UO Procurement Card (PCard)
Policy and Procedures
Training
Purchasing and Contracting Services
09/19/2013
OVERVIEW
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Program Background
Program Advantages
Terms and Definitions
Applying for a PCard
Making a Purchase using the PCard
Authorized PCard Uses
Non-Chargeable Account Codes/Purchases
Purchase Documentation
Reconciliation of Charge Receipts
2
OVERVIEW (cont.)
• Termination/Separation - PCard User, Card Custodian or
BA
• Adding/Changing- PCard User, Card Custodian or BA
• Account Information Update
• Problems with your PCard
• Billing Errors
• Transaction Disputes
• PCard Control and Security
• Monthly Transaction Review
• PCard Violations/Sanctions
• Current Contacts for PCard Inquires
3
PROGRAM BACKGROUND
• OUS (Oregon University System) has established a PCard
Program.
• The PCard Program is administered by the OUS and is
implemented at the institution level.
• U.S. Bank issues PCards to UO campus departments. Each
PCard is assigned to a department Card Custodian.
• The PCards may be used to purchase goods and non-tax
reportable services (with exceptions) for the institution.
• PCard purchases shall be made in accordance with
established purchasing rules and policies.
• Policy OUS – 2/1/08, UO – 7/1/08, updated 9/16/13.
4
PROGRAM ADVANTAGES
• This program provides for the rapid acquisition
of primarily low dollar items, (less than 5K or
10K for Team Cards).
• Is designed to promote purchasing efficiency,
flexibility, and convenience.
• Reduced time, paperwork and handling costs
along with a more rapid and efficient receipt of
goods.
• Traditional requisition payment cycle is greatly
reduced.
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Card User
TERMS AND DEFINITIONS
Card User: An individual authorized to procure goods
and/or services with a PCard of a department or division
of an institution. Specific PCard Program responsibilities
include but not limited to:
Specific Card User responsibilities:
• Checks PCard in and out via written documentation.
(Not required for PCards with a single authorized
Card User.)
• Secures the PCard and account number when in
Card User’s possession.
• Makes PCard purchases in compliance with Program
Policy and Procedures.
NOTE: The Budget Authority cannot be a Card User.
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Card
Custodian
TERMS AND DEFINITIONS
(cont.)
Card Custodian: The individual who is responsible for training
department staff, safeguarding the PCard of a department or
division of an institution, maintaining complete and accurate records
of PCard use, and preparing reconciliations between the documents
supporting charges on the PCard and the statement of charges
received from the PCard vendor in compliance with institution and
OUS policies. Card Custodian is not an automatic Card User.
Specific Card Custodian responsibilities:
• Manages physical custody and security of the PCard and
account number.
• Ensures cards with multiple Card Users are checked in and out
via Multiple User Log.
• Maintains complete transaction records.
• Reconciles monthly statement of PCard transactions.
• Provides signature on monthly statement indicating final
approval of monthly reconciliation.
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Card
Custodian
TERMS AND DEFINITIONS
(cont.)
Specific Card Custodian responsibilities cont:
• Trains all authorized Card Users.
• Maintain records of department training.
• Notifies Program Administrator of any changes to
Authorization Agreement.
• Resolves problem purchases/disputes.
• Communicates all necessary information with Card Users
including violations.
• Ensures compliance with UO PCard Policy and
Procedures.
• Monitor department PCard transactions for appropriate
use and potential fraudulent activity.
• Journal Voucher all expenditures quarterly (recommend
monthly) to appropriate account from 28995 (39546 for
Team Card).
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Budget
Authority
TERMS AND DEFINITIONS
(cont.)
Budget Authority A UO dean, director, division or department head
who is responsible for the budget of the department or division of
UO that has authorized one or more PCards for the purchase of
appropriate goods and/or services. Budget Authority cannot be a
Card User. Budget Authorities are accountable for the following:
Specific Budget Authority responsibilities:
• Making sound business decisions based on financial
resources allocated to the unit.
• Ensuring that financial matters are conducted in
accordance with sound business practice, generally
accepted accounting principles, and in compliance
with applicable laws, regulations and procedures.
NOTE: The Budget Authority cannot be a Card User.
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Budget
Authority
TERMS AND DEFINITIONS
(cont.)
Specific Budget Authority responsibilities cont:
– Maintaining and reviewing adequate records that document
decision making, in accordance with Program requirements and
good judgment.
– Ensuring that any delegation of authority, if allowed, is
judiciously made, formally documented and communicated to the
appropriate offices at the UO.
– Specific Program responsibilities include but not limited to:
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•
•
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a. Authorizes by signature initial PCard application.
b. Identifies Card Custodian and Card Users.
c. Reviews Card Custodian PCard transactions (unless delegated).
d. Reviews monthly reconciliation and monthly statement and signs
the monthly statement.
• e. Ensures overall compliance with Program policy and procedures.
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Program
Administrator
TERMS AND DEFINITIONS
(cont.)
PCard Program Administrator: The individual who is
responsible for the administration of the Program of an
OUS institution/the Chancellor’s office. Program
Administrator is responsible for ensuring that the
institution PCard policies are compliant with the OUS
policy, that the policies established by the institution are
implemented, and that the PCard procedures are being
followed. Delegates Program duties as necessary.
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TERMS AND DEFINITIONS
(cont.)
• Statement of Account: This is the monthly listing of all
account transactions, issued by the bank directly to the
Card Custodian.
• Single Purchase Limit: A dollar limitation for an
individual purchasing transaction,(5K currently or $10K
for Team Cards). Transactions cannot be split to avoid
this limit.
• Credit Limit: A dollar limit on credit card charges per
billing cycle established for each PCard. This dollar limit
may vary from card to card.
• Vendor: A company from which a cardholder is
purchasing material(s) and/or minor equipment.
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APPLYING FOR A PCARD
• Submit a **NEW** PCS PCard Intake
Sheet to pcard@uoregon.edu requesting a
new account.
• In response to the request, PCS will
provide VISA Card application.
• The application is completed, read, and
signed by the Card Custodian and
approved by the Budget Authority.
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APPLYING FOR A PCARD
(CONT.)
• Return original application to PCS via
campus mail. PCS submits the application to
U.S. Bank requesting a PCard.
• PCS will notify you when your PCard arrives,
usually seven business days.
• The Card Custodian needs to personally pick
up the PCard and sign to verify that they
received the PCard.
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APPLYING FOR A PCARD
(CONT.)
Authorized Card Users:
• The Budget Authority designates the Card Custodian and
authorized Card Users on a PCard Authorization
Agreement signed by all involved in the account.
• **NEW** PCard Authorization Agreement – check all of the
boxes that apply to the role of each individual involved in
the account.
• Submit the fully signed PCard Authorization Agreement
along with a PCS PCard Intake Sheet to PCS via email to
pcard@uoregon.edu.
• The PCard Program Administrator must approve the
PCard Authorization Agreement before it is effective.
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MAKING A PURCHASE
• Used for purchases of goods less than $5,000 or $10,000
for Team Cards.
– NOTE: Although the purchase amount will not mandate
the solicitation of competitive quotes, it is campus policy
to seek competition for the lowest price and best value
when ever you make a purchase.
• Backordering of Goods:
• Backordering is allowed as long as charges for items
do not occur until the goods are shipped.
• Goods may be charged to the PCard except as prohibited
by current UO Purchasing and Contracting OAR’s, OUS
and UO PCard Policy and Procedures.
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AUTHORIZED USES
• The following is a partial listing of typical uses:
• Reference materials such as books,
particularly those purchased from another
country due to exchange considerations.
• Software.
• Common Carrier travel fares.
• Conference hotel lodging (deposits only).
• Car rental reservations (not payments).
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AUTHORIZED USES
(CONT.)
• Office supplies.
• Teaching and research supplies.
• Materials for minor repairs (Not the
servicing/repairing itself).
• Non capitalized furniture/equipment.
• Conference registration (not entertainment
or food).
• Allowable dues and memberships.
• Subscriptions to newspapers, journals and
periodicals.
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NON-CHARGABLE ACCOUNT CODES
- TRAVEL
• Use of the PCard is PROHIBITED for travel costs (39000 account
codes) with the exception of conference hotel lodging (deposits
only), rental car reservations and common carrier charges, such as
airline, bus and train fares (does not include taxis and airport
shuttles).
Prohibited Account Codes:
• 393xx-398xx: Travel.
• 28612: Hosting Groups and Guests.
• 28610: Entertainment.
• The PCard may not be used for food purchases or at restaurants.
• The PCard may not be used to purchase gas if it is associated with
travel; however, it MAY be used to purchase gas for operating
equipment.
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NON-CHARGABLE ACCOUNT CODES
– CAPITAL OUTLAY
• For other than library purchases (account code
40190), use of a PCard is PROHIBITED for capital
outlay (40xxx account codes) due to fixed asset
inventory recording requirements.
– NOTE: **NEW** Account code 40199 Construction in
Progress (Equipment) – may use PCard but must
complete “Intent to Construct Capital Equipment” and
submit to Business Affairs and Purchasing and Contracting
Services prior to purchase – see Section 3.4.3 of the UO
PCard Policy.
• High Risk items must be reported to Property
Control.
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NON-CHARGABLE ACCOUNT CODES
– 1099 REPORTABLE
• Use of a PCard is PROHIBITED for the following
account codes due to 1099 and W-2 tax reporting
requirements.
• These account codes are for tax reportable services
that are performed by an outside vendor – see
Section 3.4.4 of the UO PCard Policy. These
services are made up of labor cost and/or labor and
material cost.
– NOTE: **NEW** Blanket Exemption for certain tax
reportable transactions– Section 3.4.4 Note 1 of the UO
PCard Policy.
– Incorporated Vendor Exception List.
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NON-CHARGABLE ACCOUNT CODES
– 1099 REPORTABLE (cont.)
• Moving Costs (of new employee’s)
• Maintenance and repairs (23501, 23502, 23503,
23504, 23510, 23511, 23512, 23530 and 23531).
• Fees and Services performed by others (245XX25199 account codes)(1099 reportable).
• Purchases involving the following account codes:
• 20168 and 20169 Awards and Prizes Guest
speakers or employee recognition (reportable).
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NON-CHARGABLE ACCOUNT CODES
– 1099 REPORTABLE (cont.)
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21008 Animal Care.
21070 Agricultural Services.
23080 Utilities/Maintenance - Non-Employee.
24001and 24002 Equipment - Rental and
Leases - includes tables at conferences
and exhibition displays.
• 24050 Land - Rental and Leases.
• 24051 Building - Rental and Leases.
• 24052 Housing Rentals - Non-Employee.
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NON-CHARGABLE ACCOUNT CODES
– 1099 REPORTABLE (cont.)
• 24053 Storage Rentals/Fees - NonEmployee.
• 28544 Storage of Household Goods - NonEmployee.
• 24602 Duplicating and Copying.
• 24606 Printing and Publishing.
• 24604 Developing Film.
• 24052 Housing Rentals - Non-Employee.
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NON-CHARGABLE ACCOUNT CODES
– OTHER PROHIBITED ITEMS
• Flower Purchases.
• 28610 Entertainment.
• 28612 Hosting Groups and Guests (this includes hotels
or food).
• Gifts (Gift Certificates).
• Personal Purchases.
• Alcohol.
Unsure or Special Circumstance?
If you are unsure about whether you should charge a
certain item on your card or you have a special
circumstance, please call the PCard Program
Administrator before you make the purchase.
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TEAM CARD
• Allowable Charges:
• Food Purchases for team:
– Restaurants; Grocery Stores; Catering.
• Lodging purchases for team:
– Individual lodging rooms; Hotel conference rooms
• Payment for approved team activities
• Vehicle Expenses:
– Gasoline; taxis; shuttles; car/van rental
• Unallowable Charges:
• No individual travel expenses or non-business
reimbursable expenses.
• NO PERSONAL CHARGES.
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TEAM CARD (cont.)
• Extended Physical Custody of Team Card:
– Team Card may remain with Card User for the
duration of an event.
• Other than additional allowable purchases and rules
regarding custody of the PCard during team events –
ALL OTHER PCARD RULES APPLY – including:
– Security of PCard.
– Authorized Card Users of PCard.
– Multiple User Log.
– Documentation of Purchases.
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PURCHASE DOCUMENTATION
- GENERAL
The Custodian secures and retains documentation to support
PCard purchases and business purpose (if not clear).
Examples of documentation
Sales slips
Order forms
Reconciliation records
Invoices
receipts
Minimum Information
Date of Purchase
Item Description
Shipping Address
Receiving reports
Cash register
Vendor Name
Amount
Name of Card User
Charge slips that do not itemize are inadequate
documentation. You may write in the items on a nonitemized receipt.
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PURCHASE DOCUMENTATION –
NO SUPPORTING DOCUMENTATION
When no other documentation exists, such as
when making a telephone purchase, the following
information shall be maintained on a purchasing
log to support the transaction:
•
•
•
•
•
Date of purchase.
Vendor name.
Item description.
Amount.
Name of purchaser/authorized Card User.
A purchasing log, although not required to record
all PCard transactions, may be a method for
organizing departmental PCard activity.
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PURCHASE DOCUMENTATION
–
MULTIPLE
USER
LOG
• PCards with multiple authorized Card Users (more than one) must be
signed in and out via written documentation identified as a Multiple User
Log.
•
Each time the PCard is checked out to make a purchase information
collected must include at a minimum, the date and their name and the
vendor.
•
After purchases are made and the PCard returned, the return date must
be entered on the log along with purchase amount.
•
The log may be kept in an electronic format. If electronic it must only be
accessible by the Card Custodian.
•
Card Users shall not store a copy of the PCard #.
•
Card Users may not check the card out longer than 24hr. A special
exception to this requirement can be given by the Budget Authority, for a
specific transaction and must be documented in writing.
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RECONCILIATION
• Reconciliation must be prepared monthly, at a
minimum.
• The Card Custodian is responsible for ensuring
monthly card statement reconciliation for all
occurring charges.
• After completing the reconciliation, the Card
Custodian must sign and date the monthly
statement attesting to the fact that all charges are
valid and were initiated by an authorized Card User.
• The Budget Authority must attest to the
reconciliation by signing and dating the monthly
statements.
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RECONCILIATION (cont.)
• In NO case may a Card User review his/her
own charges.
• If a statement contains charges made by a Card
Custodian, then the Budget Authority or
designee must review, sign and date the
Card Custodian’s charges.
• The reviewer must not be supervised by the
person whose charges are being reviewed.
• Card Custodian responsible to JV all
expenditures quarterly (recommend monthly) to
appropriate accounts from 28995 (39546 for
Team Card).
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1. Call
Program
Administrator!
2. UPDATE!
EXIT OF PCARD USER
• The Budget Authority or Card Custodian shall within 24
hours contact the PCS via email to pcard@uoregon.edu
regarding the exit of a Card User from the PCard
Program.
• A PCS PCard Intake Sheet along with the PCard
Authorization Agreement reflecting the change, must be filed
with the PCS within 1 week (or card will be suspended.)
• Enter the additions or changes on the PCS PCard Intake
Sheet and on a copy of the department’s most recent UO
PCard Authorization Agreement and submit to PCS via email
to pcard@uoregon.edu.
– Card Custodian and Budget Authority must sign the PCS
PCard Intake Sheet and initial changes on the PCard
Authorization Agreement.
– Department must keep a copy.
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1. Call
Program
Administrator!
2. UPDATE!
EXIT OF
PCARD CUSTODAIN
• The Budget Authority or Card Custodian shall within
24 hours contact the PCS via email to
pcard@uoregon.edu regarding the exit of a Card
Custodian from the PCard Program.
• When a Card Custodian exits from the PCard Program,
all PCard activity on that PCard shall stop.
• PCS must cancel and reissue of PCard. New PCard will
not be released until:
– A PCS PCard Intake Sheet with a NEW PCard
Authorization Agreement is submitted to PCS via
email to pcard@uoregon.edu.
– A new PCard with a new account # is issued by US
Bank.
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1. Call
Program
Administrator!
2. UPDATE!
EXIT OF PCARD
BUDGET AUTHORITY
• The Budget Authority or Card Custodian shall
immediately (within 24 hours) contact the PCard
Program Administrator regarding the exit of a
Budget Authority from the PCard Program.
• When a Budget Authority exits from the PCard Program,
all PCard activity on that PCard shall stop.
• PCS must cancel and reissue of PCard. New PCard will
not be released until:
– A NEW UO PCard Authorization Agreement form is
submitted.
– A new PCard with a new account # is issued by U.S.
Bank.
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UPDATE
!
ACCOUNT INFORMATION
UPDATE
• **NEW** PCS PCard Intake Sheet needs to be used to
update any information on your PCard account including
without limitation:
– Index.
– Address.
– Credit Limit.
– Department Name.
– Request PCard cancellation.
• Submit the PCS PCard Intake Sheet to PCS via email to
pcard@uoregon.edu
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PROBLEMS
• Incorrect data on the card itself (new cards)
• Contact the PCS via email to
pcard@uoregon.edu.
• Card rejected at the point of sale
• Try to resolve by first contacting the U.S. Bank
• Check if your department is over it’s card limit.
• Give the name of the vendor, amount of intended
purchase, the date, and your card limits (per
transaction, monthly limit).
• If the above fails, contact PCS by phone or email
to pcard@uoregon.edu.
• DOCUMENT ANY/ALL PROBLEMS!
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PROBLEMS
(cont.)
• Poor customer service from U.S. Bank
• Phone calls not returned.
• Rude visa customer service
representatives
• Incorrect information.
• No resolution to your issue.
• Contact the PCS via email to
pcard@uoregon.edu.
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PROBLEMS –
BILLING ERRORS
• Credits to the wrong account
• Double billings
• Incorrect charge amounts
• Try to resolve first by contacting U.S. Bank or
the Vendor.
• If resolution is reached with U.S. Bank or the
Vendor, make sure corrections are reflected on
your account within 30 days.
• Contact the PCS via email to
pcard@uoregon.edu if the above fails within 30
days of discovery.
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TRANSACTION DISPUTES
• Transaction disputes include:
• Overcharges for items.
• Charges the Card Custodian/Card User did not make
• Items charged to account, but not received.
• Contact the PCard Program Administrator about any dispute
within 30 days of the discovery.
• The department along with PCS will contact U.S. Bank and/or
the Vendor about the disputed transaction within 60 days of
your monthly statement reflecting the disputed charge.
• If resolved, Card Custodian should ensure their accounts
reflect any agreed changes in a timely manner (within two
billing cycles).
• Maintain documentation of all disputes.
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CONTROL AND SECURITY
• Card Custodian is responsible for control and
security of the PCard, and the account number
• The PCard must be secured in a locked space
when not in use.
• Make sure the statement is received in a secure
location.
• Turn in inactive or unwanted cards to PCS.
• Document new cards and all purchases.
• Ensure “See UO Staff ID” is on the back of your
PCard.
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CONTROL AND SECURITY
(cont.)
• Do not store the PCard number in an online
account
– NOTE: **NEW** Exemption allowing for automatic charges for
subscriptions with fixed fee recurring at a fixed interval (ex: Mail
chimp, Lynda.com, Survey Monkey) – Section 4.3.4 Note 2.
•
•
•
Do not let another department or unauthorized user
make purchases with your PCard (know your
designees).
Report lost or stolen cards immediately to US Bank
and PCS via email to pcard@uoregon.edu.
Ensure proper security is used when purchasing
online.
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MONTHLY TRANSACTION
REVIEW
• PCS reviews all UO PCard transactions monthly.
• PCS identifies questioned transactions and
requests documentation from departments via
email.
• PCS determines if the questioned transaction is a
violation of applicable policy and procedures,
including PC01 UO PCard Policy and Procedure.
• If the transaction is identified as a violation then
PCS applies Sanctions for Violations of PCard
Policy.
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ONSITE REVIEW
• Notification of review to Card
Custodian and Budget
Authority.
• Standard Checklist.
• Immediate Feedback.
• Written report of review results.
44
VIOLATIONS/SANCTIONS
• A violation is any action that is not in
accordance with one or more of the following: OUS
and UO PCard policies, state law, Oregon
Administrative Rules, and/or reasonable business
expenditures. Violations can differ in nature and
degree of risk and seriousness. Violations will be
evaluated on a case by case basis.
• Sanctions are actions that may be taken in
response to violations of policy and procedures.
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VIOLATIONS/SANCTIONS
(cont.)
• Fall into 3 categories:
• Minor.
• Intermediate.
• Major.
• Open, transparent process of what is not
allowed.
• All reviews will be documented and copies
provided to Budget Authority & Card Custodian.
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SANCTIONS
• Actions taken in response to PCard
Violations fall into 3 categories:
• Minor.
• Intermediate.
• Major.
• Violations are applied to the PCard
account not to individuals.
• Appeal Rights.
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VIOLATIONS/SANCTIONS
(cont.)
Examples of considerations in evaluating PCard
purchase violations and applying sanctions are:
• Chronic violations in any category outlined in
the OUS PCard or UO PCard Policy and
Procedures.
• Intentional misuse such as using the card for
personal purchases.
• Letting unauthorized users use the dept. card.
• As a Card Custodian, a history of not ensuring
Card Users adhere to the policies and
standards for using the PCard.
48
VIOLATIONS/SANCTIONS
(cont.)
Possible Disciplinary Actions or Sanctions:
•
•
•
•
•
•
•
•
•
E-mail or written notification to the Card Custodian identifying the
violation and providing an explanation or clarification of the policy. If the
Program Administrator has knowledge that violations have occurred in the
past, the e-mail should reflect that information.
A copy of the email to the Card Custodian’s Budget Authority.
A copy of the email to the authorized Card User or purchaser.
Invitation to attend a new training session (optional).
Requirement to attend a new training session.
Removal as Card Custodian.
Remove or restricting authorized Card Users.
Revoking or suspending the departmental PCard.
Notification to appropriate University authorities regarding violations
relating to OAR 571-040-0240 which may result in disciplinary action.
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VIOLATIONS/SANCTIONS
(cont.)
• In general Sanctions provide program managers
an approved framework to address program
violations. Sanctions also clarify for program
participants what actions they may be subject to
if they violate program policy and procedure.
• Overall sanctions provide clarification
encouraging appropriate program use and
accountable program management.
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CONTACTS
• Central Email: pcard@uoregon.edu
• PCard Program Administrator:
• Catherine Susman
– Email: susman@uoregon.edu
– Phone: 346-1255; Fax: 346-2425
• Purchasing Technician 1:
• Lynne Harrell
– Email: lharrell@uoregon.edu
– Phone: 346-3220; Fax: 346-2425
• Travel Coordinator:
• Laurie Jacoby
– Email: lajacoby@uoregon.edu
– Phone: 346-3158; Fax: 346-2393
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•
•
•
•
•
•
Tools & Support
Policy
Training
Templates
Written Procedures and Instructions
Website
Direct assistance from PCS staff via phone, email and
in-person meetings; and
• Central Email:
– pcard@uoregon.edu
52
THANK YOU
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