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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
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
– [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
Preview of the training session
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 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
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
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
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
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
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
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
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
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
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
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?
P-Card basics / Importance of compliance
Know what you can and cannot purchase (cont…)
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
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
P-Card basics / Importance of compliance
Know what you can and cannot purchase (cont…)
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
Prohibited Local funds onlyRestricted
Common items that have special funding rules……
P-Card basics / Importance of compliance
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.
Know what you can and cannot purchase (cont…)
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 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
P-Card basics / Importance of compliance
Agenda
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 the P-Card as a Cardholder– Obtain and secure a card– Make a purchase– Special card considerations
Obtain and Activate your 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
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
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 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
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
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
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 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
Request multiple cards
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
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
Request multiple cards (cont…)
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
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.
Cardholder / Make a purchase
Use your card to order goods
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
• 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
Cardholder / Make a purchase
Ensure no taxes were charged
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
• 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.
Cardholder / Make a purchase
Enter order into eVA
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
• 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
Cardholder / Make a purchase
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…)
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
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
Cardholder / Make a purchase
Request a higher limit
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
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…)
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
Helpful hintBe 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
Change your information
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
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
Get a credit or make a return
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
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.
Cardholder / Special circumstances
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
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
Cardholder / Special circumstances
Learn the grounds for card suspension
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
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.
Cardholder / Special circumstances
Special procedures for goods over $2K
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
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.
Cardholder / Special circumstances
Agenda
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
Online Reconciliation
Learn the basics of 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
• 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.
Online Reconciliation
Process 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
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
Online Reconciliation
Give all original documentation to your Reviewer
Process Online Reconciliation (cont…)
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
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.
Online Reconciliation
Dispute a charge
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 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.
Online Reconciliation
Agenda
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 the P-Card as a Reviewer
What to expect 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
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
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 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…)
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
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
Ensure goods were actually delivered
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
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
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 all non-exempt transactions are entered into eVA as a PCO.
Reviewer
Keep your supporting documentation
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
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
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
Summary
Watch out for common mistakes
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
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.