Procurement Services Corporate Purchasing (P-Card) Card Training Internal review only. Last updated October 2012. V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Why are you here? You are seeking either….. First time application to the program as a cardholder or reviewer Annual recertification You are responsible for ensuring that your purchases are in compliance with state and university policies and procedures. Purpose of this training This training is meant to protect you, VCU, and the Commonwealth of Virginia from negligent or fraudulent misuse of the P-Card. V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Get to know the team VCU Program Administrators Procurement Services – firstname.lastname@example.org – Thelma Stockton Corporate Cards Program Manager, x84232 – Lena Massie Corporate Cards Associate Manager, x83407 Bank of America Card Provider – Customer Service, 1-888-449-2273 – Monthly statements, http://payment2.works. com. Always contact the Program Administrators with questions before reaching out to Bank of America. We will probably be able to find you an answer quicker. V i r g i n i a C o m m o n w e a l t h Preview of the training session Agenda Learn the P-Card basics What is the P-Card? Cardholder’s and Reviewer’s responsibilities The importance of compliance Use the P-Card as a Cardholder – Obtain and secure a card – Make a purchase – Special card considerations Online Reconciliation Use the P-Card as a Reviewer Summary U n I v e r s i t y V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y P-card Basics WHY do we have the P-Card? To streamline the procurement process for small dollar goods and services required for business purposes only. • Reduces paperwork • Improves efficiency • Speeds up payment to suppliers WHO is eligible to receive one? Employees approved by their Supervisor are eligible. Cards are issued with the Cardholder’s name. Several employees within a department can have cards. WILL this appear on my personal credit reports? No. The card is not a personal liability card. WHEN does it expire? Two years from the date of issue. P-Card basics / What is the P-Card? V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Learn your responsibilities as a Cardholder Cardholder responsibilities include, but are not limited to 1 Ensuring purchases comply with VCU policies and procedures, including allowable/non-allowable expenditure 2 Ensuring transactions are within established transaction limits and monthly credit limits 3 Processing proper monthly online reconciliation P-Card basics / Cardholder’s and Reviewer’s responsibilities V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Ensure Reviewer responsibility The Reviewer is equally responsible for ensuring compliance of the P-Card. What are you looking for? All purchases are valid business expenses Reconciliation is supported with sufficient documentation, including original receipts Monthly Responsibilities All orders are in compliance with procurement policies There are no split charges and limits are not exceeded Merchandise purchased with the card has not been returned for store credit State sales tax was not charged. If so, the refund was processed and documented. P-Card basics / Cardholder’s and Reviewer’s responsibilities V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Consequences of misuse Failure to comply with established policies and procedures may result in a suspension or revocation of the Cardholder’s card privileges and/or employee’s system access to eVA, even for first offense. Deliberate or recurring noncompliance or failure to perform required duties may constitute cause for disciplinary action up to and including termination of employment. Please understand the importance of compliance! P-Card basics / Importance of compliance V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Know what you can and cannot purchase VCU is a nonprofit State-assisted institution and its expenditures receive a more substantive review because it operates in the public sector. But it’s your department’s money, why do we care? Therefore, VCU must ensure that all expenditures are necessary in the fulfillment of its stated mission and are incurred at a reasonable cost. Understanding the definition of a Business Expenditure will help you make smart purchasing decisions. Business Expenditure = an expenditure that is directly related to the operation of a functional area in the fulfillment of its stated mission or objective as part of the University P-Card basics / Importance of compliance V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Know what you can and cannot purchase (cont…) Common items that have special funding rules…… Prohibited Personal items Restricted Fraud Catering/Food Local funds only Flowers Rentals Travel Coffee for department use Gas Hotels Gifts Gift cards, or any other cash equivalents P-Card basics / Importance of compliance Alcohol Charges associated with staff functions V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Know what you can and cannot purchase (cont…) Common items that have special funding rules…… Prohibited Card will not restrict purchase, so responsibility is on the cardholder to know policy. P-Card basics / Importance of compliance Restricted Controls in place to restrict the purchase. Local funds only Requires the use of local funds with appropriate approval. V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Know what you can and cannot purchase (cont…) Therefore, ALWAYS review the “Allowable/Non-Allowable Expenses” policy What are you looking for? 1. Check that your purchase is allowable 2. Ensure that your purchase is allowable for the funding source you are using 3. Confirm that appropriate approvals are obtained and filed with your statement P-Card basics / Importance of compliance Allowable Expenditure Chart http://procurement.vcu.edu/i-wantto/make-a-purchase/know-what-you-canand-cannot-buy/allowable-businessexpenditure-chart/#.UIFdp2-HKOM Non-Allowable Expenditure Chart http://procurement.vcu.edu/i-wantto/make-a-purchase/know-what-you-canand-cannot-buy/non-allowableexpenditures-chart/#.UIFfKG-HKOM V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Agenda Use the P-Card as a Cardholder – Obtain and secure a card – Make a purchase – Special card considerations V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Obtain and Activate your card Complete training and pass test in Blackboard. Reviewer must pass or have passed test as well. Send a completed Employee Agreement form to the VCU Program Administrators. Form must be signed by you, your Supervisor and Reviewer. Activate by calling the number on the sticker attached to your card. You will have to provide the 16 digits of your card number. Cardholder / Obtain and secure a card The card will be mailed to the Cardholder’s departmental PO Box within 7-10 business days. Give your verification code, which is 236 followed by your 6-digit date of birth (for example, a person born on Dec. 3, 1985 will enter 236120385). V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Secure your card Secure your card at all times. Never make a photocopy of your card and never fax, mail or email your full account number. This is especially important when placing orders. Do not lend or share your card with anyone. Card sharing will result in revocation of your card. Other employees should apply for a card if they plan to purchase goods or services. When purchasing via the internet ensure that you are using a Secured Socket Layer (SSL) Version 2.0 or greater. Secured sockets are identified by https:// in the address field. The “s” identifies it as a secure socket. Cardholder / Obtain and secure a card V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Determine your vendor VCU has a 40% expenditure goal for utilization of Small, Woman-Owned and Minority-Owned (SWaM) businesses. VCU is specifically committed to increasing expenditures with Women-Owned and MinorityOwned businesses. Cardholders are strongly encouraged to purchase from SWaM vendors when practicable to assist the University in reaching its 40% SWaM expenditure goal. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Understand the charge to your department Ensure your purchase is charged to the correct index code. Each card is associated with one index code. The card defaults to the index code that is submitted on your P-Card Employee Agreement form. Changes to the index code prior to the charge must be handled through Program Administrator. Changes to the index code after the charge should be handled via a Journal Voucher by the department. The account number 620002 will be used for recording expenditures except those that are designated to a different account number based on the merchant category (e.g. office supplies, printing services, etc.). Who pays the bill The total current balance due on the statement will be processed for payment by Accounts Payable. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Request multiple cards When should you request multiple cards? If you will be routinely purchasing items from different index code accounts. Cardholders can have up to four cards for various index codes. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Request multiple cards (cont…) It is generally best practice to charge expenses to the appropriate index code from the point of purchase, as opposed to using a journal voucher to reconcile later. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Use your card to order goods • To give your order to a vendor, you may: web • call person fax email mail But to give your card number to a vendor, you may: web Cardholder / Make a purchase call person fax email mail V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Ensure no taxes were charged Remind the vendor that as a State agency, VCU is exempt from Virginia sales tax charges. • • • • Provide the vendor with the tax exempt number located at http://www.controller.vcu.edu./uco/idnumbers.htm. Upon request, provide the vendor with a copy of VCU’s tax exemption certificate form. The tax exemption form can be found on the Financial and Reporting website at http://www.controller.vcu.edu/uco/st12.pdf. For internet orders, use comment fields to note VCU’s tax exempt status and the tax exemption certificate number. You must make every effort to obtain a refund from the vendor if Virginia sales tax is charged. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Enter order into eVA • All non-exempt P-Card purchases must be entered into eVA as PCO’s (Purchase Card Order). • Some transactions are exempt from eVA. • It is the Cardholder’s responsibility to ensure transactions are entered into eVA If a purchase is not made using eVA AND the good is not on the exemptions list THEN you still have to enter the confirming order in eVA. VCU has a state requirement to enter a certain % of University transactions into eVA. Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Enter order into eVA (cont…) Certain items are currently exempt from eVA. You do not need to enter P-Card orders into the system if the good purchased falls on this list. Frequently purchased items from the list: Over the counter goods (purchased in store) Conference registration fees Express delivery services All goods purchased with grant funds For a complete list, see the link: http://procurement.vcu.edu/i-want-to/use-eva/view-exemptionslist/#.UIFcx2-HKOM Cardholder / Make a purchase V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Request a higher limit Most P-cards are issued with a standard limit of $5,000 per month and $2,500 per transaction, unless otherwise noted on the Employee Agreement Form. If you require a higher or lower monthly or transaction limit, request that your P-Card Reviewer email the Program Administrators with approval. The highest transaction limit available is $5,000 per purchase. These limit changes are available on a temporary or permanent basis. The limits are not intended to restrict your spending. It is very important that you do not under any circumstance, authorize any charges over the card’s limits. Authorizing a vendor to process separate transactions (split purchases) in order to exceed your limits will result in revocation of your card. Cardholder / Special circumstances P-CARD K V i r g i n i a C o m m o n w e a l t h Request a higher limit (cont…) Helpful hint Be sure you know your transaction and monthly limit to avoid charges being declined. You can check your limits by logging into Works. Cardholder / Special circumstances U n I v e r s i t y V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Change your information Whenever a name is changed due to marriage, divorce, etc. you must provide legal proof to Human Resources before the Program Administrator can authorize the change. When an index number changes the P-Card Program Administrator must be notified to change the default index number on your card. Ex: To change your grant index number when a new grant number is assigned. Cardholder / Special circumstances V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Get a credit or make a return If you find an error or need to make a return, contact the vendor immediately to resolve. The vendor must apply the credit back to your P-Card. Do not accept “store credit.” Contact the Program Administrator for guidance if the vendor will only authorize a store credit. If you and the vendor cannot resolve an issue regarding a credit or return, contact the Program Administrator. Be sure to document all communication with the vendor, including: • Name and title of the individual you spoke with • The date and time of communication • Notes on the discussion • The vendor’s suggested course of action. Cardholder / Special circumstances V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Cancel your card How do I cancel my card? Email the Program Administrator to cancel your card and give it to your Supervisor to cut-up and discard Why would I need to cancel my card? – Termination – Change/move to a different department – As requested by the Program Administrator What do I do if my card is lost or stolen? Immediately contact Bank of America and Program Administrators Cardholder / Special circumstances V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Learn the grounds for card suspension The Program Administrator and Bank of America may suspend cards if: There is a history of abuse Cardholder / Special circumstances Cardholder is on extended leave such as disability, medical, etc. Cardholder is a 10 month employee. The card may be reinstated upon return to VCU. V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Special procedures for goods over $2K Equipment or other tangible items (e.g. furniture or computers) costing $2,000 or more must be reported to the Office of Property Management. 1. Complete the “Addition to Equipment Inventory” form at http://www.controller.vcu.edu/finreport ing/Addequipinventory.pdf and submit it to Property Management. 2. Retain a copy of the completed form with your P-Card statement. Cardholder / Special circumstances V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Agenda Online Reconciliation V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Learn the basics of Online Reconciliation In February 2011, VCU implemented an Online Reconciliation program for Cardholders and Reviewers that requires both to log into the Bank of America Works application to electronically sign off on transactions. Online Reconciliation • Both Cardholder and Reviewer must complete by the closing date of the following month’s billing cycle. • The VCU Purchasing Department is no longer requiring the completion of a log sheet. • Bank of America is no longer sending paper billing statements. Cardholders will receive a system generated Department Transaction Report for reconciliation purposes two days after cycle close. V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Process Online Reconciliation Step by step process Retain all original receipts and supporting documentation Reconcile the Department Transaction Report Sign-off on transactions (electronically) Submit to your Reviewer Give all original documentation to your Reviewer Online Reconciliation V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Process Online Reconciliation (cont…) For the detailed procedures on Online Reconciliation, please see the Procurement Services website. http://procurement.vcu.edu/i-wantto/use-p-card/process-onlinereconciliation/#.UIFjVW-HKOM Online Reconciliation V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Dispute a charge Pricing discrepancies between the supporting documentation and the Department Transaction Report must be documented and resolved. Dispute any unauthorized or forced charges by the vendor. If you are unable to resolve a dispute with the vendor, contact the Program Administrators. Provided the notification is made within 60 days of the charge, Bank of America will investigate and assist in resolving the dispute on the cardholder’s behalf. If any of those charges appear to be fraudulent, contact the Program Administrators and Bank of America immediately. Online Reconciliation V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Agenda Use the P-Card as a Reviewer V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y What to expect as a Reviewer As a Reviewer, you will: Take the mandatory training Report the following to the Program Administrator in a timely manner - Non-compliance - Potential fraud - Changes to Cardholder’s name - Requests to increase/decrease limits - Changes to accounting information (i.e., index code) - Card cancellations and card destruction Reinforce to Cardholder(s) that VCU is liable to Bank of America for all charges and that their card and department are subject to post-audit review of transactions. Monitor transaction/monthly limits for appropriateness Reviewer V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Approve Online Reconciliation At the end of each billing cycle, collect the supporting documentation from the Cardholder. Do not sign off on transactions in Works until you have verified that the transactions are valid business expenses that comply with VCU policies and procedures. What to look for? Ensure that amounts match between the Dept. Transaction Report and supporting documentation Ensure all transactions are accounted for Validate receipts are original receipts Vigorously question any receipt which does not 100% appear to be an original receipt V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Approve Online Reconciliation (cont…) After reviewing the full reconciliation, log into Works and sign off on the Cardholder’s transactions to replenish their credit limit prior to the close of the next billing cycle. The statement billing cycle can be found at: http://www.doa.virginia.gov/General_Accounting/Charge_Card/Pur chase_Charge_Card_Main.cfm V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Ensure goods were actually delivered By approving a transaction, the Reviewer is acknowledging that he/she has seen the items and can verify receipt. If the reviewer did not see the items, then supporting documentation, such as an email from someone other than the cardholder, must be obtained. When performing Banner reconciliation, ensure that charges reflect purchases approved in Works. Reviewer V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Ensure transactions were entered into eVA Ensure all non-exempt transactions are entered into eVA as a PCO. Reviewer V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Keep your supporting documentation You must retain all supporting documentation with the reconciliation for a period of at least three fiscal years. These records are subject to review by VCU officials and auditors. Do not send Department Transaction Reports and/or supporting documentation to Accounts Payable. The bill is submitted electronically by Bank of America and automatically paid by Accounts Payable. Reviewer V i r g i n i a C o m m o n w e a l t h Agenda Summary U n I v e r s i t y V i r g i n i a C o m m o n w e a l t h U n I v e r s i t y Watch out for common mistakes The following are the most common mistakes made by the Cardholder and/or Reviewer: The reconciliation is not completed timely Failure to enter non-exempt P-Card transaction in eVA The card number is photocopied, emailed or faxed Virginia sales taxes are paid to vendors The card is shared with a Supervisor and/or co-workers Receipts are missing Multiple orders are placed in order to circumvent the established limit Appropriate approval is missing for expenditures that require special approval Summary Congratulations! You have completed the training portion of the on-line Corporate P-CardTraining Program. To complete the test click the back tab and select the Corporate P-CardTest.