procurement services corporate purchasing (p-card) card training internal review only. last updated...

Procurement Services Corporate Purchasing (P-Card) Card Training

Internal review only. Last updated October 2012.

Why are you here?

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

This training is meant to protect you, VCU, and the Commonwealth of Virginia from negligent or fraudulent misuse of the P-Card.

You are responsible for ensuring that your purchases are in compliance with state and university policies and procedures.

You are seeking either…..

First time application to the program as a cardholder or reviewer

Annual recertification

Purpose of this training

Get to know the team


– [email protected]– Thelma Stockton

Corporate Cards Program Manager, x84232

– Lena Massie Corporate Cards Associate Manager, x83407

– 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.

VCU Program AdministratorsProcurement Services

Bank of America

Card Provider

mailto:[email protected]

http://payment2.works.com/

http://payment2.works.com/

Preview of the training session


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

Agenda

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.

P-card Basics


WHEN does it expire?Two years from the date of issue.

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

P-Card basics / What is the P-Card?

Learn your responsibilities as a Cardholder


Ensuring purchases comply with VCU policies and procedures, including allowable/non-allowable expenditure

1

Cardholder responsibilities include, but are not limited to

Ensuring transactions are within established transaction limits and monthly credit limits

Processing proper monthly online reconciliation

2

3

P-Card basics / Cardholder’s and Reviewer’s responsibilities

The Reviewer is equally responsible for ensuring compliance of the P-Card.

Ensure Reviewer responsibility


All purchases are valid business expenses

Reconciliation is supported with sufficient documentation, including original receipts

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.

Monthly Responsibilities

What are you looking for?

P-Card basics / Cardholder’s and Reviewer’s responsibilities

Consequences of misuse


Deliberate or recurring noncompliance or failure to perform required duties may constitute cause for disciplinary action up to and including termination of employment.

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.

Please understand the importance of compliance!

P-Card basics / Importance of compliance

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.

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

But it’s your department’s money, why do we care?


Know what you can and cannot purchase (cont…)


Personal items

Gift cards, or any other cash equivalents

Alcohol

Coffee for department use

Flowers

Gifts

Prohibited Local funds only

Charges associated with staff functions

Restricted

Catering/Food

Common items that have special funding rules……

Rentals

Gas Hotels

Travel

Fraud




Prohibited Local funds onlyRestricted

Common items that have special funding rules……


Requires the use of local funds with

appropriate approval.

Card will not restrict

purchase, so responsibility

is on the cardholder to know policy.

Controls in place to restrict the purchase.



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

Therefore, ALWAYS review the “Allowable/Non-Allowable Expenses” policy

Allowable Expenditure Charthttp://procurement.vcu.edu/i-want-to/make-a-purchase/know-what-you-can-and-cannot-buy/allowable-business-expenditure-chart/#.UIFdp2-HKOM

Non-Allowable Expenditure Charthttp://procurement.vcu.edu/i-want-to/make-a-purchase/know-what-you-can-and-cannot-buy/non-allowable-expenditures-chart/#.UIFfKG-HKOM


http://procurement.vcu.edu/i-want-to/make-a-purchase/know-what-you-can-and-cannot-buy/allowable-business-expenditure-chart/




http://procurement.vcu.edu/i-want-to/make-a-purchase/know-what-you-can-and-cannot-buy/non-allowable-expenditures-chart/




Agenda


Use the P-Card as a Cardholder– Obtain and secure a card– Make a purchase– Special card considerations

Obtain and Activate your card


The card will be mailed to the Cardholder’s

departmental PO Box within 7-10 business

days.

Send a completed Employee Agreement form to the VCU

Program Administrators. Form must be signed by you, your

Supervisor and Reviewer.

Complete training and pass test in Blackboard. Reviewer must pass or

have passed test as well.

Activate by calling the number on the sticker attached to your card. You will have to provide the 16 digits of your card number.

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).

Cardholder / Obtain and secure a card

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

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 Minority-Owned 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

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.


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.


Request multiple cards (cont…)


e.g., make

purchases from

a specific grant

fund on that

specific grant

fund’s card.

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.


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 call person fax email mail


Ensure no taxes were charged


• 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.

Remind the vendor that as a State agency, VCU is exempt from Virginia sales tax charges.

You must make every effort to obtain a refund from the vendor if Virginia sales tax is charged.


http://www.controller.vcu.edu./uco/idnumbers.htm

http://www.controller.vcu.edu/uco/st12.pdf

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.

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:

For a complete list, see the link: http://procurement.vcu.edu/i-want-to/use-eva/view-exemptions-list/#.UIFcx2-HKOM

Over the counter goods (purchased

in store)

Conference registration fees

Express delivery services

All goods purchased with

grant funds


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.

P-CARD

K

Cardholder / Special circumstances

Request a higher limit (cont…)


Helpful hintBe sure you know your

transaction and monthly limit to avoid charges being

declined. You can check your limits by logging into

Works.


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.


Get a credit or make a return


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.

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.


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

Cancel your card



Learn the grounds for card suspension


The Program Administrator and Bank of America may suspend cards if:

There is a history of abuse

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.


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/finreporting/Addequipinventory.pdf and submit it to Property Management.

2. Retain a copy of the completed form with your P-Card statement.


http://www.controller.vcu.edu/finreporting/Addequipinventory.pdf

http://www.controller.vcu.edu/finreporting/Addequipinventory.pdf

Agenda



Learn the basics of 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.

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.


Process Online Reconciliation


Step by step process

Retain all original receipts and supporting documentation

Sign-off on transactions (electronically)

Reconcile the Department Transaction Report

Submit to your Reviewer


Give all original documentation to your Reviewer

Process Online Reconciliation (cont…)


http://procurement.vcu.edu/i-want-to/use-p-card/process-online-reconciliation/#.UIFjVW-HKOM

For the detailed procedures on Online Reconciliation, please see the

Procurement Services website.


Dispute a charge


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.

Pricing discrepancies between the supporting documentation and the Department Transaction Report must be documented and resolved.


Agenda


Use the P-Card as a Reviewer

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

Approve Online Reconciliation


What to look for?

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.

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

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/Purchase_Charge_Card_Main.cfm

http://www.doa.virginia.gov/General_Accounting/Charge_Card/Purchase_Charge_Card_Main.cfm

http://www.doa.virginia.gov/General_Accounting/Charge_Card/Purchase_Charge_Card_Main.cfm

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

Ensure transactions were entered into eVA


Ensure all non-exempt transactions are entered into eVA as a PCO.

Reviewer

Keep your supporting documentation


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.

You must retain all supporting documentation with the reconciliation for a period of at least three fiscal years.

Reviewer

Agenda


Summary

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.

procurement services corporate purchasing (p-card) card training internal review only. last updated...

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