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Procurement Services Corporate Purchasing (P-Card) Card Training Internal review only. Last updated October 2012.

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Presentation on theme: "Procurement Services Corporate Purchasing (P-Card) Card Training Internal review only. Last updated October 2012."— Presentation transcript:

1 Procurement Services Corporate Purchasing (P-Card) Card Training Internal review only. Last updated October 2012.

2 Why are you here? 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

3 Get to know the team 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 –Thelma Stockton Corporate Cards Program Manager, x84232 –Lena Massie Corporate Cards Associate Manager, x83407 –Customer Service, –Monthly statements, com. 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 Administrators Procurement Services Bank of America Card Provider Bank of America Card Provider

4 Preview of the training session 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? Cardholders and Reviewers 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

5 WHO is eligible to receive one? Employees approved by their Supervisor are eligible. Cards are issued with the Cardholders 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 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?

6 Learn your responsibilities as a Cardholder 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 / Cardholders and Reviewers responsibilities

7 The Reviewer is equally responsible for ensuring compliance of the P-Card. Ensure Reviewer responsibility 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 / Cardholders and Reviewers responsibilities

8 Consequences of misuse 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 Cardholders card privileges and/or employees system access to eVA, even for first offense. Please understand the importance of compliance! P-Card basics / Importance of compliance

9 Know what you can and cannot purchase 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 its your departments money, why do we care? P-Card basics / Importance of compliance

10 Know what you can and cannot purchase (cont…) 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 ProhibitedLocal funds only Charges associated with staff functions Restricted Catering/Food Common items that have special funding rules…… Rentals GasHotels Travel Fraud P-Card basics / Importance of compliance

11 Know what you can and cannot purchase (cont…) 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 ProhibitedLocal 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.

12 Know what you can and cannot purchase (cont…) 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 Chart to/make-a-purchase/know-what-you-can- and-cannot-buy/allowable-business- expenditure-chart/#.UIFdp2-HKOM Non-Allowable Expenditure Chart to/make-a-purchase/know-what-you-can- and-cannot-buy/non-allowable- expenditures-chart/#.UIFfKG-HKOM P-Card basics / Importance of compliance

13 Agenda 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

14 Obtain and Activate your card 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 Cardholders 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 ). Cardholder / Obtain and secure a card

15 Secure your 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 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 Determine your vendor 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

17 Understand the charge to your department 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 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 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

19 Request multiple cards (cont…) 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 funds 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

20 Use your card to order goods 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 mail But to give your card number to a vendor, you may: web call person fax mail Cardholder / Make a purchase

21 Ensure no taxes were charged 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 Upon request, provide the vendor with a copy of VCUs tax exemption certificate form. The tax exemption form can be found on the Financial and Reporting website at For internet orders, use comment fields to note VCUs 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

22 Enter order into eVA 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 PCOs (Purchase Card Order). Some transactions are exempt from eVA. It is the Cardholders 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.

23 Enter order into eVA (cont…) 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: 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

24 Request a higher limit 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 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 cards 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

25 Request a higher limit (cont…) 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 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 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

27 Get a credit or make a return 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 vendors 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

28 How do I cancel my card? 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 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

29 Learn the grounds for card suspension 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

30 Special procedures for goods over $2K 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 ing/Addequipinventory.pdf and submit it to Property Management. ing/Addequipinventory.pdf 2.Retain a copy of the completed form with your P-Card statement. Cardholder / Special circumstances

31 Agenda 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

32 Learn the basics of 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 months 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

33 Process 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

34 Process Online Reconciliation (cont…) 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 to/use-p-card/process-online- reconciliation/#.UIFjVW-HKOM For the detailed procedures on Online Reconciliation, please see the Procurement Services website. Online Reconciliation

35 Dispute a charge 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 cardholders 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

36 Agenda 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

37 What to expect 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 Cardholders 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

38 Approve Online Reconciliation 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

39 Approve Online Reconciliation (cont…) 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 Cardholders transactions to replenish their credit limit prior to the close of the next billing cycle. The statement billing cycle can be found at: chase_Charge_Card_Main.cfm chase_Charge_Card_Main.cfm

40 Ensure goods were actually delivered 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 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 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

42 Keep your supporting documentation 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

43 Agenda 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

44 Watch out for common mistakes 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, ed 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

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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