Procurement Services
Corporate Purchasing (P-Card) Card Training
Internal review only. Last updated October 2012.
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Why are you here?
You are seeking either…..
First time application to the program as a cardholder or
reviewer
Annual recertification
You are responsible for ensuring that your
purchases are in compliance with state
and university policies and procedures.
Purpose of this
training
This training is meant to protect you, VCU, and
the Commonwealth of Virginia from negligent
or fraudulent misuse of the P-Card.
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Get to know the team
VCU Program Administrators
Procurement Services
– corpcard@vcu.edu
– Thelma Stockton
Corporate Cards Program
Manager, x84232
– Lena Massie
Corporate Cards Associate
Manager, x83407
Bank of America
Card Provider
– Customer Service,
1-888-449-2273
– Monthly statements,
http://payment2.works.
com.
Always contact the Program Administrators with
questions before reaching out to Bank of
America. We will probably be able to find you an
answer quicker.
V i r g i n i a
C o m m o n w e a l t h
Preview of the training session
Agenda
Learn the P-Card basics
What is the P-Card?
Cardholder’s and Reviewer’s responsibilities
The importance of compliance
Use the P-Card as a Cardholder
– Obtain and secure a card
– Make a purchase
– Special card considerations
Online Reconciliation
Use the P-Card as a Reviewer
Summary
U n I v e r s i t y
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
P-card Basics
WHY do we have the P-Card?
To streamline the procurement process for small dollar goods and
services required for business purposes only.
• Reduces paperwork
• Improves efficiency
• Speeds up payment to suppliers
WHO is eligible to receive one?
Employees approved by their Supervisor are eligible. Cards are
issued with the Cardholder’s name. Several employees within a
department can have cards.
WILL this appear on my personal credit reports?
No. The card is not a personal liability card.
WHEN does it expire?
Two years from the date of issue.
P-Card basics / What is the P-Card?
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Learn your responsibilities as a Cardholder
Cardholder responsibilities include, but are not limited to
1
Ensuring purchases comply with VCU
policies and procedures, including
allowable/non-allowable expenditure
2
Ensuring transactions are within
established transaction limits and monthly
credit limits
3
Processing proper monthly online
reconciliation
P-Card basics / Cardholder’s and Reviewer’s responsibilities
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Ensure Reviewer responsibility
The Reviewer is equally responsible for ensuring compliance of the P-Card.
What are you looking for?
 All purchases are valid business expenses
 Reconciliation is supported with sufficient
documentation, including original receipts
Monthly
Responsibilities
 All orders are in compliance with procurement policies
 There are no split charges and limits are not exceeded
 Merchandise purchased with the card has not been
returned for store credit
 State sales tax was not charged. If so, the refund was
processed and documented.
P-Card basics / Cardholder’s and Reviewer’s responsibilities
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Consequences of misuse
Failure to comply with established policies and
procedures may result in a suspension or
revocation of the Cardholder’s card privileges
and/or employee’s system access to eVA, even
for first offense.
Deliberate or recurring noncompliance or
failure to perform required duties may
constitute cause for disciplinary action up to
and including termination of employment.
Please understand the importance of compliance!
P-Card basics / Importance of compliance
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Know what you can and cannot purchase
VCU is a nonprofit State-assisted
institution and its expenditures receive
a more substantive review because it
operates in the public sector.
But it’s your department’s
money, why do we care?
Therefore, VCU must ensure that all
expenditures are necessary in the
fulfillment of its stated mission and are
incurred at a reasonable cost.
Understanding the definition of a Business Expenditure will help you
make smart purchasing decisions.
Business Expenditure = an expenditure that is directly related to the operation of
a functional area in the fulfillment of its stated mission or objective as part of the
University
P-Card basics / Importance of compliance
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Know what you can and cannot purchase (cont…)
Common items that have special funding rules……
Prohibited
Personal items
Restricted
Fraud
Catering/Food
Local funds only
Flowers
Rentals
Travel
Coffee for
department use
Gas
Hotels
Gifts
Gift cards, or any
other cash
equivalents
P-Card basics / Importance of compliance
Alcohol
Charges
associated with
staff functions
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Know what you can and cannot purchase (cont…)
Common items that have special funding rules……
Prohibited
Card will not
restrict
purchase, so
responsibility
is on the
cardholder to
know policy.
P-Card basics / Importance of compliance
Restricted
Controls in place to
restrict the purchase.
Local funds only
Requires the use of
local funds with
appropriate approval.
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Know what you can and cannot purchase (cont…)
Therefore, ALWAYS review the
“Allowable/Non-Allowable Expenses” policy
What are you looking for?
1. Check that your
purchase is allowable
2. Ensure that your
purchase is allowable for
the funding source you
are using
3. Confirm that appropriate
approvals are obtained
and filed with your
statement
P-Card basics / Importance of compliance
Allowable Expenditure Chart
http://procurement.vcu.edu/i-wantto/make-a-purchase/know-what-you-canand-cannot-buy/allowable-businessexpenditure-chart/#.UIFdp2-HKOM
Non-Allowable Expenditure Chart
http://procurement.vcu.edu/i-wantto/make-a-purchase/know-what-you-canand-cannot-buy/non-allowableexpenditures-chart/#.UIFfKG-HKOM
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Agenda
Use the P-Card as a Cardholder
– Obtain and secure a card
– Make a purchase
– Special card considerations
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Obtain and Activate your card
Complete training and
pass test in Blackboard.
Reviewer must pass or
have passed test as well.
Send a completed Employee
Agreement form to the VCU
Program Administrators. Form
must be signed by you, your
Supervisor and Reviewer.
Activate by calling
the number on the
sticker attached to
your card. You will
have to provide the
16 digits of your
card number.
Cardholder / Obtain and secure a card
The card will be mailed to
the Cardholder’s
departmental PO Box
within 7-10 business
days.
Give your verification code,
which is 236 followed by your
6-digit date of birth (for
example, a person born on
Dec. 3, 1985 will enter
236120385).
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Secure your card
Secure your card at all times.
Never make a photocopy of your card and never fax, mail
or email your full account number. This is especially
important when placing orders.
Do not lend or share your card with anyone. Card sharing
will result in revocation of your card. Other employees
should apply for a card if they plan to purchase goods or
services.
When purchasing via the internet ensure that you
are using a Secured Socket Layer (SSL) Version
2.0 or greater. Secured sockets are identified by
https:// in the address field. The “s” identifies it as
a secure socket.
Cardholder / Obtain and secure a card
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Determine your vendor
VCU has a 40% expenditure goal for utilization of Small,
Woman-Owned and Minority-Owned (SWaM) businesses.
VCU is specifically
committed to
increasing
expenditures with
Women-Owned
and MinorityOwned
businesses.
Cardholders are strongly
encouraged to purchase from
SWaM vendors when
practicable to assist the
University in reaching its 40%
SWaM expenditure goal.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Understand the charge to your department
Ensure your purchase is charged to the correct index code.
Each card is associated with one index code. The card defaults to the index
code that is submitted on your P-Card Employee Agreement form.
Changes to the index code prior to the charge must be
handled through Program Administrator.
Changes to the index code after the charge should be
handled via a Journal Voucher by the department.
The account number 620002 will be used for recording expenditures
except those that are designated to a different account number based on
the merchant category (e.g. office supplies, printing services, etc.).
Who pays the bill  The total current balance due on the statement
will be processed for payment by Accounts Payable.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Request multiple cards
When should you request multiple cards?
If you will be routinely purchasing items from different index code
accounts.
Cardholders can have up to four cards for various index
codes.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Request multiple cards (cont…)
It is generally best
practice to charge
expenses to the
appropriate index code
from the point of
purchase, as opposed to
using a journal voucher
to reconcile later.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Use your card to order goods
•
To give your order to a vendor, you may:
web
•
call
person
fax
email
mail
But to give your card number to a vendor, you may:
web
Cardholder / Make a purchase
call
person
fax
email
mail
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Ensure no taxes were charged
Remind the vendor that as a State agency, VCU is exempt from
Virginia sales tax charges.
•
•
•
•
Provide the vendor with the tax exempt number located
at http://www.controller.vcu.edu./uco/idnumbers.htm.
Upon request, provide the vendor with a copy of VCU’s
tax exemption certificate form.
The tax exemption form can be found on the Financial
and Reporting website at
http://www.controller.vcu.edu/uco/st12.pdf.
For internet orders, use comment fields to note VCU’s tax
exempt status and the tax exemption certificate number.
You must make every effort to obtain a refund from the
vendor if Virginia sales tax is charged.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Enter order into eVA
•
All non-exempt P-Card purchases must be
entered into eVA as PCO’s (Purchase Card
Order).
•
Some transactions are exempt from eVA.
•
It is the Cardholder’s responsibility to
ensure transactions are entered into eVA
If a purchase is not made using eVA AND the good is not on the exemptions
list THEN you still have to enter the confirming order in eVA.
VCU has a state requirement to enter a certain
% of University transactions into eVA.
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Enter order into eVA (cont…)
Certain items are currently exempt from eVA. You do not need to
enter P-Card orders into the system if the good purchased
falls on this list.
Frequently purchased items from the list:
Over the counter
goods (purchased
in store)
Conference
registration fees
Express delivery
services
All goods
purchased with
grant funds
For a complete list, see the link:
http://procurement.vcu.edu/i-want-to/use-eva/view-exemptionslist/#.UIFcx2-HKOM
Cardholder / Make a purchase
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Request a higher limit
Most P-cards are issued with a standard limit of $5,000
per month and $2,500 per transaction, unless
otherwise noted on the Employee Agreement Form.
If you require a higher or lower monthly or transaction
limit, request that your P-Card Reviewer email the Program
Administrators with approval. The highest transaction limit
available is $5,000 per purchase. These limit changes are
available on a temporary or permanent basis. The limits are
not intended to restrict your spending.
It is very important that you do not under any circumstance,
authorize any charges over the card’s limits. Authorizing a
vendor to process separate transactions (split purchases) in
order to exceed your limits will result in revocation of your
card.
Cardholder / Special circumstances
P-CARD
K
V i r g i n i a
C o m m o n w e a l t h
Request a higher limit (cont…)
Helpful hint
Be sure you know your
transaction and monthly limit
to avoid charges being
declined. You can check
your limits by logging into
Works.
Cardholder / Special circumstances
U n I v e r s i t y
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Change your information
Whenever a name is changed due to marriage, divorce, etc. you must
provide legal proof to Human Resources before the Program
Administrator can authorize the change.
When an index number changes the P-Card Program Administrator
must be notified to change the default index number on your card.
Ex: To change your grant index number
when a new grant number is assigned.
Cardholder / Special circumstances
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Get a credit or make a return
If you find an error or need to make a return,
contact the vendor immediately to resolve.
The vendor must apply the credit back
to your P-Card. Do not accept “store
credit.” Contact the Program Administrator
for guidance if the vendor will only
authorize a store credit.
If you and the vendor cannot resolve an issue regarding a credit
or return, contact the Program Administrator.
Be sure to document all communication with the vendor, including:
• Name and title of the individual you spoke with
• The date and time of communication
• Notes on the discussion
• The vendor’s suggested course of action.
Cardholder / Special circumstances
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Cancel your card
How do I cancel my card?
Email the Program Administrator to cancel your card
and give it to your Supervisor to cut-up and discard
Why would I need to cancel my card?
– Termination
– Change/move to a different department
– As requested by the Program Administrator
What do I do if my card is lost or stolen?
Immediately contact Bank of America and Program
Administrators
Cardholder / Special circumstances
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Learn the grounds for card suspension
The Program Administrator and Bank of America may
suspend cards if:
There is a history
of abuse
Cardholder / Special circumstances
Cardholder is on
extended leave
such as disability,
medical, etc.
Cardholder is a 10 month
employee. The card
may be reinstated upon
return to VCU.
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Special procedures for goods over $2K
Equipment or other tangible items (e.g. furniture or computers)
costing $2,000 or more must be reported to the Office of
Property Management.
1. Complete the “Addition to
Equipment Inventory” form at
http://www.controller.vcu.edu/finreport
ing/Addequipinventory.pdf and submit
it to Property Management.
2. Retain a copy of the completed form
with your P-Card statement.
Cardholder / Special circumstances
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Agenda
Online Reconciliation
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Learn the basics of Online Reconciliation
In February 2011, VCU implemented an Online
Reconciliation program for Cardholders and Reviewers
that requires both to log into the Bank of America Works
application to electronically sign off on transactions.
Online Reconciliation
•
Both Cardholder and Reviewer must complete by the closing date
of the following month’s billing cycle.
•
The VCU Purchasing Department is no longer requiring the
completion of a log sheet.
•
Bank of America is no longer sending paper billing statements.
Cardholders will receive a system generated Department
Transaction Report for reconciliation purposes two days after cycle
close.
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Process Online Reconciliation
Step by step process
Retain all original receipts and supporting documentation
Reconcile the Department Transaction Report
Sign-off on transactions (electronically)
Submit to your Reviewer
Give all original documentation to your
Reviewer
Online Reconciliation
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Process Online Reconciliation (cont…)
For the detailed procedures on Online
Reconciliation, please see the
Procurement Services website.
http://procurement.vcu.edu/i-wantto/use-p-card/process-onlinereconciliation/#.UIFjVW-HKOM
Online Reconciliation
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Dispute a charge
Pricing discrepancies between the supporting documentation and the
Department Transaction Report must be documented and resolved.
Dispute any unauthorized or forced charges by the
vendor. If you are unable to resolve a dispute with the
vendor, contact the Program Administrators. Provided the
notification is made within 60 days of the charge, Bank of
America will investigate and assist in resolving the dispute
on the cardholder’s behalf.
If any of those charges appear to be fraudulent, contact the
Program Administrators and Bank of America immediately.
Online Reconciliation
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Agenda
Use the P-Card as a
Reviewer
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
What to expect as a Reviewer
As a Reviewer, you will:
Take the mandatory training
Report the following to the Program Administrator in a timely manner
- Non-compliance
- Potential fraud
- Changes to Cardholder’s name
- Requests to increase/decrease limits
- Changes to accounting information (i.e., index code)
- Card cancellations and card destruction
Reinforce to Cardholder(s) that VCU is liable to Bank of America for all
charges and that their card and department are subject to post-audit
review of transactions.
Monitor transaction/monthly limits for appropriateness
Reviewer
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Approve Online Reconciliation
At the end of each billing cycle, collect the supporting documentation
from the Cardholder. Do not sign off on transactions in Works until
you have verified that the transactions are valid business
expenses that comply with VCU policies and procedures.
What to look for?
Ensure that amounts
match between the
Dept. Transaction
Report and supporting
documentation
Ensure all
transactions are
accounted for
Validate
receipts are
original receipts
Vigorously question
any receipt which does
not 100% appear to be
an original receipt
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Approve Online Reconciliation (cont…)
After reviewing the full
reconciliation, log into Works
and sign off on the
Cardholder’s transactions to
replenish their credit limit
prior to the close of the
next billing cycle.
The statement billing cycle can be found at:
http://www.doa.virginia.gov/General_Accounting/Charge_Card/Pur
chase_Charge_Card_Main.cfm
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Ensure goods were actually delivered
By approving a transaction, the Reviewer is
acknowledging that he/she has seen the items and
can verify receipt.
If the reviewer did not see the
items, then supporting
documentation, such as an email
from someone other than the
cardholder, must be obtained.
When performing Banner
reconciliation, ensure that charges
reflect purchases approved in
Works.
Reviewer
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Ensure transactions were entered into eVA
Ensure all non-exempt
transactions are entered
into eVA as a PCO.
Reviewer
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Keep your supporting documentation
You must retain all supporting documentation with the reconciliation
for a period of at least three fiscal years.
These records are subject to
review by VCU officials and
auditors.
Do not send Department Transaction
Reports and/or supporting documentation to
Accounts Payable. The bill is submitted
electronically by Bank of America and
automatically paid by Accounts Payable.
Reviewer
V i r g i n i a
C o m m o n w e a l t h
Agenda
Summary
U n I v e r s i t y
V i r g i n i a
C o m m o n w e a l t h
U n I v e r s i t y
Watch out for common mistakes
The following are the most common mistakes made by the
Cardholder and/or Reviewer:
The reconciliation is not completed timely
Failure to enter non-exempt P-Card transaction in eVA
The card number is photocopied, emailed or faxed
Virginia sales taxes are paid to vendors
The card is shared with a Supervisor and/or co-workers
Receipts are missing
Multiple orders are placed in order to circumvent the
established limit
Appropriate approval is missing for expenditures that require
special approval
Summary
Congratulations!
You have completed the training portion of the on-line Corporate
P-CardTraining Program.
To complete the test click the back tab and select the
Corporate P-CardTest.