Procurement Card Guidelines Oklahoma State University Tulsa Campuses The Oklahoma State University purchasing card (Procard) program was established and approved by the Board of Regents in 2001 to facilitate the acquisition of lower dollar goods and services needed for conducting official University business. The following information can not cover all aspects of procard policy and procedures. Exceptional cases will be resolved as circumstances and prudent business practices warrant on a case-by-case basis. Other documents of reference include the Oklahoma State University Purchasing Card Policies and Procedures and Purchasing Policies and Procedures. 1 DEFINITIONS: 1.1 Statement Period: Is the period in which charges begin and end. For example, 06/21/2006 – 07/20/2006, all transactions initiated by the cardholder from the 21st of the month to the 20th of the next month will be within one statement period and must be recorded on transaction log as transaction occur, not after they post to the bank statement. 1.2 Invoice/Receipt: Must support each purchase and shall consist of the following: vendor’s name, date of transaction, an itemized description of what was purchased as well as an itemized description of charges. (Packing list is accepted) otherwise it is determined you have a missing receipt. 1.3 Sub-codes: Sub-codes indicate the type of goods and services provided by the merchant. Each sub-code represents a particular part of your budget as well. It is important that monies are taken out of the correct sub-account so that your financial reports show exactly where the departmental funds are allocated. Close attention must be given to which sub-code is being used. 1.4 Split Purchasing: Is dividing or failing to consolidate a known quantity of goods of service for the purpose of evading the procard single transaction limit or the limit established for an individual. For an example: If you have the knowledge that 3 computers are needed in your department and 3 people purchase one each on their Procard, to avoid the requisition process. Another example: If the vendor is running your transaction twice to complete one purchase, indicate your single credit limit is being exceeded. The limit for most cardholders is $2,500 per transaction and upon approval can be raised to 5,000 per single purchase. 1.5 Transaction: Transaction means a single purchase or credit. Procurement Card Guidelines 2 PROCARD ORGANIZATION: 2.1 OSU Director of Purchasing: Responsible for management of the Procard program. 2.2 OSU Procard Administrator: The Purchasing Department staff member designated to assist the Purchasing Director with implementation and operation of the procard program. 2.3 Approving Officials: One or more unit, departmental or university staff members designated by the Vice President, Dean or Department Head to review and approve cardholder transactions. 2.4 Cardholders: Staff members designated by the Vice President, Dean or Department Head to execute purchases using their assigned procard. 2.5 Purchase Card Employee Agreement: Approving Officials and Cardholders must sign the OSU Purchase Card Employee Agreement Form prior to assuming their duties and being issued Procards. 3 ISSUANCE OF THE PROCARD: 3.1 The Procard is issued by Oklahoma State University in coordination with a bank. The Procard will include the institution’s name, tax ID, cardholder’s name, cardholder’s department, and unique individual account number. 3.2 Cardholder must be an Oklahoma State University permanent employee (.75 FTE and above) 3.3 Procard shall not be issued to temporary employees. 3.4 Student Organization Cards are available. 3.5 Only the advisor, president, and/or treasurer of the student organization are eligible for a card. 3.6 The advisor, president and/or treasurer must have procard training before a card will be issued to the organization. 3.7 These funds are taxable. 3.8 Student organizations can buy nearly anything except alcohol. 3.9 The Purchases must be appropriate. Procurement Card Guidelines 3.10 The card must be kept in the office and checked out by the student to make the purchase. 3.11 The card must be returned, along with the receipt, after the purchase is made. 3.12 Property of Oklahoma State University: All Procard issued under this program is the property of Oklahoma State University and shall be surrendered to the Supervisor, Human Resources or the Purchasing Director upon request or upon termination of employment. 4 PROCARD LIMITS: 4.1 The Department head, Vice President and Purchasing Director are required to approve the credit limits on each Procard as required by the bank. 4.2 Single purchase limit shall not exceed $5,000 per vendor, per month or limits established by said officials. (Including all shipping, handling, freight, etc.) 4.3 Single purchase limit for student organizations shall not exceed $100.00 per vendor, per month or limits established by said officials. (Including all shipping, handling, freight, etc.) 4.4 Monthly purchase credit limit shall not exceed $50,000 per billing cycle. 4.5 Monthly purchase credit limit for student organizations shall not exceed $2,500.00 per billing cycle. Note: Quotes are not required but, are strongly recommended that you secure a minimum of two quotes. After determining that the anticipated purchase does not conflict with University policies, the cardholder may select a vendor who has the best price. 5 RESPONSIBILITY OF DEPARTMENT: 5.1 Total responsibility and accountability for the procard records resides at the departmental level. All records must reside with the department upon designated employee termination. 5.2 Procard records are not to leave the department upon transferring to a different department. Department Procard records shall be maintained in a central location within the department. Records shall include, but are not limited to, transaction logs, receipts, invoice, and bank reconciliation form, dispute documents, food request form and any other pertinent documents whether in paper or electronic form. Procurement Card Guidelines 5.3 It is the department responsibility to retain all procard records. All records shall be maintained as prescribed in OSU Policy and Procedures. Records shall be archived and not disposed at a minimum of ten years and then approval to destroy shall be given by the record retention personnel. Accounting records shall be maintained in the appropriate departmental accounting office 6 CARDHOLDER RESPONSIBILITIES: 6.1 Cardholder must reconcile the individual receipts to the transaction log to verify that purchases and returns are accurately listed and charged to the appropriate account. The cardholder is responsible for the purchases, as well as obtaining appropriate documentation, and maintaining a Transaction Log. The cardholder shall sign the Transaction Log and date the signature, indicating that the cardholder did make those purchases. 6.2 The cardholder is responsible for and accountable to the University for all charges made with the Procard. Use of the Procard is solely for official University purchases. Personal purchases are strictly forbidden and may result in a disciplinary action. 7 APPROVING OFFICIALS RESPONSIBILITIES: 7.1 Approving officials shall review documentation for accuracy, completeness, appropriateness of the purchase, and whether the transactions were conducted in accordance with policies and procedures. 7.2 The approving official shall sign and date the Transaction Log indicating that the purchases were reviewed and reconciled. Anything posted to PVSNET shall be recorded on a Transaction Log either within this statement period or on a previous Transaction Log. 7.3 Any issue which cannot be resolved between the approving official and the cardholder shall be brought to the immediate attention of the cardholder’s supervisor. Note: A cardholder can be the approving official in PVSNET however; the cardholder shall not be their own approving official on the Transaction Log. 8 PROCARD TRAINING: 8.1 All training is conducted in Stillwater by the Procurement Card Administrator. Except authorized by the Purchasing Director. 8.2 The departmental approving officials and cardholders must successfully complete the training prescribed by the OSU Purchasing Director prior to being issued their Procard or assuming their official approving duties. Procurement Card Guidelines 8.3 After training is completed the following three forms must be submitted to the Tulsa campus Procard Coordinator to ensure completion and accuracy before sending to Stillwater for processing. These forms must be complete with all signatures before processing can begin. It will take approximately three weeks for processing. Procard will be mailed to Tulsa Procard Coordinator to be picked up at your convenience. 8.3.1 Commercial Card Cardholder Account 8.3.2 Employee Agreement 8.3.3 Web Access Form Note: These forms must obtain off the Tulsa web site since the Vice President signature is a requirement before any application can be processed. 9 REBATES: 9.1 Rebate checks are generally applied to a ledger one account (general funds of the university) However, rebates can be applied to your ledger 2, 3 or ledger 5 account upon request. 9.2 Mail in rebate is most common and usually the vendor will make the cardholder the recipient of the rebate check rather than the university. Cardholder shall sign the check over to the university and send it to the OSU Tulsa campuses Procard Coordinator for deposit with a memo including the appropriate account information for deposit. 9.3 If you receive an in store credit card; it shall be used for university purchases only. (This in store credit card is not for personal use) 10 SERVICE AGREEMENT: Service Agreement must be in place prior to construction/repair services and must be executed by the Director of Purchasing. For further instruction please contact the Purchasing Department. 11 MAINTENANCE AGREEMENT: This agreement must be executed by the Director of Purchasing and can not exceed $2,500 per year. This agreement is initiated by the department then the request is sent to vendor by the Purchasing Department. The agreement goes into effect after the director of purchasing as approved. The Purchasing Department keeps the original document on file and sends a copy for your procard records. 12 LICENSING AGREEMENTS: Are allowed on your procard however, can not exceed your procard limit per vendor, per month. Note: Director of purchasing must review and sign all contracts requiring a signature. No lease agreements are allowed on Procard. Procurement Card Guidelines 13 CONTRACT: OSU Purchasing Department has competitively bid various contracts for products, goods and services for the use of the university. OSU employees strongly advised to use these competitive prices. Contact the purchasing department for a complete listing of contracts. 14 CONFERENCE: The procard may be used for conference registration fees. Before registration can be made ensure that the following criteria are met: 14.1 Early Registration discount 14.2 100% refund if conference itself is cancelled 14.3 Transferable Note: An OSU Conference Registration form (Conference Registration Form (DOC)) must be completed and attached to procard record if these three are not clearly stated. In addition, if travel is involved with this conference you must keep a copy of travel form (blue form) with registration form to be view upon auditors auditing procard records. 15 TRAINING FEES: Payment is allowed upon supervisor’s approval in writing and a copy of approval attached to procard records. Training can be taken on-line or in class room. If you are conducting a training it can also be used to contract equipment (such as audio or video equipment), and training rooms. 16 INSTITUTIONAL MEMBERSHIPS: Institutional memberships are allowed. This membership should be listed in the name of OSU and transferable if the member separates from the University. An OSU Membership registration form (Membership Dues Form (DOC)) must be completed and attached to the procard record. 17 INDIVIDUAL MEMBERSHIPS: This membership is prohibited. This is a personal membership and is exclusively for applicant and is not transferable in the event of separation from OSU. 18 NOTARY: If your job description states that being a notary is a part of your job duties, payment is allowed. 19 LOST RECEIPTS: If receipts are lost, the cardholder shall note the loss on the Transaction Log and complete a Missing Receipt Form. The bank can provide a copy for a fee, which will be charged to the cardholder’s account. Repeated loss of receipts may be grounds for discontinuing a cardholder’s procard use or other disciplinary action. 20 GRANTS AND CONTRACTS: There shall not be any postage stamp charges, gas card or gift cards purchases. When the procard is used for grant or contract purchases, those purchases must comply with the terms and conditions of the Procurement Card Guidelines award, award budget, and all OSU purchasing policies and procedures. Purchases must also be made within the time frame of the award. If a purchase is made on a contract or grant, agency award requirements will dictate the length of time that the department must maintain the receipts to support the purchase and be available for audit. (Reference OSU Policy and Procedures Letter “Records and Documents Retention, Security and Control” #3-0190) If procard purchases from a grant or contract are determined (by audit or otherwise) to be unallowable on the grant or contract, charges will be transferred to the employee’s department. 21 LOST OR STOLEN CARDS: Immediately upon determining that a Procard is lost or stolen, the cardholder shall notify Bank One at 800-843-2813 or 800-316- 6056. These numbers are available 24 hours per day. Cardholders should keep these phone numbers readily available but separate from the card. (Note: When calling these numbers, you may be asked to input the first four digits of the card number. If you do not know this number, hold for a customer service representative.) Upon notification, the customer service representative will block the use of the card. The cardholder shall record the date and time the bank was notified, as well as the name of the bank customer service representative contacted. Next, the cardholder shall complete a Lost or Stolen Procard Notification Form and promptly provide it to the Purchasing Department with a copy to the appropriate approving official. The cardholder’s department is responsible for all charges incurred against a lost/stolen card until the card is reported to the bank as lost or stolen. 22 A TYPICAL PROCARD TRANSACTION FLOW: 22.1 Transaction Flow for Cardholder: 22.1.1 Cardholder makes purchase from Vendor 22.1.2 Cardholder record current date transaction was initiated on Transaction Log 22.1.3 Cardholder retain receipt including those via phone, fax, internet or point of sale 22.2 Transaction Flow for Vendor: 22.2.1 Vendor delivers goods or services 22.2.2 Vendor submit transaction to bank for payment 22.2.3 Vendor receives payment from bank 23.3 Transaction Flow for Bank: 22.3.1 Bank pays vendor 22.3.2 The bank furnishes OSU cardholders with a bank statement indicating purchases made for current statement period. This statement will come about one week after billing cycle end. Note: OSU will make timely payment to the bank for all credit card purchases without regard to individual discrepancies in transaction billing. 23 Transaction Flow for OSU Accounting Department: Procurement Card Guidelines 23.1 OSU Accounting Department makes a single payment to the bank on behalf of all OSU departments. The Accounting Department debits/credits departmental accounts after the reconciliation deadline. 24 Transaction Flow for Cardholder and PVSNET Approver: 24.1 Cardholder reconciles receipts to transaction log and bank statement and forwards to the approving official. 24.2. Approver official has 3 to 4 calendar days after billing cycle ends to update in PVSNET. 25 PROCARD MISUSE/VIOLATIONS AND RESOLUTIONS: 25.1 Cardholder sharing or loaning his/her Procard – First occurrence will result in the lowering of the procard limit to $3 and additional training will have to be completed before privileges are reinstated. Second offense will result in revocation of the card until further notice from Purchasing Director. 25.2 Using Procard for personal use - First occurrence will result in the lowering of the procard limit to $3 and additional training will have to be completed before privileges are reinstated. Second offense will result in revocation of the card until further notice from Purchasing Director. Third offense is possible termination of employment with OSU. 26 CHARGES EXCLUDED FROM PROCARD: Note: For other methods of payment please contact the purchasing department. 26.1 Split Purchases: See 1.4 26.2 Sales tax: Notify vendor of exemption however, taxes may be charged from out of state vendors. (They may not honor our exemption.) 26.3 Cash: Cash advances, automated teller machine (ATM) transactions 26.4 Decoration: for private offices including lamps, flowers, trees, etc. 26.5 Gift Certificates 26.6 Travel expenses: including but not limited to airline tickets, food and beverages, lodging, travel agencies, and other items that normally would be paid on a travel voucher. (Reference travel policy) 26.7 Personal items: such as flowers, candy, haircuts, meals, etc. Procurement Card Guidelines 26.8 Trade-in: Purchases involving trade- in of University property. 26.9 Conflict of interest: As with any purchase made for the University, a cardholder shall not purchase goods or services from a member of their immediate family or realize personal gain. The cardholder shall inform his/her supervisor in writing of reasonable foreseen potential conflicts of interest. 26.10 University Departments/Auxiliaries: Goods or services available from University sources, such as a conference given by OSU, Student Union Bookstore in Stillwater, or riding the bus to and from Stillwater (use the Campus Vendor system). 26.11 Gasoline: should be purchased from Transportation Services or with a gasoline credit card. 26.12 Mail: All U.S. mail, including parcel post, certified, and registered mail, should be sent through Central Mailing. 26.13 Professional/Personal services: Rendered by individuals, corporations, partnerships, or any other entity, including but not limited to consultants, attorneys, physicians, engineers, architects, public accountants, or computer programmers. 26.14 Food Purchases: Due to stringent requirements related to purchases of food with state funds. A food request form Food Request Form (DOC) must be approved by your department head and submitted to the purchasing director for his approval before you commit to food purchase. 26.15 Other purchases not permitted under OSU Policy and Procedures. 27 PROCARD CANCELLATION: All procards issued under this program are the property of Oklahoma State University and shall be surrendered to the department administrator upon termination of employment with the department that authorized the card, or upon request of the cardholder’s supervisor, department procard approver, or the OSU Purchasing Director. When a procard is cancelled, the department’s approving official must reclaim it and return the card to the procard coordinator along with a Cardholder Application Form marked for deletion. 28 MISUSE OF THE PROCARD: Misuse of the procard in any manner by a cardholder may result in revocation of the privilege to use the procard, disciplinary action, termination of employment, and/or criminal charges being filed with the appropriate authority. Procurement Card Guidelines Note: Any violation of procard policy could result in your procard limit being lowered to $3 and training completed before privileges are reinstated. 29 AUDITS: The objective of the audit will be to determine compliance with University Policy and Procedures. On a daily and or a monthly basis the procard coordinator will review a report of all procard transactions posted on your card. In addition a yearly on site audit will be conducted and at that time we will request original copies of procard records for review. You will then receive a copy of the audit findings and recommended changes for your review and correction. Corrections must be completed and a copy submitted to the Procard Coordinator.
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