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Procurement Card Training www.louisville.edu/procard Training Outline • Benefits and Overview • Testing, Training, and Obtaining a ProCard • ProCard Policies and Role Responsibilities • ProCard Suggested Uses and Restrictions • Policy Violations and Card Misuse • Departmental Controls • Compliance Reviews 2 BENEFITS AND OVERVIEW 3 Program Overview • ProCard program started in 2000 • Current partnership is with PNC Bank • 1536 active cards* – Departmental (472) – Individual (1038) – Declining Balance (26) *Data as of March 2012 4 Benefits of the ProCard Program • Efficient, timely, and cost-effective method of payment for small dollar transactions (expenses incurred to process a small dollar purchase can run as high as the price of the item itself). • The card may be used for items that are needed immediately. • Eliminates the need for petty cash reimbursements. • Vendors will be paid immediately by the credit card company, increasing vendor good will, and at times generating better discounts. • The University makes one payment per month to PNC, rather than one per vendor. 5 TESTING, TRAINING, AND OBTAINING A PROCARD 6 Testing and Training Testing Training All cardholders, reconcilers, Classroom Training is required reallocators, and approvers of before an employee can ProCards must complete the reallocate transactions in online Blackboard Test with a PeopleSoft. score of 100%. Approvers should only complete this training if they would like to review/approve transactions in PeopleSoft. 7 Process for Obtaining a ProCard Any cardholder, reconciler, or approver must be an employee of UofL, ULAA, or ULRF. 1. Pass the ProCard test on Blackboard - all cardholders, reconcilers, and approvers. 2. Attend PeopleSoft training - approvers and reconcilers only. 3. Complete card application in PeopleSoft. 4. Print application from University Reports the following business day. 5. Obtain appropriate departmental signatures. 6. Forward signed forms to ProCard Office. 7. Pick-up and activate card(s). (The new card will be ready for pick-up 5-7 business days after proper completion of the application.) 8 PROCARD POLICIES AND ROLE RESPONSIBILITIES 9 Basic Policies • One (1) card per employee except for grants - an individual may have a card tied to each grant. • The cardholder/responsible party should be the person who uses the card most often. • The approver of a card must not be a subordinate in the direct reporting line of the cardholder. • An Employee Usage Agreement must be completed by anyone, other than the cardholder, who makes purchases on the card. • A Transaction Summary Log (TSL) must be completed for each billing cycle. • All cards that have had no activity for twelve (12) continuous months will be canceled. • A Disputed Items Form must be completed within 60 days if a fraudulent or inappropriate transaction is discovered on the statement. • Monthly ProCard documentation must be retained for a period of 3 years (possibly longer if tied to a grant). This includes: original itemized receipts, TSLs and supporting documentation, PNC statements. 10 Transaction Summary and Reconciliation Sheet University of Louisville Procurement Card Department: Cardholder's Name: Card Account #: (last 6 digits) Transaction Summary for Month: Cardholder's Signature & Date: Reallocator Signature & Date: Printed Name (Reallocator) Approver Signature & Date: Printed Name (Approver) Transaction Total Date Vendor Description/Business Purpose Received Reallocated Reconciled Purchase Amount 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 7 $ 8 $ 9 $ 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18 $ 19 $ 20 $ Reconciliation and approval must be completed and signed by the 15th of the month following receipt of statement. Ending Balance: $ Completed reconciliation's and supporting documentation shall be retained in the cardholder's department for at least three (3) years. Reconciliation and supporting documentation must be made available on demand to the departments of Internal Audit, Purchasing, or Controller's Office for review if deemed necessary by these departments. 11 Cardholder • Monitor ProCard website on a monthly basis for changes to policies and procedures. • Keep the card(s) secure at all times – treat the ProCard(s) like your personal credit card. • Complete and sign the Transaction Summary Log (TSL) by the 15th of the following month. – List information about each purchase (i.e. vendor, amount, and business description). • Verify all transactions on the PNC monthly statement. – This is to ensure all transactions are accurate and match the TSL and receipts provided. – Disputed Charges must be reported to the ProCard Office and PNC immediately. • Complete the ProCard Receipt Form when no receipt if available. • Do not photocopy the front and back of the ProCard. 12 Cardholder (cont.) • Do not write the full 16 digit card number or other card security information on any form for ordering purposes or otherwise. • Complete the Sign In/Out Log if the card is given to someone else for use. • Report lost or stolen cards immediately to PNC and then notify the ProCard Department, and DPS when applicable. • Verify receipt of goods or services and contacting the vendor to resolve delivery problems, discrepancies and damage claim. • Work with the vendor and/or PNC Bank to handle returns, replacements, and disputed transactions. • If an item you are attempting to purchase is questionable, review the restricted items and suggested use list on the website before making the purchase. 13 Approver • Verify that purchases are appropriate for the funding source and are for the benefit of the university. • The approver must not be a subordinate in the direct reporting line of the cardholder. Also, the cardholder cannot be an approver on his/her own card. • Review all monthly ProCard documentation consisting of the PNC bank statement, TSL, and original receipts. This review must be completed by the 15th of the month following the billing cycle and should be clearly documented on the TSL with the approver's signature and the date of the review. • Review the ProCard website on a regular basis for changes to policies and procedures. If an approver chooses to perform the optional online approval of transactions, this process should be completed by the monthly close-out date. When the approver is also acting as the reconciler, he/she must adhere to the reconciler responsibilities in addition to the approver responsibilities. 14 Reconciler (Reallocator) • Ensure all charges are allocated to the appropriate speedtype and/or account code in PeopleSoft by the monthly cut-off date (cut-off dates are listed on the ProCard website). Any charges not reallocated through PeopleSoft by the cut-off date should be corrected using an IUT. • Perform a manual reconciliation each month, comparing the TSL, PNC statement, and receipts. Upon completion of this review, sign and date the TSL. This task must be completed by the 15th of the month following the end of the billing cycle. • Review the ProCard website on a regular basis for changes to policies and procedures. When the reconciler is also acting as the approver, he/she must adhere to the approver’s responsibilities in addition to the reconciler’s responsibilities. 15 PROCARD SUGGESTED USES AND RESTRICTIONS 16 Suggested Uses •Appliances •Cell Phones •Equipment •Membership Dues •Art & drafting supplies •Component items that will comprise •Flowers •Office supplies (from Staples a piece of equipment when eway.com website) assembled •Athletic supplies •Conferences/Meetings room rental •Industrial gases •Postage stamps •Blueprints •Copy IT Centers at MITC, Ekstrom, •Instructional materials and •Registration fees HSC & School of Business supplies •Bookstore •Dental Lab Prosthetics •Lab supplies and chemicals •Software •Car rental & gasoline (one-day trips only) •Employee Appreciation/Recognition; •Lunch/Dinner/Event •Travel expenses for non- gifts for employees meetings (business-related employees only) •Catering •Equipment Repair and Rental •Medical Supplies •Van rentals 17 Restrictions •Airfare •Furniture with upholstery or fabric •Parking Permits •Services subject to Personal furnishings, unless it meets fire code Services Contracts •Alcoholic Beverages are restricted unless •Gasoline, unless purchased in •Payments to Individuals •Shipment of hazardous authorized and documented as a legitimate conjunction with a one-day car rental (1099) materials entertainment expense as defined in or group van rental. the ProCard Policy •Cardinal Card Deposits - Cardinal Cash or •Gift Cards •Personal Use •Smart Parc cards for Meal Plans employees/students/staff •Contributions/Donations •Holiday Decorations •Phone Cards •Student Payments •Controlled Substances/Narcotics •Insurance •Printing •Temporary Help •Debit cards (i.e., VISA cash cards) •Legal Services •Products available through University Stockroom •Faculty, Staff and Student Travel •Movement of Household Goods •Purchases requiring a contract •Firearms/Ammunition •Office supplies, unless purchasing •Radioactive Material from Staples eway.com website. 18 Business Meals/Alcohol Purchases • Business meal documentation must contain the following (some of these items will be provided on the itemized receipt): – name of establishment, city and state; – name and title of attendees; – exact amount and date of expense; – specific business topic discussed; and – specific time of business discussion (before, during or after the event). • If alcohol is purchased, the cardholder must obtain prior written approval from the department head (or next highest supervisor if department head is in attendance). – Alcohol must also be an allowable expense on the selected funding source. 19 Travel Policy • The ProCard cannot be used for faculty, staff, or employee travel. • The ProCard can be used for non- employee travel for authorized university purposes, such as recruitment. 20 Questions about appropriate use? If you are in doubt as to whether a purchase is permitted on the ProCard, contact the ProCard Office first for confirmation. 21 POLICY VIOLATIONS & CARD MISUSE 22 ProCard Misuse & Consequences A ProCard may be suspended/revoked for the following reasons: • Failure to adhere to ProCard policies and procedures. • Failure to safeguard the ProCard from unauthorized use. • Use of ProCard for non-University or personal purchases. • Failure to keep all necessary documentation on ProCard transactions. Possible actions against the cardholder and those performing roles associated with the card include: • Surrender ProCard, privileges revoked. • Disciplinary action, up to and including criminal prosecution and termination of employment. 23 Procurement Card Violations • Any policy violations or suspected fraud should be reported immediately to the Assistant Director for Card Services, Robin Stewart (852-8255). • Depending on the severity of the violation(s), Audit Services may be notified, in accordance with the Fiscal Misconduct Policy. The ProCard Office will contact Public Safety and Human Resources, in addition to Audit Services, if deemed necessary. 24 DEPARTMENTAL CONTROLS 25 Effective Departmental Controls • UBMs should randomly select a card for a spot audit within their department each month. – Ensure the completion of the monthly TSL. – Verify signatures by cardholders, reconcilers, and approvers. – Check all receipts and verify the business purpose of each transaction. – Match the receipts to the PNC statement and the statement to University Reports. • An Audit Checklist was created to facilitate the departmental review process. • When using a shared departmental card, complete a pre-approval form prior to release of the card. 26 PROCARD AUDIT CHECKLIST Guidelines for conducting internal reviews of ProCards Date: __________________________________ Card # (last 6 digits): ____________________________ Audit Period: ____________________________ Cardholder: ___________________________________ Reallocator: __________________________________ Approver:_____________________________ TRANSACTION SUMMARY LOG (TSL) & BANK STATEMENT: □ Verify TSL is present for each billing cycle and includes a detailed description and dollar amount for each item purchased. □ Verify TSL is signed and dated by the cardholder, reallocator, and approver (as designated in PeopleSoft) by the 15 th of the month following the end of the billing cycle. □ Verify bank statement is present for each month reviewed (including no activity months). REALLOCATION: □ Ensure speedtype/account code reallocations were performed in PeopleSoft by the monthly cut-off date. Transactions that were not reallocated by this date should be moved to the appropriate speedtype/account code with an IUT. RECEIPTS/INVOICES: □ Verify an original itemized receipt or invoice is present for all purchases. □ Ensure all business entertainment expenses include a list of attendees and business purpose (who, what, where, when, and why). □ If an original itemized receipt or invoice is missing and all measures to obtain a copy have been exhausted, ensure the ProCard Receipt Form was completed and signed by the cardholder’s supervisor. □ Confirm Kentucky sales tax has not been applied to purchases. If sales tax was charged and not refunded, there must be documentation of the steps taken to credit the sales tax. POLICY: □ Verify all transactions are for business purposes only. Questionable items should be investigated using the Restrictions & Suggested Uses lists. (The ProCard cannot be used for employee or student travel.) □ Ensure the Asset Inventory Form was completed for items valued at $1000.00 or greater. □ Infrequent, tangible gifts for employees must not exceed $99.99 each and cannot be used as payment for services rendered. Gift cards cannot be purchased using a ProCard. (See De Minimis Gift Policy for a further explanation.) □ Verify office supplies have been purchased either from the University Stockroom or our contract vendor (currently STAPLES; must be on-line purchases). If items were purchased at the Staples store or through another vendor, a letter of approval from Purchasing must accompany the receipt. □ Look for split transactions: two or more purchases from same vendor on the same date used to circumvent the spending limit approved for the card. □ Verify the Disputed Items Form was completed for transactions deemed unauthorized/suspicious/unknown by the cardholder. □ Verify that the approver for the card is not in the direct reporting line of the cardholder. □ Confirm all policies have been followed. Document any policy exceptions to the ProCard Office. Include exception documentation with the transaction summary log. CARD SECURITY: □ Verify the card is stored in a secure location, either locked in an office or on the person. □ Ensure the Sign-In/Out Log is completed if the card is checked out to other employees. □ If someone other than the cardholder uses the card, ensure an Employee Usage Agreement was completed and is on file in the ProCard Office. Any fraudulent/personal charges or policy violations found during this review should be reported immediately to the ProCard Auditor, Tanisha Hackett, at 852-8214. Reviewer’s Name: _________________________________________________________ Date: _____________________________________ 27 Reviewer’s Signature______________________________________________________ COMPLIANCE REVIEWS 28 Compliance Review Procedures • ProCard activity is analyzed and monitored by the ProCard Office. • The following types of compliance reviews are performed to review ProCard accounts: – Departmental – Individual cardholder or card – Monthly spot-check review of transactions (IR spreadsheet) • Notification of compliance review. • Compliance reviews will be conducted in the cardholder’s office, assuming there is adequate space. • The results of the compliance review are detailed in a report sent to the cardholder (or UBM when conducting a departmental audit), with a copy to the department head, Independent Reviewer, and VP/Dean. 29 Common Violations • List of attendees is not included for business meals. • Food receipts are not itemized. – Sodexo locations on-campus will give itemized receipts if asked. • A clear business purpose is not stated on the TSL. • The TSL is not signed and/or dated by the cardholder, approver, and reconciler by 15th of the month. • Receipts are missing. 30 PROCARD STAFF DIRECTORY • Robin Stewart, Assistant Director 852-8255 • Tanisha Hackett, Compliance Analyst 852-8214 • Jennifer Knight, Compliance Analyst 852-5280 • Alma Brandon, Administrative Assistant 852-4433 • Charlotte Numann, Administrative Assistant 852-8218 31 Don’t forget to visit the ProCard Website! http://louisville.edu/procard http://louisville.edu/procard 32
"March 2012 ProCard Training"