UNC School of the Arts Purchasing Card Manual

Transcription

1 UNC School of the Arts Purchasing Card Manual This manual includes general information and detailed procedures for card issuance and card processes, purchasing guidelines, and documentation requirements. Revised:

2 Table of Contents INTRODUCTION...3 WELCOME TO THE UNC SCHOOL OF THE ARTS PURCHASING CARD PROGRAM...3 BENEFITS TO THE CARDHOLDER...3 BENEFITS TO UNC SCHOOL OF THE ARTS...3 CORPORATE LIABILITY...3 GENERAL INFORMATION...5 CARD USAGE...5 CARD SECURITY...6 ROLES AND RESPONSIBILITIES...7 GENERAL CARD PROCESSES...11 HOW TO OBTAIN A CARD...11 CARD CHANGES - EMPLOYEE NAME CHANGE, ORGANIZATION AND FUND CODE CHANGES, AND APPROVER CHANGE...11 CARD RENEWAL...11 CARDHOLDER EMPLOYMENT CHANGES...12 CARD INACTIVITY...12 LOST OR STOLEN CARD...12 GENERAL PURCHASING GUIDELINES...13 ALLOWABLE AND NON-ALLOWABLE CARD PURCHASES...13 IT APPROVAL SPLIT TRANSACTIONS...16 SALES TAX EXEMPTION...17 HOW TO MAKE A CARD PURCHASE...18 CARD PURCHASE STEPS...18 PURCHASES BY FAX...18 PURCHASES BY INTERNET...19 PURCHASES BY RETURN OF GOODS PURCHASED...20 DOCUMENTATION AND RECONCILIATION...21 OVERVIEW...21 ON-LINE TRANSACTION REVIEW AND STATEMENT RECONCILIATION...21 DISPUTED OR FRAUDULENT CHARGES...21 TRANSACTION SWEEP AND PAYMENT PROCESS...22 COMPLIANCE ASSURANCE...23 APPENDIX I: INTERNAL CONTROL SELF-ASSESSMENT FOR DEPARTMENT HEADS...26 APPENDIX II: PURCHASING CARD CONTACT LIST...27 UNIVERSITY CONTACTS...27 BANK OF AMERICA

3 Introduction General Overview Procurement Cards (also known as Purchasing Cards) enable organizations to make small purchases more quickly and efficiently by minimizing paperwork and processing time. Similar to familiar VISA, MasterCard, etc. formats, procurement cards can be processed by vendors just like personal charge cards (the do not have to enroll specifically in a procurement card program). Rather than making multiple payments to many vendors, the using organization writes one check to the card provider. Users, Accounts Payable and Purchasing can all benefit from the cards streamlined process. It also offers an easy method of making emergency purchases. Vendors receive payment from the card processor within a few days, without extra paperwork, thus encouraging small local businesses to do business with the state. Welcome to the UNC School of the Arts Purchasing Card Program The purpose of the UNC School of the Arts Purchasing Card Program is to simplify procurement and payment processes for selected low dollar, high volume business commodities and services. The program is designed to maintain accountability while reducing the cycle time and administrative burden of procurement procedures such as purchase requisitions/orders, direct pay requests, and expense reimbursements. The card is issued by Bank of America and is widely accepted by vendors that support Visa card purchases. The program provides the following benefits to cardholders and the University: Benefits to the Cardholder Eliminates the need to use personal funds and obtain reimbursements. Provides convenience, security, and flexibility to make small dollar purchases. Empowers cardholders with choices and immediate access to goods. 3

4 Benefits to UNC School of the Arts Corporate Liability Significant cost savings in the purchase-to-pay cycle. Increased expense analysis power. Increased ability to provide value-added services. UNC School of the Art s purchasing card is a Visa credit card with corporate liability. Corporate liability is defined as follows: The university is liable for all charges made by university employees. The university is not held liable for charges made by a terminated employee once notice of termination is provided to Bank of America. The university is not liable for charges made with the purchasing card resulting from card theft or other fraudulent use by third parties not employed by the university. This reference guide will provide you with the details of the program, including general information, card issuance, card processes, purchasing guidelines, and documentation requirements. It is important to read the following information carefully, as cardholders, coordinators, and department heads / deans are responsible for adhering to the established policies and procedures. 4

5 1 General Information The purchasing card (p-card) is a corporate Visa credit card, issued to UNC School of the Arts through Bank of America. The card is to be used for UNC School of the Arts business transactions only. Personal use of the Visa card by an employee is strictly prohibited. Card Usage A permanent, non-student employee with department head approval may acquire a p-card by completing the application and agreement and attending purchasing card training. The p-card is issued in the employee s name through Bank of America and the UNC School of the Arts Purchasing Agent / P-Card Manager. Personal Credit History: Although the p-card is issued in the employee s name, your personal credit history is not considered during the application process, and use of the p-card will not affect your personal credit history in the future. Payment of Charges: Monthly purchasing card charges are paid to Bank of America by the university. University funds and expense accounts assigned by the Cardholder or Coordinator during the reconciliation process are charged weekly from the department s holding account when the payment to the bank is generated. The purchasing card program provides the university with full dispute rights and corporate liability coverage for all purchases. Your p-card can be used for any allowable UNC School of the Arts business expense with vendors that accept Visa credit cards. The card can be used to facilitate in-store purchases as well as purchases placed by phone, internet, fax, or mail. Personal use of the card is not allowed and will be considered as terms for card revocation as well as employee disciplinary The purchasing card is issued in the employee s name. Personal credit history is not a factor. The University pays the bank for all charges. The card is for business use only. Personal use is not allowed. 5

6 action. The P-Card is not to be used for travel and/or travel related purposes. Charges to the card are limited by daily, weekly, and monthly transaction dollar amounts as defined below. In addition, some vendors are blocked based on their Merchant Category Code (MCC). Transaction dollar limits and allowable merchant categories are established for each card account. Transaction Dollar Limits: Standard transaction limits are set at $2500 per transaction with a daily limit and monthly limit set by the Budget Director. The Cardholder should be aware that splitting transactions in order to remain within the transaction limit, daily limit, or monthly limit is prohibited. Merchant Category Blocking: Merchant category blocking utilizes MCCs to limit purchases from specific vendors. If a particular merchant category is blocked (e.g. jewelry stores) and a purchase is attempted, the purchase will be declined. Management has made an effort to ensure that vendors used during the normal course of business are not restricted. Card Security As a Cardholder you assume personal responsibility for the protection and proper use of your card. Follow the points below to assure card security. While in your possession, always keep the card in a secure place, just as one would a personal credit card. Treat the card like cash. A p-card can only be used by the person to whom the card has been issued. Never lend your card to another person or use another employee s p-card. Convey your card number to the vendor only through a secure web site, telephone, or in person. Never include your card number in an or fax. Maintain receipts and invoices in a safe place until they are submitted to the Coordinator or Department Head / Dean as documentation. The receipts and invoices should be returned to the Coordinator as soon as the purchase is made but no later than Tuesday of the week following the purchase. 6

7 Roles and Responsibilities If your purchasing card is lost or stolen, promptly follow the instructions under Lost or Stolen Card. Ensure a Purchasing Card Change Form has been prepared and submitted to the Purchasing Card Manager if you transfer to another department, terminate employment, or if your card use is not in compliance with this policy and supporting procedures. University employees and management play key roles to support the purchasing card program. A summary of roles and responsibilities follow. Cardholder Ensures compliant use of the p-card according to university purchasing guidelines, the Purchasing Card Manual, and State Purchasing and Contract guidelines. Maintain the card in a secure location while not in use. Return the receipts and invoices to the Coordinator as soon as possible after the transaction is made to ensure proper documentation trail exists for the purchase. Never allow anyone else use of the p-card assigned to you. Ensures spending limits and allotted operating budget are not exceeded on any transaction. Ensures transactions are not split to circumvent spending limits or university guidelines. Ensures NC Sales and Use Tax is not charged on purchases. The UNC School of the Arts Tax Exemption number is located on your card. Obtains a valid receipt / invoice for each purchase which includes the vendor name, date of purchase, item description, and total amount of purchase. Packing slips are not acceptable. 7

8 Provides reason / proof of purchase for each item purchased with P-Card. Submits original receipts / invoices to the Coordinator. Ensures all receipts / invoices are signed legibly (if not legible please print name on receipt / invoice). Assists the Coordinator with resolution of billing discrepancies, disputes, and credits. Contacts Bank of America and the Purchasing Card Manager immediately if your card has been lost or stolen. Coordinator The department can decide that a cardholder will also serve as the Coordinator for a specific purchasing card; however, a coordinator does not have to have a p-card assigned to them. This decision can be made for each individual card. This allows the program to best meet the department s needs. Ensures compliant use of the P-Card by all cardholders assigned to your location by reviewing the purchases on a weekly basis during reconciliation. Receives original receipts from the Cardholder. Compares receipts with the electronic transactions recorded in Works, the purchasing card transaction management system. Reviews and approves each transaction in Works and ensures that the: o Item purchased, amount charged, and the vendor name match the receipt o NC Sales and Use Tax is not included o Description of the expense is clear o Business purpose of the expense is provided for each expenditure o State Contract or IT/GA Contract number listed on each invoice / receipt including when appropriate. 8

9 o Correct organization, fund, and account code are used o Each Receipt / Invoice signed legibly Resolves discrepancies with the Cardholder when necessary. Assembles the reconciliation packet for the Approver s review o Prints the weekly P-Card Reconciliation Report from Banner o Arranges the original receipts in the same order as the report for easy review by the Department Head / Dean o Signs the reconciliation packet o Submits the report and corresponding receipts (reconciliation packet) to the Department Head / Dean for final departmental review Ensures that the p-card is used in compliance with university purchasing guidelines, the Purchasing Card Manual, and State Purchasing and Contract guidelines. Ensures the Cardholder has not exceeded the spending limits or fund budget on any transaction. Reviews that the Cardholder has not split any transactions to circumvent spending limits or the university guidelines. Approves transactions in Works and provides final review and approval of the reconciliation packet. Ensures a Purchasing Card Change Form has been prepared and submitted to the Purchasing Card Manager if an employee transfers to another department, has terminated employment, or if card use is not in compliance with this policy and supporting procedures. Department Head / Dean Provides fiscal oversight and management of business operations within his or her department. Selects department employees for participation in the UNC School of the Arts Purchasing Card Program based upon business need and the ability to fulfill program requirements. 9

10 Accounts for the use of the purchasing card in his or her department, taking appropriate action with departmental staff when required. Purchasing Card Manager Provides program management and oversight. Develops and delivers effective training for users. Ensures program compliance and quality assurance. Promotes an accurate P-Card program by working with departments to minimize violations and infractions of card usage. 10

11 2 General Card Processes How to Obtain a Card Department heads and business managers will identify faculty and staff with a business need for p-cards. Upon his or her approval, a Purchasing Card Application and Agreement can be obtained from the Purchasing Card Program page on the Purchasing website. Complete and forward the Purchasing Card Application and Agreement with the appropriate signature approvals to the Procurement Card Manager. The Cardholder must attend one of the scheduled P-Card training sessions before the card is provided. The North Carolina State Purchase and Contract office suggests that the most likely candidates are the employees who have frequent need to make small purchases and who have demonstrated that they are responsible and will follow proper procedures. In exchange for a faster way of making purchases, cardholders must be willing and able to keep good records for accounting / reporting purposes. It is not necessary for every employee within a department to obtain a P-Card. Only employees who purchase on behalf of their departments need a P-Card. Card Changes - Employee Name Change, Organization and Fund Code Changes, and Approver Change Card Renewal The Purchasing Card Manager maintains cardholder applications, agreements, and change documents. To report a legal name change, change organization and fund codes assigned to the card, or change the reconciler or approver, complete a Purchasing Card Change Form located on the Purchasing Department website. The Procurement Card Manager will notify the Cardholder of the effective date of the change. P-cards are issued with a three (3) year expiration date and are subsequently renewed every two (2) years. Renewal cards will be mailed from the bank to the university and distributed by the Procurement Card Manager to the Cardholder. You should receive your new card approximately thirty (30) days before the expiration date. 11

12 Cardholder Employment Changes Card Inactivity Lost or Stolen Card If you leave the university, transfer to a new department, or no longer use your card in the performance of daily job duties, your p-card must be cancelled immediately. Complete and submit the Purchasing Card Change Form, along with your card, to the Procurement Card Manager. If you transfer to a different department and your new position requires the use of a p-card, submit a Purchasing Card Application and Agreement listing your new department information. Because you were issued a card in the past, attending the training class will not be required. Regardless of the type of employment change, the card remains the property of UNC School of the Arts and must be surrendered immediately upon request for any reason by an authorized person (such as the department head or the Procurement Card Administrator). In the event a card is inactive for six months, the card will be reviewed for possible cancellation by the Procurement Card Manager. If you believe you have lost your card or that it has been stolen, immediately report the problem to Bank of America at Customer assistance is available 24 hours a day. Immediately after reporting to Bank of America, notify your Procurement Card Manager of the event. It is extremely important to act promptly in the event of a lost or stolen card to avoid company liability for fraudulent transactions. If it is a normal work day, and between the hours of 8 am and 5 pm, please contact the Purchasing Department and we will be able to assist you with getting the account closed and a new card issued. You will no longer be able to use the account number after notifying the bank. Bank of America will automatically reissue a new card. The Procurement Card Manager will notify you as soon as the new card is received. A card that is subsequently found after being reported lost should be sent to the Procurement Card Manager. 12

13 3 General Purchasing Guidelines The p-card represents UNC School of the Art s trust in you as a responsible employee who will safeguard and protect university assets. As a cardholder, you assume the responsibility for proper use of your card. Card purchasing does not change or alter current purchasing policies and departmental approval processes. Your card serves only as an optional method of payment. Allowable and Non-Allowable Card Purchases The UNC School of the Arts purchasing card is intended for operating supplies and other low value purchases needed during the course of business. Two charts are listed on the next pages as a guide for allowable and unallowable expenses. If you should have any questions, please contact Purchasing for assistance. 13

14 Allowable Expenses on the UNC School of the Arts Purchasing Card Supplies and Materials Ø Conference Booth and Space Rental Ø Express Mail Service and Freight Ø Magazine, Journal and Newspaper Subscriptions for the current year Ø Promotional Items Ø Food Items from an ITF Fund Only NO STATE FUNDS. Can only be for student consumption. Ø Laundry Services Ø Memberships must be University / Job related and benefit the University. Ø Second Hand / Used Equipment (Auction sites such as E-bay, allowed with prior approval from Purchasing) Ø Auto Repair Services estimated to be below $2500. Ø Automobile Towing Ø Car Washes for University owned vehicles. Ø Computer supplies and peripherals (cables, modems, flash drives, printers, memory) (SEE IT APPROVAL SECTION Pg. 15) Ø Software and upgrades (off the shelf only) (SEE IT APPROVAL SECTION Pg. 15) Ø Advertising (internet, newspaper, periodicals) Ø Service Orders (from Incorporated Vendors only Non-Individuals that are estimated to be below $2500) Ø Required Professional Licensure (Medical, etc.) Ø Webinars / Teleconferences Ø Professional Development Ø Registration Fees for Conferences / Seminars and Training Material. (Will require a pre-approved Travel Authorization Form be attached to the P-Card packet) Ø Supplies Agricultural Classroom items for instruction, research, or exam purposes Electrical parts * Janitorial Laboratory Mechanical parts * Motor vehicle repair Office Supplies (from Office Depot only) Plumbing parts * Repair parts and tools * *If a facility related repair, then you must contact the Facilities Management Department for approval and submit their approval with the invoice for documentation purposes. 14

15 Non-Allowable Expenses on the UNC School of the Arts Purchasing Card Supplies and Materials Ø Alcohol or Tobacco Products Ø Cash or Cash Advances Ø Cell phones or plan expense Ø Contractual Services (Professional, Independent Contractor Services or any type of Maintenance Agreement where we enter into a contract with the vendor to support purchased equipment such as AppleCare) Ø Gift certificates and cards Ø Hazardous Materials (cylinder gases, radioactive materials) Ø Recurring Charges (a purchase that automatically re-bills the card on a monthly / annual basis) Ø Travel Expenses (Hotel, Airfare, Car Rentals, etc.) except as detailed in the TRAVEL Section below. ** No restaurant meals allowed on P-Card. Ø Insurance Premiums, Co-pays or Deductibles Ø Lease Agreements Ø Rentals (equipment, vehicle, etc.) Ø Payment of Invoices Ø Mobile Apps (phones or tablets) Purchase an APP VOUCHER (for APPLE Products) by completing a requisition. Ø Capital Construction Ø Class Registrations for CEU Credit that are Tuition / College based. IT Approval Many of the items purchased for use in conjunction with your computers and laptops require IT approval for purchase (software, peripherals, etc.). Please ensure that you contact IT for all purchases that relate to these types of items. You should attach a copy of their approval to your P-Card invoice for audit purposes. There are a few exceptions, where IT approval is NOT required and they are listed below. These are the only exceptions: Keyboards (wired & wireless) SD / Memory Cards Flash Drives Desktop Speakers Toner Cartridges Mice As a general reminder ALL software must be approved by IT. 15

16 Travel Charges The University Travel Department will utilize the P-Card for charges associated with travel; such as airfare and hotel reservations. The charges will be charged back to departmental budgets as outlined on the Travel Authorization Form. Individual department P-Cards are not allowed to charge any travel related expenses. ONLY the University Travel Department is permitted to use the P-Card for Travel purposes. Split Transactions A split transaction occurs when you split a purchase to stay within the dollar limits of your card (per transaction, day, or month), or to avoid bid processes. Splitting transactions is strictly prohibited. Care should be taken by the Cardholder to avoid the appearance of such. Examples of split transactions are noted below. If you are uncertain as to if a transaction would be considered split, contact the Procurement Card Manager. A cardholder purchases similar or complementing items that cost a total of $2750. The sale is divided into separate transactions of $1500 and $1250. This is considered a split transaction to avoid exceeding the transaction limit of $2500 and is not allowed. A cardholder purchases an item on Monday which costs $2625 and pays the vendor $2000. The remaining $625 is paid on Friday. The $2625 purchase has been divided into two transactions. This is considered a split transaction to avoid exceeding the transaction limit of $2500 and is not allowed. A Purchase Order must be completed for the full order. Two cardholders within the same department use their cards to purchase an item or complementing items that cost $3000. Two transactions occur (one on each card) for the purchase. This is considered a split transaction to avoid exceeding the transaction limit of $2500 and is not allowed. A Purchase Order must be completed for the full order. 16

17 Sales Tax Exemption The university is a tax-exempt entity and is not required to pay North Carolina sales and use tax on goods. When dealing with vendors, the cardholder should make them aware of the exemption by providing the tax exempt number printed on the p-card or a hard copy of the Tax Exemption Letter found online at Verify that the invoice does not include a charge for NC Sales and Use Tax before you leave the store. If it does, provide the vendor with the tax exempt number again and ask for a credit to be issued before returning to UNC School of the Arts. Debarred Vendors The State of North Carolina keeps a listing of Debarred Vendors at this link: No State agency is allowed to conduct business with any vendor listed on the Debarred Vendor Listing. All P-Card users should check this listing BEOFRE placing a P-Card order with them to ensure compliance with this mandate. 17

18 4 How to Make a Card Purchase This section addresses the application of the general procurement guidelines to purchasing card transactions. This section will address procurement with the purchasing card, purchases by fax, purchases by internet, purchases by , and return of goods. Card Purchase Steps To make a card purchase, follow the steps below. If in doubt about any part of the process, contact your Approver or Procurement Card Manager for clarification. 1. Follow the internal procedures of your department to determine if a purchase is required and authorized. a. Check with Correction Enterprises b. Check State Contracts and/or IT/GA Contracts c. Check the Debarred Vendors Listing 2. Determine if the price quoted is the best price you can obtain by knowing your merchandise and comparing different vendor pricing. 3. Tell the vendor you are making the purchase on behalf of UNC School of the Arts and that we are exempt from NC Sales and Use Tax. Provide the NC Sales and Use Tax exemption number located on your p-card and ensure tax is not included on the invoice. 4. Provide payment with your p-card. 5. Obtain an itemized receipt / invoice (must list item description, quantity, price, State Contract information, and total purchase) from the vendor. Packing slips are not acceptable. 6. If goods are to be delivered, provide the vendor your name, department, phone number, and complete delivery instructions. Items must be shipped directly to UNCSA campus. 7. When goods are delivered, retain and match the packing slip to a copy of the original itemized receipt. (The original receipt should be turned in to the Coordinator after the transaction is made) 18

19 Purchases by Fax Retain a copy of the fax, as well as the fax confirmation for your records. To avoid duplicating the order, it is recommended that you do not mail a copy of the faxed order to the vendor. If the vendor requires the original, be sure to clearly mark it Confirmation of Fax Order, Do Not Duplicate. For security purposes, call the vendor with your p-card number instead of including it on your fax. Fax numbers can change and fax machines are often located in open areas within offices. Should your order be misdirected, your p-card number will be also. Purchases by Internet On-line purchases must be made with vendors who use a Secure Sockets Layer (SSL) browser session. To confirm that a secure area has been accessed, look for https (denoting a secure site) in the web address. A closed lock usually appears to the right of the web address or at the bottom right-hand side of the screen when you are asked to enter your card number. Secure Internet Site If a secure browser site is not readily apparent to you, do not utilize the internet to make the purchase as the security of your card could be jeopardized. Website Receipts Websites that present an on-line receipt, which reflects the items purchased and cost with a company logo or name, will serve as proper documentation. Simply print the on-screen document. Websites that reflect the billing amount only will serve as proper documentation by printing the confirmation or order acknowledgement. Websites that do not present an on-line receipt can still be utilized. The customer should print screens that reflect the items being purchased and the amount, and then ensure the confirmation or order acknowledgement is attached. 19

20 Purchases by A purchase by is not an approved purchasing method at UNC School of the Arts. For security purposes, p-card numbers should never be sent via to a vendor or anyone else. Electronic correspondence regarding the purchase can be sent to your , just ensure no account numbers are present in the . Return of Goods Purchased Items purchased with the p-card will periodically need to be returned. When this occurs, a vendor usually offers a Return Materials Authorization (RMA) number and issues a credit invoice upon receipt of the goods. Make certain to document the RMA number and keep the credit invoice to use in the reconciliation process at the end of the billing cycle. When receiving goods that you may need to return, consider the items below. Always retain boxes, containers, special packaging, and packing slips, until certain that you are going to keep the items. Items that are fragile or computer-related generally cannot be returned without the original packing materials. Read all enclosed documents carefully. Often a critical phone number and other instructions about how to return items are included. Contact the vendor and obtain a Returned Materials Authorization (RMA) number for the return. To facilitate the return of goods, follow vendor shipping instructions, if applicable. In some cases you may encounter a restocking fee. The p-card may be used to pay this fee as long as it does not exceed any of the card limits. 20

21 5 Documentation and Reconciliation (Coordinator Responsibilities) Overview Once the weekly period is over: P-Card Transactions must be signed off on / approved in Bank of America (WORKS) by Wednesday of each week by 11:00 am. A Reconciliation Calendar is provided to show you when the sign-off should occur and when the associated packet is due. If the primary coordinator is not available, the secondary coordinator must take the responsibility of completing and submitting the reconciliation packet. Reconciliation Packets are due to the P-Card Manager on Friday of each week by 5:00 pm, unless otherwise instructed on the Reconciliation Calendar. On-Line Transaction Review and Statement Reconciliation Transactions can be reviewed as soon as they are processed through Works. Specific instructions to view, reconcile, enter comments about transactions, edit general ledger fund and account selections, and reconcile monthly statements can be found in the Purchasing Card Coordinators User s Guide. Disputed or Fraudulent Charges If there is a discrepancy on your statement, it is imperative that the issue is addressed immediately with the vendor and/or the Procurement Card Manager. Depending on the type of discrepancy, you will need to contact either the vendor or the Procurement Card Manager to resolve the disputed transaction. If you believe the vendor has charged you incorrectly or there are problems with your order, you must first contact the vendor and try to resolve the error or problem. If you are able to resolve the matter directly with the vendor, and the error involved an overcharge, a credit adjustment should be requested. 21

22 If the vendor disagrees that an adjustment is necessary, immediately contact your Procurement Card Manager who will work with you and Bank of America to resolve the dispute. Bank of America will request complete details of the dispute in writing in order to research the item in question. Bank of America must receive any charge dispute within sixty (60) days of the transaction date. UNC School of the Arts pays all charges as billed on each statement (regardless of a transaction being in dispute status). Once the dispute status has been declared by Bank of America, the bank will issue a credit until the dispute is resolved. Although Bank of America acts as the arbitrator in any dispute, you should never assume that a dispute would be resolved in your favor. A fraudulent charge (e.g., a charge which was not initiated by you) must be reported immediately to your Procurement Card Manager. Prompt reporting of any such charge will help to prevent UNC School of the Arts from being held responsible. Transaction Sweep and Payment Process The Procurement Card Manager will be reviewing card transactions to ensure program integrity. When the period ends, the Procurement Card Manager will be monitoring approvals as they occur and will send reminders on Wednesday morning of each week (or at Month-End). Once the final approval time (11:00 am on Wednesday) has passed the Procurement Card Manager will close the transactions in Works and initiate payment. Unapproved Transaction Sweep To assure Bank of America is paid in a timely manner, all unapproved transactions will be swept into the payment process at the end of the approval period, which is 11:00 am on Wednesday of each week (or at Month-End), and charged to the departments default organization and fund. The Cardholder, Coordinator and Department Head / Dean will still be required to approve the transaction; however, they will no longer have the ability to edit the default organization code before charges post to the general ledger. After the general ledger feed, charges can only be reallocated by processing a journal entry. Continual non-compliance to 22

23 the weekly approval period deadline of 11:00 am on Wednesday (or at Month-End) will result in loss of coordinator privileges. As the payment process occurs, transactions are downloaded from Works to Banner. Accounts Payable then reconciles payment with the statement and submits payment to Bank of America. 6 Compliance Assurance In order to ensure compliance with the policies procedures of the program, the actions listed in the below chart will be taken by Financial Services when infractions occur. Infractions are classified as Minor Infractions, Major Infractions, and Criminal Activity. General descriptions and discipline measure are listed below. The Purchasing Office and Purchasing Card Administrator reserve the right to revoke and cancel any P-Card(s), as well as departmental cards, for failure to comply with policies and procedures of the program at any time. Compliance Assurance records are maintained on a yearly basis and do not carry over to the next fiscal year from previous years. ** With the changes to the P-Card Procedure, Cardholders will now be able to retain access to the P-Card 24 hours a day, 7 days a week. The Purchasing Department will allow individuals to keep their P-Card to use when the need arises; however, this must be approved by the Department Head / Dean. Departments may keep the current method in place in an attempt to control expenditures and provide proper approval documentation. If an individual does retain possession of the P-Card, then they must ensure that invoices and receipts are submitted to the Coordinator as soon as the purchase is made or upon immediate return to the office. These invoices and receipts are vital in signing off on transactions in the Bank of America WORKs System. If the rollover process is hindered by individuals not submitting paperwork in a timely manner, then the Purchasing Department reserves the right to revoke an individual s right to retain access to the card. If revoked, then the individual will have to check-out their card for use. 23

24 Minor Infractions Late P-Card Reconciliation Packets without notice to Procurement Card Manager Missing or inadequate receipt Missing Signature or Purpose on Receipt or Invoice Paying Invoices after Goods / Services have been received NSF Inaccurate completion of P-Card Reconciliation Packet Other infractions deemed as minor by the Director of Purchasing. First Offense P-Card Coordinator / End-User will be notified by the Purchasing Department via telephone / and alerted to the infraction. This will be considered a verbal warning Second Offense P-Card Coordinator receives Violation Report via . Cardholder, Coordinator and Department Head / Dean must sign this report and return it to Procurement Card Manager. Third Offense Card revoked or loss of P-Card Coordinator responsibilities. Cardholder blocked from new card for twelve (12) months. 24

25 Major Infractions Split transactions (to circumvent single transaction limit) Nonallowable purchases Failure to comply with NC State Contract Terms or IT / GA Contracts (without acceptable explanation) Allowing another individual to use your P-Card or number. Personal purchase that is made in error Other infractions deemed as major by the Director of Purchasing. First Offense P-Card Coordinator / End-User will be notified by the Purchasing Department via telephone / and alerted to the infraction. This will be considered a verbal warning Second Offense P-Card Coordinator receives Violation Report via . Cardholder, Coordinator and Department Head / Dean must sign this report and return it to Procurement Card Manager. P-Card privileges revoked until retraining occurs. Third Offense Card is revoked. Cardholder is not eligible for future p-card use. Criminal Activity Personal purchase that is intentional If you intentionally make a personal purchase, a theft of state property has occurred. Immediate card revocation will occur. Your division head, Senior Director of Business Affairs, and Police and Public Safety will be notified. Appropriate disciplinary action will be taken. The cardholder will not be eligible for future p-card use. 25

26 Appendix I: Internal Control Self-Assessment for Department Heads 1. Are card limits periodically evaluated to ensure limits are appropriate? 2. Upon initial setup of a card, are reviews done to ensure limits are correct? 3. Have procurement cards for employees who are no longer employed in the department been closed? 4. Do procedures exist to ensure that cards are returned to Purchasing on the date of employee termination or transfer from the department? 5. How many cards are within your department? 6. Is the individual whose name is shown on the card the only person allowed to use the card? Transactions 1. Are procedures in place to ensure unallowable items are not purchased using the p-card? 2. Are detection measures adequate to identify split transactions that may occur? 3. Is the NC Sales and Use Tax exemption number utilized when a purchase occurs? a. How many invoices include charges whereby NC Sales and Use Tax was paid to the vendor? b. Are statements reconciled by all cardholders in a timely manner? 4. Are invoices, cash register receipts, credit invoices, and packing slips available for each transaction with adequate documentation to denote the business purpose? Segregation of Duties 1. Is the person making purchases different than the person who is approving the purchases? 2. Is the person performing the reconciliation different than the person who is purchasing and approving the purchases? 3. Is the reconciliation packet reviewed, approved and submitted in a timely manner? 26

27 Appendix II: Purchasing Card Contact List University Contacts The Director of Purchasing, Insurance and Contracts, in the Financial Services department of the Business Affairs division of the university, is responsible for the day-to-day operations of the purchasing card program. The Purchasing Card Manager is available during work hours to assist campus employees with any questions regarding p-card policies and procedures. Allen R. Carnes Director of Purchasing P-Card Administrator Phone: Fax: Diane La Haie Purchasing Specialist P-Card Manager Phone: Fax: Bank of America (Bank of America) To contact Bank of America, call the number on the back of your card. Any time Bank of America is contacted, you should also contact the Procurement Card Manager. 27