William & Mary Small Purchase Charge Card Training

1. William & Mary Small Purchase Charge Card Training Procurement Services

2. SPCC Program Administrators • Laken Marley • SPCC Program Administrator – Primary • Marra Austin, VCO • Associate Director - Secondary • Dave Zoll • Sourcing Analyst – Backup • Procurement Services Website http://www.wm.edu/procurement/

3. Training Overview • In this training we will: • Provide an overview of the SPCC program and the benefit to the university. • Explain the importance of card security. • Explain the process for changing limits and removing restrictions. • Summarize allowable, restricted and non-allowable purchases. • Walk through the process for reconciling transactions. • Outline compliance and the disciplinary process. • Overview of responsibilities. • Lastly, provide a contact sheet.

4. Introduction to the SPCC Program • The SPCC Program offers the University an opportunity to streamline procedures for obtaining and paying for goods and services. • Program Benefits include: • Allows cardholders to quickly obtain needed goods and services. • Preserves vendor relationships by providing payment in as little as 3 days. • Supports compliance with the Virginia Prompt Pay Act. • Reduces operating expenses associated with invoices and check processing. • Results of the 2014 RPMG Purchasing Card Benchmark Surveyshow that organizations realize significant costs savings by moving payments from traditional PO processes to the Small Purchase Charge Card. • Average administrative costs per order based on RPMG Survey • Purchase Order-based process - $90 • SPCC procure to pay process - $ 20 • Administrative cost savings per SPCC order - $70

5. Introduction to the SPCC Program *Average administrative cost includes sourcing, purchasing, and payment activities

6. Introduction to the SPCC Program • William & Mary is a Tier 3 institution. • Allows the University more autonomy to meet the needs of the institution. • The SPCC program is administered in accordance with the University’s Small Purchase Charge Card Procedures found on Procurement web page. • http://www.wm.edu/offices/procurement/index.php • The SPCC should be used for all allowable business purchases under $5,000 where a credit card is accepted. • SPCC cycle dates run from the 16th of the month to the 15th of the following month. • User interface – http://payment2.works.com/works

7. Card Security • Your card must be kept in a secure but accessible location. • Do not share your card. The card may only be used by the person whose name is embossed on the card. • NEVER make a photocopy of your card or fax or email your full card number. • Cardholders may fax ordering information to a vendor and call a vendor to provide the card number live, but do not fax, text, mail or email the full card number to vendors. • Internet purchases are permissible only on secure sites – look for a padlock icon and the https:// designation in your browser’s address bar. • Report lost or stolen cards immediately to BOA and the Program Administrator.

8. Spending Limits • Each card has a transaction limit and cycle (or monthly) limit. • Single transaction limits may be set to a maximum of $5,000 (departments’ delegated authority). • Cycle limits are set based on cardholder spending requirements up to a maximum of $100,000. • Limits may be increased by the Program Administrator with a business justification and supervisor approval via email. • Limit changes may be processed on a temporary or permanent basis. • If temporary, include the date your account should be returned to its original settings in the email request.

9. Spending Limits • Know your limits • DO NOT authorize charges in excess of your SPCC single transaction or monthly limits for ANY reason. • If a limit increase is needed, email the Program Administrator with a justification and supervisor approval. • If a transaction is processed by a vendor without your consent, talk with the vendor directly, document your conversation and advise the Program Administrator to dispute the charge. • Splitting orders, whether by cardholder OR vendor, to circumvent limits is STRICTLY PROHIBITED and may be cause for card cancellation.

10. Chip & PIN Integration • You will need to remember your PIN for point of sale purchases • Your Chip & PIN card also has a magnetic stripe and will continue to work at merchants that are not yet chip-enabled. • There is no change to online or phone transactions. Provide your card number and complete the purchase as you do currently. • Effective May 17, 2017 every new Chip card issued will allow the cardholder to customize their own 4-digit PIN at card activation. • Cardholders will have the ability to change or re-set their PIN at any time simply by calling the Global Card Services number listed on the back of their Chip card. • Until an existing cardholder is reissued a new chip card, their current PIN will remain unchanged and they are still able to view their PIN within the Global Card Access website at: www.BofAML.com/globalcardaccess

11. Industry Restrictions • All cards are issued with standard restrictions against: • Fraud (may never be removed from a card account) • Gas • Restaurants • Lodging • Florists • Any charge attempted in the above categories will decline unless an exception is requested and the restriction is removed by the Program Administrator. • As with limit changes, an email to the Program Administrator from the cardholder containing a business justification and supervisor approval is needed to process an exception. • Exceptions are also available on a temporary or permanent basis. • If temporary, include the date your account should be returned to its original settings in the email request.

12. Tax Exempt Status • As an agency of the Commonwealth of Virginia, W&M is tax exempt from almost all in-state purchases, exceptions are: • Air and Rail Tickets • Lodging • Out of state purchases are generally NOT tax exempt. Additional information on out of state purchases and a list of states where W&M qualifies for an exemption may be found here. • Advise vendors of tax exempt status BEFORE providing your card for payment. • The cardholder is responsible for obtaining a refund from the vendor if sales tax is charged incorrectly • Sales and Use Tax Exempt Numbers: • William & Mary – 54-6001718 • Virginia Institute of Marine Science – 54-6001802 • Contact Cindi Fellows (clfellows@wm.edu) in Tax Accounting for Tax exempt forms.

13. SWaM Vendors • The University is committed to increasing expenditures with Small, Women-Owned and Minority-Owned businesses. • To be recognized as a SWaM, businesses must be certified with the Virginia Department of Small Business & Supplier Diversity (SBSD) • The University and State have a 42% expenditures goal for utilization of SWaM businesses. • Cardholders should consider ordering from a SBSD certified SWaM for their purchasing needs. • Search SBSD certified SWaM businesses: • http://www.dmbe.virginia.gov/cgi-bin/search.cgi

14. Allowable Purchases • Examples of allowable purchases include: • Advertisements • Books (do not enter SPCC information into personal online retailer accounts.) • Conference registration • Furniture (Virginia Correctional Enterprise or TSRC are our mandatory vendors) • Lab supplies • Licensed Products (Vendors must be registered to use the University’s marks. Visit http://www.wm.edu/offices/auxiliary/licensing) • Office Supplies (TSRC is our mandatory vendor) • Professional organization dues, fees & licenses • Technology – computers, servers, software, consulting (IT must approve all purchases prior to the transaction. Approval must be submitted through request IT and attached as receipt documentation) • Additional “Allowable and Non-Allowable Expense's” can be found in the University’s Small Purchase Charge Card Procedures. • Procure to Pay Matrix is a great tool! • Check out Buying@W&Mhttp://www.wm.edu/offices/procurement/buying/index.php • This web page offers information to simplify sourcing and purchasing goods • Contact is Dave Zoll, djzoll@wm.edu, 221-3953

15. Local Funds Policy • Local Funds are university-controlled funds that are not appropriated by the state, or revenue derived from student fees. Examples of common local funds include the following: (1Zxxxx, 2Zxxxx, 1Yzzzz and 312xxx) • University policy will allow for additional expenses to be covered by Local University Funds that cannot be fully covered with State Funds, within policy limits. • Regardless of fund source, all items purchased for use by the University MUST comply with Procurement Policies and Procedures. • The SPCC is a method of payment. All purchases made on the card must comply with state and/or local fund guidelines. • For more information on Local University Funds, please contact the Accounting Operations department.

16. Business Meals • All standard meal reimbursement guidelines apply • The SPCC may not be used for per diem meals during individual travel and may never be used for personal meals. • The SPCC Business Meal Form (located in the SPCC section of the Procurement Forms page) is required, and has been created to help ensure that you have completed all of the required documentation. • Documentation for ALL Food and Alcohol Purchases includes: • The itemized receipt • Meal Type: breakfast, lunch or dinner • Average cost per person • Description of meeting / business justification for meal • The number attendees (if less than 10 attendees list the full name and affiliation of each attendee) • Over per diem rate justification – up to 50% • Business meals above 150% of per diem are NOT permitted under State policy. • Excess of 150% up to 200% of standard per diem rate is permitted with Dean or VP approval using Local Funds

17. On-Campus Catering • America to Go (ATG) is a web-based, managed catering platform for local food ordering. • ATG is required to be used for on-campus catering orders placed after September 1, 2018.* • ATG Ordering Portal: catering.wm.edu • The Vendor Network as well as a list of Frequently Asked Questions is located on the Procurement ATG page, or contact Dave Zoll at djzoll@wm.edu for more ATG information. • *Phase I of the launch applies to the W&M Campus, with VIMS coming onboard at a later date

18. Air and Train Travel • Documents that validate the passenger name and class of service are required for all air and rail purchases. • The email confirmation may not be sufficient, documentation must include a copy of the ticket or boarding pass to validate class and traveler. • Pre-Approval form must also be included. • Appropriate business justification must be included for additional airline fees and receipts. • First Class is prohibited • Another option to purchasing tickets is using the university’s contract travel agency, Covington Travel. • Covington, W&M@covtrav.com, (804)344-3244 or (888)747-7077

19. Air and Train Travel • Appropriate business justification and documentation must be included for additional airline fees.

20. Vehicle Rentals • Vehicles rented using the SPCC may ONLY be rented through Enterprise Rent-A-Car or National Car Rental. • When reserving a vehicle, Cardholders must reference the VASCUPP contract to obtain contracted pricing. (Contract#: XZ21032; PIN: WIL) • The contract includes a Damage and Waiver (D&W) fee – relieves renter of liability of damages that may occur during rental • Employees and students are covered under W&M’s insurance policy • Supporting documentation should consist of an itemized receipt and pre-approval form (required for 2 or more day rentals) or business justification must be included with documentation if a pre-approval form is not required. • Employee must ensure rental is refueled before returning vehicle. • Appropriate business justification and documentation must be included for any additional car rental fees.

21. Prohibited Purchases Using State Funds • Examples of prohibited (non-allowable) purchases include: • Alcoholic Beverages • Ammunition • Automobiles • Boats • Equipment Trust Fund (ETF) purchases • Firearms • Flowers for non-public events • Gift cards, gifts, awards and prizes • Purchases from State employees • Purchases of goods and services for personal use or use by family • Radioactive materials • Renovation/Construction (including carpeting) – must go through Facilities Management • Moving and Relocation expenses • Travel Insurance • Additional “Allowable and Non-Allowable Expense's” can be found in the University’s Small Purchase Charge Card Procedures.

22. Restricted Purchases Using Local Funds • Please contact the Accounting Operations department for more details

23. Contracts and Agreements • Cardholders asked to approve vendor/contractor forms must contact Procurement Services for assistance. • Only employees who have received written delegation of signature authority may sign contracts or other agreements entering the University or VIMS into a legal, binding agreement. • Unauthorized individuals who sign contractual agreements on behalf of the University may be held personally liable for those contracts and may be subject to additional disciplinary action, up to and including termination of employment.

24. Returns and Disputes • Contact the vendor immediately. • Start documenting from the beginning. • Date and time of communication. • Person you spoke with and what he/she advised you to do. • Item(s) in dispute and resolution. • If you need to return the goods, verify the proper way to return the items with the vendor. • A credit on the SPCC must be obtained. Store Credit is not acceptable. • If you and the vendor are unable to resolve an issue regarding a credit or a return, contact the Program Administrator for guidance.

25. What is Online Reconciliation? • As transactions post to the bank, the Cardholder will receive an automated email notification. • The Cardholder logs into the bank’s online system to perform allocation, receipt imaging and sign off. • After signoff, an automated notification email is sent to the Cardholder’s Approver. • The Approver logs into the bank’s online system to review the transaction and supporting documentation and then sign off. • Transactions are reviewed by Procurement, Accounts Payable and Sponsored Programs for accuracy and compliance then the batch is uploaded to Banner. • Transactions will post to Banner faster and the system will allow you to edit the Banner description.

26. Online Reconciliation Timeline • Throughout the billing cycle, Cardholders place transactions – Cardholders and Approvers complete allocation, receipt imaging and signoff. • The billing cycle closes on roughly the 15th of the month. • Automated reports are delivered to Cardholders and Approvers 2 days after cycle close. • Cardholder and Approver allocation, receipt imaging and sign off must be finalized by 23rd. Local funds transactions MUST be allocated correctly by the 23rd. • Transactions are reviewed by Accounts Payable, Procurement and Sponsored Programs from the 24th through the 28th. • A transaction file is transmitted to W&M around the last day of the month for upload to Banner. • Failure to complete monthly reconciliation will result in transactions posting to the SPCC’s default index and unreconciled funds will be withheld from the cardholders available funds until signoff is completed. Failure to reconcile and sign off on transactions in a timely manner will result in card suspension or revocation.

27. Works 4.0 Overview (Cardholder) Use the navigation bar to search through expenses or view/create reports. Items requiring your action will appear in the Action Items section of the page. Your SPCC account will appear in the Accounts Dashboard section of the page Upon login you will land on the Works home page.

28. Cardholder Action Items: Signing off on transactions As transactions post to your account they will appear as transactions available for sign off. In this example, the cardholder has 2 transactions pending sign off. Click on the Pending link to view the transaction detail and sign off on the transaction.

29. Cardholder Action Items: Signing off on transactions Clicking on the Pending link will bring you to the Expenses screen where you can review transactions pending sign off. Click on the document number to access the transaction’s sub-menu. Notice that the transaction has automatically allocated to a default index and an account code based on the vendor’s merchant category code (MCC). From this sub-menu you can view the transaction details, reallocate the transaction, sign off on the transaction, attach a receipt, or dispute the charge.

30. Allocating Transactions Enter a description for the transaction. This description will be loaded to Banner. You can change the default index or account code by typing the new code or selecting it from a pick-list. Descriptions are provided for all codes. You can allocate to multiple index and account codes by adding or duplicating a line and entering the accounting information. Click the Save button then Close when finished.

31. Attaching Supporting Documentation To add supporting documentation to a transaction, select the Manage Receipts option from the sub-menu. A pop-up box will then appear where you can add a new receipt by uploading a file from your computer.

32. Comment and Sign off Click the Sign Off button when allocation is complete and you have added a receipt. A comment box will pop-up after you click the Sign Off button. Add any information the Approver might need to approve the transaction. (examples, PCO numbers, detailed description of transaction, confirmation of receipt of goods or services, etc.) Click OK to route to your Approver.

33. Approver Sign Off Upon login the Approver will see the same Works home page showing items requiring review. In the Action Items box, you will see transactions that you have flagged as well as transactions ready for sign off and reports ready to download. To signoff on items, click on the Pending link in the Action Items box.

34. Approver Sign Off Clicking on the Pending link will bring you to the Expenses screen where you can review transactions pending sign off. Click on the document number to access the transaction’s sub-menu. Clicking on the Sign Off option will show the Sign Off pop-up box. Clicking on the View Full Details option will bring you to the transaction details. Clicking on the View Receipts option will allow you to look at the attached receipt.

35. Transaction Details At the top of the Transaction Detail screen you will see general transaction data. The next section will show allocation information. Click on the Receipts tab to view the attached receipt. Use the Actions drop-down arrow to sign off. Followed by transaction reference and tax information. The Transaction Detail section will show the individual items purchased. Transaction detail will not be available for all transactions. Click the Save button if you made any changes.

36. Bulk Signoff Click the Sign Off button to approve the transactions. After reviewing the cardholder transactions you can select the check-boxes next to each transaction to perform a bulk sign off. You can also select the check-box in the header row to select all transactions.

37. Record Retention • SPCC documentation must be retained for 5 years for auditing purposes. • Cardholders must ensure that electronic documentation is legible before disposing of paper documentation. • Cardholder must retain: • All paper documentation not loaded into Works. • Works will be the repository for electronic documentation. • Receipts uploaded to Works will remain in the system for 7 years.

38. Violations / Disciplinary Process • Card transactions will be reviewed for compliance with policies and procedures. • Cardholders and Supervisors will be held accountable for any misuse of the card. • Cardholders and Supervisors are responsible for reading the entire SPCC Policy and Procedures for complete details. • Reference the University’s SPCC Procedures Manual regarding Violations. • Disciplinary action for violations of the SPCC policies and procedures range from a courtesy notification for a 1st offense, card suspension from 6 months to permanent revocation of the card, or possibly termination of employment.

39. Travel and Food Documentation • Air/Train Ticket • Attach a copy of ticket purchased or boarding pass to show passenger name and class of service. • Documentation to confirm rates charged were coach fare and/or justification for costs over • Pre-Approval • Any additional baggage receipts • Appropriate explanation for any additional airline fees with receipts • Business Related Food Purchases (including Alcohol) • SPCC Business Meal Form • Include the itemized receipt • Valid business justification including the purpose of the function • Number of people attending (if 10 or less, list the full name and affiliation of attendees) • Type of meal (breakfast, lunch or dinner) • Itemize the average cost per person • Over Per-Diem Rate: Justification is required for meals up to 150% state limits and up to 200% local funds limits • Business meal transactions above 200% are not permitted • Travel policy guidelines apply to ALL food purchases – including functions where it is appropriate to serve food and beverages to University personnel. • Enterprise Vehicle Rentals • Copy of the detailed rental receipt (showing driver name and car class) and any gas receipts • Pre-Approval is required if rental is 2 or more days. Business purpose and travel location should be included in documentation if no Pre-Approval is required. • A business justification if a vehicle above the Economy rate is rented

40. Responsibilities • Cardholder Responsibilities • Take the mandatory training as advised by the Program Administrator. • Keep your card secure. • Reconcile and sign off on SPCC transactions on a monthly basis. • Certify that all transactions are valid business purchases. • Ensure allocation is correct by the 23rd of the month for any purchases which can only be charged to Local funds. • Report non-compliance to the Program Administrator. • Notify the Program Administrator immediately of any potential fraud. • Send email to the Program Administrator with justification and supervisor approval for any account changes. • If supervisor information changes, the Program Administrator must be contacted immediately. • Supervisor Responsibilities • Take the mandatory training as advised by the Program Administrator. • Monitor transaction/monthly limits for appropriateness. • Certify that all transactions are valid business purchases. • Ensure allocation is correct by the 23rd of the month for any purchases which can only be charged to Local funds. • Sign off on cardholder transactions on a monthly basis. • Report non-compliance to the Program Administrator.

41. Contact Sheet