Overview A. What is the Visa Purchasing card? The Purchasing Card is a Visa Card used by The University of Winnipeg employees to purchase materials and services up to $999.99 per item (excluding sales taxes, shipping, and handling charges). Visa is the preferred purchasing tool used to pay low dollar transactions. The Visa Card remains the property of the Royal Bank of Canada (US Bank). It may not be transferred to, assigned to, or used by anyone other than the designated Cardholder. The Cardholder will surrender the Visa Card upon request to the University of Winnipeg or any other authorized agent of the Royal Bank of Canada. The University of Winnipeg retains the right to cancel a Cardholders Visa Card privileges. Cards may be revoked for misuse or noncompliance with procedures. B. How does the Visa Card work? The Cardholder uses the Visa Card to purchase materials and services directly from the suppliers. Suppliers receive remuneration from the Royal Bank of Canada within two business days of requesting payment for materials and services provided. The University of Winnipeg remits payment to the Royal Bank of Canada by the 24 th day of each month. C. Purpose and Benefits of using the Visa Card. To simplify and reduce costs of purchasing and the payment process for transactions of materials and services up to $999.99 per item. The Cardholder uses the card to purchase materials and services without completing purchase orders or requisitions. All necessary service contract procedures must be followed, only the method of payment is changed. To simplify and reduce the number of invoices processed by the Accounts Payable Department. One monthly invoice is paid to the Royal Bank of Canada versus handling a large volume of low dollar invoices.
Cardholder Information A. Overview 1. The Visa Purchasing Card The University of Winnipeg Purchasing Card is a Visa Card used by the University of Winnipeg employees to purchase materials and services up to $999.99 per item (excluding sales taxes, shipping and handling charges). The Visa card is the preferred purchasing tool used to purchase low cost materials and services. 2. Purpose and Benefits of using the Visa Card. To simplify and reduce costs of purchasing and the payment process for transactions of materials and services up to $999.99 per item. The Cardholder uses the card to purchase materials and services without completing purchase orders or requisitions. All necessary service contract procedures must be followed, only the method of payment is changed. Suppliers receive remuneration from the Royal Bank of Canada within two business days of requesting payment for materials and services provided. To simplify and reduce the number of invoices processed by the Accounts Payable Department. One monthly invoice is paid to the Royal Bank of Canada versus handling a large volume of low dollar invoices. 3. Expense Distribution Each Cardholder is assigned a default account number. This number will automatically appear on each statement. This account number can be over-ridden when the statement is being reconciled. If for some reason the cardholder cannot reconcile a statement within the time frame, the default account code will automatically be charged. This can be adjusted by journal entries if necessary. 4. Visa Card Cycle Suppliers receive remuneration from Visa within two business days of requesting payment for merchandise or services provided. The University of Winnipeg remits payment to the Royal Bank of Canada by the 24 th day of each month. Statements are sent electronically to the cardholders by the 3 rd working day after the 10 th of each month.
B. Cardholders Responsibilities 1. General Responsibilities The card is used for payment of materials and services up to $999.99 per item (excluding sales tax, shipping, and handling charges). The transaction and credit limits on the card are determined by the Card Administrator (Accounts Payable Supervisor) and are dependant upon the requirements of The University of Winnipeg and the cardholder s Department. With the approval of the Purchasing Card application, the Cardholder has been delegated the expenditure and purchasing authority. The Cardholder will attach the appropriate receipts to the monthly statement and give to their Department Manager for approval. The Visa Card remains the property of the Royal Bank of Canada (US Bank). It may not be transferred to, assigned to, or used by anyone other than the designated Cardholder. The Cardholder will surrender the Visa Card upon request to the University of Winnipeg or any other authorized agent of the Royal Bank of Canada. The University of Winnipeg retains the right to cancel a Cardholders Visa Card privileges. Cards may be revoked for misuse or noncompliance with procedures. 2. Ordering and Receiving of Materials and Services The Cardholder is responsible for ensuring receipt of materials and services, and resolving receiving discrepancies or damaged goods issues. Ask the Supplier if they will accept the Visa Card The card is used for transactions of up to $999.99 per item (excluding sales taxes, shipping and handling). Items that are more than $1000.00 are capital goods and must go through the appropriate channels in the Purchasing procedures in order to be captured as fixed assets. When placing phone orders, provide the merchant/supplier with the following: - Purchasing Card account number (found on face of card) - Cardholder s name - The University of Winnipeg s full name - Expiry date of the Purchasing Card - Full Ship to address, including the designated recipient s full name - Cardholder s reference number (six characters- alpha numeric) The Cardholder will request that out of province suppliers not charge Sales taxes as we will self assess. Instruct the supplier to include in the delivery package a sales receipt, invoice or Visa charge slip itemizing the proper sales tax. Instruct the supplier to send any sales receipt or invoice directly to you rather than to the Accounts Payable Department. This will avoid the possibility of having the same invoice paid twice. The use of the telephone, fax, and mail are recognized and approved method of making purchases with the Purchasing Card.
Note: For security reasons, do not disclose your Purchasing Card number on the Internet. You may however, place your order on the Internet, if the merchant/supplier already has your Purchasing Card number on file. (E.g. you previously provided the supplier the card number by phone). All refunds, or any other credits, must be credited to the Purchasing Card. The receipt of cash, or any other settlement, is not permissible. Cash advances against the Purchasing Card are not permitted. The Cardholder is responsible for maintaining a current log of all purchases and credit activity to the Purchasing Card, including: - Cardholder s Reference Number (six alpha-numeric characters) - Order date - Merchant/supplier name - University budget number - Amount of the purchase (Canadian Funds) - Currency - Additional comments (optional) If approval is denied: - If a supplier advised that the card approval has been denied, it is most likely one of the established card limitations such as: -the purchase exceeds the single dollar transaction limit -the purchase is in violation of the Merchant Category code. E.g. you tried to book a travel expense. - The supplier will not have information as to the reason for denial, nor does the Cardholder have the authority to obtain this information from the Royal Bank of Canada. If a transaction is denied, the Cardholder should first ask the vendor to contact the Royal Bank to see why the transaction has been denied and secondly, contact the Card Administrator for assistance. The Card Administrator (Accounts Payable Supervisor) will contact the Royal Bank of Canada, obtain information on the denial and coordinate resolution of the issue. Note: If it is a large, one time transaction that you require, contact the Card Administrator prior to trying to place your order, and then the Card Administrator, will in turn, request a One-Time pre authorization. 3. Cardholder s Responsibility A. Reconciliation and Approval Process Statements will be electronically sent to the Cardholders by the 3 rd working day after the 10 th of each month Compare transactions listed on the activity statement with the actual sales receipt, credit slip or invoices. - Verify the transactions on the monthly activity statement with the retained receipts, sales slips, credit card slips, and/or invoices. - Verify the amount of each transaction
- Verify the correct account number is listed and that the Cardholder s reference number is listed. - Cardholder is required to attach to each monthly statement, all sales receipts, credit card slips, or invoices for the transactions listed on the statement - If no receipt is received: -If a receipt cannot be obtained after a reasonable effort, you should note no receipt on the statement next to the item. -This will be allowed on an exception basis only - If the supplier consistently neglects to provide the requested receipts, the supplier is not a good candidate for the Purchasing Card program and should not be used. Please notify the Card Administrator of this problem. For any disputed or questioned item: -To Resolve Billing Problems. - The Cardholder is responsible for settling any disputes, clearing erroneous charges and requesting credit for returned merchandise directly with the supplier first and with the Royal Bank of Canada if the problem cannot be resolved. - If you are in the process of resolving the dispute with the supplier, please indicate this next to the disputed item - If you are in the process of resolving the dispute with the Royal Bank of Canada, please indicate this next to the disputed item. Sign the statement Forward the reconciled statement and attached documents to your manager for review and approval within three working days of receipt of the monthly statement. -Cardholder s manager should review the reconciled monthly activity statement for overall legitimacy and accuracy of the charges. - The manager signs the statement, certifying the legitimacy and accuracy of the listed transactions within two working days of receipt from the Cardholder. Return the approved statement to the Purchasing Card Administrator (Accounts Payable Supervisor) Statements not returned, and/or not in compliance with policy, may result in Purchasing Card privileges being revoked. B. Resolving Billing Problems The Cardholder is responsible for settling any disputes, clearing erroneous charges and requesting credit for returned merchandise directly with the supplier first and then dealing with the Royal Bank of Canada if the issue cannot be resolved.
Note: Returns that are out of country should first be coordinated with Purchasing Services as they may be duties and taxes that can be recovered from CRA (Canada Revenue Agency) The Cardholder should contact the supplier directly to resolve any outstanding issues. Most billing problems can be resolved expeditiously in this manner. The Cardholder should send written notification of the disputed item to the Purchasing Card Administrator for information purposes. The Cardholder is responsible to follow-up with the supplier or the Royal Bank of Canada on any erroneous charges, disputed items or returns. If the vendor does not agree that an error has been made, contact the Royal Bank Customer Service using the 1-800 number on the back of your Visa Card. State that you would like to dispute the charge on your card. You will be asked to submit the information in writing so that the Royal Bank can research the disputed item. You may fax the completed Royal Bank Commercial Card Program Cardholder Dispute Form to your representative at Royal Bank. The amount on the next invoice will be reduced by the amount of the disputed item until the question is resolved. Any charge you wish to dispute must be identified in writing within 60 days of the statement date. Disputes will then be resolved by the Royal Bank within 90 days. The Cardholder is responsible for ensuring that the proper credit is given on subsequent statements. If an acceptable resolution can t be reached, contact you Card Administrator for assistance. C. Personal Expenses Charged on the Purchasing Card The Purchasing Card is to be used for authorized University expenses. Personal usage is not allowed with the Purchasing Card. If the card is accidentally used to make a personal purchase, please note personal charges next to the item on the monthly statement: - To reimburse the University, please make a personal cheque payable to The University of Winnipeg and attach the cheque to the Front of the statement. - The Card Administrator will deposit the cheque and credit your Departmental charge code. D. Expanding the Usage of the Purchasing Card You should encourage all suppliers to accept the Purchasing Card The supplier can contact their bank or the Royal Bank of Canada to become a Purchasing Card supplier. For those suppliers with a low dollar acceptance limit, they can contact the Royal Bank of Canada to have their acceptance limit increased. E. Renewals of Purchasing Cards
A renewal card will automatically be mailed to the Cardholder at the address on file. F. Lost or Stolen Purchasing Cards Report any lost or stolen Purchasing Cards immediately to the Royal Bank of Canada (see the List of Contacts) first and then the Card Administrator. The Bank will immediately cancel the card and forward a replacement card. If your card has been lost or stolen (or the card number has been scammed and is being used), notify your Card Administrator and contact the Royal Bank Customer Service. The number to call is 1-800-588-8067 or 1-416-955-5279. Written confirmation of cancellation must then be accomplished by mail or fax. G. Miscellaneous The Purchasing Card will not affect your personal credit rating in any manner, nor does it register or provide the Cardholder with any personal Visa charge card benefits or privileges. The Purchasing Card is the property of the Royal Bank of Canada and is assigned to the University s Agent for its proper use. The University has provided the use of the Purchasing Card on the basis of a limited delegation of authority and will review Cardholder activity by means of reports provided by the Royal Bank of Canada. Supervisor s/managers Responsibilities 1. Cardholder s Monthly Activity Statement Cycle Statements are sent to the Cardholders on or by the 3 rd working day after the 10 th of each month. The Cardholder should forward the reconciled statement, with receipts attached to the Manager of the Department within 3 working days of receipt of the monthly statement. - Review the statement for overall legitimacy and accuracy of the charges. - Acknowledge missing receipts by initialing the corresponding transaction on the monthly statement. (to be allowed on an exception basis only). After completing the review, sign the statement and promptly forward the package to the Purchasing Card Administrator (Accounts Payable Supervisor) by the 5 th working day after the 10 th of each month. By signing this document, the Manager is certifying agreement to the legitimacy and accuracy of the listed transactions. 2. Expense Distribution Each Purchasing Card is automatically linked to a specific default account code. This can be overridden if a transaction is to be charged to a different code. 3. Reassignment of Purchasing Cards For accountability reasons: -Purchasing Cards can only be used by the authorized Cardholder.
-Purchasing Cards cannot be reassigned to another employee other than the original Cardholder. -Each Purchasing Card is assigned to a specific employee. The Card cannot be transferred. 4. Cancellation Cards must be cancelled when personnel changes, transfers, reassigns, terminates and/or resigns. It is the Manager s responsibility to obtain the Purchasing Card from the Cardholder. Collect the Card. Cut the Card in half and forward, via a sealed confidential envelope, to the Card Administrator. The Card Administrator will complete the required forms and submit both the Card and the form to the Royal Bank of Canada. The University of Winnipeg may cancel a Cardholder s privileges at any time. Cards may be revoked for misuse or noncompliance of procedures. 5. Card Issuance Managers must authorize the issuance of a Purchasing Card. This is accomplished by signing the Purchasing Card application form. - The authorizer must have expenditure authority. - The authorizer establishes and changes the monthly credit limit for each card, by submitting an application to the Card Administrator. 6. General Responsibilities Know Cardholders roles and associated policies. Enforce Cardholders responsibilities and conformance to established policies. Card Administrator s Responsibilities A. General Responsibilities Purchasing Cards are issued at the discretion of The University of Winnipeg s management to qualified employees. The University may suspend or cancel any Cardholder s Purchasing Card privileges at any time. - It is part of the Cardholder Administrator s responsibility to ensure Cardholders are in compliance with the policies and procedures endorsed by The University of Winnipeg, including this document. If Cardholder statements are not being returned, the Card Administrator should then work with the Department Manager of the Cardholder to resolve any problems. - The Card Administrator will maintain, in a secure place, a list of Cardholders, the card numbers and the various limits for each card. - The Card Administrator will participate in program reviews and enhancements
- The Card Administrator will coordinate implementation of the Purchasing Card program within The University of Winnipeg. - The Card Administrator will verify the Manager s signature on the Purchasing Card application form. - The Card Administrator will verify the Manager s expenditure authorization signature and limit. B. For the Cardholder, the Card Administrator will: - Maintain a supply of Purchasing Card Agreement forms and Account forms. - Assist applicants with applications for new cards, changes, and deletions. - Provide copies of the Purchasing Card Policy and Procedures to Cardholders and Managers. - Train all Cardholders on the system and procedures. - Answer questions about the Purchasing Card program and its policies and procedures. - Read and understand Cardholder s and Manager s roles as outlined in subsequent sections of this document. - Fulfill Card Administrator s responsibilities identified in the Cardholder s and Manager s responsibilities sections. - Act as a first line of contact for Cardholders and Managers - Act as a liaison with the Royal Bank of Canada - Assist Cardholders (as a final step) in resolving billing disputes - Assist Cardholders if they lose cards.
Exclusions List Capital assets (items over $1000.) Controlled substances/items Personal or non-business purchases Cash advances Cylinder gases Catering Services where a signed contract is required Cellular phones and related monthly charges Construction and Renovation Consulting Services Animals/Live shipments Radioactive and hazardous materials Telecommunications Leasing Services Temporary Help Maintenance Contracts Firearms and Ammunition Systems Contacts Research Grant Purchases