Small Purchase Charge Card Program Effective September 1, 2002 Revised February 23, 2009

1. Small Purchase Charge Card Program Effective September 1, 2002 Revised February 23, 2009

2. Linda N. Orr, C.P.M., CPPB, VCO Director Mary L. Hicks-Coston, VCO Associate Director Susan Gilligan Admin and Office Specialist Office of Procurement Website http://www.wm.edu/procurement/ Office of Procurement

3. Purpose • Review policy that describes the general program guidelines • Card/Program name • Small Purchase Charge Card • SPCC • Purchasing Card • PCard • Bank of America Visa Card (BOA) • Not the College Travel Card CAPP Topic 20335 SPPC Regulation

4. Introduction • College program operates under state contract • Designed to authorize employees to make official, small dollar purchases quickly and directly • College accepts liability for official purchases made in accordance with the Policies & Procedures • NO personal expenditures • NO cash advances • Cardholders are responsible for following ALL policies & procedures

5. Program Administration • State Program • Department of Accounts • Department of General Services/ Division of Purchases & Supply • College Program • Office of Procurement • Mary Hicks-Coston, Program Administrator (pA) • Susan Gilligan, Secondary pA • Linda Orr, Secondary pA

6. Program Administration, cond’t. • Program Administrators: • issue cards • conduct training • approve changes to spending limits and other cardholder info • suspend/cancel cards • conduct mandatory new Cardholder training • perform annual Cardholder training and analysis • responsible for Procedure updates

7. How to Get a Card • Complete Application Forms • Obtain supervisor’s approval • Attend training to receive new card

8. Supervisors… • Approval of purchases • Adherence to policy • Updates to Cardholder limits/restrictions • Temporary card suspension • medical leave/personal, extended vacations, short/long term disabilities • notify Program Administrator via e-mail

9. Spending Limits • Limits set at or below department- delegated purchasing authority • Each card has limits per transaction and per month • Limits are established on cardholders application form • Splitting orders to circumvent limits is STRICTLY PROHIBITED and may be cause for card revocation

10. Exemptions to Limits • Exemption to transaction or monthly limits may be requested; justification required • Waivers may be requested with justification

11. Allowable Purchases • Office supplies (furniture is not included) • Books • Vehicle Rental (must decline Insurance offered) • Magazine & journal subscriptions • Newspaper ads • Air/rail tickets • Conference registrations • Lab supplies • Professional organization dues, fees & licenses • Questionable Purchase? CALL ME!

12. Restricted Purchases • Alcoholic Beverages (under no circumstances can alcoholic beverages be purchased w/Pcard) • Ammunition • Gifts • Carpeting • Purchases from State employee • Firearms • Radioactive materials • Renovation/Construction

13. Restricted Purchases Made only With Prior Written Justification and Documentation • Flowers (with private funds only) • Gasoline (rental cars only) • Furniture (with a release from VCE) • Lodging (1 night only to reserve room, not pay total stay) • Restaurant Meals (receipts, purpose of function, number of attendees, average cost per person) A/P requires additional documentation be submitted with your monthly reconciliation statement when making these purchases.

14. Accounts Payable Three Major Categories Non-Travel Business Meals Air and Rail Travel Car Rental CAPP TOPIC 20335 State Travel Regulation

15. Non-Travel Business Meals Standard meal reimbursement guidelines apply. • Restaurant Purchases / Supermarket Purchases • Include Itemized Receipt • Number of people attending the meeting • Meal Type: Breakfast, Lunch or Dinner • Description of Meeting/Justification for meals • Over Per Diem Rate • Justification for meals over State Limits up to 50% • Business meal reimbursements above 50% over the applicable per diem guideline are NOT permitted.

16. Air and Rail Travel • Airline and rail travel cannot exceed the rates charged for a coach fare. • Documents that validate the mode and class of travel are required for all air and rail purchases. • For additional airline fees and receipts an appropriate explanation must be included.

17. Car Rental • Rental car insurance is not reimbursable. • In no instance should employee enter into a “Fuel Agreement” or pay for fuel at the time of rental or before vehicle is used. • Employee must ensure that the rental car is refueled before returning the vehicle to the rental contractor. • Submit rental receipt with reconciliation • Business Reason in lieu of Travel Authorization must be stated in the documentation.

18. Industry Blocks • May be removed……. • Gas (rental cars or state vehicle only) • Restaurants (cardholder must comply with all of A/P requirements) • Lodging (1 night only to reserve room, not to pay total stay) Written justification is required from your supervisor by e-mailing the Program Administrator

19. Returns • Document reason for return • Credit to the Purchase Card MUST be requested • Cash back NOT permitted • Store credit permitted ONLY if merchant refuses to credit your card • Notify Program Administrator immediately if credit to card denied

20. Card Security • Card kept secure but accessible • Card for use ONLY by person to whom card has been issued (name embossed on card) • NEVER fax or e-mail card number • Internet purchases only on secure sites - look for the padlock and https:// designation! • Lost or stolen, immediately notify BOA Works System and then Program Administrator

21. Documentation/Reconciliation • Monthly BOA statement • Cardholder Purchase Card Transaction Log • Packing slips, invoices, receipts • Credit balances applied to Banner account, not carried forward • Discrepancy? Cardholder makes initial contact with merchant • No resolution? Contact Program Administrator

22. Documentation/Reconciliation, cond’t • Reconcile BOA statement to your Purchase Card Transaction Log • Supervisor & cardholder sign BOA Payment Form; forward to A/P by the 3rd of each month • Air/Rail Tickets • attach a copy of ticket purchased • travel authorization must be attached to your Log • Food purchases • purpose • list of attendees (if less than 10 participants) • average cost per person (indicate breakfast, lunch or dinner)

23. Statements • Cardholders may receive electronic statements at the end of each billing cycle • Log onto: https://payment2.works.com/wpm/bookmark/ • receive statements 2-4 days early • Supervisors may receive electronic reports • Log onto: https://payment2.works.com/wpm/bookmark/

24. Tax-Exempt Status • College is tax-exempt for official purchases • Tax-Exempt # is 54-73-0076K (included in Manual) • State Sales and Use Tax Certificate of Exemption available from Office of Procurement

25. Fixed Assets • All items with purchase value of $2000 and greater • Equipment Transaction Form must be completed and submitted to Property Control • Form available from Property Control or Office of Procurement website

26. Card Cancellation • Cards must be returned to Program Administrator immediately: • at request of supervisor or Program Administrator • upon termination of employment • Cardholders transferring to another College department: • notify Program Administrator to transfer existing card to new department, if required • Cardholders wishing to cancel cards: • notify Program Administrator by e-mail • return cut card to the Office of Procurement

27. Card Renewal • Renewals: • every two years, automatically • On-line training required annually • on-line training will be made available to cardholders and supervisors

28. Changes to Card Information • Changes: • request by e-mail • cardholder must forward request to their supervisor for approval • provide name, last 6-digits of card number and change requested in the e-mail • supervisor must forward e-mail with their approval to the Program Administrator • If supervisor information changes a Supervisor Change Form must be submitted to Program Administrator immediately

29. Violations…What happens? • Violators will have card privileges suspended and/or permanently revoked • May face disciplinary action up to and including termination

30. Penalties/Disciplinary Process • 1st Offense – courtesy notification of violation • 2nd Offense – three month suspension • 3rd Offense – six month suspension • 4th Offense – permanent revocation of card See College Procedures Manual page 9, 4.0 Consequences of Violations Cardholders are held accountable to read the entire College Procedures Manual for complete details.

31. Penalties Cont’d • Some Small Purchase Charge Card Procedures Violations are subject to the following • 1st Offense – three month suspension • 2nd Offense – six month suspension • 3rd Offense – permanent revocation • Fiscal Audit Findings _ 1ST Offense – three month suspension _ 2nd Offense in same fiscal year – permanent revocation

32. Process Overview • Application • complete & submit to program administrator • administrator submits to BOA Works • applicant notified of training session & card p/u • Mandatory Training • employee & supervisor receive the College Procedures Manual • Manual & Cardholder Agreement reviewed • Agreement signed • card issued

33. Cardholder Overview • Cardholder Responsibilities • keep Purchase Card Transaction log current • receipts, packing slips are signed, dated, attached to Purchase Card Transaction Log • Purchase Card Transaction Log and BOA VISA Card Payment Form must reconciled • BOA Visa Payment Form must be signed by cardholder & supervisor • send completed BOA Visa Payment Form to Accounts Payable by the 3rd of each month

34. Overview (cont’d) • cardholder or supervisor must submits to A/P each month that follows the end of BOA billing cycle • notify Property Control of all equipment purchases of $2000 + value • SPCC departmental supervisor must maintain complete reconciliation packet for 3 years

35. Overview • Reviews & Audits • Office of Procurement Monthly Invoice Review • monthly review of consolidated statement may result in request for additional information on some purchases • Office of Procurement Field Review • on-site review of cardholder documentation for the selected period • reviewed for compliance • logs complete, accurate, reconciled to BOA statement • receipts and documentation supporting purchase attached • cardholder & supervisor signatures on reconciliation • sales tax not paid • no restricted items purchased (without justification and documentation • card used only by cardholder • limits not exceeded • orders not split • card number not faxed or e-mailed

36. Audit Overview • Internal Audit • monthly review of electronic BOA reports • periodic audits of card activity • compliance with policies and procedures • Auditor of Public Accounts • state auditor annually selects accounts to review • compliance with policies and procedures

37. Questions?

38. Don’t hesitate to call any time you need assistance. • Thanks for attending