2.1 How to Obtain a Card
2.2 Decline of Card
2.3 Card Renewal
2.4 Card Cancellation
2.5 Card Changes
2.6 Report a Lost or Stolen Card
2.7 Travel-Related Purchases
2.8 Food Purchases
2.9 Exceptions
2.10 Procurement card departmental review
Section 3 CARDHOLDER RESPONSIBILITIES
3.1 General
3.2 Procurement Card Violation
3.3 Penalties
3.4 Procurement Card Security
3.5 Personal Use
3.6 Receipt of Goods and Materials
3.7 Record Keeping and Documentation
3.8 Reconciliation and Approval Process
3.9 Disputed Monthly Statement Charges
3.10 Sales and Use Tax
Section 4 DEPARTMENT RESPONSIBILITIES
4.1 General
4.2 Department Procurement Card Coordinator Responsibilities
4.3 Monthly Payment Coding
Section 5 FINANCIAL SERVICES RESPONSIBILITIES
5.1 General
5.2 Office of Procurement Services Procurement Card Coordinator
Responsibilities
5.3 Accounts Payable Responsibilities
Section 6 STATEMENTS AND MANAGEMENT REPORTS
6.1 General
6.2 Management Reports
Appendix 1: Procurement Cardholder Account Action Request Form (Sample)
Appendix 2: (Sample)
Appendix 3: Cardholder Dispute Form (Sample)
Appendix 4: Allowable Purchases
Appendix 5: Unallowable/Excluded Purchases
Appendix 6: Cardholder Procurement Card Transaction Log (Sample)
Appendix 7: Procurement Card Food Hosting Document (Sample)
Appendix 8: Missing Receipt Form (Sample)
Appendix 9: Procurement Card Acceptance Form (Sample)
SECTION 1: OVERVIEW <TOP>
The purpose of the Missouri State University Procurement Card Program is to establish a more efficient, cost effective method of purchasing and paying for small-dollar transactions within established usage limits. The Procurement Card can be used for commodity purchases in-store, or via mail, telephone, facsimile or Internet. This program is designed to improve efficiency and convenience for our customers, reduce the number of purchase orders and checks issued, minimize invoice payment processing time and improve the purchasing procedures for low-dollar transactions.
The Procurement Card Program utilizes a Visa credit card as the purchasing instrument. The credit card is issued by UMB Bank through a contract established by the State of Missouri, Division of Purchasing and Materials Management.
-
The Procurement Card is not intended:
- To avoid or bypass appropriate procurement or payment procedures.
- To be used for individual business travel arrangements, entertainment, or services (except as specifically provided for elsewhere herein).
- To be used for Foundation-funded purchases.
- To replace the current UMB Corporate travel card.
- For personal use.
The Procurement Card Program will be administered by the Procurement Card Coordinator in the Office of Procurement Services and by each Department Procurement Card Coordinator.
Individual transactions of $3,000 or less, including shipping and handling, are allowed using the Procurement Card. The total dollar amount of expenditures allowed in a billing cycle (approximately 30 days) is $5,000 unless a higher limit is approved by the Office of Procurement Services. Each department head may set lower limits for the individual transaction limit and/or the billing cycle limit for each cardholder based on the limit needed for the cardholder to perform their official job duties. Higher billing cycle limits may be approved in some instances. UMB Bank pays a vendor within three days of your business transaction. Card usage should be reviewed periodically by the approving department head to ensure appropriate individual transaction limits and monthly limits are commensurate with actual spending.
Any vendor whose products are eligible for purchase under the guidelines set forth herein is considered a potential vendor of the Procurement Card. Some vendor types may be blocked from usage with the Procurement Card. If you present your card to any of these vendors, the transaction will be declined. It is likely that any vendor you currently utilize as a source for commodities will accept the Procurement Card.
Each cardholder is responsible for the security of their card and the transactions made against it. The card is issued in the name of the cardholder and any purchases made against the card will be the cardholder’s responsibility. Use of the card not in accordance with established guidelines may result in personal liability and removal of card privileges. The Procurement Card commits University funds each time it is used by a cardholder. This is a responsibility that must not be taken lightly. If you have any questions about the program or need additional information, please contact your Department Procurement Card Coordinator.
Section 2 CARD USE PROCEDURES <TOP>
2.1 How to Obtain a Card
Interested University employees must read and understand the procedures outlined in this Procurement Card Manual and sign the Procurement Card Cardholder Agreement (Appendix 2). Please read these documents carefully. Your signature on the Procurement Card Cardholder Agreement acknowledges that you have received training in the proper use of the Procurement Card; that you understand the intent of the Procurement Card Program; that you have received, read and understand this manual and the Cardholder Agreement; and that you agree to adhere to the established guidelines.
Contact your Department Procurement Card Coordinator to obtain the necessary approval. See your department head’s secretary if you do not know the identity of your Department Procurement Card Coordinator.
Your Department Procurement Card Coordinator will:
-
Forward a completed Procurement Cardholder Account Action Request (Appendix 1) to the Procurement Card Coordinator in the Office of Procurement Services.
-
Forward a signed Procurement Card Cardholder Agreement (Appendix 2) to the Procurement Card Coordinator in the Office of Procurement Services.
-
Coordinate/provide you with cardholder training. Cardholders must receive training before a card will be issued.
-
Notify you when your card is available for pick up.
Note: Unless otherwise approved, you must be a full-time employee to be eligible to receive a Procurement Card.
2.2 Decline of Card
Any vendor falling within the Procurement Card guidelines is considered a potential vendor of the Procurement Card, even if they do not accept credit cards today.
If the card is declined and you feel the decline should not have occurred, kindly contact the Office of Procurement Services Procurement Card Coordinator or contact your Department Procurement Card Coordinator for assistance. You may also contact UMB Bank Customer Service at 1-800-821-5184. UMB Bank will assist you to determine if the card was declined because of the vendor blocking, because you may have exceeded the monthly cycle limit, because you have exceeded the single transaction limit imposed on your card, etc.
2.3 Card Renewal
A renewal card will be automatically issued before the card expiration date. You will be notified by the Procurement Card Coordinator in the Office of Procurement Services when it is available for pick up. You will be asked to bring your old card and proof of identification when picking up your new card.
2.4 Card Cancellation
To cancel a card, you should cut the card in half and forward it to your Department Procurement Card Coordinator. Your Department Procurement Card Coordinator will forward the canceled card with a completed Procurement Cardholder Account Action Request Form (Appendix 1) to the Procurement Card Coordinator in the Office of Procurement Services. Card usage will be monitored and card privileges may be rescinded if card violations occur. The Office of Procurement Services will notify and consult with the appropriate University administrator prior to rescinding card privileges or canceling a card; however, the Office of Procurement Services reserves the right to cancel your card at any time if deemed necessary as a result of improper card usage as outlined herein.
2.5 Card Changes
Changes can be requested by contacting your Department Procurement Card Coordinator. Your Department Procurement Card Coordinator will complete a Procurement Cardholder Account Action Request Form (Appendix 1) and forward it to the Procurement Card Coordinator in the Office of Procurement Services for processing with UMB Bank.
2.6 Report a Lost or Stolen Card
If your Procurement Card is lost or stolen, immediately notify each of the following:
-
UMB Bank Security at 1-800-821-5184.
-
Your Department Procurement Card Coordinator.
-
The Procurement Card Coordinator in the Office of Procurement Services. Appendix 8 lists the Office of Procurement Services Procurement Card Contacts.
Immediate notification of a lost or stolen Procurement Card will prevent you from being held personally responsible for the payment of unauthorized purchases.
2.7 Travel-Related Purchases
Procurement cards may be used for conference pre-registrations and for the advance purchase of domestic airfare necessary for the conduct of University business. However, procurement cards may not be used for other individual business travel arrangements such as international airfare, hotels, meals, rental cars, gas, etc. Reimbursement for these types of expenses will be made in accordance with the University’s travel policy.
2.8 Food Purchases
All food purchases below $100 are not allowed on the P-Card, regardless of the vendor or the event. Other food purchase guidelines are mentioned below.
On Campus Event:
- Above $100, a food service waiver needs to be obtained from Sodexho and a copy of the waiver on file with the sales receipt.
Off Campus Event:
- If above $100 – Must complete ‘Food Purchases Hosting Document (Appendix 7). Complete and send (via email) a copy of the document to Procurement Card Coordinator prior to the transaction. Also, must obtain an itemized sales receipt for the transaction. Will need to maintain a copy of the food purchases hosting document along with the sales receipt.
Procurement card NOT allowed for following Food transactions:
1. Alcoholic beverages.
2. Foundation-funded purchases.
3. Employee travel expenses that are reimbursable under the University’s travel policy.
4. Hospitality or entertainment expenses.
5. Any food expenses incurred in regard to candidates interviewing for a position with the university are not allowed on the p-card.
2.9 Exceptions
The procedures set forth herein are intended to apply to the majority of procurement card purchases made by University personnel. A request for an exception should be sent in by the respective budgetary authority to the Procurement Card Coordinator in the form of an email. The request is then approved by Director, Office of Procurement Services. If approved by Procurement Services, UMB
Bank will be notified and a memo will be sent to the cardholder, Department Procurement Card Coordinator and Budgetary Authority. A printed copy of the memo should be attached to the sales receipt for that transaction. The Office of Procurement Services reserves the right to decline any request for an exception.
2.10 Objectives of the P-Card Review
The objectives of the P-Card Review are to review P-Cardholders transactions/activities and verify that they are in compliance with the Procurement Card Manual for University Departments.
P-Card Reviews began in June 2008 with an estimate that university departments will have documents reviewed every two to five years. The departments with the highest amount of cardholders and transactions will be reviewed probably more than others compared with departments with just a couple of P-Cards. If problems are found with compliance issues, a follow-up review will be scheduled.
The scope of the P-Card Review will be from two to twelve months of transactions to determine compliance and documentation.
The review consists of verifying that original documents are on file in the department, the monthly transaction log total is verified to the monthly VISA statement and required signatures are showed on the copy kept in the file for each cardholder.
After the scheduled P-Card review, a memo is sent to the department record keeper noting the exceptions and findings for process improvements for each cardholder or department as a whole. If there are missing documents, the record keeper is asked if they can locate the receipts in 10 days. If taxes have been charged on a P-Card purchase, the record keeper is asked to obtain a credit from the vendor for the amount of the tax charged. If signatures are missing from the transaction log or VISA statement, the record keeper is required to have the proper authorities to sign off on the forms.
A final document is issued to the reviewed department with a Summary Review Report letter and P-Card Review Summary Report listing whether the department was in full compliance with P-Card requirements or listing any findings or problems that could not be resolved during this review, such as P-Card purchases at the MSU Bookstore, payments for hotel rooms, meals over the daily limit, or purchases over the daily or monthly limit.
Section 3 CARDHOLDER RESPONSIBILITIES <TOP>
3.1 General
You are responsible for the security of your Procurement Card and the transactions made against it. The card will be issued in your name and any purchases made against the card will be your responsibility. Use of the card not in accordance with established guidelines may result in personal liability. The Procurement Card commits University funds each time you use it. This is a responsibility that must not be taken lightly.
3.2 Procurement Card Violation
You are responsible for and accountable to your department and to the Office of Procurement Services for all charges made with the Procurement Card. Violation of any policies or procedures of this program will result in a review of the cardholder’s privileges. The Office of Procurement Services will notify the cardholder’s supervisor of improper card use and may also notify other University administrators, up to and including the appropriate Vice President, depending on the nature of the violation. Improper use of the Procurement Card may be cause for disciplinary action, may subject you to criminal prosecution, revocation of the Procurement Card, or termination of employment. The Office of Procurement Services will notify and consult with the appropriate University administrator(s) regarding the disciplinary action to be taken. Amounts determined to be bona fide obligations of the University that are attributable to improper use by you may be withheld from your paycheck or any other amounts which may be payable to you by the University. You will be granted notice and the opportunity to challenge such obligations before they are withheld. Appendix 4 lists some of the items that are allowable purchases with the Procurement Card. Appendix 5 list some of the items that are unallowable/excluded purchases. Appendixes 4 and 5 are not complete lists of acceptable/unacceptable items, but are intended to give you examples. If you are uncertain as to the acceptability of a purchase, please contact the Office of Procurement Services for guidance prior to making the purchase.
If purchases appear inappropriate on a monthly billing statement, you will be required to supply written justification to your Department Head and to the Department Procurement Card Coordinator. If the justification is insufficient, appropriate action will be taken by your Department Head and/or by the Office of Procurement Services in consultation with your Department Head and other University administrators, as appropriate. In addition, steps will be taken to return the goods or have you pay the vendor directly. The department may also elect to have you pay UMB Bank for the goods using personal funds. If you have any questions concerning the appropriateness of a purchase, please contact your Department Procurement Card Coordinator or the Office of Procurement Services prior to making the purchase.
3.3 Penalties
Cardholder Penalties
When policy violations by a particular cardholder are identified during review of the monthly transactions, the following process shall be followed, per the discretion of the Director of Procurement Services:
- If a single abuse occurs by a particular Cardholder, a warning may be issued by notifying Director, Procurement Services, Department Procurement Card Coordinator and Budgetary Authority.
- In the second instance of abuse, the procurement card may be suspended for at least one (1) billing cycle.
- If problems continue after the card is reinstated, the card may be canceled or suspended up to one (1) year.
- Procurement Services can impose the same penalties stated above if problems are found during department reviews. If warnings are issued by Procurement Services, the Director, Procurement Services, Department Procurement Card Coordinator and Budgetary Authority will be notified if the card is either temporarily or permanently suspended.
- The Department Coordinator has the responsibility to notify the Procurement Card Coordinator of any policy violations.
- The Budgetary Authority can request a card to be closed or suspend the card for a longer period.
Department Penalties
Procurement Services may impose penalties for any of the following occurrences:
- If transactions are not reviewed in the Visa Information Source System and signed statements and logs are not provided to Procurement Services by the 15th of each month.
- Repeated Cardholder abuse and/or department abuse.
- Improper Documentation.
When penalties are imposed the following process will occur:
- At the first instance, a warning will be issued to the Department Coordinator, Budgetary Authority, Dean, or Department Head and the problem referred to Internal Auditing if it warranted by the degree of severity.
- If not corrected after a second review, the budgetary authority, Dean, or Department Head will be contacted and cards for the entire department may be suspended for at least one (1) billing cycle.
- After a third review, cards may be canceled up to one (1) year.
3.4 Procurement Card Security
When you receive your card, sign the back of the card immediately and always keep it in a secure place. Only the authorized cardholder can use the card. Your card is your responsibility. Your card and card number must be safeguarded against use by unauthorized individuals in the same manner you would secure your personal credit card.
3.5 Personal Use
Although the card is issued in your name, it is the property of Missouri State University and is only to be used for Missouri State University business purchases as defined in this manual. Personal use of the card is strictly prohibited.
3.6 Receipt of Goods and Materials
You are responsible for ensuring receipt of goods and materials and must follow-up with the vendor to resolve any delivery problems, discrepancies, and damaged goods.
For Internet, telephone or catalog orders, make sure complete shipping address and instructions are provided to the vendor, along with your name and telephone number. The complete shipping address should include your name, department name, complete street address, building and room number, city, state, zip code. All deliveries for the Springfield campus should use 901 S. National Avenue as the street address. This will ensure that items delivered to the Receiving Dock are able to be delivered to the appropriate department and to the appropriate location within the department.
Otherwise, Receiving will have no way of identifying where the package should be delivered when it is received. Deliveries for the Mountain Grove and West Plains campuses should specify the Receiving Dock address as the street address.
If goods or materials are ordered by phone, ask the vendor to include a detailed sales receipt in the package and explain we are a tax exempt organization. In some cases, our tax exempt status cannot be accommodated for orders placed over the Internet. In those instances, the company must be contacted by telephone to determine the appropriate method for handling the purchase to ensure that sales tax is not charged. Either an invoice or a printout of the order confirmation should be kept on file. Document should include shipping costs.
Save the credit card receipt and shipping documentation. All purchases require detailed transaction documentation from the vendor regardless of the order method. To prevent duplicate payments, please tell the vendor NOT to invoice Missouri State University. The detailed charge receipt they give you will serve as an invoice. Because the charge receipt is the invoice, ask the vendor to give a detailed description of goods, not just “misc.” If a detailed invoice cannot be obtained from the vendor, a written itemization of the charges must be attached to the receipt from the vendor showing the charge amount. You can include the detailed itemization on the Cardholder Procurement Card Transaction Log (Appendix 6), write it on the documentation that the vendor gave you, or attach a separate sheet to the back of the vendor documentation.
Charges for freight should be checked to ensure that the amount is correct according to the freight terms stated by the company or noted on the packing slip.
If a charge or credit slip, etc., is lost, you are responsible for working with the vendor to obtain a copy. If the replacement document is not an original, you must certify that the original charge or credit slip, etc., is lost and the replacement must be treated as an original. If you are unable to obtain a copy of a missing receipt, contact your Department Procurement Card Coordinator for assistance. If all efforts to obtain a copy of the receipt are in vain, a missing receipt form should be kept on file as a replacement to the sales receipt.
3.7 Record Keeping and Documentation
Standard payment policies require retention of receipts and other documentation for a minimum of five (5) years following the date of purchase. Each purchase must be recorded by you on a
Cardholder Procurement Card Transaction Log (Appendix 6). You must log all pertinent data onto the transaction log. Receipt of goods data, including but not limited to, receipt date and complete or partial shipment, must be entered on the transaction log. Please ensure entries in the transaction log are accurate and legible.
As long as the attached invoice, packing slip, or other payment documentation is detailed, the items purchased may be described in general terms on the transaction log. The transaction log is signed by the cardholder (certifying that the transaction log is complete and correct in accordance with University and department payment and purchasing regulations). The Department Procurement Card Coordinator must also certify that he/she has audited the transaction log and the charges appear to be in accordance with University payment and purchasing regulations.
Record keeping is essential to ensure the success of the program. To facilitate the reconciliation and approval process, you are responsible for keeping all credit card slips, cash register receipts, packing slips, etc., until submitted with the monthly statement to the Department Procurement Card Coordinator. The Department Procurement Card Coordinator is responsible for keeping all required documentation for a minimum of five (5) years following the date of the purchase transaction. Failure to obtain and retain the required documentation as specified above may result in termination of Procurement Card privileges.
3.8 Reconciliation and Approval Process
Cardholders must keep sales receipts and Procurement Card transaction logs together and send to the Department Procurement Card Coordinator within three working days of the date the billing cycle ends. Cardholder statements are available through Visa Information Source following each billing cycle and must be reconciled to the Cardholder Procurement Card Transaction Log (Appendix 6). When sending monthly statement documentation to your Department Procurement Card Coordinator, the order of the documentation should be as follows: 1) monthly billing statement, 2) written justification, if necessary, 3) charge and credit slips, packing slips, etc., in the order that they appear on the statement and 4) a copy of the transaction log pages that list the applicable purchases. Original transaction log pages should be attached if payment has been processed for all purchases listed on the page.
Each department may establish its own approval processes. However, as a minimum, an individual with budgetary authority for the budget to be charged must approve all Procurement Card transactions being submitted for payment by signing in the space provided at the bottom of the Visa billing statement after the transaction log has been audited by the Department Procurement Card Coordinator. Make sure that you know the proper way to process Procurement Card transactions within your department. Monthly statements must be paid promptly for the Procurement Card program to be successful. Failure to process Procurement Card transactions for payment in a timely manner may result in termination of Procurement Card privileges.
3.9 Disputed Monthly Statement Charges
Disputed billings can result from failure to receive goods or materials, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. You
are responsible for reviewing the monthly billing statements for discrepancies and for contacting and following up with the vendor on any erroneous charges, returns or other disputed items within one working day of finding a disputed item. Disputed items should be documented in writing along with the resolution agreed to between you and the vendor. A copy of the written documentation should also be attached to the applicable monthly billing statement.
If resolution does not occur after follow-up with the vendor, contact your Department Procurement Card Coordinator for assistance. If necessary, the Department Procurement Card Coordinator will ask you to complete a Cardholder Dispute Form (Appendix 7) and provide written justification. The written justification must explain the discrepancy and steps that were taken by you and others within the department to resolve the issue. Your Department Procurement Card Coordinator will work with the Procurement Card Coordinator in the Office of Procurement Services and UMB Bank for resolution with the vendor. It is important that disputed items be addressed as quickly as possible.
The bank must be notified of any disputed items within 60 days of the last cycle in which the item was purchased.
If fraudulent charges appear on your statement, immediately notify your department management and Department Procurement Card Coordinator. Your Department Procurement Card Coordinator will immediately notify the Procurement Card Coordinator in the Office of Procurement Services.
3.10 Sales and Use Tax
Be sure to remind the vendor of the university’s tax exempt status when making a purchase. The University’s tax exemption ID number is printed on the front of your Procurement Card.
Missouri State University is exempt from paying Missouri sales or use tax pursuant to Section 144.030.2(20), RSMo.
You are responsible for ensuring sales and use tax is not included in each charge. If sales and use tax is included, then you must work with the vendor to correct the purchase amount. If sales tax is charged, you must supply written justification explaining why the charging of sales tax was approved by you at the time of the purchase. Any sales tax charged in error must be entered in the transaction log as a separate log entry. When the sales tax is corrected, a negative entry should be recorded in the log showing that the sales tax adjustment has been corrected. The cardholder will be required to reimburse the University for any such sales tax charged that is not reimbursed by the vendor.
Section 4 DEPARTMENT RESPONSIBILITIES <TOP>
4.1 General
Each department must appoint one Department Procurement Card Coordinator. A backup department coordinator should also be appointed, to assist the Department Procurement Card Coordinator and provide coverage when the Department Procurement Card Coordinator is out of the office. Department Procurement Card Coordinators should not review and approve their own purchases. The names, telephone numbers and E-mail addresses of the coordinators must be communicated in writing by the appropriate Department Head to the Procurement Card Coordinator in the Office of Procurement Services. Procurement Card contacts within the Office of Procurement Services are listed in Appendix 8.
4.2 Department Procurement Card Coordinator Responsibilities
The responsibilities of the Department Procurement Card Coordinator include, but are not limited to:
-
Attending training on the Procurement Card Program to ensure a comprehensive understanding of the intent of the program, established guidelines, and the duties and responsibilities associated with being a Department Procurement Card Coordinator.
-
Working with the department’s management to determine who is eligible for a Procurement Card, coordinating cardholder limits, auditing and signing transaction logs, alerting management of any spending concerns resulting from a review of the billing statement, and keeping records of all department cardholders.
-
Completing the Procurement Cardholder Account Action Request Form (Appendix 2) and obtaining an authorized signature on the form. The authorized signature must be an original signature that has budgetary authority for payment and procurement transactions.
-
Ensuring a potential cardholder has a copy of the Procurement Card Manual and the Procurement Card Cardholder Agreement.
-
Training each employee prior to the distribution of the Procurement Card to the employee. The training must include, but is not limited to, the topics covered in the Procurement Card Manual and the Procurement Card Cardholder Agreement. The training must cover in detail card use procedures and cardholder responsibilities.
-
Picking up the Procurement Card(s) from the Office of Procurement Services. The Department Procurement Card Coordinator is required to sign a Procurement Card Acceptance Form (Appendix 9) stating that the card will be kept in safekeeping or in a locked file until distribution to the named cardholder and that no card information will be given to unauthorized personnel by the coordinator.
-
Distributing the Procurement Card to the cardholder and obtaining the cardholder’s signature on Appendix 9 acknowledging receipt of the card. Each department needs to determine how to secure each card and card number. In some cases, the department may elect for the individual cardholder to carry the card. Other cases may result in the card being stored in a secure place in the department. In case, the card and account number information MUST be protected at all times.
-
Processing any department approved changes requested by the cardholder which fall within the Procurement Card guidelines. The Department Procurement Card Coordinator should complete a Procurement Cardholder Account Action Request Form (Appendix 2) and send to the Procurement Card Coordinator in the Office of Procurement Services.
-
Retrieving and cutting up any card when a cardholder assumes different duties within the department that do not require the use of the Procurement Card or when the cardholder leaves the department. After the card is cut-up, the Department Procurement Card Coordinator must send a completed Procurement Cardholder Account Action Request Form (Appendix 2) and the cut-up card to the Procurement Card Coordinator in the Office of Procurement Services.
-
Ensuring the cardholder has attached a credit slip, charge slip, packing slip, cash register slip, paid receipt, etc., as appropriate, for each item listed on the monthly billing statement.
-
Reconciling the Cardholder Procurement Card transaction log to the monthly billing statement to ensure that all purchases have been documented properly on the log. Your signature is required on the Cardholder Procurement Card Transaction Log (Appendix 6) certifying that you have completed the review/reconciliation and that all charges appear to be in accordance with all University and department payment and procurement regulations.
-
Verifying that the vendor name on the monthly billing agrees with the credit slip, etc., supplied by the cardholder. If the vendor name does not agree, work with the cardholder to resolve.
-
Checking to make sure that the “Ship To” address on the documentation appears to be correct. If not, question the cardholder or other appropriate personnel.
-
Requesting written justification from the cardholder for any sales tax charges. Ensure that any sales tax charges are entered as a separate entry on the transaction log and that the cardholder is working with the vendor to correct the error. If the sales tax issue is not resolved within a reasonable period, report the status to department management for resolution.
-
Requesting written justification from the cardholder for any purchases that appear inappropriate. This justification must be approved by an authorized payment and procurement authority within the department.
-
Electronically verifying the payment coding/cost allocation on cardholder billing statements and changing budget and/or expense code information as deemed necessary and appropriate. (See the Visa Information Source Cardholder Manual.)
-
Enter a product description in the VIS system for every transaction instead of having it being ‘Auto Allocated’
-
Obtaining the necessary department authorized signature on each cardholder’s monthly billing statement. (See the Visa Information Source Cardholder Manual.)
-
Ensuring that the transaction log has original signatures by the cardholder and by you and ensuring that the billing statement has the original signature of the Department Head or other individual with appropriate budgetary authority.
-
Ensuring that the cost allocation reports are properly coded and approved by the Department Head within seven (7) calendar days of the date the billing cycle ends, or no later than the 19th day of the month in which the billing statement becomes available.
-
Maintaining the original credit slips, charge slips, packing slips, cash register slips, receipts, etc., and a copy of the transaction log for each cardholder in your department for a minimum of five (5) years from the date of purchase as required by the University’s records retention policy. You should also keep a copy of each cardholder’s monthly billing statement with the applicable purchase documentation for each item on the billing statement. Audits of the required documentation will be conducted periodically, or as deemed necessary, by the Office of Procurement Services to ensure that established procedures are being followed.
-
Forwarding the original signature Cardholder Procurement Card Transaction Log and the original signature monthly billing statement for each cardholder (signed by the Department Head) to the Procurement Card Coordinator in the Office of Procurement Services within seven (7) calendar days following receipt of the billing statements.
-
Forwarding a completed Cardholder Dispute Form (Appendix 7) to the Procurement Card Coordinator in the Office of Procurement Services if a discrepancy appears on a monthly billing statement that cannot be resolved between the cardholder and vendor. The Procurement Card Coordinator in the Office of Procurement Services will forward the form to UMB Bank. The bank will work with the vendor to resolve the issue.
4.3 Monthly Payment Coding
The department is responsible for ensuring that charges are in accordance with University and department regulations. It is the Department Procurement Card Coordinator’s responsibility to ensure that the account (budget) coding for each transaction is correct before payment is processed by Accounts Payable. Charge any sales tax awaiting correction to the same object code as the commodity purchase.
Section 5 FINANCIAL SERVICES RESPONSIBILITIES <TOP>
5.1 General
The Office of Procurement Services has appointed one Procurement Card Coordinator and a back-up coordinator. Accounts Payable will review and process Procurement Card payments. These employees have been trained to assist departmental personnel, Department Procurement Card Coordinators and management with the Procurement Card program. Procurement Card contacts within the Office of Procurement Services and Accounts Payable is listed in Appendix 8.
5.2 Office of Procurement Services Procurement Card Coordinator Responsibilities:
The Office of Procurement Services Procurement Card Coordinator’s responsibilities include, but are not limited to:
-
Working with the Department Procurement Card Coordinators and UMB Bank to obtain Procurement Cards and make any changes to the cards.
-
Working with UMB Bank and Department Procurement Card Coordinators to resolve any issues/concerns related to the Procurement Card Program.
-
Keeping records of completed forms submitted to UMB Bank for each cardholder.
-
Reviewing forms submitted by each Department Procurement Card Coordinator to ensure that each form has the required information completed and an original department authorized signature.
-
Applying the Office of Procurement Services approval signature on the forms after review and forwarding the forms to UMB Bank for processing.
-
Updating the Procurement Card Manual and other documentation as needed.
-
Training each Department Procurement Card Coordinator. The training must include, but is not limited to, the topics covered in the Procurement Card Manual, the Procurement Card Cardholder Agreement, and the Cardholder Manual for Visa Information Source (VIS). The training must cover in detail the Department Procurement Card Coordinator’s responsibilities contained herein and in the VIS manual.
-
Distributing Procurement Cards to the Department Procurement Card Coordinators. Cards must be secured in safe keeping until picked up by the Department Procurement Card Coordinator.
-
Requiring the Department Procurement Card Coordinator to sign and date the Procurement Card Acceptance Form (Appendix 9), acknowledging receipt of each card.
-
Maintaining a master list of all Procurement Cards including, but not limited to department name, cardholder name, card number, and date issued in safe keeping or in a locked file.
-
Notifying UMB Bank of any card cancellations or changes in cardholder name and/or address.
-
Sending a completed Cardholder Dispute Form (Appendix 7) and written justification to UMB Bank if a discrepancy appears on a monthly billing statement that cannot be resolved between the cardholder and vendor. The bank will work with the vendor to resolve the issue. The original signature of the Department Procurement Card Coordinator and the department’s authorized signature are required on the form.
-
Auditing Procurement Card Program processes and departmental records on a scheduled basis to ensure compliance with established procedures and guidelines.
5.3 Accounts Payable Responsibilities
Accounts Payable responsibilities include but are not limited to:
-
Reviewing the payment coding for proper budget authority.
-
Processing payment to UMB Bank.
-
Completing the transfer of funds from appropriate departmental budgets for purchases made during the reporting period.
Section 6 STATEMENTS AND MANAGEMENT REPORTS <TOP>
6.1 General
The Department Procurement Card Coordinator will have electronic access to cardholder statements for the applicable department’s cardholders, based on the billing cycle date agreed to by the University and UMB Bank This statement is to be used to reconcile transaction logs and receipts/invoices. The monthly billing statement and required documentation must be retained by the Department Procurement Card Coordinator for a minimum of five (5) years from the date of purchase as required by the University’s records retention policy.
6.2 Management Reports
A master summary (Company Billing Statement) of each department’s cardholder charges is provided to Accounts Payable each month. The master summary will be used by Accounts Payable to process payment to UMB on or about the 20th of each month for charges made during the billing cycle.
Appendix 4: Allowable Purchases <TOP>
The Missouri State University Procurement Card may be used to purchase items equal to or less than $3,000.00 classified as commodities such as consumable supplies, maintenance materials, parts, and other miscellaneous purchases.
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 Procurement Card, but is intended to assist you in getting a general idea of acceptable purchase transactions.
Allowable Purchase Descriptions
Advance Purchase of Airfare (domestic only)
Commodities on Contract
Conference pre-registration fees, including web casts
Custodial supplies
Electronic data processing supplies
Food: Refer to policy on page 6
Freight and expedited (overnight) shipping charges
Operating and maintenance supplies
Other technical and specialized supplies
Printing and photography supplies
Printing services (subject to receiving a waiver from Printing Services, as applicable)
Professional memberships
Publications and subscriptions
Small tools
Appendix 5: Unallowable/Excluded Purchases <TOP>
The Missouri State University Procurement Card may not be used to purchase items that are not in accordance with the University's payment and procurement rules and regulations.
Following is a list of some unallowable/excluded purchases. This list is not intended to be a complete list of unallowable/excluded purchases that can be made with the Procurement Card but is intended to assist you in getting a general idea of unacceptable transactions.
Unallowable/Excluded Purchases
Alcoholic beverages
Bookstore purchases and any transaction within the university that should be on a budget transfer
Capital assets/inventoriable equipment purchases, including computers, laptops
Cash advances
Construction, renovation, or installation
Dell purchases
Employee travel expenses that are reimbursable under the University's travel policy, except as specifically provided for elsewhere herein. Procurements cards may not be used for individual business travel arrangements such as international airfare, hotels, meals, rental cars, fuel, etc.
Foundation-funded purchases
Foreign vendors
Furniture
Gasoline or fuel of any kind
Gifts, gift cards/certificates, awards or prizes
Hospitality or entertainment (unless an exception is granted for a specific purpose)
International Airfare
Leases and rentals of facilities/space
On-line data services
Personal computers and Personal Digital Assistants (PDA's)
Personal use items
Postage stamps
Purchases involving trade-ins
Purchases that by-pass or circumvent existing procurement or payment procedures
Services (consulting, professional services, independent contractor, etc.)
State sales tax
Telecommunications services and equipment including cellular telephones, pagers, etc.
Televisions
Weapons, ammunition