beverages Gift certificates 10. Q: What if I am declined authorization? A: If you are declined authorization, it may be because a transaction exceeds a card's limit (single transaction or monthly) or the merchant is blocked on the card. The cardholder should contact the Purchasing Card Administrator (telephone (416) Extension 4107 or n2hacher@ryerson.ca) to determine why the transaction was rejected. 11. Q: Can the Purchasing Card be used for telephone purchases? A: Yes, but cardholders should exercise caution when giving out a Purchasing Card number over the telephone. When placing orders by telephone, cardholders should only conduct business with a reputable supplier familiar to either the requisitioning department or the Purchasing and Payment unit. Following these simple tips helps to reduce the risk of fraud and other potential problems. 12. Q: For telephone purchases, is there anything that I must remember? A: The cardholder is responsible for instructing the supplier to provide a detailed receipt listing all goods and/or services, pricing, taxes and any shipping or delivery charges. The supplier should also be instructed NOT to send an invoice to Purchasing & Payment. 13. Q: Can the Purchasing Card be used to purchase good and services over the Internet? A: Using the Purchasing Card over the Internet is allowed. However we suggest caution and dealing with organization you know because it is difficult to determine whether the organization receiving your card information is reputable and transmissions are secure.

3 14. Q: For Internet purchases, is there anything that I must remember? A: Purchases over the Internet may require a Billing Address. If so, please use the following: 350 Victoria Street Toronto, ON M5B 2K3 (416) Q: Do I pay tax? A: YES, if the goods or services being acquired attract tax, you must pay it. Taxexempt purchases can only be acquired by completing a purchase order. GST on goods shipped into Canada is generally assessed by our customs broker when the goods clear custom however all purchases made outside of Ontario must be selfassessed by the Purchasing Card Administrator for Provincial Sales Tax (PST). All tax-exempt purchases acquired on a Purchasing Card will be assessed PST by the vendor. Submit your rebate requests with the monthly cardholder statement and the Purchasing Card Administrator will submit the rebate for the exempt purchases. 16. Q: What if my shipment is late? A: If after a reasonable period of time, the service is not supplied or the goods ordered do not arrive, contact the supplier to verify the date of shipment and means of delivery (i.e. Canada Post, FedEx, UPS, etc.). If the supplier is adamant that the goods/services in question was delivered, request a copy of "proof of delivery". If the proof of delivery cannot be provided, request that a credit be issued to your Purchasing Card and a copy of the credit provided to you. 17. Q: How does the supplier get paid? A: The card issuing company through the electronic banking network pays the supplier. Generally, the supplier is paid in two to three days. The card issuer will subsequently bill the university for the charges incurred by a cardholder on their Purchasing Card. 18. Q: Who pays the Purchasing Card bill? A: Each month, the card issuing company (currently Bank of Montreal (BMO)) issues to the University a single invoice that combines the charge activity, during the billing period, of all of the Purchasing Cards. Based on data feeds from BMO, Financial Services debits the appropriate department's account to pay for their purchases and credits a Purchasing Card clearing account. The BMO invoice is paid from the clearing account at the end of the payment period. For purposes of control, checks and balances, cardholders are responsible for reviewing their individual monthly statement of account(s) (see instructions below) for accuracy.

4 19. Q: What are my responsibilities as a cardholder? A: The following are your main responsibilities: Approve all your transactions on BMO Details Online by the 20 th of every month Send your report with all original receipts attached, to the Purchasing Card administrator by the 10 th of the following month Protect the card at all times, to prevent it s unauthorized use 20. Q: What do I do with the receipts? A: RETAIN ALL ORIGINAL RECEIPTS. Without them, cardholders are unable to reconcile the monthly Cardholder Account Statement Report. After reviewing and reconciling their account, Cardholders must remit the receipts with their monthly statements to the Purchasing Card Administrator. 21. Q: How do I reconcile my monthly statement? A: With each billing period, the card issuing company sends Ryerson an electronic version of a statement of activity for all cardholders, which is then e- mailed to all cardholders. The statement details each transaction (supplier, date of purchase, items purchase and amount of purchase) and the cardholder needs to match the items listed on that statement with those on the original receipts retained. Cardholders have the option of running the Custom Cardholder Statement Report from BMO Details Online. Receipts are matched to either of these transaction reports. The report, with attached receipts should be submitted to the Purchasing Card Administrator in Financial Services. NOTE: The Purchasing and Payment unit pays the card issuing company according to the statement. Discrepancies are handled after payment with credits and debits issued in the next billing cycle. Use of the card is subject to review by the Purchasing Card Administrator and Internal Audit. 22. Q: What if I've lost a receipt? A: A detailed receipt is VERY important as it serves as your proof of purchase. If a receipt is lost or misplaced, cardholders are encouraged to contact the supplier to obtain a duplicate copy. If that proves to be impossible, cardholders must complete the Supplemental Receipt Form form ( signed by the approver, and forward it along with your Custom Cardholder Statement Report to the Purchasing Card Administrator. 23. Q: What do I do with all the records I have? A: Monthly, Cardholders must forward the Custom Cardholder Statement Report and receipts to the Purchasing and Payment unit for safekeeping: Purchasing Card Administrator, Purchasing & Payment unit: Financial Services, YDI 905.

5 24. Q: Are my purchases reviewed and checked? A: Yes, the Purchasing Card is University property and is to be used for businessrelated purposes only. A cardholder s supervisor, manager or Chair may monitor card activity through the BMO Details Online either at the time of purchase or reconciliation. As well, all Purchasing Card accounts are subject to random audits by the Purchasing and Payment unit and/or Internal Audit. A number of checks and balances exist to ensure proper use of the Purchasing Card and compliance with established policy and procedure. For example, as part of the monthly reconciliation process, cardholders are required to submit the monthly statements accompanied by original receipts to the Purchasing and Payment unit for review. The card issuing company also prepares a variety of reports that detail transaction and card usage which are reviewed by the Purchasing Card Administrator to ensure compliance with all Purchasing Card policies and procedures. 25. Q: How are my purchases approved? A: The supervisor, manager or chair that is the signing authority for the cost centre to which your purchases are charged, is your Approver. It is their responsibility to review and approve all of the purchases made on your card. They do this by going online onto the BMO Details Online and approving the transactions that you have reviewed. 26. Q: What are my responsibilities as an approver? A: The following are your main responsibilities: Approve all your cardholders transactions by the 22 nd of every month Understanding that you are the control point for the integrity of the Program and protection of your department s budgets Ensuring that the cardholders whom you approve complete all their responsibilities 27. Q: What are the consequences if approval and/or receipt submission deadlines are not met? A: P-Card Alerts are sent out on a regular basis reminding cardholders/approvers of transactions waiting their review/approval and reminding cardholders to submit their receipts. If the deadlines are not met, individual s will be sent out. If responsibilities are still not completed, a Purchasing Card Suspension Warning Letter will be sent. 28. Q: What if am unsure about a charge that has gone threw on my card? A: If the cardholder is unsure whether a charge is legitimate, they should first contact the supplier to resolve the situation. If they are still unsure, they should contact the Purchasing Card Administrator, who can have BMO request an invoice from the supplier (this may take up to 1 month).

6 29. Q: What if an incorrect or unauthorized charge has gone threw on my card? A: In the event of an incorrect or unauthorized charge, cardholders are responsible for contacting the supplier to resolve the situation. If a resolution cannot be reached, the cardholder should flag the transaction as disputed on the BMO Details Online and notify the Purchasing Card Administrator. 30. Q: How do I dispute a charge? A: The cardholder must dispute the charge on BMO Details Online by checking off the transaction, clicking on Transaction Detail, and then clicking Dispute Txn. The cardholder must also notify the Purchasing Card Administrator. Within the next week, check Details Online to ensure that the dispute has gone through (must change Search to All Record Types when in Transaction module ). 31. Q: What if I've inadvertently used the card for a personal purchase? A: The Purchasing Card cannot be used for personal purchases. In the case of inadvertently charging a personal purchase to the Purchasing Card, the cardholder must immediately notify both their approver and the Purchasing Card Administrator. Also, in the same period that the charge occurred, the cardholder must reimburse the university and attach the cashier s slip to their Custom Cardholder Statement Report. They must also note in the description field when approving the transaction, that the university has been reimbursed. 32. Q: How does the cost get into the accounting system? A: All purchases on the Purchasing Card are charged to the cardholder s default cost centre that was identified on the card application. Changes to this account may be made through the BMO Details Online at the time of the cardholder review or at the approval stage as long as changes are made before the end of the payment period. 33. Q: What if I change my position or department within Ryerson University? A: If you change either your position or department, you must contact the Purchasing Card Administrator. The current card will be invalidated. If a Purchasing Card is required in your new department, you will have to apply for a new one. 34. Q: What if my card is lost or stolen? A: It is the responsibility of the cardholder to immediately report a lost or stolen card to both the card issuing company ( ) and the Purchasing Card Administrator (416) Extension 4107 or by (n2hacher@ryerson.ca). As well, the cardholder must follow up by completing a Purchasing Card Close form As a result, the card issuer blocks the account to prevent any additional charges. Prompt action in these circumstances reduces the University's liability for fraudulent charges.