1.1     Purpose

1.2     Benefits

1.3     The Credit Card Company

 

2.1     UMB Bank

2.2     Washburn University Purchasing Department

 

3.1     Obtaining a Card

3.2     Keeping your Card Secure

3.3     Sales Tax Exemption

3.4     Limitations Specific to Your Card

3.5     Limitations on All Cards

3.6     Automatic Renewal

3.7     Changing Card Limits & Updating Cardholder Information

3.8     Termination of Employment

      

4.1     Purchases in Person

4.2     Purchases by Phone, Fax, Mail or Internet

4.3     Returns, Damaged Goods, Credits

 

5.1     Dispute of Statement Item

5.2     Dispute with Supplier

 

6.1     Procurement Card Statement

6.2     Who Can Approve Statements

 

 

1.        Application Form

2.        Cardholder Agreement

3.        Vendor Non-Acceptance Form

4.        Dispute Form (“Statement of Questioned Item”)

 

 

            1.1  PURPOSE

 

The purpose of the Washburn University Procurement Card Program is to establish an efficient, cost effective method of making small dollar ($500 or less which includes all delivery and/or special handling charges) purchases within established usage limits. This program is designed to replace monthly purchase orders, most small dollar payment vouchers, and the use of personal funds reimbursed by payment vouchers. This program is designed to improve efficiency in purchasing low dollar goods and services for University use.  The card can be used for in-store purchases as well as mail, telephone or fax orders. Examples of target purchases intended for the program include:

 

           Office Supplies

           Subscriptions

           Reprints of Journal Articles (to U.S. companies)

           Maintenance and repair materials

           Day Planners

           Books

 

Purchases must be for University use. NO PERSONAL PURCHASES ARE ALLOWED. All cards are issued at the request of the department head. Card usage will be monitored and cards may be rescinded at any time for improper use.

 

This manual provides the guidelines which the procurement card may be used. Please read it carefully. Your signature on the Procurement Cardholder Agreement (see Appendix 2) indicates you understand usage of the procurement card and agree to adhere to the established guidelines. The Purchasing Office will issue the procurement card after completion of training and receipt of the signed agreement. You may begin using it immediately.

 

Record keeping is essential. Standard payment policies require retention of receipts and other documentation. As with any credit/charge card, you must retain sales receipts, invoices, order forms and receiving documents. In addition, a Procurement Card Transaction Log must be maintained to expedite reconciliation and approval.

 

No individual transaction, including shipping and handling, may exceed $500.00, however, each department/unit may set lower limits. Each card has also been assigned a billing cycle limit for total dollar amount of expenditures allowed in a billing cycle (30 days).

 

Some vendor types have been blocked from usage with the procurement card. If you present your card to any of these merchants, the transaction will be declined. If your card is declined, contact the Purchasing Office, ext. 2333 to determine if it was declined because of the merchant blocking or if you have exceeded the monthly cycle limit or the single transaction limit imposed on your card.  Examples of vendor codes that have been blocked are:

 

           hotels and motels

           restaurants

           airlines

           transportation

           caterers

           liquor package stores

           insurance services

           some service providers

 

            1.2  BENEFITS

 

The use of this Procurement card will:

Allow employees to obtain certain goods and services much faster and easier;

Sharply reduce paperwork and processing time in the employee’s department as   well as in Accounts Payable and Purchasing;

Enable employees to be more efficient and to focus on the value-added aspects of their jobs; and

Provide cost savings through consolidated payment (one monthly payment to UMB, versus multiple supplier payments).

 

                        Important benefits for suppliers include:

 

                        -Receiving payment in as few as three business days

                        -Elimination of invoicing and collection activities

 

            1.3 THE CREDIT CARD COMPANY

 

The University procurement card program is through UMB Bank (UMB).

 

Merchants are paid by UMB within three days of your business transaction. Please indicate to merchants that they MUST NOT invoice the University, in addition to the detailed charge receipt, as an invoice could result in duplicate payment. Request merchants to give detailed description of goods, not just “misc”. BE SURE TO REMIND THE VENDOR OF THE UNIVERSITY’S TAX EXEMPT STATUS WHEN MAKING A PURCHASE. The words “Kansas Sales Tax Exemption # KS11H26YC3” are printed on the face of the card.

 

Contact the Purchasing Office (ext 2333) if the vendor requests a tax exempt certificate.

 

 

            2.1  UMB

To report a lost/stolen card call 800-821-5184 (and Purchasing at ext 2333):

The cardholder must call UMB immediately upon discovering that the card has been lost or stolen. Help is available 24 hours a day. Also call the University’s Procurement Card Coordinator as early as possible at extension 2333. If necessary, leave voice mail.

 

Customer Service, 800-821-5184 for general assistance and information.

 

To dispute a transaction that has appeared on your statement:

Fax the “Charge Dispute” form (Appendix 4) to UMB at 816-843-2485.

                       Also, fax a copy to the Procurement Card Coordinator at 670-1114.

 

            2.2 WASHBURN UNIVERSITY PURCHASING DEPARTMENT

 

Procurement Card Coordinator

Mel Ragar

Director of Purchasing

E-mail: mel.ragar@washburn.edu               

Ph: 670-2333        Fax: 670-1114

            

Provides support and assistance to cardholders, campus departments, etc.; distributes/processes new card applications, processes changes in cardholder information (name, mailing address, increase or decrease in limits, etc.) schedules training, updates User’s Guide, distributes monthly credit card statements and other requests.

 

Your feedback regarding this program is important!  We need to know if you have concerns and we welcome suggestions for improvement. If you have any questions about the program or need additional information, please contact the Purchasing Office at ext. 2333.

3.       CARDHOLDER POLICIES AND PROCEDURES

 

            3.1 OBTAINING A CARD

 

 

1.      Complete an Application Form. Note that the Department or Area head must approve the application by signature. (Appendix 1).

2.      Forward the Application Form to the Purchasing Office, Morgan Hall, Room 235.

3.      The Purchasing Office will process the application, arrange for cardholder training, and  deliver the card during the training.

4.      Any changes needed can be made by contacting your department/area office.

 

            3.2 KEEPING YOUR CARD SECURE

 

Always keep your card in a secure place. You are responsible for the security of this card and the transactions made against it. The card is issued in your name and any purchases made against the card will be your responsibility. Cards and card numbers must be safeguarded against use by unauthorized individuals in the same manner you would secure your personal credit card.

 

Use of the card not in accordance with guidelines established may result in personal liability. Remember, you are committing University funds each time you use the procurement card. This is a responsibility that cannot be taken lightly.

           

            3.3 SALES TAX EXEMPTION

 

It is the responsibility of the cardholder to ensure that sales tax is not charged when making a purchase with the Procurement card. If you are charged tax in error you must request a credit from the supplier as soon as possible after discovering the error.

 

On the front of your Procurement card is printed:

                       “Kansas Sales Tax Exemption # KS11H26YC3.”

 

The University is usually exempt from ALL sales taxes, even when purchasing items from out-of-state suppliers because the application of sales tax is determined by the location of the buyer, not the seller. If you have an unusual circumstance, such as merchandise shipped directly to someone outside of Kansas, please call ext 2333 for assistance.

 

If a supplier requests proof of the University’s tax exempt status, please contact the Purchasing office, and a Tax Exempt Certificate will be sent to the supplier.

 

Please contact the Procurement Card Coordinator at 670-2333, if you need additional help.

 

            3.4 LIMITATIONS SPECIFIC TO YOUR CARD

 

The following limitations have been assigned to your Procurement card:

 

 

Single Purchase Limit                                            $500.00

(including shipping, handling, etc.)

Monthly Purchase Limit                                         Set by Department

No. of Transactions Daily Limit                              Unlimited or set by Department

No. of Trans. Monthly Limit                                    Unlimited or set by Department

(There is also a Merchant Category Code (MCC) restriction on all University Procurement cards that specifically restricts the purchase of automobile rentals, airline tickets, cash advances and hotels/motels.)

 

            3.5 LIMITATIONS ON ALL CARDS

 

Your Procurement card CANNOT be used to purchase the following items:

 

                        Advertisements for personnel recruiting

                        Alcoholic beverages

                        Capital equipment

                        Cash advances

                        Computer equipment

                        Construction/remodeling

                        Consultants and speakers fees/honorariums

                        Controlled substances (prescription drugs, narcotics, etc.)

                        Donations

                        Entertainment costs – ski tickets, tours, etc.

                        Ethyl alcohol  

                        Fines, late fees or penalties    

                        Food & meals

                        Foreign purchases

                        Fundraising costs

                        Gifts

                        Independent contractors

                        Interest/finance charges

                        Live animals

                        Lodging or housing

                        Memberships

                        Office candy, gifts, flowers, parties, etc.

                        Performers

                        Personal purchases (purchases must be for the use and benefit of the Univ.)

                        Radioactive isotopes

                        Student events, travel, tuition, scholarships or stipends

                        Telephone equipment or installation on campus (regular or cellular)

                        Travel (lodging, restaurants, airline tickets, conference registration)

                        Tuition for employees

                        Vehicle rental

                        Cards should not be used at the University Bookstore or Union

                        Do not swipe twice or split charges

 

             

            ADDITIONAL PURCHASING GUIDELINES

 

            3.6 AUTOMATIC RENEWAL

   

       3.7 UPDATING CARDHOLDER INFORMATION

                       

                  Contact the Purchasing Office (ext 2333) to update cardholder information.

             

            3.8 TERMINATION OF EMPLOYMENT

 

Your card remains the property of Washburn University and must be surrendered immediately upon termination of employment, or upon request for any reason by an authorized person (such as your supervisor or the Procurement Card Coordinator). Please take the card to the Procurement Card Administrator so that it can be cancelled and properly destroyed.

 

4.       HOW TO USE THE PROCUREMENT CARD

 

Please note that the cardholder is the only person authorized to make purchases using their card. Giving your card or card number to another person to make a purchase, or using someone else’s card, may result in disciplinary action (including, but not limited to, revocation of your card and/or termination of employment).

 

            4.1 PURCHASES

 

A. Follow proper internal procedures specific to your department to obtain authorization to make the purchase

 

B. Determine whether the Procurement card is the most appropriate tool to use for this purchase.

 

C. Be certain that the total amount (including all shipping, handling, postage, freight, etc.) will not exceed your card’s single purchase limit.

 

D. Determine that the price quoted is the best you can obtain.

 

E. Ensure that no sales tax is charged.

 

F. Obtain a receipt at the time of purchase.

 

G. To Ship Items: Remember to give the supplier your name, department name, phone number, and complete delivery instructions as follows if you are not picking up the goods:

 

1.      Recommended method: Have goods shipped directly to your campus address via UPS, Federal Express, or other method as suitable for the purchase. Have the supplier mark the package PCP (Procurement Card Purchase) and your name.

 

2.      If direct shipment is not possible, and a specific method not set up for your department, please use the following address:

Washburn Univ. Service Area

113 Morgan Hall

Attn: Credit Card Purch. by (your campus address and name)

1700 SW College Ave

Topeka, KS 66621

If this is not done correctly your goods may be returned to the supplier as undeliverable.

 

H. When receiving the goods, whether via direct delivery or through Receiving,   always retain all boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. The cardholder is responsible to inspect the goods upon arrival. Refer to Section 4.5 for instructions about returning an item.

 

I. Record the purchase on the transaction log, and place the receipt in a secure place.

 

             

            4.2   PURCHASES BY PHONE, FAX, MAIL OR INTERNET

 

A written record must be made when placing an order.  Store this record with the receipts.

 

Remember, the cardholder is the only person authorized to place the order. You may, when necessary, have someone else pick up the goods (the person picking up the items should only sign shipping or receiving papers, not the credit card slip).

 

PROCEDURE

 

Follow the applicable instructions for making purchases in person, including shipping/delivery. In addition:

 

A. When you call, state that you are from Washburn University and that you will be making your purchase on a VISA Procurement card.

 

B. Emphasize that the University is exempt from sales tax (see Section 3.3 for additional exemption information).

 

C. Record the name of the person taking the order, place the order, and give the supplier your Procurement card number and expiration date.

 

D. Give the supplier your name, department name, phone number and complete delivery instructions (as indicated in previous section).

 

E. Request that a receipt and packing slip be sent with the purchase. Retain this with your record of the purchase. A receipt may also be sent by email or fax.

                                   

                          FAX

 

Follow the applicable steps in section 4.1. Retain a copy of the order form and fax confirmation (if available) for your records. You are urged not to mail the original to the company, to prevent a duplicate order. If the company requires that the original be sent be sure to clearly mark it “confirmation: an order placed by fax”.

 

MAIL

 

Follow the applicable steps in section 4.1. Retain a copy of the order form and the address it was mailed to, and request that a receipt be sent to you for your records.

 

USING THE INTERNET:  Procurement cards may be used to make these types of purchases as long as care is taken in at least these areas:

 

A.     Make sure the business is a legitimate company.

B.     If supplying your card number via the web, be sure the web site is encrypted in an acceptable manner.

C.     As with other purchases, the cardholder is ultimately responsible for purchases made with their card and is therefore responsible to determine whether a web site is the most appropriate method to use to make a given purchase.

D.     Also, cardholders must follow any guidelines set within their department for internet purchases.

 

       4.3 RETURNS, DAMAGED GOODS, CREDITS

 

If goods purchased with a procurement card need to be returned the cardholder should work directly with the supplier. Here are some tips:

 

A. Always retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. Some items, such as software or fragile pieces, cannot be returned without the original packaging materials.

 

B.     Read all enclosed instructions carefully. Often a phone number and other instructions are included on the packing slip and/or receipt.

 

C.     Many suppliers require you to obtain a “Return Authorization Number” before they will accept a return. If you neglect to get this number when it is required the package may be refused and/or no credit issued to your account.

 

D.    In some cases there may be a restocking fee (usually a percentage of the purchase price). If the supplier is completely responsible for the error or problem you should not have to pay this, or any other fee. However if they are not fully responsible you may have to pay it. You may use the Procurement card to pay this fee as long as it does not exceed any of your limits.

 

E.     If you need help in packaging goods for return, limited assistance may be available through the shipping department within the University Service Area, 113 Morgan Hall.

 

F.      Lastly, make sure that the charge for the returned items:

1) never appears on your monthly statement, or

2) is credited properly.

 

If this does not happen refer to Section 5 Disputed Transactions for instructions   on how to resolve the problem.

5.1   DISPUTE OF STATEMENT ITEM

The cardholder is responsible for contacting and following up with the vendor on any erroneous charges, disputed items or returns as soon as possible. Most issues can be resolved this way.

 

If the cardholder is unable to reach agreement with the vendor, the next step is to contact the Purchasing Office at ext 2333.

 

The Purchasing Office may request the cardholder to complete a “Charge Dispute” form (Appendix 4) and fax (670-1114) or mail the completed form to the Purchasing Office. The dispute form will be forwarded to UMB for resolution with the vendor.

 

Items that appear on the monthly Procurement card statement from UMB may be disputed, as long as the disputed transaction is reported to UMB within 60 days after the transaction.

 

Disputed billing can result from failure to receive goods or materials, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. In the event of fraud notify the Purchasing Office (ext. 2333) immediately.

 

Documentation must be kept explaining each credit received for returns or exchanges.

 

If there is a charge that is not recognized by the cardholder, or another problem, the cardholder should submit a “Charge Dispute” form (Appendix 4) to the Purchasing Office. The dispute form will be forwarded to UMB for resolution with the vendor. During UMB’s investigation they will issue a credit to the Procurement card account in question for the disputed amount. When the investigation is complete you will be notified of the resolution. If you are not satisfied with this resolution, please contact the Procurement Card Coordinator immediately.

 

5.2 DISPUTE WITH SUPPLIER

 

If you have a problem involving a dispute with a supplier (such as you claiming that the item doesn’t work and the supplier claiming that it does), and you are unable to obtain satisfaction directly from the supplier, please notify UMB by submitting the “Charge Dispute” form (Appendix 4). Also notify the Procurement Card Coordinator. Be sure to describe the problem and all of the efforts you have made thus far in attempting to resolve it. UMB will assist you in every way possible. As above, if you are not satisfied with their resolution please contact the Procurement Card Coordinator.

 

        6.1 PROCUREMENT CARD STATEMENT

 

The department/area office is responsible for reconciling and approving the    procurement card statement and transaction logs. The Cardholder Statement will be sent to the cardholder monthly for reconciliation. A copy of the approved transaction log with all original receipts must be sent to Accounts Payable for audit within five (5) business days of receipt of the monthly statement.

 

The cardholder statements must be reviewed monthly to ensure that a receipt or other acceptable documentation supports each purchase. A record of card use (Procurement Card Transaction Log file) is also required to be maintained. The transaction log along with receipts, and/or paid invoices must be matched to the statement. If a receipt is missing, the cardholder must be immediately contacted to see if one has been received. If not, the vendor must be contacted and requested to provide a detailed invoice, credit memo, or an adequate substitute. Have the vendor FAX a copy. Please remember to certify and sign it as valid and the only copy you received. Verify again for sales tax on each purchase and request a credit, if needed. Failure to have the appropriate supporting documentation, authorization signatures, etc. for each statement may result in revocation of the card. Each department will be audited for compliance to this and all other procedures on a regular basis.

 

Before approving the posted transaction, check the following information:

 

1.      Vendor Name: it must agree with the credit paid invoice or receipt slip. If the vendor name does not agree, check to make sure there is not another transaction it applies to.

2.      Do not approve a transaction unless the cardholder has an appropriate receipt.

3.      Check to make sure the “Ship to” address on the documentation is correct. If not, it should be investigated.

4.      Note partial shipments on the transaction log.

5.      Note any sales tax charged. Work directly with the vendor to obtain a correction.

 

Once the statement has been reconciled with the supporting documentation and the transaction log, for each entry on the statement, a copy of the transaction log must be sent to Accounts Payable. Each department/unit is responsible for allocating purchases to the appropriate funding and account number.If a detailed invoice cannot be obtained, a detailed itemization of the charges must be attached, backed up with something from the vendor showing the charge amount. The detailed itemization can be in the form of a signed list. The transaction log must be sent to Accounts Payable within five (5) business days of receipt of cardholder statement. Timing is extremely critical. Accounts Payable must audit ALL transactions for ALL cardholders and compile the information to pay the bank within three weeks of the statement date. If an item is entered on the transaction log, but does not appear on that month’s statement, that transaction must be copied to the next month’s statement, until the transaction appears on the statement.

 

If it appears an inappropriate purchase is made, the employee will be asked to supply a justification. If the justification is insufficient, appropriate measures should be taken. In addition, steps should be taken to return the goods or the employee should pay the vendor directly, or the department should use private funds for payment and have a credit issued to the procurement card.

 

The statement should be kept in departmental/area files. DO NOT PROCESS PAYMENT. Accounts Payable will receive a central statement for the University and will process all payments.

 

       6.2            WHO CAN APPROVE STATEMENTS

 

After the cardholder has determined that the appropriate receipts and/or other supporting documentation is on file for each purchase on a statement, the cardholder and the Department Head or designee must sign the Transaction Log in the spaces provided.