Title: Vendor Credit Card Implementing Procedure For Policy # N/A Division: Business Affairs/Purchasing

Transcription

1 LAKE-SUMTER STATE COLLEGE ADMINISTRATIVE PROCEDURE Title: Vendor Credit Card Page 1 of 5 Date Approved: Implementing Procedure For Policy # N/A Division: Business Affairs/Purchasing Section I General A vendor credit card is a vendor-issued credit card to be used only for purchases of goods with that vendor for official college business. The purpose for implementing the vendor credit card procedures is to streamline the college s procurement and payment processes by delegating the authority and responsibility to make certain purchases directly to the cardholder. This program will allow the cardholder to purchase approved commodities and services directly from vendors. Each vendor credit card is issued to either an individual department or signed-out by employees as the need for the commodity arises. Purchases can either be picked up by the individual or sent to the receiving department or delivered to the shipping/receiving area at Lake-Sumter State College. The vendor credit card is intended to complement the purchase order process and not replace it. The greatest benefit to the vendor credit card is eliminating the need for many (but not all) of the purchase orders issued by departments. Authorized Department Official s may recommend a vendor credit card be issued to an employee. The employee must complete a Vendor Credit Card Request form, which are located in the Lake-Sumter State College Purchasing Department. This application must be approved by the appropriate Department Head and the Senior Vice President of Business Affairs. Once approved, the cardholder must sign the cardholder agreement. Section II - Purpose The vendor credit card system was implemented to: Establish procedures for the assignment and utilization of the following LSSC (Vendor) Credit Cards: Home Depot, Lowe s, Office Depot, Office Max, Publix, Tractor Supply, Wal-Mart, Wright Express, and future (Vendor) Credit Cards approved to facilitate business operations at the College. Permit departments to accelerate the ordering, receiving and payment process by allowing the department to purchase goods without the use of the standing/regular requisition/purchase order method, Support the elimination of many purchase orders, Provide greater purchasing flexibility and empower departments and employees to manage expenditures, Allow departments to purchase those items from vendors who do not accept purchase orders (within established limits), Reduce the need to use petty cash,

2 Vendor Credit Card Title Page 2 Reduce paperwork, Shorten the cycle time for ordering and receiving orders, Improve accountability and control of small dollar purchases through training and the cardholder agreement. In addition, better controls are established when limits are placed on the dollar amounts as well as on the kinds of items that can be purchased with the card. Section III Procedures The Office of the Senior Vice President of Business Affairs is authorized by the President to secure Vendor Credit Cards in the name of the College. All applications for Vendor Credit Cards must be approved by the Office of the Senior Vice President of Business Affairs. All Vendor Credit Cards will be either checked out through the Purchasing Department and immediately returned once transactions are complete or assigned to a specific employee/department and returned before transferring to another department or separation from LSSC. An approved cardholder may sign out their card to an employee, within their department, for the purpose of making purchases on the department s behalf. No intradepartmental vendor credit cards will be shared without the approval of the department s budget manager. Upon signing out a vendor credit card, each employee acknowledges the procedures governing the card system. A copy of this administrative procedure shall be made available to all employees. Prior to the issuance of a Vendor Credit Card to any employee/department, pre-determined spending limits for each vendor account will be set and approved by the College. The card will also be limited to College business and only for expenditure categories specified by the College. Section IV Card Security Lost or stolen College Vendor Credit Cards must be reported immediately to the LSSC Purchasing Department. The appropriate department supervisor should also be notified as soon as possible. The cardholder will submit a written report to the Purchasing Department within two (2) business days of the incident. The report shall include: Vendor Credit Card number, Cardholder and department name, Date and location of loss, Date and time the issuing institution was notified, Purchases made the day the card was lost/stolen or last used, Any other comments or descriptions. Security of the Vendor Credit Cards and verification of expenditures incurred through use of the cards are responsibilities of the individual to whom the card was issued. It is the Cardholder s responsibility to safeguard the Vendor Credit Card and account number. Before transferring to another department or separation from LSSC, the Cardholder shall surrender the Vendor Credit Card to the Purchasing Department Immediately. The named cardholder or designee is the only person authorized to use the vendor credit card. To prevent against theft or fraudulent use: The cardholder is responsible for keeping the vendor

3 Vendor Credit Card Title Page 3 credit card in a safe, secure place at all times and taking necessary precautions to prevent the card or account number from being stolen or used by others. Section V - Making a Purchase The Cardholder will purchase items and/or services that are consistent with the Cardholder s organizational responsibilities and that are for the official use of LSSC. All items purchased over the counter must be immediately available at time of credit card use. No back ordering of merchandise is allowed. The cost of the proposed purchase may not exceed the transaction limit established by the College. The Cardholder shall not split a purchase into multiple transactions to stay within the single purchase limit. Personal charges should not be made on Vendor Credit Cards issued in the name of the College. Whenever making a Vendor Credit Card purchase, Cardholder will use his or her best judgment to obtain the best product at the best price for LSSC. In addition, Cardholder shall always consider the departmental budget guidelines when making purchasing decisions. Cardholders must provide all vendors and suppliers with an LSSC exemption certificate before making tax-exempt purchases. Purchases made in Florida are exempt from Florida Sales and Use taxes. Tax exempt forms are available through the LSSC Purchasing Department website. Cardholder will retain documentation as proof of purchase for all Vendor Credit Card purchases of account and forward the original receipts attached to a properly completed Receiving Report (RR) or Direct Payment (DP) to the LSSC Accounts/ Payable Department. Vendors will issue all credits to the individual Vendor Credit Card account for any item they have agreed to accept for return. This credit may appear on a subsequent statement. Under NO CIRCUMSTANCES may a Cardholder accept cash or gift card/certificate instead of a credit to the Vendor Credit Card account. Section VI - Erroneous Declines Occasionally a cardholder may attempt to purchase items from a vendor and the purchase may be denied. The reason for denial will be available the next day after the purchase is attempted. If a vendor erroneously declines the Vendor Credit Card, the Cardholder should have the vendor immediately contact the LSSC Purchasing Department for assistance. If the purchase is being made outside of normal LSSC business hours, the employee must find an alternate payment method or cancel the purchase and contact the LSSC Purchasing Department during normal hours. Some of the most common reasons for denial include: The purchase from the vendor may be greater than the cardholder s and/or college s credit limit. Section VII - Emergency Transactions Emergency transactions over the Cardholder s transaction limit shall not be handled with the Vendor Credit Card. For any transaction that does not meet the spending controls assigned to the card, the Cardholder must contact their Department Head. The Department Head, in turn, should contact the LSSC Purchasing Department if further assistance is needed.

4 Vendor Credit Card Title Page 4 Section VIII Prohibited Purchases Vendor credit cards shall NOT be used for the following: Cash advances are NOT permitted under any circumstances, Rental or lease of land or buildings, Long distance telephone calls, Purchase of consultant or personal services, Alcoholic beverages, Non-college related purchases, Orders for services, except minor repairs (less than $750) to equipment. Meals while traveling Section IX - Travel The cardholder may use the Wright Express credit card to purchase gasoline/diesel for official college business. The vendor credit cards shall NOT be used for personal travel, under any circumstances. All travel shall comply with the college travel policy. Prior approval of travel should be obtained in advance of making reservations, paying for registrations, or paying for airline travel. Section X Cardholder Termination When an employee ends employment with Lake-Sumter State College, a department is no longer in need of a specific vendor credit card or fails to follow vendor credit card procedures, the employee/department shall surrender their card to the LSSC Purchasing Department, who will then destroy the card. Personal use and sharing of cards is PROHIBITED and may result in the revocation of any vendor credit card card and serious disciplinary actions. Section XI Procedures for Disputed Charges If the cardholder has a problem with a billing, it is their responsibility to contact the vendor and try to reach resolution. The cardholder must contact the vendor if the amount on the receipt differs from the statement. If the amount on the statement is incorrect, request that the vendor credit the card account on the next statement. Indicate disputed charges on the RR (Receiving Report or DP (Direct Pay) when submitting to accounts payable for processing. The cardholder should document all attempts to resolve any problem. If the problem cannot be resolved, contact the budget supervisor.

5 Vendor Credit Card Title Page 5 Section XII Procedures for Handling Returns If an item needs to be returned, the cardholder should return the item(s) to the vendor within ten (10) business days for replacement or credit. Any action taken under this provision shall be documented in writing. For items returned in person to the vendor, make a copy of the original receipt and attach it to the returned item(s). Take the original invoice and item(s) to be returned to the vendor, and present the vendor credit card with the original purchase receipt to the cashier to process the credit. For items returned via mail, make a copy of the original receipt and attach it to the item(s). Mail the original invoice and item(s) to be returned to the vendor for either credit or replacement. Obtain the credit receipt from the vendor and attach it to the vendor credit card purchases receipts for the month when the credit appears on the statement. Retain a file copy. Under NO CIRCUMSTANCES take cash for returned merchandise. Senior Vice President, Business Affairs Date Approved by President Date