TRUMAN STATE UNIVERSITY
PROCUREMENT CARD PROGRAM
POLICIES & PROCEDURES MANUAL
- PROGRAM OVERVIEW
The Truman State University Procurement Card (P-Card) Program is designed to provide a more efficient, cost-effective method of making routine purchases and payments for small-dollar transactions within established guidelines. Under this program, qualified purchases and payments can be charged directly to the P-Card. All P-Card transactions are billed to the University and paid directly to the card-sponsoring bank. The P-Card Program utilizes a Visa credit card issued by UMB Bank of Kansas City through a contract established by the State of Missouri, Division of Purchasing and Materials Management.
The P-Card program transfers purchasing/payment capability directly to the Cardholder within specified guidelines and limits determined by existing policies and the Cardholder’s Dean/Department Chair. This Program is designed to improve efficiency, provide convenience for Departments, reduce the number of requisitions, purchase orders and checks issued, minimize invoice payment processing time and improve the purchasing procedures for routine purchases and payments.
Participation in the P-Card Program is a convenience that also carries responsibilities.
Although the card is issued in an individual’s name, the card is the property of Truman State University; therefore use of the card will not affect the Cardholder’s personal credit. However, it is the responsibility of the Cardholder to ensure the P-Card is used within the stated policies and procedures.
All Cardholders are required to read the Procurement Card Program Policies and Procedures Manual and attend a training session prior to receiving the card.
The P-Card is assigned to a specific individual, whose name will appear on the front of the card and will be designated as the Cardholder. The Cardholder is the only person authorized to use the assigned card and is responsible for all transactions. Under no circumstances may a Cardholder allow another individual to use his or her card. The University will hold the Cardholder fully responsible for all unauthorized purchases and any other fees associated with those purchases.
The University Procurement Card Program, under the guidance of the Procurement Card Coordinator, requires that an audit of each Cardholder’s supporting documentation be performed and recommendations made for corrective or disciplinary actions needed. It is the responsibility of the Cardholder to submit any necessary corrections or missing documentation to the Accounts Payable Office for further review.
Responsibility for financial control and stewardship of the Procurement Card Program resides with each Department. The Department is responsible for ensuring that each Cardholder is performing their purchasing duties with competence and honesty, and for monitoring the effectiveness of the accountability structure. Effective controls provide the University and the Department with reasonable assurance that institutional objectives have been achieved through sound financial management. Accounts Payable is available to assist Departments with training, technical assistance and financial/operational reviews regarding the P-Card Program.
Through effective controls, the University and the user Department are able to:
- Safeguard University assets
- Prevent, detect and correct errors and irregularities
- Ensure reliability of financial information
- Ensure compliance with program policies and procedures
Abuse or misuse of this privilege may subject a Cardholder to disciplinary action, which may include but is not limited to, being placed on probation or the closing of the card account. Furthermore, use of the P-Card for personal purposes or the loaning of the card to any other individual may also subject a Cardholder to disciplinary action and other measures taken against the cardholder, in accordance with University policies and procedures, up to termination.
- PROGRAM BENEFITS
The P-Card Program goal is to streamline the process, while improving flexibility and speed with which goods and services are delivered. The P-Card is intended for anyone authorized to make University purchases within their Department. With few exceptions, the card should be used whenever possible to make University purchases within the guidelines of the program. Responsibility and accountability for the card resides at the Department level.
The P-Card Program was established based on its ability to provide the following benefits:
Benefits to the University:
- Cost-savings by consolidating payments (one monthly payment to Visa vs. multiple payments to enumerable individual vendors
- Overall reduction in paperwork for routine purchases and payments
- Online system providing for electronic reporting and review of transactions
- Allows the Purchasing Department to devote knowledge and time to processing requests for bids, proposals and establishing contracts.
Benefits to the Cardholder:
- Enables Cardholder to make routine purchases and payments more quickly
- Quicker delivery of goods and services
- Purchases can be made directly with vendors, even outside of normal business hours
- Reduces number of requisitions processed by Department
- Minimizes need for petty cash
- May be used anywhere that accepts Visa, providing flexibility for the Cardholder
- Reduces need for advance money or personal out-of-pocket funds to make purchases
- No waiting for reimbursements or payments
Benefits to the Vendor:
- Vendor receives payment from Visa within 72 hours vs. 30 day payment terms
- Reduced administrative invoice and collections costs
- No hassle of waiting for Purchase Order or payment by check
- Allows vendor to provide direct customer service
III. PROGRAM CONTROLS
Eligibility/Issuance of P-Cards
- Applicant must be a current Truman State University faculty or staff member and be designated as authorized to make University purchases within their Department.
- Applicant must submit the P-Card Application from Blackboard, which must be supported and approved by his or her supervisor with budgetary authority.
- Applicant must attend a mandatory training session on Procurement Card Policies and Procedures prior to being issued a P-Card.
- Applicant must sign the Procurement Card Program Cardholder Agreement in advance of receiving the P-Card and must sign the back of the p-card in the presence of a member of the Business Office staff. Cardholder may sign name as it appears on the p-card or may write “Request ID” in lieu of a signature.
- The P-Card may be used for allowable purchases and payments as described in this manual (See Allowable and Excluded Charges section of this manual).
- Cards will be automatically renewed upon expiration. The cardholder’s supervisor with budgetary authority is responsible for advising the Business Office of the termination of employment or transfer to another position within the University to ensure their P-Card is deactivated in a timely manner.
Billing Cycle Limits and Transaction Limits are established at $3,000 and $1,000 unless otherwise requested and justified by the Department and approved by Accounts Payable.
- Transaction Limit: Purchases must not exceed the Cardholder’s approved transaction limit. The transaction limit refers to the total transaction amount (including any shipping charges, fees, currency exchange etc.) per vendor, per day. For example, for a transaction limit of $1,000; the Cardholder must not spend more than $1,000 with any single vendor in a single day, regardless of number of purchases to that vendor.
o Splitting or Stringing Purchases: Dividing an order to the same vendor that exceeds the transaction limit into two or more orders in the same day is considered splitting or stringing an order and is not allowable. If you place separate orders to the same vendor in the same day for funding purposes, please indicate this on the receipt.
If the dollar amount of the item(s) exceeds the established card limits, the order should be processed on a requisition and submitted to Accounts Payable. Registration and Domestic Airfare Fees are the only allowable split purchases. Each registration must be within the Cardholder’s transaction limit, with multiple registrations not to exceed the lesser of $5,000 or the Cardholder’s billing cycle limit. Any individual airfare over $1,000 must be processed on a requisition. Each airfare purchase must be within the Cardholder’s transaction limit. Multiple airfare purchases exceeding the lesser of $5,000 or the Cardholder’s billing cycle limit must be processed on a requisition.
- Monthly (Billing Cycle) Limit: Unless otherwise requested, the cycle limit shall not exceed $3,000. Billing Cycle Limits over $3,000 are available upon request and justification by the Department and approval by Accounts Payable.
ALLOWABLE AND EXCLUDED CHARGES
All purchases made with the Procurement Card must be for expenses associated with official University business. Use of the Procurement Card for unauthorized, inappropriate, or personal items may result in penalties as indicated in this Procurement Card Policies & Procedures Manual.
The University Procurement Card may be used for making routine purchases and payments for small-dollar transactions within specified guidelines. Generally, the Procurement Card can be used if ALL of the following conditions are met:
- For University Business use
- Transaction is within Cardholder’s transaction and cycle limit
- Item is not listed on Procurement Card Excluded Charges List
- Tax reporting is not an issue (Repair Service/Professional Services are 1099 reportable and therefore are not an allowable charge)
Following is a list of the types of allowable purchases. This list is not intended to be a complete list of allowable purchases that can be made with the P-Card, but is intended to assist the Cardholder and Dean/Department Chair in understanding a general idea of acceptable purchases.
ü general office supplies for daily operation
- pens, folders, binders, index tabs, staples, Post-It notes, storage boxes for record retention, toner, ink cartridges, media storage
ü news journals, periodicals and magazines
- subscriptions must be set-up in the University’s name and be mailed to a University address
ü advertisement of faculty/staff position openings (only after position and ad have been approved through all channels)
- A copy of approved ad and HR Search Papers must be included as supporting documentation
ü general supplies and cleaning supplies not provided through another University office
- i.e. copy paper should be ordered through Printing Services
ü books, directories, video tapes, audio cassettes
ü repair parts for repairs to be made by University personnel
- the p-card may not be used for repair service provided by an outside vendor
ü institutional memberships
ü individual memberships with written approval from the appropriate President’s Staff Member
- The policy for memberships is available on the Business Office/Accounts Payable website
ü P-Card with Travel Privileges – Travel Expenses are an excluded charge unless the cardholder is specifically authorized on the application for a P-Card with Travel Privileges.
Approved DOMESTIC travel expenses only
- individual airfare less than $1,000
- train fare
- rental vehicles (excluding fuel expenses)
- lodging (including hotel self-parking fees and hotel internet connection fees)
The following list of Excluded Charges indicates items that are not allowable for purchase with the Procurement Card.
Department needs for excluded charges should be processed on a requisition or a voucher.
- Cash Advances.
- Personal Items or Loans.
- Gift cards, gift certificates, awards, and prizes. **The awards/gifts/prizes policy is available on the Business Office/Accounts Payable website.
- Condolence expenses.
- Food Items/Alcoholic Beverages. Sodexo food purchases should be paid via a requisition.
- Furniture and appliances.
- Cylinder Gases.
- Hazardous Materials.
- Radioactive Materials.
- Firearms, ammunition, and other explosive materials (including gasoline, kerosene, diesel, natural gas, propane, etc).
- Construction, renovation, or rehabilitation projects. Also, any project that includes the replacement or new installation of carpeting, blinds, tile, air conditioners, heaters, etc.
- Repetitive Orders and Split Purchases: Orders for like items in excess of $5,000 in a 6-month period that would require bid process by Purchasing (except items available via an established contract). Purchases must not be split to circumvent purchasing policies. If the dollar amount of an item(s) exceeds the established card limits, a departmental requisition must be submitted for the purchase. (Registration and Domestic Airfare Fees are the only allowable split purchases. Each registration must be within the Cardholder’s transaction limit, with multiple registrations not to exceed the lesser of $5,000 or the Cardholder’s billing cycle limit. Any individual airfare over $1,000 must be processed on a requisition. Each airfare purchase must be within the Cardholder’s transaction limit. Multiple airfare purchases exceeding the lesser of $5,000 or the Cardholder’s billing cycle limit must be processed on a requisition.)
- ITS Approval Required: The policy in place for purchasing all technology items is to fill out a Peripheral Request Form for ITS approval and then submit with a requisition for processing by Purchasing. ITS makes sure the item requested is compatible with our network and with your system. It is best to check with ITS before purchasing any item you think might be considered “technical” and they will let you know whether a form is required or not. Some examples of items requiring ITS approval are internal hardware-memory, wireless card, hard drive, cd/dvd drive and peripherals-monitor, printer, scanner, uninterrupted power source (ups), etc.
- Equipment Items: Items regarded as equipment (items that are considered a fixed asset; including equipment accessories, computer components/peripherals, etc. that add to the value of an existing fixed asset item). Examples include computers, high-dollar electronics, projectors, desks, etc.
- Term Contracts: Items or Services on exclusive Term Contracts (i.e. express mail, telephone or cellular phone airtime, scientific supplies).
- Travel Expenses are an excluded charge unless the cardholder is specifically authorized on the application for a P-Card with Travel Privileges.
The following travel expenses are not allowed on the p-card even if authorized for a P-Card with Travel Privileges:
- international travel expenses
- any individual airfare over $1,000
- multiple airfare purchases exceeding the lesser of $5,000 or the Cardholder’s billing cycle limit
- meals and other incidental expenses such as taxi, parking, hotel telephone calls, vehicle fuel may not be charged to the p-card
- All printed material (apparel, pens, paper, PR items, embroidery, etc.) is excluded because printing is a professional service. This even applies to items that do not include the University logo and those that do not include Truman in the wording. In addition, all printed materials must be approved thru Publications or Public Relations and therefore must be submitted on a Departmental requisition.
- Maintenance, Warranty, Service, and Licensing Agreements (including multi-user software licenses) are not an allowable purchase with the p-card since these are contractual agreements and need close monitoring for compliance..
- Professional Services (i.e. medical services, repairs, royalties, printing, customized items, ads (excluding faculty/staff position openings), rentals, leases, web services, etc.) because these are subject to 1099 reporting. Professional services is a very broad category, so if you have any questions please contact Accounts Payable.
- Trade-In Allowances: Purchases involving Trade-In of University Property.
- Sales Tax: The Cardholder is responsible for insuring that Missouri sales tax is not charged at the time of purchase. The University’s tax-exempt number is on the front of each card. Some vendor’s may request a copy of the tax-exempt form. Please contact Accounts Payable/Purchasing for a copy if needed. If tax is charged, the Cardholder is responsible for contacting the vendor to have the charge refunded.
- Conflict of Interest Expenses: As with any other purchase made for the University, a Cardholder shall not purchase goods or services from a member of their immediate family or realize personal gain in any form, which would influence improperly the conduct of their University duties. The Cardholder shall inform their supervisors in writing of reasonable foreseen potential conflicts.
- University Printing Services and Campus Mail Services: Purchase of goods or services available from these entities should be made from University sources whenever feasible. Copy paper should always be purchased thru University Printing Services backcharge system. If an item is not available thru Printing Services, it might be allowable to purchase off campus, but please contact Purchasing first. All U.S. mail, including parcel post, certified and registered mail should be sent through Campus Mail Services.
- Foundation or Agency purchases-except for those individuals with a separate card for Foundation purchases.
- Unallowable Grant expenses: Cardholder is responsible for verifying that the purchase meets allowable charges of a grant prior to placing an order.
- Expenses over the Cardholder’s approved transaction or cycle limit: The transaction limit is per vendor per day and applies to the total transaction amount (including any shipping charges, fees, etc.).
- Unapproved purchases: Cardholder is responsible for following proper internal procedures specific to their Department to obtain authorization to make the purchase.
- Any purchase that exceeds a department budget’s available balance: Cardholder is responsible for verifying funds are available prior to placing an order.
- All Software Purchases.
Exceptions to the Excluded Charges List
At times there may be a need or benefit to the University to expand the use of the card to make purchases or payments which may require an exception to the Procurement Card Excluded Charges list. Such exceptions must be pre-approved in writing by the Accounts Payable Office. Please contact Accounts Payable for a copy of the Request for P-Card Excluded Charge Exception Form.
Approved exceptions to the excluded charges list should be documented in each month’s supporting documentation. A copy of the approved request form is an acceptable form of documentation.
Hazardous Materials – Items that may be flammable, corrosive, reactive or toxic are considered hazardous and may be purchased with the Procurement Card, but only by or on behalf of a person with a Registered User Number. Only Departments given prior approval through a Request for P-Card Excluded Charge Exception Form can use this option.
P-Card with Travel Privileges
With specific approval, the Truman State University P-Card may include the ability to pay for travel expenses, with certain guidelines and restrictions. It is the responsibility of the Cardholder, with the assistance of their supervisor, to ensure that the University’s travel policies are being followed before they put any charges on their card.
Policies and procedures for the use of the P-Card apply when used for approved travel purchases. Responsibility and accountability for travel purchases reside at the Department level.
Approval for this privilege may be obtained by indicating this preference on the Procurement Card Account Action Request Form or by submitting a Request for P-Card Excluded Charge Exception Form.
Allowable Travel Expenses
Expenses for domestic travel only
-Lodging (including hotel self-parking fees and hotel internet connection fees, provided the internet fees are for the purpose of administering University business)
Allowable travel expenses may be purchased for non-employees when the University pays their travel, i.e. candidates on recruiting visits, etc.
Excluded Travel Expenses
- International travel expenses; must be submitted on a requisition and processed through Accounts Payable/Purchasing.
- Any individual airfare over $1,000 must be processed on a requisition. Multiple airfare purchases exceeding the lesser of $5,000 or the Cardholder’s billing cycle limit must be processed on a requisition.
- Meals and other incidental expenses such as taxi, parking, hotel telephone calls, internet connection charges, vehicle fuel may not be charged to the P-Card. These expenses are to be submitted on an Expense Report and processed through Accounts Payable for reimbursement.
- Sales tax on Missouri lodging vendors; the University is exempt from Missouri sales tax and therefore the Cardholder should ensure that sales tax is not charged. Our sales tax exemption form can be found at the following URL: http://businessoffice.truman.edu/ap/exemption/2002_tax_exemption_letter.pdf
If you are reserving a hotel room in Missouri, you need to notify the hotel of the University’s exempt status and you will usually need to send a copy of our tax exempt letter to them.
There are several types of taxes that we are required to pay, such as hotel tax, lodging tax, bed tax, room tax, city development fee. Thus, we are only exempt from Missouri sales tax.
Sales tax charges from hotels in other states will not be exempt from Missouri sales tax
The University is not exempt from the taxes imposed on airline tickets
- ROLES AND RESPONSIBILITIES
Ø Ensure the physical security of the card and protect the account number. Immediately notify UMB Bank and Accounts Payable when the card has been lost, stolen or misused.
Ø Follow strict adherence that the only person authorized to use the P-Card is the Cardholder whose name appears on the front of the card. Under no circumstances may a Cardholder allow another individual to use his or her card.
Ø Verify availability of funds, purchase is an allowable charge and that the amount meets the spending limits approved for the card. Splitting or stringing purchases to circumvent the limits approved for the card is prohibited.
Ø Ensure that Missouri sales tax is not charged on qualifying purchases.
Ø Obtain original itemized receipts for all purchases and payments made to the card as well as any other required documentation to support the purchase. You must have an original receipt for every card transaction. Receipts are crucial to the integrity of the University’s Procurement Card Program.
Ø Document a valid and clear business purpose for each transaction explaining why the purchase is necessary to conduct University business. A well documented business purpose is an important aspect of the P-Card Program as it identifies to the University’s auditors the function and necessity of the purchase.
Ø Review charges throughout the month and check the accuracy of all charges and watch for unauthorized purchases made to the card.
Ø Reallocate transactions to the proper expense account by the designated deadlines thru the online reconciliation website.
Ø Compile all required supporting documentation for each billing cycle, obtain proper approval signatures and submit to Accounts Payable by the designated deadlines.
Ø Retain copies of Cardholder Statements and all supporting documentation for a period of two (2) years. These records are subject to review by University officials and auditors.
Ø Monthly/periodic audits of Cardholder’s supporting documentation are performed by the Accounts Payable Office. Audit findings are reported to the Cardholder and it is the responsibility of the Cardholder to provide any additional documentation, make corrections and/or provide justification requested as the result of audit findings to ensure compliance with the P-Card Program policies and procedures.
Ø Upon cardholder termination of employment or transfer to another position within the University, the cardholder is responsible for turning the p-card in to their Supervisor to have the account closed, completing any outstanding reallocations and submitting documentation for all outstanding purchases.
Reviewer Responsibilities (Dean/Department Chair)
Ø Sign Cardholder Application, Account Action Request Form, for selected individual(s)designated as authorized to make University purchases within their Department.
Ø Execute administrative oversight and establish internal Department controls sufficient to regulate the Department’s P-Card activities. The responsibility for appropriate use of the card is not only the responsibility of the Cardholder, but also the Reviewer.
Ø Review and monitor P-Card activity of Cardholder(s) and verify that all purchases are in accordance with the University Procurement Card Policies & Procedures, all other University policies, pertinent State of Missouri policies and any internal policies set forth by the Department.
Ø Report any abuse or misuse of the card by the cardholder. Additionally, it is the responsibility of the Reviewer to terminate cardholder privileges if repeated and/or blatant misuse of the Procurement Card.
Ø Review monthly supporting documentation; verify legitimacy of all transactions, that transactions have been applied to the proper expense account and the existence of a valid and clearly stated University business purpose for each transaction. Sign the Cardholder Statement with each month’s supporting documentation and forward to Accounts Payable by the designated deadline.
Ø Upon cardholder termination of employment or transfer to another position within the University, it is the responsibility of the Dean/Department Chair/Supervisor to collect the P-Card and return it to the Accounts Payable Office along with a completed and signed Account Action Request Form indicating to close the account. Furthermore, it is the Dean/Department Chair/Supervisor’s responsibility to ensure the Cardholder has reviewed and reconciled all outstanding purchases prior to leaving the University or transferring to another department.
Accounts Payable Responsibilities
Ø Daily operation and management of the P-Card Program; approval of new card requests, spending limits, submit new card requests to bank, address requests for changes to current cards.
Ø Provide mandatory New Cardholder Training and other training regarding changes to the program and refresher training as needed.
Ø Assist Cardholders with reconciliation thru the online website and with supporting documentation requirements.
Ø Assist Cardholders with dispute claims, declined purchases, lost/stolen/misplaced cards and obtaining replacement cards.
Ø Ensure payment to UMB Bank is accurate and made in a timely manner.
Ø Provide Cardholder reports to Administrators and Departments as requested. Assist Cardholders with reporting capabilities available thru the online website.
Ø Perform monthly/periodic audit of all Cardholder’s supporting documentation to ensure compliance and look for trends. Discuss findings with Card Coordinator and report findings to Cardholders; requesting additional documentation or justification as needed to comply with program.
V. PROGRAM PROCEDURES
Determine if P-Card is the Best Choice
The Cardholder may place orders or make purchases and payments by in person, phone, facsimile, mail and by Internet. Regardless of method of purchase:
The Cardholder must determine the following, prior to placing an order or making payment with the P-Card:
1.Follow proper internal procedures specific to your Department to obtain authorization to make the purchase. The fact that you have been provided with a card does not imply prior approval of all purchases.
2.Verify purchase is an allowable charge, (see Allowable & Excluded Charges section; pages 8-10).
- Verify purchase has a valid and clear University business purpose and is necessary to the mission of the Department.
- Verify vendor chosen accepts Visa. It is preferred that Minority Vendors be used anytime possible.
- Verify availability of funds by checking available budget thru TruView. **NOTE: Keep in mind that P-Card charges are posted to Banner only twice each billing cycle, therefore Cardholder must deduct any transaction amounts since the last upload to obtain the actual available balance.
- Ensure total amount of order or payment is within approved transaction and cycle limits.
Making a Purchase or Payment
v Provide P-Card information as requested by vendor; Cardholder name as it appears on the card, billing address (Cardholder’s address as indicated on the monthly statement), shipping address (include Department Name as part of the address).
v Verify accuracy of charges; including verifying the proper amount is being charged and that Missouri sales tax has not been charged. It is recommended that the Cardholder ask vendors if educational pricing is available.
v Obtain an original itemized receipt or paid invoice for each purchase or payment. If an itemized receipt is not available at the time of purchase, be sure to request that it be sent with your order or faxed to you when the charge is actually run through for payment.
v For credits/returns/exchanges, please include a credit memo when possible, a copy of the original order receipt and a Returned Goods Form if applicable. For tax credits, please provide a copy of the original order receipt and a credit memo when made available by the vendor. Not all vendors provide credit memos, but most will if you request one.
v Document a valid and clear business purpose for each transaction explaining why the purchase is necessary to conduct University business. A well documented business purpose is an important aspect of the P-Card Program as it identifies to the University’s auditors the function and necessity of the purchase.
An acceptable itemized receipt must include the following:
- Vendor Name
- Itemized description of item(s) purchased. If the receipt provided only includes the total purchase amount, attach the detailed receipt, order form or packing list with detailed information to the receipt.
- Quantity of each item and itemized unit price(s)
- Shipping charges (if applicable)
- Grand total of order
**NOTE: Copies or facsimiles are acceptable only if the original cannot be obtained. If an original is not provided with supporting documentation, an explanation as to why the original is not available must be provided. A packing list or picking ticket may only serve as a replacement for an original receipt if it includes all required information as indicated above.
If the Cardholder does not receive an itemized receipt or a receipt is lost or destroyed, cardholder must first contact the vendor and request a duplicate receipt. If a duplicate receipt is not made available by the vendor, the Cardholder may request a copy from UMB Bank. The bank will provide the copy for a $5.00 fee, which will be charged to the Cardholder’s VISA Account.
Document a valid and clear business purpose
The business purpose is not merely a re-statement of what item(s) were purchased, but must indicate the intended use of the item(s);
Examples of a clear and valid business purpose:
- Office supplies FOR daily office operation
- Reference materials FOR professional library
- Books FOR student reference
- Binders FOR international student orientation
- Batteries used in remote control device FOR conducting group exercise classes
- Frame FOR NCAA post-graduate scholarship certificate
- Replacement part FOR Stairmaster exercise machine
Sales Tax Exemption
The Cardholder is responsible for insuring that Missouri sales tax is not charged at the time of purchase. The University’s tax-exempt number is on the front of each card and a copy of the University’s Missouri Tax-Exemption Certification is included in the Forms section of this manual.
In some cases, the University’s tax exempt status cannot be accommodated for orders placed over the Internet. In those instances, the vendor must be contacted by phone to determine the appropriate method for handling the purchase to ensure that sales tax is not charged.
If tax is charged, the Cardholder is responsible for contacting the vendor to have the charge refunded. Under no circumstances should the Cardholder accept a cash refund. If the vendor is unable to apply the tax refund to the P-Card, a check from the vendor may be accepted. In this case, the Cardholder must indicate the proper budget and expense account when submitting the check for deposit at the Cashier’s Office. The deposit should be applied to the same budget and expense account that the original charge was applied to. Cardholder should include the deposit receipt as part of the supporting documentation.
Keeping Track of Purchases/Payments
It is recommended that each Cardholder keep a transaction log of all purchases and payments made with the P-Card.
NOTE: Following the New Cardholder Training, a transaction log with a beginning transaction number sequence will be emailed to each Cardholder to assist the Cardholder and Mail Services with tracking.
It may help to ask the vendor if they can reference your transaction number on the order and if possible include this number along with the Department Name on the shipping address.
The University’s Mail Services Department is provided a list of Cardholders and the beginning letters of each Cardholder’s transaction number sequence in order to help facilitate proper delivery, i.e. SCI for Science, SCI001, SCI002, SCI003, etc…
Be sure to ask the vendor for a confirmation number when placing an order and record this confirmation number on the transaction log. This will help when contacting the vendor to check status or resolve issues with the order.
If a Cardholder’s P-Card is declined by a vendor, the Cardholder should immediately contact UMB Bank Customer Service at the number listed on the back of the card to determine if the card has been declined in error or if there is a problem with the account; purchase exceeds transaction or cycle limit, etc…
The Cardholder may also contact the Accounts Payable Office for assistance.
If a purchase being made outside of normal University business hours is declined, the Cardholder must find an alternate payment method or terminate the purchase and contact the bank or Accounts Payable during normal business hours.
Receipt of Goods, Returns, Damaged Goods and Credits
The Cardholder is responsible for ensuring receipt of goods and materials and must follow-up with the vendor to resolve any delivery problems, discrepancies, damaged or defective goods.
If goods purchased with a P-Card need to be returned, the Cardholder should work directly with the vendor. A Returned Goods Form is available to help with this process and may be required as part of the Cardholder’s supporting documentation, if requested by the Business Office. A copy of this form is included in the forms section of the manual; and may also be obtained under the Accounts Payable section under Forms on Business Office website at http://businessoffice.truman.edu/ or by contacting the Accounts Payable Office.
TIPS REGARDING RECEIPT/RETURN OF GOODS:
- Always retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. Some items such as fragile pieces cannot be returned without the original packaging materials.
- Read all enclosed instructions carefully. Often a phone number and other instructions are included on the packing slip and/or receipt.
- Many suppliers require you to obtain a “Return Authorization Number” before they will accept a return. If you neglect to get this number when it is required, the package may be refused and/or the credit may not be issued to your account..
- Request a credit receipt for returned items. Some companies may not provide this receipt unless requested.
- In some cases there may be a restocking fee (usually a percentage of the purchase price). If the supplier is completely responsible for the error or problem you should not have to pay this, or any other fee. However, if they are not fully responsible you may have to pay. You may use the P-Card to pay this fee as long as it does not exceed any of your limits.
- Make sure that the charge for the returned items:
- Never appears on the monthly billing statement, or
- Is credited properly.
- Under no circumstances should a Cardholder accept cash in lieu of a credit to the P-Card. If the vendor is unable to apply the credit to the P-Card, a check from the vendor may be accepted. In this case, the Cardholder must indicate the proper budget and expense account when submitting the check for deposit at the Cashier’s Office. The deposit should be applied to the same budget and expense account that the original charge was applied to. Cardholder should include the deposit receipt as part of the supporting documentation.
The Cardholder is responsible for reviewing charges throughout the month, checking the accuracy of all charges and watching for unauthorized purchases made to the card. The Cardholder has access to the online reconciliation website, Visa IntelliLink Spend Management,https://intellilink.spendmanagement.visa.com/secure/welcome.asp ; where transactions may be reviewed as often as daily.
If an unauthorized charge is discovered, the Cardholder should contact the Accounts Payable Office to report the disputed charge. With assistance from UMB Bank, a recommendation will be made by UMB Bank to contact the vendor or close the account.
Occasionally, a charge thought to be unauthorized turns out to be a valid charge, but the vendor name was different than expected. Other times, it is determined that a card account has somehow been compromised and the charge truly is a fraudulent charge.
When a charge is determined to be fraudulent, UMB Bank will immediately close the account. The Cardholder will be asked to complete a VISA Procurement Card Dispute Form (attached) and submit to UMB Bank for follow-up.
Visa IntelliLink Spend Management Website – Online Reallocation of Charges
VISA, through an agreement with UMB Bank, provides a web-based software solution, Visa IntelliLink Spend Management, which provides Cardholders the ability to assign a funding strategy to their P-Card transactions. This software is accessible via the Internet, 24 hours a day, 7 days a week. Transactions appear in the system 1-2 days after they post to your account. For example, if you make a purchase on the 12th and it posts to your account on the 14th, you will be able to see the transaction in Visa IntelliLink on the 15th or 16th.
All transactions are auto-allocated to a default organization code (budget number) provided on the Cardholder’s application. The Cardholder is then responsible for reallocating the expense to the correct fund, organization, expense account, and program numbers.
The Cardholder is responsible for reviewing all charges throughout the month checking the accuracy of all transactions and watching for unauthorized purchases made to the card. Once all reallocations have been completed and submitted for the entire billing period the Cardholder must print a Monthly Statement. The statement will include the list of transactions, along with the reallocated accounting information.
Reconciliation & Supporting Documentation
In addition, the Cardholder must reconcile the statement against the receipts for the billing period and then submit the supporting documentation to Accounts Payable.
The following is a summary of what the Cardholder is required to submit to Accounts Payable after the close of each billing period.
à Monthly Procurement Card Review Sheet with signatures (Cardholder, Reviewer, and others, as needed based on monthly expenses) at the bottom of the form.
à Monthly Statement printed out by Cardholder through Visa IntelliLink.
à Each transaction must be supported by an itemized receipt along with a valid and clear business purpose and any other pertinent supporting documents; and are to be organized in the same order as listed on the Monthly Statement printed from Visa IntelliLink.
à To avoid misplacement and help keep documents organized, please tape all undersized documents to an 8-1/2 x 11” piece of paper. Be sure to use transparent tape, some tapes are not actually “transparent” and can cause the receipt to be unreadable.
à Each Cardholder should keep a complete copy of all documentation for their files. Retain copies of Cardholder Statements and all supporting documentation for a period of two (2) years. These records are subject to review by University officials and auditors.
à If receipts are missing, the Cardholder must first contact the vendor and request a duplicate receipt. If a duplicate receipt is not made available by the vendor, the Cardholder may request a copy from UMB Bank. The bank will provide the copy for a $5.00 fee, which will be charged to the Cardholder’s VISA Account.
VI. PAYMENT TO UMB BANK
Late Fees & Interest Charges
- A signed Cardholder Statement, any Dispute forms, and all other original documentation must be submitted to the Accounts Payable Office by the 15th of each month to ensure timely payment to the bank, thus avoiding late fees and interest charges.
- The University may charge a late fee of $25 for each late submission to the Accounts Payable Office. This fee will be back charged to the Cardholder’s default account number.
- UMB shall charge interest at a rate of $20.00 per Cardholder plus 2.5% based on the balance of each statement for payments from the University that are not made by the due date. If payment is late due to negligence of a Cardholder, this interest charge will be charged to the Cardholder’s VISA account number.
- If the required documentation is not submitted to Accounts Payable within 15 days after the designated date, the card may be suspended.
- If unique circumstances occur and the Approving Official is unable to submit documentation by the designated due date, he/she should communicate with the Accounts Payable Office in writing by the 12th of the month. This does not relieve the Department from paying late fees and interest charges.