Transcript CMSU's Business Procurement Card

Initial Procurement Card Training
Updated September 2005
Presented by
Debbie Trobough
Business Procurement Card Coordinator
What About This Training
This is a Initial training session we will cover
these items:
 The intent of the procurement card
program and basic rules.
 Review findings from State of Missouri
Auditor on our Procurement Card Program.
 Review of your responsibilities as a
cardholder, supervisor, department.
 Forms, Listserve and other changes.
 My name is Debbie and I am the
Business Procurement Card Coordinator
BPCC
Introduction
The purpose of CMSU’s 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.
Establish a viable non cash payment
alternative system for the
University
How to Obtain a Card
 Your department/unit must indicate
approval and advise the BPC Coordinator
 Department fills out Account Action Request
Form.
 Forward form to the BPC Coordinator.
 BPC Coordinator contacts the Bank. Upon
arrival of card, training is scheduled. You fill
out Cardholder Agreement Form and BPC is
issued.
How to Cancel a Card
 Notify BPC Coordinator of
1) Termination 2) Transfer 3) Job
Duties-No procurement required.
 BPC Coordinator deactivates the card
 End user turns card into Department
How to Renew a Card
 A renewal card will automatically be
mailed to the BPC Coordinator.
 BPC will provide the card to you.
Basic Rules for 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.
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 BPC is
secured in the department.
Report a Lost or Stolen Card?
 1. Immediately notify UMB Bank Security at
1-800-449-9176
 2. Notify BPC Coordinator and the
Accounting Office at 660-543-4684.
 3. Notify your supervisor.
It is very important that this is
accomplished immediately, because
the cardholder is responsible for all
charges made with the card.
Procurement Card Abuse
Defined
 To use the Business Procurement
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 Could happen if I Abuse
the Card ?
 BPC Coordinator could deactivate the card
immediately and confiscate it within 24
hours.*
 The end user could be responsible for
paying for all of the unauthorized product
or services.*
 University purchasing privileges withdrawn
and could not be allowed to apply for
reinstatement of the BPC for a minimum of
one year.*
 *Awaiting final approval by CFO
What are My Responsibilities?Receipt of Goods and Materials
 Ensure you have received the correct
goods and they are priced correctly
 For all orders (telephone,on line internet,catalog)
make sure complete shipping address and
instructions are given along with your name,
department name, address and phone number.
Central Receiving is located at 108 W South Street.
Contact receiving clerk Rosalie Hiatt at 543-4741.
 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 Responsibilities-
Record
Keeping and Documentation
 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 you purchase are listed and
priced correctly.
 Review charge receipts/cash register tapes.
 If lost - obtain a copy of a charge or credit slip,
call the UMB Commercial Cards at 1-800-8215184. There will be a $10 charge for each
copy.
 Forward charge receipts to departmental
designee.
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 BPCC 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 as
soon as possible.
 If the cardholder is unable to
reach agreement with the vendor,
the next step is to contact the BPC
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) Must
forward copies of orders to Central
Receiving. Check return policy before placing
order.
What are the Department’s
Responsibilities ?
 Record Keeping and Documentation
 Reconciliation and Approval 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 transaction logs are complete.
 Control spending through the bank
summary review and maintains records.
 Review cardholder transactions for
appropriate charges and take action on
abuse.
Missouri State Auditor’s Report
 Seven of 10 four-year universities
spent nearly $84 Million Dollars via
the P Card
 MU-All four campus, Truman State
and Central Missouri State University
were audited.
Missouri State Auditor’s Report
Findings on CMSU:
 Unauthorized purchases of food,
gasoline and other items.
 Purchases not supported with
documentation.
 Purchases exceeding cardholder
limits.
 Splitting orders to avoid bidding.
 P Cards not used for extended
periods.
Missouri State Auditor’s Report
Recommendations for CMSU:
 Ensure cardholders are trained on
proper use of the card.
 Departments to approve P Card
purchases and require budget
directors attend training.
 Evaluate/analyze employee’s need for
card on periodic basis.
 Review and report compliance,
identify problems make corrections.
The Forms and their Usage
 VISA Purchasing Cardholder Account Action
Request
 Business Procurement Cardholder Agreement
 Cardholder Dispute Form
 Sales Tax Exemption Certificate
 Business Procurement Card Summary
Transaction Log
 Cardholder Check list – NEW FORM
 Requirement to sign up for P-Card
ListServ
Using the P Card Forms
 1. Inspect the receipt to ensure charges are
correct.
 2. Write the business purpose on the receipt.
 3. Turn in receipts to departmental designee.
 4. Place P Card Charge on the Log Sheet.
 5. End of the Month prepare Check List Form
and review each charge of the month.
 5. End of the Month prepare the Summary
Report
Procurement Card Transaction Log
Procurement Card Summary Log
Department:
Card #
Card Holder
Budget #
Budget #
Budget #
Budget #
TOTAL
Cardholder #1
$0.00
Cardholder #2
$0.00
Cardholder 33
$0.00
Checklist Form
Cardlholder Name (Please Print) _____________________________________
**If the NO box is checked please provide explanation**
Yes
No
Requirements
All receipts are attached
explanation:
All receipts are itemized
explanation:
Sales tax has not been charged on exempt purchases
explanation:
All meals list business purpose and attendees
explanation:
Business purpose delineated on all receipts
explanation:
Cardholder Signature (Required)___________________________________
Supervisor Signature (Required)___________________________________
I have reviewed and approved the Procurement Card charges attached.