UO Procurement Card (PCard) Policy and Procedures Training

1. UO Procurement Card (PCard) Policy and Procedures Training Purchasing and Contracting Services 09/19/2013

2. OVERVIEW • Program Background • Program Advantages • Terms and Definitions • Applying for a PCard • Making a Purchase using the PCard • Authorized PCard Uses • Non-Chargeable Account Codes/Purchases • Purchase Documentation • Reconciliation of Charge Receipts

3. OVERVIEW (cont.) • Termination/Separation - PCard User, Card Custodian or BA • Adding/Changing- PCard User, Card Custodian or BA • Account Information Update • Problems with your PCard • Billing Errors • Transaction Disputes • PCard Control and Security • Monthly Transaction Review • PCard Violations/Sanctions • Current Contacts for PCard Inquires

4. PROGRAM BACKGROUND • OUS (Oregon University System) has established a PCard Program. • The PCard Program is administered by the OUS and is implemented at the institution level. • U.S. Bank issues PCards to UO campus departments. Each PCard is assigned to a department Card Custodian. • The PCards may be used to purchase goods and non-tax reportable services (with exceptions) for the institution. • PCard purchases shall be made in accordance with established purchasing rules and policies. • Policy OUS – 2/1/08, UO – 7/1/08, updated 9/16/13.

5. PROGRAM ADVANTAGES • This program provides for the rapid acquisition of primarily low dollar items, (less than 5K or 10K for Team Cards). • Is designed to promote purchasing efficiency, flexibility, and convenience. • Reduced time, paperwork and handling costs along with a more rapid and efficient receipt of goods. • Traditional requisition payment cycle is greatly reduced.

6. TERMS AND DEFINITIONS Card User Card User: An individual authorized to procure goods and/or services with a PCard of a department or division of an institution. Specific PCard Program responsibilities include but not limited to: Specific Card User responsibilities: • Checks PCard in and out via written documentation. (Not required for PCards with a single authorized Card User.) • Secures the PCard and account number when in Card User’s possession. • Makes PCard purchases in compliance with Program Policy and Procedures. NOTE: The Budget Authority cannot be a Card User.

7. TERMS AND DEFINITIONS(cont.) Card Custodian Card Custodian: The individual who is responsible for training department staff, safeguarding the PCard of a department or division of an institution, maintaining complete and accurate records of PCard use, and preparing reconciliations between the documents supporting charges on the PCard and the statement of charges received from the PCard vendor in compliance with institution and OUS policies. Card Custodian is not an automatic Card User. Specific Card Custodian responsibilities: • Manages physical custody and security of the PCard and account number. • Ensures cards with multiple Card Users are checked in and out via Multiple User Log. • Maintains complete transaction records. • Reconciles monthly statement of PCard transactions. • Provides signature on monthly statement indicating final approval of monthly reconciliation.

8. TERMS AND DEFINITIONS(cont.) Card Custodian Specific Card Custodian responsibilities cont: • Trains all authorized Card Users. • Maintain records of department training. • Notifies Program Administrator of any changes to Authorization Agreement. • Resolves problem purchases/disputes. • Communicates all necessary information with Card Users including violations. • Ensures compliance with UO PCard Policy and Procedures. • Monitor department PCard transactions for appropriate use and potential fraudulent activity. • Journal Voucher all expenditures quarterly (recommend monthly) to appropriate account from 28995 (39546 for Team Card).

9. TERMS AND DEFINITIONS(cont.) Budget Authority Budget AuthorityA UO dean, director, division or department head who is responsible for the budget of the department or division of UO that has authorized one or more PCards for the purchase of appropriate goods and/or services. Budget Authority cannot be a Card User. Budget Authorities are accountable for the following: Specific Budget Authority responsibilities: • Making sound business decisions based on financial resources allocated to the unit. • Ensuring that financial matters are conducted in accordance with sound business practice, generally accepted accounting principles, and in compliance with applicable laws, regulations and procedures. NOTE: The Budget Authority cannot be a Card User.

10. TERMS AND DEFINITIONS(cont.) Budget Authority Specific Budget Authority responsibilities cont: • Maintaining and reviewing adequate records that document decision making, in accordance with Program requirements and good judgment. • Ensuring that any delegation of authority, if allowed, is judiciously made, formally documented and communicated to the appropriate offices at the UO. • Specific Program responsibilities include but not limited to: • a. Authorizes by signature initial PCard application. • b. Identifies Card Custodian and Card Users. • c. Reviews Card Custodian PCard transactions (unless delegated). • d. Reviews monthly reconciliation and monthly statement and signs the monthly statement. • e. Ensures overall compliance with Program policy and procedures.

11. TERMS AND DEFINITIONS(cont.) Program Administrator PCard Program Administrator: The individual who is responsible for the administration of the Program of an OUS institution/the Chancellor’s office. Program Administrator is responsible for ensuring that the institution PCard policies are compliant with the OUS policy, that the policies established by the institution are implemented, and that the PCard procedures are being followed. Delegates Program duties as necessary.

12. TERMS AND DEFINITIONS(cont.) • Statement of Account: This is the monthly listing of all account transactions, issued by the bank directly to the Card Custodian. • Single Purchase Limit: A dollar limitation for an individual purchasing transaction,(5K currently or $10K for Team Cards). Transactions cannot be split to avoid this limit. • Credit Limit:A dollar limit on credit card charges per billing cycle established for each PCard. This dollar limit may vary from card to card. • Vendor: A company from which a cardholder is purchasing material(s) and/or minor equipment.

13. APPLYING FOR A PCARD • Submit a **NEW** PCS PCard Intake Sheet to pcard@uoregon.edu requesting a new account. • In response to the request, PCS will provide VISA Card application. • The application is completed, read, and signed by the Card Custodian and approved by the Budget Authority.

14. APPLYING FOR A PCARD(CONT.) • Return original application to PCS via campus mail. PCS submits the application to U.S. Bank requesting a PCard. • PCS will notify you when your PCard arrives, usually seven business days. • The Card Custodian needs to personally pick up the PCard and sign to verify that they received the PCard.

15. APPLYING FOR A PCARD(CONT.) Authorized Card Users: • The Budget Authority designates the Card Custodian and authorized Card Users on a PCard Authorization Agreement signed by all involved in the account. • **NEW** PCard Authorization Agreement – check all of the boxes that apply to the role of each individual involved in the account. • Submit the fully signed PCard Authorization Agreement along with a PCS PCard Intake Sheet to PCS via email to pcard@uoregon.edu. • The PCard Program Administrator must approve the PCard Authorization Agreement before it is effective.

16. MAKING A PURCHASE • Used for purchases of goods less than $5,000 or $10,000 for Team Cards. • NOTE: Although the purchase amount will not mandate the solicitation of competitive quotes, it is campus policy to seek competition for the lowest price and best value when ever you make a purchase. • Backordering of Goods: • Backordering is allowed as long as charges for items do not occur until the goods are shipped. • Goods may be charged to the PCard except as prohibited by current UO Purchasing and Contracting OAR’s, OUS and UO PCard Policy and Procedures.

17. AUTHORIZED USES • The following is a partial listing of typical uses: • Reference materials such as books, particularly those purchased from another country due to exchange considerations. • Software. • Common Carrier travel fares. • Conference hotel lodging (deposits only). • Car rental reservations (not payments).

18. AUTHORIZED USES(CONT.) • Office supplies. • Teaching and research supplies. • Materials for minor repairs (Not the servicing/repairing itself). • Non capitalized furniture/equipment. • Conference registration (not entertainment or food). • Allowable dues and memberships. • Subscriptions to newspapers, journals and periodicals.

19. NON-CHARGABLE ACCOUNT CODES - TRAVEL • Use of the PCard is PROHIBITED for travel costs (39000 account codes) with the exception of conference hotel lodging (deposits only), rental car reservations and common carrier charges, such as airline, bus and train fares (does not include taxis and airport shuttles). Prohibited Account Codes: • 393xx-398xx: Travel. • 28612: Hosting Groups and Guests. • 28610: Entertainment. • The PCard may not be used for food purchases or at restaurants. • The PCard may not be used to purchase gas if it is associated with travel; however, it MAY be used to purchase gas for operating equipment.

20. NON-CHARGABLE ACCOUNT CODES – CAPITAL OUTLAY • For other than library purchases (account code 40190), use of a PCard is PROHIBITED for capital outlay (40xxx account codes) due to fixed asset inventory recording requirements. • NOTE: **NEW** Account code 40199 Construction in Progress (Equipment) – may use PCard but must complete “Intent to Construct Capital Equipment” and submit to Business Affairs and Purchasing and Contracting Services prior to purchase – see Section 3.4.3 of the UO PCard Policy. • High Risk items must be reported to Property Control.

21. NON-CHARGABLE ACCOUNT CODES – 1099 REPORTABLE • Use of a PCard is PROHIBITED for the following account codes due to 1099 and W-2 tax reporting requirements. • These account codes are for tax reportable services that are performed by an outside vendor – see Section 3.4.4 of the UO PCard Policy. These services are made up of labor cost and/or labor and material cost. • NOTE: **NEW** Blanket Exemption for certain tax reportable transactions– Section 3.4.4 Note 1 of the UO PCard Policy. • Incorporated Vendor Exception List.

22. NON-CHARGABLE ACCOUNT CODES – 1099 REPORTABLE (cont.) • Moving Costs (of new employee’s) • Maintenance and repairs (23501, 23502, 23503, 23504, 23510, 23511, 23512, 23530 and 23531). • Fees and Services performed by others (245XX-25199 account codes)(1099 reportable). • Purchases involving the following account codes: • 20168 and 20169 Awards and Prizes Guest speakers or employee recognition (reportable).

23. NON-CHARGABLE ACCOUNT CODES – 1099 REPORTABLE (cont.) • 21008 Animal Care. • 21070 Agricultural Services. • 23080 Utilities/Maintenance - Non-Employee. • 24001and 24002 Equipment - Rental and Leases - includes tables at conferences and exhibition displays. • 24050 Land - Rental and Leases. • 24051 Building - Rental and Leases. • 24052 Housing Rentals - Non-Employee.

24. NON-CHARGABLE ACCOUNT CODES – 1099 REPORTABLE (cont.) • 24053 Storage Rentals/Fees - Non-Employee. • 28544 Storage of Household Goods - Non-Employee. • 24602 Duplicating and Copying. • 24606 Printing and Publishing. • 24604 Developing Film. • 24052 Housing Rentals - Non-Employee.

25. NON-CHARGABLE ACCOUNT CODES – OTHER PROHIBITED ITEMS • Flower Purchases. • 28610 Entertainment. • 28612 Hosting Groups and Guests (this includes hotels or food). • Gifts (Gift Certificates). • Personal Purchases. • Alcohol. • Unsure or Special Circumstance? • If you are unsure about whether you should charge a certain item on your card or you have a special circumstance, please call the PCard Program Administrator before you make the purchase.

26. TEAM CARD • Allowable Charges: • Food Purchases for team: • Restaurants; Grocery Stores; Catering. • Lodging purchases for team: • Individual lodging rooms; Hotel conference rooms • Payment for approved team activities • Vehicle Expenses: • Gasoline; taxis; shuttles; car/van rental • Unallowable Charges: • No individual travel expenses or non-business reimbursable expenses. • NO PERSONAL CHARGES.

27. TEAM CARD (cont.) • Extended Physical Custody of Team Card: • Team Card may remain with Card User for the duration of an event. • Other than additional allowable purchases and rules regarding custody of the PCard during team events – ALL OTHER PCARD RULES APPLY – including: • Security of PCard. • Authorized Card Users of PCard. • Multiple User Log. • Documentation of Purchases.

28. PURCHASE DOCUMENTATION - GENERAL The Custodian secures and retains documentation to support PCard purchases and business purpose (if not clear). Examples of documentation Sales slips Order forms Receiving reports Reconciliation records Invoices Cash register receipts Minimum Information Date of Purchase Vendor Name Item Description Amount Shipping Address Name of Card User Charge slips that do not itemize are inadequate documentation. You may write in the items on a non-itemized receipt.

29. PURCHASE DOCUMENTATION – NO SUPPORTING DOCUMENTATION When no other documentation exists, such as when making a telephone purchase, the following information shall be maintained on a purchasing log to support the transaction: • Date of purchase. • Vendor name. • Item description. • Amount. • Name of purchaser/authorized Card User. A purchasing log, although not required to record all PCard transactions, may be a method for organizing departmental PCard activity.

30. PURCHASE DOCUMENTATION – MULTIPLE USER LOG • PCards with multiple authorized Card Users (more than one) must be signed in and out via written documentation identified as a Multiple User Log. • Each time the PCard is checked out to make a purchase information collected must include at a minimum, the date and their name and the vendor. • After purchases are made and the PCard returned, the return date must be entered on the log along with purchase amount. • The log may be kept in an electronic format. If electronic it must only be accessible by the Card Custodian. • Card Users shall not store a copy of the PCard #. • Card Users may not check the card out longer than 24hr. A special exception to this requirement can be given by the Budget Authority, for a specific transaction and must be documented in writing.

31. RECONCILIATION • Reconciliation must be prepared monthly, at a minimum. • The Card Custodian is responsible for ensuring monthly card statement reconciliation for all occurring charges. • After completing the reconciliation, the Card Custodian must sign and date the monthly statement attesting to the fact that all charges are valid and were initiated by an authorized Card User. • The Budget Authority must attest to the reconciliation by signing and dating the monthly statements.

32. RECONCILIATION (cont.) • In NO case may a Card User review his/her own charges. • If a statement contains charges made by a Card Custodian, then the Budget Authority or designee must review, sign and date the Card Custodian’s charges. • The reviewer must not be supervised by the person whose charges are being reviewed. • Card Custodian responsible to JV all expenditures quarterly (recommend monthly) to appropriate accounts from 28995 (39546 for Team Card).

33. 1. Call Program Administrator! 2. UPDATE! EXIT OF PCARD USER • The Budget Authority or Card Custodian shall within 24 hours contact the PCS via email to pcard@uoregon.edu regarding the exit of a Card User from the PCard Program. • A PCS PCard Intake Sheet along with the PCard Authorization Agreement reflecting the change, must be filed with the PCS within 1 week (or card will be suspended.) • Enter the additions or changes on the PCS PCard Intake Sheet and on a copy of the department’s most recent UO PCard Authorization Agreement and submit to PCS via email to pcard@uoregon.edu. • Card Custodian and Budget Authority must sign the PCS PCard Intake Sheet and initial changes on the PCard Authorization Agreement. • Department must keep a copy.

34. 1. Call Program Administrator! 2. UPDATE! EXIT OF PCARD CUSTODAIN • The Budget Authority or Card Custodian shall within 24 hours contact the PCS via email to pcard@uoregon.edu regarding the exit of a Card Custodian from the PCard Program. • When a Card Custodian exits from the PCard Program, all PCard activity on that PCard shall stop. • PCS must cancel and reissue of PCard. New PCard will not be released until: • A PCS PCard Intake Sheet with a NEW PCard Authorization Agreement is submitted to PCS via email to pcard@uoregon.edu. • A new PCard with a new account # is issued by US Bank.

35. 1. Call Program Administrator! 2. UPDATE! EXIT OF PCARD BUDGET AUTHORITY • The Budget Authority or Card Custodian shall immediately (within 24 hours) contact the PCard Program Administrator regarding the exit of a Budget Authority from the PCard Program. • When a Budget Authority exits from the PCard Program, all PCard activity on that PCard shall stop. • PCS must cancel and reissue of PCard. New PCard will not be released until: • A NEW UO PCard Authorization Agreement form is submitted. • A new PCard with a new account # is issued by U.S. Bank.

36. ACCOUNT INFORMATION UPDATE UPDATE! • **NEW** PCS PCard Intake Sheet needs to be used to update any information on your PCard account including without limitation: • Index. • Address. • Credit Limit. • Department Name. • Request PCard cancellation. • Submit the PCS PCard Intake Sheet to PCS via email to pcard@uoregon.edu

37. PROBLEMS • Incorrect data on the card itself (new cards) • Contact the PCS via email to pcard@uoregon.edu. • Card rejected at the point of sale • Try to resolve by first contacting the U.S. Bank • Check if your department is over it’s card limit. • Give the name of the vendor, amount of intended purchase, the date, and your card limits (per transaction, monthly limit). • If the above fails, contact PCS by phone or email to pcard@uoregon.edu. • DOCUMENT ANY/ALL PROBLEMS!

38. PROBLEMS (cont.) • Poor customer service from U.S. Bank • Phone calls not returned. • Rude visa customer service representatives • Incorrect information. • No resolution to your issue. • Contact the PCS via email to pcard@uoregon.edu.

39. PROBLEMS –BILLING ERRORS • Credits to the wrong account • Double billings • Incorrect charge amounts • Try to resolve first by contacting U.S. Bank or the Vendor. • If resolution is reached with U.S. Bank or the Vendor, make sure corrections are reflected on your account within 30 days. • Contact the PCS via email to pcard@uoregon.edu if the above fails within 30 days of discovery.

40. TRANSACTION DISPUTES • Transaction disputes include: • Overcharges for items. • Charges the Card Custodian/Card User did not make • Items charged to account, but not received. • Contact the PCard Program Administrator about any dispute within 30 days of the discovery. • The department along with PCS will contact U.S. Bank and/or the Vendor about the disputed transaction within 60 days of your monthly statement reflecting the disputed charge. • If resolved, Card Custodian should ensure their accounts reflect any agreed changes in a timely manner (within two billing cycles). • Maintain documentation of all disputes.

41. CONTROL AND SECURITY • Card Custodian is responsible for control and security of the PCard, and the account number • The PCard must be secured in a locked space when not in use. • Make sure the statement is received in a secure location. • Turn in inactive or unwanted cards to PCS. • Document new cards and all purchases. • Ensure “See UO Staff ID” is on the back of your PCard.

42. CONTROL AND SECURITY(cont.) • Do not store the PCard number in an online account • NOTE: **NEW** Exemption allowing for automatic charges for subscriptions with fixed fee recurring at a fixed interval (ex: Mail chimp, Lynda.com, Survey Monkey) – Section 4.3.4 Note 2. • Do not let another department or unauthorized user make purchases with your PCard (know your designees). • Report lost or stolen cards immediately to US Bank and PCS via email to pcard@uoregon.edu. • Ensure proper security is used when purchasing online.

43. MONTHLY TRANSACTION REVIEW • PCS reviews all UO PCard transactions monthly. • PCS identifies questioned transactions and requests documentation from departments via email. • PCS determines if the questioned transaction is a violation of applicable policy and procedures, including PC01 UO PCard Policy and Procedure. • If the transaction is identified as a violation then PCS applies Sanctions for Violations of PCard Policy.

44. ONSITE REVIEW • Notification of review to Card Custodian and Budget Authority. • Standard Checklist. • Immediate Feedback. • Written report of review results.

45. VIOLATIONS/SANCTIONS • A violation is any action that is not in accordance with one or more of the following: OUS and UO PCard policies, state law, Oregon Administrative Rules, and/or reasonable business expenditures. Violations can differ in nature and degree of risk and seriousness. Violations will be evaluated on a case by case basis. • Sanctions are actions that may be taken in response to violations of policy and procedures.

46. VIOLATIONS/SANCTIONS(cont.) • Fall into 3 categories: • Minor. • Intermediate. • Major. • Open, transparent process of what is not allowed. • All reviews will be documented and copies provided to Budget Authority & Card Custodian.

47. SANCTIONS • Actions taken in response to PCard Violations fall into 3 categories: • Minor. • Intermediate. • Major. • Violations are applied to the PCard account not to individuals. • Appeal Rights.

48. VIOLATIONS/SANCTIONS(cont.) • Examples of considerations in evaluating PCard purchase violations and applying sanctions are: • Chronic violations in any category outlined in the OUS PCard or UO PCard Policy and Procedures. • Intentionalmisuse such as using the card for personal purchases. • Letting unauthorized users use the dept. card. • As a Card Custodian, a history of not ensuring Card Users adhere to the policies and standards for using the PCard.

49. VIOLATIONS/SANCTIONS(cont.) Possible Disciplinary Actions or Sanctions: • E-mail or written notification to the Card Custodian identifying the violation and providing an explanation or clarification of the policy. If the Program Administrator has knowledge that violations have occurred in the past, the e-mail should reflect that information. • A copy of the email to the Card Custodian’s Budget Authority. • A copy of the email to the authorized Card User or purchaser. • Invitation to attend a new training session (optional). • Requirement to attend a new training session. • Removal as Card Custodian. • Remove or restricting authorized Card Users. • Revoking or suspending the departmental PCard. • Notification to appropriate University authorities regarding violations relating to OAR 571-040-0240 which may result in disciplinary action.

50. VIOLATIONS/SANCTIONS(cont.) • In general Sanctions provide program managers an approved framework to address program violations. Sanctions also clarify for program participants what actions they may be subject to if they violate program policy and procedure. • Overall sanctions provide clarification encouraging appropriate program use and accountable program management.