OLD DOMINION UNIVERSITY PCARD POLICIES AND PROCEDURES DEPARTMENT OF PROCUREMENT SERVICES

Transcription

1 OLD DOMINION UNIVERSITY PCARD POLICIES AND PROCEDURES DEPARTMENT OF PROCUREMENT SERVICES

2 TABLE OF CONTENTS About The Purchasing Card Program... 4 Administration... 4 Benefits... 4 Use of Commonwealth s Purchasing Card Program... 4 Applying for a Purchasing Card... 5 Application Process... 5 Account/Card Security and Restrictions... 5 Credit Card Fraud... 6 Card Lost/Stolen or Fraudulent Activity... 6 Responsibilities... 6 Approver/Reviewer... 6 Distinguishing Between Fraud and Misuse... 8 Accountholder... 8 Policy Purchasing Card Usage Guidelines Restricted Commodities Consequences for Misuse of the PCard or Program Reapplying after Revocation Purchasing Card Program Auditing Past Due Invoices Department Changes/Separation for Accountholder and/or Approver Accountholder Transferring to New Department Approver/Reviewer Changes Separation from the University SWaM Requirements Responsibility Reconciliation Record Retention CAPP Topic Order Placement Methods, Security, and Documentation Purchase and Order Placement Methods Payment Card Industry Security Standards Required Receipt Documentation

3 Account Maintenance Renewal Cards Closing an Account Account No Longer Needed for Current Duties/Inactive Accounts Separation from the University Extended Absences PCard Program Controls Credit Limit Transaction Limit Discretionary Limits MCC Code (Merchant Category Code) Controls Travel and Car Rental Exceptions Travel Car Rental Exception Temporary & Permanent Limit Increases Declining Charges Transaction Review and Reconciliation Billing Cycle Transaction Reconciliation Accountholder Approver/Reviewer Checklist Sub-Account Codes Receipt Documentation Receipt Preparation Lost Receipt Certification Disputing a Charge Returns and Credits Returns Credits Taxes Accountholder Information Activation Code How Can I Download My ODU Reconciliation Report? User Name

4 Forgot My Password Contact Information MCC Tables Blocked MCC Codes and Descriptions Professional MCC Codes Tables Trades MCC Codes Table Limited MCC Codes Table State MCC Codes Table

5 ABOUT THE PURCHASING CARD PROGRAM The Commonwealth of Virginia, through competitive negotiations, has established a purchasing card program for all Commonwealth agencies and institutions. The use of this program is governed by the Commonwealth Accounting Policies and Procedures (CAPP) Manual and the University s Purchasing Card Policy and Procedures. ADMINISTRATION It is the sole responsibility of Procurement Services to develop, implement, monitor, and enforce the policies and procedures governing the use of the Purchasing Card (PCard) Program by Old Dominion University employees. The oversight for this program is provided by the University s PCard Program Administrator, as designated by the Director for Procurement Services. BENEFITS The purchasing card program provides many benefits. Cardholders and departments are empowered to make decentralized purchases up to their delegated authority faster. Purchasing cards add value to the University by reducing the number of checks processed and cut to the vendor community. The purchasing card program allows us to pay one vendor, Bank of America, for all purchases made with the card. USE OF COMMONWEALTH S PURCHASING CARD PROGRAM Purchasing cards may be issued to full or part time classified employees or faculty members of the University. The Accountholder and their respective Approver/University department shall assume full and ultimate liability for employees use of the card. Purchases made through the purchasing card program must comply with the: CAPP Manual and University purchasing card and procurement regulations, policies, and procedures. Purchases made with the card must not: Exceed the established transaction and monthly limits; Be used to purchase items that do not support the mission of the University; Be used to purchase personal items or obtain cash advances; Be loaned to another individual (or sharing account number with another individual); or Be used to purchase restricted commodities. 4

6 APPLYING FOR A PURCHASING CARD APPLICATION PROCESS To apply for a small purchase charge card: 1. Complete SWaM Training both Card Applicant and Approver/Reviewer. (Link to online SWaM Training on Procurement Services SWaM page here: 2. Complete Annual Card Training both Card Applicants and Approver/Reviewers who have not taken the current year s training. (Instructions included with the PCard Application.) 3. Send completed Cardholder Agreement and Approver/Reviewer Responsibility Form to the PCard Program Administrator. 4. Upon receipt/verification of all required documents, the Program Administrator will invite the cardholder to the next scheduled face to face University training. Cards that have arrived will be released at the end of training. 5. The Bank of America Works system will generate a one-time use Welcome for the applicant with a link to log into the Works system and establish a password. Please do not delete this . ACCOUNT/CARD SECURITY AND RESTRICTIONS A card is only authorized for use by the person named on the face of the card. The Accountholder is responsible for ensuring that the card and the card number are secure. If an Accountholder s duties do not require them to work nights and/or weekends, it is strongly recommended that the card be kept secure on campus prior to departing. This will prevent accidental use or loss of the card during other than regular business or operating hours. Accountholders must not: Share the PCard or card number with anyone other than the vendor(s) with whom they are conducting business. If an Accountholder provides their card number to another person, whether they use the card or not, the named Accountholder s privileges will be revoked according to the PCard Policy and Procedure. Post the card number or leave the number or card in a conspicuous place. Mail, fax or the card account number or expiration date. Orders may be mailed, faxed or ed to the vendor leaving the card number and expiration blank, and can be followed by a call to the vendor to provide the number and expiration date over the telephone. Photocopy the card or allow a vendor to photocopy the card. Bank of America will never initiate a call and ask for your card number and expiration date, as they already have this information. If you receive a call from someone claiming to be a representative of Bank of America, ask him or her for his or her name and telephone number. Tell them you will call back. Call the toll free number on the back of the card to verify the identity of the caller. 5

7 CREDIT CARD FRAUD Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or similar payment method as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying or to obtain unauthorized funds from an account. CARD LOST/STOLEN OR FRAUDULENT ACTIVITY Lost/Stolen - What to do 1. Accountholder calls Bank of America to report the card lost or stolen. The Bank will close account and transfer legitimate charges to a new account and ship replacement card to the Program Administrator. 2. Accountholder reports the lost or stolen card to the University s Program Administrator and their Approver/Reviewer in by Sign and return any affidavits required by Bank of America to receive credit for transactions during lost or stolen period. Fraud Activity - What to do 1. Accountholder calls Bank of America to report fraudulent activity on account. The Bank will close account and transfer legitimate charges to a new account, open a fraud investigation, and ship replacement plastic card to the Program Administrator. 2. Accountholder reports fraudulent activity to the University Program Administrator and their Approver/Reviewer by Accountholder will need to sign and return any affidavits required by Bank of America to receive credit for fraudulent charges. Contact Information University s PCard Program Administrator CC: accountholder s supervisor/reviewer Bank of America Contact Information University PCard Program Administrator CC: accountholder s Approver/Reviewer Bank of America The card issuer, Bank of America, typically has fraud detection systems in place and is instrumental in detecting fraud based upon out-of-pattern purchases. RESPONSIBILITIES Monitoring and enforcement are vital to a purchasing card programs success. Cardholders and Approvers should feel free to contact Procurement Services if they are uncertain about policies, procedures, or the procurement process. APPROVER/REVIEWER Approver/Reviewers are expected to ensure that the Accountholders they approve are using the PCard properly; therefore, Approver/Reviewers are expected to know the general policies and procedures governing the University s Purchasing Card (PCard) Program. Specifically, Approver/Reviewers are expected to: Complete mandatory pcard training annually. Failure to complete the mandatory training will result in the suspension of all cards under that Approver/Reviewers. 6

8 Authorize the issuance and use of cards for employees of the University under their supervision, if appropriate. Request spending limits for the Accountholder based on an analysis of departmental spending activity. Ensure proper use of the PCard by reviewing each Accountholder s charges for accuracy and appropriateness of purchase by performing a cross check between ODU Reconciliation Report, receipts and transactions listed in Works prior to signing off on the transactions online in Bank of America Works and signing the ODU Reconciliation Report. If the information is not correct, the Approver/Reviewer should flag the transaction and electronically return it to the Accountholder for additional information and/or correction. Ensure Accountholders do not purchase goods or services restricted or disallowed by University Policy Complete electronic approvals in Works and sign off on paper ODU Reconciliation Report by the 5 th of each month. If charges are deemed accurate and appropriate by Approver/Reviewer after reviewing monthly reconciliation, the Approver/Reviewer should approve the Accountholder s transactions and assignment of the proper budget and subaccount code online in Bank of America Works and sign the hard copy of the ODU Reconciliation Report. Electronic approvals must be completed by both cardholder and approver no later than the 5 th of each month for processing. The hard copy of the ODU Reconciliation Report must also be signed no later than the 5 th of the month. Approver/Reviewer s electronic approval certifies that the goods and/or services purchased are (i) essential and necessary, (ii) are appropriately budgeted for, (iii) have been properly received, (iv) comply with the University s SWaM Plan, and (v) directly support the mission of the University. Ensure credit for returned merchandise is credited back to the PCard. Review receipt documents for sales and use taxes. Follow up with the Accountholder to ensure taxes charged are credited back to the PCard. Ensure the Accountholder s signed monthly Works reconciliation and receipts are centrally maintained in their department for a minimum of three years per CAPP Topic After three years, all records may be disposed of in accordance with the University s Records Management Program. Review, authorize, and submit Accountholder s PCard usage/limit review analysis annually. Ensure Accountholder completes a final reconciliation of charges before transferring to a different department or leaving the University. Also, notify the Program Administrator of the pending departure of the Accountholder and collect the card from Accountholder. Approver/Reviewer shall return the card, cut into pieces, to the Program Administrator or destroy and confirm destruction with the Program Administrator. Revoke the Accountholder s purchase authority for improper use of the card and immediately advise the Program Administrator of the action. Report all instances of order splitting, exceeding transaction, and/or monthly limits, and/or use of card or account number by another individual other than the Accountholder to the Program Administrator. Notify the Program Administrator if there will be an approver change for the Accountholders under their supervision/review. For this type of change, new Approver/Reviewers are required to adhere to responsibilities specified in this section and complete the Approver/Reviewer Responsibility Acknowledgment Form. Existing Approver/Reviewers must complete the Approver/Reviewer Responsibility Acknowledgment form for each new Accountholder. 7

9 DISTINGUISHING BETWEEN FRAUD AND MISUSE Fraud Misuse Fraud involves the unauthorized use of a Misuse involves the cardholder using their card purchasing card by the cardholder, other for transactions not permitted by policy. The University employee or outside party, resulting University receives benefit of the purchased in one or more transactions whereby the goods, but the cardholder has misused the University does not benefit. This includes: card. The misuse includes: Use of the card for personal gain Use of stolen account numbers and/or counterfeit cards Merchant fraud, charging for goods or services and not delivering the goods or services Approvers should monitor for: Altered documents Monthly reconciliations that are always late or not completed Certain receipts not included in the reconciliation documents If receipts are missing, does the nature of the purchase indicate possible inappropriate use of the card? Receipts without enough detail to identify what was purchased Accountholders presenting several reconciliations at once. Purchases made after normal business hours or on weekends Spending patterns and vendor sources (a sudden unexplained increase in purchases or questionable vendor sources may indicate a problem). Accountholders not allowing sufficient time for you to review documents before reconciliation deadlines. Order splitting Exceeding transaction or monthly limits Poor asset management, buying larger quantities or higher quality than the University would deem appropriate Buying from unauthorized suppliers Approvers should monitor for: Altered documents Monthly reconciliations that are always late or not completed Certain receipts not included in the reconciliation documents If receipts are missing, does the nature of the purchase indicate possible inappropriate use of the card? Receipts without enough detail to identify what was purchased Accountholders presenting several reconciliations at once. Purchases made after normal business hours or on weekends Spending patterns and vendor sources (a sudden unexplained increase in purchases or questionable vendor sources may indicate a problem). Accountholders not allowing sufficient time for you to review documents before reconciliation deadlines. ACCOUNTHOLDER Complete the University PCard training to receive his/her Bank of America Visa card. Complete the mandatory purchasing card training each spring. Failure to complete the mandatory training will result in the suspension of card privileges. Follow procurement process & BOV-approved University SWaM Plan. First, cardholder should look for a valid ODU, VASCUPP or other approved cooperative contract. If no contract is available, cardholder should attempt to locate a SWaM vendor who can provide the good or service. If no contract or SWaM vendor is available, only then may a cardholder purchase from the open market. 8

10 Complete electronic approvals in Works and sign off on paper ODU Reconciliation Report by the 5 th of each month. o Accountholder must reconcile charges in Works by assigning the appropriate budget code, subaccount code, contract information, description that is detailed enough to tie the purchase to the University s mission for each transaction, and sign off electronically, as well as on the paper ODU Reconciliation Report. o Reconciliation and sign off should be complete and the signed ODU Reconciliation Report and all associated receipts/credits should be submitted to the Approver/Reviewer to allow sufficient time to review and approve by the 5 th of each month (even if it falls on a weekend day). o By electronically submitting transactions to Approver/Reviewer, Accountholder certifies that the goods and services purchased are (i) essential and necessary, (ii) are appropriately budgeted for, (iii) have been properly received, (iv) comply with the University s SWaM Plan, and (v) directly support the mission of the University. Keep complete and accurate records of purchases to include charge/credit receipt, itemized transaction documents, and any additional documentation required for transaction to be considered in-policy. Agree to use the PCard for approved purchases in accordance with Card Use section of this policy. Agree to return the PCard immediately upon request or upon separation from the University (including retirement). Details can be found in the Separation from the University section of the PCard Procedures document. Complete PCard usage/limit review analysis annually and submits to Approver/Reviewer for final review and approval by deadline. Notify Bank of America if the card is lost or stolen. Also notify in writing the University s Program Administrator and card Approver/Reviewer immediately. Understand the vendor must have a secure website to ensure proper/secure ordering of goods and services through the internet. To verify the vendor has this, the address window must start with This may not occur until the payment information is requested. Request any credits for returned merchandise be issued back to the card and obtain documentation for credit. It is the responsibility of the Accountholder to request a credit to the PCard for returned items. Agree to follow all State regulations and established University Policies and Procedures related to procurement and the purchasing card. Failure to do so may result in revocation of card privileges and/or disciplinary action. 9

11 POLICY PURCHASING CARD USAGE GUIDELINES Using the PCard for purchases allowed by policy decreases the chances of obtaining violations for out of policy spend. Allowable Card Purchases Not a comprehensive list Advertisements (within transaction limit.) Aramark orders (within transaction limit without alcohol) Business cards one color Business forms Car Rental from Enterprise using ODU s contract (Must submit a request to remove the block on card.) Copying and duplicating form the University s contract vendor Colley Avenue Copy and Graphics Envelopes one color Gifts and flowers for funerals, hospitalizations or University-approved events (Ledger 6 only) Goods and services up to $4,999 or accountholder s transaction limit. (Transaction limits may vary from $2,000 - $4,999.) Memberships in professional organizations with a direct benefit to the University (VP written approval must be attached to reconciliation document per University Policy 1060) Non ETF equipment within transaction limit Printing one color jobs up to $ Magazine/Newspaper subscriptions (must be work related) Training class and conference registrations (within transaction limit) Travel Mass transportation ticket only (Must submit a request form to remove the travel block on card prior to use.) Purchases Not Allowed (Out of Policy) Not a comprehensive list Purchases of goods or services for non- University or personal use Past due invoices Any items disallowed by University Policy 3001, such as but not limited to: o Any expenditure that does not benefit the University o Flowers and gifts purchased for Holiday, Thank you, birthday, baby shower, Secretary s day, Bosses Day, etc. o Cleaning of personal clothing work on the job o Motor vehicle moving violations and parking tickets o Donations or contributions to outside organizations Alcoholic Beverages Ammunition Bottled Water (except for outside workers or emergency provisions for employees if the water in the building is hazardous to employees health.) Business travel expenses (lodging, restaurants, internet access, faxes, shuttles, taxi service, etc.) Capital assets Cash advances ETF equipment Firearms Gas/Oil Gift Cards and Gift Certificates Hotel Lodging Improper State Fund Expenditures o Snacks or refreshments o Books for classes unless they remain property of the State o Babysitting o Personal items that are lost or stolen o Personal clothing damaged in the workplace o All expenses related to personal negligence o Retirement parties or employee going away parties o Holiday decorations o Gifts and flowers including expressions of sympathy. Office Supplies Printing over $ Printing from non contract vendors Purchases exceeding a transaction limit of $4,999 Refueling of Enterprise Rental Cars Restaurant Meals Rental of RV s 10

12 RESTRICTED COMMODITIES The PCard cannot be used to Purchase the following: 1. Alcoholic Beverages 2. Ammunition 3. Business Travel Expenses 4. Rental of vehicles from other than the contract vendor Enterprise 5. Copying and Duplicating Services from other than the University s contract vendor Colley Avenue Copy and Graphics 6. Equipment Trust Fund Purchase (any dollar amount) 7. Firearms 8. Furniture over $4, Gas/Oil 10. Gift cards/gift certificates 11. Hotel lodging/accommodations 12. Office Supplies (Office supplies should be ordered the University s contract vendor who provides summary billing to the University.) 13. Personal items and cash advances 14. Purchases from employees of the Commonwealth 15. Restaurant Meals 16. Goods or services restricted or disallowed by University Policy Improper Expenditures form State funds (Ledger 1) as detailed in CAPP Topic 20310: Employee Personal Expenses such as: Books for classes (unless they remain State property) Snacks or refreshments Babysitting Non-business related newspapers or magazine subscriptions Personal items that are lost or stolen Tuxedos or other formal wear Clothing (non-uniform) or repairs to clothing damaged in the workplace All expenses related to personal negligence of the employee, such as traffic fines, parking tickets, red light camera tickets, etc. Agency sponsored event expenses incurred which do not clearly support the agency mission: Retirement parties or employee going away parties Holiday decorations Alcoholic beverages Charitable contributions Gifts and flowers, including expressions of sympathy 11

13 CONSEQUENCES FOR MISUSE OF THE PCARD OR PROGRAM The PCard may be suspended and/or revoked for any of the following violations: VIOLATION Exceeding transaction limit set by Program Administrator Splitting Orders (issuing separate or repeated transactions to fall within the single transaction limit with the same vendor and/or for similar commodities) Use of card or card number by another individual Use of card to pay past due invoice Purchase of restricted commodities (listed in the Purchase Restrictions section of the PCard Policy document). Failure to submit documents in accordance with the University s PCard policy and procedure. Types of submission violations would include, but are not limited to: ACTION 1 st offense 90 day suspension 2 nd offense account revocation 1 st offense 90 day suspension 2 nd offense account revocation 1 st offense 90 day suspension 2 nd offense account revocation 1 st occurrence violation notice will be issued 2 nd occurrence 30 day suspension 3 rd occurrence 90 day suspension 4 th occurrence account revocation 1 st occurrence violation notice will be issued 2 nd occurrence refresher training 3 rd occurrence 30 day suspension 4 th occurrence 90 day suspension 5 th occurrence account revocation 1 st occurrence violation notice will be issued 2 nd occurrence refresher training 3 rd occurrence 30 day suspension 4 th occurrence 90 day suspension 5 th occurrence account revocation 1. Failure to log into Bank of America Works and sign off on transactions, by the Accountholder and/or Approver/Reviewer by the 5 th of the month 2. Failure to reconcile transactions and maintain required documentation in the central departmental PCard file for credit card documents by the 5 th of the month The PCard may also be suspended and/or revoked because of a: Request by the Accountholder s Approver/Reviewer and/or Budget Unit Director. Determination made by Procurement Services due to continued violations of policies and procedures. Termination of employment or change in employment location. 12

14 REAPPLYING AFTER REVOCATION Accountholder privileges revoked for purchasing violations listed in the PCard Suspension and Revocation section of the University s PCard Policies document may have their privileges revoked for one year. If an Accountholder s privileges are revoked, the employee may re-apply at the end of the revocation period. Applications will be reviewed for new privileges on a case-bycase basis. PURCHASING CARD PROGRAM AUDITING PCard transactions may be audited for compliance with the Commonwealth Accounting Policies and Procedures (CAPP) Manual and the University s Purchasing Card Policies and Procedures. PAST DUE INVOICES The Commonwealth of Virginia prohibits the use of the PCard to pay past due vendor invoices. DEPARTMENT CHANGES/SEPARATION FOR ACCOUNTHOLDER AND/OR APPROVER ACCOUNTHOLDER TRANSFERRING TO NEW DEPARTMENT Accountholders must notify the Program Administrator if they are transferring to a new department within the University, and their current card will be cancelled. If the transferring employee will need a new card, the Supervisor in the new area will need to process a Purchasing Card Application for them. APPROVER/REVIEWER CHANGES Approver/Reviewer must notify the Program Administrator if there will be an approver change for the Accountholders under their supervision/review. For this type of change, the new incoming Approver/Reviewers are required to complete mandatory training requirements and sign and return a Approver/Reviewer Responsibility Acknowledgment Form for each cardholder in the area of supervision. SEPARATION FROM THE UNIVERSITY Accountholders separating from the University must notify the PCard Program Administrator of the date of their separation as far in advance as possible. The Program Administrator will advise on the account termination and final reconciliation procedure. If the separation from the University is due to extenuating circumstances, such as hospitalizations, death in service, etc., the Approver/Reviewer should contact the Program Administrator for guidance on account closure. SWAM REQUIREMENTS The Accountholder s and Approver/Reviewer s electronic approval of the transaction certifies that every reasonable effort was made to use a Virginia SBSD certified SWaM vendor when available and when price was deemed fair & reasonable and goods/services were available. 13

15 RESPONSIBILITY RECONCILIATION Reconciliation is the responsibility of each Accountholder and his or her Approver/Reviewer. Details can be found in the Reconciliation section of the PCard Procedures document. RECORD RETENTION Accountholder s PCard monthly reconciliation reports, receipts, and documents are departmental records, must stay within the department, and be maintained in a central purchasing card file for a minimum of three years per CAPP Topic If an Accountholder transfers to a different department or separates from the University, the file remains with the department. After three (3) years, all records may be disposed of in accordance with the University s Records Management Program guidelines. A benefit of decentralized records is that it prevents paper files from getting lost in transit. CAPP TOPIC For additional information on the PCard Program, read Topic of the Commonwealth Accounting Policies and Procedures (CAPP) Manual. 14

16 ORDER PLACEMENT METHODS, SECURITY, AND DOCUMENTATION Ensure the price quoted represents the full obligation of the University for the item or service ordered. The price quoted should include shipping charges, packaging charges, installation charges etc. to avoid future billing and payment problems. PURCHASE AND ORDER PLACEMENT METHODS Type of Order Instructions Not Allowed Over the counter Provide the vendor with the PCard and any documentation required to honor our taxexempt status. Review all charges at the point of sales before signing the transaction receipt to make sure all purchased items are delivered and sales tax was not added to the receipt. Phone Order Provide the vendor with the account number and expiration date. Merchant should write Phone Order on the signature line. Accountholder must follow up with the vendor to obtain a valid paid receipt document. Internet/Electronic Vendor web site must have a secure site with the address beginning with or a secure socket layer of 2.0 or greater. Accountholder must follow up with the vendor to obtain a valid paid receipt document. Faxing the account number or expiration date to a vendor. ing the account number and expiration date to a vendor. Mailing the account number and expiration date to a vendor. Allowing a vendor to photo copy your card for any reason. PAYMENT CARD INDUSTRY SECURITY STANDARDS Payment Card Industry (PCI) security standards are technical and operational requirements set by the PCI Security Standards Council to protect cardholder data. The standards apply to all entities that store, process and/or transmit cardholder data. Merchants who accept or process payment cards must comply with the PCI standards. These standards include protecting stored cardholder data, encrypting transmission of cardholder data across open, public networks, and restrict access to cardholder data by business need to know. Merchants and any other service providers involved with payment card processing must never store sensitive authentication data after authorization. This includes sensitive data that is printed on a card, or stored on a card s magnetic stripe or chip. REQUIRED RECEIPT DOCUMENTATION Accountholders must obtain a receipt for each purchase using the PCard. The receipt must include the following: 1. Date of Purchase 2. Vendor Name 3. A description of the goods or services purchased 4. Amount of purchase (Itemized if multiple items are purchased) 5. Method of payment (The documentation should reflect the PCard was used for payment, showing last four digits only.) 6. Balance due should reflect $

17 ACCOUNT MAINTENANCE RENEWAL CARDS Active cards are renewed every three years. The cards are sent to the University s Program Administrator for distribution. To pick up a renewal card, picture identification along with the completed and signed renewal agreement form is required. The renewal agreement must be signed by the Accountholder and the Accountholder s Approver/Reviewer. Accountholders located off campus should contact the University Program Administrator for assistance. CLOSING AN ACCOUNT ACCOUNT NO LONGER NEEDED FOR CURRENT DUTIES/INACTIVE ACCOUNTS If an accountholder s duties or responsibilities change and the account is no longer needed, contact the University s Program administrator for guidance on closing the inactive account. Closing inactive accounts reduces the University s risk and exposure. SEPARATION FROM THE UNIVERSITY An Accountholder separating from the University must notify the PCard Program Administrator of the date of their separation. The Accountholder is responsible for completing a final reconciliation of all pending charges and returning the card pieces to the Program Administrator. Approver/Reviewers of accountholders must notify the Program Administrator of the pending departure of the Accountholder and are responsible for ensuring the Accountholder has completed a final reconciliation in Works. Contact the Program Administrator also is the separation was due to extenuating circumstances (disability, hospitalization, death in service, etc.) EXTENDED ABSENCES Accountholders anticipating an extended leave of absence should contact the Program Administrator prior to leaving. The Accountholder s account will be suspended until the Accountholder returns to work. Types of extended absences would include maternity leave, family medical leave, medical leave, military obligations, sabbaticals, etc. This temporary suspension will prevent unauthorized and unmonitored use of the account. Upon return to work, the Accountholder will contact the Program Administrator to have the account reactivated. If an Accountholder is on extended leave due to a medical emergency or worker s compensation issue, the Accountholder s Supervisor should contact the Program Administrator to arrange for the temporary suspension. Approver/Reviewers anticipating an extended leave of absence should contact the Program Administrator prior to leaving. The Program Administrator shall provide guidance on the appropriate delegation of authority for transaction sign off in Works. 16

18 PCARD PROGRAM CONTROLS CREDIT LIMIT Accountholder s monthly limit should be based on a department s actual need. By keeping the amount set at actual need, the total dollars at risk can be reduced. TRANSACTION LIMIT The accountholder s transaction limit should be assigned based on the departmental need to maximize use of the PCard at either $2.000 or $4,999. DISCRETIONARY LIMITS Discretionary limits have been assigned to each PCard. A discretionary limit is half of an accountholder s monthly limit. Once the discretionary limit has been reached, sign off is required by both the accountholder and supervisor to obtain the other half of the funds. (This discretionary limit is not related to Ledger 6 funds. It is a term used by Bank of America Visa to describe an expenditure limit.) New transactions will decline until sign off is completed. MCC CODE (MERCHANT CATEGORY CODE) CONTROLS MCC s are established by the bankcard associations or banks to identify different types of businesses. Individual merchants select the codes best describing their businesses. Accountholders may find some of the merchants they attempt to do business with may have a code that does not appear to support their core business. Please remember, some merchants operate multiple businesses or change the nature of their businesses over time. If a merchant has an inaccurate MCC, the merchant should notify his or her acquiring bank and request that it be corrected. As part of the PCard program s controls, accountholder s access to some businesses has been limited. University accountholders are divided into one of two categories, the Professional Category or Trades Category. Professional Category Access allow for items needed in: Offices Classrooms Laboratories Trades Category Access allowed for items needed in: Building maintenance and repair Grounds Vehicle maintenance and repairs The University s MCC Code Tables are located in a table in the back of this document for your convenience. Accountholders and Supervisors are reminded to use University, VASCUPP, or State contracts as available. If the goods or services are unavailable from a contract, Accountholders are required to use SWAM vendors when the prices are fair and reasonable. 17

19 TRAVEL AND CAR RENTAL EXCEPTIONS TRAVEL This exception may be used to purchase domestic (no international) mass transportation tickets only and requires the written permission of the accountholder s supervisor. Mass transportation includes domestic airline, bus, and train tickets. The PCard cannot be used to pay for other business travel expenses, including, but not limited to lodging, car rental, restaurant meals, checked baggage fees, shuttles, or taxi services. This exception is good for one year and must be renewed annually with the Accountholder Usage Analysis. AIRLINE TICKET PURCHASES (INFORMATION TAKEN FROM CAPP TOPIC 20355) Domestic airline ticket purchases may not exceed the Accountholder s transaction limits. International tickets are not allowable on the purchasing card. For purchases that exceed Accountholder s limits, Accountholders may utilize the Bank of America VISA Employee Paid (Individual Liability) Travel Card (Refer to Office of Finance Policies and Procedures) or process by using an eva purchase order. CAR RENTAL EXCEPTION This exception may be used to lease vehicles from Enterprise Leasing Company using the VASCUPP Contract, ODU Account # XZ21270) for business related travel only. This exception is good for one year and must be renewed annually with the Accountholder Usage Analysis. The Accountholder and Approver/Reviewer agree to: 1. Provide credit card information to Enterprise so the traveler will not have to provide the credit card at check in. Instruct all drivers that car rentals not obtained through the 912 W. Little Creek office will need to be paid by the renter. Instruct drivers to refuel vehicles using cash, personal credit card, or University Travel Card before returning them to Enterprise. The driver will use the gasoline receipt to file for reimbursement using the Travel Reimbursement guidelines. 2. The Accountholder and Approver/Reviewer agree to recover any inappropriate additions such as, but not limited to, refueling cost, traffic, or parking tickets, red light camera tickets, etc., added to the rental charge from the driver, deposit to the appropriate University budget, and document and attach the deposit slip noting amount recovered to the Enterprise receipt. 3. Monitor and recover funds from drivers for rentals that are determined were not used for University/State business. TEMPORARY & PERMANENT LIMIT INCREASES Approver/Reviewers may request a temporary monthly limit increase for an accountholder to meet a department s cyclical need. The request can be submitted on the PCard Limit Increase form. 18

20 DECLINING CHARGES PCard charges may decline due to either an accountholder attempting to exceed their transaction or monthly limit, an account reaching the discretionary limit, or a Merchant Category Code (MCC) control. Accountholder s can determine the reason for a declined charge by logging into Bank of America Works. When in Works, accountholder s will: Click Accounts > Account Portfolio. The Accounts list displays. Click Account ID on the desired account. The sign action menu displays. Select View Full Details. The Account Details screen displays. Click Actions on the right of the Account Details screen. Select View Auth Log. The Authorization Log data displays. This Authorization log will give the reason for a declined charge. If it is due to an MCC code control, it will also list the code number. TRANSACTION REVIEW AND RECONCILIATION BILLING CYCLE The Bank of America billing cycle end date is typically on or about the 15th of each month. Each Accountholder will receive an notification with a link to the automatically deployed monthly ODU Reconciliation Report. The current year billing cycle dates are located on the Procurement Services website. Reconciliation is the responsibility of each Accountholder and their Approver/Reviewer. More details are available in the Responsibilities section of the University PCard Procedure document. Accountholders are responsible for logging into the Bank of America Works online and reconciling charges weekly or more frequently if needed. Transactions posted on the Works site should be reviewed and the appropriate budget code and subaccount code(s) assigned by the Accountholder. If a contract is used, accountholders should record the contract number. Accountholders will also use the comment section to describe the business reason for each purchase in enough detail that it is evident to a person outside of the department that the purchase relates to University business. Accountholders will use the monthly ODU Reconciliation Report provided via by the Works Application to track expenditures and use as a cross reference for the electronic reconciliation along with the mailed Bank of America bank statement. The Accountholder s completed and signed monthly Works Reconciliation Report, associated receipts, Bank of America statement, and other supporting documents (Aramark forms, VP signature for membership approvals, etc.) are passed on to the Approver/Reviewer for review, approval, and sign off. Reconciliation files shall be centrally maintained in the department file for a minimum of three years per CAPP Topic and/or until audited by the Auditor of Public Accounts (APA) and/or Department of Accounts (DOA). After three years, all records may be disposed of in accordance with the University s Records Management Program. 19

21 TRANSACTION RECONCILIATION Reconciliation is complete upon both the Accountholder and the Approver/Reviewer electronically signing off on the transaction(s) in Works and signing the hard copy of the ODU Reconciliation Report with dates. Reconciliation is due by the 5 th of each month. Reconciliation includes: Accountholder review of supporting documentation and ODU Reconciliation report, allocation of appropriate budget code, subaccount code, contract/swam information, detailed description of the purchase, and electronic sign off in Works; and signing the hard copy of the ODU Reconciliation Report. Approver/Reviewer review of supporting documentation and attached ODU Reconciliation report, verification of account codes, electronic sign off in Works, and signing the hard copy of the ODU Reconciliation Report. ACCOUNTHOLDER Receives Bank of America Works alerting that transactions are available to be reviewed, allocated, and signed off on. Accountholder may log in to Works prior to receiving alerts to sign off on transactions. Logs into Works to: o access the Transactions Requiring Sign Off, o compare the charge/credit receipts and itemized transaction documents to the transactions listed in Works, o assign the appropriate budget code, sub-account code for each transaction, o include a business reason for the purchase in the comments section, and o include Contract/SWaM information. Downloads, prints, and signs ODU Reconciliation Report available on the 17 th either through the ed link from Works or by logging into the Works application and looking in the Completed Reports area. Performs required tasks, to include: o print, sign and date the monthly ODU Reconciliation Report, o attach the mailed Bank of America statement, o attach receipts and credit documentation for all transactions, o forward the reconciliation packet to their Approver/Reviewer for use during review and approval of submitted Accountholder transactions in Works, and o allow sufficient time for the Approver/Reviewer to review, approve, and complete all reconciliation activity by the 5 th of each month. Resolve incorrect and duplicate charges as quickly as possible, including a status note in the Works comment section. Provides notes for credits issued with the date and amount of the original charge in the comments field on the Allocation tab in Works. The accountholder will assign the appropriate budget and sub account code to the credit. Ensure all credit documents are attached to the ODU Reconciliation Report. 20

22 APPROVER/REVIEWER CHECKLIST Step Document or Application What to Do 1 ODU Reconciliation packet includes printed ODU Reconciliation Report, Bank of America statement, receipts, credit slips, support documentation, and special signatures if applicable. Receive the printed ODU Reconciliation packet and electronic transactions from the accountholder with ample time to sign off by the 5 th of the month. 2 ODU Reconciliation Packet Verify: Report is for correct billing cycle in the header section of the report. Printed report has been signed by the accountholder. If not, return to accountholder for signature. The BOA mailed statement is attached to the packet. If not, return to accountholder to complete packet. Transaction amounts on the mailed Bank statement match the transactions on the printed ODU Reconciliation Report. If not, follow up with the accountholder for correct documentation. Sales tax charged to transactions have been recovered. If they have not been, follow up with accountholder to recover the sales tax. Valid contract was used for the goods or services. If a contract was not used, verify accountholder attempted the purchase from a certified SWAM vendor. If a valid contract or certified SWAM vendor was not used, remind accountholder of requirement to seek competition from certified SWAM vendors. Paid receipt documents are supported by an itemization of the charges. If not, contact the accountholder for correct documentation. Paid receipts have the following requirements: o An indication the Visa was used for payment, i.e. last for digits. o Description of goods or services purchased o Vendor name o Transaction Date o Transaction Total o Balance due = $0.00 The purchase is not a split order (multiple purchases from the same vendor for the same or similar commodity within a short period to circumvent the procurement process.) Presidential or designee approval is in the file for membership dues as allowed by University Policy Verify there are no charges as restricted by University Policy Aramark orders contain all needed documentation: o Paid receipt from Aramark o A list of attendees o A description of business discussed o Authorizing signature on the catering form o If these are not present, return the file to the accountholder for completion. 3 Bank of America Works Verify the following: All of the transactions listed on the Bank statement and ODU reconciliation report are visible in the Works application under the Pending Sign Off tab. 4 Bank of America Works Locate the first transaction or credit you are ready to view in BOA Works Verify accountholder entered contract number in the Comment box if applicable Verify accountholder entered business reason for the purchase on each transaction in BOA Works. Verify appropriate budget and subaccount codes are entered for each transaction. o If not, raise a flag on the transaction to return it to accountholder for correction. 5 Bank of America Works Sign off on the transaction electronically. 6 Bank of America Works Repeat the above steps for each transaction in Works for the cycle. 7 ODU Reconciliation Packet Document outstanding issues for your file and contact accountholder to have them resolved. 8 ODU Reconciliation Report Sign and date printed ODU Reconciliation Report. 9 ODU Reconciliation Packet File all accountholder reconciliation packets in a central location for future reviews and audits. 21

23 SUB-ACCOUNT CODES It is the Accountholder s responsibility to ensure that the sub-account code used is the best that describes the item or service purchased. Subaccount descriptions can be found on the Works Allocation tab under GL Assistant and on the ODU Finance website. RECEIPT DOCUMENTATION Accountholders must have proper receipt documentation for all purchases of goods or services. Proper itemized receipt documentation have the following elements: The receipt must include the following: 1. Date of Purchase 2. Vendor Name 3. A description of the goods or services purchased 4. Amount of purchase (Itemized if multiple items are purchased) 5. Method of payment (The documentation should reflect the PCard was used for payment, showing no more than last four digits.) RECEIPT PREPARATION Small paper receipts should be attached to 8-1/2 x 11 sheets of paper (taped or stapled along the edges), attached to the monthly reconciliation report in transaction sequence, and centrally maintained on file in the department for audit purposes. LOST RECEIPT CERTIFICATION If a receipt for a purchase has been lost, the Accountholder will need to complete a Lost Receipt Certification form with the appropriate signatures to accompany the monthly reconciliation report. This form will established what was purchase, the vendor used, amount of purchase, and the reason for the lost receipt. This form is available on the Procurement Services website. DISPUTING A CHARGE Accountholders should first contact the vendor and try to resolve the issue with the merchant. Keep records of all discussions including names, dates, and agreements. Get a written confirmation of the credit from the merchant. If efforts to resolve a disputed charge with a vendor are unsuccessful, Works includes a Dispute button in the Transactions General tab which can be selected to initiate a dispute. If a transaction pending Accountholder sign off is not recognized or requires more information, contact Bank of America. Errors or questions about an Accountholder s bill must be received in writing no later than 60 days after the first statement on which the error or problem appears. Mail this information to Bank of America, PO Box 53101, Phoenix, AZ The letter must include the following information: The company name, Accountholder name and account number in question, The dollar amount of the suspected error, and A written description of the error and why the Accountholder believes there was a billing error. 22

24 RETURNS AND CREDITS RETURNS Contact the vendor for the proper method of return and return items promptly. Documentation of the return (such as a credit receipt) issued by the vendor is required. The date of return and amount should be entered in the comments field on the Transaction tab in Works, and documentation should be attached to the Accountholder monthly Reconciliation Report. The Accountholder may be asked to pay restocking fees charged by the vendor if the Accountholder ordered the incorrect item. Restocking fees should not apply if goods arrived damaged or the vendor shipped the incorrect item. Restocking fees charged by the vendor should be fair and reasonable. Accountholders should use good judgment in determining whether to keep an item or return it and pay the restocking fee. CREDITS It is the responsibility of the Accountholder to request a credit to the PCard for returned items. It is the responsibility of the Accountholder s Supervisor to verify that all returned merchandise has been properly credited. TAXES The University is a State agency and is exempt from most sales and use tax; however, tax is required on prepared foods. It is the Accountholder s responsibility to claim the tax exemption for all purchases other than food. When making over the counter purchases, the Accountholder will need to inquire where the tax-exempt transactions are handled in that particular business. Find out what documentation is required to establish tax exemption. It is the Accountholder s responsibility to present the required documentation prior to making the purchase. If orders are placed via the internet and the documentation shows a lump sum total, contact the merchant for an itemized breakdown. This will ensure sales and use taxes were not included in the final cost. A Tax Exempt sticker is affixed to each card with the University s taxexempt number. If the sticker is missing or illegible, a replacement sticker may be obtained from the Program Administrator. ACCOUNTHOLDER INFORMATION ACTIVATION CODE All cards must be activated prior to use, the activation code is a combination of the University s Agency number and your birth date: 221mmddyy. HOW CAN I DOWNLOAD MY ODU RECONCILIATION REPORT? Accountholders will receive an notification that the monthly ODU Reconciliation Report is available. This Reconciliation Report may be downloaded by going to the Works home page, clicking on the Reports Tab > clicking on Completed > choosing the needed report from the list 23

25 USER NAME User names are typically the user s MIDAS ID. Contact the Program Administrator if you have questions or need assistance. FORGOT MY PASSWORD If you have forgotten your password, you can use the forgot password link on the Works web site. On the login page, enter the following information: address Username Under the login in box click on Forgot your password? The Works site will you information on resetting your password. CONTACT INFORMATION Bank of America Accountholder Customer Service University s PCard Program Administrator University s Back Up Administrator Heather E. Somervail Department of Procurement Services Erin Kyer Department of Procurement Services hsomerva@odu.edu ekyer@odu.edu