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									                                 University of Northern Iowa
                                Office of Business Operations
                              Purchasing and Accounts Payable




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                                                                1 of 37
                                  Table of Contents
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1.   Introduction
2.   Obtaining a Card and Other Subsequent Activities
3.   Cardholder’s Responsibilities
4.   Using Your Procurement Card
5.   Reconciliation and Review Process
6.   Types of Violations & Disciplinary Action
7.   Contact Information




     Note: To view definitions for various words and phrases throughout the tutorial, click on the
     purple box at the lower right corner of the screen. Also, there are hyperlinks to various sources
     that contain valuable information and documents.

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                                       Introduction

The Procurement Card (Procard) is a VISA credit card, issued by US Bank/
   Élan Financial Services showing the name University of Northern Iowa and
   the individual cardholder’s name.

The Procurement Card is designed to provide a more efficient and cost-
   effective method for departments to purchase small dollar, commonly used
   items, specifically transactions less than $5,000.

          •    Timely payment to vendor
          •    Reduce paperwork
          •    Reduce time
          •    Ability to dispute a charge




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              Obtaining a Card and Other
                Subsequent Activities
         What is the objective of this section of the tutorial?
             This section of the tutorial will give specific instructions about the following:
                    • How to apply for a new Procurement Card
                    • What happens when a Cardholder transfers to another department
                    • What happens when the Cardholder’s address changes
                    • Requesting a credit limit increase or decrease
                    • What happens when the card is cancelled, the cardholder is terminated, or retires.




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             Applying for a New Procurement Card
 1. Locate the University Procurement Card Application & Agreement on the Office of
    Business Operations webpage. The application is two (2) pages in length.
            all informationEmployee whose for all charges on
 2. TypeCardholder: Universityand is accountable name appearsline located in the top section of the University
          the Procurement Card
                                   on the appropriate
    Procurement Card Application & Agreement.
          made with that card.

 3. Once the information is completed, print the form.
 4. Acquire the necessary signatures:
         a) Cardholder signature (required)
         b) Department Head approval signature (required)
         c) Dean/director approval signature (necessary if they are the direct supervisor
               of the future cardholder)
 5. Make one copy of the signed document, both pages, for personal future reference.
 6. Send original paperwork to Purchasing and Payables/Business Operations, Mail
               Departmental Head: University employee who is
    Code 0008. responsible for supervising a specific department of the
               university. One of the departmental head’s duties is the
                                                         an the
 7. When the application is approvedwithin email will be sent to the future cardholder, which
               oversight of Procurement Card activities
    will include a training PowerPoint presentation, the Procurement Card Manual, and a
               department.
    quiz in the form of a crossword puzzle. The email will detail the expectation of the
    cardholder for training and remittance of the quiz prior to picking up the Procurement
    Card.

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    Applying for a New Procurement Card (cont.)

8. The applicant will be contacted by the Purchasing and Payables/Business
   Operations (OBO) with questions concerning the application or when the
   card arrives to set up a time to pick up the Procurement Card in person.
9. OBO must have a signed quiz in order to pick up the Procurement Card. At
   the time of pick up, the cardholder will be required to sign the back of the
   card.




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   Cardholder Transferring to Another Department
 1. Locate the University Procurement Card Application & Agreement on the Office of
    Business Operations webpage. The application is two (2) pages in length.
 2. Type all information on the appropriate line located in the top section of the University
    Procurement Card Application & Agreement.
 3. Once the information is completed, print the form.
           Cardholder: University Employee whose
 4. Indicate on top Card and is accountable name appears on
           the Procurement
                             of the application/agreement:
                                                       for all charges
          a) Name of old department and “transferred to” name of new department
           made with that card.

                 (i.e. Prior department was Biology – transferred to the Library)
          b) The last 4 digits of your current procurement card number.
 5. Acquire the necessary signatures:
          a) Cardholder signature (required)
          b) Department Head approval signature (required)
          c) Dean/director approval signature (necessary if they are the direct supervisor
                 of the future cardholder)
 6. Make one copy of the signed document, both pages, for personal future reference.
      Departmental Head: University employee who is
      responsible for supervising a specific to Purchasing and Payables/Business Operations, Mail
 7. Send original paperwork department of the
      university. One
    Code 0008.of the departmental head’s duties is the
      oversight of Procurement Card activities within the
        The Procurement Card cannot be transferred to another individual.
 Note:department.
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                     Change of Address of Cardholder

1. Notify Purchasing and Payables/Business Operations, Mail Code 0008, in
   writing (e-mail is acceptable, procard@uni.edu) the following information:
          a) Cardholder Name
          b) Last 4 digits of card number
          c) New address
2. Person requesting the change of address must be the cardholder,
   departmental secretary or department head.



        Departmental Head: University employee who is              Cardholder: University Employee whose name appears on
        responsible for supervising a specific department of the   the Procurement Card and is accountable for all charges
        university. One of the departmental head’s duties is the   made with that card.
        oversight of Procurement Card activities within the
        department.




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                         Monthly Credit Limit: The total dollar amount of purchases that
                         can be made on one procurement card during each month.




   Request Permanent Credit Limit – Increase or
                  Decrease
 1. Locate the University Procurement Card Application & Agreement on the Office of
    Business Operations webpage. The application is two (2) pages in length.
 2. Type all information on the appropriate line located in the top section of the University
    Procurement Card Application & Agreement.
 3. Once the information is completed, print the form.
                                application/agreement:
 4. Indicate on top ofEmployee whose name appears on
      Cardholder: University
                “Credit and is accountable for all charges
          Procurement Cardlimit change only”
      thea)
      made with that card.
         b) The last 4 digits of your current procurement card number
 5. Acquire the necessary signatures:
         a) Cardholder signature (required)
         b) Departmental Head approval signature (required)
         c) Dean/director approval signature (necessary if they are the direct supervisor
               of the future cardholder)
                                 signed document,
 6. Make one copy ofUniversity employee who is both pages, for personal future reference.
         Departmental Head:
         responsible for paperwork to department
 7. Send original supervising a specifichead’s dutiesof the and Payables/Business Operations, Mail
         university. One of the departmental
                                             Purchasingis the
    Code 0008.Procurement Card activities within the
         oversight of
           department.

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        Cardholder: University Employee whose name appears on
        the Procurement Card and is accountable for all charges
        made with that card.


               Cancellation/Termination/Retirement

1. The cardholder or the cardholder’s department must notify Purchasing and
   Payables/Business Operations, Mail Code 0008., in writing (e-mail is
   acceptable: procard@uni.edu) the following information:
          a) Cardholder name
          b) Last 4 digits of card number
          c) Effective date of cancellation
2. Person requesting cancellation must be cardholder, departmental secretary
   or department head
3. Destroy and discard the Procurement Card upon cancellation.




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               Cardholder’s Responsibilities

         What is the objective of this section of the tutorial?

           This section will describe…
           •    Card plate and card number safekeeping
           •    Who is authorized to use the cardholder’s Procurement Card
           •    Internet transactions
           •    What happens if the card is lost, stolen or misplaced
           •    Procurement Card List Serve




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                              Card   Plate: The physical procurement card itself.




        Card Plate and Card Number Safekeeping

     The card is the property of The University of Northern Iowa. All cards when
     not being used should be stored in a secure location. Cards should not be
     carried in the cardholder's purse or billfold on an ongoing basis
     because of the possibility of it being lost or mistakenly used in place of a
     personal credit card.




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        Cardholder: University Employee whose name appears on
        the Purchasing Card and is accountable for all charges
        made with that card.


                                               Authorization

     In some instances another staff member (secondary user), other than the
     cardholder, may need to use the Procurement Card. The cardholder must
     expressly approve the use of the card by the secondary user. No
     written documentation is required. The cardholder still remains
     responsible for all purchases made by the secondary user, including
     retention of receipts and documentation related to the purchase as agreed
     to in the University Procurement Card Application & Agreement.




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                              Internet Auctions

     The Procurement Card may be used for purchasing items through the
     websites of established reputable companies. The Procurement Card may
     not be used for purchases from online auctions (i.e. E-bay, uBid.com,
     Overstock.com). There is no recourse for items purchased on these
     websites.




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                     Lost, Stolen, or Misplaced Card

     Should a card be lost or stolen, the cardholder or the cardholder’s
     department is responsible for notifying US Bank at 800-344-5696, UNI
     Accounts Payable at 319-273-2162, and UNI Public Safety at 319-273-
     2712 in the event of a local theft.




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                        Procurement Card List Serve

     In order to communicate urgent or important information to cardholders in a
     timely manner, the University of Northern Iowa Office of Business
     Operations requires all cardholders to be enrolled in the Procurement Card
     List Serve.




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          Using Your Procurement Card

         What is the objective of this section of the tutorial?
            This section provides information on the following:
                   •Dollar limitations on the card
                   •How to handle purchase incentives from vendors
                   •How to handle purchase returns
                   •Who are the preferred vendors
                   •Examples of eligible charges to the Procurement Card
                   •Unauthorized charges to the Procurement Card
                   •How to handle sales tax
                   •Collecting receipts and other supporting documentation



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                                            Monthly Credit Limit: The total dollar amount of purchases that
                                            can be made on one Procurement Card during each month.


                              Dollar Limitations

     The Procurement Card single transaction limit will be $5,000, with
     departments having the option of setting their limit lower. The monthly
     credit limit will be determined by the cardholder’s department, Business
     Operations and US Bank based on departmental need. The maximum
     monthly credit limit allowed per card per month will be $5,000, unless
     special approval has been obtained from Tori Stafford, Purchasing and
     Payables Manager, ext. 3-2253. Once the card has reached its monthly
     limit, it will be denied by vendor.




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                              Purchase Incentives

     At times University purchases may result in cash or cash-like value
     incentives. The cash and/or incentives are the property of the
     University and may not be used for personal gain. Examples of such
     incentives include, but are not limited to: rebates, gift cards, two-for-one
     purchases and spend rewards. The University recommends that
     cardholders not participate in these promotional offers. It's the
     responsibility of the cardholder to be assured that any monetary or cash
     incentive reward received as a result of a University of Northern Iowa
     purchase becomes the property of the University.

                                                                   (continued…)




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                              Purchase Incentives
      (…continued)

      If there is a cash purchase incentive attached to the purchase, then try
      to receive the cash incentive as a credit to the Procurement Card. If
      credit to the card is not feasible, then deliver the currency or check to
      the cashier’s office. Refer to the “Depositing Cash Receipts” quick
      reference guide under the MEMFIS website
      (http://www.vpaf.uni.edu/memfis) for further instruction. The funds should be
      deposited to the account the original charge was made to. If a purchase
      incentive is received in the form of a gift card, retain the gift card within the
      department and use for future allowable purchases based on funding.
      Contact Purchasing and Payables if further clarification is needed.




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                                                Returned for Credit: When an item that was purchased with the
                                                Procurement Card is returned to the merchant, the dollar amount of the
                                                original purchase price must be credited back to the Procurement Card. No
                                                cash is received. In-store credit is not considered returned for credit.


                               Procurement Card Returns

     Any item that is returned must be returned for credit to the card if
     possible. Do not accept in-store credit. If credit to the card is not
     feasible, then deliver the currency or check to the cashier’s office.
     Refer to the “Depositing Cash Receipts” quick reference guide under the
     MEMFIS website (http://www.vpaf.uni.edu/memfis) for further instruction.
     The funds should be deposited to the account the original charge was made
     to. If a purchase return is received in the form of a gift card, retain the gift
     card within the department and use for future allowable purchases
     based on funding. Contact Purchasing and Payables/Business
     Operations if further clarification is needed.
       In-store credit: When returning an item purchased from a merchant, the merchant
       issues a refund in a form such that the purchaser can only use the returned funds to
       make purchases from the original merchant and not a different merchant.




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                                   Preferred Vendors
    Cardholders are asked to make purchases from vendors with which the
    University of Northern Iowa holds a contract (preferred vendors). There
    are two cases in which the cardholder may use a non-contracted vendor.

         Case 1- The item is unavailable from contracted vendors. If using non-
         contracted vendors, then make the purchase from the lowest priced
                          Campus Supply: An on-campus office supply center, plus other services.
         vendor.          Refer to the website for details.

                              http://www.vpaf.uni.edu/fs/campussupply/index.asp
         Case 2- If substantial savings can be found from another vendor other
         than preferred vendors, cardholders may make the purchase from another
         vendor if they document the substantial savings. For example, University
         policy requires office supply purchases are made through the OfficeMax
         website. If the office supply item is not available, then the purchase can
         be made elsewhere with approval from Campus Supply. However, if the
         item is available through OfficeMax, cardholders can only buy office
         supplies from other vendors if they document a substantial savings
         compared to OfficeMax.

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                              Eligible Charges: Purchases that are allowed to be made with
                              the Procurement Card.




                Examples of Eligible Charges to the
                         Procurement Card
      The general rule is that each purchase with the Procurement Card
      must have a business purpose that benefits the public and the
      University. Document in detail the business purpose for the purchase
      for review.

 1.   Airline Tickets (Allowable Travel Expense)
 2.   Conference Registrations (Allowable Travel Expense)
 3.   Express Freight (Federal Express, Airborne Express, UPS etc.)
 4.   Laboratory supplies
 5.   Maintenance expenses
 6.   Office equipment
 7.   Office supplies


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  Unauthorized Charges to the Procurement Card
 1. Animals                                 9. Purchases involving trade of University
 2. Automotive parts/repairs – unless           property
    approved by Motor Pool                  10. Radioactive materials and hazardous
 3. Business                                    materials
    cards/letterhead/envelopes – should     11. Telephones and related equipment
    be purchased through Print              12. Individual employee travel expenses
    Services.                                   such as hotel rooms, meals, car
 4. Controlled substances                       rentals and parking fees (must submit
 5. Gasoline – unless approved by               a Travel Reimbursement Form to
    Motor Pool                                  Purchasing and Payables/Business
 6. Interdepartmental purchases                 Operations unless you have received
                                                approval and signed a Travel
 7. Personal items and personal                 Addendum)
    expenses
                                            13. Weapons and ammunition
 8. Personal gifts to individual
    employees (i.e. flowers for a funeral
    unless foundation funding is
    available and approved in advance)

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                                  Sales Tax
      Inform vendors that the University is sales tax exempt!!

      Sales tax can frequently be avoided by providing or drawing attention
      to the tax identification number imprinted on the card.

      The University of Northern Iowa, as a state educational institution, is exempt
      from paying state sales tax or local option sales tax on goods or services
      purchased in the state of Iowa. Payment of hotel/motel taxes is still
      required. Other states also grant tax exempt status to the University for
      goods or services purchased while in their state. As indicated on the list of
      the University’s tax exempt states, a form or copy of a letter is usually
      required. These forms or letters may be obtained by contacting LuAnn
      Andreessen at (319) 273-3116 or luann.andreessen@uni.edu. If there are
      inadvertent sales tax charges on the Procurement Card, contact Kathy
      Schwanz, ext. 3-3516. The tax exempt certificate can also be downloaded
      from the Office of Business Operations website.

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  Receipts and Other Supporting Documentation
      Supporting documentation of each Procurement Card purchase must be
      submitted to Purchasing and Payables/Business Operations. As purchases
      are made throughout the month, the cardholder is responsible for
      retaining supporting documentation from each purchase. Supporting
      documentation includes any of the following:
         a) Invoices
         b) Detailed cash or sales receipt
         c) Packing slips with dollar amount
         d) Billing statements
         e) Conference registration forms
         f) Internet confirmations




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  Receipts and Other Supporting Documentation

All supporting documentation must include:
       a) Supplier name
       b) Amount
       c) Date
       d) Itemized description of items purchased
       e) Airline ticket documentation must include the ticket number

     Failure to supply supporting documentation may result in suspension of
     procurement card privileges.




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  Reconciliation and Review Process

         What is the objective of this section of the tutorial?
                              This section describes…
                              •The general rule for Procurement Card purchases
                              •The reconciliation process
                              •Late documentation notification process
                              •Other items




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                Reconciliation and Review Process


      The Office of Business Operations monitors procurement card program
     activity. Purchasing and Payables staff reviews all procurement card
     transactions prior to processing individual journal entries. The general rule
     is that each purchase with the Procurement Card must have a
     business purpose that benefits the public and the University.
     Document in detail the business purpose for the purchase for review.




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                Reconciliation and Review Process
 Step 1 - Reconcile Receipts- Cardholders upon receiving monthly billing statements,
    must reconcile receipts to amounts shown on the billing statements.

 Step 2 - Resolve – It is the responsibility of the cardholder to resolve discrepancies. If
    there are charges the cardholder wishes to dispute, it is the responsibility of the
    cardholder to first contact the supplier to seek resolution. If efforts to resolve the
    problem directly with the supplier fail, the item in dispute is charged to the department
    account and the cardholder should contact US Bank for procedures to initiate the
    dispute.

 Step 3 - Complete Paperwork - Refer to the “Procurement Card Processing” quick
    reference guide under the MEMFIS website (http://www.vpaf.uni.edu/memfis) for form
    processing instructions. Cardholders must validate and distribute charges to the
    appropriate fund/account combination, sign and date the journal entry form, obtain
    approval from the department head and forward the journal entry form, monthly
    statements and supporting documentation to Purchasing and Payables, Mail Code
    0008. All documentation should be received by Purchasing and Payables/Business
    Operations by the 18th of the month to be included in the current month’s
    accounting. All card charges and associated fees are the responsibility of the
    cardholder’s department.
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                Reconciliation and Review Process
 Late Paperwork - If documentation is not received by the 18th of each month,
    then…
       a) 1st Reminder Notice (18th of the month) – Cardholders that have not
          completed their journal entry spreadsheet will receive an email from
          Purchasing and Payables/Business Operations.
       b) 2nd Notice (Last business day of the month) – Cardholder receives an
          email stating the journal entry and/or documentation is needed within
          two weeks.
       c) 3rd Notice (10th business day of the following month) - Cardholder
          receives an email and phone call with the possibility of reducing the
          card monthly limit.
       d) 4th Notice (21st business day of the following month) – Cardholder
          and department head/supervisor is notified. The journal entry and/or
          documentation is needed within two weeks or there may be a
          reduction of the monthly limit.

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                Reconciliation and Review Process

Other Items:

The Office of Business Operations maintains originals of all procurement card documents
   in a central location.

The University issues one payment each month to US Bank/ Élan for the total
   procurement card charges.

The University of Northern Iowa Internal Audit Department may periodically review and
   audit procurement card procedures and transactions of departments and colleges.
   The Internal Audit Department may review some procurement card transactions
   during departmental audits.




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 Types of Violations & Disciplinary Action

         What is the objective of this section of the tutorial?

                   This section describes…
                   • Types of violations when holding a Procurement Card
                   • Disciplinary action




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Procurement Card Journal Entry Form: This is a journey entry form used by

                                           Types of Violations
Purchasing and Payables. The cardholder must use this form to detail the
transactions such as merchant name, item description, amount and item purpose.
Also this form is used to specify what accounts the purchases will affect.




 1. Unallowable purchases
 2. Unacceptable documentation
 3. Late submission of procurement card journal entry form, monthly
    statements and supporting documentation (due 18th of each month)
 4. Unresolved item disputes
 5. Splitting charges to avoid the transaction limits. (i.e. If the transaction limit
    is set at $1,000, then one $2,000 transaction cannot be split into two
    transactions to avoid the transaction limit.)
 6. Violation of Procurement Card Guidelines

                                                                      Supporting Documentation: A merchant produced or non-University
                                                                      document that records the relevant details for each item purchased
                                                                      including quantities, amounts, a description of what was purchased, the
                                                                      total charge amount and the merchant's name and address.




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                              Disciplinary Action

     All cardholders are subject to disciplinary action which may include
     revocation of the Procurement Card up to dismissal of employment. If
     the Procurement Card is used improperly, the University of Northern Iowa
     may deduct from the cardholder’s paycheck or from any other
     amounts payable to the cardholder, an amount equal to the total of the
     improper purchases. The University of Northern Iowa may also collect
     amounts owed to the cardholder after the cardholder is no longer employed
     by the University of Northern Iowa. If a situation such as this occurs, the
     cardholder is responsible for the legal fees incurred by the University in
     such proceedings.




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                              Contact Information
Questions concerning Procurement Card procedures or purchases should
be directed to Kathy Schwanz, ext. 3-3516 or Molly Rickert, ext. 3-6448.

Questions or concern regarding policy should be directed to Tori Stafford,
Purchasing and Accounts Payable Manager, Office of Business Operations,
ext. 3-2162.




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                                                                             36 of 37
                              Questions?




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                                           37 of 37

								
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