Purchasing Card

PURPOSE

Cardholders: Carefully read the following policy on Purchasing Cards. Once you have read the policy please send an email to Bob Allison, , (copy to ) confirming you have read and understand the policy.

The purchasing card is the University's secondary authorized buying method. The purchasing card functions similar to a credit card and is used for routine purchases. It expedites and simplifies the procurement process, reduces administrative costs associated with invoice processing, and ensures immediate payment to the supplier. It provides authorized employees who are delegated as departmental buyers with an effective tool to purchase and pay for routine, low dollar, non-restricted commodities from non-restricted suppliers. Not all products or services can be made with a purchasing card!

“Use of a Purchasing Card is a privilege granted by the University Institution, and as such, will be revoked and disciplinary action taken in the event of abuse, inappropriate or fraudulent use.

Please note all cardholders are required to use the PaymentNet system and to follow existing guidelines.

RESPONSIBILITIES

Cardholders:

Use the card you have been assigned securely and responsibly for legitimate business requirements with reputable suppliers. Keep your card number safe and process online orders only on secure web sites (preceded with https) to minimize the risks to the University and/or your School/Center.

  • Adhere to Purchasing card policies and procedures (policy 2303)
  • Purchase item in accordance with proper method of payment as indicated in the Commodity Matrix
  • Attend refresher training classes every two years
  • Read and sign the Purchasing Card Agreement every two years
  • Purchasing cards can only be used by the person to whom the card is assigned
  • Obtain detailed receipts for each purchase
  • The cardholder is responsible for resolving any transaction disputes with vendor
  • Cardscannotbe used to purchase alcohol, purchase services or for personal purchases.
  • Transaction costs cannot be split to avoid transaction limit

Procedures

  • Obtain detailed receipt for each transaction
  • Each Friday complete the ‘transaction notes’ section in PaymentNet System; indicate the business purpose for the purchase - detailed explanation of the “why and what’ of the purchase and the COA to which the costs should be charged.
  • By the 15th of each month, print the Statement of Accounts and the Payment Net transaction report from prior month, attach receipts attached, sign and date the report and submit to your transaction approver.Your signature indicates you agree with the charges and transaction.
  • Maintain a copy for your records
  • Failure to comply indicates a failure to perform the job as required.

Reallocator:

The reallocation changes the default account associated with the purchase to the correct charge account in BEN Financials on a weekly basis..

  • Using the PaymentNet ‘transaction notes’ report, transfer cardholder charges from credit card default object code 5249 to the appropriate COA via BEN Financial Systems by Friday.
  • If a cardholder has not submitted a weekly report and has transactions on their credit card, send them a reminder notification with a copy to your business manager and Bob Allison

Transaction Approver

Review and confirm the monthly Statement of Account and supporting documentation for each Cardholder complies with University Policies and Procedures such that:

  • Supporting documentation is in compliance with the Purchasing Card's Policy and Audit Guidelines.
  • The Purchasing card was the appropriate business tool used for the transactions (refer to the Buying Decision Chart and BEN Financials Commodity Matrix)
  • No transaction appears to be for personal use
  • No split charges exist
  • The business nature of the transaction is documented in the transaction notes field via PaymentNet, on the receipt or on the monthly Statement of Account.
  • Contact the Cardholder for an explanation for the business purpose if a transaction is found to be questionable.
  • If a transaction is voided, the cardholder and transaction approver must initial any changes to the Statement of Account.
  • Sign, date, and file each Cardholder's monthly Statement of Account.
  • If at the end of the month the cardholder has neglected to complete the transaction notes and charges are not appropriately journaled, please send an email to the cardholder indicating same with a copy to the Business Manager and Bob Alison
  • New process: Complete and sign monthly audit review sheet for each purchasing card and attach to purchased card packet and file. (see attached)

Reviews:

Purchasing card transactions will be routinely audited by a school level administrator with the following goals:

  • Determine whether Business Administrators execute satisfactory oversight of the BEN financial statements for all accounts in which they have a fiduciary responsibility.
  • Ensure that segregation of duties is adequate.
  • Review the roles and responsibilities of Cardholders periodically to ensure that card privileges are still appropriate.
  • Communicate the results of the review to appropriate levels of management within the School or Center.