 |
 |
 |
 |
|
|
 |
|
 |
Major Programs: Purchasing Card Program
The Purchasing Department of Kutztown University has developed a Purchasing Card Program that is available for campus-wide implementation. The following information includes the policies, procedures, and forms necessary to support this program. This is being provided for campus users to read and become familiar with. Please read and review the following information and contact the Purchasing Department to verify information or to proceed with implementation within your area. In order to start the process of obtaining a Visa Card the Purchasing Department needs to have two (2) forms filled out and sent to the Purchasing Department. The "Purchasing Cardholder Agreement and the Cardholder Enrollment Forms" must be filled out and submitted for each and every person who will be issued a card. These forms must have the appropriate approval signatures before they are submitted to the purchasing Department for processing. The individual cardholder will be contacted when the actual cards are issued to the Purchasing Department in room 225, Administration Building. The card may be used as soon as it is picked up, there is no activation process required.
Who to call for more information: For information regarding the Kutztown University Purchasing Card Program please feel free to Contact the Card Administrator at extension 34132.
Policies and Procedures
Forms
1.1 The procurement card is an internationally accepted Visa credit card issued to authorized university personnel (department heads, secretaries and other authorized users), to be used for business purposes only. The card may not be used for personal purposes.
1.2 This program is primarily designed for the acquisition of low dollar purchases of goods and supplies to provide a more rapid turnaround of purchases, and to reduce paperwork. It eliminates the need to enter a requisition, and provides for one monthly invoice for all charges. By using the Purchasing Card Program the traditional requisition - pricing inquiry - order placement - delivery of goods - invoice - payment cycle is greatly reduced. Those users who have been issued purchasing cards will be able to initiate transactions in-person, by telephone or by Internet use, within the limits of this procedure, and receive goods without the approval by procurement.
2.1 The Purchasing Card program is administered by the Purchasing Department, who will coordinate the issuance, maintenance, and cancellation of cards with the University's Purchasing Card Program processor, J.P. Morgan Chase. Visa cards will be provided with the Kutztown University seal and will be typically issued reflecting the individual user's name. Individual cards are assigned a per transaction dollar limit as well as monthly transaction limits. Cards should be signed by the cardholder whose name is printed on the front of the card.
2.2 In order to be approved to use a Purchasing Card the proposed Cardholder will need to attend training, review a copy of the purchasing card procedure and shall be required to sign a Cardholder Enrollment Form and an Employee Agreement (see attachments for sample forms). The Employee Agreement indicates that the Cardholder has received training, understands the procedure and the responsibilities of a Purchasing Card Program cardholder. The Enrollment Form indicates all information needed to set the Cardholder up properly in the purchasing card system, and shall be submitted to the Bank.
2.3 Organizational managers may propose employees to be cardholders by contacting the Purchasing Department to obtain a Cardholder Enrollment Form or by submitting the completed Cardholders Enrollment Form to the Card Program Administrator (CPA). Following approval the CPA will notify the applicant of any requests denied or requiring additional information, and forward approved applications for processing.
2.4 The Purchasing Department shall, for a minimum of 3 years, maintain all records of Purchasing Card requests approved or disapproved by the Card Program Administrator, card limits, cardholder transfers, and lost/stolen/destroyed card information.
2.5 All cards issued by the Bank shall be received and inspected by the Card Program Administrator, and then issued to the cardholder.
2.6 The card is for "official university use only". It may be used to acquire goods and services that will be used directly and immediately for the benefit of official university activities, events, or operations. It may NOT be used for personal use in any manner whatsoever. It may NOT be used to acquire any goods or services for personal use with the intent of reimbursing the University for such purchases.
Cardholders should understand that if they use the card for any unofficial purposes and they do not reimburse the University in a timely manner that any outstanding balances may be withheld from their paycheck via payroll deduction.
2.7 The Purchasing Department shall provide training sessions and documents to employees.
2.8 Primary cardholders who allow subordinate employees to use cards assigned to them accept full responsibility for training their subordinates, providing them with the current policy documents, and for obtaining a signed Cardholder agreement from the subordinates, a copy of which must be forwarded to the Card Program Administrator's office.
2.9 It is the Cardholder's responsibility to safeguard the purchasing card and account number. He/she should not allow anyone to use their account number for any purpose. A violation of this will result in the card being withdrawn and disciplinary action may be taken.
2.10 If the card is lost, misplaced, stolen or damaged the Cardholder shall immediately notify the Bank at 1-800-VISA-911. Representatives are available 24 hours a day. Advise the representative that the call is regarding a Visa Purchasing Card. The Card Administrator is also to be notified immediately.
2.11 A new card shall be promptly issued to the Cardholder after the reported loss, damage or theft. Any cards that are subsequently found shall be destroyed.
2.12 Upon termination of employment, a cardholder must surrender the card, and any current receipts and transaction log to their Organizational Manager. The Organizational Manager shall review, approve and forward to the Card Administrator the month end report with the receipts and the destroyed card. The Card Administrator shall confirm to the Bank the "end of Employment" or "End of Card Authorization" within 2 business days of the end date.
3. Cardholder Liability/Responsibility
3.1 The purchasing card is issued in the employee's name; however, the monthly invoice is paid by Kutztown University.
3.2 Although the cardholder is not responsible for paying the monthly invoice, the cardholder is responsible for all charges against his/her card.
3.3 At the end of each month, the cardholder will receive a statement from the Purchasing Card Company listing charges against his/her account. This is called a memo statement.
3.4 Each cardholder is responsible for retaining receipts for all charges and attaching them to the monthly memo statement. The cardholder will verify that all purchases listed on the statement are accurate. All erroneous charges shall be resolved with the vendor or the card company as appropriate. The cardholder will complete the monthly Expense Report, identifying the cost center and expense code to charge for each item purchased.
3.5 Intentional misuse of the purchasing card is considered fraud and may result in disciplinary action. The employee will also be held personally liable for the total amount of any unauthorized purchases made in connection with the misuse.
4. Dates
4.1 The billing cycle closes the 25th of each month and the statements are issued within one week of that date. All individual statements are required to be reconciled, signed and forwarded to the Card Administrator within one week of receipt.
5. Use of Cards
5.1 All purchases made with the purchasing card must be for the benefit of Kutztown University, within established budgets, and in accordance with the Purchasing Card Policy and Procedures.
5.2 Authorized cardholders may make purchases in person, by phone, mail or Internet.
5.3 Items being shipped via any Express Delivery Service should be shipped to Central Receiving and the vendor directed to include the following information on the shipping label and packing list:
5.4 Items being shipped via the US Postal Service should be mailed and the vendor directed to include the following information on the shipping label and packing list:
Kutztown University
5.5 Telephone, mail order and Internet purchases should be made only from reputable vendors. Back orders should be avoided. Merchants should be asked for the total charge including any shipping and handling charges.
5.6 All procurement cards are marked as tax exempt. Cardholders must inform merchants that the University is not subject to state sales taxes. Any problems in this regard should be reported to the Purchasing Office. If upon reviewing receipts a cardholder determines that sales tax has been assessed, the cardholder should contact the vendor for a credit.
5.7 Cardholders must retain all receipts, receiving reports, delivery tickets, order forms, or other documentation supporting charges against the card. Vendors should be reminded to send any correspondence, receipts, etc. directly to the cardholder. The cardholder shall maintain a log of all Purchasing Card transactions.
5.8 Each card is assigned a single transaction limit of $500.00 unless otherwise approved. A single transaction may be comprised of multiple items but the maximum total amount may not exceed the $500.00 limit.
5.9 Each card has a monthly expenditure limit of $5,000.00 unless otherwise approved.
5.10 Cardholders are not required to solicit competitive prices for their purchases. However, they should seek the best value for the University and ensure that the price paid is reasonable.
5.11 Purchasing Card transactions have merchant category codes. KU Purchasing Card includes the ability to designate where spending is allowed by utilizing merchant code blocking. Vendors are assigned an industry-specific code, and certain codes have been blocked or restricted from Purchasing Card use. If a department experiences a card decline from a vendor that provides eligible goods or supplies, the Purchasing Dept. should be notified.
5.12 The total value of a transaction shall not exceed a Cardholder's single purchase limit. Payment for a purchase MUST NOT be split into multiple transactions to stay within the single purchase limit.
5.13 All items purchased "over the counter" must be immediately available at time of credit card use. Backordering of merchandise should be avoided.
5.14 Spending limits must be adhered to.
6.1 The cardholder may purchase items via telephone, mail, fax, Internet, or in person. All purchases require an itemized receipt. The department is responsible for verifying the accuracy of these items upon receipt.
6.1.a Acceptable forms of receipts include but are not limited to:
Invoice
6.1.b All receipts must contain the following information:
Vendor identification
6.2 The cardholder must direct the vendor to include the following information on the shipping label and packing list:
Complete campus delivery address
** Please refer to Sections 5.3 and 5.4 for complete shipping information**
6.3 The cardholder must request the supplier to send the receipt with the package.
6.4 The cardholder must also indicate to the vendor that the University is Tax Exempt.
6.5 The cardholder must record a phone order, with the appropriate amount and order date, on their purchasing card transaction log.
6.6 Once a vendor is selected:
6.6.a The cardholder must confirm that the vendor agrees to accept VISA.
6.6.b The cardholder confirms with the vendor that the goods are available, meet the specifications and delivery requirements, etc.
6.6.c The cardholder should direct the vendor to include the receipt with the goods when shipping the product directly to the cardholder.
6.7 The cardholder must keep all purchasing card records, including receiving reports, receipts, or other documents supporting charges against his/her purchasing card. The cardholder will be required to attach all such receipts to the monthly purchasing card memo statement. Monthly purchasing card memo statements do not serve as a receipt.
6.8 All purchases should be sent to the cardholder ordering the merchandise to ensure the availability of all documents necessary to reconcile the monthly statements.
7. Sales Tax
7.1 Each purchasing card will be marked tax-exempt. The cardholder should remind all vendors of the University's tax-exempt status. The cardholder must review all receipts for each purchase to ensure sales tax has not been assessed. If sales tax has been charged to a purchase, the cardholder should contact the vendor for a credit.
8.1 The purchasing card SHALL NOT BE USED for the following:
8.1.a Any personal purchases or use of the card for personal identification. The card shall not be used to authenticate your personal identify for non-university business purposes. The card is intended for official university business purposes only, i.e., it is not to be used in any manner for personal purposes. (Strictly Prohibited)
8.1.b The purchase of items for personal use with the intention of reimbursing the University after the purchase. (Strictly Prohibited)
8.1.c A single purchase that exceeds the Cardholder's single purchase limit.
8.1.d Meals, travel or entertainment expense, or travel related registration fees for conferences or workshops, unless approved in writing by the Card Administrator and the Comptroller.
8.1.e Cash Advances
8.1.f Telephone calls/monthly service
8.1.g Development, printing and/or distribution of any official University document or publication (with official name, seal or logo) without first securing approval of Publications Office, or official public advertising without the consent of the Public Relations Office.
8.1.h Restricted items, such as alcohol, weapons, drugs (controlled substances), hazardous materials, and other restricted goods and services as enumerated in the University's "Purchasing Guidelines", which may be viewed on KU's homepage.
8.1.i The purchase of items that will require support of advance, additional approvals by other divisions of the University.
8.1.j Any other type of purchase prohibited by law, policy or regulation as referenced in the Purchasing Guide or during cardholder training.
8.2 Restricted Vendors: The Card Administrator shall, upon review of purchasing card applications, determine if the University's card program should exclude some vendor classifications, in which cases certain Merchant Category Codes will be blocked (embedded) in the card to be issued. Attempts to make a purchase from a merchant of a "blocked" category would be rejected at the point of sale. When a merchant applies for credit card processing capability, the merchant identifies the category name and code they feel is most appropriate to their business. Sometimes, however, the merchant may select the wrong code or the Card Administrator may select the wrong blocking code, in either case making the use of the card impossible.
8.3 If a merchant simply does not accept cards, the Card Administrator should be notified so that attempts can be made to encourage or assist the merchant to acquire credit card processing capability.
8.4 Until such a time as the card acceptance issue is corrected, the cardholder must use non-card procedures to obtain the required goods, such as contacting the Purchasing Department to obtain a purchase order number.
8.5 If a cardholder violates the Purchasing Card Policy and Procedures, he/she will be given a written notice from the Director of Purchasing. If a cardholder violates the policy a second time he/she must surrender the card to the Card Administrator, the card will be canceled, and any appropriate disciplinary actions may be taken.
8.6 If a cardholder loses his/her card privileges, the card may be assigned to another employee in the department.
8.7 A cardholder who loses his/her card privileges may reapply after one year. The employee must undergo initial training and resign the appropriate documents.
9.1 Each cardholder is responsible for any/all returns of purchases. All returns must be credited to the cardholder's account. Cash refunds are prohibited.
10. Record Keeping
10.1 Documentation shall be maintained whenever a purchasing card purchase is made whether it is made over the counter, by telephone, or by Internet. This documentation will be used to verify the purchases listed on the monthly statement.
10.2 When making an over-the-counter purchase, the cardholder shall retain the invoice and the "customer copy" of the charge receipt. The cardholder is responsible to check that the vendor lists the quantity, full description of the item(s), and has EXCLUDED sales tax, prior to the cardholder signing the slip. The transaction's details shall also be added to the transaction log.
10.3 When making a telephone, fax or Internet purchase, the cardholder shall also document the transaction on the transaction log. If the cardholder instructs the vendor to deliver any items via the Central Receiving or Mail Services, the CARDHOLDER MUST NOTIFY Central Receiving immediately regarding the anticipated shipment and receipt of goods. Items received at that location without advance notice of a valid purchase order or purchasing card order will be retuned to sender. Purchasing card items received via the Central Receiving Department are treated as "pass through" or "mail handling" transactions, i.e., they will not be inspected nor will receiving reports be generated by Central Receiving for any purchasing Card purchases. Please refer to Sections 5.3 and 5.4 for complete delivery instructions.
10.4 When goods are received after placing the telephone, fax or Internet order, retain all shipping documentation.
11.1 If a cardholder does not agree with a charge posted on a monthly statement, he/she should notify the vendor as soon as possible.
11.2 The cardholder must also notify the Card Program Administrator of any disputed charges by the next business day.
11.3 If the vendor agrees that an error has been made, the vendor will issue a credit to the cardholder's account on the next monthly memo statement.
11.4 If the vendor does not agree, the cardholder should contact J.P. Morgan Chase at 1-800-270-7760. The cardholder must also notify Card Program Administrator that this continues to be a disputed charge. Cardholders should keep copies of all related documentation until the situation is resolved. If the charge remains unresolved by the due date, the purchase will not be charged to the cost center's budget, but will remain on the account until the dispute is resolved.
11.5 If a purchase is found to be defective or incorrect, the cardholder is responsible for obtaining replacement, correction, or credit as soon as possible.
12. Monthly Statement - Review & Reconciliation
12.1 At the end of each monthly billing cycle, the cardholder will receive from the Purchasing Card Company his/her monthly statement of account listing the charges against his/her account.
12.2 Within 5 days of receipt of the statement cardholders must:
12.2.a Check each transaction listed against his/her purchasing log, receipts and any shipping documents to verify the monthly statement.
12.2.b Resolve any erroneous charges listed on the purchasing card memo statement.
12.2.c Attach the original sales documents (packing slip, invoice, cash register tape and credit card slips, etc) for all items listed on the statement. These MUST be neatly attached, in purchasing card log sequence, to the statement. IF THIS ROUTINE IS NOT ADHERED TO, THE CREDIT CARD WILL BE REVOKED. The matching of complete support documents to the log and then to the statement is vital to the successful use of the program.
12.3 The cardholder shall sign the statement, and present it to his/her approving organizational manager for approval and signature. If the cardholder has cost center authority, ONLY the cardholder's signature is required on the expense report.
12.4 The Purchasing Card Log, the memo statement, and all receipts shall be forwarded to Accounts Payable by the 15th day of the month. Accounts Payable will pay the invoice.
12.5 The Organizational Manager shall check the cardholder's monthly statement and log and confirm that the receipts/shipping documents exist for each purchase, the goods were received, the Cardholder has complied with the applicable procedures within the Purchasing Card Program.
12.6 If a cardholder does not have documentation of a transaction listed on the monthly statement, he/she shall attach a "Purchasing Card Missing Receipt Form" for each missing receipt that includes a description of the item(s) purchased, date of purchase, Vendor's name and reason for the lack of supporting documentation.
12.7 Returns - Each cardholder is responsible for any/all returns of purchases. All returns must be credited to the cardholder's account. Cash refunds are prohibited.
12.8 Errors - If a cardholder does not agree with a charge posted on a monthly statement, he/she should notify the vendor as soon as possible. The cardholder must also notify the Card Program Administrator of any disputed charges by the next business day.
12.9 If an item has been returned and a credit voucher received, the cardholder shall verify that this credit is reflected on the monthly statements.
12.10 If a purchased item or credit is not listed on the monthly statement, the associated documentation shall be RETAINED by the cardholder until the next monthly statement. If a purchase or credit does not appear on the statement within 60 days after the date of purchase, the cardholder or organizational manager shall notify the Card Administrator.
12.11 More than two (2) reminders to a cardholder that an approved monthly statement is delinquent will be grounds for withdrawal of the credit card from that user.
13.1 Monthly account Summaries, listing all transactions, shall be issued by the Purchasing Card Company to the Card Program Administrator. This listing allows the tracking of cardholder activities; acts as a checklist for the Administrator to anticipate which approved monthly statements are due from the cardholders; and provide information to monitor transaction activity and compliance with University Policy.
14.1 If a Purchasing Card is lost or stolen, the cardholder must immediately notify 1-800-VISA-911. Access to the card will be immediately blocked. A new card will be issued.
14.2 The cardholder should also notify the Card Program Administrator immediately of any lost or stolen cards.
14.3 Cardholders will not be responsible for any charges after the card is reported lost or stolen.
15. Exceptions
15.1 Any exception to this purchasing card policy must be approved by the Vice President for Administration and Finance or his/her designee.
16. Contacts
16.1 To report a lost/stolen card, erroneous charges, or for any additional information please contact:
Purchasing Department
Purchasing Card Company
|
|