Purchasing Card TrainingWELCOME

Your Purchasing Card Team:Kimberley Reardon – P-Card Administrator

Dian Smith and Amanda Rose

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Why have a purchasing card?

• Standard VISA card • Liability rests only with UNCW• Fraud handled by Bank of

America• Allows for the rapid purchase of

low dollar goods and services

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Cardholder Responsibilities

• Place orders that comply with all limits, policies and guidelines

• Ensure receipt of goods• Retain original receipts for every purchase

and service – they should be itemized and legible

• Review and sign statements• Use proper funding source• Resolve disputes• Handle returns

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Role Definitions – Card Coordinators & Back-up

• Ensure timely statement reconciliation and approval for Card holder

• Review and update FUND information in PACS• Retrieve card when a Cardholder leaves the

university, transfers to another department, etc.• Coordinate system needs with the Purchasing

Card Administrator• Make sure Cardholders comply with Policies and

Procedures• Stay up-to-date with Non-Allowable Purchases

and Banned Vendors as well as State Contract items

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Role Definition – Budget Authority

• Oversees appropriate use of the card and signs statements

• Ensure sufficient budget for purchases• Designates permissible FUNDS• Identify Card Coordinators• Ensure Card Coordinators and Cardholder

responsibilities are managed properly

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Role Definitions

• Back-up Card Coordinator – Must be able to modify and perform all duties in

absence of Card Coordinator

• Budget Authority Designee – Sign statements and forms if necessary in the

absence of the Budget Authority

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Benefits and Costs• Easier to make small

purchases – not to exceed $2,500

• Make purchases as needed –emergency purchase

• Cycle statement with transaction info

• Transactions can be viewed/modified daily on PACS

• No cost to UNCW

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Limits and Restrictions

• Up to $2500 Single Transaction limit

• Monthly spending limit is set by Budget Authority – up to $10,000

• MCC (Merchant Category Code) codes are used to block certain types of purchases BUT NOT ALL

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Contracts and Procedures

• Use the State Term Contracts site for reference to see if contract is available.

• Use Purchasing Policies and Procedures as Reference.

• Refer to both the Non-Allowable Purchases list and the Banned Vendors list.

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Legitimate Vendor?

• It is the Cardholder’s responsibility to ensure that the purchases and services are made from legitimate vendors, not individuals.

• If in doubt, do not provide your card number.

• Contact Purchasing for assistance. Our Purchasing Specialists are here to help you!

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Card Surrender

• Change Departments• Leaving UNCW Employment• Upon request of Budget

Authority, Card Coordinator, HR or Purchasing

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Cardholder Procedures• Keep your card in a secure place

separate from personal cards.• Report lost/stolen card immediately to

the bank, your card coordinator and the purchasing card administrator.

• Telephone numbers are:

– Bank of America1-866-500-8262

– P-Card Administrators 910-962-3849, 910-962-3153, or 910-962-4249

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Procedures• You are the only person authorized

to make purchases on your card.• You must know what is an allowable

purchase and what is not.

• Giving your card or number to someone else to use is not allowed

• You pay the price for misuse – up to termination.

• Make purchases in person, by phone or web – DO NOT FAX

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Procedures (cont ’d)• Make certain that purchase and services

(including shipping, insurance, etc) do not exceed your limit – be aware of your limits

• Make sure you are getting the best price (ask for educational discount where appropriate) and always make sure purchase is tax exempt!

• Obtain original receipts – Description of what you are buying with

amounts must be on receipts. (Itemized receipt)

– If vendor cannot provide an itemized receipt, ask them to list the items or services with individual prices and sign the receipt.

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Acceptable Receipt

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Unacceptable Receipt

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Procedures – Shipping • Give the supplier your name,

department, and street address in delivery instructions – Improper shipping info could result

in refusal of your shipment at Central Receiving

– Your billing address will be 601 S. College and your campus box number, unless you are located at CMS, which would be 5600 Marvin K. Moss Lane.

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Dispute of Statement Item(s)

• Try to resolve as much as possible with the vendor.• If unsuccessful, contact Purchasing Card

Administrator. Administrator will call Bank of America to have them investigate.

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Billing cycle is from the 10th of a month thru the 9th of the next

(e.g., April Statement: March 10th – April 9th )

• Statements should be received approximately the 17th of each month from the bank to the cardholder’s campus box.

• Please place original receipts in same order as the transactions on the statement.

Receipts must have a dollar amount and itemized description listed.

Reconciliation

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Reconciliation • Tape receipts on all four sides to a clean 8 ½ x 11 sheet of

paper. *Please do not place tape over text of receipt!• Please - NO STAPLES!!

• Do not hold your statement due to not having one receipt. Fill out a Lost Receipt Form.

• Cardholder must sign the statement. (Full signature is required.)

• Forward package to Card Coordinator.• Card Coordinator will approve statement and receipts then

forward to Budget Authority.

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Reconciliation (cont ’d)

Cardholder – Prepare & Sign Statement

Card Coordinator – Reviews transactions and updates funds

Budget Authority Signs

Purchasing Card Administrator receives and audits

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Reconciliation (cont ’d)• Use PACS to modify FUNDS anytime during the month

before the cut-off. Do not wait until your statement comes in to modify.

• Check funding in PACS often.• Forward original, signed statement (two signatures) and

receipts to Purchasing prior to due date.• Statements must always have 2 signatures!• Purchasing Card Administrator sends out an email

reminder of modification cut-off and due dates monthly around the 7th of the month.

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Compliance

• Transactions are audited!• Cause for Suspension/Termination

– Fraudulent or intentional misuse– Intentional misuse to make personal purchases even

if you intend to reimburse the university– Use of card by someone other than the cardholder

Cardholder is always responsible!!* Remember, every transaction is a public record to be

viewed by anyone and everyone.23

Compliance (cont ’d)

• Regular level infractions4 offense(s) before card cancellation

• Infraction Types:

•

Missing Receipt Inadequate Receipt Missing Signature/s Unauthorized Signature/s Statement and receipts have not been received Split Transactions (circumventing the single transaction limit) Use of card for entertainment or food Purchase of Gifts, Gift Cards or Certificates Unapproved Items – Non-Allowed Purchase or VendorInappropriate Funding Source Failure to comply with State Contract terms (without explanation) Personal purchase made in error - caught and corrected by card holder

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Compliance (cont ’d)CARDHOLDER NAME:LAST FOUR OF PURCHASING CARD:CYCLE STATEMENT DATE or TRANSACTION DATE:

This message is to advise you that a review of your purchasing card transactions has revealed an infraction of UNCW card use policy. Because these infractions compromise the Purchasing Card program, your card has been frozen. Please review your transactions and take immediate action to correct the issue. As this is the only occurrence in twelve months, we are confident that with your prompt attention to this issue we will be able to restore the use of your card.Your purchasing card has been frozen due to:

Transaction details/comments:

Please contact Kimberley Reardon, reardonk@uncw.edu, Purchasing Card Administrator, if you have any questions, concerns, or require clarification.To learn more about the program please visit: http://www.uncw.edu/policies/05160purchasingcardprogram.htm

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Compliance (cont ’d)• Infraction to an individual card

– 1st violation– Card frozen until resolved, – 2nd time frozen for 30 days after resolution.– 3rd violation – BA must justify why the cardholder needs

a purchasing card, 4th Cancelled

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Compliance– Registrations or Memberships –

NEVER– Business Entertainment

(Restaurants) – NEVER– Prepared Foods!!! NEVER– Grocery Store Items Allowed &

Pizza Allowed– May pay for tips on pizza– cannot

exceed 18%– Lists of Acceptable and Non-

Allowable Items are on the Purchasing Website.

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Compliance (cont ’d)

• Cause to revoke all department cards– Multiple contacts to a department for late

statements or insufficient documentation.– Failure to manage the purchasing card program.

Insufficient funds will be cause for the budget office to review and possibly lower limits.

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On Campus Acceptable Purchase

There is only 1 one place on campus you may use your card!• Bookstore/ Barnes & Noble

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Terms and Important Dates and Numbers

• Terms: – PACS - uBusiness site to modify funds and accounts on P-Card transactions– U-shop – UNCW PO System– MCC (Merchant Category Code) – Retailer is assigned an MCC based on what they sell – Modifications/Reconciliation – The act of moving a charge out of the default fund and

into the proper fund– Itemized receipt – A receipt with the item detail and pricing listed on it.

• Important dates and numbers– Purchasing

• A Single Transaction limit is set by Budget Authority – Maximum of $2,500 • Monthly spending limit is set by Budget Authority – Maximum of $10,000

– Dates• Billing cycle: 10th of a month thru the 9th of the next (3/10 – 4/9 April Statement)

Reporting lost or stolen card and fraudulent activity• P-Card Administrators

– 910-962-3158

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Any Questions?

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Let’s go to the Purchasing Site

• Faculty & Staff Homepage• Purchasing• Purchasing Card

– Policies & Procedures– State Contracts– P-Card Modification and Statement Deadline Calendar– PACS Manual– Lost Receipt Form– How to contact us

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