East Carolina University Dept of Materials Management

1. East Carolina UniversityDept of Materials Management ECU ProCard Program 2014

2. YOUR PROCARD STAFF Frances Flowers ProCard Manager flowersf@ecu.edu 328-2761 Melissa Eakes ProCard Assistant Manager beddardm@ecu.edu 737-1852 Debbie Steinmetz ProCard Assistant Manager Steinmetzd@ecu.edu 328-5636 Materials Management 328-6434 www.ecu.edu/purchasing - Click “ProCard”

3. WHAT YOU WILL LEARN TODAY • What is a ProCard? • Purpose and Benefits • Costs and Requirements • Policy and Procedure • Responsibilities • Conference Registrations • Airline, Bus and Train Fares • Lodging • Documentation • Reconciliation • Works Payment Manager

4. A “PROCARD” IS…… • Short for Procurement Card • (may also be referred to as Purchasing Card or Pcard) • Corporate VISA credit card • For business use only • Issued in employee’s name • Charges are billed to the University … here to save you from frustration!

5. PURPOSE OF THE PROCARDCARD HOLDER / UNIVERSITY BENEFITS • Reduces forms, paperwork, data entry, processing time, costs, number of invoices and checks processed, need for reimbursements and petty cash accounts • Replaces purchase orders, standing orders and direct pays for most small dollar purchases • Allows rapid turnaround on low dollar goods and services • Easier to make allowable purchases. • Most merchants accept VISA • Does not require use of personal funds • A purchase requisition is not required • ECU is not charged to use the card • Research shows that it costs $74 to process a check.

6. PURPOSE & BENEFITS cont. • Required purchases on ProCard: Conference Registrations, Membership Dues, Certifications, Publications, Examination Fees and Subscriptions • For these reasons, every department needs at least one cardholder • CONTROLS: • Merchant categories (MCC codes) can be restricted or blocked • Spending limits are set for each card • Provides reconciler oversight • Audit of transactions

7. Policy and Procedures • Responsible individuals who have regular purchasing needs should have a ProCard. • Cardholders must be ECU staff or faculty with “permanent” or “time-limited” employment status • Department Head approval of card and selected spending limit is required • The ProCard must be used ONLY by the named cardholder. There are NO “departmental” cards. NO SHARING!

8. Policy & Procedures – Continued • State, Grant, Practice Plan, and Special funds with approval are allowed • NO FOUNDATION funds allowed • NO PERSONAL purchases allowed • Cardholders sign a “Card Use Agreement” • Cards must be returned to the ProCard Office to be cancelled and destroyed if you transfer to another department OR leave the University. Cards are ECU property.

9. Policy & Procedures – Continued • Never accept cash, checks or gift cards for returns • State Contract items must be purchased throughthe contract source(s) • Original, priced, itemized receipts or invoices are required for each transaction • Splitting transactions to avoid spending limits are strictly prohibited • Funding authority…The ProCard doesn’t change what you can buy, but how you pay for it! • All Departmental, Travel and University policies and procedures must be followed.

10. University Requirements • All transactions are uploaded to Banner monthly (Accounting System of record); posted to the GL {J63 entries}; and payments issued to the bank monthly • The University conducts an on-going audit of purchases to insure a high degree of integrity and confidence in the system • University must pay the bank within 10 days after close of the monthly billing cycle • Charges are paid in full each billing cycle

11. Vendor Benefits & Requirements • Improves vendor’s cash flow[Bank pays vendors within 2-3 days] • The vendor has a higher confidence level in VISA than a purchase order • Card eliminates need for additional accounts receivable processing • Requires no special enrollment[If vendor accepts VISA, not restricted] • Vendor pays a transaction fee to VISA

12. TYPES OF CARDS We allow transactions for ECU business purposes only. Your card can be used for the “Type of Spending” requested and approved on your ProCard application and upgrade forms, if needed: Basic – Includes items such as routine supplies, materials, books, memberships, subscriptions, registration fees and service expenses. Air/Bus/Train Upgrade – Includes air/bus/train fare allowances, in addition to Basic purchases. Lodging Upgrade – Includes lodging allowances, in addition to Basic and Air/bus/train allowances.

13. ProCard Spending Levels * No splitting of charges is allowed.

14. Sample Purchases Allowed • State contract items purchased through State contract vendors • Memberships and organization dues* • Licenses such as nurses, doctors, etc. • Subscriptions – To a business address / Annual Only / includes software subscriptions* • Conference registrations (all ECU Travel policies apply)* • Publications* • Interlibrary Loans • Postage and stamps • Express shipping & freight • Advertising • Certifications* • Office, lab supplies and equipment (contract vendors) • Software (prepackaged or approved by ITCS or Materials Management), accessories and peripherals • Maintenance contract / agreement payments with initial contract approval by Materials Management on file and documented with statement. • Air, bus and train fares (Additional approval required. One checked bag allowed each way. No candidate tickets.) • Lodging, including Internet and Parking (Additional approval required.) • Promotional items with approval from funding source and logo review, as required. http://www.ecu.edu/cs-admin/mktg/logo_review.cfm • Student group functions including travel, events and group meals (Additional approval required.) * Required to be paid on ProCard (Some exceptions apply. Merchant does not accept VISA, Foundation Funds are being used to purchase the item, purchase amount is over the single transaction limit)

15. TRAVEL AND THE PROCARD Approved University Business Only All ECU Travel and ProCard policies and procedures apply. Contact the ECU Travel Office with travel questions (737-1084 or traveloffice@ecu.edu) Travel must be approved and TRA form must be on file before paying for travel. Do NOT request reimbursement for expenses paid on your ProCard. Note that it was paid on ProCard on Travel Request Authorization. Attach original priced documentation with the ProCard statement. Include: dates of travel, cost of ticket, travel itinerary. No rental cars, gas, toll fees or taxis. No meals allowed, due to per diem rates. Non-business expenses must be handled on the traveler’s personal credit card.

16. Paying Conference Registrations Meals are only allowed if part of registration fee (Ex. Fee includes breakfast and lunch) Extra events are only allowed if business related and fund approved Copy of registration form showing who, what, when, where and how much needs to be included with ProCard statement. If you cannot use the ProCard, write reason on Direct Pay Form • Merchant does not accept VISA • No Foundation Funds allowed on ProCard • Additional functions, which are being paid out of personal funds • Use correct Banner Accts (change in WORKS, if needed) • In State Registration Fees 73551 • Out of State Registration Fees 73552 • Out of Country Registration Fees 73553

17. Air, Bus and Train Fares • Requires upgrade request form approved by your Dept. Head. • University business only (If you are extending your business trip to include vacation time, you MUST obtain two quotes: One showing how much your ticket would be if you only go for the required days and another showing how much the ticket is with your extra days. Both quotes must be from same vendor and YOU MAY ONLY PAY ON THE PROCARD IF THE TICKET IS THE SAME AMOUNT OR LESS!) • Can purchase tickets for employees, students, residents and speakers. (NO candidate tickets). • Travel office recommends you do not purchase tickets more than 60 days prior to trip. • Do not accept insurance/trip protection or early check-in fees. • Choice/upgrade seat fees are not allowed without a medical reason that is documented and approved by an ADA coordinator. Contact the Department for Disability Support Services at 737-1016. • One personal bag each way is allowed. Documented business purpose is required for more than one bag.

18. Air, Bus and Train Fares cont. Suggested air/bus/train fare vendors: AAA, Orbitz, Expedia, Travelocity, American Airlines, Delta, etc. • Cardholder and/or Reconciler need to use the correct Banner Account codes for transportation • In state – Air 73201 • In state – Ground 73211 • Out-of-state – Air 73205 • Out-of-state – Ground 73215 • Out-of-country – Air 73209 • Out-of-country – Ground 73219 • http://author.ecu.edu/cs-admin/purchasing/pcard/ProCardHome.cfm

19. Lodging Requires upgrade request form approved by your Dept. Head. Room, Parking and Internet only (Occupancy tax is ok, but we are exempt from NC sales tax.) No charges such as incidentals, movies, room service, meals, tips, telephone calls, laundry, alcohol, meals, newspapers, etc. If you are making this payment for someone else, you will need to inform the hotel know that the traveler will not have the card with them. You may be required to complete a 3rd party reservation form with the hotel. Be sure to inform the hotel that this card can only be used for lodging and if there is a fee for parking. Receipt needs to be itemized and show dates.

20. Lodging Cont. • Any lodging accommodations that are with a 3rd party (not hotel, motel) must have prior approval in addition to Procard approvals. A 3rd party lodging request form must be completed and approved prior to booking, then attached to the ProCard statement. • Cardholder and/or Reconciler must use the correct Banner Account codes for transportation • In state Lodging – 73231 • Out of State Lodging - 73235 • Out of Country Lodging – 73239

21. A - RRS 2004 B - AUCCCD C - ETS D - Continued ETS E – Travelocity F – Quixote (now AAA) Review backup for registrations and airfare Attachments A-I

23. AUCCCD

26. Quixote Travels – 2 pages

27. TRAVELOCITY – 3 pages

28. A - RRS 2004 – Good! Shows who, what, where, when, how much B – AUCCCD – No meals allowed on ProCard! (ONLY registration fee allowed) C – ETS – If registration already includes meal, it is ok. D - Continued ETS – Good receipt! Shows who, what, where, when, how much E – Quixote Travels – Good! F – Continued Quixote – Fees are ok. (NO insurance, extra fees allowed) G – Travelocity – Good – complete itinerary H – Continued Travelocity I – Continued Travelocity ANSWERS For backup for registrations and airfare

29. UNAUTHORIZED PURCHASES • NO purchases for personal use • NO purchases over designated spending limits • NO split ticket purchases to circumvent the single purchase limit • NO animals • NO weapons and ammunition • NO purchases from pawn shops • NO controlled substances (Drugs, Alcohol, Fireworks) • NO payments to individuals, consultants or employees (Vendor must provide a FEIN number versus a SSN) • NO purchases from University storerooms (must go through PORT) • NO travel, such as food/meals, car rentals, gas, trip protection/insurance, seat charges/upgrades, early check-in, taxis, tours, additional non-business functions, candidate travel, etc. • NO food, such as meals, restaurants, caterers, fast food vendors, prepared food, etc.) Approved food from grocery stores requires a legit business purpose, itemized receipt, flier/meeting announcement and list of attendees. • NO beverages other than Coca-Cola products in small quantities. (Coke has the exclusive rights on campus.) • NO entertainment • NO Cash Advances • NO Gifts / Contributions • NO Gift Cards, Incentives or Prize Purchases without prior approval per the “Gift Cards, Incentives and Prize Purchases” procedure found at http://www.ecu.edu/purchasing/ • NO purchases from Foundation funds • NO computers or laptops • NO items requiring the signing or click-to-agree of a vendor agreement or terms and conditions in order to complete the purchase, except those vendors whose terms have been approved by Materials Management and/or ITCS, as required. Must be documented on the statement. (Ex. Customizable software) • NO payments to ECU for classes or for Parking & Transportation. (Use an IDT) • NO payments that involve making changes to facilities Exceptions may apply

30. Audits • Transactions may be audited by Materials Management, Internal Audit, Office of the State Auditor and the Purchase & Contract Compliance Team • ProCard Manager reviews all transactions daily • Cardholders may receive an email requesting additional information • Must make every effort to resolve any issues promptly • Insufficient statement documentation is considered a violation • Consistent problems and errors may result in card cancellation • See section 8.0 Compliance from the ECU Purchasing Card User’s Guide

31. Your Card • Issued by Bank of America • Call to activate • Activation code is 123451006 • Call the ProCard Staff if you have problems

32. Tax Exempt Status • ECU is NC sales tax exempt for most purchases • All ProCards display the tax ID number • Cardholder must inform the vendor of the tax exempt status at time of purchase • If tax is charged, it is the cardholder’s responsibility to obtain a credit from the vendor to his/her ProCard • Some vendors have the tax exempt status listed under a different number: • Lowes – “East C Greenville, NC” or 059800021. Key fobs give 5% off business purchase, but do NOT replace contracts. • Office Depot – 39120714 • Radioshack – 252-328-2761 • Walmart – 1003978 (Online: 182544908)

33. Reasons your card may be declined • Single transaction limit • Daily limit • Monthly limit • Merchant Category Code (MCC) • Invalid information (cvc/cv2 number) • Cards cannot be used for airlines until the upgrade has been processed • Call the ProCard Office at 328-6434

34. Cardholder Requirements • Protect and secure your card and paperwork at all times. Do not share card number with anyone, besides the vendor you are purchasing from. • Provide a default Banner Fund, Organization and Program on your ProCard application. Notify ProCard office if this should ever change. • Must have Org security for all orgs used for transactions. • The cardholder must be aware of State Contract Vendors or know who to contact. • Provide vendors with billing address (pre-set) and a complete delivery address • Alert vendor that we are tax exempt when placing order. • Report fraudulent charges to your ProCard Staff • Cardholders must work closely with their reconcilers and/or accounting personnel to learn appropriate departmental procedures to ensure proper oversight and processing of card transactions • Charges are not encumbered in advance; do not over-spend your budget • Extended leave – notify us to put a hold on the card.

35. Cardholder Responsibilities & Processing • See Purchasing Pointers. • Once an approved order or payment is placed on their ProCard, the cardholder must do the following: • View transactions electronically in WORKS Payment Manager • Reconcile monthly by logging into WORKS. Review all transactions. Make FOAPAL code changes, if needed. FOAPALs can be changed in WORKS up to a specified date. Change Account numbers based on what was purchased/paid. Sign Off (approve) transactions once everything is correct. This must be done in a timely manner to allow the reconciler adequate time to review/approve by the deadline provided by the ProCard Office. Follow departmental deadlines. • Provide a business purpose for all charges, ESPECIALLY any FOOD products (**many restrictions on food** No meals.) If business purposes are put in WORKS, print off GL memo at the end of the cycle and include with statement or hand-write them on the receipts. • Keep all original receipts and records. Suggestion: Keep everything together in one folder. • Match itemized receipts and staple IN ORDER at left-top corner behind the hard copy bank statement. • Sign statements in ink (full signatures required, no signature designees allowed); print name underneath if signature is illegible. • Forward statement and receipts to reconciler or department head, depending on set-up, by the 30th

36. Cardholder Responsibilities & Processing - Continued Lost or Stolen Cards • Report to Bank of America immediately 1-888-449-2273 • Notify ProCard staff 328-6434 • Review transactions carefully and notify ProCard staff if there are any fraudulent charges • Disputes must be submitted within 30 days of the transaction date. Contact ProCard Office. Returns • Credit must be issued back against your card • Never accept cash or cash equivalents • Handle with vendor and follow return instructions • Utilize ECU Central Stores & Receiving for shipping needs (328-9932)

37. Reconciler Responsibilities & Processing The Reconciler over-sees ProCard transactions and verifies FOAPAL information. A Reconciler can be an Administrative Assistant, Budget person, Cardholder, Department Head or person authorized to approve purchases. The Reconciler is a pivotal point of oversight for ProCard transactions. The RECONCILER must:1- Review and approve each transaction on-line monthly 2- Verify and edit FOAPAL codes, if needed, to ensure transactions are charged to the appropriate budget codes in Banner 3- Review documentation 4- Counter-sign statements 5- Forward all statements to Materials Management by 10th of the month following the cycle

38. Reconciler Processing - Continued • All statements for the Division of Health Sciences are due to Cathy Alphin by the 1st of each month (do not send directly to Materials Management). • If the cardholder and the reconciler are the same individual, the department head must counter-sign his/her approval of the statement. Note: The designated reconciler should not report directly to the cardholder {i.e. Department Head has a card}. If you have this situation, please designate someone in the division office to sign off on the cardholder’s purchases. Contact the ProCard Manager for guidance if necessary.

39. Reconciler Responsibilities & Processing – Continued • Reconciler must report any changes in employee status to the card administrator • Reconciler must report any unusual cardholder spending activity • Reconciler must monitor card spending levels closely to ensure sufficient funds are available to cover departmental charges • NOTE: DEPARTMENTS ARE RESPONSIBLE FOR ANY CARDHOLDER SPENDING BEYOND THE SET BUDGET LIMITS

40. Processing Cycle • ProCard user initiates a transaction on their card • Email notification sent from WORKS to cardholder informing a transaction(s) posted on the ProCard system. Transactions are typically posted on the system 24-72 hours after purchase. • Cardholder will log into WORKS Payment Manager and review transactions and account coding. • Cardholder makes changes to FOAPALs, if needed. • Cardholder signs-off to approve transaction and leaves business purpose • Transaction is routed to the Approver (reconciler) for approval • Approver logs into WORKS system and reviews transaction • Approver edits FOAPAL code(s), as needed, if cardholder has not. • Approver signs off on transaction or requests additional information from user. • Credit line is restored only after transactions are signed off in the WORKS system by the Cardholder and/or Approver. • ProCard office will sweep transactions for the monthly billing cycle and import into Banner. • The Cardholder will receive a hard-copy bank statement monthly and attach receipts, then forward to reconciler and/or department head. The monthly statements with attached receipts are signed and forwarded to ECU Materials Management by the 10th of the following month.

41. Statements • Cardholders will receive a hard copy statement from Bank of America 5 – 10 days after the close of each cycle • Billing/Statement addresses are predetermined • East campus: 1000 E 5th St • West campus: 600 Moye Blvd • Cardholder is responsible for delivery address , which is your actual location.

42. Documentation • Original, itemized receipt or invoice for each transaction • Vendor • Description • Unit Price • Extended Price • No Sales Tax • Shipping • Total Amount • Types of Receipts: Vendor Letterhead, Detailed & Priced Packing Slip, Courier Receipts (FedEx or UPS), Web Print-Out. • Business purpose clear for each transaction (Written or GL Memo Report)

43. Statement Requirements & Review • Be sure all receipts are attached to the statement and itemized in order. (Staple in top, left-hand corner.) • All receipts must be itemized and show what was purchased • Tape small receipts to 8.5”x11” paper. Be sure tape is not covering details. • Copies of thermal paper (shiny) receipts attached • Verify Amounts ($) Match • Verify tax was not charged, as we are tax exempt. • No splitting of charges • Confirm purchase is supported by fund • Business purpose is clear for every purchase. No food on State Funds. • State Contract Vendors being utilized. • Minimum of two signatures on each statement. Signatures are to be in ink and legible. (Ex. Cardholder & reconciler; Cardholder & Department Head; Cardholder, reconciler & department head/division head.) • Statement is due to Materials Management by the 10th of the month following the close of the billing cycle • Card will be suspended or closed if multiple violations.

44. Statement & Documentation Samples Attached J – ProCard Statement K – Golden Software L – Barnes & Noble Bookseller M – Thomson N – Macromedia O – Staples (www.stapleslink.com) http://www.ecu.edu/cs-admin/purchasing/HowToOrderOfficeSupplies.cfm P – Primera Q – Amazon R – North Carolina Medical Group Managers S – University Book Exchange T – The Trophy Case U – Bender Burkot V – McGee Reprographics W – Paypal X – USPS Express Mail Y – Post Office Z – UPS Store