Procurement Card (PCard) Cardholder and Coordinator ... Overview The PCard Program is subject to applicable state laws, rules, and regulations to include the guidelines issued by the

PCARD ADMINISTRATION [email protected]

Using the PCard at Georgia Tech

Procurement Card (PCard) Cardholder and Coordinator

Training & Certification

January 2014

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Please note: This version is for review purposes only. Training as a

new cardholder or annual re-certification must be completed via the OOD Trainsweb site at:

http://www.trainsweb.gatech.edu/?page=login so that a record of the training exists.

Agenda

Program Overview

Program Controls

Responsibilities

Purchases

Annual Certification

Program Key Points

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Goals

Provide employees with a basic understanding of how to obtain and use the PCard at Georgia Tech

Employees must know and comply with the provisions of the PCard Policies & Procedures Manual as set forth in the GT Business & Finance Manual section 5.2.1.8

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Program Overview

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Program Overview/ Non-Catalog Suppliers

PCard: tool for supply, material, and service purchases under $2,500; no catalog in BuzzMart

PCard: tool for single equipment purchases under $2,500 including freight (non-inventory); no catalog in BuzzMart

Use of the PCard for non-catalog suppliers:

Simplifies purchasing & payment process Expedites ordering & delivery of goods and services Provides significant cost savings Provides electronic control & accountability

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Program Overview/ Catalog Suppliers

BuzzMart – Georgia Tech eBusiness tool

“Procure to pay” tool

BuzzMart – primary tool for all purchases from catalog suppliers activated in BuzzMart emarketplace

Ex: Staples, VWR, Grainger… check BuzzMart for updated catalog vendors listed

All catalog suppliers in BuzzMart are contract vendors

PCard is appropriate tool for non-catalog suppliers

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Program Overview

FY2013 Volume = $41.0 million

FY2013 Transactions = 131,174

FY2013 Average Transaction Amount = $311

FY2013 Cardholders = 1,765

Departments = 130+

Coordinators = 160+

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Program Overview

The PCard Program is subject to applicable state laws, rules, and regulations to include the guidelines issued by the Georgia Department of Administrative Services (DOAS) found in the Georgia Procurement Manual and State Purchasing Card Policy. www.doas.ga.gov (click on Statewide Card Programs, then top left, click on Knowledge Management)

Employees assigned PCard responsibilities should familiarize themselves with the provisions of public law governing PCards to include Title 50, Chapter 5, Article 3 of the O.C.G.A. at

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http://www.lexis-nexis.com/hottopics/gacode/default.asp Enter 50-5-83 in the search box and click Search To view the text click on: § 50 - 5 - 83 . Definitions; requirements for state purchasing card program

Program Overview

State of Georgia Procurement Card Program

Bank of America VISA Card

Bank of America online tool called Works PCard Manager (don’t confuse with Techworks)

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Program Controls

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Managing the PCard Program

PCard Program Manager

Department PCard Coordinator

Cardholder Cardholder Cardholder Cards are issued to Georgia Tech in the individual’s name

Each department assigns a Department PCard Coordinator to manage the PCard program at the department level

PCard Program is administered by Business Services

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Program Controls

Maintain integrity of program

Program established with built-in oversight controls

Doctrine of cardholder accountability

No system is 100% risk free

Integrity of employees

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Card Eligibility/Issuance

Permanent, regular-status employees are card eligible No student employees or Tech Temps

Cardholders authorized by department Verify business need

PCard Request Form

New cardholders, including UPS and Fed Ex “Ghost” cardholders, must have criminal and consumer credit checks on file

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How Do I Get A PCard?

1st • Complete Cardholder Training & Certification tutorial • http://www.orgdev.gatech.edu/training/?page=mastcal

2nd

• Complete the PCard Request Form and the Employee Agreement Form for the PCard

• http://www.procurement.gatech.edu/pcard/training-forms#forms

3rd • Submit the forms to your Department PCard Coordinator for

approval

4th • Department PCard Coordinator will forward the forms to the

PCard Administrator

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Employee Agreement Form

Cardholders must sign an Employee Agreement Form prior to being issued a PCard acknowledging:

Receipt of training

Understanding and acceptance of the rules for the use and the protection of the PCard

Understanding and acceptance of responsibilities for the reconciliation process and for billing disputes

Understanding and acceptance of consequences

for PCard violations

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PCard Spending Limits

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Georgia Tech liable for all purchases with PCard

PCard issued in the name of the Cardholder

Additional controls placed on the card. The cardholder is limited by:

$ limit per transaction

$ limit per month

The Institute’s maximum limit on PCard purchases is $2,499.99 per transaction. The standard monthly dollar limit is $25,000.

PCard Spending Limits

Department Head or Department PCard Coordinator can request temporary exceptions by contacting [email protected]

Single transaction dollar limit

Monthly (per cycle) dollar limit

Note: Increased limit cards may not be used to circumvent State’s no-bid limit

PCard denied by vendor if

Purchase exceeds single transaction dollar limit

Purchase exceeds monthly (per cycle) dollar limit

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Vendor Restrictions

PCard declined at point of sale

Vendors restricted – identified by Merchant Category Code; examples include travel, entertainment

Cardholders

No purchases from a vendor with whom you have a financial interest

No acceptance of any gift or gratuity (when offered or appears to be offered) to influence purchase decision

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GT Policies

GT PCard Policy Manual

Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.policylibrary.gatech.edu/procurement-cards-pcard

Department internal procedures

Must be in accordance with GT Policy Can be more restrictive, but not less restrictive

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Compliance and Audit Reviews

PCard transactions reviewed electronically for compliance by:

Business Services

Department of Administrative Services

PCard transactions audited for policy violations, adequacy of accountable documentation, and reconciliation/review process by

Department of Internal Audit

State Department of Audits and Accounts

Policy violations are evaluated on an individual basis and appropriate action taken, which could include termination of employment and criminal prosecution.

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ETHICS HOTLINE

GT employees can confidentially & anonymously report suspected PCard misuse via a “Hotline”

1-866-294-5565 or

https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=7508 or

www.ethicspoint.com, click “File Report”

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Issuing the PCard

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Issuing the PCard

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PCard Administration in Business Services will notify you by e-mail when your PCard has been

Approved/issued

Ready for pick up

Your Department PCard Coordinator establishes your

Default Project ID

Default Expense Account

Single Transaction Limit

Monthly Purchase Limit

State of Georgia TAX EXEMPT FOR OFFICIAL USE ONLY

Purchasing Card

1234 5678 2345 6789 09/09 09/14

GEORGE P. BURDELL

GEORGIA TECH

Works

Welcome email from “Works” with login instructions when issued a PCard

Bank posts transactions daily to Works/email notifications of activity sent to you daily

Online access to PCard transactions available via Works PCard Manager

Department PCard Coordinator will provide instructions on using the system

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Cost Allocation Defaults

Each card assigned project & account (no “generic” PCard general ledger expense account can be used)

Reallocation

Online via Works – 7 calendar days Campus PCard Redistribution – 90 days after posting to GL Paper Journal Entry after 90 days to Accounting Services or

Grants & Contracts

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Transaction Posted

Cost Allocation

PCard default account: Account typically associated with charges on the PCard

Ex: Default account used 714100 – Supplies & Materials

Redistribute charges to appropriate expense account

Ex: Registration Fees to 727100 or Special Group Meals to 727700

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Review Question 1

This is a Program Control:

A. GT PCards are only issued to permanent, regular-status employees.

B. New PCardholders are required to have criminal and consumer credit checks before issued a PCard.

C. A signed Employee Agreement Form is required before the PCard can be issued.

D. All of the Above

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Review Question 2

Georgia Tech is not liable for all purchases made on the PCard.

A. True B. False

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Review Question 3

The Department PCard Coordinator establishes: A. Your default project ID

B. Your single transaction limit

C. Your monthly purchase limit

D. All of the Above

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CARDHOLDER RESPONSIBILITY

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You Are Responsible

GT PCard Policy Manual

Business & Finance Manual (BFM) Chapter 5 Topic 5.2.1.8 http://www.admin-fin.gatech.edu/?page=business

Misuse of the PCard will result in having your PCard privileges revoked, and

could result in termination of employment and criminal penalties.

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PCard Security

Cardholder – Accountable for transactions

Protect PCard and PCard Number

No card sharing - cardholders may not “lend” their card or card number to anyone

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Lost or Stolen Cards

Cardholder immediately report lost, stolen, or fraudulently used PCards to:

Bank of America at 1-888-449-2273

Cardholder - Notify Approver and Department PCard Coordinator

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Returning PCards

If the cardholder is

Transferring to another Department; or

Leaving Georgia Tech

EMPLOYEE MUST

Return PCard to the Department PCard Coordinator

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Documentation Requirements

Accountable document (invoice or receipt) is proof of

purchase for transaction

Document must contain “line item detail”

Line item description (include business purpose) Line item pricing

Used to reconcile monthly bank statement

Purchase must be permissible by funding source used

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Documentation Requirements

Lost or missing receipts:

Cardholder is responsible for obtaining duplicate from vendor

If duplicate cannot be obtained, cardholder must use PCard Receipt Replacement Form

Excessive use of the Receipt Replacement Form (more than 3 in a fiscal year) may result in suspension of card privileges

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Record Keeping Duties

PCard file with accountable documentation (invoices/receipts) and monthly bank statements easily accessible

Bank Statements sent monthly

Billing cycle ends on the 27th each month

Federal, State, and Internal Auditors may request this file for compliance audits at any time

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Reconcile Monthly Statements

Compare bank statements with receipts to verify your purchases

Are the charges accurate?

Have credits been issued/deducted?

Is there any unauthorized activity?

Note: VISA’s vendor contract requires billing upon shipping. If you have ordered but have not received the item, make sure it has actually been shipped. Otherwise the charge should be disputed.

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Reconcile Monthly Statements

Reconciled statements must be

Signed by the cardholder

Counter signed (verified) by the approving official (approver) designated by the Department Head

Cardholder and approver must not be the same person for signature purposes

Completed PCard monthly reconciliation packages consisting of the signed bank statements and accountable documentation (invoices/receipts) must be retained under the control of the department business office

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Department Responsibilities Designate program officials

Department PCard Coordinator

Department Approving Officials (Approvers)

Department PCard Cardholders

Ensure internal procedures are in accordance with Georgia Tech policy Compliance - identify & address policy violations Must maintain written list of approvers that identifies assigned

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Department Responsibilities Establish coordination procedures between cardholders,

approvers, and coordinators

Ensure timely reconciliation, approval, and compliance reporting of monthly PCard packages (bank statements & accountable documentation)

PCard Compliance dates are published on the website (www.procurement.gatech.edu), click on Purchasing>PCard

Develop procedures to ensure responsible budget holders verify charges to sponsored accounts

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Department Responsibilities

Establish redistribution procedures Bank of America Works Journal Entry

Proxy Reconciler can be assigned in Works to redistribute charges

Annually review the ongoing business need for active cards and re-evaluate card limits periodically

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Department Responsibilities Establish procedures for document retention

Minimum of 7 years – depending on fund requirements (sponsored awards – 3 yrs from date of final expenditure report submission)

Must be retained under control of the department business office – not the cardholder

Readily available for review/audit if requested

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Coordinators Oversee department program

Primary link to GT PCard Program Administration

Communicate program information to appropriate personnel

Facilitate monthly online compliance report

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Approvers

Responsible for review and approval of cardholder’s PCard purchases

Ensure appropriateness of purchases to the best of their knowledge

Verify completeness of documentation Signed and reconciled bank statements

Detailed back up documentation (receipts)

Provide evidence of the review by signature on the bank statement

Report on monthly compliance to Department PCard Coordinator

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Monthly Compliance Report

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Online report tracks reconciliation and approval status Assists departments by listing

cardholders requiring review Assists departments with

compliance Assists in card suspension for non-

compliance

Monthly Compliance Report Department PCard Coordinators with a PCard may

not “self-certify”on the monthly compliance report

Department must designate another employee to perform the reporting duties for the Department PCard Coordinator’s card

Department must not allow a Department PCard Coordinator to approve or report on the compliance of their own card

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Review Question 4

Reconciled bank statements must be signed by the cardholder and the approving official as designated by the Department Head.

A. True B. False

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Review Question 5

If you are missing a receipt or can’t get a duplicate receipt from the vendor then you should

A. Make a receipt and insert in your reconciliation B. Circle on your bank statement and do nothing C. Complete the PCard Receipt Replacement Form and include in your reconciliation D. All of the Above

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Purchases

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Authorized Uses of PCards

Cardholders and approving officials are designated as Institute purchasing agents and are subject to the provisions of O.C.G.A. § 45-10-1 et.seq. (State Employee Code of Ethics, Conflicts of Interest, etc.).

PCard can be used to make purchases:

Over the Counter

By Mail

By Fax

By Telephone

By Internet

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Authorized Uses of PCard

Cardholders must follow State (DOAS), BOR, and GT purchasing policies and strive to obtain the maximum value for each dollar of expenditure

State (DOAS or Department of Administrative Services), www.doas.ga.gov

BOR (Board of Regents), www.usg.edu/business_procedures_manual

Georgia Tech purchasing policies,

www.procurement.gatech.edu/

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Order of Precedence

1st • State of Georgia-DOAS Mandatory Contracts • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp

2nd • Georgia Tech Agency Contracts • See Contract Section in BuzzMart

3rd • Georgia Correctional Industries or Georgia Enterprise • http://doas.ga.gov/statelocal/SPD/contracts/pages/home.aspx

4th • State of Georgia-DOAS ‘Convenience’ Contract • http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_list_alpha.jsp

5th • Open market

The order of precedence is followed as listed above. Exceptions are made for emergency purchases and sole source purchases.

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Order of Precedence

Georgia Tech requires competitive bidding for all open-market purchases anticipated to be $10,000 or more.

However, Georgia Tech sets the single transaction limit for a PCard transaction at $2499.99.

Use of the PCard program as a method of payment does not relieve the cardholder of these responsibilities.

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Purchasing Tips Goods should be shipped only to official Georgia Tech business addresses

No home deliveries are authorized

No supplier contract available

Vary the suppliers

Fair treatment to all suppliers

Obtain a reasonable price

Purchasing on behalf of government clients

Include supplier diversity

Small businesses

Disadvantaged businesses

Women-owned businesses

Obtain fair and reasonable prices

Adhere to strict ethical standards

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Review Question 6

The Order of Precedence rule for purchases using the PCard should be followed except in emergency purchases or sole source purchases.

A. True B. False

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Authorized Purchases on PCard

Books

Conference registration fees

Non-catalog contract items - Examples: temp agencies, cell phone service, copier maintenance (use BuzzMart if catalog is available)

Equipment rental (NO Vehicle Rentals except for student groups, which must be from a mandatory statewide contract unless approved through the waiver from the statewide contract process)

Food/catering compliant with BFM 5.2.1.9 Food/Group Meals Policy (Food/Group Meal Grid www.procurement.gatech.edu >Purchasing>PCard, then related links on right side)

Freight/shipping charges

Non-inventoried equipment: single units under $2,500 including freight

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Authorized Purchases on PCard Office furniture/files

Office supplies: For statewide contract (use catalog in BuzzMart)

Printing

Professional memberships Software – data plans, software, or apps for state issued devices such

as smart phones, tablets, or laptop computers

Study Abroad Program Expenses (BOR BPM section 21.4)

Subscriptions

Telecommunications

Temp employment agencies

Utilities – electricity, gas, water

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Unauthorized Purchases on PCard

PCard should never be used for personal expenditures

Unintentional violation requires reimbursement of funds

Intentional violation subject to:

Loss of employment and/or

Criminal penalties

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Unauthorized Purchases on PCard

The following items may not be purchased with the PCard:

Alcoholic beverages or tobacco products

Cash advances, cash refunds, or “store credit”

Employee travel (lodging, transportation, meals)

Entertainment expenses (must be reimbursed through the Foundation or

GTRC)

Food/catering not in compliance with BFM 5.2.1.9 Food/Group Meals Policy

such as bottled water, beverage/coffee service, snacks, or entertainment.

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Unauthorized Purchases on PCard

The following items may not be purchased with the PCard:

Funding of the BuzzCard

Gift cards, stored value cards, prepaid cards, calling cards, gift certificates

Motor vehicle fuel

Personal purchases (includes data plans, software, or apps for non-

state issued devices such as smart phones, tablets, or laptop

computers)

Purchases from units of the Institute

Sales tax paid to Georgia vendors

Split purchases to circumvent transaction limits (misuse could result

in having your PCard privileges revoked)

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Sales Tax

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Cardholders are responsible for ensuring vendors do not charge Georgia sales tax

“AP – Sales & Use Tax Certificate of Exemption / Georgia Form” is available on www.procurement.gatech.edu under PCard Forms

If tax is erroneously charged, the cardholder must:

Contact vendor to obtain credit to the card Maintain documentation of attempts to obtain credit with the transaction

backup documentation

If credit cannot be obtained from vendor the department must pay the tax

Sales tax may not be disputed through the bank

Split Transactions

Georgia Tech received audit deficiencies for split transactions If the cardholder has multiple orders/purchases on the same day and

the total of these orders/purchases exceed cardholder’s single transaction limit, then it is a split transaction.

Ex. 1 . You place an order with XYZ Company for $2200 on 10/04/13 and you place another order with XYZ Company for $600 on 10/04/13. If your single transaction limit (STL) is $2499.99, then this is considered a split transaction.

Ex. 2: You place an order with XYZ Company for $500 on 10/04/13 and you place another order with XYZ Company for $1500 on 10/04/13. If your STL is $1500, then this is considered a split transaction.

In Ex. 1, the appropriate process would be to put the orders in BuzzMart via a requisition. In Ex. 2, the more appropriate process would be to have your PCard Coordinator send an email request to

[email protected] to increase your STL temporarily (the maximum STL is $4999.99, any amount over this requires special state approval). This process only takes a few minutes for PCard administration to make the change.

Cardholders who have special approval above the State STL of 4999.99 must also be careful and not split transactions to go above their special STL.

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Returning Purchases

Inform the vendor the item needs to be returned

Request a PCard credit be issued

Request a vendor return address

Request a vendor Return Authorization Number

Request a vendor confirmation of the credit

Check for the credit on your next monthly bank statement

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Resolving Disputes With Vendors

Attempt to resolve the problem directly with the vendor, documenting all communications

If you are unable to resolve the issue with the vendor, complete a PCard Dispute Form found at http://procurement.gatech.edu/pcard/training-forms#forms

Fax form to the bank at the number listed on the form

Notify your Department PCard Coordinator of the dispute and attach a copy of the dispute form to your monthly statement

Check the next statement to ensure credit is received *There is a 60 day time limit from the billing close date for disputed items*

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Review Question 7

A split transaction is the process of placing multiple orders/purchases on the same day with the same vendor and exceeding your single transaction limit.

A. True B. False

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Review Question 8

The PCard may be used to pay for a lunch meeting at a restaurant.

A. True B. False

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Review Question 9

How many days from the monthly billing statement do you have to complete a Vendor Dispute Form to Bank of America?

A. 45 days B. 60 days C. 90 days D. None of the Above

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Training/Certification Cardholders and Department PCard Coordinators

must complete the PCard Cardholder and Coordinator Training & Certification online tutorial Prior to card issuance or with initial Department PCard

Coordinator Status Annually in January for re-certification

Departments should ensure that: Approvers complete the PCard Cardholder & CoordinatorTraining &

Certification on-line tutorial Initially

Annually thereafter

Card program personnel are trained on internal procedures

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Training Additional online training

Works PCard Redistribution Campus PCard Redistribution – Journal Entry PCard Monthly Compliance Report

Group training or one-on-one training by Business Services available by request

DOAS State Purchasing Division www.doas.ga.gov (click on Statewide Card Programs, then top left, click on Knowledge Management)

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Certification

I accept, and agree to comply with, the terms and conditions of the EMPLOYEE AGREEMENT FOR THE GEORGIA INSTITUTE OF

TECHNOLOGY PROCUREMENT CARD PROGRAM and the provisions of the PCard Policies and Procedures Manual (PCard policy 5.2.1.8).

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Certified

PCard Program Key Points

PROCUREMENT CARD WEBSITE

www.procurement.gatech.edu

Click on forms > Procurement Card (PCard) List includes PCard Forms, Tax Exemption Forms, and PCard Presentations

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PCard Program Key Points

Annual Review of ongoing business need for cards

Frequently Asked Questions (FAQ’S) on website

PCard Quick Reference Sheet on website

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QUESTIONS

Contact your Department PCard Coordinator or

Beverly Wright, Procurement Card Program Manager [email protected]

404-894-1009

Visit our Frequently Asked Questions

section of our website!

Review Question 10

The best way to contact PCard Administration is through [email protected].

A. True B. False

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Tutorial Assessment Let’s see what you have learned by completing the

following Assessment

You must score 80% or higher to receive credit for completing this tutorial

You must complete this Assessment once you begin

Click next to begin

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