DIVISION OF FINANCE
Committed to Service Excellence
Payment Card Approval Procedure
Step 1. Bookkeeper gets receipts from cardholder &
reallocates transactions in CitiDirect
Step 2. Bookkeeper runs the Expense Report in CitiDirect
and reconciles receipts to the report
Step 3. Cardholder reviews and approves Expense Report (this is
considered a best practice, but is not required.)
Step 4. Department approver reviews and approves
Expense Report
Step 5. (State funded transactions only) Bookkeeper
submits supporting documentation to FMO for audit
Step 6. Bookkeeper reconciles Expense Report with
FAMIS statement and then retain records according
to retention schedule
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Step 1 Bookkeeper gets receipts from
cardholder & reallocates transactions in
CitiDirect
• Bookkeeper gets receipts from cardholder daily, weekly or
monthly (least preferred) and logs into CitiDirect to do
reallocation.
– Bookkeeper should review receipts for: verification of goods
or services received, tax, detail receipts, alcohol purchases,
unallowable purchases, purchases that must be reallocated.
• If department still wants to require a log, verify log is turned in with receipts and
verify that for each log entry there is a detailed receipt.
– Additionally, bookkeeper should ensure items that require
reallocation are complete and charged to appropriate account
and object code.
– See Reallocation Checklist at
http://finance.tamu.edu/fmo/pc/docs/reallocation-code.pdf
– See Reallocation Instructions at
http://finance.tamu.edu/fmo/pc/training/CitiDirect_SingleAllocation.pdf
• Reallocation deadline in CitiDirect is usually around the 20th of
each month.
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Step 2 Bookkeeper runs Expense Report in
CitiDirect and reconciles receipts to the
report
• Do not run this report before statement date
• Usually the statement date falls on the 3rd of each month, but if
the 3rd falls on a weekend, it will be the preceding Friday
• It usually takes the bank a couple of days to post all
transactions after statement date. So we would suggest
you to run this report around the 6th of each month, if all
reallocations have been performed.
• For instructions on how to run this report in CitiDirect
please see the following link
http://finance.tamu.edu/fmo/pc/training/CitiDirect_RunningReports.pdf
• The following slides are an example of the report and
instructions on how to read the report
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Review transaction detail
under “Card Transactions”
section
Transaction Date
and Posting Date
Vendor Name
Account Number
Object Code
Monthly transaction
total amount
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“SIGNATURE”
“SIGNATURE”
Section for cardholder
(considered best practice, but
not required.)
Section for Approver
Required
Step 2 Scheduling Expense Report
• Bookkeeper can schedule to automatically run the Expense
Report in CitiDirect instead of manually running report every
month, see the following link for instructions on running this
report
http://finance.tamu.edu/fmo/pc/training/CitiDirect_RunningReports.pdf
– An email will be sent each month when the report is available
to download or print from CitiDirect.
– Please be sure the date selected to run the report each month
gives enough time to do the reallocations.
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Step 2 Bookkeeper runs Expense Report in
CitiDirect and reconciles receipts to the
report
• Bookkeeper needs to match receipts received from
cardholder with Expense Report to ensure all
transactions are accounted for and all receipts are
present. Any items on the report for which cardholder
does not have receipts could be fraudulent items,
duplicate charges, non-delivery items or disputed
charges, etc.
• Bookkeeper should also note any receipts received from
cardholder that are not on the report as reconciling items
• Please note any reconciling items at the bottom of the
Expense Report then sign and date as the reconciler.
•
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If the transaction log will still be required by the department, then must
reconcile the transaction log to the Citibank statement, printed as discussed
prior or received via mail. See the following slides for information required on
the log if the department will continue to require log.
Note any reconciling items at
the bottom of the report, sign
and date as the reconciler
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Default FAMIS
account number
Name of Cardholder
Statement Date
Date goods
were ordered
Name of vendor,
vendor ID is not
required
General description of the
goods or service to be
purchased
Date
goods
were
received
Amount to
be spent
with this
particular
vendor
If there is a purchase on the statement with no receipt
or a receipt not listed the on the log, note it as a
reconciling item on the log and explain why as a line
item here
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Account and
object code
to reallocate
to in
CitiDirect
If the card is
used by
someone other
than cardholder
for this particular
purchase list
name here
Bookkeeper
must initial and
date to verify
receipts have
been reconciled
to log and
statement
Step 3 Cardholder reviews and approves
Expense Report (considered best practice,
but is not required.)
• Cardholder should review transactions and any outstanding
transactions (listed on the Expense Report) to verify that they
are appropriate purchases and made by the cardholder or
approved to be made by the cardholder.
• All transactions on the Expense Report are the responsibility
of the cardholder (name listed on the card).
• Cardholder signs the Expense Report , see following slides.
•
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If the department continues to require the transaction log, the cardholder
must review and sign the transaction log to verify transactions as stated
above.
Cardholder reviews the report to verify
transaction detail
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After verifying all transactions
cardholder sign the report
(considered best practice, but not
required.)
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If the department continues to use
the transaction log, it must be
reviewed and then signed and dated
by the Cardholder here.
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Step 4 Department Approver reviews and
approves Expense Report
• The approver must review the purchases to verify:
– Purchases are within purchasing, payment card program and
disbursement guidelines.
– Account and object codes are correct, according to required
reallocation of certain expenditures
– Card sharing log was turned in as documentation, if card
sharing occurred.
– That the reconciliation was done timely (prior to reallocation
deadline) and initialed and dated by the reconciler.
– Signed by the cardholder and dated (considered best practice,
but not required.)
– Documentation of the expenses is complete to ensure
compliance with the guidelines stated above.
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Approver reviews transaction details to verify all purchases
have been approved
Approver signs the report
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If the department will require the cardholder to continue
using the log, then the approver must sign and date here.
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Step 5 (State funded transactions only)
Bookkeeper submits supporting documentation
to FMO for audit
• State requires Accounts Payable to audit all state
transactions before they are submitted to the state
• Bookkeeper submits all state transaction backup (receipts
and signed Expense Report) to FMO for audit by 5:00 pm of
the reallocation deadline date (usually the 20th of the month)
– If the department will continue to require a log from their cardholders,
then it must be submitted along with the receipts and Expense Report
• The supporting documentation should be sent as rush in a
red envelope and addressed to Payment Card MS 6000.
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Step 6 Bookkeeper reconciles Expense Report
with FAMIS statement and then retain records
according to retention schedule
• Bookkeeper reconciles the monthly FAMIS statement to the
Expense Report (or log if using log instead of the Expense Report) to
verify that the amount posted to your FAMIS account(s) is the
amount that you charged on your payment card within 30 days
of the FAMIS statement date.
• After reconciliation is complete, bookkeeper retains records
(Expense Report or log and statement along with receipts)
according to the retention schedule. State requires that we keep
these on file for the current fiscal year plus 3 fiscal years prior.
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