PURCHASING CARD

User Manual

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Table of Contents
Sections Introduction Cardholder Responsibilities Department Administrator Responsibilities Unauthorized Purchases How To Make A Purchase Sales Receipt Requirements Bank Statement Reconciliation Billing Cycle Fiscal Year Cutoff Key Contacts Frequently Asked Questions	Attachments Cardholder Participation Agreement Missing Receipt Form Reconciliation Form Disputed Purchases Form Transaction Log Form

A. Dear Cardholder:

Welcome to the Pacific University Purchasing Card program. The card is a new method to acquire goods. The Purchasing card has been implemented to provide departments with a more efficient system for purchasing single items under $1,000 each by placing the card in the hands of those individuals directly responsible for making purchases. The purchasing card is a VISA product administered by US Bank. In order to receive a card an employee must attend a training session to discuss the purchasing card policies and procedure and complete the Purchasing Card Cardholder Participation Agreement form.

The primary benefits of the purchasing card are:

• acceptance by any supplier who accepts VISA
• place orders conveniently
• more timely purchase and receipt of goods
• improve accuracy of orders
• eliminate reliance on others to place orders
• a reduction of paperwork
• monitor spending
• possible price discounts
• set individual spending limits and receive monthly statements from VISA for each card

We hope you will enjoy the benefits of using your Purchasing Card. If you need any assistance please contact Business Services at x2265.

B. Cardholder Responsibilities (return to top)

Issuance of a Purchasing Card is a relationship of trust between cardholders, departments and the University. Business Services’ responsibility is to provide quality service and information to cardholders and departments. Cardholders’ responsibilities are outlined below.

Before using the Purchasing Card, determine if it is the appropriate purchasing method. Generally, the Purchasing Card can be used for most purchases of individual items costing less than $1,000 per item. Any purchase of a single item costing $1,000 or more must be processed via a purchase requisition per current University Policy.

• The Purchasing Card must be used strictly for University business. No personal use of the card is allowed.
• The approved cardholder is personally responsible for the Purchasing Card.
• Cardholders will not use the card to purchase restricted items (see list of unauthorized items on page 3.
• Cardholders should not receive cash back for any refunds or exchanges. Refunds or exchanges must be credited to the Purchase Card account.
• The Purchasing Card may be used in person or via mail, telephone, or fax. It may also be used over a secure Internet link.
• Cardholders must retain all sales slips and register receipts.
• Cardholders will reconcile receipts against monthly statements received from VISA, approve the statement, and forward it with receipts to the department administrator.
• Cardholders agree to follow the policies and procedures established by the University for the use of the Purchasing Card. Failure to do so may result in revocation of the card use privileges and/or disciplinary actions, including termination of employment.
• Cardholders must return the card to their Department Administrator upon leaving Pacific University or changing departments.
• Cardholders should report lost or stolen cards immediately to US Bank at (800) 344-5696, their Department Administrator, and Business Services at x2265 during normal business hours. On weekend and evenings, cardholders should immediately report a loss or theft to US Bank; Department Administrators and Business Services should be notified the next business day.
• Cardholders should keep the Purchasing Card in a secure location and guard the Purchasing Card account number from unauthorized use.

 C. Department Administrator Responsibilities (return to top)

• The Administrator (Budget Officer, Department Chair, or designee) will establish an internal tracking method for card purchases so that there is an awareness of the outstanding charges on the card.
• The Administrator will make sure that the monthly bank statement is reconciled with the receipts and forwarded to Business Services by the first working day of each month.
• The Administrator will be responsible for faxing the Cardholder Dispute form to the bank and attaching a copy of the form with the reconciliation form.
• The Administrator will secure the card when the cardholder leaves the department, or is no longer authorized to use the card, and will report the same to Business Services.

D. Unauthorized Purchases (return to top)

The Purchasing Card cannot be used for the following types of transactions:

• Air conditioners/heaters (unless approved by Facilities)
• Audio/visual equipment (unless approved by University Information Services (UIS))
• Cash advances
• Computer hardware (unless approved by UIS)
• Computer software (unless approved by UIS)
• Computer peripheral equipment (unless approved by UIS)
• Contracts for:
  • individuals (e.g. consultants)
  • maintenance
  • public works or trades (including carpet installation, building alteration or renovation)
  • real property purchases, leases, or long term rentals
  • firearms or weapons
• Furniture ( unless approved by Business Services)
• Insurance
• Items for personal use
• Items that will attach to University buildings (e.g. window treatments, signs, bulletin boards)
• Illegal drugs, narcotics, or controlled substances
• Services of any type (e.g. transcription, equipment repairs)
• Temporary employment agencies
• Items $1,000.00 or greater

E. How to Make a Purchase (return to top)

The Purchasing Card may be used in person, via mail, telephone, or fax. The Purchasing Card may also be used over a secure Internet link. Follow these procedures when using the Purchasing Card:

1. Call or visit the vendor and identify yourself as a Pacific employee.
2. Ask if the vendor accepts VISA.
3. If the vendor requests a billing address, provide your campus address. Do not give the address of Business Services.
4. Order the desired goods or services and confirm the total cost including shipping and handling.
5. Give the vendor the Purchasing Card number and expiration date.
6. Specify delivery instructions, including the information that must appear on the shipping label. (see example below) Tell the vendor that the Purchasing Card number should not be displayed anywhere on the outside of the package.

   Pacific University ATTN: (fill in cardholder’s name & department) 2043 College Way Forest Grove, OR 97116

    

F. Sales Receipt Requirements (return to top)

Regardless of the method used for obtaining goods, the cardholder, must obtain an itemized* receipt for the goods. If the order is phoned, faxed, mailed or sent over the Internet, the cardholder must advise the merchant verbally, or on the written transmittal, that an itemized receipt must be provided with the shipment or faxed to the cardholder.

Should the receipt be lost, the cardholder must attempt to obtain a duplicate copy from the vendor. If the cardholder is unsuccessful in securing a duplicate copy, he/she must complete a "Purchasing Card Missing Receipt" form.

Receipts are to be attached to the "Purchasing Card Reconciliation" form (see attachment) and stapled to the back of the approved bank statement. The card statement along with the receipts must be forwarded to Business Services by the appropriate date each month.

If there are excessive instances of lost or missing sales receipts, Purchasing Card privileges may be revoked.

*"Itemized" means including the date, a description of the goods secured, the quantity, the amount, tax and shipping charges (if applicable), and the total. If the merchant’s receipt is not itemized (i.e. merely states "miscellaneous supplies"), the cardholder must write in the required information.

G. Bank Statement Reconciliations (return to top)

1. Reconciliation by the Cardholder
   • Each month the cardholder will receive a bank statement. The bank statement should be received around the 23^rd of each month. The cardholder statement will include all individual charges and credits for the billing period. When the bank statement is received, the cardholder must:
   • Review the statement for accuracy and verify each line with the merchant receipts/invoices.
   • If an item is billed incorrectly or a questionable item (e.g. purchases which the cardholder does not believe he/she made), the cardholder or department administrator must contact the bank prior to submitting the statement to Business Services and:
     • complete the Dispute Form; mail or fax the original to the bank and attach a copy of the form to the bank statement prior to submitting the statement to Business Services
     • circle the dollar amount of any items that are questionable, defective, or billed incorrectly and note "in dispute"
   • If an item purchased is defective, return the item to the merchant for replacement or credit. If the merchant refuses to replace the defective item or fails to issue a credit, the purchase will be considered in dispute and the same procedure for questionable items described above are to be followed.
   • Once each line item has been verified or disputed, the cardholder is to sign the statement next to the total dollar amount paid. Forward the statement to the Department Administrator with the receipts attached. Receipts smaller than a half sheet of paper must be taped to a full sheet of paper to make sure they are not lost in transit.
   • Important: Late submission of reconciled card statements will result in card purchases being charged to a department default account. The cardholder will be required to submit the reconciled statement with the appropriate account numbers as soon as possible. Repeated late submissions of reconciled card statements will result in the cancellation of card privileges.
     
     
2. Reconciliation by the Department Administrator
   • Establish a date by which all cardholders under his/her authority must submit their statements and receipts to the administrator.
   • Review monthly charges made by the cardholder(s) to make sure they are appropriate and that prohibited items were not purchased.
   • Apply the appropriate account number(s) on the Purchase Card Reconciliation form against which payment will be made. If the entire statement is to be charged to a single account number, then indicate this on the "Account Number" line of the Purchase Card Reconciliation form. If multiple account numbers are to be used on a statement, then write each desired account number next to the appropriate dollar amount.
   • Sign the Purchase Card Reconciliation form when reconciled with the cardholder’s monthly bank statement.
   • Forward the signed Receipt of Goods form, the signed Cardholders’ bank statements along with receipts and "Dispute Form" (if applicable) to Business Services no later than the first working day of each month.
     
      

H. Billing Cycle (return to top)

The billing cycle for the Purchasing Card is from 19^th to the 18^th of each month. Charges and credits made during this period should appear on the bank statement, which is generally received by the 23^rd of each month. A bank statement will be mailed directly to the Cardholder and the Department Administrator by the bank. Reconciled bank credit card statements are to be submitted to Business Services no later than the 1st working day of each month for timely payment to meet the credit card requirements.

Billing Cycle	19th to 18th of each month
Approximate date statements will be received	23rd of each month
Deadline for Cardholders to submit reconciled statement and receipts to Dept. Admin.	Each department to establish this date
Deadline for Dept. Administrator to submit reconciled statement with accompanying receipts to Business Services	1st of each month

I. Fiscal Year Cutoff (return to top)

All charges through the June 18^th billing period of each year will be paid from the current fiscal year. All charges and credits made after June 18^th (charges that appear on statements that arrive in June and thereafter) will be paid from new fiscal year funds.

J. Key Contacts (return to top)

US Bank Corporate Card c/o US Bankcorp Service Center Inc. PO Box 6344 statement Fargo, ND 58125-6344	Statements: Report lost or stolen cards; request card
Customer Services (US Bank) (800) 344-5696 Dispute Department fax (701) 461-3463 on statement	Report disputed or questioned items/charges
Business Services Patsy Charlesworth x2265	Contact for questions regarding Purchasing Card policies and procedures

K. Frequently Asked Questions (return to top)

•  WHAT IF A CARDHOLDER LEAVES PACIFIC?

  The Department Administrator must retrieve the card from employees who leave Pacific, change departments, or move to a job in which they no longer require a Purchasing Card. They should e-mail Business Services at the following address: charlesp@pacificu.edu immediately upon the status change so that a new Purchasing Card Cardholder Agreement can be arranged. 

• UNDER WHAT CIRCUMSTANCES MIGHT A PURCHASE USING THE CARD BE DECLINED?

  The purchase will be declined if: the cardholder has exceeded the designated transaction limit or monthly credit limit; or the cardholder attempts to use the card for an unauthorized purchase category. 

• WHO DO I CALL IF MY PURCHASING CARD IS LOST OR STOLEN?

  Report lost or stolen cards immediately to US Bank Corporate Card Services at (800) 344-5696 and call Business Services at x2265. Also notify your Department Administrator. 

• I WOULD LIKE TO PURCHASE AN ITEM THAT COSTS $1,500. IS IT ACCEPTABLE TO SPLIT THE CHARGES TO STAY WITHIN THE $1,000.00 PER PURCHASE POLICY?

  A cardholder should never split charges in order to avoid exceeding the transaction limits because of the capitalization policy adopted by the university. Disregard of this policy will result in the loss of using the Purchasing Card.

• IF I HAVE A QUESTION ABOUT WHICH OBJECT CODE TO USE FOR A PURCHASE, WHOM DO I CALL?

  Contact Business Services at x2265 about this or other questions regarding the use of the card. 

• WHAT SHOULD I DO IF I LOSE A RECEIPT?

  You must attempt to obtain a receipt from the vendor. If unable to do so you must complete the Purchasing Card Missing Receipts form and forward it to your Department Administrator.

•  HOW IS PROGRAM COMPLIANCE VERIFIED?

  Business Services will conduct a monthly post-transaction audit review. Additionally, departments should have their own procedures to monitor compliance. Misuse or abuse of the Purchasing Card procedures will result in the loss of the Card privileges. 

• WHAT HAPPENS IF I DON’T FOLLOW THE TIME LINES FOR CARD PAYMENT?

  If your reconciled card statement is not returned by the date required, the card charges will be charged to a department default account. Repeated late reconciled statement submissions will result in the cancellation of card privileges.

• WHAT IF I DON’T RECEIVE MY CARD STATEMENT?

  If you don’t receive your card statement at the regularly scheduled date, call US Bank Customer Service and request a statement be sent to you.