1 Procurement Services Corporate Purchasing (P-Card) Card Training Internal review only. Last updated October 2012.
2 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 Why are you here?You are seeking either…..First time application to the program as a cardholder or reviewerAnnual recertificationYou are responsible for ensuring that your purchases are in compliance with state and university policies and procedures.Purpose of this trainingThis training is meant to protect you, VCU, and the Commonwealth of Virginia from negligent or fraudulent misuse of the P-Card.
3 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 Get to know the teamVCU Program Administrators Procurement ServicesBank of AmericaCard ProviderThelma Stockton Corporate Cards Program Manager, x84232Lena Massie Corporate Cards Associate Manager, x83407Customer Service,Monthly statements,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.
4 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 yPreview of the training sessionAgendaLearn the P-Card basicsWhat is the P-Card?Cardholder’s and Reviewer’s responsibilitiesThe importance of complianceUse the P-Card as a CardholderObtain and secure a cardMake a purchaseSpecial card considerationsOnline ReconciliationUse the P-Card as a ReviewerSummary
5 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 P-card BasicsWHY do we have the P-Card?To streamline the procurement process for small dollar goods and services required for business purposes only.Reduces paperworkImproves efficiencySpeeds up payment to suppliersWHO 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.WHEN does it expire? Two years from the date of issue.P-Card basics / What is the P-Card?
6 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 yLearn your responsibilities as a CardholderCardholder responsibilities include, but are not limited toEnsuring purchases comply with VCU policies and procedures, including allowable/non-allowable expenditure1Ensuring transactions are within established transaction limits and monthly credit limits23Processing proper monthly online reconciliationP-Card basics / Cardholder’s and Reviewer’s responsibilities
7 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 yEnsure Reviewer responsibilityThe Reviewer is equally responsible for ensuring compliance of the P-Card.What are you looking for?All purchases are valid business expensesReconciliation is supported with sufficient documentation, including original receiptsAll orders are in compliance with procurement policiesThere are no split charges and limits are not exceededMerchandise purchased with the card has not been returned for store creditState sales tax was not charged. If so, the refund was processed and documented.MonthlyResponsibilitiesP-Card basics / Cardholder’s and Reviewer’s responsibilities
8 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 yConsequences of misuseFailure 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.Deliberate or recurring noncompliance or failure to perform required duties may constitute cause for disciplinary action up to and including termination of employment.Please understand the importance of compliance!P-Card basics / Importance of compliance
9 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 yKnow what you can and cannot purchaseBut it’s your department’s money, why do we care?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 UniversityP-Card basics / Importance of compliance
10 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 yKnow what you can and cannot purchase (cont…)Common items that have special funding rules……ProhibitedRestrictedLocal funds onlyCatering/FoodPersonal itemsFlowersAlcoholFraudRentalsTravelCoffee for department useCharges associated with staff functionsGift cards, or any other cash equivalentsGasHotelsGiftsP-Card basics / Importance of compliance
11 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 yKnow what you can and cannot purchase (cont…)Common items that have special funding rules……ProhibitedRestrictedLocal funds onlyCard will not restrict purchase, so responsibility is on the cardholder to know policy.Requires the use of local funds with appropriate approval.Controls in place to restrict the purchase.P-Card basics / Importance of compliance
12 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 yKnow what you can and cannot purchase (cont…)Therefore, ALWAYS review the “Allowable/Non-Allowable Expenses” policyWhat are you looking for?Check that your purchase is allowableEnsure that your purchase is allowable for the funding source you are usingConfirm that appropriate approvals are obtained and filed with your statementAllowable Expenditure ChartNon-Allowable Expenditure ChartP-Card basics / Importance of compliance
13 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 AgendaUse the P-Card as a CardholderObtain and secure a cardMake a purchaseSpecial card considerations
14 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 yObtain and Activate your cardComplete training and pass test in Blackboard. Reviewer must pass or have passed test as well.Send a completed Employee Agreement form to the VCU Program Administrators. Form must be signed by you, your Supervisor and Reviewer.The card will be mailed to the Cardholder’s departmental PO Box within 7-10 business days.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 ).Cardholder / Obtain and secure a card
15 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 cardSecure your card at all times.Never make a photocopy of your card and never fax, mail or 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
16 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 Determine your vendorVCU 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
17 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 yUnderstand the charge to your departmentEnsure 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 behandled through Program Administrator.Changes to the index code after the charge should be handled via a Journal Voucher by the department. The account number 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
18 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 yRequest multiple cardsWhen 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
19 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 yRequest multiple cards (cont…)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.e.g., make purchases from a specific grant fund on that specific grant fund’s card.Cardholder / Make a purchase
20 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 yUse your card to order goodsTo give your order to a vendor, you may:web call person fax mailBut to give your card number to a vendor, you may:web call person fax mailCardholder / Make a purchase
21 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 yEnsure no taxes were chargedRemind the vendor that as a State agency, VCU is exempt from Virginia sales tax charges.Provide the vendor with the tax exempt number located atUpon 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 atFor internet orders, use comment fields to note VCU’s tax exempt status and the tax exemption certificate number.You must make every effort to obtain a refund from the vendor if Virginia sales tax is charged.Cardholder / Make a purchase
22 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 Enter order into eVAAll 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 eVAIf 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.Cardholder / Make a purchase
23 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 yEnter order into eVA (cont…)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:Over the counter goods (purchased in store)Conference registration feesExpress delivery servicesAll goods purchased with grant fundsFor a complete list, see the link:Cardholder / Make a purchase
24 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 Request a higher limitMost 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.P-CARDIf you require a higher or lower monthly or transaction limit, request that your P-Card Reviewer 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.KIt 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.Cardholder / Special circumstances
25 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 yRequest a higher limit (cont…)Helpful hint Be 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
26 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 yChange your informationWhenever 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
27 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 yGet a credit or make a returnIf 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.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 withThe date and time of communicationNotes on the discussionThe vendor’s suggested course of action.Cardholder / Special circumstances
28 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 Cancel your cardHow do I cancel my card?the Program Administrator to cancel your card and give it to your Supervisor to cut-up and discardWhy would I need to cancel my card?TerminationChange/move to a different departmentAs requested by the Program AdministratorWhat do I do if my card is lost or stolen? Immediately contact Bank of America and Program AdministratorsCardholder / Special circumstances
29 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 yLearn the grounds for card suspensionThe Program Administrator and Bank of America may suspend cards if:There is a history of abuseCardholder 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
30 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 ySpecial procedures for goods over $2KEquipment or other tangible items (e.g. furniture or computers) costing $2,000 or more must be reported to the Office of Property Management.Complete the “Addition to Equipment Inventory” form at and submit it to Property Management.Retain a copy of the completed form with your P-Card statement.Cardholder / Special circumstances
31 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 AgendaOnline Reconciliation
32 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 yLearn the basics of Online ReconciliationIn 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.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.Online Reconciliation
33 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 yProcess Online ReconciliationStep by step processRetain all original receipts and supporting documentationReconcile the Department Transaction ReportSign-off on transactions (electronically)Submit to your ReviewerGive all original documentation to your ReviewerOnline Reconciliation
34 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 yProcess Online Reconciliation (cont…)For the detailed procedures on Online Reconciliation, please see the Procurement Services website.Online Reconciliation
35 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 a chargePricing discrepancies between the supporting documentation and the Department Transaction Report must be documented and resolved.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.Online Reconciliation
36 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 AgendaUse the P-Card as a Reviewer
37 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 yWhat to expect as a ReviewerAs a Reviewer, you will:Take the mandatory trainingReport the following to the Program Administrator in a timely mannerNon-compliancePotential fraudChanges to Cardholder’s nameRequests to increase/decrease limitsChanges to accounting information (i.e., index code)Card cancellations and card destructionReinforce 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 appropriatenessReviewer
38 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 yApprove Online ReconciliationAt 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.What to look for?Vigorously question any receipt which does not 100% appear to be an original receiptEnsure all transactions are accounted forEnsure that amounts match between the Dept. Transaction Report and supporting documentationValidate receipts are original receipts
39 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 yApprove Online Reconciliation (cont…)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:
40 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 yEnsure goods were actually deliveredBy 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 from someone other than the cardholder, must be obtained.When performing Banner reconciliation, ensure that charges reflect purchases approved in Works.Reviewer
41 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 yEnsure transactions were entered into eVAEnsure all non-exempt transactions are entered into eVA as a PCO.Reviewer
42 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 yKeep your supporting documentationYou must retain all supporting documentation with the reconciliation for a period of at least three fiscal years.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.Reviewer
43 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 AgendaSummary
44 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 yWatch out for common mistakesThe following are the most common mistakes made by the Cardholder and/or Reviewer:The reconciliation is not completed timelyFailure to enter non-exempt P-Card transaction in eVAThe card number is photocopied, ed or faxedVirginia sales taxes are paid to vendorsThe card is shared with a Supervisor and/or co-workersReceipts are missingMultiple orders are placed in order to circumvent the established limitAppropriate approval is missing for expenditures that require special approvalSummary
45 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.
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