PCard Manual FY16 - Middle Georgia State College
Contents
1. Submission of the Purchase Card Package to Business Services The Authorizing Official should submit the following original documentation to Purchasing Office Accounting Services Office on or before the 20th of each month e Each procurement card statement e Purchasing Card log e All supporting documentation e All disputed statements e All violations and e All purchase return forms Last Updated 10 28 2015 14 6 4 P CARD RECONCILIATION TIMELINE MGA Purchasing Card Administrator is responsible for ensuring that all the monthly statements for all cardholders are reconciled with the amount posted to the bank account All supporting documentation will be reviewed and attached to the reconciliation for auditing purposes Cutoff Deadlines For Purchases Reporting Monthly cutoff for cardholder purchases posted 4 of each month Procurement card statement issued to cardholder 12 of each month Cardholder posting of reconciliation to the shared drive 15 of each month Cardholder submission to Authorizing Official 15 of each month Purchase package to MGA Purchasing Card Administrator 20 of each month MGA Purchasing Card Administrator posting of purchases 25 of each month It is the responsibility of each cardholder to resolve all disputes It is not the responsibility of MGA Purchasing Card Administrator to resolve disputes for purchases made by the cardholder however the MGA Purchasing Card Administrator will provide assistance whenever2. l Middle Georgia State University PURCHASING CARD PROGRAM MANUAL FY2016 Purchasing Card Administrator Barbara Burns Purchasing Director Phone 478 471 2502 Fax 478 471 2097 barbara burns mga edu Purchasing Card Coordinator Tiffany Leslie Purchasing Assistant Phone 478 471 2701 Fax 478 471 2097 tiffany leslie mga edu Last Updated 10 28 2015 1 TABLE OF CONTENTS 1 OVERVIEW OF PURCHASING CARD PROGRAM 1 1 What is a Purchasing Card 1 2 Use of the Purchasing Card 2 WHERE TO GET HELP 2 1 Bank of America 2 2 Middle Georgia State University Purchasing Department 3 CARDHOLDER POLICIES AND PROCEDURES 3 1 Obtaining a Card 3 2 Keeping Your Card Secure 3 3 Sales Tax Exemption 3 4 What kinds of purchases are authorized 3 5 Limitations Specific to Your Card 3 6 Automatic Renewal 3 7 Termination of Employment 4 HOW TO USE THE P CARD 4 1 Purchases in Person 4 2 Purchases by Contract Internet Phone Fax or Mail 4 3 Returns Damaged Goods Credits 5 DISPUTED TRANSACTIONS 5 1 Dispute of Statement Item 5 2 Dispute with Supplier 6 GENERAL RECONCILIATION INSTRUCTIONS 6 1 Purchasing Department 6 2 Cardholder and Div Dept Head 6 3 Authorizing Officials Approver 6 4 P card Reconciliation Timeline 6 5 Unauthorized Ilegal Purchases 7 TRAINING Last Updated 10 28 2015 2 1 OVERVIEW OF PURCHASING CARD PROGRAM 1 1 WHAT IS A PURCHASING CARD The Middle Georgia State University Purchasing Card p
3. 4 WHAT KINDS OF PURCHASES ARE AUTHORIZED Purchases made with a purchasing card must e be for business use only e be less than 3 000 00 dollars per item e comply with MGA purchasing policies and the school division department s policies e comply with special requirements of projects supported by sponsored funds and e be properly coded in the accounting system e Examples are Supplies and materials Software Single Equipment Purchases under 2 999 99 Subscriptions Organizational Memberships no warehouse clubs VVVVV Caution MGA has authorized the bank to encode the p card so that it will not be accepted for certain types of goods or services Last Updated 10 28 2015 6 3 5 LIMITATIONS SPECIFIC TO YOUR CARD The following limitations have been assigned to the Bank of America Visa Purchasing Card gt No Employee Travel and Related Expenses including parking fees motel fees car rentals and airline tickets The Purchasing Card shall not be used for purchases funded by agency accounts gt gt No Petroleum purchases gt No Personal Purchases Additionally there are limitations regarding the vendors that can be selected Cardholders must not make p card purchases from friends or relatives where the cardholder has a financial interest Cardholders also must not accept any gift from any source when it is offered or appears to be offered to influence decision making regarding Purchasing Card purchases OTHER LIMIT
4. and equipment report any discrepancies to vendor Sales tax should not be included as a charge since the state is sales and use tax exempt PURCHASES IN PERSON Before making any purchase follow proper internal procedures specific to your department to obtain authorization to make the purchase After authorization is received proceed as follows Determine whether the p card is the most appropriate tool to use for this purchase check to make sure the purchase is not a restricted item and determine whether a State or University contract is available Be certain that the total amount including all shipping handling postage freight etc will not exceed the card s single purchase limit Determine that the price quoted is the best that can be obtained Ensure that no sales tax is charged Obtain a receipt at the time of purchase Retain all boxes containers special packaging packing slips etc until you are certain you are going to keep the goods The cardholder is responsible for inspecting the goods upon arrival Refer to Section 4 4 for instructions about returning an item Last Updated 10 28 2015 9 4 2 PURCHASES BY CONTRACT INTERNET PHONE FAX OR MAIL The following are additional guidelines that should be followed e Contracts When a Mandatory Statewide Contract is available for merchandise the contracted supplier should be used e Internet World Wide Web P cards may be used but please be aware in the following
5. areas O Make sure the company is a bona fide company i e someone you were doing business with previously that now has a Web page would be a better risk than a company that you discovered via the Web unless this company could be checked out O When providing your card number via the Web be sure it is encrypted in an acceptable manner If the information is not encrypted or if you are not comfortable giving your card number over the Web many companies offer the option of placing the order via the Web and then giving the card number via telephone after the order has been received preferably you would call them as anyone could receive the order and then call you back for the card number As with other purchases the cardholder is ultimately responsible for purchases made with the card and is therefore responsible for determining whether a Web site is the most appropriate method to use to make a given purchase Also cardholders must follow any guidelines set within their department for Web purchases e Purchases by Phone When authorizing payment for purchases over the telephone the cardholder should document the transaction and maintain the documentation for reconciliation The document used to verify phone orders may be in the form of the purchase request a copy of the receiving report or the packing or shipping statement Store this record in the same manner that you store receipts Remember the cardholder is the only p
6. no resolution can be made the cardholder can dispute the transaction online in the Works software application The cardholder can find instructions in the User Manual on page 97 under Disputing a Transaction If cardholder experiences any problems with the procedure they can contact the Purchasing Card Administrator for assistance 5 2 DISPUTE WITH SUPPLIER If there is a problem involving a dispute with a supplier such as a disagreement as to whether the item is working properly and you are unable to obtain satisfaction directly from the supplier please notify Bank of America and the Purchasing Card Administrator about the problem and all of the efforts you have made thus far in attempting to resolve it Bank of America will assist you in every way possible As above if you are not satisfied with their resolution please contact the Purchasing Card Administrator Last Updated 10 28 2015 12 6 GENERAL RECONCILIATION INSTRUCTIONS 6 1 MGA Purchasing Card Administrator MGA Purchasing Card Administrator will be responsible for the following e File of Cardholders Active and Inactive MGA Purchasing Card Administrator will maintain one file of all active cardholders and one of all inactive cardholders The active cardholder file will contain the procurement card applications and employee agreement forms The inactive file will contain a completed procurement card application form and employee agreement form The cardholder s cr
7. ATIONS Your Purchasing Card should NOT be used to purchase the following items Alcoholic beverages Automotive supplies and repairs if ARI otherwise permissible Construction remodeling Consultants and speakers fees honorariums Controlled substances prescription drugs narcotics Donations Entertainment Equipment single items costing 3 000 or more Flowers cut arrangements exception Student Activity funds Fines late fees or penalties Ethyl alcohol Firearms or explosives Food amp Meals except Student Activity funds Foreign purchases Fundraising Costs Gifts amp Gift Cards Hazardous or radioactive material Holiday decorations and cards Interest finance charges Jewelry Live Animals Lobbying costs Lodging or housing Performer fees Personal use items radios coffee pots gifts microwaves etc Public relations items Radioactive isotopes Rental of equipment for periods exceeding 30 days Services or items provided by in house departments such as Bookstore or Cafeteria Services involving an employer employee relationship Last Updated 10 28 2015 7 Split transactions Student tuition scholarships and or stipends Temporary Employees Employment Agencies Travel Employee travel to include lodging restaurants and anything else that involves travel except airline tickets which can be purchased by authorized p card holders Tuition for employees Typing Services k Any questions regarding limitati
8. Purchases for personal use or benefit should never be made with the p card Any use of the p card which is not in accordance with MGA policies and procedures will result in forfeiture of the card by the cardholder This in turn may also lead to disciplinary action Inappropriate use of the card is considered an unauthorized commitment of University funds MGA will seek restitution for any inappropriate charges made with the card Cardholders must be regular staff members of MGA Only the authorized cardholder should utilize his or her p card and all purchases must be on behalf of and for the benefit of MGA All rules and procedures outlined by the Purchasing Card Administrator must be strictly adhered to and failure to comply with these guidelines may result in the suspension of the p card and or disciplinary action up to and including termination Last Updated 10 28 2015 3 2 2 1 WHERE TO GET HELP BANK OF AMERICA To report a lost stolen card call 1 888 449 2273 The cardholder must call Bank of America immediately upon discovering that a card has been lost or stolen Help is available 24 hours a day 7 days a week Be sure to keep this phone number and your credit card number on file for reference Also call MGA s Purchasing Card Administrator as early as possible on the first available business day during normal business hours at 478 471 2502 Bank of America Customer Service call 1 888 449 2273 for general assistance and inf
9. card is a VISA credit card issued by Bank of America to MGA employees who are approved by the Purchasing Card Administrator and the School Division Department for business purchases of goods and services excluding travel and travel related expenses It is targeted at low dollar purchases which account for a high percentage of the MGA s financial transactions each year The use of purchasing cards will e simplify and decentralize the procurement process for targeted transactions e offer a flexible and efficient purchasing option to departments e reduce the need for petty cash e expedite delivery of goods or services e reduce payment processing time and expense and e streamline the small dollar purchasing process The Purchasing Card program for the State of Georgia is managed by the Department of Administrative Services DOAS The current vendor for the state wide contract is Bank of America under contract number SWC50755 Any concerns regarding MGA p card policy and procedures suspected abuse of p card or possible fraudulent activity can be reported to the Purchasing Card Administrator or to the MGA Ethic and Compliance Reporting Hotline 1 877 516 3460 or https mga alertline com gcs welcome 1 2 USE OF THE PURCHASING CARD p card All transactions made using the MGA p card must benefit and support MGA s mission of education research and public service The p card is a privilege that is granted to certain employees of MGA
10. deactivated promptly Note If an employee is being terminated for disciplinary reasons it is incumbent on the supervisor to ensure that the Purchasing Card Administrator is notified as soon as this action is taken Last Updated 10 28 2015 8 4 HOW TO USE THE P CARD Please note that the cardholder is the only person authorized to make purchases using the card Giving your card or card number to another person to make a purchase or using someone else s card may result in disciplinary action including but not limited to revocation of your card and or termination of employment Cardholder responsibilities include but are not limited to 4 1 Using the p card for State business purposes only not personal use Abiding by and making each purchase in accordance with State Purchasing guidelines and MGA s Purchasing Card Policies and Procedures Ensuring that the p card is issued in your name and signed in ink on the back of the card Ensuring that all purchasing made using the p card is executed by the cardholder The card is not to be used by other employees Holding and keeping the p card the card number and all transaction made with card secure Adhering to the purchase limits and restrictions assigned to your p card Ordering supplies materials and equipment that are needed and required by cardholder s departments in accordance with MGC Purchasing Policy Receiving and inspecting all ordered supplies materials
11. edit card will be shredded e Proper Transaction Review The Purchasing Card Administrator will review documentation of items purchased for appropriateness and determine if items are purchased within the guidelines of MGA and state on a monthly basis The Purchasing Card Administrator will perform periodic reviews listing cardholder and summary reports of suspected unauthorized use All exceptions noted will be identified and reported to the Controller for further action 6 2 CARDHOLDER AND SCHOOL DIVISION DEPARTMENT HEAD P cards are issued in the name of the individual cardholder Middle Georgia State University employee The cardholder must obtain approval from the School Division Department Head for all purchases that are made The following will be required of each cardholder Monthly and Transaction Review In the Works application web based software used for reconciliation and reporting the cardholder will be emailed after each transaction has been posted to their credit card The cardholder will be responsible for reviewing and reconciling transactions weekly Reconciliation in Works includes allocation of charges as well as adding comments in the system Training documents are available on the purchasing website The Purchasing Card Administrator or the Purchasing Card Coordinator can be contacted for assistance After the cardholder receives the monthly statement they must compare the receipts for accuracy The cutoff cycle with the
12. erson authorized to place the order You may when necessary have someone else pick up the goods The person picking up the items should only sign shipping or receiving papers not the credit card slip The card number should under no circumstances be displayed on any packing slips etc when purchases are made by telephone Additionally when placing telephone orders you should e Emphasize that MGA is exempt from sales tax Note You may need to fax the vendor a copy of the tax exempt form to be exempt from sales tax e Record the name of the person taking the order place the order e Give the supplier your name department name phone number and complete delivery instructions e Request that a receipt and or packing slip be sent with the purchase Retain this with your record of the purchase Last Updated 10 28 2015 10 4 3 Purchases by Fax Follow the applicable steps in section 4 1 Retain a copy of the order form and fax confirmation if available for your records You are urged not to mail the original to the company to prevent a duplicate order If the company requires that the original be sent be sure to clearly mark it as Confirmation Order placed by fax Purchases by Mail Follow the applicable steps in section 4 1 Retain a copy of the order form and the address it was mailed to and request that a receipt be sent to you for your records In the case of mail and telephone orders the receipt may well be a packin
13. g slip or a copy of the order form The cardholder must retain a receipt that lists item description and cost If you do not receive one with the order please request one immediately Do not wait until the statement is received to request a receipt This delays reconciliation RETURNS DAMAGED GOODS CREDITS If goods purchased with a p card need to be returned the cardholder should work directly with the supplier Here are some tips Always retain boxes containers special packaging packing slips etc until you are certain you are going to keep the goods Some items such as software or fragile pieces cannot be returned without the original packaging materials Read all enclosed instructions carefully Often a phone number and other instructions are included on the packing slip and or receipt Many suppliers require you to obtain a Return Authorization Number before they will accept a return If you neglect to get this number when it is required the package may be refused and or no credit issued to your account In some cases there may be a restocking fee usually a percentage of the purchase price If the supplier is completely responsible for the error or problem you should not have to pay this or any other fee however if they are not fully responsible you may have to pay it You may use the p card to pay this fee as long as it does not exceed any of the limits on the card Limited assistance may be available through Plant Opera
14. monthly and all supporting documentation to the Authorizing Official by the 15 of each month A scanned copy of the monthly reconciliation with all supporting documents should be posted to the shared drive on or before the 15 of each month The information on how to do so is available along with the monthly purchasing card log by clicking on this link http www mga edu purchasing documents aspx 6 3 AUTHORIZING OFFICIAL APPROVER The Authorizing Official is responsible for the following e Approval Review Each Authorizing Official is responsible for ensuring all items purchased by an employee have been approved The Authorizing Official s signature ensures that sufficient funds are available Rubber stamp signatures are prohibited all signatures must be original e Budget Review Authorizing Officials are responsible for ensuring sufficient funds are available for all items purchased within his her Division Department e Review of Monthly Cardholder Reconciliation The Division Department heads are responsible for ensuring that monthly statements are verified in a timely manner to supporting documentation and are accurate Retention of Statement Documentation The Authorizing Official has the option to retain a copy of the statements and receipts although it is not necessary because the Purchasing Card Administrator will maintain files for five years Also cardholders can review their transactions in the Works card processing system
15. monthly statement is the 4 of each month All p card statements will be emailed directly to each cardholder by the 12 of each month Purchases made after the 4 of each month will be included on the next month s statement The monthly statement review should be verified for the following gt Name of the Cardholder gt Department gt Date of the Statement gt Date of each item purchased gt Supplier Vendor gt Amount of items purchased gt Card account number gt Total amount of transactions purchased gt If item was received yes no Last Updated 10 28 2015 13 Receipts Packing Slips Other Documentation The cardholder is responsible for obtaining receipts packing slips or other documentation for monthly submissions to the Authorizing Official Approver The receipts are required for permanent audit documentation of the purchases The cardholder can submit packing slips for documentation if it lists the cost of each item For purchases made at stores documentation would be the actual sales receipt For orders placed by telephone fax internet the cardholder should request a receipt be included in the delivered package and or make a copy of the catalog page computer screen or a copy of the registration application order form It is recommended that the cardholder retain a copy of the statement and all receipts Monthly Review and Supporting Documentation The cardholder must submit the original procurement card statement
16. onies related to financial wrongdoing theft or other act of dishonesty the employee is not eligible to receive a Purchasing Card Credit Check e In addition to background checks for new and current cardholders O C G A 50 5 83 b 12 also requires credit checks on all employees issued a p card Credit checks must be run as an employment inquiry so as not to affect the employee s credit score rating Prospective cardholders who refuse to have a credit check will not be issued a p card Any employee applying for a new procurement card must successfully pass a credit check Existing cardholders may be subject to a credit check at the discretion of the Purchasing Card Administrator e Using guidelines provided by the Board of Regents the Controller will look at the following to determining whether to issue a card Student loans currently in default Bankruptcies Bankruptcies followed by good credit may be a mitigating factor Credit report indicating installments in excess of 40 of gross monthly income One or more collections and judgments e Mitigating factors may be considered It is not the responsibility of the MGA to discover research or verify that there are possible mitigating factors The burden of proof to present mitigating factors rests entirely with the applicant Last Updated 10 28 2015 5 3 2 KEEPING YOUR CARD SECURE P cards are issued in an individual s name not in the name of Middle Georgia State Unive
17. ons on the p card and exceptions to the policy should be directed to the MGA Purchasing Card Administrator 3 6 AUTOMATIC RENEWAL New and renewal Purchasing Cards will be mailed to MGA New cards are issued for two years renewal cards for three years If you do not receive a card before your current one expires call Bank of America Customer Service at 1 888 449 2273 3 7 TERMINATION OF EMPLOYMENT P cards remain the property of Bank of America and must be surrendered immediately upon termination of employment or upon request for any reason by an authorized person such as a supervisor or the Purchasing Card Administrator When an employee is completing their Exit Checklist upon resignation please ensure they stop by the Accounting Services office to verify whether or not they have a p card and destroy deactivate it if necessary For Macon amp Warner Robins please direct employees to Tiffany Leslie or Barbara Burns For Cochran Eastman amp Dublin Pam Roberts will destroy all p cards signoff on the checklist and notify Tiffany Leslie or Barbara Burns to deactivate the card Cardholder s supervisor must notify the Purchasing Card Administrator immediately upon change in cardholder s employment status a Change of department b Change of position role or title c Leaves of Absence d Termination Resignation or Retirement Supervisor must notify the Purchasing Card Administrator immediately so that the card can be
18. ormation 2 2 MGA PURCHASING DEPARTMENT Purchasing Card Administrator Provides support and assistance to cardholders campus departments etc distributes processes new card applications processes changes in cardholder information name mailing address increase or decrease in limits etc schedules training and updates p card program manual and other reports Develops and maintains auditing standards for individual cardholders to include scheduling and implementing routine reviews of cardholders and participating in reviewing processes with other auditing agencies to include MGA internal audits and statewide audits Serves as the point of contact with MGA Bank of America DOAS and other state agencies Assists MGA management with program review and analysis suggests changes and adjustments for improvements Yearly the Purchasing Card Administrator will analyze cardholder activity to determine whether spending limits are consistent with usage Inactive accounts those with little or no activity for the past 12 months may be deactivated to meet DOAS guidelines A cardholder s cycle limit cannot be more than 25 000 without prior written approval from the DOAS State Cards Program Manager It is the responsibility of the Purchasing Card Administrator to establish appropriate card limits for each cardholder with the approval of the Controller based on the needs and annual spending pattern of the department Departments and s
19. possible 6 5 UNAUTHORIZED OR ILLEGAL PURCHASES Unauthorized or illegal use of the p card will not be tolerated by Middle Georgia State University If unauthorized or illegal purchases are discovered Middle Georgia State University will take the following action e Investigate e Demand restitution e Take disciplinary action up to and including termination e Notify University System Office and e Pursue other legal alternatives including prosecution if circumstances warrant The Purchasing Card Administrator will report any misuse of credit cards to the Controller who is responsible for notifying the University System Office and the Governor s Office Abuse could result in firing and criminal prosecution Additionally supervisors or Authorizing Officials of employees with p cards will be held accountable for conducting a thorough review of each transaction It is the responsibility of each authorizing official to prevent fraudulent practices by reviewing charges 7 TRAINING Cardholders and authorizing officials are required to attend annual p card training If needed special training sessions can be arranged for an individual or department by contacting MGA Purchasing Card Administrator Training material is available on the purchasing website Last Updated 10 28 2015 15
20. rsity or a MGA department The cardholder is accountable for all purchases made with the assigned card The card is the property of MGA and is to be used only for state business on behalf of MGA as defined in this manual It is the responsibility of the purchasing card holder to keep the purchasing card secure This includes not sharing account number expiration date and security code with other staff as well as redaction of purchasing card number on receipts 3 3 SALES TAX EXEMPTION It is the responsibility of the cardholder to ensure that sales tax is not charged when making a purchase with the p card If you are charged tax in error you must request a credit from the supplier as soon as possible after discovering the error The embossed line on your p card reads Middle Georgia State University Tax Exempt is printed on the card MGA is usually exempt from ALL sales taxes but it is the cardholders responsibility to provide vendors with the sales tax exemption form The cardholder can obtain a copy of the Tax Exempt form from the Purchasing Card Administrator If you need additional help with purchases please contact the Purchasing Card Administrator at 478 471 2502 Link to tax exempt form follows http www mga edu purchasing docs sales_and_use_tax_certificate_of_exemption pdf State policy requires written documentation by the cardholder on the resolution process for sales tax charges as part of the monthly reconciliation 3
21. tions for return mailing Ensure the charge for the returned items never appears on the monthly statement or is credited properly If this does not happen refer to Section 5 Disputed Transactions for instructions on how to resolve the problem Last Updated 10 28 2015 11 5 DISPUTED TRANSACTIONS 5 1 DISPUTE OF STATEMENT ITEM Items that appear on the monthly Purchasing Card statement from Bank of America may be disputed as long as the disputed transaction is reported to Bank of America within 30 days after the statement s closing date If there is a charge that is not recognized by the cardholder or another problem the cardholder should follow the steps listed in section 2 1 The dispute form to be completed can be found using this link http www mga edu purchasing documents aspx During Bank of America s investigation they will issue a credit to the Purchasing Card account in question for the disputed amount When the investigation is complete Bank of America will notify the card holder of the resolution If you are not satisfied with this resolution please contact the Purchasing Card Administrator immediately To dispute a transaction that has appeared on your statement When a cardholder discovers that an incorrect amount has been charged for goods received or a questionable purchase or transaction appears on a cardholder s memo statement the cardholder must immediately seek to resolve the problem with the vendor If
22. upervisors may establish lower limits and in exceptional cases may request a larger limit If a larger limit is required the department must request a credit limit increase through the Purchasing Card Administrator approval for any purchasing card limit increases in excess of 25 000 must be approved by DOAS Departmental participation in developing the charge line for each card is essential Last Updated 10 28 2015 4 3 CARDHOLDER POLICIES AND PROCEDURES 3 1 OBTAINING A CARD Each department within MGA will determine which employees are eligible for a card based on their need for Purchasing Card privileges but prospective cardholders must meet established MGA requirements MGA requirements Department requirements e The department must complete and submit a Purchasing Card Application Form with the appropriate signatures Waiting Period e The prospective cardholder must be a permanent MGA employee for at least 6 months The prospective cardholder is required to sign a Purchasing Card Agreement and must attend end user training to obtain knowledge of small value purchasing procedures Criminal Background Check e O C G A 50 5 83 b 12 requires criminal background checks on all employees hired for positions that are eligible for a purchasing card DOAS requires that these requirements be met for all employees using purchasing card related accounts If a background check of a prospective cardholder reveals any misdemeanors or fel
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