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Card Changes University of Georgia

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Card Changes University of Georgia Powered By Docstoc
					University of Georgia
 INTRODUCTION

      Open Forums
    June 16, 2-4 p.m.
    June 18, 9-11 a.m.
Student Learning Center
       Room 148
                       P-Card Changes

 P-Cards may be issued only to permanent (regular)
  employees of the University
       Job duty to require the use of the card
       No more than one (1) card per employee


 Card Limits:
      $10,000 monthly credit limit

 Period of Retention for Documentation:
      Five (5) years from date of transaction
      If a sponsored account is involved, these records must be
       retained for the period of the grant/contract plus an
       additional seven (7) years following the end date of the
       grant/contract
                P-Card Changes (cont.)


 If all efforts to settle a claim for purchases directly with
  the merchant have failed, a Cardholder must file
  disputes within sixty (60) days of billing issue date

 Billing Address
      First use address listed on billing statement;
      The cardholder may be requested to also provide the
        corporate billing address as listed in the P-Card
        manual
                   P-Card Changes (cont.)

P-Card Sharing
 The cardholder is the only person authorized to use the P-Card that has
  been issued in that cardholder’s name

 P-Card sharing is prohibited and results in immediate termination of
  P-Card/privileges

 P-Card sharing increases the risk of fraud and cardholder liability

 Best practices to prevent fraud and misuse include NOT allowing an
  individual other than the cardholder to:
        have physical possession of the P-Card to make payments to
         point of sale vendors;
        have access to the P-Card number and expiration date to make
         payments via telephone, internet, or in person;
        have access to receipts or invoices that display the complete P-
         Card number and expiration date.
   Security Measures to Safeguard the P-Card

 Keep the P-Card (and account number) in a secure location
 Safeguard the P-Card as you would a personal credit/debit
  card
 Lost, stolen, or fraudulently used P-Cards must be reported to
  Bank of America (1-888-449-2273) and DOAS (email to
  ProcessImprovement@DOAS.GA.GOV) within 24 hours of
  discovering the loss, theft, or fraudulent use. The
  cardholder’s Approving Official and the P-Card
  Administrators must also be notified.
 When placing an order online, use only secure sites.
         URL (website address) should begin with https
         A graphic, such as a lock, should appear in the bottom right hand
          corner of the browser bar
                      P-Card Changes (cont.)

Consequences of Inadequate Documentation:
• Cardholders are required to personally reimburse the
  University for purchases not appropriately documented.
• Approving Officials may also be required to reimburse the
  University if the approving official approved an undocumented
  purchase.
• If appropriate documentation is unavailable, a Missing
  Receipts Affidavit form must be completed, signed, and kept
  on file with the monthly billing statement.
         Example of a Missing Receipts Affidavit form


Note: Responsibility for individual purchases rests with the individual cardholder
making the purchase and the approving official who approves the purchase
                                    P-Card Missing Receipt Affidavit


I ______________________, have either not received or have misplaced a P-Card receipt totaling
$__________. This document will be used in lieu of an invoice or receipt for this transaction.

Vendor: _______________________________________                                 Amount: $_____________

Date of Purchase: ______________ Transaction Number: ___________________


Item(s) Purchased:
(Include description, quantity and unit price, and business purpose for each item)
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

What attempts have been made to request a duplicate receipt from the vendor?
(Include names, dates, phone numbers, or emails used in requesting documentation from the vendor.)
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________



I certify that the amounts shown above (and on the attached, if applicable) were purchased and
received for University of Georgia business. I understand that habitual use of this form instead of
submitting actual receipts or invoices will result in suspension or termination of P-Card privileges.
If charged to a sponsored account, I certify that the expenditures represented on the missing receipts
were appropriate for the purposes of the award and requirements of the sponsor.

____________________________                                          __________________________________
Cardholder’s Signature/Date                                           Printed Cardholder Name
____________________________                                           _________________________________
Approving Official Signature/Date                                     Printed Approving Official Name
              P-Card Changes (cont.)

Transaction Logs:
• As P-Card transactions occur, the cardholder must
  record all purchases on a transaction log
• Logs help to keep a running tally of monthly charges
  and identify outstanding transactions not yet billed on
  the monthly bank statement
• Maintaining a log will assist cardholders in staying
  within the established purchasing limits of the card
         Example of a transaction log
                                                                      P-Card Transaction Log

                Cardholder Name                                          Default Account                                          Period of Review*


                                                                                                        Date Billed
 Date of                                 Detailed Description of Item/Service    Amount        Date        On         Redistribution
Purchase          Vendor Name            (including Quantity & Misc Notes)      (w/freight)    Rcvd     Statement       Accounts               Business Purpose




 I certify that I have made all of the listed transaction on behalf of the University and that they comply with the established procedures for using the P-Card.

 Cardholder (Signature/Date): _________________________________                   Printed Cardholder Name ________________________________

*All transactions must be recorded on the transaction log as they are purchased. Outstanding items purchased but not yet billed on the monthly statement
within thirty (30) days should be addressed with the vendor.
               P-Card Changes (cont.)

Personal Use of the P-Card:
Under HB 1113, the use of the P-Card for personal
expenditures is strictly prohibited. Cardholders who violate
this rule must immediately report the personal use and
reimburse the funds. Per USG requirements, the University
is required to report the misuse to the Board of Regents who
will then forward the information to the Attorney General’s
Office. This is required regardless of a cardholder’s intent to
reimburse the University. An example would be when a
cardholder includes a personal purchase with a departmental
order to take advantage of free shipping or pricing discounts.
                P-Card Changes (cont.)

Personal Use of the P-Card (cont.):
All personal use (intentional and unintentional) of the
P-Card should be handled by the cardholder as follows:
    Immediately report the purchase to the Approving Official
     and the P-Card Administrators
    Immediately submit a check payable to UGA to the
     Accounting Department for the amount of the purchase
    Attach a memo on letterhead explaining the circumstances
     of what happened (including a timeline of the incident) and
     attach a copy of the receipt and/or other supporting
     documentation.

Note: These purchases will be reported to the Controller’s
Office for disposition.
Background/Credit Checks
Pursuant to HB1113, in addition to the required criminal
background check, credit checks will be required on employees
hired for positions for which purchasing cards are issued. The
credit check shall be completed prior to issuing the P-Card.
Positions identified by the employing department as P-Card
cardholders will be considered to be “positions of trust”. The
University shall ensure that the results of a criminal background
and/or credit check are provided the privacy protections
required by law.
      UGA has received clarification from the Board of Regents Office
       (BOR) stating that this requirement applies only to new
       cardholders, effective July 1, 2008.
Food/Travel:
Student food, student travel, and food for instructional uses is permitted
on the P-Card subject to certain exceptions and documentation
requirements. Additionally, food purchased for resale and as required
supplies is allowable. Food purchased for official research use as
approved by an Institutional Review Board (IRB), or food that is integral
to or subject of research is permitted. These are the only instances in
which food may be purchased with the P-Card.
     Additional guidance will be incorporated into the P-Card manual
        to provide a more detailed list of allowable food purchases.
Motor Vehicle Expenses:
Motor Vehicle Repairs and Maintenance are allowable
purchases on the P-Card for state-owned fleet vehicles
only provided that all costs associated with state vehicle
repair and maintenance be reported in accordance with
DOAS fleet management regulations using the Maximo
system
                         HB 1113




                     House Bill 1113
http://www.legis.state.ga.us/legis/2007_08/fulltext/hb1113.htm
                        HB 1113 (cont.)

 Section 1(b): “It shall be unlawful for any person to obtain for his
  or her own personal benefit, or for the benefit of any other
  person, any goods, services, or other things of value through any
  resource or method established pursuant to this article,
  including, but not limited to, purchase orders, government
  contracts, credit cards, charge cards, or debit cards.”

 Section 3(a): It shall be unlawful for any person to use any travel
  advance received from public funds, for nongovernmental
  purposes or to submit or approve, knowingly or through willful
  and wanton neglect, a fraudulent request to the state for
  reimbursement of expenses.
                    HB 1113 (cont.)

 Both P-Card cardholders and Approving Officials may be
 criminally prosecuted for P-Card misuse – a supervisor that
 according to Section 2(d) “knowingly, intentionally,
 willfully, wantonly, or recklessly allows or who conspires
 with an employee who is issued a purchasing card to violate
 subsection [2](c) of this code section shall be subject to
 immediate termination of employment and criminal
 prosecution
                     Pending Issues



Statement of Ethical Values
Cardholders will be required to sign a statement of ethical
values in order to have a P-Card. Approving Officials will also
be required to sign the statement of ethical values prior to
being assigned as a P-Card approving official. An ethics
segment will be incorporated into the P-Card application
process and made available July 1, 2008.
P-Card Roles/Duties
Roles:
      Permanent (regular) employee
      Individual to whom the card is assigned
      Only one (1) card per cardholder
      May not be his/her own “approving official”
Mandatory Duties:
    Record each transaction on a log as the purchase occurs
    Provide adequate documentation to “approving official”
     for review
    Sign/date both the reconciled monthly billing statement
     and the transaction log
Note: Responsibility for individual purchases rests with the individual cardholder
making the purchase and the approving official who approves the purchase
Roles:
   Overall responsibility for budget
   Sole authority for assignment of cards/roles; this
    responsibility cannot be delegated
Mandatory Duties:
   Establish and maintain internal controls
   Approve issuance of new cards :
          Establish cardholder single transaction/monthly credit limits
          Assign knowledgeable individual acting in a supervisory capacity as
           the “Approving Official” for each card
          Note: It is recommended that Approving Officials not be responsible for
           reviewing more than ten (10) P-Cards at one time. Department Heads
           may request exceptions to this policy from the Procurement Office,
           provided appropriate justification is received
Mandatory Duties (cont):
 Routinely assess business need for each card
 Evaluate transaction/spending limits at least annually
• Request changes to card set up and role assignment

Note: The Department Head may also act as an Approving Official
Approving Official
Roles:
    Required role (assigned by the Department Head)
    Acting in a supervisory capacity to the cardholder
Mandatory Duties:
    Review the P-Card purchases of assigned cardholders on at least a
     monthly basis
    The monthly review must be evidenced by a signature of the
     approving official on the monthly Bank of America statement for
     the assigned cardholder
    Identify, document, and report cardholder violations
    If desired, the approving official can also monitor P-Card purchases
     on a more frequent basis using the WorksTM program.

Note: Responsibility for individual purchases rests with the individual cardholder
making the purchase and the approving official who approves the purchase
Other Mandatory Duties/Functions
 The duties/functions listed below may be performed by individuals other than the
 Cardholder, Approving Official or Department Head. The person completing
 these duties is considered to be performing the role of a “Facilitator”.


The following duties must be performed to ensure that
transactions are recorded correctly and reviewed on a timely basis:
    Enter comments in WorksTM that describe the item/service
       purchased including the reason for the purchase
      Change default account code in WorksTM (if necessary)
      Default object code 71490 must be changed in WorksTM
      Perform first level of sign off in WorksTM
      Perform second level of sign off in WorksTM
         Second level review must be completed by someone other than the
          cardholder or person performing the first level of sign off
         Reminder: Funds are refreshed at beginning of next billing cycle only IF
          second sign off occurs
Other Mandatory Duties/Functions (cont.)
 Reconcile the monthly bank statement with the signed transaction log,
  receipts, invoices and other supporting documentation

 Ensure a propriety review has occurred and is documented. A
  propriety review indicates that the purchase was reasonable,
  appropriate and necessary while also in compliance with P-Card rules
  and regulations

 Retain the complete reconciled monthly billing statement with
  signatures and attached documentation for a period of five (5) years or
  if a sponsored account is involved for the life of the contract/grant plus
  an additional seven (7) years. The reconciled monthly billing
  statement cannot be retained by the Cardholder.
Use of the P-Card
       Clarification/Changes in P-Card Uses

Unallowable Uses:
 Gift cards, gift certificates, or other equivalent forms of cash
        Example: purchases of gift cards to provide incentives to
         research participants or to students, etc…

 Agency account purchases
      90-xx-xxxxx-xxx
      Exception: Study Abroad travel expenses for students
      UGA has received clarification from the BOR indicating
        that this exception for Study Abroad programs does not
        apply to domestic Field School Programs or other student
        organizations established with agency accounts; however,
        UGA is researching ways to restructure the type of account
        for those programs currently set up as agency (90)
        accounts.
        Clarification/Changes of P-Card Uses

Unallowable Uses (cont.):
 Split transactions purchased on statewide or agency contract to
  circumvent the single transaction limit

 Purchasing items with the P-Card that are intended to be
  reimbursed by the Foundation

 Intra-University charges (tickets)
     Examples include:
       Georgia Center or CAES conference registration fees
       Central Research Stores
       Instrument Shop
       MSD
       Exception: UGA Bookstore (Athens/Gwinnett)
       Clarification/Changes of P-Card Uses

Unallowable Uses (cont.):
 Use of coupons, rebates or rewards programs that offer free
  items or promotional items for the benefit of the
  cardholder are not allowed when purchasing items with the
  P-Card

      Rebate checks must be made payable to UGA and sent to the
       Accounting Department for deposit
      Example: The Office Depot rewards program that allows a
       customer to earn free items based on accumulated points/dollars
       spent
      HB 1113 specifically prohibits employee personal use of rebates or
       refunds from vendors, banks or other institutions for a purchase or
       the use of the purchasing card
                               Common Errors

 P-Cards may only be used to purchase items allowed on University accounts.
  Examples of unallowable purchases include:
           Entertainment
           Flowers/gifts to be given away
           Service/Recognition awards i.e. plaques
           Break room supplies for employee use

 Personal purchases


 Memberships


 Inventoried Equipment


 Travel (for employees and prospective employees)


 Use of a retail site when vendor has established a specific website to provide
  statewide or agency contract pricing
P-Card and Sponsored
      Accounts
          P-Card and Sponsored Accounts

If a sponsored account is set up as the default account, all
purchases made on this card must be intended for that
default account only. If a general account is not available to
use as the default account, then the following types of
accounts could be used:
       UGA Indirect Cost Recovery account (xx-xx-Axxxx-xxx)
        UGARF Indirect Cost Recovery account (xx-21-RRxxx-
        900)
        Departmental Sales & Service account that is not for a
        specific project (xx-xx-Dxxxx-000)
       Set up a new General account with no budget (xx-xx-
        Gxxxx-xxx)
           P-Card and Sponsored Accounts

P-Card Transfers (Journal Vouchers)

 Charges to a sponsored default account should not be
  transferred to another account while in WorksTM , unless an
  error has been detected

 Charges to a general/state account can be transferred to a
  sponsored account while in WorksTM

 Once the charge posts to G/L, the Cost Transfer policy
  applies. (http://askuga.uga.edu/default.asp?id=1428&Lang=1&SID=)
      P-Card and Sponsored Accounts

Initial request forms will be forwarded to
 Contracts & Grants for approval

Changes to sponsored default accounts must
 also be routed through Contracts & Grants

Contracts & Grants will review for account type,
 business purpose, and budget restrictions
 imposed by agencies
         P-Card and Sponsored Accounts

P-Card Purchases
 Must be allowable per the terms and conditions of the
  sponsored agency

 Must be allowable per the University’s direct cost
 policy/procedures
 (http://askuga.uga.edu/default.asp?id=1429&Lang=1&SID)
 (http://askuga.uga.edu/default.asp?id=1432&Lang=1&SID=)


 Must be allowable per the University’s P-Card policy
          P-Card and Sponsored Accounts

Things to Know
 Some purchases that are allowable per the P-Card manual
  are not typically allowable on sponsored accounts.

 Comments in WorksTM should be as specific as possible.


 Food purchases must be approved in writing by the
  sponsoring agency.

 Book purchases and subscriptions must be justified as a
  direct cost.

				
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