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Contents
PCard Use and Restricted Items
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Use Of The Purchasing Card
PCard General Guidelines Card
PCard Misuse Policy and Pyramiding Policy
Characteristics of the Purchasing Card
Restrictions/Non-Allowable Expenditures
Strategic Alliances and University-Wide
Contracts
Join the PCard Program >>
Criteria for Departmental Participation
Getting Started
Card Management >>
Purchasing Cardholder Application and
Management
Delegation or Assignment
Assignment of FRS Account Numbers
Spending Limits
Purchasing Card Security
Activating The Card
Card Renewal
Canceling A Card
Placing an Order
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Transaction Flow
Placing Phone Orders
Sales Tax Information And Itemized Invoices
Customer Numbers
Delivery Instructions
Billing Address Information
Damaged Goods/Disputed Charges
Help For Vendor Problems
when Placing Phone Orders
How to Make Changes
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Liason
Reconciler and/or Approver
Cardholder Changes
Allowable FRS Accounts
Allowable Object Codes
Roles and Responsibilities
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Merchants
JP Morgan
Chase Bank
Financial Service Office/Accounts Payable
Purchasing
Purchasing
Card Program Administrator
Department Head
Department Purchasing Card Liaison
Department Approver
Department Reconciler
Cardholder
PCard Use and Restricted
Items
Use Of The Purchasing Card
The Purchasing Card may be used wherever Visa is accepted, following University
Purchasing policy and procedures.This convenient purchasing tool may be used directly
at a storefront or for orders via the phone, fax or online.Suggested uses include
operating supplies, lab equipment, computer equipment, conference registration fees,
professional memberships and dues; as well as non-contracted services such as cell
phone bills and equipment repair.The Purchasing Card is to be used for University
of Arizona business only, not for personal use. All
transactions made using the Purchasing Card must benefit and support the University’s
mission of education, research and public service.Fraudulent or intentional
miss-use of the card will result in cancellation of the card and/or possible criminal
charges.
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PCard General Guidelines Card
This wallet sized card provides a partial list of allowable and unallowable purchases on the PCard. JPMorgan Chase and PCard contact information is also listed.
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Purchasing Card Misuse Policy and Pyramiding Policy
In accordance with the University of Arizona policy for the Misuse of University
Assets, the following guidelines have been established for reporting misuse specifically
through the Purchasing Card program.
Suspected
misuse of University assets through the Purchasing Card Program should immediately
be reported to the Purchasing Card Administrator, Purchasing Card Program Manager
or Purchasing Director.
The Purchasing
designate who receives the notification will in turn contact the Senior Vice President
for Business Affairs, as well as the credit card bank, JPMorgan Chase, to initiate
a claim in the Visa Liability Waiver Program.
Following the University of Arizona Misuse of Assets policy, the
Senior VP for Business Affairs will determine the appropriate course of action,
which may include an investigation by Internal Audit, and/or the University Police
Department.
These guidelines are established for reporting University
Employee Misuse of a University Purchasing Card, and do not apply to non-employee
fraud, such as lost/stolen cards. Non-employee fraud should continue to be reported
to the PCard Administrator and the credit card bank, JPMorgan Chase.
The University of Arizona Policy on
Employee Misuse of Assets:
http://web.arizona.edu/~policy/misuse.pdf.
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Pyramiding, or fragmenting, is making a purchase greater than $5,000 and paying
for the item(s) in separate payments of less than $5,000 over an interval of time.
Individual purchases to any merchant may not exceed $5000. Intentional
fragmenting of a purchase may result in civil or criminal penalties under the Arizona
Board of Regents Procurement Policy and/or cancellation of the Purchasing Card.
For more information, go to: http://pacs.web.arizona.edu/pacs_home.html.
Characteristics
of the Purchasing Card
- The University of Arizona Individual Purchasing Card is a J P Morgan
Chase Visa card issued to an individual employee. The Department name appears on
the card under the cardholder name for reference. Individual Purchasing Cards
are nontransferable and non-assignable and remain the property of the University
of Arizona and J P Morgan Chase.
- The University of Arizona Departmental Purchasing Card is a J P
Morgan Chase Visa card issued to a University department. The University’s
name appears on the card under the Department name for reference. Departmental
Purchasing Cards are transferable and assignable and remain the property of the
University of Arizona and J P Morgan Chase.
- Each Purchasing Card is assigned a default FRS account number and object code. The
FRS account number and object code may be changed at any time. To change or
split fund an account number or to change an object code on a single transaction,
the cardholder must notify their reconciler when documentation is handed in for
each transaction.
- Purchasing offers three Purchasing Card Programs for Individual or Departmental
PCards: the Classic PCard Program, the Travel Enhancement Program and the PCard Plus Program. Each
PCard may be set up with a combination of these programs.
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Restrictions / Non-Allowable Expenditures
Policy Restrictions by Program:
Expenditure Category |
Classic PCard Program |
Travel Enhancement Option |
PCard Plus Enhancement Option |
Alcohol |
Not Allowed |
Not Allowed |
Not Allowed |
Airfare / Primary Mode Transportation |
Not Allowed |
Allowable (4) |
Not Allowed |
Animals |
Not Allowed |
Not Allowed |
Not Allowed |
Business Meetings / Business Entertainment |
Not Allowed |
Not Allowed |
Allowable |
Cash advances / Wire transfers / Money orders |
Not Allowed |
Not Allowed |
Not Allowed |
Conflict of interest vendors |
Not Allowed |
Not Allowed |
Not Allowed |
eBay or PayPal (if used in conjunction with eBay) |
Allowable(1) |
Not Applicable |
Not Applicable |
Employee Service & Achievement Awards |
Not Allowed |
Not Allowed |
Allowable |
Firearms or ammunition |
Not Allowed |
Not Allowed |
Not Allowed |
Flowers / Decorations |
Restricted (2) |
Not Allowed |
Allowable (2) |
Food |
Restricted (3) |
Not Allowed |
Allowable |
Foreign Visitors (Non-Resident Alien)
(Payments to or on behalf of a foreign visitor; including travel related expenditures such as airfare, shuttle, train, etc.) |
Not Allowed |
Not Allowed |
Not Allowed |
Gifts / Donations |
Not Allowed |
Not Allowed |
Not Allowed |
Hazardous Materials
(Hazardous materials are defined as radioactive materials, compressed gas, bulk ethyl alcohol and DEA licensed materials, including prescription drugs) |
Not Allowed |
Not Allowed |
Not Allowed |
Hotels |
Not Allowed |
Not Allowed |
Not Allowed |
Payments to Individuals Refer to FSO Policy 9.12 |
Not Allowed |
Not Allowed |
Not Allowed |
Medical Services
(Medical Services are defined as expenses related to medical care or services.) |
Not Allowed |
Not Allowed |
Not Allowed |
Pre-paid Cards including Gift Cards and Phone Cards |
Not Allowed |
Not Allowed |
Not Allowed |
Purchases over $5,000 |
Not Allowed |
Not Allowed |
Not Allowed |
Relocation / Moving Expenses for Employees |
Not Allowed |
Not Allowed |
Not Allowed |
Rental Vehicles/Gasoline |
Not Allowed |
Allowable (5) |
Not Allowed |
NOTES: |
(1) Purchasing cardholder must identify the seller on eBay before making a purchase through eBay or PayPal (if used in conjunction with eBay). Seller info must be printed from eBay or PayPal if complete, or an email response from seller, which includes: full name and complete address (including state / country) must be printed and attached to the itemized invoice. Purchasing cardholder agrees to review the “seller information page” in eBay before making a purchase. If the seller information page reflects a negative / problem seller, or if the seller refuses to identify the necessary information required, the cardholder agrees NOT to bid on or purchase the item(s) in question |
(2) Flowers / Decorations are restricted where no business is conducted nor business objectives present (for example, a life event such as a birthday or memorial service, a holiday related party or employee social function). |
(3) Food for research, animal feed, water for research, food for patients (i.e. snacks for patients after blood draws), food for training (nutritional research or classroom use) is currently allowed on the PCard without the PCard Plus Enhancement Option. |
(4) Airfare and Primary transportation (shuttle, bus, train, taxi) may be purchased for employees or on behalf of non-employee; non-employee being defined as a seminar / conference speaker, visiting expert, an unpaid employee, a candidate being interviewed for an open position (recruitment) or a student. Non-employees must be a US Citizen and not a foreign visitor (non-resident alien) to use the PCard. |
(5) Purchasing Rental vehicles or gasoline on behalf of a non-employee is Not allowed; Purchasing gasoline for a personal vehicle is Not allowed on the PCard; even if used while on University Business. |
Join the PCard Program
Criteria for Departmental Participation
In order to participate in the University of Arizona Purchasing Card program, each
department/unit must be able to give "yes" answers to the following questions:
- Will your unit be able to insure that rules and regulations
governing the use and protection of the Purchasing Card will be followed? These
concerns stem from the fact that the Purchasing Card is not a personal credit card,
thus is not protected from fraudulent use in case of loss or theft or misappropriation
of the account number unless JP Morgan Chase is notified by the end of the month
following the month in which fraudulent charges occurred.
- Will your Department Head or equivalent administrator
empower one of your employees to act as a Purchasing Card Liaison for purposes of
reporting Purchasing Card policy violations or any other misuse of the card? This
employee will need top level authorization and on-going support.
- Will the Department Head take immediate, appropriate
action upon learning of card misuse? Cards can be suspended temporarily, individual
and monthly purchase limits can be lowered, or cards can be canceled, based on the
degree of misuse. Notify the Program Administrator immediately.
- Do you have staff that can provide prompt, reliable reconciliation
and approval of Purchasing Card transactions? Both primary
and backup Reconcilers and Approvers should be identified within your unit. NOTE:
Reconcilers may be cardholders, and may reconcile or approve their own transactions,
but not both. If the Approver in a department must also be a cardholder, another
person must function as the Reconciler or Approver for their transactions.
- Will your department be able to establish a system for
handling and archiving purchase documentation, including order forms, receipts,
invoices, packing lists, etc. Note: The department is solely responsible for maintaining
detailed documentation for audit purposes.
- Do the Reconciler and Approver have the computer hardware
necessary to run the JP Morgan Chase PaymentNet Web Site required for this program?
Each Reconciler and Approver will need a computer for this purpose.
In order to run PaymentNet effectively, we recommend the following:
· An Internet browser that supports SSL (Secure Sockets
Layers). We recommend Internet Explorer 4.01 SP2 or greater, as well as Netscape
4.7 or greater. · Screen resolution of 800 x 600 or
greater is recommended. · Access to the Internet.
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Getting Started
When your unit meets the criteria described above, here are
the steps for getting started. (If your unit wants to participate even though it
does not have sufficient staff to provide for a Reconciler, an Approver and backups
for them, contact the Purchasing Card Program Administrator).
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Step 1
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Submit a New Department Application. This includes determining whom the Liaison between
your cardholders and the PCard Program Department will be. The Department Head or
equivalent administrator must sign and authorize their department to join the PCard
Program. New Department Applications should be mailed
to the PCard Program Coordinator.
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Step 2
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Assign Reconciler and Approver roles (including backups) to department employees.
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Step 3
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A. Identify department members that are to be cardholders and submit applications. Complete an Individual
Purchasing Card Application for each employee.
Fill out all fields, click on the SUBMIT button
at the bottom of the screen, print the resulting form and get it signed by the cardholder,
liaison and department head. New applications should
be mailed to the PCard Program Coordinator.
B. If requesting a Department Card, identify the responsible person who will
administer the card. Complete a
Departmental Purchasing Card Application for a card in the name of the department
to be held in the business office. Fill out all fields, click on the
SUBMIT button at the bottom of the screen, print the resulting form and
get it signed by the responsible person, liaison and department head.
New applications should be mailed to the PCard Program Coordinator. |
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Step 4
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Set up a system for handling and archiving purchase documentation, including order
forms, receipts, invoices, packing lists, etc. Remember: The department is solely
responsible for maintaining detailed documentation for audit purposes.
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Step 5
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Identify potential cardholders by applying the following criteria:
- An employee of the University of Arizona. Responsible
and reliable in following the policies concerning the use and protection of the
card. The majority of potential purchases are suitable for Purchasing Card use.
- Will be responsible and reliable in timely submission
of order information, invoices, receipts, etc. to the Reconciler.
Consider the possibility of requesting a Purchasing Card for a centrally located
employee to place orders for those who might need to make these kinds of purchases
only infrequently.
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Step 6
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The University of Arizona and the departments are responsible for determining credit
card transaction limits for each cardholder. The University has set the maximum
limit for single transactions at $5,000. Any department may set a lower limit for
individual transactions for any cardholder or departmental card. Cardholders within
a department may have various limits, determined by the department's needs.
Departments must also set a dollar limit per cycle (month)
for each cardholder or departmental card. It is recommended
that the lowest limits practical be set to minimize risk. Departments must set limits on each cardholder's or departmental card’s
number of transactions per day and number of transactions per cycle.
Should a cardholder or department wish to increase or decrease
any of these limits after they have been set, they should confer with their supervisor
and the Department Purchasing Card Liaison. The Liaison will send a
Change Form to the Program Coordinator to make approved
changes.
Limit changes may be made at any time and as often as required. |
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Step 7
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After the cards are ready, the PCard Program Coordinator will contact the Liaison
to set up software training for Reconcilers and Approvers and training for cardholders.
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Card Management
Purchasing Cardholder Application
and Management
The cardholder must complete and sign the
Individual Purchasing Card Application including the
Purchasing Cardholder Agreement. This application establishes the default
FRS account for each cardholder, the cardholder's purchase limit and identifies
the Reconciler and Approver for each cardholder. By signing the Purchasing Cardholder
Agreement, the cardholder agrees to comply with the following terms and conditions:
- Guidelines in the University of Arizona's Procurement
Policies and Procedures Manual
- Notify the proper authorities if the card is lost or
stolen
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Delegation or Assignment
Individual Purchasing Cards MAY NOT be delegated
or assigned to others. Departmental Purchasing Cards MAY be delegated or assigned
to others. A responsible cardholder of department cards must authorize use
of the card for each transaction. Responsibility for the card should be transferred
or the card temporarily suspended during the absence of a responsible cardholder
(i.e. Sabbatical leave, vacation, extended illness, etc.)
All Purchasing Cards are the property of The University
of Arizona and JP Morgan Chase.
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Assignment of FRS Account Numbers
During the Purchasing Card application process, each Purchasing Card is assigned
a default FRS account number. Transactions that are not reconciled and approved
by the department within ten business days after they appear in the PCard software
will automatically be charged to the default FRS account numbers. If reconciled
before the end of the tenth working day, the FRS account may be changed to
any account within the department. Object codes may also be changed.
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Spending Limits
The University of Arizona and the department determine
the Purchasing Card spending limits.
The department sets a per transaction limit of $5,000 or
less for each card. They also set monthly dollar limit, a daily transaction limit
and a monthly transaction limit (the University of Arizona's cycle ends on the sixth
of each month). It is recommended that the lowest
limit practical be set to minimize risk. Should a
cardholder wish to increase or decrease any of these limits after they have been
set, they should confer with their supervisor and the Department Purchasing Card
Liaison. The Liaison will send a Change form to the Program Administrator to effect
approved changes. Transactions greater than $5,000
are blocked on the PCard and will be denied at the point of sale.
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Purchasing Card Security
Cards must be diligently safeguarded. Each cardholder
must know where his/her card is at all times.
In case of loss or theft of the card or misappropriation
of the card account number, fraudulent charges are forgiven by the bank ONLY if
they are notified by the end of the month following the month in which the fraudulent
charges occur (this is called the notification period). The cardholder must call
1-800-270-7760.
1-800-270-7760, is available 24 hours a day every day
EVERY CARDHOLDER MUST KEEP THIS PHONE NUMBER
SOMEWHERE SEPARATE FROM THE CARD,
FOR EASY ACCESS IN CASE OF LOSS OR THEFT.
If the bank is not contacted within the notification period,
fraudulent charges could become the liability of the cardholder's department, or
if denied by the department, the liability of the cardholder.
Through prompt reconciliation, reconcilers may be the first to become aware of fraudulent
charges, and should notify the cardholder and see that the bank is notified immediately.
Cardholders: "SAFEGUARD YOUR PURCHASING CARD!!!!!!!"
It is strongly suggested that, if a cardholder finds card use to be extremely infrequent,
they turn in their card for cancellation or storage in some secure central location
within the department, in order to prevent loss of the card.
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Activating The Card
The cardholder should call the 1-800 number on the
sticker of the Purchasing Card to activate the card.
This automated line will prompt the cardholder for the credit card number (on the
face of the card), social security number (use an Employee Identification Number
or EID number, not a social security number) and mother’s maiden name
(if mother’s maiden name was not used, enter chosen password).
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Card Renewal
The PCard is valid until the last day of the month in which it expires. The
Purchasing card will automatically be renewed before the expiration date.
JPMorgan Chase Bank will mail the replacement PCard directly to the cardholder.
The cardholder should call the 1-800 number on the sticker of the Purchasing Card
to activate the card. This automated line will prompt the cardholder for the
credit card number (on the face of the card), social security number (use an Employee
Identification Number or EID number, not a social security number) and
mother’s maiden name (if mother’s maiden name was not used, enter chosen
password).
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Canceling A Card
Upon termination of employment or transfer to another
department, the cardholder must return his or her Purchasing Card to the Department
Liaison. The Liaison must then prepare a card cancellation by completing a
Delete Form.
The completed form should be mailed to the
Purchasing Card Coordinator. The Liaison should cut up the card and carefully
dispose of the pieces.
Placing an Order
Transaction Flow
- Cardholder makes a credit card purchase
- Cardholder gives itemized receipt to Reconciler
- Reconciler scrutinizes itemized receipt and reconciles charge. (The Reconciler/Approver
have 10 business days to both reconcile and approve)
- Approver scrutinizes itemized receipt, reviews reconciliation and approves charge
(The Reconciler/Approver have 10 business days to both reconcile and approve)
- PCard Office conducts weekly transaction reviews for compliance
- Approver reviews monthly statement and forwards documentation to FSO
- FSO Compliance performs post transaction reviews for compliance with PCard and University
Policy
- PCard transaction documentation is retained by FSO for 8 years
Placing Phone Orders
The Purchasing Card may be used to place orders over the phone. Cardholders
must provide the vendors with the following information: the Purchasing Card number
and expiration date, quantity and description of goods to be ordered and detailed
instructions on delivery. In addition, the cardholder must request that an itemized
invoice complete with sales tax information be sent with the shipment.
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Sales Tax Information And
Itemized Invoices
The cardholder is responsible for requesting from the vendor an itemized receipt,
invoice, bill or other related document that includes itemized tax. All documentation
including but not limited to receipts, packing slips, invoices must be submitted
immediately to the department Reconciler. With the documentation for each purchase,
the cardholder must include information about the FRS account(s) to be charged.
Please refer to Purchasing Card polices and procedures from your own department
for specific instructions.
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