P-Card Workshop Business Services

1. P-Card WorkshopBusiness Services Julie Peterson, Assistant Director Reporting & Compliance Kim Fendley Accountant IV Center for University Learning Workshop 4-26-08

2. What is a P-Card? • Visa Credit Card issued by Bank of America • Property of State of Georgia • Can only be used for State business • Issued only in Individual’s name • Cannot be in the name of Department • Does not affect personal credit • Works® Payment Manager supports program Center for University Learning Workshop 4-26-08

3. P-Card Program • Consolidation of the program • Works Administration • Training • Audit Center for University Learning Workshop 4-26-08

4. Revised Policies & Procedures • Link • http://www.kennesaw.edu/businessservices/procure_p_card_policy_rev_11_16_07.doc • Read prior to class Center for University Learning Workshop 4-26-08

5. What’s Changed? • More detailed list of prohibited purchases • Need proof of receipt and proof of delivery (packing slips) • Allowing others to use card – now a major violation • 3 minor violations of same type or 9 minor violations of any type – results in major violation • Major Violation • Immediate temporary suspension of Cardholder’s privileges Center for University Learning Workshop 4-26-08

6. DOAS Changes • Department of Administrative Services (DOAS) administers the P-Card program for the State of Georgia • Revised policies again January 8, 2008 • No travel or food on P-Card except for officially sanctioned student activity – must have prior approval from DOAS • No travel for other non-employees such as candidates, guest speakers, athletic recruits • No purchases from agency funds unless approved by P-Card Administrator Center for University Learning Workshop 4-26-08

7. House Bill 1113 • The new legislation makes it unlawful for anyone to obtain goods or services for personal use (theirs or someone else’s), whether purchased through purchase orders, government contracts, credit cards, charge cards, or debit cards. • Employees requiring a purchasing card will be subject to a criminal background check as well as a credit check prior to receiving a purchasing card. • If the Governor signs this bill, it becomes effective July 1, 2008. The current version of HB1113 may be viewed at:http://www.legis.state.ga.us/legis/2007_08/sum/hb1113.htm Center for University Learning Workshop 4-26-08

8. Changes Enacted Into Law • No purchases over $5,000 on the P-Card (i.e., no transaction splitting) • No gift cards, alcohol, or personal use items • No cash advances or rebates • HB1113 also makes it unlawful for anyone to use a travel advance from public funds for non-business purposes, or to submit or approve a fraudulent request for reimbursement of expenses. Center for University Learning Workshop 4-26-08

9. Value less than $500 Guilty of Misdemeanor • Punishable by not more than 12 months’ imprisonment and fine not to exceed $5,000 • Immediate termination of state employment • Restitution to the state equal to amount of unlawful purchases, plus interest to be assessed at a rate of 12 percent per year (calculated from date unlawful purchase was made) Center for University Learning Workshop 4-26-08

10. Value of $500 or more Guilty of Felony • Not less than one nor more than 20 years’ imprisonment and fine not to exceed $50,000 or triple the amount of unlawful purchases, whichever is greater • Immediate termination of state employment • Restitution to the state equal to amount of unlawful purchases, plus interest to be assessed at a rate of 12 percent per year (calculated from date unlawful purchase was made) Center for University Learning Workshop 4-26-08

11. Transaction & Monthly Limits • Transaction Limit • Each transaction is limited to $4,999.99 • Monthly limit is based on needs of the cardholder • Typically $10,000 • P-Card Administrator will analyze spending limits annually (reduce limits as needed) • Inactive accounts will be deactivated per DOAS guidelines Center for University Learning Workshop 4-26-08

12. P-Card Purchases • For purchases under $5,000 • Annual expenditures per vendor should not exceed $5,000. Auditors view this as purchase splitting to avoid bids. • Already exceeded $5,000 w/vendor this year? • Submit AGS request estimating total for remainder of year along with memo indicating bid will be sought for FY09 • All purchases should comply with DOAS purchasing guidelines Center for University Learning Workshop 4-26-08

13. Prohibited Purchases • Employee travel/meals • Sales Tax • Purchases that will be reimbursed by Foundation • Purchases for personal use by any employee (gifts, meals, cards, flowers, etc) • Cash advances • Alcoholic beverages • Gifts, Gift Cards, and Calling Cards Center for University Learning Workshop 4-26-08

14. Prohibited Purchases • Hazardous Materials (some department exceptions with Environmental Health & Safety approval) • Chamber of Commerce Memberships • Entertainment • Automatic Renewals (monthly, annually) • Services • Decorations • Greeting Cards, Plants, Flowers Center for University Learning Workshop 4-26-08

15. Fund Types • State Appropriations, tuition, auxiliary (athletics, bookstore, health clinic, & residence life), student activity fees, grants & contracts, and agency funds • Prohibited purchases for employees applies no matter what funding source is • Food for students may be allowed from these funding sources • Check with the P-Card Administrator prior to making purchase; requires DOAS approval • Department-specific training upon request Center for University Learning Workshop 4-26-08

16. Cardholder’s Responsibilities • State business only • Abide by State Purchasing Guidelines & KSU Policy • Purchases made by Cardholder only, not other employees • Secure the card, card number, and transaction detail • Adhere to card limit restrictions • Inspect all orders and report any discrepancy to vendor immediately • Reconcile sales slips and receipts; add description for each item • Approve monthly P-Card Statements manually • Document attempts to resolve disputes with vendors Center for University Learning Workshop 4-26-08

17. Cardholder’s Responsibilities (cont’d) • Ensure that all credits are received and applied to the card • Report lost or stolen cards to Bank of America IMMEDIATELY! • Notify P-Card Administrator of lost or stolen card • Know the approved types of vendors that the card can be used for • Contact Administrator if vendor that takes MasterCard®/Visa® does not accept Purchasing Card • Never accept CASH for refunds or discounts • Sign off on transactions in Works –if no Business Manager (avoid limit problems) Center for University Learning Workshop 4-26-08

18. Cardholder’s Responsibilities (cont’d) • Never use card for employee travel, entertainment, or cash advance • Do not purchase restricted items • Follow appropriate purchasing or payment procedures • Do not split transactions to avoid the Single Transaction Limit (STL) • Notify P-Card Administrator or Internal Audit if directed by supervisor to execute disallowed transactions (without retribution) Center for University Learning Workshop 4-26-08

19. P-Card Approvers Responsibility • Review P-Card Statements to ensure: • Valid receipt for each charge –details, not summary • Valid business purpose for each charge should be indicated on attached receipts/documentation • P-Cardholder signature • Approver’s signature indicates that the above tasks have been completed. Center for University Learning Workshop 4-26-08

20. Question • Several faculty members in the department will be attending a conference in Wisconsin in January. What expenses related to the conference can be paid for with the P-Card? • Registration only • No meals, airfare, lodging, or rental car Center for University Learning Workshop 4-26-08

21. Name/Profile Changes • What if my name changes or I have some other change to my profile? • Submit a Purchasing Card Request & Change Form to the P-Card Administrator • Contact the Administrator with questions Center for University Learning Workshop 4-26-08

22. Acceptable Receipts • Receipt should include: • Name of vendor • Date of Sale • Purchases made (include description if not on receipt) • Total amount of transaction (including adjustments) • Amount paid and method of payment • Be sure to indicate business purpose • Acceptable receipts include: • Printed receipts • Electronic receipts • Invoices • Statements (if itemized) • Need acceptable proof of delivery of goods Center for University Learning Workshop 4-26-08

23. Missing Receipts • Contact vendor or merchant for duplicate • Cardholder should complete missing receipt form and attach to statement • Cardholder & Supervisor must sign form • http://www.kennesaw.edu/businessservices/procure_form_pcard_missing_receipt.doc Center for University Learning Workshop 4-26-08

24. Transactions Requiring Special Approval/Documentation • Computer-related purchases http://www.kennesaw.edu/techpurchases/ • Multimedia equipment http://www.kennesaw.edu/techpurchases/ • Individual Memberships & Dues http://www.kennesaw.edu/businessservices/ap_form_membership_dues.doc • Grant Purchases http://www.kennesaw.edu/budgets/grants/pagf-prior%20pcard%20approval%20grants.doc • Furniture Purchases • Contact Mary Monsour at mmonsour@kennesaw.edu Center for University Learning Workshop 4-26-08

25. Question • Your supervisor wants you to pay for his/her conference registration with your P-Card. The registration is done online. There is a flat $300 for registration, $30 for networking dinner, and $40 for a tour of the local crafts/artisans shops. Which payments are allowed on the P-Card? • $300 for registration • Networking dinner may be reimbursed if it meets travel guidelines; not allowed on P-Card • Tour of local shops is personal in nature; not allowed on P-Card Center for University Learning Workshop 4-26-08

26. Monthly Statement • Statement must be submitted to Business Services by 5 PM on the last business day of the month. • If received after this date/time, cardholder will receive violation • The statement consists of the following documents that can be printed from WORKS™: • Memo Statement (top) • Payable Allocation (second) • Supporting Documentation • Additional Purchase Authorization • Cardholder and Immediate Supervisor Signatures Center for University Learning Workshop 4-26-08

27. Memo Statement Center for University Learning Workshop 4-26-08

28. Payable Allocation Center for University Learning Workshop 4-26-08

29. RECEIPT - Where are the details? • Receipts should have more detailed information Center for University Learning Workshop 4-26-08

30. Monthly Statement (cont’d) • Mail or deliver your statement to “Purchasing Card Administration”, Mail Drop 3501. • Make sure to give your statement plenty of time to arrive by the deadline. • If your department has a Business Affairs Manager, please follow their individual departmental deadlines. Center for University Learning Workshop 4-26-08

31. Errors and Disputes • Problems with merchandise delivery or incorrect billing may occasionally arise. It is the Cardholder’s responsibility to initiate action to resolve all such issues. • Ask for credits to Purchasing Card only! • DO NOT accept cash for credits and adjustments! • If Cardholder cannot resolve, contact P-Card Administrator for assistance. • Complete Bank of America Dispute Form Center for University Learning Workshop 4-26-08

32. Lost or Stolen Cards • Contact the P-Card Administrator • Card can be temporarily deactivated • Cannot be used during this period • Can be easily reactivated or deactivated permanently Center for University Learning Workshop 4-26-08

33. Question • Your department is decorating your office door for the staff council contest for the holidays. What supplies can you purchase with your P-Card for the office door? • None • Purchase is personal in nature Center for University Learning Workshop 4-26-08

34. Violations • “The Department of Administrative Services, State Purchasing, expects every individual Cardholder to strictly adhere to the policies and guidelines governing use of the State Purchasing Card. Failure to do so may result in disciplinary action up to and including termination of employment. Additionally, such failure could result in prosecution to the fullest extent of the law, including financial restitution and criminal prosecution.” Center for University Learning Workshop 4-26-08

35. Minor Violations • Minor violations are instances that are “accidental” and without willful intent. Examples include, but are not limited to: • Using the wrong credit card when doing personal shopping and usually includes immediate discovery and notification of the Purchasing Card Program Administrator/Coordinator as well as restitution • Purchases with the card that should be made through the KSU requisition system or some other means • Failure to reconcile and return the statement (manually or electronically) in a timely manner • Purchasing items to be reimbursed from another entity such as the Foundation • Sales tax in one P-Card statement over $10 • Not obtaining prior approvals as described in Section 2.4 of Policy and Procedures Center for University Learning Workshop 4-26-08

36. Minor Violations - Consequences • Cardholders will receive a minor violation in the form of a memo from the P-Card Administrator. • A copy of the violation letter will be sent to the Cardholder’s immediate Supervisor, Department Head, and Business Affairs Manager (if applicable). Any action required by the violation letter should be handled on a priority basis. • An accumulation of three (3) minor violations of the same type or nine (9) minor violations of any type in a 12 month period will result in a major violation being issued. Center for University Learning Workshop 4-26-08

37. Major Violations • Major violations are instances that show “willful intent” to disregard established policy and procedures. Examples include but are not limited to: • Purchasing unauthorized or restricted items • Splitting orders to avoid the single transaction limit • Allowing others to use the card • Knowingly making personal purchases • Accumulating minor violations as defined above Center for University Learning Workshop 4-26-08

38. Major Violations - Consequences • Any major violation will result in immediate temporary suspension of the Cardholder’s privileges and notification to the department. • If deemed appropriate, Bank of America, KSU Public Safety, and KSU Office of Internal Audit will also be notified. • If no fraud or theft is involved, reinstatement of the P-Card privileges can be made after 30 days at the request of the Cardholder’s Supervisor & final approval of the COO. • If a second suspension is required, it will be permanent. Center for University Learning Workshop 4-26-08

39. Georgia Code • Section O.C.G.A. 50-5-79 of the Georgia Code: If any official of such department, institution, or agency willfully purchases or causes to be purchased any supplies, materials, or equipment contrary to …the rules and regulations…such official shall be personally liable for the cost thereof; and, if such supplies, materials, or equipment are so unlawfully purchased and paid for out of state funds, the amount thereof may be recovered in the name of the State in an appropriate action instituted thereof. Center for University Learning Workshop 4-26-08

40. Question • There is a scholarship fundraiser hosted by the KSU Foundation. They are selling single tickets for $100 and tables of 12 for $1,000. There are additional amounts for varying sponsorship levels. Can the P-Card be used for single tickets? Tables? Sponsorships? • No; department Staff must use personal funds for these types of purchases Center for University Learning Workshop 4-26-08

41. P-Card Audits • Reporting & Compliance – monthly • Accountant I performs initial review of statements • Accountant IV performs secondary audit and sends violation letters • Violation letters sent to Cardholder with copy to Supervisor, Department Head, and Business Manager (if applicable) • State Financial Auditors – annually • Internal Audit – completed Center for University Learning Workshop 4-26-08

42. P-Card Audits (Cont’d) • State Performance Audit • https://www.audits.state.ga.us/rptSearch/report/7145 • Public Reaction • Governor’s Reaction • BOR Internal Auditors–FY2007 Audit completed Center for University Learning Workshop 4-26-08

43. P-Card Administration Contact • Stephanie Frankovich Accountant IV (770) 499-3672 (Direct) (770) 423-6474 (Fax) sfrankov@Kennesaw.edu Center for University Learning Workshop 4-26-08

44. Questions? Center for University Learning Workshop 4-26-08