CITIBANK PROCUREMENT CARDS 2010-2011 FISCAL YEAR Procurement Card Training.

CITIBANK PROCUREMENT CARDS2010-2011 FISCAL YEAR

Procurement Card Training

Welcome

Procedure ManualCardholder Allocation GuideLevel Manager Guide

•Overview of Program•General Information

•User Procedures

Procurement Card Procedure Manual

Procurement Card Overview

Provides University employees with a more efficient way to purchase day-to-day supplies

The use of the procurement card is not intended to bypass appropriate purchasing procedures set forth by the State of Texas

The program is administered through the Purchasing department

Program Contacts

Mickie ScantlingProcurement Card Auditor

[email protected]

Bryan GlennDirector of Purchasing

[email protected]

Important Points

The procurement card is only issued to the cardholder. No one else is allowed to use the card.

The cardholder is responsible for all transactions made with his or her procurement card.

Cardholders are responsible for allocating charges on a monthly basis and submitting supporting documentation to the Purchasing office by the fourth working business day of each month.

Cardholder Responsibilities

Attending TrainingCard SecurityMaking Appropriate PurchasesSubmitting LogsCorrections

Department Head Responsibilities

Approving TransactionsCorrections

Purchasing Department Responsibilities

Provide TrainingAudit LogsAssist CardholdersBilling Transactions

Allowable Purchases

Office, lab, or classroom supplies

BooksFlowers*Janitorial SuppliesMeals/Food for

business-related meetings*

Medical SuppliesPostage & ShippingPromotional ItemsRegistration Fees SubscriptionsTools/HardwareVideosCopier Rental

*Only on local accounts

Unallowable Purchases

MembershipsCash RefundsCash AdvancesAlcoholic BeveragesComputer hardware

or softwareGasolineInsurance

ServicesPersonal PurchasesCapitalized or

controlled equipment (televisions, computers, etc.)

Employee travel expenses

Gift cards for University employees

Sales Taxes

All purchases made with the procurement card are exempt from sales tax

Cardholders will be held responsible for refunding or reimbursing any sales taxes paid on the procurement card

The only exception to this rule is for business meals

A business meal is defined as: “a meal consisting of both University and

non-University employees with a specific University business function”

Split Purchases

An instance where a cardholder makes a purchase larger than the delegated limit, and the vendor runs the credit card multiple times in order to bypass the cardholder’s single purchase limit.

This is a violation of the state’s purchasing guidelines and should not be practiced.

Account Selection

The cardholder will use Citibank’s website on a monthly basis to allocate each transaction to an account within their department

Accounts are sorted by Division and Department

There are restrictions on what items may be paid using a state-funded account (begins with 10, 15, 18)

Items such as food, decorations, gifts, and flowers may not be purchased using state funds

Account Structure

XX-XXXXXXX-XX-XXXX

Funding Source

Department

Object

Object Code

Funding Sources

• 10 – State Appropriations• 11 – Designated Funds• 12 – Auxiliary Funds• 15 – M&O Accounts• 18 – ARRA Accounts• 19 – Restricted Funds (Grants)• 40 – Renewals & Replacements• 50 /51 – Foundation• 52 - Alumni

Department & Object

Department Unique 7-digit number for the department

Object Will either be 62 or 92 62 – Budgeted funds for fiscal year 92 – Term of grant or until money is expended

Object Codes

Four digit codeAn object code is a basic description of the

purchase that was madeThe cardholder will select an object code that

is an appropriate description of the item(s) purchased

Any purchases made with state funding cannot have an object code in the 6000 level, such as 6012 or 6280

Receipt of Goods & Services

When allocating, the cardholder must indicate if the goods and services purchased have been received

There is a drop-down menu beside each transaction for the cardholder to verify if the goods were or were not received

If the goods were not received, the cardholder should select “no” and complete an exception form as backup documentation

The cardholder must also notify Purchasing once the goods have been received

Supporting Documentation

Detailed expense descriptionInclude a receipt or missing receipt formMeal purchases must include a list of who ate

the meal/food purchased, as well as the business purpose of the meal

Gift card purchases must include a gift card purchase form

Receipts should be taped down neatly to computer paper.

Please do not tape over the totals on the receipts because the tape causes the numbers to fade.

Audit Process

Envelope is filled out completelyReporting period is correctAll backup documentation is includedTransactions were appropriate for University

businessThe vendor was appropriateCardholder used account numbers from

his/her departmentObject codes were suitable for purchaseNo split purchases were madeNo sales taxes charged

Corrections

The auditor will contact the cardholder via email with any corrections that need to be made

The cardholder will have one week to make necessary corrections

If issues have not been corrected after a week, the auditor will contact the cardholder and department head with instructions to make corrections

Suspensions

The Purchasing Office reserves the right to suspend credit card privileges to cardholders due to non-compliance with the procurement card procedures and guidelines

To reinstate privileges, cardholders will be required to write a memo to Purchasing stating they will operate within proper guidelines and procedures in the future

The employee will also be required to attend procurement card training before privileges are restored

Purchasing Website

Training Materials, Forms, and Allocation due dates are located on the purchasing website:

http://www.wtamu.edu/administration/purchasing-and-inventories-procurement-card.aspx

You can also access the link to Citibank’s website from the procurement card webpage.