MONMOUTH UNIVERSITY PURCHASING CARD POLICY AND PROCEDURES

Transcription

1 MONMOUTH UNIVERSITY PURCHASING CARD POLICY AND PROCEDURES Loretta Dickerson Program Coordinator Controller's Office Ext: 5391 Purchasing Card Policy and Procedures - March 24, 2016 Page 1

2 MONMOUTH UNIVERSITY PURCHASING CARD Table of Contents 1. Introduction and Overview 3 2. Procedures 3 a. Application Process 3 b. Issuance, Pickup and Setup Interview 4 3. Responsibilities 4 a. Cardholder and/or Proxy 4 i. Overview 4 ii. Safekeeping 4 iii. Business Expense 5 iv. Documentation 6 v. Reconciling and Signing Off Transactions 6 1. Reconciling and Signing Off Transactions 6 2. Changing General Ledger Account for Transaction 7 vi. Approvals 7 vii. Submission of Monthly Statement and Documentation 7 b. Budget Officer 8 4. Support 8 a. Program Coordinator 8 b. Disputing a Transaction 8 c. Merchandise Returns and Exchanges 8 d. Lost, Stolen or Damaged Cards 9 e. Cardholder Separation 9 f. Purchasing Card Cancellation 9 g. Tax Exemption 9 5. Misuse of the Purchasing Card 9 Purchasing Card Policy and Procedures - March 24, 2016 Page 2

3 1. Introduction and Overview a. The Monmouth University Purchasing Card Program has been established to provide a convenient means for University employees to make small (less than $1,000) purchases for business purposes. The Purchasing Card Program allows employee Purchasing Cardholders to make purchases for their school or department of materials or services to be used for the carrying on of business in their area. (Travel, Entertainment and Food expenses, as defined in the University's Travel, Entertainment and Food Policy, are not to be purchased using the Purchasing Card. These expenses should be charged using the Monmouth University Corporate Card for Travel or paid with personal funds and then submitted for reimbursement on an Employee Travel Expense Voucher.) b. The Purchasing Card may be used like any other credit card and there is no annual fee. Charges made with the Purchasing Card will automatically be paid by the University and charged to the Cardholders General Ledger account that the Cardholder designated upon requesting the Purchasing Card. c. The Cardholder will receive a monthly statement listing the transactions charged to the Cardholder's Purchasing Card. It is the responsibility of the Cardholder to provide the Program Coordinator, located in the Controller's Office, with complete and satisfactory documentation supporting each purchase listed on the monthly statement within 20 business days of receipt of the statement. The monthly statement and the documented support must be approved, signed and dated by the Cardholder and the Budget Manager for the General Ledger account being charged. d. All active full-time staff, administrators and faculty of the University, upon approval of the employee's area Vice President, are eligible to be issued a Purchasing Card. 2. Procedures a. Application Process: i. To apply for a Purchasing Card, a Monmouth University Purchasing Card Application form (Attachment I) must be completed and approved by the Department Head, Dean (if applicable) and Area Vice President and then forwarded to the Program Coordinator in the Controller's Office. On the application form, certain limits and characteristics of the Purchasing Card are selected by the Cardholder applicant. These characteristics and limits include the Single Transaction Dollar Limit, the Monthly Credit Line Dollar Limit, the General Ledger account to be charged and the Cardholder name and department. ii. The Single Transaction Dollar Limit may not be greater than $999.99, but may be less. The Monthly Credit Line Dollar Limit may not be greater than the General Ledger account's supplies budget that is associated with the card. If, after the card has been issued, you d iscover that circumstances may require a higher transaction limit than the original limits set, or any other changes to the original Purchasing Card setup, the Cardholder may request temporary or permanent changes to the Purchasing Card setup by completing the Purchasing Card Account Maintenance Request form (Attachment II). The Cardholder must then secure the required signatures and forward the Maintenance Request form to the Program Coordinator located in the Controller's Office. Purchasing Card Policy and Procedu res - March 24, 2016 Page 3

4 b. Issuance, Pickup and Setup Interview: i. After your Purchasing Card Application has been approved and received by the Program Coordinator, the Program Coordinator will have the Purchasing Card issued by the Bank and schedule an appointment with the Cardholder applicant for a Card Pickup and Setup Interview. During this interview the Cardholder applicant will be given an overview of the policies and procedures of using the card and given an opportunity to ask any questions relating to the Program. ii. Also at this time the Cardholder will be asked if they would like to designate someone in their department to function as a Proxy for the Cardholder. Each Purchasing Card transaction must be reconciled, or signed off on, using the online Works application by the Cardholder. The Cardholder may designate a Proxy to perform this duty; including the ability to change the General Ledger account number for a transaction in order to reallocate it to another account number within the Cardholder's area of responsibility. iii. At the end of the interview, the Cardholder applicant will be given their Purchasing Card and asked to sign the bottom of the Application Form in receipt of the Purchasing Card and agreement to follow Purchasing Card Policy and Procedures. If the Cardholder elected to assign a proxy, the Cardholder will be required to sign a form to that affect. 3. Responsibilities a. Cardholder and/or Proxy: i. The Purchasing Cardholder and the assigned Proxy is responsible for: 1. The safekeeping of the Purchasing Card; 2. Using the Purchasing Card only for business expenses less than $1,000; 3. Keeping documentation of each charge using the Purchasing Card; 4. Reconciling and signing off, online, for each Purchasing Card transaction; 5. Acquiring approval signatures from their immediate supervisor and/or the Budget Manager of the account being charged; and 6. Submitting documentation of all the charges appearing on their monthly statement to the Program Coordinator, located in the Controller's Office, within 20 business days. ii. Safekeeping of the Purchasing Card: 1. The Purchasing Cardholder is responsible for the Purchasing Card's safekeeping. It may not be transferred to, assigned to, or used by anyone other than the Cardholder. 2. Monmouth University may, at any time, suspend or cancel the Purchasing Cardholder privileges for any reason, and the Cardholder will surrender the Purchasing Card to the Program Coordinator in the Controller's Office upon request. Purchasing Card Policy and Procedures - March 24, 2016 Page 4

5 iii. Business Expenses: 1. Purchasing Cardholders are authorized to use the Purchasing Card to charge small purchases (less than $1,000) for any merchandise or service required to carry on the business of their school or department within the constraints of the Cardholder's Budget. 2. Items not to be charged with the Purchasing Card include the following: a. Items for personal use (even if Cardholder intends to reimburse the University) b. Items for Non-University purposes (even if the Cardholder intends to reimburse the University) c. Payments to individuals (Conferences & Registration fees are the exception) d. Travel, Entertainment and Food expenses (Travel Card or employee personal funds should be used), (Conferences & Registration fees are the exception) e. Catering services on Campus (must be performed by Gourmet Dining, unless preapproval is secured from Gourmet Dining) f. Information technology without the preapproval of Information Systems g. Support to individuals or other organizations without the preapproval of the Office of Public Affairs h. Wireless communication services and data plans for University owned tablets unless accompanied by the area Vice President approval, including business purpose. i. Any purchases prohibited by University Policy 3. Items requiring preapproval include the following: a. Approval by Enrollment Management Any publication to current of prospective students, and/or any publication representing Monmouth University b. Approval by Facilities Management Department purchases of facilities related supplies or services (e.g., electrical, HVAC, appliances, kitchen equipment, locks, plumbing supplies, fire and safety equipment, auto supplies, carpentry, paint supplies, window dressings, carpeting and custodial supplies) c. Approval by Information Systems Any computer, network, telephone, printer and other related items d. Approval by Digital Copy Center University stationary (e.g., business cards, letterhead envelopes, etc., and copier machines or coping services) Purchasing Card Policy and Procedures - March 24, 2016 Page 5

6 iv. Documentation: 1. When making a purchase, the Purchasing Cardholder must retain the original charge receipt and the original sales receipt for submission later along with the Purchasing Card monthly statement. If the original charge receipt or original sales receipt does not have the date of purchase, the vendor, item/s purchased and their prices, the cardholder must obtain additional documentation from the vendor. Cardholders should keep this documentation in a folder in preparation for receipt of the Monthly Statement. If the name of the items themselves would not lead a reasonable person to understand the business purpose, please place a note further explaining the business purpose connection. 2. When making a purchase in person, the Cardholder must sign the charge receipt and keep the original customer copy along with the original sales receipt. When making a purchase over the telephone, or internet, provide to the vendor the account number embossed on the Card, and if possible, direct the merchant to include the following on the shipping label to assure that the University Mailroom correctly delivers the purchased item to the Cardholder place of work. a. Cardholder name and phone number b. Department name c. Complete campus delivery address, including building name and room number d. The words "Credit Card Purchase" clearly stated on the package 3. The Cardholder should make sure that the date of the purchase, the vendor, the items purchased, their prices, and the total amount for each purchase, is clearly documented. If the items themselves do not communicate a clear business purpose then the Cardholder should add a note on the document explaining the business purpose. v. Reconciling and Signing Off on Transactions with the Online Works 1. The Cardholder and Proxy will receive an notice from the online WORKS application that transactions are ready to be reconciled. Reconciling a transaction confirms that the transaction is correct, gives the Cardholder or Proxy the opportunity to change the General Ledger account number to be charged and unencumbers your Purchasing Card credit limits. Either the Cardholder or Proxy must log onto the online Works application and manually signoff on each transaction. (See the Quick Reference for Cardholders Using Works, Attachment Ill.) This action will confirm that the transaction is correct and restores your credit limits at the beginning of the next billing cycle. Not performing this task timely will result in your discretionary funds remaining encumbered at the beginning of the next billing cycle which may cause your card to decline. Purchasing Card Policy and Procedures - March 24, 2016 Page 6

7 vi. Approvals 2. Changing the General Ledger Account for a transaction online a) Charges to your Purchasing Card will be viewable on the online Works application once the charge has been processed by the Bank. The Controller's Office will upload charges from the Works application to the Cardholder's default General Ledger Purchasing account specified on Cardholder's Purchasing Card application. b) Between the time the Purchasing Card charge is viewable on the online Works application and the time these charges are uploaded to the General Ledger, the Cardholder or Proxy has a short window of time to change the General Ledger account number to another General Ledger account number for which they are authorized to charge. This is done using the online Works system. (See the Quick Reference for Cardholders Using Works, Attachment IV.) c) Purchasing Card charges are uploaded from the online Works application to the General Ledger semi-monthly. Therefore account changes should be made as soon as possible after the card has been used and the charge appears on the online Works application. Once the charge has been uploaded to the General Ledger, account change may only be made by written request to the Controller's Office. 1. Upon receiving the Purchasing Card Monthly Statement, the Cardholder should review the documentation that should have been filed away in a folder at the time of purchase. Once the Cardholder is satisfied that the documentation is complete, the Cardholder should attach the documentation to the Monthly Statement in the order that transactions appear on the Statement, sign and date the Statement and print his or her name under the signature. If receipt/s are much smaller than an 8.5'' x 11" sheet of paper, then please tape the receipt/s to an 8.5'' x 11" sheet of paper. 2. The Cardholder then should acquire the signature of the Budget Manager for the General Ledger account being charged. The Budget Manager should review the purchases and documentation for business purpose and budget availability. If satisfied, the Budget Manager should sign and date the Monthly Statement and print his or her name under their signature. 3. If the Cardholder is the Budget Manager for the account being charged, then only the Cardholder/Budget Manager signature is required. vii. Submission of Monthly Statement, Documentation and Approvals: 1. Once all documentation has been attached to the Purchasing Card Monthly Statement and the above mentioned approvals have been acquired, the Statement with the documentation attached must be submitted to the Program Coordinator in the Controller's Office. Purchasing Card Policy and Procedures - March 24, 2016 Page 7

8 2. The Purchasing Card Monthly Statement with all required documentation must be received by the Program Coordinator within 20 business days from receipt of the Monthly Statement by the Cardholder. 4. Support b. Budget Officer: The Budget Officer for the account to be charged by the Purchasing Card is responsible to assure that the charges do not exceed available budgets and that the charges are business related expenses and properly documented by the Cardholder. a. Program Coordinator: The Program Coordinator, located within the Controller's Office, is available to administer initial Cardholder setup, adjustments to setup, cancellations, and is the primary contact for the University with the Purchasing Card Bank. b. Disputing a Transaction: In the case of a disputed charge, the Cardholder must first try to resolve the dispute directly with the merchant. If the dispute cannot be resolved, the Cardholder should call the customer service number printed on their Monthly Statement and state the nature of the dispute. All disputes must be initiated with the Bank within 60 days of the date on the Monthly Statement which included the disputed charge. If you wish to file a written dispute, you may send a copy of your Statement and a written description of the error and why you believe there is an error, to the address provided on the back of your Monthly Statement. c. Merchandise Returns and exchanges i. The Cardholder is responsible for contacting the merchant when merchandise purchased with the Purchasing Card is not acceptable (e.g., incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange. Receiving cash or checks to resolve a credit is prohibited. ii. If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining the original receipt with the support documentation for that purchase. iii. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the support documentation. Purchasing Card Policy and Procedu res - March 24, 2016 Page 8

9 d. Lost, Stolen or Damaged Cards: If the Purchasing Card is lost or stolen, the Cardholder is required to immediately contact the Bank using the "For Lost or Stolen Card" phone number This phone number is also printed on the Cardholder's Monthly Statement. Do not ask or allow the Bank to issue a new card for you. Once the Bank has been informed, please call the Program Coordinator located in the Controller's Office who will acquire a new card for you. Should the Purchasing Card be found after being reported lost or stolen, it must be destroyed by cutting it in half. The same procedure applies if a card is damaged. Both halves must be sent to the Program Coordinator located in the Controller's Office. e. Cardholder Separation: Prior to separation from the University, the Cardholder must surrender the Purchasing Card to Human Resources or to the Program Coordinator. The University will seek restitution for any charges incurred on the Purchasing Card after the employee's separation and for any remaining undocumented charges incurred prior to separation. f. Purchasing Card Cancellation: The Program Coordinator located in the Controller's Office must be notified immediately when a Purchasing Card is to be canceled. The card should be destroyed by cutting it in half. Both card halves must be forwarded to the Program Coordinator. g. Tax Exemption: When making a purchase, inform the merchant that the purchase is for Monmouth University and is therefore tax exempt. Before signing off on the sale, check to make sure tax has not been added to the amount of the purchase. Our tax exempt number (E ) is embossed on the front of the Purchasing Card. If the merchant requests a copy of the ST-5 Tax Exemption Certificate, which are within his/her rights, a request can be made to Accounts Payable for a certificate to be issued to the merchant by mail or fax. 5. Misuse of the Purchasing Ca rd: Misuse of the Purchasing Card may be considered fraudulent and further action may be taken by the University against the Cardholder. Cardholders should also keep in mind that charges to the Purchasing Card will result in a "receivable" due from the Cardholder until proper documentation is received and accepted by the Program Coordinator located in the Controller's Office. Therefore, Purchasing Card charges not satisfactorily documented, attached to the monthly statement and returned to the Program Coordinator in the Controller's Office within a reasonable amount of time will result in suspension of the Purchasing Cardholder's privileges, cancellation of the Cardholder's Purchasing Card, reimbursement of the undocumented charges from the Cardholder or a deduction of Purchasing Cardholder's paycheck. Purchasing Card Policy and Procedures - March 24, 2016 Page 9

10 Related Documents: Purchasing Manual Monmouth University Travel, Entertainment and Food Policy Purchasing Card Policy and Procedures - March 24, 2016 Page 10

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13 Quick Reference for Cardholders Using Works Attachment III 1. Login Select the appropriate card program and use your current Works Log in and password to login. 2. Homepage The Homepage displays two screens. a) Actions Items: Represent outstanding items that require action or review. The Current Status column items are links to the corresponding work screens. If you have several different user roles, review the Acting As column to verify which role you should be performing the required action. b) Accounts Dashboard: This screen allows the proxy or secondary accountholder to view all accounts within their scope. The accountholder authorization logs may also be viewed on the accounts Dashboard. Fig 2

14 3. Transaction sign off To sign off on your pending transactions, click Pending under Current Status on the Action Item Screen. Fig 2 Your pending transactions will appear: Choose the desired transaction to sign off, add/edit and/or view in full details. By Clicking on the Document number of that transaction, the drop menu appears. Fig 3 Fig3 4. To Sign off Select the transaction, using the check box and click on the document. Choose Sign Off. Fig 3 5. To Allocate/Edit Select the transaction, using the check box and click on the document. Choose Allocate/edit from the menu. Fig 3 The Allocation Detail Screen will appear. Fig 4 Delete original GL codes in the field marked Unique ID. (Do not change Acct Default). Enter the desired GL account number. Save. Fig 4

15 6. Mass Allocation To mass allocate multiple lines with the same GL account: Fig.5 a) Click Expenses>Transactions>Accountholder. The transaction screen with transactions in the Pending Sign Off queue displays. Click on Pending. Fig 5 Select the check box beside each transaction you wish to allocate with the same GL code. Fig 6 b) Click Mass Allocate. The Mass Allocate window displays. Fig 5 Fig 6

16 c) Enter an allocation code in the Unique ID field. (Do not change Account Default)Fig 7 Fig7 d) Select Retain original codes from the options from Empty Segment Fields. Fig 7 By doing so, the field will automatically enter the account default. e) Click Ok and a confirmation message displays. Fig 7 7. Add a line to a Transaction a) From Pending Transactions, click on the transaction you would like to add a line to. Fig 8 Fig 8

17 b) Select transaction to be edited. Choose Allocate/Edit from the drop menu. Fig 9 Fig 9 c) From the Allocation Detail Screen, Select Add from the drop menu. Fig 10 Fig10

18 d) Select the number of lines you desire to add to transaction. Fig 11 Fig11 e) The additional line is added to transaction. Fig 12 Fig 12 f) To duplicate transaction description, check the line newly added and choose Duplicate from the Drop menu. Fig 11