•Purchasing Card TrainingPurchasing Card TrainingPresented Presented

bybyBill Ward Bill Ward

What About This TrainingWhat About This TrainingIn this training session will answer these questions:

• How did Central get a procurement card?

• What is the intent of the procurement card program?

• What the is procurement card is and its uses?

• What are my responsibilities as a cardholder, supervisor, department?

• When can I start to use my procurement card?

History of the P Card at UCM

•April 2002 P Card Tested by 50 UCM employees

•November 2002 P Card is available to all UCM employees

•P Card had dual use for purchasing and travel related expenses as well

•May 2005 major change made due to State Audit

•August 2006 P Card administration is designated to be in the Procurement Department

•July 2007 P Card and Travel Card are separate programs

IntroductionIntroduction• University of Central Missouri is

participating in the State of Missouri and UMB Bank VISA Purchasing Program.

• The purpose of the State of Missouri Procurement Card Program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar (under $1,000) transactions within established usage limits..

Overall success of theOverall success of the Business Procurement Business Procurement Card ProgramCard Program (BPCP) (BPCP)• For the Cardholder as well as the overall success of the

program please remember that the Procurement Card is NOT intended:

• to avoid or bypass appropriate procurement or payment procedures. Rather, the procurement card complements the existing processes available.

• to replace the current travel card.

• for personal use.

•How do I….• Obtain a Card?

• Cancel a Card?– Transfer, Termination, Change in duties

• Renew a Card?Renew a Card?• Report a lost or Stolen CardReport a lost or Stolen Card• Immediately notify UMB Bank Security at Immediately notify UMB Bank Security at 1-1-

800-821-5184800-821-5184– Notify BPC Coordinator in the Procurement Office Notify BPC Coordinator in the Procurement Office

at at 660-543-4001660-543-4001..

What about Procurement What about Procurement Card Security?Card Security?• Only the Only the authorized cardholderauthorized cardholder may use may use

the card. the card.

• CardsCards and and card numberscard numbers must bemust be safeguardedsafeguarded against use by unauthorized against use by unauthorized individuals individuals inin thethe samesame mannermanner youyou wouldwould securesecure youryour personalpersonal creditcredit cardcard..

• Departments may require the Purchasing Departments may require the Purchasing Card to be secured in the department.Card to be secured in the department.

Can You Define Can You Define Procurement Card Abuse?Procurement Card Abuse?

• To use the Business Purchasing To use the Business Purchasing Card to purchase Card to purchase unauthorized unauthorized itemsitems, , productsproducts, and , and servicesservices or to or to use it at an use it at an unapproved merchantunapproved merchant is is considered abuseconsidered abuse. .

• The The willfulwillful misusemisuse or or wrongful usewrongful use of of the BPC will not be tolerated.the BPC will not be tolerated.

What will happen if I What will happen if I Abuse the Card ?Abuse the Card ?• First occurrence – Cardholder will receive a First occurrence – Cardholder will receive a

warning letter from the PC Clerk. warning letter from the PC Clerk.

• The second occurrence – Cardholder’s account The second occurrence – Cardholder’s account will be deactivated for at least 3 billing cycles. will be deactivated for at least 3 billing cycles.

• The third occurrence – Cardholder privileges The third occurrence – Cardholder privileges will be will be withdrawn. withdrawn.

• Cardholder will be held personally Cardholder will be held personally responsible to paying for the products responsible to paying for the products and or services.and or services.

• Departmental supervisor may request the card Departmental supervisor may request the card to be withdrawn at any point.to be withdrawn at any point.

Are there any Unauthorized itemsAre there any Unauthorized items, , PProductsroducts, and S, and Services ?ervices ?• The following is a listing of specific prohibited purchases. However the list is not limited to those

non-business transactions.• Purchases for the sole benefit of the Cardholder • Cash Advances • Construction, Renovation or Installation Services • Fuel • Computer Hardware and Software (unless approved by IS) • Leases/Rentals requiring a signed agreement • Maintenance/Service Agreements requiring a signed agreement • Software Licensing Agreements • Personal items or loans • Medical Services • Furniture and Systems Furniture • Purchases involving trade- in of University property • Sales Tax (Missouri)• Travel Expenses (e.g. lodging, meals, rental vehicles) • Services of sole proprietorships, individuals, or non- incorporated businesses (These are

1099 reportable) • Professional and Consulting Services • On-line purchases requiring an agreement (e.g. E-bay) • Any purchase categories blocked through the purchasing card Merchant Category Codes

(MCC) as determined by Director of Procurement and Materials Management • Gift Cards • Non University related products or services for which the Cardholder derives some

personal gain, benefit or service• Intellectual Property (e.g. photography services, webpage/software development) • Animal Purchases

What are My Responsibilities?- Receipt of Goods and Materials• Ensure you have received the goods and they are Ensure you have received the goods and they are

priced correctlypriced correctly

• All orders (telephone,on line internet,catalog) make sure All orders (telephone,on line internet,catalog) make sure complete shipping addresscomplete shipping address and instructions are given along with and instructions are given along with your nameyour name, , department namedepartment name, , complete street addresscomplete street address direct to direct to Central ReceivingCentral Receiving

• Cover W5H1Cover W5H1

– Who, What, When, Where, Why, HowWho, What, When, Where, Why, How

• Send a copy of order to Send a copy of order to Central ReceivingCentral Receiving - This is - This is CRITICAL!CRITICAL!

• NO DOCUMENTATION!!! NO RECIPT OF GOODS !!!!!NO DOCUMENTATION!!! NO RECIPT OF GOODS !!!!!

Your Responsibilities- Record Keeping and Documentation

• Cardholders must keep the purchasing paperwork Cardholders must keep the purchasing paperwork i.e.i.e.

• Sales slipsSales slips

• Cash register receiptsCash register receipts

• InvoicesInvoices

• Order formsOrder forms

• Receiving documents receiptsReceiving documents receipts

• Et alEt al

Your Responsibilities- Purchase Approval ProcessApproval Process

• Ensure items your purchase are correct and Ensure items your purchase are correct and correctly priced.correctly priced.

• Cardholders to review charge receipts/cash Cardholders to review charge receipts/cash register tapes.register tapes.

• If lost - obtain a copy of a charge or credit slip, call If lost - obtain a copy of a charge or credit slip, call the UMB Commercial Cards at 1-800-821-5184. the UMB Commercial Cards at 1-800-821-5184. There will be a $2.00 charge for each copy.There will be a $2.00 charge for each copy.

• Forward charge receipts to departmental Forward charge receipts to departmental designee.designee.

Your Responsibilities- Rejected Purchases• Cardholders may experience a purchase being rejected

at the vendor’s place of business when the card transaction is run through the bankcard system. This could occur for the following reasons:

• Purchase exceeds the $1,000 transaction limit (including all delivery, shipping and handling and/or special handling costs)

• Purchase exceeds the monthly dollar limit established for the card.

• Purchase has been requested from a vendor having a merchant category code not included on CMSU’s acceptable list of codes.

• Purchase could have been rejected due to the wrong assignment of merchant category code to the vendor.

• Contact the Purchasing Card Clerk at the time of purchase!!!!

Your Responsibilities - Resolving Errors, Disputes, ReturnsResolving Errors, Disputes, Returns andand CreditsCredits• Contacting and following upContacting and following up with the with the vendor vendor

on:on:

• any any erroneous chargeserroneous charges

• disputed itemsdisputed items or or returns returns as soon as as soon as possiblepossible. .

• If the cardholder is unable to reach agreement If the cardholder is unable to reach agreement with the vendor, the next step is to contact the with the vendor, the next step is to contact the PC Coordinator. PC Coordinator.

How will I use this card?• Scenario 1 - Walk up and carry out

purchases -Wal Mart, Office Depot etc.

• Scenario 2 - Catalog purchases - Viking orders (telephone/fax)

• Scenario 3 - On Line Purchases - No PROBLEM! (BIG PROBLEM)

• When ordering on line check the Return Policy for that firm. Each on line company is different, you must review and print a copy of that policy. If the Return Policy is too stringent you should consider another vendor.

What are the Departmental Liaison Responsibilities ?

• Record Keeping and Documentation

• Reconciliation and Review Process

• Audit a Procurement Card Audit a Procurement Card TransactionTransaction

Does My Supervisor have Responsibilities?• Department Head, Chair, Dean, Department Head, Chair, Dean,

Director or Manager will:Director or Manager will:

• Identifying the cardholder and the limits to Identifying the cardholder and the limits to apply to the card.apply to the card.

• Ensure transactions logged into the Banner Ensure transactions logged into the Banner System System

• Control spending through the bank summary Control spending through the bank summary review and maintains records.review and maintains records.

• Each Supervisor will determine how to secure Each Supervisor will determine how to secure the cards and card numbers. the cards and card numbers.

Department Responsibilities- Audit a Procurement Card Transactiona Procurement Card Transaction• Note partial shipments.Note partial shipments.

• If inappropriate purchases appear, the employee should supply a justification.

• If the justification is insufficient, appropriate measures should be taken to receive a credit from the vendor for the purchase and the Supervisor and Purchasing Card Coordinator should be notified.

• To obtain a credit a cardholder can return the goods or pay the vendor directly with nonstate funds. During the timeframe that the credit is pending, the charge will be made to the department.

Accounts Payable Responsibilities

• Paying the Bank

• Auditing Purchasing Card Program

• Maintaining the Purchasing Card Maintaining the Purchasing Card Sales documentation and Sales documentation and supporting evidence and visuals.supporting evidence and visuals.

The Forms and their Usage • VISA Purchasing Cardholder Account VISA Purchasing Cardholder Account

Action RequestAction Request

• Purchasing Cardholder AgreementPurchasing Cardholder Agreement

• Vendor Non-Acceptance FormVendor Non-Acceptance Form

• Cardholder Dispute FormCardholder Dispute Form

• Sales Tax Exemption CertificateSales Tax Exemption Certificate

Purchasing Card Summary on Purchasing Card Summary on Banner FAAINVTBanner FAAINVT

How Do I Activate My Card ????How Do I Activate My Card ????

• Your Card will have a GREEN label Your Card will have a GREEN label across the front with instructions.across the front with instructions.

• Follow the instructions on the Follow the instructions on the GREEN label.GREEN label.

• Remove the Sticker after you Remove the Sticker after you have called.have called.

QUESTIONS?????QUESTIONS?????