Purchasing Card Policy Training - PowerPoint Presentation

Purchasing Card Policy Training TTUHSC El Paso Payment Services

Purch a sing Card Policy Training Co n t e n t s Pr o g r am Ove r v i ew Re s p o n s i b ili t i es of Ca r d h o l d er Po l ici es o f P u r c h asi n g Ca r d ( PC a rd ) Prog r a m Re c o r d k e e p i ng Re v i e ws L a s er f ic he

Over v iewUtiliz es a M ast erC a rd cre d i t card Issued by the State of T e x as Allo ws u s e r s to p ur c h as e d i rectly f r om v e n d o rs All o ws f o r s i n g le p u r c h as es u p to $5000 and monthly ca r d li m it based on es t imated usage Pr o h i b i ts s ome ite ms a nd m e r c h a n t s T ra n s a c ti ons ma n a g ed o nli n e with CitiDi r e c t Glo b al Ca r d M a n a g e m ent Sy s t e m Training is REQUIRED

EVERYONE who uses the PCard must complete and submit the Training Questionnaire to the Cardholder, who will forward it to PCard ELP – Payment Services -Cardholders are required to submit a list to Payment Services of all individuals who will use their card.No one will be allowed to use the card until this has been completed. ALL Pcard Users must complete training

Per s onal Responsibility Pr o p er use and protection of c a r d Use on l y for o f ficial TT U H S C El Paso a l l o w e d purchases K e ep in locked drawer or safe p l a ce V e r ify p ro p er re c ordi n g of t r a n s a c t i ons to Ba n n er FOAPs Ab us e res u l ts in d isci p lin a r y actio n L i a b le for u n a u thoriz e d p u rchas e s P o ssib l e terminati o n of e mployment No p er s o n al cre d i t c h ec k

Maintain physical security of card and document transfer of custody . - Cards should be kept locked and secured.Log should reflect who has the card, when they picked it up and when they returned it.Each cardholder is required to keep a log of who has used their card.The card user is responsible for providing all required back-up for their transaction. Submit monthly with Pcard records . PCard Log

PCard Log Example

Comp l ete PCard appl ic at i on and agreement form http://elpaso.ttuhsc.edu/fiscal/businessaffairs/paymentservices/Forms.aspx Comp l e t e r equired PCard training module and questionnairehttp://www.fiscal.ttuhsc.edu/busserv/pcard/collateral/pcard_training_questionnaire.pdfReturn questionnaire to Payment Services ELPFor additional questions, email the PCard program coordinator at PcardELP@ttuhsc.edu Obt a in i ng a PCard

Activati o n of PCardCard mu st b e activated upon receiptSee strip on card for i n st r uctions R e member, CitiBank cards require a PIN at time of activation

Purch a se Guidel i n e sComplianceState of T e x as P o liciesUse of Payment Cards by State AgenciesTTUHSC El Paso Policies & ProceduresHSC OP 72.15 Purchasing Card ProgramHSC OP 72.03 Direct Pay E x pend iture s HSC O P 72.16 O f ficia l Fun ctio n s, Bu sin e s s M eet in gs & Ente rta i nment HSC OP 72.01 Purchas i ng Supp l i es, Equip m ent & Services In t ernal depart m ental procedu r es

Verify Warrant Hold Status Before purchasing goods or services over $500 (effective 11/01/08) with the purchasing card, the cardholder should verify if a potential vendor is indebted to the State of Texas and identified as being on Warrant Hold Status. Comptroller’s website: https://cpafmprd.cpa.state.tx.us Print a copy of the vendor status and include with records.

PCard Purchasing InformationAllowed purchases of less than $5,000Deviation approval from Purchasing ELP is required PRIOR to making a purchase for prohibited items or using vendors other than the ones on Tech Buy.FlowersMust use PCard O f ficial TTUHSC El Paso functions Employee and immediate family onlyNo substitution for this type of purchaseProhibited on state accounts

Pre - Approval Form REQUIRED PRIOR TO PURCHASE if $500 or more. If Approval was not obtained, the Card User is personally responsible for charges over $499.99 that were not pre-approved. Inc lude required documentation with expense report Prohibited on state accountsFood & EntertainmentMust be documented by the following:Invoice/ReceiptFood & Entertainment Substantiation Form is required for ALL food and entertainment purchases.Complete list of attendees is required – Attach sign in sheets or list separately if more than five attendees.

Pro h ibited Purchases HSC OP 7 2.15 Purchasing Card Progr a m It e m 2.b.Prohibited PurchasesAwards and prizes (see HSC OP 72.03)Chemicals and other potentially hazardous materialsConsulting, medical services, pe rsonal or p rofession a l s e rvices C o ntro l l e d ass e ts > $5 0 0 (shi p p i ng i n cl u de d ) At any co st – Hand gun s, rif l es, machine guns, etc. With a co st between $5 0 0 and $4,999.99 –Camera s, co mputers (in c l ud i ng peripherals), pr i nters, stere o systems, v ideo rec order/ l as er dis k player (T V , VC R , camcorder), projectors and etc.

Pro h ibited PurchasesDonations, contribut i ons & sponsorshipseBay purchasesLease or rental of space Malpractice insurance Medical licenses for states other than the State of TexasNotary applicationsPayments to patient/study participants

P a yPal services S u p plies (medical, pharmaceuticals, a n d o f fice) require use of the Institutional Supply Contract unless a deviation approval has been received from Purchasing)Temporary personnelTravel related purchases (i.e., airline ticket, hotel and rental car reservati o ns, resta u rant s ervi c es w ith i n a hotel comple x , and internet services, etc.)Uniforms (includes lab coats) Pro h ib i ted Purch a ses, continued

Prohibited Purchase – Anything with Logos Purchases for anything with logos are NOT allowed on the PCard and must go through the PO process – no exceptions! Includes clothing and business cards For additional information regarding logos, please contact Institutional Advancement.

Alco h olic beverages Food a nd entertainmentFlowersPromotional items Mem b e r ship dues State and federal funds10XXXX, 11XXXX, 12XXXX, 21XXXX, and 22XXXXProhibited State and Federal Purchases

Order With a PcardOrdering Meth o ds T elephoneFaxInternet (print screen for proof of p urchase for d o cumentation)Itemized Invoices RequiredAsk vendor for an itemized invoiceSales tax (State of Texas) on an invoice must be credit e d b y the v e n d o r or p ersonally reimbursed to TTUHSC El Paso. T ax E x emption Forms

Su p porting DocumentationIf Tr a n s action Log is not used, each re ce i p t or invoice must reflect the required information to support the purchase as a legitimate state expenseDocumentation nee ded to b e in compl i ance w i th record keep i ng requ i rements:Expense report with appropriate signatures Invoice/sales receipt from the vendor an d/or pr i nt sc reen prior to s ubmi s s i on for on l ine orders Bu sines s purp o se written on the s u pp orting do c umentation, or in the avai l able field of the expense report , or the trans a ctio n l og/interd ep artmental form

Cred i t card slip taped on the invoice or itemized receiptRegistration – order form detail i ng each charge for the conferenceMembership dues - the enrollment form detailing the charges for the type of dues or the renewal notification/invoice and the print screen from the l i st of ap p roved profes s i on a l so cietie s Flower purchases - the employee or recip i ent ’ s na m e and their relationship to the employeeOther items (if applicable) - packing slips, Pre-Approval Form, F&E Substantiation Form, deviation approval from Purchasing, copy of advertisement , and/or credit receiptsExpense descriptions are required to be entered in Citibank in order to appear on the expense report. Su p p o rti n g Docum e nt a ti o n

R e quired Information on Inv o ice or ReceiptLast four numbers of the cred i t cardDateMerchant nameAmountSales tax (if applicable)Tape small receipts on documentation form or blank sheet of paperDo not place tape on top of any of the ab o ve infor m atio n Su p p orting Documentation

Not allowed on state f u n d sPermitted on local fun d s u n l e ss restricted by accountMust be a clear and specific business purposeidentifiedProper documentatio n is re q ui r ed Must i nc l u d e a Food & Entertainment Substa n tiati o n Form and/or Pre-Approval Form if $500 or more Fo o d & Entertainment

Fo l low IRS guid elin es Do c umentation including:AmountTime, pl ace a n d d escription of entertainmentBusiness purpose and benefit to TTUHSC El Paso and the State of TexasBusiness relationship of person(s) entertained Name, title and o c c upation and complete list of attendees Fo o d & E n ter tainment Documenta ti o n

The check or cash must be sent to the P CardCoordinator for correct processin g . A CR form w ill be completed by the PCard coordinator immediately upon receiving the payment and submitted to the Bursar’s office. The FOAP used will match the original transaction as it w as processed in Bann e r . A c opy (CR and payment) will be made for the cardholder folder and also sent to the depa r t ment. The de p art m ent copy is to be put in the transaction log binder for review purposes.Note: All reimbursements must be sent to the P Card coordinator for processing to: • Katherine Escandón - Payment Services ELP Reimbursement for PCard Transactions

Car d holder must att e mpt to get a copy of theoriginal do c ume ntat i on If unsuccessful:Three attempts to get copy must be documentedMissing Receipts Form must be completedMissing Receipts FormAccount manager/supervisor signature requiredKeep form w i th other d ocu m enta t ion Mis s i n g receipts should be a ra re o c cu r r e nce and will be carefully scrutinized in reviewsMissing Receipts

Us e r generates mo nth ly expense report from Ci t i purchasing card management systemCardholder lists all transactions and verifies all transactions are legitimateMatch each transaction on e x p e nse report to yo u r receipts Match credit card e x pe n se report to your CognosOperating transaction reports P l ace receipts and any other required documentation behind your expense reportReceipts and required documentation must be submitted in thesame order as transactions appear on the credit card expense report Monthly Expense Report

Exp e nse report m ust be signed by cardhold e r and fund man a ge r, or supervisor or department administrator if the cardholder is the fund manager every month. Each fund manger must approve charges to their fundsTTUHSC El Paso Payment Services will pay the bill, then the tra n s a cti ons will be e x p e n s ed to your departmental accountTransactions are reflected in your Cogn o s Operating T ransaction reportsTransaction ID - CPXXXXXXTransaction description – cycle end date, first six lettersof the cardholder’s name and merchant nameAll transaction lines for each cardholder added together should equal the expense report total M o nt h ly Expe n se Rep o rt

Cognos Reports Reconcile PCard Transaction to Banner using Cognos. HSC El Paso Finance > Transaction Detail > P-Card Transactions

Ci t iTransactions that ne e d to be reallocated to another FOP, rather than the defau l t FOP th at is tied to the card, can be processed as soon as two days after the purchase. Check the account code for each transaction to ensure it accurately describes your purchase. The link to the Citi website is below:CitiDirect Glob al Card M anagement S y ste m C l ose date for rev i ewing and reallocating FOAPs in order to l oad to B an n er correctly is appro ximately six business days after the close of the monthly cycleAllocations

C o st transfer requests after the P C a rd upload have been expensed in Ba n n e r should be a rare occurrence due to the ability to reallocate transactions in CitiCost transfers will be required to correct inaccurate account code being usedThe Financial Transaction System (FiTS) Cost Transfer (located on Accou ntin g Servic e s web site) s ho uld be us ed to submit all cost transfer requests.The Cos t T ran sfer Reque st Form (located on Accounting Services Forms website) must be used to change an account code for a current FY expenditure.Allocations

Call vendor fi r st – resolve with them If it e m not resolved with vendor, call Citi Customer Service at (800)248-4553 to dispute the transa ct i on Impor t ant Not e: If di s p u ti n g a US ven dor it e m, t h e claim must be completed within 60 days from the cycle end date of the expense report.Disputed Items

If cardholder changes departments or leaves TTUHSC El Paso the PCard must beCut in hal f a nd returned with a written c a r d c a nc e llation request to the PCard coordinatorKatherine Escandón - Payment Services ELPPCard Cancellation

Ac c ount Manager h a s the obligation to reclaim t h e c a r d from the terminated employeeFraudulent charges incurred between employee termination date and card cancellation date do not have liability coverageCall PCard co ordi n a t or within two da y s Ca r d must be returned with th e t r a ns a c tio n documentation since the last review date to the PCard coordinatorKatherine Escandón - Payment Services ELPEmployee Terminations

Simple system3-r i ng binderFile folderOne binder or fo l der for each card identified bycardholder name or last four digits of the cardMonthly Expense ReportTransaction Log if maintai n ed R e cei p ts, a l ong w i th a l l supporting documentation, in same order as transactions on Ex pe n se R e port Record Keeping

Stan d ard Retention Per i o d Current year plus three prev i o u s fisc a l yearsGrant & Contract AccountsLife of grant or contract, plus three yearsTerminated employeesMust be reviewed as soon as card is cancelledStandard retention periodRecord Ret e nt i on

Sp ot ChecksPre v i o us day’s transactions reviewed d a i l y Re v i ewsThe Expense Report and its supporting documentation will be sent to Payment Services ELP based on the month ending cycle.The monthly PCard Update will announce the due date for each monthly review and when it is expected in Payment Services ELP.Upon final completi o n of the revie w , the Ex pe n se R e p o rt and its supporting documentation wi ll be sent to L aserfiche to be scanned.Reviews and Spot Checks

General Services wi ll charge the departments $.065 per sheet sent to Lase r f ic h e. The default FOP affiliated with each card will be usedto charge the scanning cost.Laserfiche will be available to a l l employ e es and H S C Internal A u dit through Webl i n k . It w i ll also allow a timely gathering of information for audits conducted by federal and state agencies.Original documentation will be kept for three years pl us the current Fiscal Year in Payment Services’ storage L a serfiche

Pr e paring the Rec o r ds for Scanning:Remove all staples Do not p l ace transparent tape over invoice/receipt transaction date, amount, description of item, or vendor name. The tape “fades” the printed info.If the full 16 digit card number is notated on any supporting document, block out the f irst ten d i g its of card n u mber and the three-d i git security code.Block out personal information.Laserfiche

Unit Associate Director of Payment Services Raquel Diaz-Jaquez Email: raquel.diaz-jaquez@ttuhsc.eduPhone: (915) 215-6161Program Co ordi n a t or Katherine EscandónEmail: PcardELP@ttuhsc.edu Phone: (915)215-4791PCard Contacts

Di r ector of Pur c h asi ngAnnette HinojosEmail: Annette.A.Hinojos@ttuhsc.eduPhone: (915) 215- 4582 Citi C u stomer Service Phone: (800) 248-4553PCard Contacts

App l ication:P u rchasing Card Application and Agreement Print and complete the form i n cl u d ing all cardholder information, default FOP and Account Manager signatureTraining Questionnaire:Purchasing Card Knowledge Quiz Print and complete the q u i z w i th si g nature on seco n d pageCompleted forms should be mailed to Payment Services ELP • R e qu e sted cards will be available in about two weeksPCard Application & Training Questionnaire

Quest i ons?If you are ever in doubt about a purchase, please contact us prior to making the purchase.PcardELP@ttuhsc.edu