PROCUREMENT CARD PROGRAM HANDBOOK - … · PROCUREMENT CARD PROGRAM HANDBOOK . TABLE OF CONTENTS ... JPMorgan Chase is the issuing bank for the Metropolitan State University of Denver

Last updated 01/23/09

PROCUREMENT CARD PROGRAM HANDBOOK

TABLE OF CONTENTS

SECTION 1: INTRODUCTION 1

About the MSU Denver Procurement Card Program

How to Contact MSU Denver Procurement Card Administration

How to Contact JPMorgan Chase

Internet Resources/Documentation

SECTION 2: DEFINITIONS 4

SECTION 3: THE PROCUREMENT CARD PROCESS 6

Obtaining a Procurement Card

Purchase

Reallocation

Approval

SECTION 4: ROLES AND RESPONSIBILITIES 8 Cardholder

Re-allocator

Approving Official

SECTION 5: PROCUREMENT CARD DETAILS 10

Card Controls and Liability

Appropriate Use of the Card

SECTION 6: THE PURCHASING PROCESS 13

Selecting the Merchant

Placing the Order

Documenting Each Transaction

Inspecting the Goods

Returns and Exchanges

Disputes

Declined Transactions

SECTION 7: PROGRAM MANAGEMENT 18

Prohibited Transactions

Violations

Forms

Tools

Reports

APPENDIX A: SAMPLE APPLICATION FORM 22

APPENDIX B: HOW TO REALLOCATE 23

APPENDIX C: HOW TO DOWNLOAD YOUR STATEMENT 28

APPENDIX D: HOW TO VIEW DOCUMENTS IN APPLICATION

EXTENDER 32

APPENDIX E: APPROVING OFFICAL SPECIFIC RESPONSIBILITIES AND

REQUIRED ACTIONS 35

APPENDIX F: SERVICES ON THE P-CARD 40

APPENDIX G: EXAMPLE OF COMPLETED UNAVAILABLE

DOCUMENTATION FORM 42

APPENDIX H: HOW TO SET UP PAYMENTNET NOTIFICATIONS 43

APPENDIX I: HOW TO SPLIT FOAPAL IN PAYMENTNET 44

APPENDIX J: HOW TO DISPUTE A TRANSACTION IN PAYMENTNET 47

APPENDIX K: HOW TO SET YOUR STATEMENT TO DOWNLOAD

AUTOMATICALLY 49

1

Section 1: INTRODUCTION

About the MSU Denver Procurement Card Program

The Procurement Card (P-Card) is a MasterCard, issued to a specific individual, through

JPMorgan Chase. The card is used by MSU Denver employees to purchase goods and services

for University use. The authorized cardholder is able to purchase directly on behalf of MSU

Denver, thereby allowing tax-exempt use. Transactions are paid by MSU Denver to the bank.

Even though the card is issued in the employee’s name, no personal credit check is done, and the

employee’s personal financial situation has no bearing on whether or not the card will be issued.

The P-Card will also not impact an individual’s credit rating nor show up on their credit report.

Each purchase on the P-Card earns the University a cash rebate which is used to support

University initiatives.

The P-Card is separate and apart from the University issued Travel and Event cards which are

governed by different rules.

All departments are subject to the rules and processes outlined in this handbook; however,

departments are able to create and enforce stricter guidelines.

MSU Denver Procurement Card Administration provides support to campus departments

participating in the Procurement Card Program through the following:

Program set-up and management via creation, dissemination and

interpretation of applicable University policies;

Creation and dissemination of applicable training;

Identification of violations, including confidential reporting as well as taking

appropriate actions for such violations;

Issuance and termination of cards;

Assistance in P-card system logon and usage;

Auditing all P-card transactions.

2

How to Contact MSU Denver Procurement Card Administration

Main Line: 303 556-3030

Fax: 303 556-5023

P-Card Administrator 303 556-5003

Campus Mail Address: MSU Denver Procurement Card, Box 98

Regular Mail Address: PO Box 173362, CB 98, Denver CO 80217-3362

Physical Address: 890 Auraria Parkway, Suite 320, Denver CO 80204

E-mail: [email protected]

How to Contact JPMorgan Chase

JPMorgan Chase is the issuing bank for the Metropolitan State University of Denver

Procurement Card.

Main Phone: 1.800.316.6056 (Lost or Stolen Card)*

Fax: 1.847.931.8861

*Inform the bank it is a Purchasing Card. After contacting JPMorgan Chase, please notify

Procurement Card Administration (303.556.5021 or 303.556.5003) of a lost or stolen card.

A new card will be issued by the bank and sent directly to Accounting Services. Then the

cardholder will be notified to pick the card up.

3

Internet Resources/Documentation

MSU Denver website: www.msudenver.edu

Procurement Card Program information and forms: http://www.msudenver.edu/controller/resources/procurementcard/

Procurement Card Training On-line: http://www.msudenver.edu/controller/resources/training/procurementcard/

MSU Denver Purchasing Manual http://www.msudenver.edu/controller/resources/forms/accountspayablepurchasing/

Purchasing Training On-line: http://www.msudenver.edu/controller/resources/training/purchasing/purchasingtraining/

PaymentNet/ JP Morgan: http://paymentnet.jpmorgan.com

Gift Card Policy: http://www.msudenver.edu/media/content/officeofthecontroller/documents/accountspayable

/resources/employeegiftpolicy.pdf

Mandatory Award Matrix: http://www.msudenver.edu/controller/resources/forms/accountingservices/

Unavailable Documentation: http://www.msudenver.edu/controller/resources/procurementcard/

Footprints: https://hd.msudenver.edu

Role Affirmation Form: http://www.msudenver.edu/controller/resources/procurementcard/

4

Section 2: Definitions

Approving Official-The Approving Official (A/O) is the individual assigned to a

Cardholder to ensure compliance with procurement card policies and University fiscal

and procurement rules by reviewing the transactions on no less than a monthly basis.

A Cardholder cannot function as his or her own Approving Official, but a Re-

allocator can be an Approving Official. You cannot be an A/O for your supervisor.

Cardholder-The role of a Cardholder is to make purchases in accordance with the

fiscal and procurement rules established by Metropolitan State University of Denver,

to ensure accountability to the public and fairness to vendors.

Default FOAPAL- The FOAPAL you want every purchase to automatically charge

when the P-Card is used. Consideration must be given to how the card will primarily

be used, i.e. will it be used for supplies, or for coordinating meetings, etc. Despite

picking a primary purpose for the card, you are able to use the card for any reasonable

and necessary purchase that is in alignment with the “Expense Matrix”

http://www.msudenver.edu/media/content/officeofthecontroller/documents/accountin

gservices/Expense_Matrix%20-%2008.06.2012.pdf

You can and must reallocate the default FOAPAL to align each charge to the most

appropriate FOAPAL throughout the month, and before noon on the 28th of each

month.

FOAPAL-FOAPAL is an acronym used to identify the 6 following designators

which identify both the department making the purchase and the type of purchase:

o Fund-The funding source that is paying for the charge. All funding

types, i.e. general funds, auxiliary funds, grant funds etc, must adhere

to this policy and all other University purchasing policies. (This code

is required for all P-Card transactions)

o Organization- The department that is paying for the charge, i.e. the

Biology department, or the Accounting Department. (This code is

required for all P-Card transactions)

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o Account- The type of expense that best describes what is being

purchased, i.e. supplies, books, etc. (This code is required for all P-

Card transactions)

o Program- The code that defines how the purchase will be used, i.e.

instruction, academic support, etc. (This code is required for all P-

Card transactions)

o Activity- The code that helps further define the purchase, i.e. Athletics,

Alumni, etc. This code is always used for Foundation purchases with

Funds that begin with 48XXXX), but is optional for all other

purchases.

o Location- A code that helps further define the purchase. (This code is

optional for P-Card purchases)

Procurement Card Administrator- The P-Card Administrator is the person in

Administration and Finance who is responsible for overseeing the P-Card program in

its entirety.

Reallocate- To change the FOAPAL on the Paymentnet system to ensure it correctly

classifies the expense. For example, changing the default account code from 6700

(supplies) to 7020 (official function) when food for a meeting was purchased.

Reallocating is required and failure to properly classify an expense may result in card

revocation. You should reallocate throughout the month. All reallocations must be

finished by noon on the 28th (or next business day if the 28th falls on a holiday or

weekend.)

Re-allocator-The Re-allocator is the person assigned to each Cardholder in order to

specify financial (accounting) information for the Cardholder’s transactions. A

Cardholder may function as his or her own Re-allocator, but not his or her own

Approving Official.

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Section 3: P-CARD PROCESS

Departmental Process Overview

The departmental P-Card program is comprised of the following processes and participant

procedures:

Obtaining a Procurement Card: Only permanent MSU Denver employees are allowed to apply

for a P-Card. To obtain a P-Card, employees must pass the on-line P-Card training. After

successful completion of the training session the applicant will receive the Cardholder

Application form (please see Appendix A for sample form), the Cardholder Agreement form, and

the Role Affirmation Form. The application MUST be signed by the potential cardholder’s

department head in order for the application to be processed.

The completed forms MUST be e-mailed to [email protected]. Upon receipt of the

completed forms, MSU Denver Procurement Card Administration will order the new card from

JP Morgan Chase. The card is sent to the P-Card Administrator, who will notify the cardholder

once it is available. Cards will not be mailed out and must be picked up by the specific card

holder with appropriate identification.

Purchase. The authorized Cardholder within the department uses his or her P-Card to purchase

needed goods/services and submits the associated vendor receipt (and other documentation, as

required) to the designated Re-allocator (which could be the cardholder or the A/O or a third

person). After the purchase is made, specific transaction information is made available at the

JPMorgan Chase website www.paymentnet.jpmorgan.com (please use FireFox, or Chrome for optimal viewing results), and a notification is e-mailed to the responsible Re-allocator, and/or

(A/O), if notifications are set up. (Please see Appendix H for details on how to set up

notifications).

Re-allocation. The Re-allocator signs onto the JP Morgan website

(www.paymentnet.jpmorgan.com) in order to enter the correct financial information – changing

the Account chart field – for each transaction. The reallocated transaction information is

downloaded into the University’s Banner financial database. Reallocations should be done

throughout the billing cycle. Reallocations must be done by 12:00pm on the 28th of each month.

(please see Appendix B for instructions on how to re-allocate)

Approval.

On the 28th of each month, and after re-allocations have been done, you must run and save a

Statement of Account at the JP Morgan website for any Cardholder with transactions during

the previous cycle (please see Appendix C for instructions on how to run your statement).

The Cardholder, Re-allocator, or A/O can run and save the Statement.

The Cardholder electronically signs the Statement and sends it to the designated Re-allocator.

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The Re-allocator attaches appropriate documentation for every transaction listed on the

Statement and e-mails the packet to the Cardholder’s designated A/O.

The A/O reviews the Statement packet to ensure the transactions are appropriate and the

packet is complete, follows up on any outstanding issues, electronically signs the Statement

and e-mails it to [email protected] by the second business day of the month.

Document Retention: You may destroy all related documents once you see a scanned copy in

Application Extender (please see Appendix D on how to view documents in application

extender.)

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Section 4: ROLES AND RESPONSIBILITIES

Each time there is a change in the procurement card roles, a new Role Affirmation Form

must be submitted to the Procurement Card Administrator ([email protected])

http://www.msudenver.edu/controller/resources/procurementcard/

Cardholder

Cardholders are responsible for:

Completing the required Purchasing training;

Completing the required Procurement Card Program training every two years when card is

due for renewal;

Ensuring that Procurement Card and University fiscal / procurement policies are followed,

including but not limited to making sure your transactions are not charged tax, when

appropriate;

Obtaining complete merchant documentation for every transaction and providing the

documentation to the Re-allocator immediately following the purchase;

Signing and printing their name and dating the Statement of Account for each cycle in which

there are transactions, and sending it to the Re-allocator. (STATEMENTS CANNOT BE

DOWNLOADED ANY SOONER THAN THE 28TH, after all reallocations have been

completed).

Protecting the card at all times to prevent unauthorized use. Cardholders must not share or

authorize others to use the card;

Immediately reporting a lost or stolen card to the bank and to Procurement Card

Administration. The University is liable for all charges incurred on a lost or stolen card up to

when it is reported to the bank. However, fraudulent charges can and should be disputed. If

the bank is able to recover fraudulent charges, monies will be credited to the cardholder’s

account;

Notifying Procurement Card Administration immediately of changes in personnel related to

the P-Card.

For more information about card usage, see Section 5 & 6 of this handbook.

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Re-allocator

Re-allocators are responsible for:

Completing the required Procurement Card Program training;

Attaching the documentation for each transaction, received from the Cardholder, to the

monthly Statement of Account and giving those Statements to the Approving Official no

later than the second business day of the month following the close of a cycle;

Reallocating transactions from the default Banner FOAPAL in PaymentNet

www.paymentnet.jpmorgan.com. Transactions should be re-allocated throughout the

billing cycle, but must be done by 12:00pm on the 28th of each month. (Please see Appendix

B for re-allocation procedures). Contact the Procurement Card Administrator for specific

questions assigning account codes;

Notifying Procurement Card Administration immediately of changes in personnel related to

the P-Card.

Approving Official

The A/O plays a critical role in ensuring the integrity of the procurement card program at the

departmental level.

A/Os are responsible for:

Completing the required Purchasing Training

Completing the required Procurement Card Program training every two years;

Monitoring the transactions for appropriateness;

Identifying possible violation(s);

Taking appropriate action if violations are found (see Appendix E “AO Specific

Responsibilities & Required Actions” later in this section);

Ensuring adequate documentation for every transaction. As well as ensuring an explanation

of the business purpose is included if an outside person would not be able to reasonably

identify it;

Ensuring statements:

- Are signed and dated by the Cardholder and Approving Official by no later than the

second business day of the month following the close of each cycle.

- Have all backup documentation, including violation forms and missing

documentation forms, if necessary.

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- Arrive in Accounts Payable no later than the second business day of the month

following the close of the cycle.

Notifying Procurement Card Administration immediately of changes in personnel related to

the P-Card.

Section 5: PROCUREMENT CARD DETAILS

Card Controls and Liability

Controls on the Card

When the potential cardholder applies for a P-Card they indicate certain control measures on the

application. Each Procurement Card is set up with the following control parameters:

Default FOAPAL. Each P-Card has a default FOAPAL, identifying the Cardholder’s

department. All transactions are assigned to the default FOAPAL unless the Re-allocator

changes it. An application will not be processed unless the FOAPAL is indicated on the

application.

Maximum dollar amount per transaction. The department can limit the maximum

dollar amount that each Cardholder can spend in a single transaction. If an amount is not

indicated then it will default to $5,000.00

Maximum dollar amount per cycle. The department can limit the maximum dollar

amount that can be spent by each Cardholder during a cycle. A cycle lasts approximately

30 days, beginning on the 28th of the month and extending through the 27th of the

following month. The standard per-cycle limit is $5,000. However, departments can

request an increase or decrease to this limit based on purchasing needs. Please contact P-

Card Administrator for details.

Maximum daily number of authorizations. The department can limit the maximum

number of transactions that each Cardholder can make within a single day. If no limit is

indicated on the application no limit will be imposed.

Each P-Card is further set up to exclude specific Merchant Category Codes, for example:

airlines, vehicle rentals, liquor stores, etc.

IMPORTANT NOTE: P-Cards do not come with access to purchase food at a restaurant.

If this access is necessary you must have the A/O submit an e-mail to the Procurement

Card Administrator stating why that access is required.

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Liability Issues

The department is liable for all charges made on Procurement Cards assigned to their

Cardholders.

Charges on Lost or Stolen Cards. The department is liable for all transactions made on a

lost or stolen card before it is reported as lost or stolen to the issuing bank.

Grant Charges. In the event a department charges expenses to a grant that are later

deemed unallowable the cardholder’s department will be held liable.

Appropriate Use of the Card

These are the questions that should be considered before making a purchase:

Is the purchase appropriate for the University and does it have a valid business

purpose?

Is the purchase allowable on the Procurement Card?

Does the vendor have a mandatory award?

Does the purchase follow the guidelines of a grant budget (if applicable)?

Is the purchase appropriate for the University and does it have a valid business purpose? While not strictly prohibited, the following items could be considered sensitive and have been

known to generate questions. If these items are purchased, special documentation may be

required. Contact the Procurement Card Administrator for more details.

Break Room equipment Gifts or tokens

Donations Political expenses

Employee appreciation events and gifts Retirement parties

Flowers and fruit baskets Tickets to events

Fund-raising expenses

SHIPPING ADDRESSES- Mailing goods to an address other than the University must

be approved by the A/O and documented on the statement.

SERVICES – Services may require the use of an SPO or PO. (Please see Appendix F

for instructions on services paid via the P-Card).

GIFT CARDS – Contact the A/P Systems Manager (6-5021) to receive guidance on gift

card purchases before making the purchase. Please see Gift Card policy: (http://www.msudenver.edu/media/content/officeofthecontroller/documents/accountspayableres

ources/employeegiftpolicy.pdf)

12

MANDATORY AWARD VENDORS- Purchasing goods identified on the Mandatory

Award Expense Matrix from vendors not specifically listed must include a waiver with

the monthly statement. Waivers can be requested from the AVP of Admin and Finance.

RESTAURANT MEALS – When a new card is being requested the department head

must indicate if access to restaurant meals is required and why. If it is not requested on

the application this access is restricted.

CONTRACTS REQUIRING AN AUTHORIZED SIGNATURE – All contracts

requiring an authorized signature must be routed through the Contracts Manager (6-4646)

to obtain an authorized signature prior to the purchase.

DONATIONS – these purchases must be to non-MSU Denver/ MSU Denver Foundation

departments, and fully documented to detail specifically what the payment includes, i.e.

recognition, membership, etc.

UNALLOWABLE GRANT PURCHASES – purchases must be made within the terms

of the grant or contract.

TECHNOLOGY RELATED PURCHASES – because ITS staff install and support

technology, and are responsible for the life cycle management of all University

technology assets, these purchases must be made by ITS procurement staff. These

purchases include computers, iPads, tablets, printers (including local printers), software,

servers and other technology equipment. Non-ITS procurement staff cardholders are

prohibited from making these purchases with their Pcards. Requests for these purchases

must be made with a Footprints ticket (https://hd.msudenver.edu) and a FOAP included

in the ticket for the expense. ITS procurement staff will make the purchase and reallocate

the expense to the department making the purchase. If the technology expense will be

paid with ITS budget, the person placing the order via Footprints will be informed that an

expense transfer to their FOAP will not occur.

Is the purchase allowable on the Procurement Card? There are several types of purchases

that are specifically prohibited on the Procurement Card (see Section 7, Program Management).

Does the purchase follow the guidelines of the grant budget (if applicable)? The purchase of

goods with grant funds must comply with:

The overall intent of the award;

The specific detail of the grant’s budget; and

Metropolitan State University of Denver policies and procedures.

Additional guidance for grant expenditures is provided by the MSU Denver Grants and Contracts

Manager (6-5007).

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Section 6: THE PURCHASING PROCESS

It is very important to remember that P-Card purchases must follow all University purchasing

rules, including mandatory vendors, bidding requirements, fiscal rules, and V.P. approvals.

However, there are some benefits to using the P-card which allow some purchasing rules to

be bypassed.

Selecting the Vendor

The following questions should be asked before selecting the merchant:

Is there a mandatory award for the vendor? (please see

http://www.msudenver.edu/controller/resources/forms/accountingservices/ )

Does the vendor offer a discount to the University?

How much are you spending with the vendor during the fiscal year? The dollar amount of

the transaction helps determine if encumbrances etc. are needed. Table A below is a

summary of when S/PO and Bids are required when you’re purchasing goods only. You

can see that using the P-card allows you to side step many encumbrance requirements, so

use the card whenever you can. The information regarding limits for services is located

in Appendix F at the end of this document. Additional information is available in the

purchasing manual via the following link: http://www.msudenver.edu/controller/resources/training/purchasing/

TABLE A: Summary of Encumbrances by Payment Type

Encumbrances Required

Goods Only

Mandatory Award Vendor State Award Vendor All other vendors

Payment Method

< $5K per planned purchase

> $5K and <$10K per planned purchase

>$10K per planned purchase

< $5K per planned purchase

> $5K and <$10K per planned purchase

>$10K per planned purchase

< $5K per planned purchase

> $5K and <$10K per planned purchase

>$10K per planned purchase

Check Request SPO PO PO SPO PO PO SPO PO Bid

P-card N/A N/A N/A N/A N/A N/A N/A PO Bid

Event card N/A N/A N/A N/A N/A N/A N/A N/A N/A

Travel card N/A N/A N/A N/A N/A N/A N/A N/A N/A

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Placing the Order

Orders can be placed in person, by phone, via fax, by mail, or via the internet. However, they

can only be made by the Cardholder. The Cardholder shall not give their card or card

number to anyone. If the internet is used to place an order, make sure it is a secure site or place

the order by phone.

Tip: To know if a site on the internet is secure, both Google Chrome and Firefox will display a

closed padlock in the status bar, located at the top of the web browser.

When placing an order, make sure:

The purchase is tax exempt. If the vendor needs the University’s Tax Exempt Certificate,

it can be found on the MSU Denver website:

http://www.msudenver.edu/controller/resources/forms/accountspayablepurchasing/

The merchant gives the University any applicable discounts;

You give your name as it appears on the card;

The merchant will not automatically charge your card for monthly or annual renewals;

You give accurate delivery information; and

You request documentation showing description and cost of each item.

Note: Purchases with the AHEC Bookstore must have sales tax waived. A 15% discount is also

given if supplies and clothing are being purchased. Book purchases do not receive this discount.

If the vendor requests a “billing address,” the vendor is trying to match the information on file at

the bank with the information the Cardholder gives. The billing address is the same for all

cardholders with the exception of the campus box. Please see below:

PO Box 173362 CB XX (Where XX is your specific campus box)

Denver, CO 80217-3362

Documenting Each Transaction

Every transaction must have valid original source documentation from the merchant. All

source documents MUST include the following information:

Vendor identification (Merchant Name);

Date of purchase;

Description and quantity of each item purchased (write in, if not apparent on receipt);

Total cost and per item cost of the order (itemized receipt).

15

Business Purpose: For transactions that do not have an obvious business purpose, a brief

explanation of how the purchase benefits the University must be included in the monthly

procurement card documentation (i.e., either on the receipt or the monthly statement). In

addition, the following documentation must accompany the source documentation, if applicable:

Sensitive Expense. A more detailed explanation should be included for sensitive expenses

such as food purchases, recognition gifts, etc. For example, decorations are purchased for a

reception; the type of event and for whom the event was held should be briefly noted on the

receipt, such as “retirement reception for Professor Smith.”

Food Purchases. A list of attendees must be provided when food is purchased.

Gifts and Gift Cards. Explanation must include name of the recipient, whether or not they

are an employee, student, or otherwise affiliated with the University (please list their

University issued 900# if they are an employee or student, SSN if not), the dollar amount, the

date of award, and why the gift was given. Please contact the A/P System Manager (6-5021)

if you plan on purchasing gift cards; however additional guidance is also available at the

following link.

http://www.msudenver.edu/controller/resources/policies/

Phones – all requests for accessories for University owned cell phones (Bluetooth devices

and chargers, cases/holders, etc.) must be ordered through MSU Denver Business Services.

Please contact Business Services at x 6-2912.

Technology Related Purchases - because ITS staff install and support technology, and are

responsible for the life cycle management of all University technology assets, these

purchases must be made by ITS procurement staff. These purchases include computers,

iPads, tablets, printers (including local printers), software, servers and other technology

equipment. Non-ITS procurement staff cardholders are prohibited from making these

purchases with their Pcards. Requests for these purchases must be made with a Footprints

ticket (https://hd.msudenver.edu) and a FOAP included in the ticket for the expense. ITS

procurement staff will make the purchase and reallocate the expense to the department

making the purchase. If the technology expense will be paid with ITS budget, the person

placing the order via Footprints will be informed that an expense transfer to their FOAP will

not occur.

IMPORTANT NOTE: If you have a Purchase Order (PO) for a payment on the P-Card

please type the PO number next to the line item on the statement. This will notify Accounts

Payable that the PO needs to be liquidated (reduced). The PO will be liquidated by the

amount of the P-Card payment.

Note: In the event that the original documentation is lost or not obtainable, an Unavailable

Documentation form (http://www.msudenver.edu/controller/resources/procurementcard/) needs to be filled

out by the Cardholder. However, frequent use of this form could result in card revocation.

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Inspecting the Goods

Goods need to be inspected upon receipt by the department. If there are any problems with the

order, the department must contact the vendor immediately. If the department and the vendor

cannot come to a resolution about how to correct the issue, the department must immediately

contact the P-Card Administrator.

Returns and Exchanges

Arrangements need to be made directly with the vendor before shipping an item for return. If a

replacement item is sent, the vendor will credit the returned item and charge a new transaction,

unless there is an exchange of like items, e.g. exchange of different colors. Cash should never

be refunded – it would be a merchant violation to issue it and a Cardholder violation to accept

it.

If there is a problem with an order or goods are returned or exchanged, keep sufficient

documentation of the transaction, including names, dates and conversation results. This

information may be needed for a formal dispute.

Inadvertent Personal Purchases

In the event of an inadvertent personal purchase, you must contact the vendor and ask for a credit

on the P-Card and make arrangements for another form of payment. Do not simply reimburse

the University. If the vendor won’t credit the transaction, immediately contact the P-Card

Administrator.

Disputes

If a credit is unobtainable by working directly with the vendor, a formal dispute can be recorded

with the bank in the following scenarios:

Unauthorized charges, including unauthorized phone or mail order charges;

Difference in dollar amount authorized and amount charged;

Duplicate charges;

Transaction the Cardholder is challenging for some other reason;

Refund not issued by vendor;

Merchandise not received;

Merchandise returned;

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Defective merchandise;

Unrecognized charges; or

Altered charges.

If fraud is suspected, immediately call the bank to report the charge. The card may be closed and

reissued. Then call Procurement Card Administrator.

The dispute process involves the following steps:

The Cardholder must complete the online dispute form on Paymentnet within 60 days of

the end of the cycle (27th of the month) in which the transaction appeared. (See Appendix

J for the Transaction Dispute Procedure)

The bank immediately issues a credit for the dispute, pending correspondence with the

vendor.

Both the charge and the credit need to be reallocated to the same FOAPAL on

PaymentNet.

Declined Transactions

If an attempt to purchase was made with the P-Card and the transaction was declined, call the

Procurement Card Administrator at 303 556-5003. If the Procurement Card Administrator is

unavailable press “0” and you’ll be forwarded to the front desk; please ask for immediate

assistance. If you are in need of assistance outside of normal business hours you can call

JPMorgan Chase Customer Service (1-800-316-6056) for information.

The most common reasons for a declined transaction are:

Cardholder did not activate the card. Cardholder should now do so.

Cardholder has reached one of his or her transaction limits. To change the limits on the

card, the A/O must contact the Procurement Card Administrator.

Vendor is classified under a merchant category code (MCC) that is blocked from use.

The Cardholder should contact the Procurement Card Administrator.

Vendor asked for the billing address and the information provided by the Cardholder

does not exactly match that on file with the bank. Have the Reallocator login to the

JPMorgan Chase website (www.paymentnet.jpmorgan.com) to verify the Cardholder’s

billing address.

On phone orders, vendor has incorrectly noted the card number and/or expiration date.

Cardholder should verify information.

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The transmission between the vendor and the bank is down. Vendor should try again

later.

Cardholder is not using the P-Card. Cardholder might be using a travel card or event

card by mistake.

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Section 7: PROGRAM MANAGEMENT

Prohibited Transactions

CARD ABUSE - DO NOT make purchases for personal use. An inadvertent personal

purchase must be reported immediately to the A/O and the Procurement Card Administrator.

The Cardholder must then, within 48 hours, arrange for a refund from the vendor. An offsetting

credit creates greater transparency. A Violation Warning Form must be completed and included

with the monthly statement with proof of a refund. A personal purchase that is not reported to

the A/O by the Cardholder IMMEDIATELY can be considered to be suspected fiscal

misconduct, which may result in termination and possible prosecution. Suspected fiscal

misconduct or abuse of the card for personal purchases must be immediately reported to the

Procurement Card Administrator.

SHARING THE CARD – Sharing the card or card number is strictly PROHIBITED and may

result in immediate card revocation.

SPLIT PURCHASE TO AVOID PURCHASING RULES – a single purchase costing over

$5,000 split over several transactions.

SPLIT PURCHASES TO AVIOD CARDHOLDER CONTROLS – purchases split by the

vendor to avoid cardholder controls, without signature of the A/O on the Statement of Account.

ALCOHOL – The card is closed from allowing purchases at liquor stores, unless an exemption

has been granted.

DEPOSITS - Do not use your P-Card for pre-paid deposits with a vendor without prior approval

from the Procurement Card Administrator and Controller.

TRAVEL AND TRAVEL RELATED EXPENSES – airfare, vehicle rental, meals, lodging,

parking, ground transportation, miscellaneous transportation for either employees or non-

employees.

VEHICLE EXPENSES – service station transactions, auto parts, vehicle repairs, vehicle rental,

vehicle maintenance and/or service.

INAPPROPRIATE PURCHASES/EXPENSES - purchases need to be made in accordance

with department specific Appropriateness of Purchases policies – examples where clarification

of department specific policies may need to be checked through the campus Controller’s office

are gifts, flowers, official functions, contributions, etc.

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CASH OR CASH TYPE TRANSACTIONS – receiving cash as a credit for return of an item,

receiving cash in addition to a purchase, money orders, traveler checks. Cash advances via ATM

are closed to all Cardholders.

DRUG ENFORCEMENT AGENCY LICENSED SUBSTANCES – Controlled Substances.

PURCHASES WHERE MSU DENVER OR THE MSU DENVER

FOUNDATION IS THE RECIPIENT- Transactions between MSU Denver

departments must be tracked in a unique way, which is not possible via the P-Card.

Also, there are transactional fees the University must pay when it accepts a credit

card as payment. Internal transfers are the only acceptable way to pay another MSU

Denver department. The University is also strictly prohibited from issuing payments

to the MSU Denver Foundation.

Violations

All departmental P-Card program participants, including the department head, are required to

know and follow Procurement Card Program policies, including program violations and their

consequences.

Department Review for Violations

It is the responsibility of the A/O (sometimes with the assistance of the department’s Re-

allocators) to review transaction documentation in order to identify possible violations in card

use. This review must be conducted for all transactions in each cycle period.

If the A/O determines that a violation has occurred, s/he must issue a Violation

Notification form to the Cardholder. The form must be signed by the A/O and

Cardholder, and attached to the monthly statement.

All transactions and documentation are audited by the Accounts Payable staff monthly to

determine if a violation has occurred.

Chronic Abuse of Procurement Card Privileges

Cardholders with violations may have their cards suspended for a period of six months

and will be required to complete Procurement Card Cardholder training before their

cards can be reinstated.

Any Cardholder may have his or her card suspended or revoked at any time at the discretion of

Procurement Card Administrator, the Approving Official, or the Department Head.

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Forms

There are a number of forms relevant to the Procurement Card Program. All forms are available

on the Controller’s website: http://www.msudenver.edu/controller/resources/procurementcard/.

Below are the Procurement Card Program forms and their use:

Unavailable Documentation. Used when a Cardholder is unable to provide the required

vendor receipt/transaction documentation. This form should only be used when the

Cardholder has attempted to contact the vendor to get appropriate documentation. (Please see Appendix G for an example of a completed form. A blank for can be found at

http://www.msudenver.edu/controller/resources/procurementcard/)

Violation Notification. Used to notify a Cardholder of a violation of P-Card policies. This

form is signed by the A/O and the Cardholder and included with the monthly statement.

Tools

The management tools available to enhance the Procurement Card Program include e-mail

notifications, printed statements, and reports from Paymentnet; information and documentation

on the Accounting Services home page; and the Procurement Card Administrator.

E-mail Notifications

Procurement Card Program participants receive the following information, as applicable, directly

via email.

New Transaction Notification. Transactions billed by MasterCard are downloaded to

Paymentnet, which, if activated through the user’s profile, e-mails new transaction

notifications to A/Os, Re-allocators, and Cardholders. The A/O receives a summary e-mail

of all transactions made by his or her assigned Cardholders. The Cardholders and their Re-

allocators receive individual e-mails identifying each transaction by date, dollar amount, and

vendor. It is the responsibility of the Cardholder to immediately provide the transaction

documentation to the Re-allocator; it is the responsibility of the Re-allocator to have all

transactions re-allocated by 12:00pm on the 28th of each month. (see Appendix H for

procedures on how to set up this notification)

Note: These e-mails are a first line of defense to ensure the integrity of the Procurement

Card Program and to minimize liability in case of fraudulent use of a card. It is HIGHLY

recommended you activate it on your user’s profile.

P-CARD Statement Notification. This e-mail informs the A/O as to which of his or her

assigned Cardholders had transactions during the previous cycle. The A/O should use this

notification as a check-off list to ensure that all needed statements are received signed from

Cardholders. Statements are available only for those Cardholders who had transactions

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posting to the bank in the previous cycle period. (See Appendix H for procedures on how to

set up this notification)

Reports

All Cardholders, Re-allocators, and A/Os have the ability to run the following useful reports in

Paymentnet:

Transaction Summary Report. This report provides the same summary information as the

Paymentnet Statements Notification e-mail, described above. The A/O should use this as a

check-off list to ensure that all needed statements are signed and received from

Cardholders/Re-allocators.

Listing of Transactions. This report lists all transactions, by transaction date, for the

specified Cardholder over the specified timeframe. The A/O should use this to answer

specific questions or to research specific transactions.

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Appendix A

Sample Application Form

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Appendix B

Reallocation Procedures

Please verify the FOAP and make any necessary reallocations immediately after the purchase is

made and all documentation is received from the cardholder. Reallocations can be done at any

point during the billing cycle. Reallocations must be done by 12:00pm on the 28th of each month.

Habitual oversight of this function will result in infractions and may result in termination of your

ability to serve as a re-allocator. If the cardholder is serving as their own re-allocator, the

cardholder may have their p-card revoked.

1) Sign on to the PaymentNet website (www.paymentnet.jpmorgan.com)

2) Click on the “transactions for review”

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3) A listing of transactions will appear. Click on the “Transaction Amount” for any item you

want to reallocate or verify the FOAP

“General Information” about the transaction will appear.

On the far right hand side of the screen the default FOAP will appear.

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4) Look at the receipts and other supporting documentation given to you by the cardholder

and select the appropriate account from the “Account” drop down menu.

If the account is there, select it and it will populate the “Account” field

If the account is not there, manually type in the account number. If the account still does not

appear, please contact the Procurement Card Administrator.

If no reallocation is necessary, leave the account as the default account

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5) Click the radio box next to “Reallocated”. Check this box even if you did NOT change

the account.

6) You can type in some notes for yourself about the reallocation. A good transaction note

would be a detailed description of the item that was purchased.

7) Click the “Save” button.

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8) A message that the “Information was saved successfully” will appear in the top right

corner.

9) When you return to the main screen that lists all your transactions (by clicking on

“Transactions” on the top left and then “Manage”) you will see the reallocated box

checked next to the amount

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Appendix C

How to Download Your Statement

Procurement Card Statements – Manual Download

www.paymentnet.jpmorgan.com

These instructions are for manually downloading your procurement card statement. The instructions are different if

you want to set up automatic statements.

Never print your procurement card statement before the 28th of the month.

Go to http://www.paymentnet.jpmorgan.com

Login

Enter the organization ID “MSCD765” Enter your user ID

Enter your password and then click

Welcome

Organization ID

User ID

Password

Forgot Your Password

30

Place your cursor over Reports, then select Create.

Report List

Click on “Statement of Account Portrait”.

Report Detail

1) Under Date Range, Post Date defaults from the “Field” 2) Select Cycle Is from the “Operation” dropdown list 3) Select MSCD Cycle and date range for the month of cycle from the “Value” dropdown list 4) Under Criteria , select Cardholder Last Name from the “Field” dropdown list 5) Select Is Equal to from the “Operation” dropdown list

Select “Create”

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6) Type in cardholder’s last name in the “Value” 7) Click on “Process Report”

Available Downloads

1) Submitted, Processing, and Successful 2) Click Refesh until the “Status” indicates “Successfully” 3) Click on “Statement of Account Portrait”

4) A File Download box will appear and you can either Save or Open the file.

Process Report

Refresh

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5) The Statement of Account – Portrait should look like this:

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Appendix D

How to View Documents in Application Extender

34

35

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Appendix E

AO Specific Responsibilities & Required Actions

The AO must review assigned Cardholders’ transactions. The details of the AO’s

responsibilities are outlined below:

AO Responsibility AO Required Action

I.) As purchases are made:

a.) Is purchase allowable / appropriate and have

a valid business purpose on the Procurement

Card? Specific Violations are identified as “Prohibited

Transactions” on page 18. Section 5 addresses

“Appropriate Use of the Card”.

If an unallowable purchase is discovered: The AO will issue a Violation Notification

form to the Cardholder, and the item must be

returned. If the item cannot be returned then

the employee becomes financially responsible

and is the owner of the item. A credit on the

card must be issued and the employee must

provide another form of payment to the

vendor. The violation form must be signed by

the AO and the cardholder, and included with

the appropriate cycle statement.

b.) Evaluate potential for inadvertent personal

purchase.

It is possible that a Cardholder might make an

inadvertent personal purchase on his or her

Procurement Card. In such cases, the Cardholder

must immediately notify his/her AO and MSU

Denver Procurement Card Administration.

In addition, the Cardholder must immediately

contact the vendor to request a credit on the P-

Card and to charge a personal credit card instead.

c.) Review shipping addresses.

If the personal purchase was inadvertent: The Cardholder must report inadvertent personal

purchases to the AO immediately upon

discovery. Cardholder will also:

Ask the vendor to credit the Procurement

Card and charge a personal credit card

instead; or,

If the vendor is unwilling to credit the

transaction, immediately contact the P-card

Administrator

The AO will issue a Violation Notification form

to the Cardholder. This form is signed by the AO

and the Cardholder, and is attached to the

monthly statement along with proof of a credit

for the transaction.

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When ordering on-line it is possible the card

holder uses their personal mailing address;

however, this should be a rare occurrence and

only done in exceptional circumstances. Using

the University’s shipping address ensures the item

is at the University where the greatest good can be

received. If a personal mailing address is used the

cardholder should notify their AO as to why the

University address couldn’t be used.

The AO must ensure there is a reason

documented on the statement as to why the item

couldn’t be shipped to MSU Denver’s receiving

department. The AO must also initial the line

item on the statement indicating their approval.

d.) Evaluate potential for employee fraud.

A more serious situation occurs when someone

deliberately makes personal purchases on the

Procurement Card. These purchases may be fiscal

misconduct (employee fraud). The AO will

review the documentation for each transaction and

determine if each specific item being purchased is

indeed for University business.

If employee fraud is suspected:

If the AO discovers that a Cardholder may be

purchasing personal items and not reporting this

immediately as inadvertent, the AO will

immediately report suspected employee fraud to

MSU Denver Procurement Card Administration.

The card will be immediately suspended until an

investigation of the circumstances can be done.

Note on employee fraud.

The department is liable for all purchases made

by its Cardholders. If the AO suspects that one of

the Cardholders is making fraudulent purchases,

s/he must act quickly in order to protect

departmental funds. MasterCard has a Liability

Protection Program to protect the University

against employee fraud. Under this program,

specific timeframes and circumstances must be

met in order to qualify for protection. Contact

Procurement Card Administration for further

details.

e.) If covered by sponsored project funds, is the

purchase within the terms of the specific

project?

All purchases using sponsored project monies

must be made in accordance with the terms of the

grant or contract. (See Section 5 under

“Appropriate Use of the Card.”)

If an unallowable sponsored project charge is

discovered:

Purchases made with sponsored project funds that

are not within the terms of the specific grant

place the University at risk of losing the grant.

If the AO identifies transactions assigned to

sponsored projects that do not seem allowable

under the terms of the specific project, the AO

will discuss the situation with the Principle

Investigator of the grant.

Unallowable charges must be moved out of the

grant FOAPAL and reassigned to an appropriate

FOAPAL using one of the following methods:

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Reallocate the transaction again at the

JPMorgan Chase website; or,

if the charge was reallocated in a previous

month, contact Accounting Services

[email protected] to request a

journal entry in Banner Finance to correct the

FOAPAL.

If an unallowable purchase is discovered, the AO

will issue a Violation Notification form to the

Cardholder. The form must be signed by the AO

and cardholder and included with the monthly

statement.

II.) After the close of the Statement

Cycle:

a.) Ensure each transaction has documentation.

Each transaction listed on the monthly Statement of

Account must be supported by appropriate

documentation.

Valid documentation includes the following:

Merchant name;

Purchase date;

Description/quantity of items purchased (this

information may be handwritten on the

receipt);

Cost per item (itemized receipt);

Total cost of order;

Explanation of purchase, if this is an unusual

purchase for the specific department.

Documentation varies and may include:

Receipt and card transaction slip from the

merchant;

Delivery packing slip, if amounts are present;

Detailed order form;

Vendor invoice;

Merchant e-mail confirmation;

Transaction detail that is itemized on the p-

card statement

Combinations of documentation are allowed in order to

complete the requirements of valid documentation as

discussed in the previous paragraph.

If documentation is insufficient:

If original documentation is lost, or if the

merchant did not provide documentation, the

Cardholder should contact the merchant directly

to request it.

If documentation cannot be obtained, the

Cardholder must complete the Unavailable

Documentation (UD) form and submit it in place

of the merchant receipt/ documentation. Please

note that the UD form cannot be used to

substitute for other required forms, furniture

waiver, etc.

Please note that three instances of missing

documentation (regardless of reason) may result

in card revocation.

If lack of documentation is a chronic problem

for this Cardholder:

If the AO feels that the card holder habitually

fails to provide proper documentation they may

complete a Violation Notification form and send

it to the P-Card Administrator. This form does

not replace the UD form but rather is used to

communicate any concerns by the AO to the P-

card Administrator. On this form the AO may

indicate that a warning has been given to the

cardholder or they may request that the card be

revoked.

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b.) Is the purchase split by the vendor to avoid any

controls on the card (e.g. single amount limit,

daily amount limit, daily transaction limit)?

c.) Ensure all Statements are signed and dated.

The AO will ensure that all Statements are signed

and dated by the appropriate people by the second

business day of the month following the close of the

cycle.

If the purchase has been split by the vendor

but the total amount of the transactions are

under $5,000.00:

The AO must sign next to the transaction to

acknowledge this has been done and ratify the

transaction. If the AO believes the split was not

authorized a violation form must be filled out.

If the purchase has been split by the vendor

and the total amount of the transactions are

over $5,000.00:

A violation form must be filled out.

If Statements are not signed and dated:

The AO will require all Cardholders to submit

signed, completed Statement packets by the

second business day of the month following the

close of the cycle.

If this is repeatedly violated, the card will be

revoked.

Notify Procurement Card Administration of changes

in department participants.

The AO will immediately notify the Procurement Card

Administrator if program participants leave the

department or if new participants are to be added to the

departmental procurement card program.

To add or delete individuals from the

departmental procurement card program:

To add participants:

New Cardholder – See Section 3 “Obtaining a

Procurement Card”

New Re-allocator – The AO will submit a new

role affirmation form to the Program

Administrator.

To delete participants:

Delete Cardholder - The AO will submit an e-

mail request to close the cardholder account. The

AO will then ensure that the card is sent to the

Program Administrator to be destroyed

immediately.

Delete Re-allocator – The AO will submit a new

role affirmation form.

To replace an AO: The department head will

submit an e-mail request to the Program

Administrator and a new role affirmation form

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will be routed.

If notification is not given to the Program

Administrator, the card will be closed

immediately.

41

Appendix F

Services on the P-card

42

43

Appendix G

EXAMPLE OF COMPLETED UNAVAILABLE DOCUMENTATION

FORM

44

Appendix H

How to Set up PaymentNet Notifications

STEP 1: Log into www.PaymentNet.jpmorgan.com.

Organization ID: MSCD765

User ID:XXXXXX

Password:XXXXX

STEP 2: In the upper right hand corner of your home screen, select My Profile.

Once this page opens, you should see the option for Email Notifications.

STEP 3: Select Reports. This will allow you to receive email notifications.

STEP 4: Click SAVE at the top of the screen.

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Appendix I

How to Split FOAPAL in PaymentNet

Please verify the FOAP and make any necessary reallocations immediately after the purchase is made and all

documentation is received from the cardholder. Reallocations can be done at any point during the billing cycle.

Reallocations must be done by 12:00pm on the 28th of each month. Habitual oversight of this function will result in

infractions and may result in termination of your ability to serve as a re-allocator. If the cardholder is serving as their

own re-allocator, the cardholder may have their p-card revoked.

STEP 1: Log into www.PaymentNet.jpmorgan.com.

Organization ID: MSCD765

STEP 2: Select “Transactions for Review”

STEP 3: A listing of transactions will appear. Select the “Transaction Amount” for any item you want to reallocate

or verify the FOAP.

46

STEP 4: Once you select the transaction you want split, the page will open with the General Information Tab.

STEP 5: Look at the receipts and other supporting documentation. If the charge needs to be split between two or

more FOAPAL then select the option Add Lines (Shown Above)

STEP 6: A box will appear. This will allow you to enter the number of lines (ex: split into 2 foaps, then 2 lines will

be chosen) Click “Add”

Scroll to the bottom of the page. (See below)

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STEP 7: You will see the lines you added here. You can split based off a percentage (which will auto-calculate the

split amounts) or you can split based on the # of units & unit price (which you will need to verify the totals are

correct.)

STEP 8: Select the arrow on the left hand of the screen under Item. You will see it drop down into the FOAPAL.

Make the necessary changes to your FOAP. Select the next item (2, 3, etc…) arrow to make the necessary changes.

After you make you changes, select the “Reallocated” check box.

STEP 9: After changes have been made, scroll to the top of the screen and select “SAVE”

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Appendix J

How to Dispute a Transaction

49

50

Appendix K

How To Set Your Statement To Download Automatically

51

52

53