PURCHASING/ PROCUREMENT CARD

1. PURCHASING/PROCUREMENT CARD Presenter : Kathleen Maertzig- Sr. Systems Administrator Date: October 28, 2003 PA-BUG Conference 2003

2. DREXEL UNIVERSITY & DREXEL UNIVERSITY COLLEGE OF MEDICINE • Statistics • 5,000 Employees • 550 Million $ Budgets • 850 Active Research Projects • Real Estate Management • Physician Practices

3. Stats (Continued) • Drexel University – 350 cardholders • $927,000.00/monthly • Drexel University College of Medicine • - 145 Cardholders • $403,000.00/monthly

4. VISA JP Morgan Chase www.PaymentNet.com

5. Benefits • Reduces paperwork: requisitions, check requests, and purchase orders • Reduces petty cash funds, and cash exposure (especially teams’ travel) • Personal funds are no longer needed for purchases • Reduces processing for cardholder, Purchasing and Accounts Payable • Consolidated invoicing for a single monthly payment saves time, stationery, checks, postage and filing

6. DISADVANTAGES • No way to check Insufficient Funding • No way to encumber funds • No way to track commodity volumes • Delay in items being booked to the budget

7. How Does DU Purchasing Card Work? • Much like a personal credit card • University liability • Print statement of account and verify • Data is imported into Banner Finance on a monthly basis as a journal voucher

8. Good Uses for Purchasing Card • Essentially, anything you currently use small value purchase orders, check requests, petty cash and in some cases, regular purchase orders • Dues, memberships, licenses, application fees • Conference and seminar registration fees • Stamps, postage • Books, publications, periodicals, subscriptions, reprints, newsletters, videos and audio recordings

9. Good Uses – continued • Recurring payables (cell phones, internet access, water, etc.) • Advertisements • Interlibrary loans to external libraries • Photo, art, shop and lab supplies • Miscellaneous supplies - low dollar value • Computer supplies and software • Office Supplies • Airline, hotel and rental car reservations for University related business travel

10. Restrictions • Personal charges, even with the intent of reimbursing the University • Any transaction that exceeds your available budget. • Traveler’s Checks or cash withdrawals from ATM machines. • On Campus purchases of any sort or for services that can be performed by another on-campus department

11. Restrictions – cont. • Any purchase that would require Facilities Services to deliver, install or engineer the space in which the item is going • Purchases presenting significant potential risk or exposure to liability for the University • Any contract, agreement or arrangements whereby the University is required to sign any type of contract or agreement • Any item that exceeds your transaction limit (generally $2,000.00) or would cause your monthly limit to be exceeded (generally $7,500.00). • Alcoholic beverages (very limited exceptions)

12. Safeguards • Cardholders sign agreement • Dean and/or Provost approves cardholder application • Purchases are tracked to cardholder • Statement of Account reviewed for appropriateness monthly • Purchasing, Comptroller’s Office, Internal Audit have access to all transactions

13. Card Security • Use of card by anyone other than the cardholder is prohibited • Secure the card and account number at all times • Cardholders are reminded that they are responsible for all charges to their cards.

14. What if Your Card is Lost or Stolen? • Immediately contact JP Morgan Chase at 1-800-270-7760 • Contact the Purchasing Card Administrator • Contact the Police • Dispute the item online in PaymentNet

15. Code of Ethics • Give vendors equal consideration • Do not auction prices • Do not accept gifts or gratuities • Conflict of Interest Statement is signed by each cardholder • Avoid appearance of conflict of interest

16. Prices • Use Preferred Vendors to receive negotiated benefits • Vendors must not charge higher prices for credit card purchases • Indicate this is a Drexel University Purchase • Indicate purchases are exempt from state sales tax

17. Accounting and Record Keeping • www.paymentnet.com • Reallocate charges by the 26th of the month • Enter description of purpose or intent • Print statement of account and attach receipts • Approver signs statement with receipts attached • Send original statement without receipts to purchasing • Travel – If as part of travel there were out of pocket expenses; travel expense report required; otherwise, none needed.

18. Central Location for Filing • Cardholder is responsible for gathering receipts and attaching them to statement each month • Approver must review appropriateness and sign • Cardholder must file in a central location • Reallocation can be done by cardholder or approver

19. Budget Charges • Card is assigned the Departmental account cost center (fund/org), as the default; charges will be posted there if you do not reassign them via PaymentNetTM Software. • Accounting has been notified NOT to reallocate any purchasing related charges. • Charges are uploaded into Banner Finance monthly as a journal voucher

20. Disputed Transactions • Resolve any discrepancies directly with the vendor and request credits or additional charges generated for the next billing cycle • If unable to resolve, the cardholder must fully document the situation using the PaymentNetTM On-Line Dispute Process • Claims must be filed within 60 days of the original purchase, acknowledged by JPMorgan Chase within 30 days, and resolved within 90 days.