1. TTUHSC PURCHASING CARD PROGRAM

2. Purpose of Presentation • Program Overview • Responsibilities of Cardholder • Policies of Purchasing Card Program • Recordkeeping • Reviews

3. Program Overview • Utilizes a MasterCard credit card • Issued by the State of Texas • Allows users to purchase directly from vendors • Allows for single purchases up to $5000 and monthly card limit based on estimated usage • Prohibits some items and merchants • Transactions managed online with Pathway Net • Requires Training

4. Personal Responsibility • Proper use and protection of card • Use only for official TTUHSC allowed purchases • Keep in locked drawer or safe place • Verify proper recording of transactions to Banner FOAPs • Abuse results in disciplinary action • Liable for unauthorized purchases • Possible termination of employment • No personal credit check

5. Personal Responsibility (Cont.) • Report lost or stolen card immediately • Inform JPMorgan • MasterCard Hotline (800)890-0669 • Inform TTUHSC Purchasing Card Coordinator • Lindsey Myers (806)743-7826 ext 230 • JPMorgan is 100% liable for fraudulent use after card is reported lost or stolen

6. Obtaining a Purchasing Card • Complete Purchasing Card Application and Agreement Form • http://www.fiscal.ttuhsc.edu/busserv/pcard/forms.aspx • Complete required training module and questionnaire • http://www.fiscal.ttuhsc.edu/busserv/pcard/ • Return questionnaire to Payment Services, MS 6283 • Contact Purchasing Card Program Coordinator for additional questions • Lindsey Myers at lindsey.myers@ttuhsc.edu or (806)743-7826, ext 230

7. Upon Receipt of Purchasing Card • Card must be activated • See strip on card for instructions

8. Purchasing Guidelines • Compliance • State of Texas Policies • http://www.fiscal.ttuhsc.edu/purchasing/manual/ • TTUHSC Policies & Procedures • HSC OP 72.15 Purchasing Card Program • http://www.ttuhsc.edu/hsc/op/OP72/ • HSC OP 72.03 Direct Pay Expenditures • http://www.ttuhsc.edu/hsc/op/OP72/ • HSC OP 72.01 Purchasing Supplies, Equipment & Services • http://www.ttuhsc.edu/hsc/op/OP72/ • Departmental Rules

9. Purchasing Card VS. Purchase Order • Use Purchasing Card • If item not available through a contracted supplier • Office Supply, Medical Supply and Pharmaceutical purchases must have deviation approval from Purchasing before Purchasing item • Allowed purchases of $5,000 or less • Must use purchasing card • Use Purchase Order • Allowed purchases ofgreater than $5,000 • If vendor does not accept purchasing card • Contracts • Summus/Staples – Office Supplies – Online Ordering & Automated PO • Cardinal – Medical Supplies & Pharmaceuticals - Online Ordering & Automated PO • Fisher – Lab Supplies – Online Ordering & Automated PO • Dell – Computer Equipment

10. Allowed P-Card Purchases • Supplies (If not available through a contracted supplier) • Books & Subscriptions • Conference Registration • Flowers • Must use P-Card • Official TTUHSC functions • Employee and immediate family only • No substitution for this type of purchase • Prohibited on state accounts

11. Allowed Purchases (Cont.) • Food & Entertainment • Must be documented by one of the following: • Direct Payhttp://directpay.texastech.edu • Food & Entertainment Information Formhttp://www.fiscal.ttuhsc.edu/busserv/pcard/forms.aspx • Include Event ID or form in documentation • Prohibited on state accounts

12. Allowed Purchases (Cont.) • Hand Held Computer Devices, Books, Equipment, Supplies, etc. • Items are property of TTUHSC • An “Ownership Certification” Form is required that certifies that user has been informed that the item remains the property of TTUHSC should be attached as supporting documentation http://www.ttuhsc.edu/hsc/op/OP72/op7203g.pdf

13. Prohibited Purchases • HSC OP 72.15 Purchasing Card Program Item 2.b. http://www.ttuhsc.edu/hsc/op/OP72/ • Controlled Assets > $500 (Shipping included) • At any cost – Hand guns, rifles, machine guns, etc. • With a cost between $500 and $4,999.99 – Fax machines, sound systems, cameras, printers, TVs, video equipment, computers (including peripherals), etc. • Consulting & Professional Services • Temporary Personnel

14. Prohibited Purchases • Lease or Rental of Space • Office Supplies • Required use of Institutional Suppliers • Cellular Phones, Services & Air Time • HSC OP 72.03 Direct Pay Expenditures http://www.ttuhsc.edu/hsc/op/OP72/ • Computer Hardware, Peripherals & Software if total invoice >$500 • Gifts, Donations, Contributions & Sponsorships

15. Prohibited Purchases (Cont.) • Malpractice Insurance – School of Medicine • For State Accounts • Medical Supplies & Pharmaceuticals • Required Use of Institutional Suppliers • Medical Licenses for states other than the State of Texas • Memberships Dues • For State Accounts

16. Prohibited Purchases (Cont.) • Awards and Prizes • Internet Provider Services • Patient/Study Participant • PayPal Services • Phone Cards • Tech Express Cards • Travel Related Purchases

17. Prohibited State Purchases Alcoholic Beverages Food and Entertainment Flowers Malpractice Insurance Promotional Items Membership Dues Funds 10XXXX, 11XXXX and 12XXXX

18. Prohibited Merchant Types • Financial Institutions – Manual Cash Disbursements • Furriers & Fur Shops • Internet Service Providers - For offsite access while on travel status see page 9 of HSC OP 72.03 http://www.ttuhsc.edu/hsc/op/OP72/ • Jewelry Stores • Office Supply Stores • Package Stores, Bars, Taverns & Night Clubs • Travel Agencies, Hotels & Hotel Complex Restaurants, Airlines & Rental Car Agencies

19. Placing an Order with a P-Card • Ordering Methods • Telephone • Fax • Internet (Print screen for proof of purchase for documentation) • Itemized Invoices Required • Ask vendor for an itemized invoice • Sales tax (State of Texas) on an invoice must be credited by the vendor or personally reimbursed to TTUHSC. • Tax Exemption Forms are available at: http://www.fiscal.ttuhsc.edu/busserv/ap/collateral/Texas%20Sales%20Tax%20Exempt%20Letter.pdf

20. Placing an Order (Cont.) • Departmental Reference Number • Request vendor to use the form “CCStop _ _ _ _ Last Name” for the reference number • CC means Credit Card • Stop _ _ _ _ is the departmental mail stop • Or RM _ _ _ _ for Amarillo, El Paso or Odessa • Last Name is the credit card holder’s last name

21. Placing an Order (Cont.) • Ship to Address • TTUHSC ATTN: CCStop _ _ _ _ Last Name 3601 4th Street, Stop _ _ _ _ Lubbock, Texas 79430 • For Regional Centers Use Address and Room # instead of Stop #

22. Transaction Log http://www.fiscal.ttuhsc.edu/busserv/pcard/forms.aspx • Available, but not required • If log is maintained - required information: • Credit Card Number • Card Holder’s Name • Banner Default FOP • Transaction Date • Merchant Name • Amount • Must be entered in log in the same order as the Credit Card Statement • Credits or returns must also be logged and included in documentation • If Transaction Log is not used, each receipt or invoice must reflect the required information to support the purchase as a legitimate state expense

23. Supporting Documentation • All forms of supporting documentation must be included • Cash Register Receipts, Credit Card Receipts, Paid Invoices or Packing Slips • Meeting Agenda and List of Attendees • Food & Entertainment Attachment • Credits and returns • Screen Print of Internet Order

24. Supporting Documentation (Cont.) • Required Information on Invoice or Receipt • Last four numbers of the credit card • Date • Merchant Name • Amount • Sales Tax (If applicable) • Tape small receipts on documentation form or blank sheet of paper • Do not place tape on top of any of the above information

25. Additional Documentation • Flowers • If official function • Date and time • If illness or death • Name of employee • Name of employee’s immediate family member and relationship to employee

26. Additional Documentation (Cont.) • Hazardous Materials • Fill out the online Materials Ordering Form • http://www.ttuhsc.edu/admin/safety/ • Attach approved form to documentation

27. Food and Entertainment • Not allowed on State Funds • Permitted on Local Funds unless restricted by account • Must establish business purpose • Proper documentation is required • Must include an Event ID or Food & Entertainment Information Form

28. Food & Entertainment Documentation • Follow IRS guidelines • Documentation for: • Amount • Time, place and description of entertainment • Business purpose and benefit to TTUHSC and the State of Texas • Business relationship of person(s) entertained • Name, title and occupation • Include Event ID form from Direct Pay System

29. Missing Receipts • Cardholder must attempt to get a copy of the original documentation • If unsuccessful • Three attempts to get copy must be documented • Missing Receipts Form must be completed • http://www.fiscal.ttuhsc.edu/busserv/pcard/forms.aspx • Account Manager/Supervisor signature required • Keep form with other documentation • Missing receipts should be a rare occurrence and will be carefully scrutinized in reviews

30. Monthly Statement • Bank sends statement to cardholder or cardholder can download from Pathway Net • Lists all transactions • Cardholder must verify that all transactions are legitimate • Match each transaction on statement to your receipts • Match credit card statement to your Cognos Operating Transaction reports • Place receipts and any other required documentation behind your statement • Receipts and required documentation must be in the same order as transactions appear on the credit card statement • Statement must be signed by cardholder and account manager, supervisor or department administrator every month

31. Monthly Statement (Cont.) • HSC Payment Services will pay the bill then the transactions will be expensed to your departmental account • Transactions are reflected in your Cognos Operating Transaction reports • Transaction ID - CHXXXXXX • Transaction description – statement date, first six letters of the cardholder’s name and merchant name • All transaction lines for each cardholder added together should equal the statement total

32. Adjustments • Pathway Nethttp://www.fiscal.ttuhsc.edu/busserv/pcard/ • Re-allocate transactions for current month to Banner FOAP if different than defaults • If you re-allocate a transaction, note the new information on the actual receipts for ease in transaction identification • Transaction shows up in Pathway Net two to three business days after purchase • Can avoid Cost Transfer if reallocated before statement close date • Close date for statements to load to Banner is 10 - 14 calendar days after the fifth of the month following the purchases

33. Adjustments to a Prior Month • Should be a rare occurrence due to the ability to re-allocate transactions in Pathway Net before statement close date • Submit a Cost Transfer Form to Accounting Services MS 6274 for approval • Account Manager signature is required • Reference document number that recorded original transaction and attach a copy of the Cognos Operation Transactions report showing the expense • Time limit of 60 days after original transaction

34. Disputed Items • Call vendor first – resolve with them • If item not resolved with vendor, call JPMorgan – they will set up a conference call to resolve the dispute • (888)297-0768 • If dispute is not resolved, flag the transaction in Pathway Net, complete and print the online form in Pathway Net and fax to JPMorgan (847)931-8861 and TTUHSC Payment Services (806)743-7826 • File Dispute Form with your documentation for that month and notify your account manager

35. Purchasing Card Cancellation • Cut card in half and return it to the Purchasing Card Coordinator • Send a written card cancellation request to the Purchasing Card Coordinator

36. Terminated Employees • Account Manager has the obligation to reclaim the card from the terminated employee • Fraudulent charges incurred between employee termination date and card cancellation date do not have liability coverage • Call Purchasing Card Coordinator within two days: Lindsey Myers (806)743-7826, ext 230 or email at lindsey.myers@ttuhsc.edu • Card must be returned with the transaction documentation since the last review date to the Purchasing Card Coordinator

37. Record Keeping • Simple system • 3-Ring binder • File Folder • One binder or folder for each card identified by cardholder name or last four digits of the card • Monthly tabs • Statement • Transaction Log if maintained • Receipts, along with all supporting documentation, in same order as transactions on statement

38. Records Retention Period • Standard Retention Period • Current year plus 3 previous fiscal years • Grant & Contract Accounts • Life of Grant or Contract, plus 3 years • Terminated employees • Must be reviewed as soon as card is cancelled • Standard retention period

39. Reviews and Spot Checks • Spot Checks • Previous day’s transactions reviewed daily • Reviews • Transactions Logs or required documentation • Supporting invoices and receipts • Required signatures on statements • Compliance with policies and rules • Report of Findings • Emailed notice to cardholder • Emailed notice to account manager if in noncompliance

40. Procurement Card Contacts • Program Coordinator • Lindsey Myers Email: lindsey.myers@ttuhsc.edu Phone: (806)743-7826, ext 230 Fax: (806)743-7847 MS: 6283 • Director of Payment Services • Celeste Kulinski Email: celeste.kulinski@ttuhsc.edu Phone: (806)743-7826, ext 231

41. Procurement Card Contacts (Cont.) • Director of Purchasing • Don Sarchet Email: don.sarchet@ttuhsc.edu Phone: (806)743-2190 • JPMorgan • Customer Service Phone: (800)890-0669

42. Purchasing Card Application and Training Questionnaire • Go to the Purchasing Card site and click on “Forms” http://www.fiscal.ttuhsc.edu/busserv/pcard/ • Applications • Select “Purchasing Card Application and Agreement” • Print and complete the form including all cardholder information, default FOP and Account Manager signature • Training Questionnaire: • Select “Purchasing Card Training Questionnaire” • Print and complete the quiz with signature on second page • Completed forms should be mailed to Payment Services, MS 6283 • All forms will be processed by the Program Coordinator • If a card is requested it will be available in about two weeks