Fill - Free fillable Us-bank-procurement-credit-card-handbook - Procurement Card Handbook 7 01 10 PDF form

(Revised 03/14/2013)

Channel Islands

CALIFORNIA STATE U

NIVERSITY

Division of Finance and Administration

Procurement & Contract Services

Procurement

Credit

Card

Handbook

(Revised 03/14/2013)

California State University Channel

Islands

PROCUREMENT CREDIT CARD HANDBOOK

TABLE OF CONTENTS

General Information.………………………………………………………………………….... 2

Legal Reference & Authority…………………………………………………………………... 2

Program Participation Requirements…………………………………………………………. 3

Prohibited or Restricted Procurement Card Purchases…………………………………….. 4

Authorized Uses……………………………..………………………………………………….. 5

Online Reconciliation ………………..………………………………………………………… 6

Cardholder Responsibilities……………………………………………………………………. 8

Authoring Official Responsibilities……………………………………………………………. 9

Program Administration……………………………………………………………………….. 9

Requests for Procurement Credit Card Increases…………………………………………... 10

Replacing Procurement Credit Cards………………………………………………………... 10

Replacing a Cardholder/Authorizing Official…….…………………………………………. 11

Cardholder Guidelines…………………………………………………………………….….. 11

Common Reasons for Dispute………………………………………………………………... 12

Audit Procedures……………………………………………………………………………… 12

Information Resources……………………………………………………………………….. 13

Sample Forms

(Revised 03/14/2013)

General Information

In today’s environment of streamlining government, state and local agencies are looking for ways to

cut administrative time, effort, and costs. Purchasing cards, essentially a US Bank Visa charge

card, enable agencies to significantly reduce both paper and the procurement process for small

dollar purchases.

With the ease of a widely accepted Visa card, CSU Channel Islands employees may make in-

store transactions, place telephone or internet orders, receive and confirm purchases of variable

amounts of approximately $1,000 per purchase and $5,000 per month. The card allows

departments to effectively monitor and control small purchases and reduce time and paperwork.

REFERENCE CSU Channel Islands Procurement Policy – Revised January 2005

California State University – Executive Order No. 760

CSU Policy Manual for Contracting & Procurement, Sect. 205

CSU Procurement Credit Card Handbook – Revised June 1998

(Revised 03/14/2013)

PROGRAM PARTICIPATION REQUIREMENTS

•

Cardholder Qualification

Cards are granted to full-time employed university staff members both long-term and

temporary university staff members with a position appointment of at least six months.

•

Procurement Card Request

An Approving Official may request a Procurement Card for a staff member by completing the

US Bank New Card Request form. This form is signed by the Cardholder, their Approving

Official and the University President or designee. The completed form is sent to the Procurement

Card Program Administrator.

•

Procurement Card Issuance

The credit card is issued to the University in an individual’s name; however, the University is

responsible for all payments. There is no personal liability on the card unless the Cardholder

violates the terms of the Procurement Card program by making a personal purchase. The

Cardholder is responsible for ensuring that all purchases are made within University and State

guidelines. In addition, all Cardholders must have a designated Approving Official. Approving

Officials may not be a subordinate or peer of the Cardholder.

•

Purchase Limits

The Procurement Card is issued with variable amounts of approximately $1,000 per single

purchase limit and an overall monthly limit of approximately $5,000.00 (including tax and

shipping charges).

Increases to dollar limits are made only upon written request to the Procurement Card Program

Administrator. Such requests may be submitted using the Cardholder Account Maintenance form

and should state the need for higher purchase limits. Requests are to be approved by the

Cardholder’s Approving Official. Submit forms to: pcard@csuci.edu

PROCEDURES

CARDHOLDERS, DEPARTMENT / PROGRAM HEADS, APPROVING OFFICIALS AND ANY

OTHER STAFF INVOLVED WITH THE PREPARATION OF PROCUREMENT CARD

RECONCILIATIONS SHOULD ALSO BE FAMILIAR WITH THE CSU CHANNEL ISLANDS (CI)

PROCUREMENT POLICY THAT GOVERNS THE PROCEDURES.

The procurement card may be used for low dollar value commodity purchases whenever possible and

allowable in order to achieve cost savings and improve processing and delivery times. Low dollar value

purchases are defined by CSU Channel Islands Procurement Card policy to be less than $1,000 per

transaction. Use of the procurement card must be in compliance with CSU purchasing policies and

procedures.

Prohibited Items (per CSU Channel Islands Procurement Policy):

Use of procurement cards for the following types of goods and services is PROHIBITED:

•

Alcoholic Beverages

•

Cash advances

•

Cellular phone service

•

Printers

•

Computer Hardware

•

Software

•

Firearms & ammunition

•

Large volume, routine repetitious purchases from one supplier (may coordinate with Procurement to

establish an open purchase order instead).

•

Space, equipment or other types of leases, building or equipment rentals

•

Narcotics and other controlled substances

•

Personal purchases of any kind

•

Personnel services, including consulting services

•

Gift Cards/Gifts

•

Raffle Prizes

•

Furniture

•

Fines, late fees, penalties, interest and finance charges

•

Paying invoices on items that were previously purchased but not invoiced until a later date

•

Service or maintenance agreements

•

Contracts or agreements requiring authorized signatures (Contracts and agreements need approval by

individuals with formally granted University purchasing approval, i.e., Procurement staff, the VP for

Finance & Administration and the President, only).

•

Splitting purchases into multiple card transactions to circumvent the maximum dollar limit. Splitting is

defined as one item or a set of items sold as a set that has been split by the merchant to look like two (2)

separate purchases.

•

Travel-related air or ground transportation, lodging or meals

•

Vehicles, including trailers, boats and any other equipment which must be registered with the DMV

(Revised 03/14/2013)

FOLLOWING ITEMS REQUIRE APPROVAL:

•

Chemicals and/or other hazardous materials: Certain chemicals and/or other hazardous materials may

be allowed on procurement cards onl y b y approved science laboratory technicians (technical staff)

and operations, planning & construction (OPC) staff only; such technical and OPC staff must have

only been trained by the director of risk management and authorized to make such purchases in

writing b y their respective division vice president

•

Food & beverages: **Business meals only within the guidelines of the business meals policy &

on campus food services including Islands, Tortilla’s, Subway, and Student Union Eateries who

have first right of refusal.

*Business Meals require appropriate backup, which includes an agenda (Must be conducting official business in

relevance to the CI campus) and a list of attendees.

•

Travel-related conference registration FEES onl y

•

CSU Channel Islands auxiliary organizations such as the Associated Students, Inc., the CI Foundation or the

University Glen Corporation

o For Foundation purchases: A request for Foundation Funds form approved by the

department head and the VP of Advancement are required prior to be purchased. In the event that

a purchase is made without prior approval and the funds within Foundation are not available, the

purchasing department will be responsible for the expense. PCard charges using Foundation

funds should be charged to Account- Dept- ZZ010- Project- Class- 00086.

(Revised 03/14/2013)

•

In computer hardware, a peripheral device is any device attached to a computer in order to expand

its functionality. More specifically, the term describes those devices that are optional in nature, as

opposed to hardware that is either demanded or always required in principle.

Allowable computer peripheral device purchases include:

o External storage devices

 CD

 CD-ROM

 CD-RW

 CD-R

 DVD

 DVD-ROM

 DVD-RW

 DVD-R

 External Hard disk drives

 USB flash drive

o Input devices

 Keyboard

 Pointing devices

 Mouse

 Touch screen

 Scanners

o Wireless Devices

 Wireless Adapter Card

 Wireless Music Bridge

o Power cord

o Microphone

o Computer speech recognition device

o Webcam

o Digitizing tablet

o Output devices

 Speakers

 Digital camera

 Graphics card

 Monitor

 Expansion devices

 Docking station



Ethernet cables

NOTE: Non-adherence to the above may result in suspension or revocation of individual cardholder

privileges. Cardholder may be held personally liable for fraudulent use of this credit card.

(Revised 03/14/2013)

Examples of Allowable Purchases on Procurement Cards

•

Office supplies From OfficeMax (*OM auto sub policy effective October 1, 2012)

•

Publications, books, academic and professional journals, magazines or subscriptions

•

Membership dues to academic or professional organizations

(*In an effort to realize cost savings across the CSU, the Chancellor’s Office is initiating mandatory participation in a new OfficeMax auto-

substitution program)

Card Limits

Based on department budget needs, department heads/program chairs will request each cardholder’s

transaction limit and monthly limit via the authorizing official and the division vice president or designee.

The Director of Procurement and Contract Services approves procurement card requests as the President’s

designee for participation.

Budgetary control should be established at the department or program level by planning for the expense of

funds up to the maximum of one month’s card limit each month. Departments and programs with multiple

credit cards should plan accordingly for funds being available monthly for each procurement card issued.

ONLINE RECONCILIATION OF MONTHLY STATEMENTS

Procurement Card Receipt/Invoice

Whether the purchasing transaction is made by telephone, in person or via the web, the cardholder will

need an itemized receipt or invoice. If the receipt or invoice is not itemized, the cardholder must itemize

items on a separate sheet of paper and attach the receipt.

If the cardholder has lost receipts/invoices, and a duplicate copy cannot be obtained from the vendor, then

complete the Lost/Missing Receipt Form.

Print ProCard Transaction Report

Once transactions have been reviewed and the accounting information updated (if necessary) by the

Cardholder, the Cardholder will print a ProCard Transaction Report and submit to the Approving

Official with all the corresponding receipts/invoices. (Refer to the ProCard Peoplesoft User Guide).

Report with original receipts should be forwarded to Pro card Program Administrator.

The processing of credit card payments must include a complete review and analysis of the monthly credit

card charges at every level of responsibility (see below). In support of this review, campus departments

and programs are required to submit supporting documentation in a timely manner. The review shall

include the following:

a. Approving official signature

b. Follow-up of disputed charges from the prior month(s)

c. A review of the completeness of the documentation supporting the monthly credit card

invoice

d. Clearance of outstanding delinquent invoices.

The Online Procurement Card Monthly Reconciliation is due five (5) business days from the cycle

cut-off on the 10th of the month. (The cycle cut off may fall on another date due to weekends or

holidays, when this date changes you will be contacted by your Program Administrator). The

Authorizing Official then has 5 business days to review and approve all transactions.

(Revised 03/14/2013)

RESPONSIBILITIES

Cardholder

It is the responsibility of each cardholder to make appropriate purchases in accordance with the CSU

Channel Islands procurement card program policy and procedure as well as with CSU procurement

policies. The cardholder has the responsibility to:

•

Ensure proper security of the procurement credit card. Do not allow others to use their card.

(Keep their card on their person, or in a locked desk drawer or file cabinet, etc.)

•

New Cardholders will receive training prior to receiving their card. Cardholders may receive

reconciliation assistance if needed. To request training, contact the Procurement Card

Administrator.

•

Reporting any taxable purchases that were not taxed by the vendor to Support Services.

•

Make purchases using the procurement credit card in accordance with CI’s Procurement policy

and CI’s Procurement Card Handbook. Do not purchase prohibited items or attempt to split

transactions to avoid card limits.

•

Direct any questions regarding use of the Procurement Card, clarification of questionable

purchases, etc., to the Procurement Card Program Administrator.

•

Notify the Receiving Department via fax or email if delivery is expected for a procurement card

purchase.

•

Reconcile transactions in a timely and accurate fashion, verifying the date of the credit card

charge, description of purchase, shipping/handling, vendor’s name, account number to be charged,

dollar amounts including tax, and enter the correct account, fund, department, program and project

codes.

•

Resolve any questionable items or disputes online that appear on the statement.

•

Contact the credit card company immediately and report to the Procurement Card Program

Administrator if the card is lost or stolen.

•

Complete your online reconciliation, notify your Approving Official and return the procurement

card to the Procurement Card Administrator or designee in the event of separation of employment.

(Revised 03/14/2013)

Approving Official

The Vice President of each respective division, or their designee, is typically the Approving Official for

departments and programs within their division, although in some cases, the approving official may be the

department head/program chair, dean, director or other administrator.

The Approving Official has responsibility to:

•

Approve requests for procurement cards and procurement card limits.

•

Review all charges and ensure all purchases are appropriate.

•

Ensure no prohibited items have been purchased including that splitting of transactions has not

occurred.

•

Ensure all proper documentation is attached to the ProCard Transaction Report.

•

Approve cardholder’s monthly purchases. Subordinates should not approve a supervisor’s charges.

•

Ensure subordinates do not approve supervisor’s charges.

•

Ensure observance of good business practice to avoid card abuse.

•

Provide counsel and discipline for non-compliance with CI’s Procurement Card policy

including: suspension and/or revocation of the card.

Support Services

The procurement card administrator will:

•

Act as university liaison with credit card vendor for changes to program.

•

Provide training.

•

Order new and replacement cards and maintain listing of card numbers, employee names and

monthly and per transaction limits and increases.

•

Perform monthly audit to ensure compliance with CSU procurement policies and procedures,

detect patterns of card abuse, purchase of prohibited items, or splitting of transactions to avoid

transaction limits.

•

Notify Cardholder and Approving Officials of results of monthly audit findings.

•

Ensure cardholders separating from the University have returned the credit card and have

submitted their final CI Procurement Card Monthly Transaction Report via their Approving

Official to the Procurement Card Administrator.

(Revised 03/14/2013)

REQUESTS FOR PROCUREMENT CREDIT CARD INCREASES

In certain situations, temporary or permanent increases to the daily and/or monthly purchase limit may be

increased. Cardholder should complete the Cardholder Account Maintenance form and submit with

Authorizing Official’s signature to pcard@csuci.edu Increases are effective within 24-48 hours of being

input into the US Bank site, cardholders will be notified when the request has been processed.

REPLACING PROCUREMENT CREDIT CARDS

There may be instances where it becomes necessary to replace your credit card. It will be the

cardholder’s responsibility to initiate this process. Follow the instructions below:

Reporting a Lost/Stolen Procurement Credit Card

The Procurement Credit Card is a valuable asset and should be maintained with reasonable security and

protection. If you cannot find your card, immediately notify US Bank, your Approving Official and the

Program Administrator.

If it is stolen, you must also notify Campus Public Safety (8444). Prompt action can reduce the

University’s liability for fraudulent charges. The US Bank telephone number is:

1-877-887-9260.

US Bank will mail replacement cards with new account numbers to the Program Administrator within

(10) working days of notification. The Cardholder will be notified when the replacement card is

available. Procurement Credit Cards will not be sent through campus mail.

Cardholders should carefully review their new statement and immediately report any incorrect billings or

suspicious transactions to US Bank.

Replacement of Worn Out/Defective Cards

To replace a worn out or defective card, the Approving Official must cut the card in half and return it to

Procurement Card Administrator (or designee), along with a written request for a replacement card.

Do not return a Procurement Card through campus mail.

US Bank will mail replacement cards with new account numbers to the Program Administrator within ten

(10) working days of notification. The Cardholder will be notified when the replacement card is

available. Procurement Credit Cards will not be sent through campus mail.

(Revised 03/14/2013)

REPLACING A CARDHOLDER/AUTHORIZING OFFICIAL

Cardholder

When a Cardholder leaves the department, a written request from the Authorizing Official must be

submitted along with the Cardholder’s credit card cut in half to the Procurement Card Administrator (or

designee). The Cardholder’s final reconciliation must also be submitted to Accounting, preferably before

the Cardholder leaves the department.

Authorizing Official

If an Authorizing Official changes, the Cardholder Account Maintenance form must be completed by the

new Authorizing Official and their Supervisor. Send the completed form to the Program Administrator or

designee.

GUIDELINES FOR CARDHOLDER

•

HOW TO GET STARTED

1. Activate card

2. Prepare a folder for receipts and backup to be stored for reconciliation.

•

HOW TO PLACE AN ORDER

1. Note name of individual whom the order is placed by

2. Instruct vendor to send Attn: Receiving on shipping label

3. Request an itemized copy of receipt showing balance paid

4. For out-of-state vendors, ask about California sales tax. Either vendor charges sales tax

or you assess use tax.* (See What is Use Tax.)

•

WHAT IS USE TAX?

1. CSU Channel Islands must pay 7.50% tax on all items shipped to the campus which are

taxable based on California tax laws. (Call Procurement for clarification about specific

items.)

2. For tax not collected by the vendor, CSU Channel Islands must remit use tax directly to

the Franchise Tax Board.

3. Cardholder will need to include use tax for items ordered from INTERNET vendors

who do not charge sales tax.

To assess use tax, AP will calculate 7.50% of taxable items and remit the amount to

FTB.

(Revised 03/14/2013)

•

ONLINE RECONCILE STATEMENT

1. After receiving notification that transactions are available for reconciliation, login to

PeopleSoft and compare your receipts/invoices to your recorded transactions.

2. Verify transaction date, description of items, and total amount.

3. Verify and update as necessary, each field with the proper account, fund, department,

program, class and project.

4. Print the ProCard Transaction Report and attach all original receipts and other

documents such as business meal backup to the Cardholder Transaction Report.

5. Submit your ProCard Transaction Report with receipts/invoices and supporting

documentation to your approving official for signature and then on to Procurement

Office for storage and auditing.

•

TEMPORARY LEAVE

1. If you are going to be on temporary leave, please notify the Program

Administrator so that your card may be temporarily suspended until your

return.

HOW TO HANDLE DISPUTES

•

Each monthly statement must be paid in its entirety. Disputed charges will be credited after the

dispute is resolved by US Bank.

•

Contact the vendor first to try to resolve the disputed charge.

•

If there is not a resolution with the vendor, contact US Bank to ask for their assistance in resolving

the dispute.

•

Transactions that require disputing still need to be verified and approved in the system. (Follow

the Disputing Transactions located in the User Guide).

•

In addition to submitting the dispute, the Cardholder must provide a copy of the sales receipt along

with this dispute request.

Audit Procedures

The Procurement Policy, Procurement Card Handbook (and subsequent updates) combined with the

Procurement Card Acknowledgement and Responsibility Agreement must be followed by all Cardholders.

Violations may result in a written notice to the Authorizing Official and the department head, mandatory

training sessions, suspension, or revocation of Cardholder privileges. Your Procurement card may be

revoked if you receive four audit findings from the Program Administrator or designee within a 24-

month period.

The Procurement Card Program Administrator or designee performs a monthly post audit review of all

Cardholder documentation. The Cardholder will be notified by e-mail if non-compliance issues are found.

For 1

audit findings the cardholder’s approving official is notified. For 2

through 4

audit findings, the

cardholder’s vice president is also notified.

(Revised 03/14/2013)

•

Each of the following situations are examples of what constitutes a policy violation:

•

Failure to obtain an itemized receipt.

•

Missing the deadline for submitting your reconciled and approved statements to Procurement

Office.

•

Not obtaining Approving Official signature of each monthly statement.

•

Your card account may be suspended or canceled immediately in the following situations:

¾ Using the card for personal purchases.

¾ Splitting a transaction to avoid the limit.

¾ Purchasing an item that is on the “Prohibited Purchases” list.

¾ Allowing someone else to use your card.

¾ Not reporting a lost or stolen card.

The following steps may be taken if there are violations found in the post audit:

violation – Written warning

violation - One month card suspension

violation – Six month card suspension

violation – Procurement Card will be revoked

INFORMATION RESOURCES

US Bank

24-hour Customer Service:

1-877-887-9260.

Procurement & Contract Services

Karina Cruz, Procurement Card Administrator

Procurement Coordinator, Procurement & Contract Services

Lindero Hall 1804

Ext. 8581

pcard@csuci.edu

REQUIRED FORMS:

CSU Credit Card Participant Notification

Procurement Card Program Agreement

Account Maintenance

PeopleSoft Access Request Form:

CSU CREDIT CARD P ROGRAM

PARTIC IPAT ION NOTIFICATION

RETURN FORM

Karina

Cruz,

Procure

ment

rdin

Lindero Hall 1804

Please complete the following information for each card requested. The cardholder’s name will appear on

the credit card exactly the way it reads on this form.

Cardholder will be responsible for making direct contact with vendors and ordering commodities using

the procurement credit card. Cardholders will prepare monthly reconciliation of credit card purchases in

PeopleSoft and submit their backup monthly to the procurement office with the printed and signed

ProCard Adjustment Report.

Monthly $ Limit: $

(NOTE: increments of $100 only)

Single Transaction Limit: $

(NOTE: increments of $100 only)

Default Chartfield:

Account Fund Department Program Project

Cardholder’s Name:

Cardholder’s Emplo yee ID#:

Cardholder’s Signature:

Telephone Number:

Approving Official’s Name:

Approving Official’s Signature:

DEPARTMENT PARTIC IPATION APPROVA L:

Valerie Patscheck DATE:

S IGNATURE: President or designee

FOR

PROCUREMENT

OFFICE USE ONLY:

Card

Ordered

by: Date:

ified of n

card

h old

ate:

(Revised

12/04/2012)

Account:

(Revised 10/04/2012)

California

State

University

Channel

Islands

Procurement

Card (P-Card)

Program

Agreement

Name

Cardholder

Dep

artment

PhoneExtension

No. __

______

The Cardholder agrees to accept the responsibility for use of the P-Card for authorized purchases for official University

business only. The Cardholder has received training for the P-Card and is responsible for ensuring the purchases made via the

P-Card are in accordance with the CSU Channel Islands P-Card Manual.

Specifically, the Cardholder is responsible for security of the card, appropriate use of the card, timely and accurate on-line

approval and reconciliation of transactions, ensuring original receipts are obtained for all transactions, making advance

preparation for monthly statements when planning to be out of the office, immediate reporting of fraud, lost or stolen card to US

Bank, and

up an

resolution

of all disputed charges.

The Cardholder must complete the monthly on-line approval and reconciliation of transactions for each billing cycle within

three working days of notice by ProcCard Program Administrator of the close of the billing cycle. The Cardholder must also

for ward to their Authorizer a printed statement and attach original, itemized receipts/invoices, and backup documentation

within that three day period. The Authorizer will have three working days to complete on-line authorization of transactions.

The printed statement and original receipts/invoices shall be s u b

i t t

o t

r o

c u

r e

f f i

e . This is a

mandatory

requirement.

Should the Cardholder want to terminate the P-Card or if the Cardholder transfers to another University department, the

Cardholder must obtain all receipts for transactions for the current billing cycle (if any), provide these receipts to the

Authorizer and return the P-Card, in person, to the P-Card System Administrator. Should the Cardholder terminate

employment from the University, the Cardholder must obtain all receipts for transaction of the current billing cycle (if any),

provide these receipts to their Authorizer, and return the P-Card to their department as part of the separation/clearance process,

as outlined by Human

Resources,

prior to

separation from

the University.

The Cardholder understands this program is a privilege and failure to follow the procedures contained in the P-Card manual can

result in audit findings, which can result in a

temporary revocation

of use and even

revocation

of this privilege.

The Cardholder must not allow any other individual, including co-workers, to use the P-Card or sign P-Card drafts under any

circumstances. The Cardholder can instruct co-workers to sign packing slips if a co-worker will be picking up items the

Cardholder

has

already

ordered.

Cardholder

Signature

Date

Authorizer

Signature

Date

P-Card System

ministrator

Date

CARDHOLDER ACCOUNT MAINTENANCE

Cardholder Name:

Check One: Change Information Change limits

CARDHOLDER INFORMATION ~ Fill in only the information below that is to be changed.

First Name Middle Initial Last Name

Bldg./Room# Extension

Approving Official Name – (To Change Approving Official)

Monthly Credit Limit: $ Single Transaction/Daily Limit: $

Check One: Permanent Increase/Decrease

Temporary Increase/Decrease Revert to original limits:

Date

Signature of Applicant Date

Signature of Authorizing Official Date

For Procurement Office Use:

Updates made by:

PeopleSoft Updated

US Bank Updated

Cardholder Notified

Date:

(Revised 05/30/2012)

Account:

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