Transcript CMSU's Business Procurement Card

•Purchasing Card Training
Presented
by
Bill Ward
What About This Training
In 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
Introduction
• 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 the
Business Procurement Card
Program (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?
• Report a lost or Stolen Card
• Immediately notify UMB Bank Security at
1-800-821-5184
– Notify BPC Coordinator in the Procurement
Office at 660-543-4001.
What about Procurement
Card Security?
• Only the authorized cardholder may use
the card.
• Cards and card numbers must be
safeguarded against use by unauthorized
individuals in the same manner you would
secure your personal credit card.
• Departments may require the Purchasing
Card to be secured in the department.
Can You Define Procurement
Card Abuse?
• To use the Business Purchasing Card to
purchase unauthorized items, products,
and services or to use it at an
unapproved merchant is considered
abuse.
• The willful misuse or wrongful use of the
BPC will not be tolerated.
What will happen if I Abuse
the Card ?
• First occurrence – Cardholder will receive a warning
letter from the PC Clerk.
• The second occurrence – Cardholder’s account will
be deactivated for at least 3 billing cycles.
• The third occurrence – Cardholder privileges will be
withdrawn.
• Cardholder will be held personally
responsible to paying for the products and or
services.
• Departmental supervisor may request the card to
be withdrawn at any point.
Are there any Unauthorized items, Products,
and Services ?
•
The following is a listing of specific prohibited purchases. However the list is not limited to those nonbusiness 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
priced correctly
• All orders (telephone,on line internet,catalog) make sure
complete shipping address and instructions are given along
with your name, department name, complete street address
direct to Central Receiving
• Cover W5H1
– Who, What, When, Where, Why, How
• Send a copy of order to Central Receiving - This is
CRITICAL!
• NO DOCUMENTATION!!!
NO RECIPT OF GOODS !!!!!
Your ResponsibilitiesKeeping and Documentation
Record
• Cardholders must keep the purchasing paperwork
i.e.
• Sales slips
• Cash register receipts
• Invoices
• Order forms
• Receiving documents receipts
• Et al
Your ResponsibilitiesPurchase Approval Process
• Ensure items your purchase are correct and
correctly priced.
• Cardholders to review charge receipts/cash register
tapes.
• If lost - obtain a copy of a charge or credit slip, call
the UMB Commercial Cards at 1-800-821-5184.
There will be a $2.00 charge for each copy.
• Forward charge receipts to departmental designee.
Your ResponsibilitiesPurchases
Rejected
• 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, Returns and Credits
• Contacting and following up with the
vendor on:
• any erroneous charges
• disputed items or returns
possible.
as soon as
• If the cardholder is unable to reach
agreement with the vendor, the next step
is to contact the 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 Transaction
Does My Supervisor have
Responsibilities?
• Department Head, Chair, Dean, Director
or Manager will:
• Identifying the cardholder and the limits to apply to
the card.
• Ensure transactions logged into the Banner System
• Control spending through the bank summary review
and maintains records.
• Each Supervisor will determine how to secure the
cards and card numbers.
Department ResponsibilitiesProcurement Card Transaction
Audit a
• 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 Sales
documentation and supporting evidence
and visuals.
The Forms and their Usage
• VISA Purchasing Cardholder Account Action
Request
• Purchasing Cardholder Agreement
• Vendor Non-Acceptance Form
• Cardholder Dispute Form
• Sales Tax Exemption Certificate
Purchasing Card Summary on Banner
FAAINVT
How Do I Activate My Card ????
• Your Card will have a GREEN label
across the front with instructions.
• Follow the instructions on the GREEN
label.
• Remove the Sticker after you have
called.
QUESTIONS?????