1. 1 Boise State University P-Card Policy and Procedure Review 2013

2. P-Card at Boise State University Boise State University has approximately 750 cardholders, with purchases by the campus community averaging $1.3 million monthly. P-Card provides us with a procurement tool that allows staff to purchase items needed for day to day operations quickly and conveniently. – Funds administered by Boise State University, regardless of source (Local, Grant, Appropriated) are subject to university policy. – Employees involved in p-card use (cardholders, reconcilers, approvers and managers) are required to review p-card training references (training presentations, university p-card website, and policies governing p-card use) Be sure your purchase complies with policy before committing funds. 2

3. Guidelines for purchasing goods and services approved by your department Orders or commitments by faculty or staff are not binding on the University unless supported by a valid purchase order (PO), an approved contract, or the authorized use of an institutional procurement card (P-Card). For Purchases under $1,999Use P-Card for purchases authorized per p-card policy For Purchases over $1,999 Use Purchasing Requisition or Approved Contract Purchasing Requisition Complete a Purchasing Requisition form. Submit form to University Purchasing with specifications from vendor. Note: Purchases over $10,000 require bids from 3 Idaho vendors. Approved Contract An approved contract is one that has been signed by an individual with an appropriate level of signing authority as established by the VPFA's office and has been reviewed by General Counsel's office or written using the University approved Contract for Services form. Employee reimbursement should be the last option for business purchases. The use of personal funds for business-related non- travel purchases is strongly discouraged. Reimbursement is subject to department approval, availability of funds and must be in compliance with university policies. We’ll be focusing on p-card as payment method in this presentation. 3

4. Purchasing with your P-Card is easy P-Card is a Visa card, accepted by most vendors. Most of our purchases with p-card are for supplies necessary for business from online contract vendors (OfficeMax for example) – P-Card is used for purchases less than $1,999. – Purchases should be within policy and authorized by your area. – Check the list of state contract vendors before shopping off contract with online or local vendors. When you are ready to purchase, call the vendor, or go online (go to the local store ONLY if absolutely necessary) – Request sales tax exemption before paying for your purchase. – Get a detailed receipt from the vendor for each purchase. Keep a log of your purchases as you make them to assist you in completing your reconciliation. – Note the date ordered, vendor, estimated amount and business purpose. – Use the log to help you identify transactions during the reconciliation process.

5. Reconciling your Statement Online with Bank of America’s Works application P-Card expense should be reviewed and reconciled weekly or bi-weekly using Works. Transactions are reconciled by assigning or adding the following:  GL expense account code identifying the type of expense.  Dept ID (department fund source). A Project or Chartfield code may also be required in some areas or for grant funds to provide further accounting detail.  Travel Authorization number entry is required for employee travel or field trip expense.  A business purpose for the purchase must be entered in the ‘Description’ box. P-Cardholders are usually responsible for the reconciliation process and the final cardholder “Sign Off” on individual transactions. Some departments designate a “Reconciler” to assist or complete the reconciliation on behalf of a cardholder. Check with your department to determine your role in the reconciliation process. All cardholders are required to review, sign and date their printed statement after reconciliation has been completed. Original receipts and other required documentation must be attached to the printed statement and submitted to department p-card approver by the required due date. 5

6. Authorized P-Card Purchases 6 P-Card is intended for small dollar purchases of products and supplies needed during the course of business. Purchases against State Contracts up to the single transaction limit on your account may be made from vendors willing to accept Visa. Some common purchases include:  Office and class supplies  Advertising expense (newspaper ads, other media)  Books, subscriptions, work-related membership/organizational fee  Meal and refreshment expense in compliance with university policy  Employee business travel and field trip expense listed below is allowed with approved Travel Authorization:  Student event fees and meals related to field trip  Pre-paid hotel or hotel/airfare packages (Room and tax only)  Conference registration  Airfare  Rental car and related purchases (gas, parking for rental car)  Non-employee expense for the following is allowed:  Job candidate airfare and lodging Consider purchasing airfare that is refundable in case of cancellation.

7. Unauthorized P-Card Purchases Any purchase not approved by your department, above account limits, or not allowed per Boise State p-card policy is considered unauthorized. Here are some examples of unauthorized purchases:  Alcoholic beverages  Cash advances, salaries and wages  Computers, laptops, notebooks and other personal computing devices Purchase through OIT (Office of Informational Technology)  Cellular phones, communication devices including PDA’s Accessories and service related to above (Check with OIT for assistance)  Fuel or parking for personal vehicles Check with Travel Services for mileage reimbursement (vicinity travel)  Payment to or on behalf of Independent Contractor This includes lodging and airfare payment for IC (check the Independent Contractor Policy for directions on payment to or on behalf of IC)  Personal expense *including accidental, or partial Keep p-card separate from personal credit cards Do not store account number online

8. 8 State Contracts and University Price Agreements Cardholders are required to use state contracts and university price agreements for purchases. View the vendor contract list and contact information for each @ http://vpfa.boisestate.edu/purchasing/contracts/ http://vpfa.boisestate.edu/purchasing/contracts/ Office, computer, class supplies Office, computer, class supplies OfficeMax Business Solutions (Online) Does not include the local retail outlet Class and lab supplies Class and lab suppliesFisher Scientific or VWR International (online) Office furniture Office furnitureIntermountain Design (Kimball brand) Office Pavilion (Herman Miller brand) Office Environment Co (Steelcase brand) Other furniture options include Correctional Industries (desk/workstations designed to your specifications), or used business furniture from resellers. On-campus catering and food service On-campus catering and food serviceUniversity Dining Services Bottled water delivery, and/or Coffee service for public offices Coffee service for public offices Treasure Valley Coffee Price cannot be a factor in choosing an off-contract vendor. If you do find a considerable price difference between contract vs. non-contract cost, please notify Purchasing with specific detail.

9. 9 Use the Boise State University P-Card Information website to find links to policies, forms, and other references. http://vpfa.boisestate.edu/pcard/ http://vpfa.boisestate.edu/pcard/

10. Purchases requiring additional approvals Purchases requiring additional approvals Meals, Refreshments or Events Purchases - Regulated by BSU Policy #6260, 6240, 6250 Meals And Refreshments Required Form: Meals & Refreshments (Events) Form The university has 3 policies governing meals and refreshments based on fund source: Local, Appropriated & Grant, and Public Relations funds. Review the policy that applies to your particular purchase including the appendix with per diem rates (amount allowed per meal) Gift Purchases - Regulated by BSU Policy #6230 Gifts And Awards Required Form: Gift/Award/Incentive Form For Gifts Equal To Or Exceeding $75 For Employees Or $250 For Non-employees A monthly gift report is provided to university business managers; a quarterly gift report is provided to university deans/VP’s for review purposes. Travel Purchases - Regulated by BSU Policy #6180 Travel Policy Required Form: Travel Authorization Employee business travel and field trip expense listed below is allowed with an approved travel authorization: – Student event fees and meals related to field trip – Pre-paid hotel or hotel/airfare packages (Room and tax only) – Conference registration – Airfare – Rental car and related purchases (gas, parking for rental car) 10

11. P-Card and Employee Travel Travel Authorization A Travel Authorization is required for employee business travel and field trips if there is cost to the university and/or:  The event location is outside Boise vicinity (50 mile radius).  Includes an overnight stay.  Transportation is provided by the university. PLAN AHEAD PLAN AHEAD Complete the required Travel Authorization before committing funds. Include the TA number in the TA field provided in Works- Attach all original receipts and a copy of the ‘approved’ Travel Authorization to your p-card statement. Forward copies of p-card travel receipts to Travel Services with the Expense Report form for audit review. If all expense related to business travel is paid with p-card and no reimbursements are necessary, forward copies of p-card travel receipts with a copy of your Travel Authorization form to Travel Services. Most non-employee travel expense is not allowed on p-card with the exception of job candidate airfare and lodging. Check with Accounts Payable for information regarding reimbursing guests of the university for travel expense.

12. Why so much paperwork…? Why so much paperwork…?. Idaho Press-Tribune Audit: ID agency broke travel reimbursement rules Posted: Tuesday, July 12, 2011 BOISE, Idaho (AP) — Legislative auditors found the Idaho Real Estate Commission violated state travel reimbursement policies when paying employees more than $1,600 for meals that were provided at conferences in 2008, 2009 and 2010. Fraud Alleged at New York University By THE ASSOCIATED PRESS Published: December 23, A former New York University employee used thousands of receipts mined from a liquor store’s trash to get reimbursed for $409,000 in phony expenses, prosecutors said on Wednesday…Credit card fraud, misuse found at 5 Florida universities International University professor used a school credit card to buy at least $5,000 worth of personal Sun Sentinel Florida …items, including an MP3 player, a wireless reading device and a membership with United Airlines' Red Carpet club. Georgia System's Investigation of Purchasing-Card Fraud Finds $350,000 Theft. An unnamed official at the Georgia Institute of Technology used a university purchasing card... Inappropriate p-card practices: an understaffed university while performing routine documentation reviews for the university's procurement card... criminal investigation of what was now a suspected p-card fraud. The Arizona Daily Wildcat - 2 employees suspected in P-card fraud... University credit cards abused Ariz. college employees bought furniture, dishes, trips, clothing The Arizona Republic Jul. 8, 2007 12:00 AM University credit cards abused Still, a dozen cases of fraud or blatant misuse have provoked worries among the... An NAU employee admitted to police that she used the university p-card to travel to and...New York UniversityUniversity credit cards abused Government agency and university expenditures are often targeted by the press. Our goal is to ensure all of our purchases are appropriately documented and will withstand public scrutiny. This protects the university, our program, and you.

13. Why do I have to have a P-Card… P-Card simplifies the purchasing process at multiple levels, allowing the university to spend less resources procuring and accounting for purchases. P-Card is easy to use and manage, and it allows us to complete business purchases quickly. Personal reimbursement cost the university approximately 4 times as much as processing the same payment via p-card. Personal reimbursement requires the same documentation as p-card with the addition of more forms, more approvals, and more processes for each reimbursement. *See the University Accountable Plan 6290 for more information: http://policy.boisestate.edu/wp-content/uploads/2011/05/6290_AccountablePlan11042010.pdf

14. Cardholder Responsibility: Managing Your P-Card Account You can complete business purchases on behalf of others, but do not loan your card or your account number to ANYONE. Check Contract Vendors before ‘shopping’ for items. Request sales tax exemption at point of sale. Obtain a detailed receipt for each purchase (original receipt is required). Reconcile your transactions in Works weekly or biweekly. Set a Google calendar reminder to complete your final reconciliation for the past billing period on the 5 th of each month. (Check with your approver for your area’s p-card due date and set your reminder accordingly) Provide a business purpose for each purchase that would be understandable to others outside of your own area. When necessary, complete a Meals And Refreshments (Events) form, Travel Authorization, Gifts and Awards form. Report any unauthorized charges immediately to your department approver or university p-card administrator. Complete your reconciliation for the past billing period by the required due date. 14

15. Non-compliance Issues If you have unauthorized purchases, do not have a receipt, or pay unnecessary sales tax you may be asked to reimburse the university. Know the rules, and avoid non-compliance. Approvers are required to notify cardholders if a purchase is not within policy or procedural guidelines.  Cardholders will be notified in writing of non-compliance issues requiring attention.  Any unresolved non-compliance issues may result in account suspension or other action. The most common non-compliance issues can be easily resolved or avoided:  If you are charged incorrectly (or for sales tax), or need a duplicate receipt contact the merchant directly for resolution. Document the time, date, and name of the representative for the merchant you speak to, and ask for date of expected resolution. Include a brief explanation with your P-Card packet detailing action you’ve taken to correct an issue.  Complete your reconciliation and submit your P-Card packet by the required due date. Notify your department approver or university administrator if there is something preventing you from completing your reconciliation on time.

16. Missing or Incomplete Receipt Missing receipts are considered a violation of P-Card policy as we are required to fully account for each purchase made with p-card. Frequent cases of missing receipts can be grounds for account suspension, or permanent deactivation. Cardholders may be asked to reimburse the university for purchases without receipt or supporting documentation. It is the cardholder’s responsibility to contact the merchant and ask for a duplicate receipt, or a detailed receipt. If the vendor can’t or won’t supply this information, cardholder should do the following:  Provide supporting documentation identifying business purpose (packing slip, packaging, description from vendor website, etc.)  Explain why the original receipt is not available (written explanation for auditor review) 16

17. What qualifies as a receipt? P-Card receipt should provide  Merchant name, and contact information, invoice or receipt number, date of sale-  Brief description of items purchased, quantity and amount paid per item with total amount paid-  Last 4 digits of the credit card number- What is considered an original receipt?  The original receipt is produced directly by the merchant. Because many of our orders are placed online, receipts are often emailed or faxed to cardholders. Who maintains the original receipts?  The department is required to maintain original receipts in a centralized location for 5 years.  Cardholders may keep copies of receipts for their records, but not the originals. 17

18. Receipts, continued…  If you pay an invoice with p-card, you should have a confirmation of payment received from the vendor which you can attach to your invoice.  If you purchase airfare online, you should have a confirmation from the airlines which includes itinerary, traveler name, cost, & last 4 digits of your account number.  If you purchase from a restaurant, obtain an itemized receipt detailing what was purchased and a cardholder signature slip stating total paid on account. Cardholder signature slip does not provide required detail and is not a complete receipt. Be sure the restaurant provides you with an itemized receipt. 18

19. Incomplete Business Purpose (or Description) Cardholders must supply a valid business purpose for all p-card purchases. For purchases of goods or services-  Be specific, relate your purchase to your specific business need.  Your description should be understandable to auditors who may not be within your particular business unit. For an event-  Who- names & titles of attendees  What- description of the event  When- date & time  Where- name of the venue  Why- detailed description of the purpose of the event-Include agenda, invitation, or any back up provided to participants. 19

20. Department Review Final Authorization of P-Card expense  The approver submits all cardholder statements and receipts for their area to the Authorizer after online approval has been completed.  The authorizer (Department Head, Director, Dean or Business Manager) must review and authorize expense via signature.  Any unresolved non-compliance should be discussed with cardholder and, in some cases reported to University P-Card Administrator or Internal Audit and Advisory Services. 20

21. Record Keeping Departments are required to maintain p-card documentation a minimum of 5 years ( cardholders may not retain original receipts). Departments may be asked to provide p-card documentation during an audit (either internal or external). This includes:  Cardholder Statement (including business purpose) with original detailed receipts and cardholder signature.  Back up documentation supporting the business purpose.  Signature form designating expense was authorized by management. 21

22. 22 P-Card Security Lost or Stolen P-Card? Lost or Stolen P-Card? Cardholders should immediately report lost, misplaced, or stolen cards directly to: Bank of America Cardholder Call Center (24/7) 1-800-300-3084. If you suspect your card has been compromised or may be lost, report it immediately! Safety online Safety online – Bank of America’s Works auto-generates email with the following sender name: Works worksnoreply@works.com> Cardholders and other Works users receive a Welcome to Works email with user name and information regarding how to login to Works. Cardholder and other Works users will also receive information email regarding reports and transactions. Questions, concerns? University P-Card Administrator: Anna Pollworth Ext 6-1795 Purchasing Compliance Specialist: Greg Kunde Ext 6-2964 Check the online P-Card site for forms, references and information http://vpfa.boisestate.edu/pcard/http://vpfa.boisestate.edu/pcard/