1. Procurement Card (P-CARD) Program Training

2.  Introductions  Program Overview  General P-Card Information  General P-Card Processes  General Purchasing Guidelines  Documentation & Reconciliation  Miscellaneous Information  WORKS Payment Manager  P-Card Program Contact Information  Questions  Test

3. Purpose of the Program What is a P-Card Program Benefits Corporate Liability

4. This program was established to allow rapid purchases of repetitive or low dollar goods and allowable services while simultaneously reducing paperwork and handling costs associated with these types of purchasing processes.

5.  Corporate Visa Credit Card issued through Bank of America.  Issued in the Employee’s Name.  Includes University Name/Logo.  Allows Employees to make authorized purchases without having to go through the requisition process.  Charges are billed directly to the University.

6. Benefits to Cardholder  Eliminates the need to use personal funds and obtain reimbursements.  Provides convenience, security, and flexibility to make small dollar purchases.  Empowers Cardholders with choices and immediate access to goods. Benefits to Fayetteville State University  Significant cost savings in the purchase-to-pay cycle.  Eliminates the requisition/purchase order process.  Increased expense analysis power.  Increased ability to provide value-added services.  Eliminates Vendor registration

7. The FSU P-Card is a Visa credit card with corporate liability. Corporate liability is defines as:  The University is liable for all charges made by University Employees  The University is not liable for charges made by a terminated Employee once notice of termination is provided to the card issuer.  The University is not liable for charges made with the P-Card resulting from card theft or other fraudulent use by third parties not employed by the University.

8. P-Card Usage P-Card Security Spending Levels Roles & Responsibilities

9.  The P-Card can be used for allowable FSU business expenses with vendors that accept Visa credit cards.  Personal use of the card is not allowed and will be considered as terms for card revocation as well as employee disciplinary action.  Charges are limited by single, daily, and monthly transaction dollar amounts

10. FSU Employees are responsible for ensuring the quality of, and control over, University data associated with an issued P-Card. All P-Card numbers and associated Cardholder data is considered “Confidential Data” as defined in FSU policies and must be safeguarded in the manner described by the Payment Card Industry data Security Standards (PCI DSS).

11. Cardholder Data Sensitive Authentication Data  Primary Account Number (PAN)  Cardholder Name  Service Code  Expiration Date  Card Validation Codes/Values (3 or 4 digit card verification code)  Full magnetic stripe data  Primary Identification Numbers (PINS) and PIN blocks

12. P-Card AccessTransmission  Can only be used by the person to whom the card was issued  All handling of data (for retention, storage, or destruction) must be carried out by authorized Employees only.  Transmission of payment card data must be secure.  Card data is to NEVER be sent via e-mail.  Submit card data via phone, secure analog fax, or through a Vendor’s secure website.

13. StorageDisclosure/Breach Notification  Always keep the card in a secure place.  No Sensitive Authentication Data may be stored in writing, even if encrypted.  Maintain receipts in a safe place until they are submitted for approval  Never sell, purchase, provide, disclose, or exchange any Cardholder account information or any other transaction information without proper approval and authorization.  Any suspected breach or fraudulent/criminal activity involving card data must be reported to the P-Card Administrator and Card Issuer Immediately.

14. Spending LevelSingle Transaction Limit Daily Transaction Limit Monthly Transaction Limit FSU – 11,0002,50010,000 FSU – 2 (Standard)2,5005,00015,000 FSU – 3 (Extended)5,00015,00025,000 ‣ Unlimited number of transactions up to the daily and/or monthly limits. ‣ Spending level is determined by Cardholder’s Department Head. ‣ Assignment of FSU-3 will be based on business need and is at the discretion of the Purchasing Department.

15.  Purchasing Department  Cardholder  Reconciler/Approver  Manager  Department Head

16.  Purchasing Department Provides program management and oversight. ◦ Develops and delivers effective training for users. ◦ Ensures program compliance and quality assurance ◦ Maintains all policies, procedures and forms directly associated with the program. ◦ Responsible for developing, updating and administering all audit and disciplinary policies related to the P-Card program. ◦ Approves payment of the monthly card charges based on the statement from the Card Issuer and the information in the card management system.

17.  Cardholder Authorized University personnel who make frequent, low-dollar purchases for University business. ◦ Ensures compliant use of the P-Card according to University and State of NC purchasing and P-Card policies and procedures. ◦ Maintains P-Card in a secure location at all times. ◦ Never allows anyone else to use their P-Card ◦ Ensures spending limits and allotted operating budget are not exceeded on any transaction. ◦ Obtains a valid receipt for each purchase. ◦ Provides clarity to an item description and/or business purpose that is not self-explanatory. ◦ Ensures all P-Card purchases are legitimate and have a legitimate business purpose. ◦ Regularly reviews transactions to ensure compliance and accuracy of charges. ◦ Allocates transactions to the correct accounting codes.

18.  Reconciler/Approver Responsible for all functions associated with post-purchase processing in the card management system (WORKS). ◦ Receives and Uploads receipts from the Cardholder into WORKS (If not already completed by Cardholder) ◦ Compares receipts with transactions recorded in WORKS ◦ Reviews and approves each transaction in Works and ensures that:  Items, amount charged and Vendor name match the receipt  NC Sales and Use Tax is not included (when applicable)  Description of the expense is clear  Business purpose for the expense is clear  Correct FOAP (Fund, Org, Account and Program) codes are used ◦ Resolves discrepancies with the Cardholder when necessary ◦ Responsible for submitting Reconciliation Packets by due date. ◦ CANNOT make purchases using the card for which they are designated as the Reconciler and CANNOT report directly to the Cardholder

19.  Manager Person who approves purchases that have been made by the Cardholder(s). ◦ Ensures compliant use of the P-Card according to University and State of NC purchasing and P-Card policies and procedures. ◦ Reviews transactions in WORKS to verify that purchases have been documented, charged to the correct FOAP, and ensured corrections are processed in a timely manner. ◦ Ensures Cardholder has not exceeded the spending limits or fund budget on any transaction. ◦ Reviews and ensures the Cardholder has not split any transactions to circumvent spending limits or University guidelines. ◦ Ensures review and signoff is completed within 7 calendar days from end of billing cycle. ◦ Ensures Reconciliation Packets are delivered to the Purchasing Department by the 5 th of the month following the end of the billing cycle.

20.  Department Head Provides fiscal oversight and management of business operations with his or her department ◦ Selects departmental employees for participation in the P-Card program based on business need and the ability to fulfill program requirements. ◦ Accounts for the use of the P-card in his or her department, taking appropriate action with departmental staff when required. ◦ Ensures staff members are performing P-Card activities during regular work hours or with the advanced approval of their supervisor if overtime is required to complete tasks.

21.  Transactions may be audited by the Purchasing Department, Internal Audit, NC Office of the State Auditor and the NC Division of Purchase & Contract Compliance Team  P-Card Administrator reviews all transactions daily  Cardholders may receive an email requesting additional information  Must make every effort to resolve any issues promptly  Insufficient statement documentation is considered a violation  Consistent problems and errors may result in P-Card cancellation

22. How to Obtain a Card P-Card Process (High Level) Transaction Process Overview P-Card Changes/Inactivity Card Renewal Lost or Stolen Cards

23.  Discuss program with Department Head to determine who should participate in the program.  Contact the P-Card Administrator to register for a training session. All participants (Cardholder and Reconciler/Approver) must attend a training session.  Complete/Pass the P-Card training exam.  Submit a completed P-Card application and Cardholder Memorandum of Understanding (MOU) to the Purchasing Department.

24.  Cardholder makes purchase(s)  Cardholder review charges, signs-off to approve transactions and provides a business purpose for all transactions.  Cardholders forward Reconciler the original receipts and a signed bank statement.  Reconciler review charges, edits FOAPAL code(s) as needed, and signs off on transactions and/or requests additional information from Cardholder.  Reconciler/Approver and Manager reviews charges for accuracy and approves  Reconciler forwards Reconciliation Packet (Transaction Log, bank statement and original receipts) to the Purchasing Department

25.  Cardholder initiates a transaction on their card  Email notification sent from WORKS to Cardholder informing a transaction(s) has posted to their account. (Transactions typically post 24- 72 hours after purchase.)  Cardholder will log into WORKS system and reviews transactions and account coding.  Cardholder makes changes to FOAPs, if needed.  Cardholder signs-off to approve transaction and enters business purpose.

26.  Transaction is routed to the Reconciler/Approver for review.  Reconciler/Approver logs into WORKS system and reviews transaction.  Reconciler/Approver edits FOAPAL code(s), as needed, if cardholder has not.  Reconciler/Approver signs off on transaction or requests additional information from user.  Credit line is restored only after transactions are signed off in the WORKS system by the Cardholder and/or Approver.

27.  P-Card Administrator will sweep transactions for the monthly billing cycle and import into Banner.  Cardholder receives bank statement monthly, attaches receipts, then forwards to Reconciler and/or Manager for signature.  Reconciler submits Reconciliation Packet(s) with monthly statements, attached receipts and appropriate signatures to the Purchasing department by the 5th of the following month.

28. Card ChangesCard Inactivity Complete a Purchasing Card Change Form located on the P-Card website to report one or more of the following:  Legal Name Change  Change to Fund/Org Codes  Request Spending Limit Changes  Change to the Reconciler/Approver  Cards that are inactive for ninety (90) days or more will be reviewed for possible cancellation by the P-Card administrator.

29.  P-Cards are issued with a three (3) year expiration date and are renewed every two (2) years.  Card Issuer will mail renewal cards to the University and will be distributed by the P- Card Administrator.

30. REPORT LOST OR STOLLEN CARDS IMMEDIATELY BOA Customer Service at 1-800-822-5985 AND FSU P-Card Administrator at 910-672-1199 If the P-Card Administrator is not immediately available, please contact the Purchasing Director at 910-672-1086. Also notify your Approver/Department Head.

31. Vendor Selection Allowable/Non-Allowable Purchases Merchant Category Codes (MCCs) Split Transactions Sales Tax Exemption Shipping Information Returning Purchased Goods

32. The P-Card may be utilized with any authorized (allowable) Vendor who accepts Visa as a payment method, with the following exceptions:  The Vendor CANNOT be Fayetteville State University or a State Employee.  The Vendor CANNOT be an immediate family member of any employee of the University.  The Vendor CANNOT be listed on the State of NC or Federal Government Debarred Vendors list.

33. State contract items purchased through State contract vendors (Items not available in Bronco eBuy) Memberships and organization dues Subscriptions – Must be sent to a FSU address | Annually Conference Registrations (all FSU Travel policies apply) Publications Office/Lab supplies and equipment (contract vendors) Postage and Stamps Express Shipping & Freight Advertising Certifications Interlibrary loans Allowable

34. × NO Purchases for personal use × NO Purchases over designated spending limits × NO Split transactions to circumvent the single transaction limit × NO Animals × NO Cash Advances × NO Weapons and Ammunition × NO Purchases from Pawn Shops × NO Controlled Substances (Drugs, Alcohol, Fireworks, etc.) × NO Payments to individuals, consultants or employees (Vendor must provide a FEIN Number versus a SSN) × NO Vehicle rentals, gas, trip protection, taxis/shuttles, etc.) × NO Individual/Personal Meals × NO Gifts (Including: flowers, cards, holiday items, etc.) × NO IT Hardware or Software (computers, laptops, etc.) Non-Allowable

35. Vendors who accept VISA register with their bank under a specific Merchant Category Code (MCC) identifying the type of services they provide. The University has blocked some MCCs to control unauthorized purchases (i.e. restaurants, personal services, alcohol, etc.) The P-Card will be declined if presented to a type of vendor that falls under a blocked MCC. If a transaction is declined at a Vendor you feel may be inappropriately blocked, please contact the P-Card Administrator, and the Purchasing Department will investigate.

36. A split transaction occurs when a purchase is split to stay within the transaction limits (single, daily, or monthly) assigned to your card, or to avoid the competitively bidding process. Splitting transactions is strictly prohibited and can result in immediate card revocation.

37. Examples:  A Cardholder wishes to purchase similar or complementing items with a total cost of $3,000. The sale is divided into two (2) transactions of $1,800 and $1,200. This is considered a split transaction to avoid exceeding the single transaction limit if $2,500 and is not allowed.  A Cardholder wishes to purchase an item with a total cost of $3,500. The Cardholder makes arrangements with the Vendor to pay $2,500 one day, and the remaining balance on the following day. This is considered a split transaction and is not allowed.  A Department wishes to purchase an item or complementing items with a total cost of $4,500. Two Cardholders within the same department use their cards to purchase the item(s) and two transactions occur (one on each card) for the purchase. This is considered a split transaction and is not allowed.

38. FSU is NC sales tax exempt for most purchases.  All P-Cards display the FSU Tax ID number.  Cardholder must inform the vendor of the tax exempt status at time of purchase.  If tax is charged, it is the cardholder’s responsibility to obtain a credit from the vendor to his/her P-Card account.

39. To ensure goods are not returned to the sender by Central Receiving and Mail Services, please include the University Name, Department and Building Information for all deliveries when using the P-Card. Example: Fayetteville State University [Department Name] Attn: [FSU Employee] [Building Name], Room [XXX] 1200 Murchison Road Fayetteville, NC 28301

40.  Credit must be issued back to card for returns.  Contact the Vendor to obtain a Returned Materials Authorization (RMA) number for the return (if applicable).  Always retain boxes, containers, packing slips, etc. until you are certain that you are going to keep the item(s).  Never accept cash or cash equivalents (gift cards, etc.) for returns.  Contact Fixed Assets if equipment has been tagged.  Utilize FSU Central Receiving (910-672-1743) for pickup and shipping needs.

41. Reconciliation Overview Documentation Disputed/Fraudulent Charges Reconciliation Packet Requirements Schedule/Deadlines

42. The P-Card billing cycle ends on the fifth (5 th ) of each month. All transactions must be reconciled and approved in the card management system (WORKS) within seven (7) days of the date the billing cycle ends, unless the seventh (7 th ) day falls on a Friday, weekend, or holiday. (See Schedule/Deadline slide for exact due dates.) After the seventh (7 th ) day, transactions will be closed, and Departmental accounts will be charged for transactions that occurred during the period. Failure to complete the reconciliation/approval process prior to the deadline will result in all transactions being charged to the Cardholders default FOAP.

43.  Original, itemized receipt or invoice for each transaction ◦ Vendor, Description, Unit Price, Extended Price, No Sales Tax, Shipping and Total Amount  FSU ship-to address (no home address)  Types of Receipts: Vendor Letterhead, Detailed & Priced Packing Slip, Courier Receipts (FedEx or UPS), Web Print-Out.  Business purpose clear for each transaction (Written on each receipt)  Food Purchases (Grocery Items): Include business purpose, itemized receipt, flier/announcement, and list of attendees.

44.  Disputed/fraudulent charges must be addressed immediately with the Vendor and/or P-Card Administrator  Contact the Vendor to try and resolve any incorrect charges, etc. Credits should be requested for any overcharges.  If a Vendor disagrees with a request for a credit/adjustment, please contact the P-card Administrator and he or she will work with you and the Card Issuer to resolve the dispute.

45.  Be sure all receipts are attached to the statement and itemized in order of the Bank Statement list. (Staple in top, left-hand corner.)  All receipts must be itemized and show what was purchased  Tape small receipts to 8.5”x11” paper. Be sure tape is not covering details.  Copies of thermal paper (shiny) receipts attached  Verify dollar ($) amounts Match  Verify tax was not charged, as we are tax exempt.  No splitting of charges

46.  Confirm purchase is supported by fund  Business purpose is clear for every purchase.  State Contract Vendors being utilized.  Minimum of two signatures on each statement. Signatures are to be in ink and legible. (Ex. Cardholder & Reconciler/Approver; Cardholder & Manager; Cardholder, Reconciler/Approver & Department/Division head)  Reconciliation Packet is due to the Purchasing Department by the 5th of the month following the close of the billing cycle.  Card will be suspended or closed as a result of multiple violations

47. REVIEW OF SAMPLE RECONCILIATION PACKET PROVIDED IN FOLDERS

49. Cardholder Termination/Transfer Vendor Surcharge International Transaction Fee Additional Resources

50.  Human Resources sends an email to P-card Coordinator, stating the cardholder is leaving and their effective separation date.  The Procurement Card will be cancelled upon the cardholder’s termination.  If an employee transfers to a different department, a new application/approval must be completed and signed by the new Department Head.

51. Effective January 27, 2013, vendors can legally charge a transaction fee on VISA/MasterCard credit card purchases. The “check-out fee,” if any, will be determined by the merchant, but cannot exceed 4% of the transaction amount. The vendor must inform you at the time of sale that there will be a surcharge and the amount of the fee. The charge should be shown on your receipt as well. It is up to your department’s discretion whether they are willing to accept the fee or prefer to submit a requisition in Bronco eBuy. For the University, the cost savings of using the P-Card still outweighs the potential fees charged and the costs of submitting requisitions for low dollar purchases. If you feel the surcharge is in excess of the 4% or wasn’t communicated to the Cardholder in advance, you may file a merchant violation form online https://usa.visa.com/checkoutfees/contact.jsp https://usa.visa.com/checkoutfees/contact.jsp

52. International transaction fees are a legit charge, but you will not receive a receipt for them. It is a fee that is approximately 1% of the purchase price that the bank charges when you make a purchase outside of the U.S. Sometimes, when purchasing items online, you will not even realize that the vendor is not in the U.S., so it’s easy to get them confused. To find out what charge your fee goes with, login to WORKS and click on your vendors. Then, under “transaction” tab, click the number beside Vendor ID. That will show you the address of the vendor. If the vendor is not in the U.S., the fee goes with it. The international transaction fee must be coded to the same FOAP as the transaction it belongs with.

53.  FSU P-Card Website FSU P-Card Website  NC Procurement Manual NC Procurement Manual  NC State Term Contracts (Non- IT) NC State Term Contracts (Non- IT)  NC State Term Contracts (IT) NC State Term Contracts (IT)  State Debarred Vendors State Debarred Vendors  Federal Debarred Vendors Federal Debarred Vendors

54. Reviewing Charges Updating FOAPAL Codes Signing-Off on Transactions GL Memo

55. Valerie Colorado, Procurement Card Administrator Business and Finance – Purchasing Department Barber Building – First Floor, Cubical “C” 910-672-1199 vcolorad@uncfsu.edu Ms. Willie McIntyre, Purchasing Director Business and Finance – Purchasing Department Barber Building – Office 139 910-672-1086 wmcintyre@uncfsu.edu Kevin Crutchfield, Director of Materials Management Business and Finance Barber Building – Office 140 910-672-1062 kcrutch1@uncfsu.edu