Procard Compliance Training

1. Procard Compliance Training AM 535 UTSA FY1011

2. Introductions Procard Final Approver Cardholder Procard Reviewer • Name • Title • Department • UTSA length of service • Your Procard Role • Cardholder • Reviewer • Final Approver

3. Procard/Travel Card Administration (PTCA) Office • Administers UTSA’s Procurement Card (Procard) and Travel Card Program. Departments should contact this office for assistance with any of the following services: • Application processing (Procard and Corporate Liability Individual Billed Account (CLIBA) cards only) • Cardholder training • Cardholder maintenance (Citibank and/or DEFINE related): • Credit Limit • Merchant Category Codes (MCC) • Activation and deactivation • Authorized to Inquire (ATI) access (CLIBA card only) • Process requests to change the electronic review and approval process for Procard payments.

4. Procard/Travel Card Administration (PTCA) Office • In addition, this office also performs the following functions: • Reporting/Compliance • Collections • Reconciliations • Procard audits • Generate Procard payments on behalf of departments. PTCA Staff

5. Purpose of Procard Compliance Training Acquaint the new Procard Cardholder regarding Procard Guidelines Responsibilities of Department Restricted and Dollar Limited Purchases Procard Records Maintenance Reconciliation Procard Audit Procedures

6. UTSA Procard Program Allows cardholders to make purchases less than $5,000 on behalf of the University. Purchases must be made in accordance with UTSA Policies and Procedures, State of Texas Regulations, and Federal Guidelines and Laws.

7. Benefits of Using the Procard • Simple method of purchasing goods and services up to $5,000. • Spending limits are designated by each department • Single Purchase Limit may never exceed $5,000.00 to include recurring charges. • Charges may never be split to circumvent the $5,000.00 limit. • Monthly Purchase Limit defaults at $10,000.00 • Fast alternative for processing low dollar value purchases directly from the vendor. • Reduces processing costs. Section 4 – Procard Polices and Procedures

8. UTSA Purchasing Polices and Procedures • Follow the University and State Procurement Polices when making purchases. (DE678) • Visit the UTSA Purchasing website for Policies and Procedures. • http://www.utsa.edu/purchasing/policies.cfm

9. Purchasing from HUBs The University of Texas Historically Underutilized Business (HUB) initiative is to encourage and assist participation by such businesses in the contracting and purchasing process. It is UTSA's policy to be committed to maximizing when available, the number and value of purchases with HUBs. • UTSA is an equal opportunity, affirmative-action institution, and takes pride in giving women- and minority-owned businesses a chance to provide their goods and services at a fair price. Procard holders are encouraged to do the same. • Learn more about purchasing from a HUB • Purchasing From HUB Vendors, AM 554 Irene Maldonado HUB Program Manager Irene.Maldonado@utsa.edu Ext 4068 http://www.utsa.edu/hub/

10. Roles and Responsibilities Overview

11. Cardholder Responsibility • Know the Procard Guidelines • Safeguard the UTSA Procard at all times Procard may not be shared. • Make only purchases that have department approval • Document receipt of goods or services • Provide Complete Department Name and Room Location for accurate delivery • Retain original and intact itemized receipts • Ensure tax is not charged to purchase Never split a purchase to circumvent the $5,000.00 limit Complete monthly Transaction Logs Forward Transaction Log and itemized receipts to Approving Officials for review and signatures Maintain proper procard reconciliation for audit Comply with UTSA Records Retention Schedule (five years plus current fiscal year) Section 6.1 – Procard Policies and Procedures

12. Cardholder Responsibility Continued • Verifies and maintains documentation that the vendor is in good standing with Texas Comptroller of Public Accounts for purchases $500 or more • https://cpafmprd.cpa.state.tx.us/tpis/search.html • Verifies that all items on receipt are accurate and charges are correct • Verifies that all transactions listed on the monthly statement are valid and the amount is correct. • Resolves all disputes with vendor • Notifies Bank in event of unresolved disputes

13. Reviewer Responsibility • Ensure Reconciliation of monthly Procard Transaction Logs to: • Bank Billing Statements and/or VP7s • Itemized Sales Receipts • Business Expense Forms (if applicable – required for SE purchases when making purchases of hospitality and/or entertainment) • Ensure Compliance to • University Policies • Procard Guidelines • Purchasing Policies and Procedures • Safeguard and protect University assets • Understand University and Procard Guidelines and Hospitality Guidelines Section 6.2 – Procard Policies and Procedures

14. Final Approver Responsibility Designated as an Electronic Signer in DEFINE for the procard holder default UTSA account. • Serves in a higher level position over the procard holder and reviewer • Ensures all purchases made by procard holder have received prior approval • Ensures all purchases made by the procard holder are necessary and reasonable for the active conduct of university and designated department business • Ensures the procard holder and reviewer are knowledgeable and in compliance with all UTSA Procard Polices and Procedures and Business Related Hospitality and Entertainment Expense Guidelines • Reviews and approves procard holder VP7’s, reviews and signs monthly Transaction Logs, and applicable Business Expense Forms in a timely manner. Section 6.2 – Procard Policies and Procedures

15. VP7 Final Approval Any VP7 Documents not approved by the deadline are reported as non-compliance to the PTCA Office and will be reported to Internal Audit and the applicable Vice President’s Office. Possible loss of Procard privileges could occur for non-compliance.

16. Types of Procards *Hospitality Related Expenses **Hospitality and Entertainment Guidelines AM 553 • Regular Procard • Follows Procurement rules of Small Dollar Purchases (PB0) • Limited by departmental approved spending threshold (max $5,000.00) • Some Commodity and Business restrictions • Some Commodity dollar limits • Special Event Procard* • Same as Regular Procard • Some restricted commodities lifted to allow purchases of hospitality • Issued to a small number of authorized staff • Final Approval at the discretion of the Director of Financial Services and Bursar • Cardholder must be Familiar with Hospitality and Entertainment Guidelines** • http://www.utsa.edu/financialaffairs/opguidelines/2.6.4.html Section 7 – Procard Policies and Procedures

17. Restricted Businesses Legal Services Gasoline Stations Taxi and Travel Related Car Agencies Hotel /Motels Entertainment Providers Liquor Stores Travel Agencies ATMs

18. Restricted Commodities Gifts $500 Camera exceeding $500 $500 Computer related expenses over $500 Flowers Catering SE SE SE Restaurants/ Food/Alcohol

19. Purchases Requiring Prior Approval http://www.utsa.edu/pds/procard/restrictions.cfm for a List of Procard Restrictions

20. Procard Transaction Log Cardholders should maintain a current log for all purchases with itemized receipts attached A separate log should be maintained for each Procard cycle (monthly, 4th of Month to 3rd of Next Month) The Cardholder, Reviewer, and Final Approver must review, sign and date each Transaction Log. Section 8 – Procard Policies and Procedures

21. Procard Transaction Log 4th of Month to 3rd of Next Month Approved Budget Default Account Number Approved Budget Account Number Complete VP7 ID Number Verify Good Standing for Purchases over $500 [prior to purchase Best Practice: Complete each line item across page Approval signatures

22. Procard Transaction Log • Cardholder will maintain a current/monthly Transaction Log for all purchases • Original Intact receipt will support each purchase • Date • Vendor • Amount • Itemized description of item(s) purchased • Lost receipts • Vendor can provide a copy • DECLARATION OF MISSING EVIDENCE MEMORANDUM must be completed, if receipt cannot be provided by vendor. • Repeated loss of receipts may be grounds for canceling Procard or other disciplinary action. • Maintain Procard Transaction Log and supporting documents for 5 years + current year. Section 10 – Procard Policies and Procedures

23. Transaction Reconciliation Review and maintain bank statements and itemized intact receipts Call vendor immediately in event of a billing error or question Follow-up to ensure billing corrections are made as necessary Ensure credits are issued and documented – do not accept cash in lieu of credit Ensure tax has not been charged Section 10.7 – Procard Policies and Procedures

24. Transaction Reconciliation Notebook • Transaction Log (approved and signed) for each month • VP7 ID Number on each transaction log • Itemized Intact receipts for every purchase • Business Expense Form – SE Procard Hospitality Purchases • In accordance with Hospitality Guidelines • Vendor in Good Standing for purchases over $500 • Printed copy must be dated prior to purchase date • Maintain Tax Exempt Status • 100% Reconciliation • Procard Transaction Logs • Bank Statements • Printed VP7 DEFINE Documents • Itemized Receipts, Packing Slips, etc. Best Practice Create a Notebook Monthly Tabs PROCARD

25. Tracking Procard Purchases Online • Go to: • http://www.citigroup.com/transactionservices/home/card_solutions/commercial_cards/index.jsp • Click on CitiManager • First Time User • Self Registration for Cardholders • User Name • Your credit card numbers, without dashes • Follow online instructions and set your own Password

27. First Time User ONLY

28. Complete fields with an asterisk Bldg / Rm Number Your Campus Address Do Not Use Your Personal Address

29. Preparing for an Audit • A meeting request will be emailed • at least one week prior to audit request date • audit months for review will be provided • New cardholders will be audited • Within 24 months of receiving Procard • Thereafter, Regular and Special Event cardholders will be audited • according to risk or as needed and within 2 years Procard Check List Section 10.8 – Procard Policies and Procedures

30. Role of the Procard Auditor • Reviews transactions towards ensuring purchases are related to University business • Reviews receipts for itemization and legibility • Confirm State of Texas tax exempt status is being maintained • Verifies timely reconciliation and approvals of the cardholder account • Reviews Business Expense Forms for SE procards • Food, beverages, decorations, entertainment related expenses

31. Importance of Organization • During an audit, records will be reviewed for the following: • Proper and Original Signatures • VP7 ID Numbers • Vendor in Good Standing documentation made prior to purchases in excess of $500.00 • Itemized Intact Receipts – do not tape over ink • Credits documented as such • Tax Returned • Merchandise Returns • Business Expense Forms – SE Card • Bank Statements For a List of DEFINE Object Codes use Command: GG8 or GG9 Note: This list is not all inclusive

32. Following a Procard Audit • Findings will result in the following: • Audit Recommendation Memo • List of recommendations • Deadline for meeting recommendations • Recommendation Memo to be signed by the Cardholder, Reviewer, and Final Approver • All recommendations (corrections) with signed Agreement Memo must be submitted to the Procard Compliance Office by established deadline.

33. Helpful Information • Procard Office • (ProcardOffice@utsa.edu) • Ext. 4059 • Ext. 4060 for application or training questions • Website: • http://www.utsa.edu/pds/procard • Procard Forms • Procard Guidelines • Procard Restrictions List • http://www.utsa.edu/financialaffairs/opguidelines/2.6.4.html for Hospitality Guidelines and Business Expense Form • Disbursements • Ext. 6979 • Citibank • Phone number: 1-800-248-4553 [24 hours a day / 7 days a week] • Lost or Stolen Procard • Contact the bank immediately at 1-800-248-4553 • Notify the Procard Specialist at 458-4059 (during normal business hours) or ProcardOffice@utsa.edu

34. Test Your Procard Knowledge What do I remember?

35. What is the Procard monthly cycle dates? • When should you conduct a vendor check? • What is the MasterCard Single Purchase Limit? • When is it acceptable to not approve a VP7?

36. 1. What is the Procard monthly cycle dates? • 4th of month to 3rd of the following month 2. When should you conduct a vendor check? • Prior to purchases over $500 3. What is the MasterCard Single Purchase Limit? • MasterCard Single Purchase Limit is $5,000.00 4. When is it acceptable to not approve a VP7? • NEVER. VP7 documents should be approved by the DEFINE generated due date!

37. Questions PROCARD AUDIT PROCARD PURCHASE Procard Holder