Agency Fund Charge Card Policies and Procedures

Agency Fund Charge Card Policies and Procedures

Table of Contents Introduction.Page 1 General Guidelines..Pages 2-3 - Card Issuance - Account Maintenance - Card Usage - Limitations and Restrictions - Lost or Stolen Cards Purchases.Pages 3-4 - Authorized Purchases - Unauthorized Purchases - Travel and Entertainment Reconcilement and Payment..Pages 4-5 - Receipt Retention - On-Line Reconcilement of Purchases - Disputed or Fraudulent Charges Sales and Use Tax Page 5 Changes of Cancellation of Cards...Pages 5-6 AFCC Security..Page 6 - Cardholder Responsibilities - Supervisor Responsibilities Acknowledgement of Policies and Procedures..Page 7

Introduction The purpose of the Agency Fund Charge Card (AFCC) Program through Wells Fargo Bank is to streamline and simplify the purchasing and payment process for small dollar transactions funded by agency fund accounts (8XXXX series). These funds are held in trust for student organizations and because CNU is just acting as a fiscal agent, similar to a bank, purchases and travel related expenses are not subject to state procurement rules or state travel regulations. The sources of these funds are revenue from student led events such as fundraising and dues. The charge card will also fund the prepayment of the EZ Pass from an agency fund account (8XXXX) or a local account (5XXXX) but these accounts will be reimbursed from a state account, when applicable, after expenses are incurred. This card must not be used for any other state funded expense. The card will be reconciled on line so it is not mandatory that you maintain a purchase log but you must note the organization and expense code(s) on each invoice. You and your supervisor must sign the billing statement. The goal of the program is to: - Reduce the cost of processing small dollar purchases - Receive faster delivery of required merchandise - Simplify the payment process This reference guide will provide you with the particulars of the program, including general guidelines, reconcilement and record keeping procedures, and customer service information. It is important to read the following information carefully, as you will be responsible for adhering to the policies and procedures. CNU has a delegated AFCC (Agency Fund Charge Card) Program Administrator (PA) and PA backup. They are registered with Wells Fargo as the personnel authorized to make changes (e.g. add or cancel cards, change limits on cards, etc.), The Program Administrator and backup Administrator are: Geraldine Nelson Andrea Carter General Accounting Supervisor Fiscal Technician Senior Program Administrator Program Administrator Backup 594-8911 594-7789 gnelson@cnu.edu andrea.carter@cnu.edu 1

General Guidelines Card Issuance: As a cardholder, you will be asked to complete an Agency Fund Charge Card (AFCC) Request Form, which will then be signed, by your supervisor and the Program Administrator. The AFCC Request Form may be found at http://cnu.edu/businessoffice/forms/. By signing the request form, you have agreed to adhere to the guidelines established in this manual. Most importantly, you are the only person entitled to use the card and the card is not to be used for personal use. A required on-line training given by Wells Fargo must be completed before the card is issued. Cardholders will receive a Thank you for attending email after they have completed the training. This email must be forwarded to the AFCC Program Administrator (PA) before the card is issued. Upon receipt of your card, you will need to activate the account by calling the toll-free number printed on the card. For verification purposes, you will be asked to provide the last 4 digits of your Employee ID #. Although the card will be issued in your name, your personal credit history will not affect your ability to obtain a card. Account Maintenance: The only account information you are able to change online is your email address. Please contact your Program Administrator for any other changes such as a name change or a change to your purchase limit. Card Usage: The AFCC can be used at any merchant that accepts Visa. It may be used for in-store purchases as well as online, phone, fax or mail orders. There is no special terminal or equipment needed by the Visa merchant to process a card transaction. When using the card with merchants, please emphasize that you need an itemized invoice. Limitations and Restrictions: Your supervisor has assigned a credit limit to your card. There may also be a single transaction limit placed on your card, which means your card will be declined if you attempt to purchase more than this set amount at one time. Do not split a purchase to avoid the single transaction limit. If you believe the single transaction limit will inhibit optimum usage of the program, please discuss this with your supervisor. In addition to the single transaction limit, every cardholder has a total monthly dollar limit assigned to his/her account. As limitations vary by cardholder, please discuss the limit with your supervisor. If you believe your monthly limit to be insufficient for your requirements, your supervisor must contact the Program Administrator. A request for a temporary restriction removal or increase in spending limits may be sent via email to the Program Administrator. The email must contain at minimum the estimated date of the purchase, dollar amount, the reason for the purchase, and the length of time the restriction is to be lifted. A request for a permanent restriction removal or increase in spending limit must be submitted on the AFCC Request Form which can be found on the CNU webpage at http://cnu.edu/businessoffice/forms/. A memo from the cardholder s supervisor must accompany the form detailing a valid business reason for the permanent removal of the restriction or increased spending limit. 2

The AFCC program also allows for merchant category blocking. If a particular merchant category is blocked and you attempt to use your card at such a merchant, your purchase will be declined. Management has made an effort to ensure that the vendors/suppliers used during the normal course of business are not restricted. If your card is refused at a merchant where you believe it should have been accepted, you should call the Wells Fargo Business Purchasing Service Center at 1-800-932-0036 to determine the reason for refusal. Depending on the result of your inquiry, you may want to discuss the issue further with your Program Administrator, who is empowered to modify the restrictions on your use of the card. IMPORTANT: All requests for changes in limitations and restrictions must be made by your supervisor to the Program Administrator. Wells Fargo Bank will change existing cardholder restrictions only after a request is received from the Program Administrator. Lost or Stolen Cards: You are responsible for the security of your card and any purchases made on your account. If you believe you have lost your card or that it has been stolen, immediately report this information to Wells Fargo Bank Business Purchasing Service Center (BPSC) at 1-800-932-0036. the BPSC is available 24 hours day/7 days week. Immediately after reporting to the BPSC, you must inform your Program Administrator. It is extremely important to act promptly in the event of a lost or stolen card to avoid company liability for fraudulent transactions. As with a personal charge card, you will no longer be able to use the account number after notifying the bank. A new card should be issued within 48 hours of notice to Wells Fargo Bank. Purchases Authorized Purchases Purchases may include but are not limited to the following type items: Office supplies and forms Books and subscriptions Computer supplies, e.g., software and diskettes Day timers and calendars Professional membership dues Hardware and tools Spare parts Miscellaneous items Congratulatory or sympathy flowers Uniform Rentals/Cleaning Courier/Overnight Deliveries Travel and Entertainment Expenses Vehicle Expenses Unauthorized Purchases Items for personal use Transactions exceeding your single purchase limit Stock items available through our warehouse Alcohol 3

The card is not to be used for any product, service or with any merchant considered to be inappropriate for University funds. Failure to comply with the above guidelines for authorized purchases under the AFCC program may result in disciplinary action, cancellation of your card privileges, and possible termination of employment. Travel and Entertainment The card is intended to assist you with payment of expenses related to University business travel such as airfare, hotels, registration fees, and parking expenses. Reconcilement and Payment The Accounts Payable Department is responsible for paying the Wells Fargo billing statement each month. You have the ability to reconcile your account at any time. The billing period closes on the 5 th of each month. At the end of each statement period, you will receive an email from Wells Fargo that it is time to review your statement. You will access the Wells Fargo Commercial Card Expense Reporting tool via the Internet to review your statement. The statement will reflect the transaction date, posting date, supplier/merchant name and the total amount of the purchase. Receipt Retention: It is a requirement of the program that you keep all itemized receipts for goods and services purchased. For orders placed via phone, fax or mail, or online, you must request that an itemized receipt, detailing merchandise price, sales/use tax, freight, etc., be included with the goods mailed/shipped. (Note: a merchant should not reject this request, as it is a Visa policy). It is extremely important to request and retain itemized receipts, as this is the only original documentation that shows whether sales tax has been paid. As card records will be audited from time to time, it is essential to adhere to the above record keeping guidelines. The Business Office will retain all AFCC records for (3) three years plus the current fiscal year for auditing purposes or in accordance with the current Library of Virginia guidelines. On-Line Reconcilement of Purchases: It is your responsibility to ensure all the transactions posted are legitimate transactions, mark transactions for which receipts will be attached, and attach line item detailed point of sale receipts or delivery invoices. You will use the Commercial Card Expense Reporting tool to code the organizational and expense codes to each transaction or you may add additional information such as description or the reason for the purchase. All of the available functions will be part of your initial training and can be referenced in the Cardholder Quick Reference Guide. You will then mark the statement as reviewed. Once your statement has been marked as reviewed, an email will be sent to your manager for his/her approval. The statement, signed by you and your supervisor, along with all supporting documentation must be received in the Business Office by the 15 th of each month. The authorized approver on an organization code must sign the invoice if that person is not your supervisor. The invoices must be submitted to the Business Office in the same order as the on line transactions. Please make copies for your records. Disputed or Fraudulent Charges: If there is a discrepancy between your receipts and your statement, it is imperative that the issue is addressed immediately! Depending on the type of discrepancy, you will need to contact the merchant or complete the online dispute form to resolve the disputed transaction. 4

If you believe the merchant has charged you incorrectly or there is an outstanding quality or service issue, you must first contact the merchant and try to resolve the error or problem. If you are able to resolve the matter directly with the merchant, and the error involved an overcharge, a credit adjustment should be requested and will appear on your next statement. Note: The item should be highlighted on your record log as a reminder to verify that correct credit has been received. If the merchant disagrees that an adjustment is necessary, you will complete the online dispute form. The details of the disputed transaction will be entered online and followed up on by Wells Fargo Bank. Wells Fargo Bank must receive any charge dispute within 60 days of the transaction date. While pending resolution, Wells Fargo Bank will credit the company s account for the amount of the disputed transaction. Although Wells Fargo Bank acts as the arbitrator in any dispute, you should never assume that a dispute will be resolved in your favor. If the dispute is not resolved to your satisfaction, and you believe the merchant has unfairly treated you, please notify your manager with the relevant details. If the merchant is one of our preferred vendors, our purchasing department may take further action. Any fraudulent charge (i.e., a charge appearing which was not authorized by you) must be reported immediately to your Program Administrator. Prompt reporting of any such charge will help to prevent the company from being held responsible. A Declaration of Forgery or Unauthorized Use form may be required and will be sent to, if applicable. Sales and Use Tax With the exception of lodging and prepared food, the University is exempt from Virginia sales tax. Please contact the Accounts Payable office if you need a tax exemption form. It is your responsibility to request a credit for sales tax erroneously charged within 30 days. Questions regarding this policy and any other questions concerning tax issues should be addressed to your Program Administrator. Changes or Cancellation of Cards Cardholders should contact the Program Administrator to have changes made to existing cards. Changes/cancellations include but are not limited to: Restriction or card limit changes Name change. Legal documentation must be submitted to the Program Administrator in order to change the name on your card and account Separation from the University Change in job responsibilities (use/need of card may change) Change in supervisor or designee Telephone number change Address change Change in email address If transferring from one University department to another, the cardholder must contact the Program Administrator for assistance to determine if continued use of the card is necessary. New forms must be completed if use continues in a new area with new supervision. The cardholder must also return the card when terminating employment. When the card is returned, all outstanding logs and backup documentation must be submitted to the cardholder s supervisor. The 5

cardholder should ensure all outstanding issues on their final statement have been addressed before turning in their card. If there are outstanding issues that cannot be resolved prior to turning in their card, the file should be documented and the supervisor/reviewer or designee must be notified. The cardholder s documentation/files are still subject to audit and review for a period of three years. AFCC Security Authorized use of the card is limited to the person whose name appears on the face of the card. Cardholders must not lend their card to another person. Cardholders scheduled to be absent from work for an extended period of time (two weeks or more) are required to notify the Program Administrator. If the cardholder is absent from work and is not able to coordinate time off in advance, the cardholder s immediate supervisor/reviewer or designee must contact the Program Administrator. When not in the cardholder s physical possession, the card should be kept in an accessible but secure location within the office, such as a locked file cabinet or desk. The cardholder should not post the card account number or leave the card in a conspicuous place. The cardholder should possess the card only when conducting official University business. Never make a photocopy of a card. Faxing, mailing or emailing (even in an attachment) the AFCC complete account number is prohibited. Order forms may be faxed to a vendor omitting the account number. The AFCC number should then be provided to the vendor by phone. Cardholder Responsibilities 1. Maintain the card and the card account number in a secure location for the individual cardholder s use only. 2. Comply with the procedures in this manual when obtaining goods and services or returning items. 3. Inform the vendor of the University s tax exempt status. 4. Maintain all supporting documentation of all transactions to include itemized invoice, receipt of goods, etc. 5. Ensure all internet orders are in compliance with these procedures. 6. Ensure items purchased are not restricted purchases. 7. Return the card to the Program Administrator when requested by the supervisor/reviewer or designee or the Program Administrator. Also, return the card when terminating employment and notify the Program Administrator if transferring from one University department to another. 8. Complete all required training in a timely manner and sign the Acknowledgement of Policies and Procedures form. 9. Complete and submit statement and supporting documentation to Accounts Payable by the 15 th of each month. Supervisor Responsibilities 1. Provide the cardholder access to University policies and procedures. 2. Submit a card request form for employee along with the Acknowledgement of Policies and Procedures Form. 3. Review/approve cardholder s statements ensuring compliance with this procedure 4. Revoke cardholders purchasing authority for misuse of the card. Obtain and return card to the Program Administrator. 5. Respond to the Program Administrators requests in a timely manner (i.e., review of cardholder spend limits, cardholder noncompliance correspondence, etc.) 6. Complete all required training in a timely manner. 7. Delegate designee if required. 6

Acknowledgement of Policies and Procedures You must complete an Acknowledgement of Policies and Procedures Form that your supervisor will submit to the Program Administrator with your AFCC Request Form. Your signature on this form means you agree to adhere to the guidelines set forth in the Acknowledgement Form and this manual and failure to do so may result in the revocation of your AFCC privileges and result in disciplinary action up to and including termination. The Acknowledgement of Policies and Procedures form and be found at http://cnu.edu/businessoffice/forms/. 7