Procard Compliance Training

Procard Compliance Training

AM 535

UTSA FY1011

Introductions

√ Name√ Title√ Department√ UTSA length of

service√ Your Procard

Role√ Cardholder√ Reviewer√ Final Approver

Cardholder

Procard

Reviewer

Procard

Final

Approver

Procard/Travel Card Administration (PTCA) Office

Administers UTSA’s Procurement Card (Procard) and Travel Card Program. Departments should contact this office for assistance with any of the following services:

•Application processing (Procard and Corporate Liability Individual Billed Account (CLIBA) cards only)

•Cardholder training

•Cardholder maintenance (Citibank and/or DEFINE related):

• Credit Limit

• Merchant Category Codes (MCC)

• Activation and deactivation

• Authorized to Inquire (ATI) access (CLIBA card only)

•Process requests to change the electronic review and approval process for Procard payments.

Procard/Travel Card Administration (PTCA) Office

In addition, this office also performs the following functions:

•Reporting/Compliance

•Collections

•Reconciliations

•Procard audits

•Generate Procard payments on behalf of departments.

Anne JacksonProcard Specialist

Phone: 210-458-4059Email: [email protected]

Lisa BixenmanAccountant II

Phone: 210-458-7993Email: [email protected]

PTCA Staff

Purpose of Procard Compliance Training

Acquaint the new Procard Cardholder regarding

Procard GuidelinesResponsibilities of DepartmentRestricted and Dollar Limited PurchasesProcard Records MaintenanceReconciliation

Procard Audit Procedures

UTSA Procard Program

Allows cardholders to make purchases less than $5,000 on behalf of the University.

Purchases must be made in accordance with UTSA Policies and Procedures, State of Texas Regulations, and Federal Guidelines and Laws.

Benefits of Using the Procard

Simple method of purchasing goods and services up to $5,000. Spending limits are designated by

each department Single Purchase Limit may never exceed

$5,000.00 to include recurring charges. Charges may never be split to circumvent the

$5,000.00 limit. Monthly Purchase Limit defaults at $10,000.00

Fast alternative for processing low dollar value purchases directly from the vendor.

Reduces processing costs.Section 4 – Procard Polices and Procedures

UTSA Purchasing Polices and Procedures

Follow the University and State Procurement Polices when making purchases. (DE678)

Visit the UTSA Purchasing website for Policies and Procedures.

http://www.utsa.edu/purchasing/policies.cfm

Purchasing from HUBsThe University of Texas Historically Underutilized Business (HUB) initiative is to encourage and assist participation by such businesses in the contracting and purchasing process. It is UTSA's policy to be committed to maximizing when available, the number and value of purchases with HUBs.

UTSA is an equal opportunity, affirmative-action institution, and takes pride in giving women- and minority-owned businesses a chance to provide their goods and services at a fair price. Procard holders are encouraged to do the same.

Learn more about purchasing from a HUB Purchasing From HUB Vendors, AM 554

Irene MaldonadoHUB Program Manager

[email protected] 4068

http://www.utsa.edu/hub/

Roles and Responsibilities Overview

Card Issuer(Bank – Citibank)

Provides electronic transaction authorizations, and bills the University for all purchases made on the Procard.

Department Head or Dean Approves the designated employee’s request for a Procard, assigns Dept Reviewer and Approver, delegates default account. Ensures Procard regulations are followed and sufficient funds are available in the specified account designated for each Procard.

Department Reviewer*/ Final Approver

Reviews and approves cardholder purchases, transaction logs, and itemized receipts. Monitors transactions to ensure legitimate business expenses, receipt of purchases and 100% reconciliation.

Procard Administrator(Anne Jackson, Procard Specialist)

Coordinates the Procard activities, training and conducts audits. Liaison between cardholders and bank.

Disbursement Administrator Central accounts payable administrator who is responsible for receiving, reviewing and paying the Bank billing statement.

Cardholder* Employee approved by Department Head to use the Procard to execute purchase transactions on behalf of the University, reconcile monthly transactions to the Bank billing statements, and maintain documentation to support each transaction. Responsible and accountable for the Procard embossed with their name.

Vendor Merchant from whom a Cardholder is making a purchase.

*Must complete Procard Compliance Training prior to assuming duties and receiving Procard.

Cardholder Responsibility Know the Procard Guidelines Safeguard the UTSA Procard at

all times Procard may not be shared.

Make only purchases that have department approval

Document receipt of goods or services Provide Complete Department

Name and Room Location for accurate delivery

Retain original and intact itemized receipts

Ensure tax is not charged to purchase

Never split a purchase to circumvent the $5,000.00 limit

Complete monthly Transaction Logs

Forward Transaction Log and itemized receipts to Approving Officials for review and signatures

Maintain proper procard reconciliation for audit

Comply with UTSA Records Retention Schedule (five years plus current fiscal year)

Section 6.1 – Procard Policies and Procedures

Cardholder Responsibility Continued Verifies and maintains documentation

that the vendor is in good standing with Texas Comptroller of Public Accounts for purchases $500 or more https://cpafmprd.cpa.state.tx.us/tpis/search.

html

Verifies that all items on receipt are accurate and charges are correct

Verifies that all transactions listed on the monthly statement are valid and the amount is correct.

Resolves all disputes with vendor Notifies Bank in event of unresolved

disputes

Reviewer Responsibility Ensure Reconciliation of monthly Procard

Transaction Logs to: Bank Billing Statements and/or VP7s Itemized Sales Receipts Business Expense Forms (if applicable – required for SE

purchases when making purchases of hospitality and/or entertainment)

Ensure Compliance to University Policies Procard Guidelines Purchasing Policies and Procedures

Safeguard and protect University assets Understand University and Procard Guidelines and

Hospitality GuidelinesSection 6.2 – Procard Policies and Procedures

Final Approver ResponsibilityDesignated as an Electronic Signer in DEFINE for the procard holder

default UTSA account. Serves in a higher level position over the procard holder and reviewer Ensures all purchases made by procard holder have received prior

approval Ensures all purchases made by the procard holder are necessary and

reasonable for the active conduct of university and designated department business

Ensures the procard holder and reviewer are knowledgeable and in compliance with all UTSA Procard Polices and Procedures and Business Related Hospitality and Entertainment Expense Guidelines

Reviews and approves procard holder VP7’s, reviews and signs monthly Transaction Logs, and applicable Business Expense Forms in a timely manner.


VP7 Final Approval

Any VP7 Documents not approved by the deadline are reported as non-compliance to the PTCA Office and will be reported to Internal Audit and the applicable Vice President’s Office. Possible loss of Procard privileges could occur for non-compliance.

Types of Procards

Regular Procard Follows Procurement rules of

Small Dollar Purchases (PB0) Limited by departmental

approved spending threshold (max $5,000.00)

Some Commodity and Business restrictions

Some Commodity dollar limits

Special Event Procard* Same as Regular Procard Some restricted commodities lifted

to allow purchases of hospitality Issued to a small number of

authorized staff Final Approval at the discretion of

the Director of Financial Services and Bursar

Cardholder must be Familiar with Hospitality and Entertainment Guidelines** http://www.utsa.edu/financialaffairs/

opguidelines/2.6.4.html

Section 7 – Procard Policies and Procedures

*Hospitality Related Expenses

**Hospitality and Entertainment Guidelines AM 553

Restricted Businesses

Gasoline Stations

Legal Services

Taxi and Travel Related Car Agencies

Hotel /Motels

ATMs

Entertainment Providers

Travel Agencies Liquor Stores

Restricted Commodities

$500

$500

SE SE

SE

Computer related expenses over $500

Camera exceeding $500

Gifts

Flowers

Catering

Restaurants/ Food/Alcohol

Purchases Requiring Prior Approval

Purchase Example Department Point of Contact for Purchase

Information

Contact Phone

Number

Potentially Hazardous Chemicals

Fertilizer Environment Health, Safety and Risk Management

Brian MoroneyWendy McCoy

52506101

Out of the Country Purchases

Canada, England, Mexico, South Africa, Spain, Virgin Islands, etc.

Research, Integrity and Compliance Office

Rachel Graves 4601

Prepayments Advance payment for space rentals

Controller Diana Macias-Ollervidez

6915

http://www.utsa.edu/pds/procard/restrictions.cfm for a List of Procard Restrictions

Procard Transaction Log Cardholders should maintain a current log for

all purchases with itemized receipts attached A separate log should be maintained for each

Procard cycle (monthly, 4th of Month to 3rd of Next Month)

The Cardholder, Reviewer, and Final Approver must review, sign and date each Transaction Log.


Procard Transaction Log

Best Practice: Complete each line item across page

Procard Transaction Log Cardholder will maintain a current/monthly Transaction Log for all

purchases Original Intact receipt will support each purchase

Date Vendor Amount Itemized description of item(s) purchased

Lost receipts Vendor can provide a copy DECLARATION OF MISSING EVIDENCE MEMORANDUM must be completed,

if receipt cannot be provided by vendor. Repeated loss of receipts may be grounds for canceling Procard or other

disciplinary action.

Maintain Procard Transaction Log and supporting documents for 5 years + current year.


Transaction Reconciliation Review and maintain bank statements and

itemized intact receipts Call vendor immediately in event of a billing

error or question Follow-up to ensure billing corrections are

made as necessary Ensure credits are issued and documented –

do not accept cash in lieu of credit Ensure tax has not been charged


PROCARD

Monthly Tabs

Transaction Log (approved and signed) for each monthVP7 ID Number on each transaction log

Itemized Intact receipts for every purchase

Business Expense Form – SE Procard Hospitality PurchasesIn accordance with Hospitality Guidelines

Vendor in Good Standing for purchases over $500Printed copy must be dated prior to purchase date

Maintain Tax Exempt Status

100% ReconciliationProcard Transaction LogsBank Statements Printed VP7 DEFINE DocumentsItemized Receipts, Packing Slips, etc.

Transaction Reconciliation NotebookBest Practice

Create a Notebook

Tracking Procard Purchases Online

Go to: http://www.citigroup.com/transactionservices/home/

card_solutions/commercial_cards/index.jsp

Click on CitiManager

First Time User Self Registration for Cardholders

User Name Your credit card numbers, without dashes

Follow online instructions and set your own Password

First Time UserONLY

Complete fields with an asterisk

Your Campus AddressDo Not Use Your Personal Address

Bldg / Rm Number

Preparing for an Audit

A meeting request will be emailed at least one week prior to audit request date audit months for review will be provided

New cardholders will be audited Within 24 months of receiving Procard

Thereafter, Regular and Special Event cardholders will be audited according to risk or as needed and within 2 years

Procard Check List


Role of the Procard Auditor

Reviews transactions towards ensuring purchases are related to University business

Reviews receipts for itemization and legibility Confirm State of Texas tax exempt status is being

maintained Verifies timely reconciliation and approvals of the

cardholder account Reviews Business Expense Forms for SE procards

Food, beverages, decorations, entertainment related expenses

Importance of Organization During an audit, records will be

reviewed for the following: Proper and Original Signatures VP7 ID Numbers Vendor in Good Standing

documentation made prior to purchases in excess of $500.00

Itemized Intact Receipts – do not tape over ink

Credits documented as such Tax Returned Merchandise Returns

Business Expense Forms – SE Card Bank Statements

Note: This list is not all inclusive

For a List of DEFINE Object Codes use Command: GG8 or GG9

Following a Procard Audit Findings will result in the following:

Audit Recommendation Memo List of recommendations Deadline for meeting recommendations Recommendation Memo to be signed by the Cardholder,

Reviewer, and Final Approver

All recommendations (corrections) with signed Agreement Memo must be submitted to the Procard Compliance Office by established deadline.

Helpful Information Procard Office

([email protected]) Ext. 4059 Ext. 4060 for application or training questions

Website: http://www.utsa.edu/pds/procard Procard Forms Procard Guidelines Procard Restrictions List http://www.utsa.edu/financialaffairs/opguidelines/2.6.4.html for

Hospitality Guidelines and Business Expense Form Disbursements

Ext. 6979 Citibank

Phone number: 1-800-248-4553 [24 hours a day / 7 days a week] Lost or Stolen Procard

Contact the bank immediately at 1-800-248-4553 Notify the Procard Specialist at 458-4059 (during normal business

hours) or [email protected]

Test Your Procard Knowledge

What do I remember?

1. What is the Procard monthly cycle dates?

2. When should you conduct a vendor check?

3. What is the MasterCard Single Purchase Limit?

4. When is it acceptable to not approve a VP7?

1. What is the Procard monthly cycle dates? 4th of month to 3rd of the following month

2. When should you conduct a vendor check? Prior to purchases over $500

3. What is the MasterCard Single Purchase Limit?

MasterCard Single Purchase Limit is $5,000.00

4. When is it acceptable to not approve a VP7? NEVER. VP7 documents should be approved by the DEFINE

generated due date!

Questions

PROCARD AUDIT

PROCARD PURCHASE

Procard Holder

Procard Compliance Training

Documents

Transcript of Procard Compliance Training