PURCHASING CARD

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PURCHASING CARD
Training
September 30, 2008 P-Card Training
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Atlanta Journal-Constitution
Because of the abuse of the p-card and AJC
headlines back in December 2007 and ongoing
scrutiny concerning the p-card, state policy is
now closely monitored.
The state has revised its guidelines and we now
have in place not only policy but a State P-Card
Manager to guide all agencies to assure
compliance.
This has created stricter policy and procedures
by Clayton State and the Board of Regents to
assure compliance to state guidelines
September 30, 2008 P-Card
Training
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Atlanta Journal Constitution

Handled right, a handy perk! Effective tool
P-cards are useful, cost-efficient, but
oversight and training in their use are
essential. AJC February 28, 2008
P- Card Training is why we
are here today!
September 30, 2008 P-Card
Training
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Agenda

• General Overview
• Spend Limits
• Usage of the P-Card
• Returns and Disputes
• Reconciliation Process
• Summary

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Training
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What is a P-Card?
Overview

• A Visa card issued by Bank of America
• Accepted in person, by phone, fax and on the
  internet
  
• Must be a State employee
• Authorization required

September 30, 2008 P-Card Tra
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P-Card Issuance Requirements
Overview

• Cards are not issued to part time or temp
  employees.
  
• Cards are not issued in a department name to be
  shared by other employees.
  
• Cards are not issued to employees of foundations
  associated with Clayton State University.

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Overview

• P-cards are limited to one per cardholder
• Complete a Purchasing Card Request form found on
  website.
  
• Approved by Head of Department etc.
• Submit form to us.
• Signed employee agreement.
• Mandatory user training.
• http//adminservices.clayton.edu/procurement

September 30, 2008 P-Card
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P-Card Security
Overview

• Responsibility for P-card rests with the
  cardholder
  
• Cardholders are accountable for all transactions
  on their card
  
• Protect your p-card number as your own personal
  credit card
  
• Card sharing is prohibited do not lend your
• card to anyone.
• Familiarize yourself with Clayton State/State
  policy and procedures located on website
  
• http//adminservices.clayton.edu/procurement

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Training
Overview

• All cardholders and Approvers must
• Read and understand the policies and procedures
  of Clayton State and State of Georgia.
  
• Complete periodic mandatory refresher training
  once a year.

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Definitions
Overview

• Inventoried Items
• Any item that is a non consumable and
  non-expendable in nature, such as motor vehicles,
  servers, high end office equipment and furniture.
  
• Any item with a life expectancy of three or more
  years.
  
• Single item cost over 3000 is an asset.

September 30, 2008 P-Card
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Spend Limits
September 30, 2008 P-Card
Training
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Spending Limits
Spend Limit

• Each cardholder has a 5000 single transaction
  limit
  
• Each cardholder has a 10,000 cycle limit
• Cycle Limits may be increased with a special
  approval of the State of Georgia.
  

September 30, 2008 P-Card
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CSU Spend Policy

• Due to mandated budget cuts, CSU must currently
  be very restrictive on p-card spend.
  
• All purchases over 500 must be approved by the
  Head of Department, Dean and Vice President of
  that Division.
  
• This is an internal process within the
  departments and must be adhered until further
  notice.
  

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Sales Tax
Spend Limit

• All University purchases are exempt from sales
  tax
  
• Make vendors aware of tax exemption prior to
  purchase
  
• Sales tax exemption form on website
• Exception Agency accounts are subject to all
  applicable sales taxes.
  
• Out of state purchases may require sales tax

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Training
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Usage of the P-card
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P-Card May be Used for
Usage

• Subscriptions
• Registrations
• Lab/Research Sup
• Nursing/Dental Sup
• Printing
• Office Supplies
• Office Furniture
• FedEx Charges

• Non Inventory Equipment
• (Items under 3,000)
• Services
• Items on State Contract
• Membership Dues (Institutional)
• Software (MSD/UGA)
• Airline travel/Rental Cars

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Training
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Services to Include
Usage

• Maintenance and repair
• Car Detailers (State/Public Safety Vehicles)
• Payment of cell phone/pager service (Must submit
  itemized bill-complete billing)
  
• Rentals such as vehicles, small item rentals

September 30, 2008 P-Card
Training
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Blackberry/Cell Phones
Usage

• Statewide Contract for Blackberry/Cell
  phones-ATT, Verizon, Intel, Sprint.
  
• Written approval for Blackberry/Cell phones and
  pager purchase from the Vice-President of each
  division.
  
• Must be purchased through Procurement Services.

September 30, 2008 P-Card
Training
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Advanced Airline Travel
Usage

• Air travel for Clayton State employee only
• No statewide contract for airlines
• Assure best value for airline travel
• Can use Travelocity, Orbitz, Cheap Tickets,
  Expedia for flight reservation.
  
• Travel must take place in same fiscal year
• Must submit through PS Travel Expense module
• Request to Travel must be submitted manually.

September 30, 2008 P-Card
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Automobile Rental
Usage

• Must use Enterprise or National Car Rentals
  (Statewide Contract)
  
• Used for official Clayton State business
• Gas cannot be purchased for rental car this is a
  reimbursable expense.
  
• Must be coded correctly as employee travel 640100

September 30, 2008 P-Card
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P-Card May Not Be Used for
Usage

• Automotive Fuel
• Cash Advances
• Motor Vehicle Repairs and Maintenance
• Professional Services
• Personal Services
• Lodging, personal vehicles and meals

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P-Card May Not Be Used for
Usage

• Alcohol
• Tobacco Products
• Gift Cards
• Food
• Equipment (single item over 3000)
• Promotional items (using appropriated funds)
• Personal items
• Purchases for resale

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Training
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P-Card May Not Be Used for
Usage

• Firearms/explosives
• Computers
• All computers must be approved by OITS and
  ordered through Procurement Services
  

September 30, 2008 P-Card
Training
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Purchases Not Allowed
Usage

• SPLITTING an order to remain within the spending
  limits 4,999.99.
  
• Purchases over 5,000 must go through the bid
  process. This is mandated by the State of
  Georgia.
  

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Compliance
Usage

• Official Code of Georgia Annotated (O.C.G.A.)
• Applicable requirement of GPM
• State Purchasing Card Policy
• Internal policies procedures governing
  procurement p-card program
  
• http//statepurchasing.doas.ga.gov/vgn/images/port
  al/cit_1210/21/9/102587319PCard_Policy.pdf
  

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Cardholder Background Checks
Usage

• Criminal background checks for existing and new
  purchasing card holders
  
• Policy as of July 1, 2008
• Background check reveals misdemeanors or felonies
  related to financial wrongdoing, theft or other
  act of dishonesty, the cardholders privileges
  are terminated.

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Limitations?
Usage

• A cardholders Department VP, AVP, Dean, Director
  or head may identify additional limits. (ex)
  
• Cycle limit has been reached (10,000)
• P-card will be denied
• Purchase exceeds transaction limit (5,000)

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Athletic Team/Student Club Event
Usage

• Must have special approval from State Department
  of Administrative Services (DOAS)
  
• May purchase food for campus sponsored events
• Exempt form from BOR for food purchases for
  approved campus events
  
• Some departments may keep a sign-in log
• Must attach a flyer or e-mail of event to the
  Visa Packet
  

September 30, 2008 P-Card
Training
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Team/Club Travel
Usage

• Special approval from DOAS
• May use the card for airline lodging and rental
  car, van, etc. for students/team on University
  sponsored trips
  
• Sponsors who are employees must submit via online
  PS travel expense form.
  

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RETURNS AND DISPUTES
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Returning Purchases
Returns

• Request a return address from vendor
• Obtain return authorization number
• P-card credit to be issued by vendor
• Request a fax or e-mail confirmation of the
  credit for reconciling your records
  
• Must have company name, credit amount and
  identify item credited
  

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Resolving Disputes
Disputes

• If you cannot settle with the supplier/vendor
• Notify P-card coordinator
• Complete a P-card dispute form
• Investigation of dispute is lengthy-attach a copy
  of dispute form to monthly statement.
  
• Check each statement to assure credit has been
  issued
  

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RECONCILING P-CARD

• Record Keeping
• WORKS Payment Manager
• Monthly Statements
• Approver Responsibilities

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WORKS
Reconciliation

• On-line P-card transactions are available through
  WORKS. The bank posts transactions daily. (In
  real time)
  
• Each transaction must be reconciled
• Under general tab identify the purchase
• All WORKS reconciling must be completed by last
  day of each month. (ex)
  
• Downloaded into PeopleSoft Financials

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Records
Reconciliation

• Create file to keep documentation
  (invoices/receipts) and monthly bank statements
  easily accessible
  
• State and BOR auditors may request this
• file for compliance
• Bank statements sent to cardholder come via USPS
  directly to cardholder around 19-22th of each
  month
  

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Activity
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Monthly Statements
Reconciliation

• Check paper statements for
• Are charges accurate?
• Ensure that all receipts match charges
• Itemized list of purchase
• State business purpose on receipt
• Print report from WORKS

April 24, 2008 P-Card Training
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Monthly Statements
Reconciliation

• Check paper statements for
• Are charges accurate?
• Ensure that all receipts match charges
• Itemized list of purchase
• State business purpose on receipt
• Print report from WORKS

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Reconciliation
Monthly Statements

• Due by the 5th of each month (ex)
• Attach VISA approval form
• Signed by Cardholder
• Signed by Approver, VP, AVP, Dean, Director or
  Head of Department.
  
• May have more than one approver
• Compile VISA Packet

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Missing Receipt
Reconciliation

• Cannot obtain or locate receipt/invoice for
  verification to statement
  
• Must be less than 100
• Complete a Missing Receipt Report located on
  website
  
• Attach to VISA Packet as receipt.

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Approver Responsibilities
Reconciliation

• Assure that all transactions in WORKS are
  completed by the last day of each month
  
• Ensure that the reconciliation is completed by
  the 5th of each month
  
• Verify that all documentation is attached
• Verify that all purchases have been approved

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Approver Responsibilities
Reconciliation

• Signing the VISA approval form indicates
  acknowledgement of all purchases
  
• VP, Dean, Director, Department head or Supervisor
  with budget authority for the department is
  responsible for the action of the cardholder(s)
  

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Card is Lost/Stolen

• Immediately notify Bank of America at
• 1-888-449-2278
• Notify campus P-card coordinator

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Forms

• Missing Receipt Form
• Request for Purchasing card form
• Employee Agreement Form
• Visa Approval Form

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• If in doubt.
• ASK BEFORE
• YOU PURCHASE

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Misuse of the Card
Summary

• If cardholders
• Do not submit documentation on required dates
• Do not complete WORKS transactions following
  deadline
  
• Split purchases to avoid bid process
• Allow other employees to use your card
• Do not read or adhere to HB 1113.

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Misuse of the Card
Summary

• Use wrong card for personal purchases.
• Use card instead of purchase requisition
• Make unauthorized purchases
• Make personal purchases
• This misuse can result in disciplinary action or
  termination of
  
• employment by the Vice-President of Business
  Operations
  

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Policy Not Followed

• If P-card policy is not followed, the cardholder
  will be notified (e-mail or phone).
  
• The cardholder must respond to the notification
  and resolve the outstanding issue.
  
• If no response is received within 3 days, a
  second notification will be made.
  
• Failure to respond to second notification will
  result in suspension of P-card.

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Summary

• Responsibility of card
• Spending Limits
• Reconciliation process
• Authorization and approvals
• Document, Document, Document
• CSU Official business only

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Contact Information

• Procurement Services website
• http//adminservices.clayton.edu/procurement/
• Contact us via e-mail or phone

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• QUESTIONS?

Thank you!
September 30, 2008 P-Card
Training