PURCHASING CARD (DOC download)

Document Sample
PURCHASING CARD (DOC download) Powered By Docstoc
					YOUNGSTOWN STATE UNIVERSITY

COMMERCIAL CARD PROGRAM PROCEDURES MANUAL

Issued by: Materials Management Revised March 2007

TABLE OF CONTENTS
Purpose of the Manual ............................................................................................... 1 Background ............................................................................................................... 2 Program Administrator .............................................................................................. 3 How to Obtain a Commercial Card Eligibility & Application .................................................................................... 3 Spending Limits .............................................................................................. 3 Once Your Card Arrives ................................................................................. 4 To Activate Your Card .................................................................................... 4 Card Security/Preventing Fraud ................................................................................ 4 Cardholder Responsibilities ....................................................................................... 5 Card Usage Guidelines ............................................................................................. 6 Rules and Procedures .................................................................................... 6 Authorized and Unauthorized Expenditures ................................................... 7 Exceptions to the Commercial Card Program ................................................. 8 Ordering Process ............................................................................................ 8 Preferred Suppliers/YSU Diverse Suppliers ................................................... 9 Sales Tax ........................................................................................................ 9 Receipt Documentation ........................................................................................... 10 Transaction Review and Status Update .................................................................. 11 Transaction Review and Status Update Procedure ...................................... 12 Email Notification .......................................................................................... 13 Problems with Credit Card Use Dispute ......................................................................................................... 14 Returns ......................................................................................................... 14 Damaged Card/Replacement Card .............................................................. 14 Lost/Stolen Card or Fraudulent Use of Card ................................................ 14 Expiration and Reissue of Cards .................................................................. 15 Card Maintenance/Cancellation Maintenance .................................................................................................. 16 Cancellation .................................................................................................. 16 Card Discipline Process .......................................................................................... 16 Appeals Process ........................................................................................... 17 Financial Manager/Immediate Supervisor Responsibilities ..................................... 18 Commercial Card Select Program ............................................................................ 19 Navigating the Materials Management Commercial Card Website How to Get There .......................................................................................... 21 Links and Topics Within ................................................................................. 22 Forms and Manuals on the Web.................................................................... 23 Glossary of Terms .................................................................................................... 25

Youngstown State University
Commercial Card Program Administrators: Lisa Mudryk 330.941.3166 (ljmudryk@ysu.edu) Materials Management

Welcome to the Youngstown State University Commercial Card Program. This program uses a Visa product that the University provides to its employees to more efficiently and effectively execute small-dollar, non-inventory, non-capital purchases. It represents a significant enhancement over a more traditional acquisition process. Many items that are now acquired through purchasing, according to University guidelines of value and need, should be targeted for the commercial card. The Commercial Card Program is not designed to entirely replace the current purchasing process. The program is designed to provide you with a new, easier and faster, method to make emergency or one time type purchases. Please review this manual carefully and keep it on file for future reference. PURPOSE OF THE MANUAL    Explain the program Explain the use of the card Responsibilities of the card

This manual is designed to give the cardholder details about their new commercial card, its use, their responsibilities, and pertinent information regarding the program. The card was implemented to provide departments with a more efficient system for making purchasing transactions. Purchases will be charged directly to the cardholder’s departmental Banner FOAPAL and will show as a journal voucher to the appropriate account code. The University will issue just one payment each month for all commercial card transactions. The primary benefits of the new system for departmental users are:  acceptance by any supplier who accepts the Visa card  more timely purchase and receipt of goods  increased information about purchasing transactions  improved supplier relations  reduction in paperwork

BACKGROUND

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 1

The commercial card eliminates much of the administrative work and delays associated with processing small-dollar purchases resulting in substantial benefits to employees, the University, and our suppliers. Cardholders are empowered to obtain certain goods and services much faster and easier than before. Paperwork and related processing in the purchasing and accounting departments will be sharply reduced. The cycle times for acquisition, payment, and reimbursement will be shortened or eliminated. These efficiencies will allow all groups and individuals involved to be more effective at focusing on the value-added aspects of their jobs. The YSU Commercial Card for Business Program delegates appropriate levels of authority to purchase these small-dollar items directly to the person to whom it matters most - YOU, the user. From an accounting and purchasing viewpoint, the commercial card has good control, reporting, and data interface features, which will allow us to reduce overhead costs. In addition, our suppliers will benefit as they get paid in 2 to 3 days and will not have to prepare, send, track invoices, or wait 30 to 45 days for payment.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 2

UNIVERSITY PROGRAM ADMINISTRATOR: MATERIALS MANAGEMENT DEPARTMENT
The Materials Management Program Administrator is available when any of the following situations occur.       Questions regarding commercial card procedures and guidelines Problems encountered with card use or authorization Lost or stolen cards* Change (such as department name, spending limits, etc.) to card account needed Cardholder transfer/relocation, or termination Changes to embedded card accounting code

The Materials Management Program Administrator can be contacted at the number listed on page 1 of this manual. Information on forms to submit can be found under the Card Maintenance/Cancellation section on page 15. Forms are available online at the Commercial Card Program page of the Materials Management website at www.ysu.edu/matmgmt/ccard. * Lost or stolen cards must be reported immediately. See page 14 for instructions.

HOW TO OBTAIN A COMMERCIAL CARD
Eligibility & Application Current employees of Youngstown State University are eligible for the commercial card, with the exception of student employees. Non-employees are not eligible. Potential cardholders must have purchasing responsibilities within their department to qualify for a card. Requests for cards must be made by the Financial Manager of the department FOAPAL to be charged. A National City® Commercial Card Application Form, with proper signatures, should be sent to the Program Administrator in Materials Management.

Spending Limits Each cardholder is assigned a monthly credit limit, as well as a per transaction limit, at the time the account is opened. Current initial spending limits are $15,000 per month and $1,500 per transaction (no single purchase may exceed $1,500). Dividing purchase transactions (pyramiding) to circumvent the per transaction limit is prohibited.
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 3

The Financial Manager/Immediate Supervisor should submit a Card Maintenance Form to the Program Administrator to request an increase in spending limits for a cardholder. All requests must be approved by the Director of Materials Management.

Once Your Card Arrives The Program Administrator will notify the cardholder and a training session will be scheduled to explain the program, the procedures that must be followed and the responsibility that comes with using this credit card program. All new users are required to receive training before they can use their new commercial card. Cardholders must also sign a cardholder agreement verifying that they understand the commercial card program guidelines and agree to comply with them.

To Activate Your Card To activate a new card, the cardholder must call the Commercial Card Activation Line, at 1-800-246-7459. To provide security, the cardholder will be asked to verify additional information. The card becomes activated immediately following the call.

CARD SECURITY/PREVENTING FRAUD
Your commercial card should always be treated with at least the same level of care as your own personal credit cards. The cardholder should use basic security measures, as outlined below, to guard against fraud: DO   Sign your card as soon as it arrives. Keep the card in an accessible, but secure location. Guard your card account number with care. Do not post it at your desk or in your day planner. Do not leave cards lying around the house, in an unlocked desk, or in the car. Save receipts and statements in a secure area (they may contain your card number). Always know where your card is. If you can’t find the card, assume the worst: Report the loss to National City and they will issue a new card. Visit reputable, familiar suppliers whenever possible.

  

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 4

      

Watch sales clerks to make sure your card is not being used to imprint more than one transaction slip. Be aware of what you are signing: Your signature can copy through to other slips deliberately placed underneath. Be sure the card is returned and that the card you are handed is yours. Beware of callers seeking your account number. The telephone is a favorite tool for criminals seeking valid account number or information. Destroy expired cards by cutting them in half – make sure that your account number is not recognizable. Audit your monthly transaction review report closely. Make sure all charges shown are legitimate charges. Report possible fraud immediately to National City and the YSU Program Administrator in Materials Management.

DON’T    Lend your card to anyone. Give your card number to anyone over the phone unless you know you are dealing with a reputable supplier. Discard credit card slips in public areas, or discard them whole. Thieves can acquire your card number from receipts, slips and statements.

CARDHOLDER RESPONSIBILITIES
   To read, understand and abide by the policies and procedures outlined in the Commercial Card Program Procedures Manual. Not abuse card privileges -- those who do will be subject to disciplinary action. To review & assign status to their monthly transactions in accordance with the guidelines provided under Transaction Review and Status Update on page 10 of this manual. To report instances where University policies and procedures are not being followed to your Financial Manager/Immediate Supervisor immediately.



___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 5



To turn in their card when transferring out of their current department or leaving the employment of Youngstown State University.

CARD USAGE GUIDELINES
The commercial card should be used to make small-dollar, non-capital purchases. Generally, a small-dollar amount is below $1,500 per transaction. Note: Some cardholders may have higher spending limits. For examples of authorized expenditures for which departments may utilize the commercial card, refer to the next page. Departments should continue to purchase items stocked in Central Stores. These items are normally very competitively priced and offer the convenience of on-campus stock. The current office supply contract (Total Office Products) offers an on-line ordering system for next day delivery and payment by commercial card.

Rules and Procedures The only person entitled to use your card is YOU. Do not lend your card to another person for use. If a cardholder will be absent from the office for an extended period, the Financial Manager/Immediate Supervisor should contact the Program Administrator to discuss the situation. The card is not transferable. It may be used by the cardholder only. Personal spending on the card is strictly prohibited. Intentional use of the card for personal purchases will result in card cancellation. See Discipline Process on page 16. Pyramiding – i.e., dividing one purchase into two or more, in order to stay within your transaction limit – is not allowable. Cardholders may not receive cash back for any refunds or exchanges. Such amounts must be credited to the commercial card account. If Sponsored Programs or Restricted Discretionary Funds are being charged, cardholders are responsible for ensuring that all granting agency requirements are fulfilled. The terms of the grant, contract or donor’s limitations may be more restrictive than the University’s policy. In cases where these limitations are less restrictive, the University’s guidelines will apply.
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 6

Cardholders should not pay Ohio sales tax. See page 9 for more information. Cardholders are subject to an audit.

Authorized and Unauthorized Expenditures Examples of Authorized Expenditures (but not limited to): Advertising Books Computer Peripherals (printers, scanners, fax, disk drive etc) Contracted Office Supplies Course Supplies Course Fee Funded Maintenance Service Agreements Promotional Items Services Software Subscriptions Supplies (except those listed under Unauthorized Expenditures) University Memberships Web cast/Desk Top Training (no travel involved-no YSU programs)

Examples of Unauthorized Expenditures (but not limited to): Any Purchase over Cardholder’s Approved Transaction Limit Any Items for Personal Use Business-Related and Entertainment Expense  Alcoholic beverages  Food and beverages  Microwaves, refrigerators, coffee pots, coffee supplies and services  Receptions and social gatherings  Entertaining official guests  Donations to charitable and non-charitable organizations  Political contributions  Charitable events (for community relations/goodwill)  Flowers for University-sponsored events  Flowers for bereavement  Flowers, fruit or gift baskets  Greeting cards  Gifts  Awards  Decorations Capitalized Equipment or Betterments to Capitalized Equipment
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 7

Cash Advances Computer & Notebook Systems Gasoline/Propane Hazardous Chemicals/Controlled Drugs Interuniversity Purchases (Bookstore, Bursar, Parking, Print Shop, Telephone) Insurance Lease (including copiers, vehicles, etc.) Professional Services (Payments to individuals, consultants, employees) Radioactive Materials Rentals (vehicles, equipment, cellular phones, facilities) Travel Hazardous Chemicals are defined as any chemical with the following information on the label: explosive, flammable, oxidizer, corrosive or poison and with either a flammability, health or reactivity designation factor above one (1).

Exceptions to the Commercial Card Program Requests for exceptions to the card program may be made by the Financial Manager/Immediate Supervisor by submitting a Request for Exception Form* to the Program Administrator in Materials Management. Requests for exceptions must be submitted and approved by Materials Management and the Executive Director of Financial Services before the expense or exception occurs. Use of the commercial card, without prior approval, for unauthorized expenditures or not in accordance with rules and procedures as outlined in this manual will be subject to the Card Discipline Process outlined on page 16. * Available at the Commercial Card Program page of Materials Management website

Ordering Process The commercial card may be used to purchase goods or services with the selected supplier either by phone, mail, Internet or in person. If orders are being placed via the Internet, cardholders are cautioned to only use known and/or reputable suppliers. Cardholders are required to have online confirmation for all internet purchases. When placing your order, be sure to provide the supplier the following information:       Identify yourself as a Youngstown State University employee Identify this as a University purchase using a Visa commercial credit card Tax-exempt status and tax number shown on the face of the card Cardholder name Individual credit card number Expiration date on credit card

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 8



Complete delivery address including building and room number List *72 as part of University mailing address
Note: Alerts Central Receiving that this is procurement card delivery to insure more efficient delivery to department/cardholder.

Youngstown State University <Name> <Bldg./Room>*72 One University Plaza Youngstown, Oh 44555    Description of goods or services to be ordered Any other information necessary to make the purchase That invoices should not be sent to Accounts Payable (submitting one for a card transaction could result in a duplicate payment).

Preferred Suppliers All cardholders are encouraged to order required goods or services from those suppliers who are authorized contract suppliers to the University. These suppliers provide special discounts and services. Prior to placing the order, check the Materials Management website, Commercial Card Program page for links to the following:    Inter-University Council Purchasing Group of Ohio (IUC-PG) State of Ohio Contracts OIH (formerly known as Ohio Industries for the Handicapped)

A link to the YSU Preferred Diverse Suppliers Directory is also provided for cardholders to operate in good faith and meet University supplier diversity goals.

Sales Tax: Youngstown State University is a tax-exempt organization. Therefore, it is not subject to most federal and is always exempt from Ohio sales tax. Cardholders should inform all suppliers of the tax-exempt status and check that Ohio sales tax is not added to the purchase. Some suppliers may require a “Tax Exemption” form before deducting the sales tax from your purchase. Without a copy of the certificate, the supplier is not obligated to give the exemption. Keep a copy of the exemption certificate with your at all times. A copy of the YSU Blanket Certificate of Exemption is available on the Materials Management website, Commercial Card Program page. Additional tax-exempt information can also be found there. If sales tax is charged, the cardholder should contact the supplier and request a credit be issued for the tax and applied to the card. A copy of the credit receipt should be
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 9

requested by the cardholder. The cardholder is responsible to verify that the credit is posted to their account. The Program Administrator should be informed of a supplier who continually refuses to honor our tax-exempt status. Contact the Program Administrator with any questions you may have or to see whether tax should be paid.

RECEIPT DOCUMENTATION
Cardholders are required to submit original itemized receipts and their email Statement of Account to Barb Greene in General Accounting within 7 working days of the review date deadline for each settlement range. The Statement of Account must be signed by both the cardholder and the Financial Manager. If the cardholder is the Financial Manager, then they must have their Immediate Supervisor review and sign the Statement of Account. The Statement of Account for Financial Managers of grants requires the signature of the cardholder’s immediate department supervisor and not the departments of Grants Accounting or Grants and Sponsored Programs. Receipts will be maintained centrally in the General Accounting Office for audit purposes. If a receipt is missing, please indicate why. For those authorized to use the Select Program, if a receipt has been sent with a travel expense report (TER), please indicate the TER number next to the transaction. By signing the Statement of Account, the Financial Manager/Immediate Supervisor is certifying that the expenditures are in compliance with the YSU Commercial Card program guidelines and procedures. It is required that you keep a copy of all receipts and the signed monthly Statement of Account on file in your department. Acceptable receipt documentation includes an invoice, credit card slip, sales receipt, packing slip, cash register tape or a combination thereof, which contains:  Name of Supplier  Date of transaction  Description of the item(s) purchased  Purchase amount All internet purchases are required to have an online confirmation. Obtaining receipts or other acceptable documentation is the responsibility of the cardholder. Please take extra precautions to collect and submit these documents to General Accounting in a timely fashion. As each purchase is made using the commercial card, the cardholder should record the information on a credit card log sheet. The log sheet is to be kept on file in the department for their record keeping.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 10

TRANSACTION REVIEW AND STATUS UPDATE
Before the review date deadline of each monthly settlement range (billing cycle), cardholders should run a Transaction Review query on PVS Net showing their card activity for that period (see the Settlement Range Chart for dates). The chart is available on the Commercial Card Program page of Materials Management’s website. This report is similar to those received for personal credit cards you may carry. Cardholders should review their report for accuracy. Transaction review is necessary to identify any problems or disputes in billing resulting from the use of your card. Keeping adequate receipt records will help make the job of reviewing monthly transactions easier. If a cardholder prefers, he/she can review and assign status to transactions throughout the month as they are posted to the PVS Net Online System. It is good practice for all cardholders to run another Transaction Review query right before the review date deadline for any additional transactions that may have posted and need review. It can take 1-3 days for a transaction posted to National City Bank to appear on the PVS Net Online System. Cardholders are required each month to review and assign status to all transactions posted to their account for that particular settlement range. Continued failure to do so can result in disciplinary action. The ultimate responsibility to review transactions lies with the cardholder. See page 16 for Card Discipline Process. The statement review and verification process ensures the continued success of the commercial card program by confirming the transaction total that will be charged to your Banner FOAP with a journal voucher (JV) document.

Example of Settlement Range Charge
START DATE First day of the settlement range March Thursday 2/15/07 END DATE Last day of the settlement range Thursday 3/15/07 REVIEW DATE Deadline for review of transactions Tuesday 3/20/07 RECEIPT SUBMISSION Deadline for receipts/ Statement of Account submission to General Accounting Thursday 3/29/07 JV DOCUMENT DATE Date charge back will be available to view on Banner Friday 3/30/07

Transaction Review and Status Update Procedure When reviewing the transactions appearing on your monthly review report, cardholders should take the following steps:
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 11

 

Verify that all transactions/billed totals are legitimate and correct. Update the transaction allocation information by replacing the X’s in the Acct field with a valid Banner account code that best describes the purchase and make any changes to the Fund, Organization or Program, if necessary. All transactions default to ”not reviewed”. Select the appropriate status code for each transaction.
Accepted Dispute Pending Acknowledges transaction has been reviewed and is correct. Acknowledges transaction has been reviewed but a dispute on the transaction is pending (i.e., unauthorized charge). Follow the dispute procedure outlined on page 13. Acknowledges transaction has been reviewed but the cardholder does not have the receipt for the transaction. Use of this status notifies the Program Administrator of your lack of receipt. Cardholders are encouraged to make every effort to secure a receipt



No Receipts

A National City® Commercial Card Cardholder Dispute Form (available online at the Commercial Card Program page of Materials Management website) should be completed and forwarded to the Program Administrator in Materials Management, who will forward it on to National City Bank if the dispute cannot be resolved with the supplier. If the dispute is settled before the review date deadline, the cardholder should go back into the PVS Net Online System and change the status for that transaction from “Dispute Pending” to “Accepted”.
TIP! Don’t forget to SAVE all changes on your Transaction Review screen



Complete transaction review and verification by the review date deadline listed on the Settlement Range Chart. If a cardholder knows ahead that they will be unavailable (vacation, business trip, etc.) to review/status their transactions at the end of the settlement range, they should make every effort to review any posted transactions before leaving. If the cardholder anticipates other transactions to post for that settlement range while they are absent, they should provide their logon ID and password for PVS Net, as well as any other needed information, to their Financial Manager/Immediate Supervisor so they can review/status the transactions. If the cardholder is unavailable due to an unexpected absence, the Financial Manager/Immediate Supervisor should contact the Program Administrator in

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 12

Materials Management for help in resolving the situation. Upon their return the cardholder can change their password, if desired. NOTE: The Procard Interface cannot be completed until all transactions have been reviewed and Banner account codes entered for each transaction. A list of Banner account codes is available at www.ysu.edu/vpadmin/Bannerfoapalinfo.   Submit original receipts and the email Statement of Account to General Accounting within seven (7) working days of the review date deadline. After JV document date, review commercial card JV document expense by doing a Budget Query by Account on Banner Self-Service.

If you need to have a Banner FOAP (Fund, Organization, Account, Program) changed after the procard interface (mapping and acceptance of the journal voucher to the Banner Finance System), send a memo to General Accounting containing the following information: Journal Voucher number, Banner FOAP charged on journal voucher, Banner FOAP to be changed to and dollar amount. This memo must be signed by the Financial Manager. Keep in mind; a request to change the accounting information in the Banner Finance System will not correct the transaction in PVS Net. The transaction remains in PVS Net exactly as it was when mapped into Banner. This is why you should record change requests with your documentation.

Email Notification Sometimes, in our busy jobs, cardholders may forget to review their transactions. To help cardholders meet the review date deadline, a reminder email will be sent by the YSU Program Administrator to all cardholders on the end date of each month’s settlement range. Another reminder email will also be sent to all cardholders the day before the review deadline date. It is important that cardholders notify the Program Administrator (ljmudryk@ysu.edu) if their email address should change.

PROBLEMS WITH CREDIT CARD USE
Dispute

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 13

If a cardholder has a problem with a purchased item or billing resulting from the use of the card, they should first try to resolve it with the supplier. In most cases, disputes can be resolved directly between the cardholder and the supplier. If successful, make sure to get a written confirmation of the credit from the supplier. The cardholder is responsible for verifying that the credit is posted to their account. If the dispute cannot be resolved with the supplier, contact the YSU Program Administrator in Materials Management. The Program Administrator is prepared to deal with disputes and will intervene on your behalf with the supplier and, if necessary, National City Bank. You must also complete a National City® Commercial Card Cardholder Dispute Form* within 60 days of the billing statement date on which the error first appeared. When doing your monthly transaction review, enter a status of “Dispute Pending” for the disputed charge.
*Form available online at Commercial Card Program page of Materials Management website.

Returns If a cardholder needs to return a purchased item for any reason, please send the item back to the supplier requesting a credit to your commercial card account. The cardholder is responsible for verifying that the credit appears on a subsequent statement.

Damaged Card/Replacement Card If a card is damaged or demagnetized, replacement plastic may be requested. Call the YSU Program Administrator to request a new card. The new card will contain the same number as the current card. The cardholder will be notified by the Program Administrator when the card arrives. The damaged card should be destroyed by the cardholder---making sure that your account number is not recognizable to anyone since the new card will contain the same number.

Lost/Stolen Card or Fraudulent Use of Card A lost or stolen commercial card must be reported immediately, just as you would a personal credit card, to the National City 24/7 Lost/Stolen Card Service Department. Inform the YSU Program Administrator in Materials Management during normal business hours, or if after hours, contact the next business day, by calling 330-9413166. Prompt notification will help protect National City against fraudulent use. Upon receipt of call, National City will block the card from further use and a new card will be promptly sent.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 14

National City Lost/Stolen Card Service Toll-free @ 1-800-533-6596 (within United States) 410-581-9994 (if traveling internationally) Have your card number and social security number ready when calling

The cardholder should complete a Lost/Stolen Card Notification Form (available online at the Commercial Card Program page of Materials Management website) as written confirmation of card loss and fax (3499) to the YSU Program Administrator as a followup to their phone call. If you detect a transaction in PVS Net you believe to be fraudulent, contact National City Lost/Stolen Card Service. Inform the YSU Program Administrator in Materials Management during normal business hours. If reported during evenings and weekends, the Program Administrator can be notified the next business day. The cardholder should enter a status of “Dispute Pending” during transaction review and status update.

Expiration and Reissue of Cards Any active account in good standing will be evaluated for reissue at least sixty (60) days prior to the expiration date embossed on the card. National City Card Services will block an account from reissuing if the account had never been activated. The National City card processor has until the 15th of the month to place the reissue card(s) into the mail. The reissue process is done a full month in advance to accommodate delivery times. Your re-issue card will be sent directly to the Program Administrator in Materials Management who will contact the cardholder when the card arrives. You can continue to use your existing card during this time. A plastic that shows an expiration date of 09/07 will continue to be valid until 10/01/2007. The new card will require the cardholder to contact the National City Activation Center to activate the new card. Purchases on the new card will not be approved until the new card is activated.

CARD MAINTENANCE/CANCELLATION
Maintenance

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 15

If a cardholder needs, or a Financial Manager/Immediate Supervisor requests, any of the following changes to their commercial card account, they should submit a Card Maintenance Form with proper authorizing signature to the Program Administrator in Materials Management. Always provide the cardholder’s name and account number when completing the form. Close Account Name Change for Employee (New Name) Bank Allocation Code (Banner fund, org, program to be charged) Spending Limits Assignment of new grant account

Cancellation Cardholders transferring out of their current department or leaving the employment of Youngstown State University must turn in their card to the Financial Manage/Immediate Supervisor prior to exiting the department. The Financial Manager/Immediate Supervisor is responsible for promptly notifying the YSU Program Administrator by submitting a Card Maintenance Form. The Materials Management Department will take appropriate actions to cancel the card account. If a funding source is eliminated and a cardholder no longer needs their card, it is the responsibility of the Financial Manager/Immediate Supervisor and/or cardholder to complete a Card Maintenance Form to make a request for the account to be closed.

CARD DISCIPLINE PROCESS
Cardholders have been assigned the appropriate delegation of authority to make purchases for Youngstown State University business purposes only. Cardholders are accountable to use the card in a prudent manner to comply with University policies. This disciplinary process is designed to keep the University cardholder on track with the basic responsibilities of the program. Cardholders who violate University policies and procedures set by the Board of Trustees, or as outlined in the Commercial Card Procedures Manual or Select Program Supplement in any of the ways described below will be subject to disciplinary action. A written notification, with reason for disciplinary action, will be sent to the cardholder & Financial Manager. If the cardholder is the Financial Manager, a copy will also be sent to the cardholder’s Immediate Supervisor.  Unauthorized Expenditures

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 16

    

Repeated Failure of Transaction Review and Acceptance Receipt Documentation Failure Pyramiding (dividing one purchase into two or more, in order to stay within your per transaction limit) Intentional use of the card for personal purchases--Will result in card cancellation and the employee will be liable for personal purchases Failure to attend mandatory training session

As to this goal, the following disciplinary sanctions are in place: Warning Memo issued for violation. Probation Cardholder fails to take corrective action or is responsible for multiple violations. Suspension Upon recommendation of the Program Administrator and approval by the Director of Materials Management, repetitive cardholder violators will be suspended for a designated period of time (6 months or 1 year). Suspended cardholders are required to participate in a training workshop to be reinstated in the Commercial Card Program. Cancellation Failure to exercise purchasing fiduciary responsibility following reinstatement may result in cancellation of commercial card privileges.

Appeals Process The right to appeal a disciplinary action taken by the YSU Program Administrator must be exercised in accordance with the following procedures:   A written appeal must be sent to Eileen Greaf, Executive Director of Financial Services. Appeals must be filed within five (5) working days of the issuance of the disciplinary action. Appeals will not be accepted after the allowed period of time.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 17



It is the responsibility of the cardholder to read, understand and abide by the policies and procedures outlined in the Commercial Card Program Procedures Manual and/or Travel Select Program Supplement. Ignorance of these policies and guidelines will not be an acceptable reason for appealing disciplinary action.

FINANCIAL MANAGER/IMMEDIATE SUPERVISOR RESPONSIBILITIES
Financial Managers/Immediate Supervisors with cardholding employees have the following responsibilities:

Commercial Card Issuance:     Complete an Application Form for each employee to be given a commercial card and forward to the Program Administrator in Materials Management. Utilize the Card Maintenance Form for any changes to cards active in the program. Review monthly transactions on PVS Net and replace X’s in the Acct field with a valid Banner account code in the absence of the cardholder. Contact the Program Administrator with any questions you may have.

Important items to consider when completing forms:  The commercial card “delegation of authority” is authorized to cardholders by the Financial Manager/Immediate Supervisor approval of the accounting line usage. The default spending limits are $1,500 per single transaction and $15,000 monthly credit limit per cardholder. Requests for higher spending limits must be made by the Financial Manager/Immediate Supervisor and be approved by the Director of Materials Management. Applicants/cardholders should sign and date the form after review. All forms must be signed by the Financial Manager/Immediate Supervisor and/or cardholder, and forwarded to the Program Administrator in Materials Management.

 

Review and Sign Cardholder Monthly Transactions:
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 18

Your review of the cardholders’ monthly transactions is necessary to ensure cards are properly used in accordance with established University purchasing policies. The cardholder is required to review and assign a status and Banner account code to all credit card transactions on the PVS Net Online System by the settlement range review date deadline, log all transactions on the credit card log sheet and submit original itemized receipts with monthly email Statement of Account to General Accounting. The Financial Manager/Immediate Supervisor must review and sign the Statement of Account before it is forwarded to General Accounting. Your review of receipts will provide you with the line item details of the purchase, since this information is not always available on the PVS Net Online System. Additionally, you are required to make certain that Ohio sales tax was not paid at the point of sale.

Timely Notification of Terminated Cardholders to the Program Administrator: If a cardholder transfers to another department, is leaving the employment of YSU, or a funding source is eliminated and a cardholder no longer needs their card, the Financial Manager/Immediate Supervisor should promptly notify the YSU Program Administrator by mail or fax (3499) by submitting a completed Card Maintenance Form.
* Forms available online at Commercial Card Program page of Materials Management website.

COMMERCIAL CARD SELECT PROGRAM
Refer to the Select Program Supplement for policies and procedures specific to the Select Program. Cardholders must be authorized by Materials Management to participate in this program.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 19

NAVIGATING THE MATERIALS MANAGEMENT COMMERCIAL CARD PROGRAM WEBSITE

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 20

For those of you not familiar with navigating the Materials Management website, here’s how you get there –

It’s Easy! -------Open Internet Explorer (always use when viewing our site), either by clicking the Internet Explorer logo on your desktop, or clicking Start and then Internet Explorer Once there, click the address box and type the following www.ysu.edu/matmgmt/ccard

Press Enter and you will be on the Commercial Card Program page of Materials Management’s website.

Just sit back-------All the information you will need as a commercial cardholder at Youngstown State University will be at your fingertips!

A list of all topics, contained within each link on the commercial card web page, may be found beginning on the next page.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 21

NAVIGATING THE MATERIALS MANAGEMENT COMMERCIAL CARD PROGRAM WEBSITE
The information on the site is designed to serve as an easy guide to the program’s policies and procedures, as well as provide all forms and manuals.

LINKS AND TOPICS WITHIN Manuals Commercial Card Program Procedures What Can and Cannot be Charged Authorized Expenses Unauthorized Expenses Tax Exempt Information YSU Tax Exempt Form Lowe’s Tax Exempt Number Staple’s Tax Exempt Number Walmart’s Tax Exempt I.D. Card Special Usage of Card Sodexho Campus Services Settlement Range Chart FY__ July-December FY__ January-June Report a Lost or Stolen Card Procedure to Report a Lost/Stolen Card Lost/Stolen Card Notification Form Miscellaneous PVS Net Online Help Quick Reference of Resources Tips to Consider When Shopping by Catalog Commercial Card Forms Application Cardholder Agreement Cardholder Dispute Card Maintenance Credit Card Log Sheet Logon Request Prior Settlement Range Receipts Request for Exception Select Program Introduction
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 22

Criteria for Participation How to Apply Application Form Cardholder Agreement Select Program Supplement PVS Net Logon Online Ordering Office Max / Total Office Products Grainger / Superior Industrial Supply YSU Diversity Suppliers Listing Preferred Vendors IUC (Inter-University Council Purchasing Group of Ohio) State Contracts Ohio Industries for the Handicapped Commercial Card Contact Information

FORMS AND MANUALS ON THE WEB
Here is a summary of each form or manual on the website and an overview of its use. When submitting forms, please ensure that you are using the most current version and they are signed by the Financial Manager/Immediate Supervisor and/or cardholder.

Application Form Complete this form to request a visa card for an employee. Cardholder Agreement The agreement with terms and conditions that each cardholder must sign upon receipt of the commercial card. Cardholder Dispute Form Use as written confirmation to National City within 60 days from date of the billing error/dispute. Card Maintenance Form Complete this form for card maintenance (changes) to your card account such as spending limits, bank allocation code (account number), name change, or to close an account.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 23

Credit Card Log Sheet Use this sheet to log all credit card transactions for verifying purchase information against the receipt from the supplier and to record important information needed for payment/auditing purposes. Logon Request Form Use to request or remove a logon/password for an individual to have viewing access to your account on the PVS Net Online System. Prior Settlement Range Receipts Form Use to submit receipts to General Accounting from a prior settlement range. Request for Exception Form Use to request an exception to the commercial card program guidelines. YSU Blanket Certificate of Exemption Present this form to suppliers so Ohio sales tax is not charged. Commercial Card Program Procedures Manual Contains all policies/procedures and instructions on use of the Commercial Card Program at Youngstown State University. Select Program Supplement Contains all policies/procedures and information on use of the Select Program of the Commercial Card Program at Youngstown State University. Select Program Application Form Complete this form to apply for the Select Program of the Commercial Card Program for authorized Travel and Business-Related/Entertainment expenses. Lost/Stolen Card Notification Form Complete as written confirmation of card loss to the YSU Program Administrator.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 24

GLOSSARY OF TERMS

Definitions of Commercial Card Terminology

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 25

Account Number Visa commercial card number appearing on the face of card. Authorized Expenses An expense, which legitimately, may be charged to the commercial card. Bank Allocation Code Banner Fund, Organization and Program established at the bank level at the time a card is set up. It is used for mapping to the Banner Finance System and to populate the Transaction Allocation field on the Transaction Review screen. Banner Account Code An expense code that best identifies the type of expenditure, such as office supplies, computer software, instructional supplies, etc. Capital Equipment An item of tangible personal property which is a unit acquisition costing $5000 or more Card Maintenance Program Administrator performs to make changes to your cardholder account, i.e. spending limits, bank allocation code, cancellation of account Cardholder The University employee who is issued a commercial card. Commercial Card The Visa credit card through National City Bank that we use at the University. Credit Card Log Sheet Cardholders will log all their credit card transactions on this sheet for verifying purchase information against the receipt from the supplier and to record important information needed for payment/auditing purposes. Dispute Refers to a charge placed on your commercial card in which you have a dispute. This could be an item that was not received, was returned, was broken, charged in error, or duplicated, etc. or a fraudulent charge.
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 26

End Date The last day of the settlement range (billing cycle). Fraudulent Charge A charge placed on your commercial card without your prior consent or knowledge. Journal Voucher (JV) The Banner Finance System document that is created when mapping is done. This document, when accepted, will charge your departmental account with the total of your commercial card charges for that settlement range. JV Document Date The date the chargeback for your commercial card purchases will be available to view on the Banner Finance System. Mapping The transfer of information from National City to the Banner Finance System. National City Bank The provider of the Visa commercial card program. Post Date The date the transaction posts (charges) to the National City Bank system. Program Administrator Person(s) in the Materials Management Department of Youngstown State University who administer the program, including card issuance and maintenance, training, assistance, etc. PVS Net The online system secured by National City Bank for the commercial card program. Pyramiding Dividing one purchase into two or more, in order to stay within your per transaction limit.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 27

Receipt For the purpose of commercial card transactions, the term receipt shall be defined as follows: An invoice, credit card slip, sales receipt, packing slip, cash register tape or combination thereof, which contains the following information:     Review Date All cardholders should review, assign status and a valid Banner account code to their transactions by this date. Settlement Range Reflects the “billing cycle period” – any transactions posted (charged) to your account during this range are considered posted to your account for that month. Settlement ranges run from mid-month to mid-month. Spending Limits The credit limits set up when the card is created. There are two spending limits: Per Transaction Limit Allowable amount to be charged per transaction Monthly Credit Limit Allowable amount to be charged per month Start Date The first day of the settlement range (billing cycle). Statement of Account A statement listing all transactions that posted to a cardholder’s account during the settlement range. This statement is automatically sent through email each month by National City to any cardholder with transactions for that month. This statement must be signed and forwarded with original receipts to General Accounting. Status Cardholder indicates the status of a transaction when monthly transaction review and acceptance is done. Available status codes are Not Reviewed, Accepted, Dispute Pending or No Receipts.
___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 28

Name of Supplier Date of transaction Description of the item(s) purchased Purchase Amount

Status Update The process of updating each card transaction with the proper status code. Supplier A merchant a cardholder transacts business with. Transaction Allocation A Banner FOAP (Fund/Organization/Account/Program) assigned to each transaction. The Fund, Organization and Program information in this field comes from the Bank Allocation Code that is established at the bank level when the card is set up. The Account information is entered by the cardholder at the time of transaction review. Transaction Date The date the charged is incurred with the supplier. Transaction Review The query report generated to review and status your monthly charges. Unauthorized Expense An expense which may not be charged to the commercial card.

___________________________________________________________________________________________ Commercial Card Program Procedures Manual Page 29


				
DOCUMENT INFO