Procurement Card Guide

Procurement Card Guide

Procurement Card Application
Software Form
Procurement Card Purchasing Log
Procurement Card Guidelines
Procurement Card Telephone Order Form

1.Overview of Procurement Card Program

2.Where to Get Help

3.Cardholder Policies and Procedures

4.How to Use the Procurement Card

5.Disputed Transactions

6.Procurement Card Audits

1. OVERVIEW OF Procurement Card PROGRAM

1.1 Purpose

This program is designed to dramatically improve efficiency in purchasing low dollar goods and services for University use from suppliers that accept the Visa credit card, including some University services. Some examples of target purchases intended for this program include:

Office Supplies
Subscriptions
Computer Software and Accessories
Reprints of Journal Articles (to companies in the U.S.)
Maintenance and Repair Materials
Books
Day Planners

Please note that this card cannot be used for personal purchases under any circumstances.

1.2 Benefits

The use of this Procurement Card will:
Allow employees to obtain certain goods and services much faster and easier
Sharply reduce paperwork and processing time in the employee's department, as well as in Accounts Payable and Procurement Services
Enable employees to be more efficient and to focus on the value-added aspects of their jobs
Provide cost savings through consolidated payment (one monthly payment to Visa, versus multiple supplier payments).

Important benefits
for suppliers include:
Receiving payment in as few as three business days
Elimination of invoicing and collection activities
For on-campus merchants, eliminates processing of campus orders

1.3 The Credit Card Company

The program that the University has chosen is provided by U.S. Bank. In turn, U.S. Bank utilizes the services of First View Software to generate management reports and other usage information.

In most situations individual cardholders and departments will either deal directly with U.S. Bank or with the University's Procurement Card Coordinator in Procurement Services.

2. WHERE TO GET HELP

2.1 U.S. Bank To report a lost/stolen card call (800) 344-5696 (and 863-8301):
The cardholder must
call U.S. Bank immediately upon discovering that the card has been lost or stolen. Help is available 24 hours a day. Also call the University's Procurement Card Coordinator as early as possible on the first available business day during normal business hours at 863-8301.

Customer Service,(800) 344-5696
For general assistance and information.
To dispute a transaction that has appeared on your statement:
Fax the"Statement of Questioned Item" form found in the Appendix to U.S. Bank. Also, please fax a copy to the Procurement Card Coordinator.

3. CARDHOLDER POLICIES AND PROCEDURES

3.1 Keeping Your Card Secure

Always keep our card in a secure place. Just as you would your personal credit card, treat it as if it were cash.

3.2 Sales Tax Exemption

It is the responsibility of the cardholder to ensure that sales tax is not charged when making a purchase with the Procurement Card. If you are charged tax in error you must request a credit from the supplier as soon as possible after discovering the error.

The second embossed line on your Procurement Card reads"UVU Tax Exempt". The University is usually exempt from ALL sales taxes, even when purchasing items from out-of-state suppliers because the application of sales tax is determined by the location of the buyer, not the seller. If you have an unusual circumstance, such as merchandise shipped directly to someone outside of Utah, please call the Procurement Card Coordinator for assistance.

The University's sales tax number is 11843640-002-STC. If a supplier requests proof of the University's tax exempt status please give them a copy of the tax exemption form. The supplier may also photocopy your Procurement Card. Please contact the Procurement Card Coordinator at 863-8301 if you need additional help.

3.3 Limitations on All Cards

Your Procurement Card cannot be used to purchase the following items:

Alcoholic Beverages
Food and Meals; including candy, office meals, office parties, doughnuts, bagels, pizza, etc.
Cash advances
Construction or remodeling
Employee Benefits: entertainment, tuition, gifts, or flowers
Fabricated equipment
Fines, late fees, penalties, (including parking tickets)
Gifts, Gift Certificates, or Cards
Holiday Decorations
Office Party items
Clothing; including monogrammed articles
Lodging, Hotels, Motels, Housing, including deposits or holds on such
Memberships
Personal Purchases
Special Services: Independent Contractors, performers, or speakers
Student events, travel, tuition, scholarships, or stipends
Travel, including Airline tickets
Gasoline
Vehicle Rental
Office furniture of any kind
Computers of any kind and unregistered software
Cell Phones, Cell Phone accessories, and Cell Phone plans

3.4 Automatic Renewal

A new Procurement Card will be mailed directly to you each year at the University address on file. If you do not receive a card before your current one expires call U.S. Bank Customer Service at (800) 344-5696.

3.5 Changing Card Limits & Updating Cardholder Information

The limits on you card may be changed by submitting the appropriate forms. These forms should also be submitted when other cardholder information changes, such as name, reporting line, statement mailing address or campus address.

3.6 Termination of Employment

Your card remains the property of U.S. Bank and must be surrendered immediately upon termination of employment, or upon request for any reason by an authorized person (such as your supervisor or the Procurement Card Coordinator). Please cut the card into two pieces when surrendering it.

3.7 Documentation

A minimum of one form of documentation is necessary. Each and every transaction Must have documentation. Keep the documentation with the monthly hard-copy statement in your office. Documentation consists of *Actual itemized receipt in most cases, but if that is impossible, a telephone order form, a fax order form with confirmation if possible, a screen print of an Internet order, a packing list or invoice. Other appropriate documentation such as: conference registration from of a magazine/newspaper subscription form. Documentation must include, at a minimum: a date, vendor, brief description and purpose, and the dollar amount.

3.8 Dollar Limits

Each card has a dollar limit for per-purchase and per-month. Be aware of your limits and do not split the transaction into smaller amounts to avoid the per-purchase limit. If you require a higher limit, contact the Purchasing Department.

3.9 Monthly Statement

When the monthly statement arrives, you must: Sign it as the cardholder including the date, have it signed by your supervisor, have documentation for all of the transactions that appear on the statement, keep the statement and supporting documentation at your office for auditor review. A signature indicates your acceptance and approval of each transaction and that it was purchased for a legitimate University use that follows Procurement Card guidelines.

4. HOW TO USE THE Procurement Card

Please note that the cardholder is the only person authorized to make purchases using their card. Giving your card or card number to another person to make a purchase, or using someone else's card, may result in disciplinary action (including, but not limited to, revocation of your card and/or termination of employment). If someone else in the office uses a card, the cardholder is responsible for the transactions made and the accompanying documentation.

4.1 Purchases in Person

A. Follow proper internal procedures specific to your department to obtain authorization to make the purchase.

B. Determine whether the Procurement Card is the most appropriate tool to use for this purchase (check the list to make sure it's not a restricted item, and determine whether a State contract is available).

C. Be certain that the total amount (including all shipping, handling, postage, freight, etc.) will not exceed your card's single purchase limit.

D. Determine that the price quoted is the best you can obtain.

E. Ensure that no sales tax is charged.

F. Obtain a receipt at the time of purchase.

G. To Ship Items:
Remember to give the supplier your name, department name, phone number, and complete delivery instructions as follows if you are not picking up the goods:
Recommended method: Have goods shipped directly to your campus address via UPS, Federal Express, or other method as suitable for the purchase.
If direct shipment is not possible, use the following address to have the goods delivered to Receiving:

UVSC Receiving Department
Attn:
800 West University Parkway
Orem, UT 84058

If this is not done correctly your goods may be returned to the supplier as undeliverable.

H. Record the purchase on the log (optional) and place the receipt in a secure place.

I. When receiving the goods, whether via direct delivery or through Receiving, always retain all boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. It is the cardholder's responsibility to inspect the goods upon arrival.

4.2 Purchases by Phone, Fax or Mail

Follow the applicable instructions for making purchases in person, including shipping/delivery. In addition:

Phone:	Use the form and instructions provided in the Appendix to make purchases by telephone.
Fax:	Retain a copy of the order form and fax confirmation (if available) for your records. You are urged not to mail the original to the company to prevent a duplicate order. If the company requires that the original be sent be sure to clearly mark it "confirmation an order placed by fax".
Mail:	Retain a copy of the order form and the address it was mailed to, and request that a receipt be sent to you for your records.

4.3 Other Forms to Complete

When using the Procurement Card there is no need to submit any other form, except when purchasing software (see top of page to download).

In cases where the cardholder is responsible for the error they may be required to personally pay for excess charges caused by the duplicate order (including payment of the full order if it cannot be returned, or payment of a restocking fee).

4.4 Returns, Damaged Goods, Credits

If goods purchased with a Procurement Card need to be returned the cardholder should work directly with the supplier. Here are some pointers to make it easier:

A. Always retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. Some items, such as software or fragile pieces, cannot be returned without the original packaging materials.

B. Read all enclosed instructions carefully. Often a phone number and other instructions are included on the packing slip and/or receipt.

C. Many suppliers require you to obtain a "Return Authorization Number" before they will accept a return. If you neglect to get this number when it is required the package may be refused and/or no credit issued to your account.

D. In some cases there may be a restocking fee (usually a percentage of the purchase price). If the supplier is completely responsible for the error or problem you should not have to pay this, or any other fee. However if they are not fully responsible you may have to pay it. You may use the Procurement Card to pay this fee as long as it does not exceed any of your limits.

E. If you need help in packaging goods for return, limited assistance may be available through the shipping department within University Stores and Receiving, 863-8396.

F. Lastly, make sure that the charge for the returned items:

never appears on your monthly statement, or
is credited properly.

If this does not happen refer to Section 5 - Disputed Transactions for instructions on how to resolve the problem.

5. DISPUTED TRANSACTIONS

5.1 Dispute of Statement Item

Items that appear on the monthly Procurement Card statement from U.S. Bank may be disputed, as long as the disputed transaction is reported to U.S. Bank within 30 days after the statement's closing date.

If there is a charge that is not recognized by the cardholder, or another problem, the cardholder must submit a "Statement of Questioned Item" form to U.S. Bank via fax or mail (the form and instructions are included in the Appendix). A copy of the form should also be mailed to the Procurement Card Coordinator in Procurement Services.

During U.S. Bank's investigation they will issue a credit to the Procurement Card account in question for the disputed amount. When the investigation is complete you will be notified of the resolution. If you are unsatisfied with this resolution, please contact the Procurement Card Coordinator. (If you are satisfied, there is no need to contact Procurement Services.)

5.2 Dispute with Supplier

If you have a problem involving a dispute with a supplier (such as you claiming that the item doesn't work and the supplier claiming that it does), and you are unable to obtain satisfaction directly from the supplier, please notify U.S. Bank (and the Procurement Card Coordinator) using the "Statement of Questioned Item" form mentioned in Section 5.1. Be sure to describe the problem and all of the efforts you have made thus far in attempting to resolve it.

U.S. Bank will assist you in every way possible. As above, if you are unsatisfied with their resolution please contact the Procurement Card Coordinator.

6. Procurement Card AUDITS

6.1 Audit Process

Cardholders are to have yearly Procurement Card audits on all of their purchases. Audits will cover one full year of transactions. The audits are done by department. The responsibility of the Procurement Card auditor is to verify that all of the purchases made on the Procurement Card are business related and that no purchases violate any University policies. After the audit is completed the auditor will compile a report for the department and copies will be sent to the Dean, Department Chair, or Director of the department as well as any other individual that the Dean, Department Chair, or Director requests.

6.2 Audit Reports

Reports are sent to each department at the conclusion of the preliminary audit and the individual cardholders are then responsible for making any corrections to their audits.

6.3 Point System

The point system for audits is based upon each violation. The total points for each violation are as follows:

Violations	Point Value
Personal Purchase	150
Splitting of Transaction	60
Purchase of Restricted Item	40
Lack of Signature on Monthly Statement	40
Receipt/Paperwork Missing (First Violation)	30
Receipt/Paperwork Missing (Second Violation)	40
Receipt/Paperwork Missing (All future Violations)	50
Fabricated Equipment or Furniture Purchase	30
Unregistered Software	30
Taxes charged on Purchase (limited to 30 points)	10

The point system is based on a 150 point limit, which is accumulated yearly.
If the cardholder goes over the 150 point limit they are required to attend a training meeting in order to get their limit back under the limit.
If a cardholder attends the ProCard training meeting their points will be reduced by half.
If the cardholder gets a zero on their yearly audit their points will be reduced by half.