1. P-Card Program Changes/Clarifications

2. P-Card Program Changes Open Forums August 13, 2008, 10:00 a.m. – 11:30 a.m. & August 14, 2008 10:00 a.m. – 11:30 a.m. Alumni Hall Theatre, Room 116

3. P-Card Changes Introductions

4. P-Card Changes State of Georgia House Bill (HB) 1113 http://www.legis.state.ga.us/legis/2007_08/fulltext/hb1113.htm  This site should be shared with all cardholders, approvers, and administrators as well as those individuals who request reimbursement of expenses

5. P-Card Changes HB 1113: 1. Imposes civil and criminal penalties for violations 2. Specifies rules, regulations, and requirements of the State Purchasing Card Program 3. Specifies travel advance rules and prohibits fraudulent reimbursement requests

6. P-Card Changes HB1113 cont. Section 1 (b): “ It shall be unlawful for any person to obtain for his or her own personal benefit, or for the benefit of any other person, any goods, services, or other things of value through any resource or method established pursuant to this article, including, but not limited to, purchase orders, government contracts, credit cards, or debit cards. ” Section 3(a): It shall be unlawful for any person to use any travel advance received from public funds, for nongovernmental purposes or to submit or approve, knowingly or through willful and wanton neglect, a fraudulent request to the state for reimbursement of expenses.

7. P-Card Changes HB1113 cont. Both P-Card cardholders and Approving Officials may be criminally prosecuted for P-Card misuse – a supervisor that according to Section 2(d) “ knowingly, intentionally, willfully, wantonly, or recklessly allows or who conspires with an employee who is issued a purchasing card to violate subsection [2](c) of this code section shall be subject to immediate termination of employment and criminal prosecution.

8. P-Card Changes HB1113 cont. Personal Use of the P-Card Under HB1113, the use of the P-Card for personal expenditures is strictly prohibited. Cardholders who violate this rule must immediately report the personal use and reimburse the funds. Per USG requirements, the University is required to report misuse to the Board of Regents who will then forward the information to the Attorney General ’ s Office. This is required regardless of a cardholder ’ s intent to reimburse the University. An example would be when a cardholder includes a personal purchase with a departmental order to take advantage of free shipping or pricing discounts.

9. P-Card Changes HB1113 cont. Personal Use of the P-Card All personal use (intentional and unintentional) of the P-Card should be handled by the cardholder as follows:  Immediately report the purchase to the Approving Official and the P- Card Administrator.  Immediately submit a check payable to GSU to the Cashier ’ s Office for the amount of the purchase.  Attach a memo on letterhead explaining the circumstances of what happened (including a timeline of the incident) and attach a copy of the receipt and/or other supporting documentation. Once a receipt is given to cardholder by the Cashier ’ s Office, submit all paperwork to P-Card Administrator. Note: These purchases will be reported to University Auditing and Advisory Services for disposition.

10. P-Card Changes HB1113 cont. Background/Credit Checks Pursuant to HB1113, in addition to the required criminal background check, credit checks will be required on employees hired for positions for which purchasing cards are issued. The credit check shall be completed prior to issuing the P-Card. Positions identified by the employing department as P-Card cardholders will be considered to be “ positions of trust ”. The University shall ensure that the results of a criminal background and/or credit check are provided the privacy protections required by law. Background and credit checks are required for all new cards issued, effective July 1, 2008. Current cardholders, at time of card renewal, must undergo a background check if not already completed by Human Resources.

11. P-Card Changes P-Card Roles and Mandatory Duties Cardholder Department Head Approving Official Statement of Ethical Values

12. P-Card Changes Cardholder Roles: 1. Regular classified employees 2. Individual to whom the card is assigned 3. Only one (1) card per cardholder 4. May not be his/her own “ approving official ” Mandatory Duties: 1. Record each transaction on a log as the purchase occurs 2. Provide adequate documentation to “ approving official ” for review 3. Sign/date the reconciled monthly transaction log (rubber stamp signatures are prohibited, all signatures must be original) 4. Reconcile the monthly bank statement with the transaction log, receipts, invoices and other supporting documentation. 5. Ensure a propriety review has occurred and is documented. A propriety review indicates that the purchase was reasonable, appropriate and necessary while also in compliance with P-Card rules and regulations Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the approving official who approves the purchase

13. P-Card Changes Department Head Roles: 1. Overall responsibility for budget 2. Sole authority for assignment of cards/roles; this responsibility cannot be delegated Mandatory Duties: 1. Establish and maintain internal controls 2. Approve issuance of new cards: a. Establish cardholder single transaction/monthly credit limits b. Assign knowledgeable individual acting in a supervisory capacity as the “ Approving Official ” for each card Note: It is recommended that Approving Officials not be responsible for reviewing more than ten (10) P-Cards at one time. Department Heads may request exceptions to this policy from the P-Card Administrator, provided appropriate justification is received

14. P-Card Changes Department Head Mandatory Duties (cont.) 1. Routinely assess business need for each card 2. Evaluate transaction/spending limits at least annually 3. Request changes to card set up and role assignment Note: The Department Head may also act as an Approving Official

15. P-Card Changes Approving Official Roles: 1. Required role (assigned by the Department Head) 2. Acting in a supervisory capacity to the cardholder Mandatory Duties: 1. Review the P-Card purchases of assigned cardholders on at least a monthly basis 2. The monthly review must be evidenced by a signature of the approving official on the reconciled transaction activity log for the assigned cardholders 3. Identify, document, and report cardholder violations 4. If desired, the Approving Official can also monitor P-Card purchases on a more frequent basis using the WORKS™ program Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the approving official who approves the purchase

16. P-Card Changes Statement of Ethical Values Cardholders will be required to sign a statement of ethical values in order to have a P-Card. Approving Officials will also be required to sign the statement of ethical values prior to being assigned as a P-Card Approving Official.

17. P-Card Changes Use of the P-Card

18. P-Card Changes/Clarifications Use of the P-Card 1. Eligibility and Limits 2. Unallowable Uses 3. Transaction Activity Logs 4. Food/Travel 5. Motor Vehicle Expenses 6. Common Errors 7. Consequences of Inadequate Documentation 8. Security Measures to Safeguard the P-Card

19. P-Card Changes/Clarifications Use of the P-Card 1. P-Cards may be issued only to regular classified employees of the University a. Job duty to require the use of the card b. No more than one(1) card per employee c. Monthly spending limit shall not exceed $10,000

20. P-Card Changes/Clarifications Use of the P-Card cont. Unallowable Uses: 1. Gift cards, gift certificates, or other equivalent forms of cash (e.g. purchase of gift cards to provide incentive to research participants or students) 2. Split transactions including items which might be purchased on statewide or agency contract to circumvent the single transaction limit 3. Purchasing items with the P-Card that are intended to be reimbursed by the Foundation 4. Intra-University charges (tickets) e.g. Rialto Center for the Performing Arts, Athletic events

21. P-Card Changes/Clarifications Use of P-Card Unallowable Uses cont. 1. Use of coupons, rebates or rewards programs that offer free items or promotional items for the benefit of the cardholder are not allowed when purchasing items with the P-Card a. Rebate checks must be made payable to GSU and deposited through the Cashier ’ s Office b. Example: An Office Supply vendor rewards program that allows a customer to earn free items bases on accumulated points/dollars spent c. HB1113 specifically prohibits employee personal use of rebates or refunds from vendors, banks or other institutions for a purchase or the use of the purchasing card

22. P-Card Changes/Clarifications Unallowable Use cont. P-Card Sharing 1. The cardholder is the only person authorized to use the P-Card that has been issued in that cardholder ’ s name 2. P-Card sharing is prohibited and results in immediate termination of P- Card privileges 3. P-Card sharing increases the risk of fraud and cardholder liability 4. Best practices to prevent fraud and misuse include NOT allowing an individual other than the cardholder to: a. Have physical possession of the P-Card to make payments to point of sale vendors; b. Have access to the P-Card number and expiration date to make payments via telephone, internet, or in person; c. Have access to receipts or invoices that display the complete P-Card number and expiration date

23. P-Card Changes/Clarifications Transaction Activity Logs: 1. As P-Card transactions occur, the cardholder must record all purchases on a transaction log 2. Logs help to keep a running tally of monthly charges and identify outstanding transactions not yet billed on the monthly bank statement 3. Maintaining a log will assist cardholders in staying within the established purchasing limits of the card

24. P-Card Changes/Clarifications Use of P-Card Food/Travel: Student food, student travel, and food for instructional uses is permitted on the P-Card subject to certain exceptions and documentation requirements. Additionally, food purchased for resale and as required supplies is allowable. Food purchased for official research use as approved by an Institutional Review Board (IRB), or food that is integral to or subject of research is permitted. Food and lodging for student activities (does not include faculty, staff, coaches, other school employees, volunteers, or other persons not related to the school) when on official business (e.g. athletic travel).

25. P-Card Changes Clarifications Use of P-Card Food/Travel Cont. Documentation must follow guidelines for “ group meals ” in the State Travel Regulations. 1. (a) Itemized receipt showing all meals purchased 2. Roster of participants showing name and signature of each student (for activities not open to the entire campus – e.g. Student clubs, athletic teams) 3. Copy of team schedule or other documentation showing that the meal was an authorized student activity

26. P-Card Changes/Clarifications Use of P-Card Motor Vehicle Expenses:  Motor vehicle Repairs and Maintenance are allowable purchased on the P-Card for state-owned fleet vehicles only. However, the P-Card Special Approval Request Form must be completed and submitted to DOAS for approval prior to repairs and maintenance. If approved by DOAS, all costs associated with the state vehicle repair and maintenance must be reported in accordance with DOAS Fleet Management regulations using MAXIMO, the State ’ s Fleet Management System administered by the DOAS Office of Fleet Management

27. P-Card Changes/Clarifications Common Errors: 1. P-Cards may only be used to purchase items allowed on University accounts. Examples of unallowable purchases include but are not limited to: a. Entertainment b. Flowers/gifts c. Service/Recognition awards i.e. plaques d. Break room supplies for employee use 2. Personal purchases 3. Inventoried Equipment 4. Travel (for employees and prospective employees) 5. Use of a retail site when vendor has established a specific website to provide statewide or agency contract pricing

28. P-Card Changes/Clarifications Use of P-Card Consequences of Inadequate Documentation: 1. Cardholders are required to personally reimburse the University for purchases not appropriately documented. 2. Approving Officials may also be required to reimburse the University if the Approving Official approved an undocumented purchase. 3. If appropriate documentation is unavailable, a Missing Receipts Affidavit Form must be completed, signed, and kept on file with the transaction activity log and monthly billing statement. The Missing Receipts Affidavit may only be used three times in a year. The 4 th time results in card suspension. Note: Responsibility for individual purchases rests with the individual cardholder making the purchase and the Approving Official who approves the purchase

29. Security Measures to Safeguard the P-Card Safeguarding P-Card 1. Keep the P-Card (and account number) in a secure location 2. Safeguard the P-Card as you would a personal credit/debit card 3. Lost, stolen, or fraudulently used P-Cards must be reported to Bank of America (1-888-449-2273) and DOAS (e-mail to ProcessImprovement@DOAS.GA.GOV) within 24 hours of discovering the loss, theft, or fraudulent use. The cardholder ’ s Approving Official and the P-Card Administrator must also be notified. ProcessImprovement@DOAS.GA.GOV 4. When placing an order online, use only secure sites. a. URL (website address) should begin with https b. A graphic, such as a lock, should appear in the bottom right hand corner of the browser bar

30. P-Card Program Changes/Clarifications Questions & Answers