ROWAN UNIVERSITY POLICY

Title:University Purchasing Card
Subject:Contracting and Procurement
Policy No:FIN: 2016:05
Applies:University-Wide
Issuing Authority:Senior Vice President for Finance and Chief Financial Officer
Responsible Officer:Senior Director of Contracting & Procurement
Adopted: 04/11/2016|
Last Revision: 0810/1531/201817
Last Reviewed: 08 10/1531/201818

 I.      PURPOSE

This policy outlines use of the Rowan University Purchasing Card (P-CardUPC) Program , which authorizes employees to make business purchases using a University - issued credit card to benefit and support the University’s mission of education, research, and public service.

 II.  ACCOUNTABILITY

Under direction of the Senior Vice President for Finance, the Senior Director of the Office of Contracting & Procurement (OCP) shall implement this policy. The Provost, Senior Vice Presidents, Vice Presidents, Deans, Department Chairs and Department Directors directors shall ensure compliance with the policy.

 III.   APPLICABILITY

This  This policy applies to all authorized University departments and personnel who accept responsibility for use of a University issued P-CardUPC.

 IV.  DEFINITIONS  DEFINITIONS

1. Purchasing Card Administrator – OCP staff member personnel responsible for the creation, cancellation, maintenance and review of all P-Cards and transactionsissuance/disbursement of UPCs and managing internal controls for the program.
2. Purchasing Card Accountholder – Employee who has been issued a P-Card
3. Purchasing Card Proxy Reconciler – Employee who can manage tasks and transactions on behalf of an Accountholder
4. Purchasing Card Approver – University employee responsible for monitoring P-Card transactions and confirming all transactions are appropriate and compliant with University Procurement policies
5. Purchasing Card Delegated Approver – University employee who has been granted by an Approver the same P-Card authority, including all itinerant tasks and responsibilities
6. Merchant Category Code (MCC) –  A four-digit number assigned to a business by credit card companies to classify the business by the type of goods or services it provides
7. Reviewer – Designated party responsible for paperwork/follow-up for UPCs issued in the name of a department
8. Purchasing Cardholder – UPC is issued in an individual’s name
9. UPC P-Card – University Purchasing Card

 V.  REFERENCES

1. Rowan University Policy: Receptions and EntertainmentEntertainment
2. Rowan University Policy: Reimbursements for Travel Related University Business Expenses Rowan University Policy: IT Acquisition PolicyExpenses
3. All purchases made with a P-Card UPC are subject to all appropriate procurement statutes, regulations and policiesas noted on the pages of the OCP website. Purchases made on a P-Card outside the guidelines of the above policies may not be approved and may become the responsibility of the Accountholder.
   
   

VI.    POLICY

1. Rowan The University Purchasing Card (P-Card) Program has been established to provide an alternative method for authorized business purchases that benefit UPC) Program is a tool to be utilized by employees to provide authorized University personnel with the ability to make purchases using a credit card when necessary, to benefit and support the University’s mission of education, research, and public service. The P-Card should only be used as a supplement for items that are not available through the Purchase Order process, the Banner Finance Module, in extreme emergencies or with vendors who do not accept any other form of payment.
   1. UPCs
   P-Cards
   1. are the property of Rowan University, and are to be used for University business purchases only.
2. P-Card Accountholders will be responsible for providing justification for each P-Card transaction. Failure to follow these guidelines and policy may result in card revocation, as determined by the Senior Director of Contracting & Procurement.
3. All items purchased with the P-Card are the University’s property. Only the Office of Contracting & Procurement has the authority to obligate the University for the purchase of goods and services. Any purchases made outside this policy become the sole liability of the individual making the purchase
   1.   The University is responsible for the purchases made with the UPCs.
      
      1. Neglect or abuse of
   P-Cards
   1. 1. UPCs will result in cancellation of the card.
      2. Fraudulent use of the card will result in disciplinary action up to and including termination of employment.
4. Rowan University receives various discounts from numerous vendors for products and services. The use of P-CardsUPCs, in many most cases, voids discounts and tax exempt status. Accountholders are responsible for ensuring any sales tax charges, that would otherwise be exempt from a purchase, are credited back to the University.
5. The Accountholder must ensure all transactions are fully allocated with the correct Fund, Organization, Account and Program. This must be complete by the tenth (10^th) day of every month. Accounts with transactions that are not fully allocated by this date will be immediately suspended until the task is complete.
6. All UPC cardholders should use the Banner Purchasing System as the first choice for procurement. The UPC should only be used as a supplement to the purchase order process or in emergency situations.
7. Completed applications for a UPC must be forwarded to the OCP for approval. Cards can Completed P-Card applications must be forwarded to the Purchasing Card Administrator for approval. Cards will be issued in an individual employee’s name or in the name . of the department according to the specific needs of the department.
   1. If the card is issued with the intended use of supporting the purchasing needs of a department, college or division, the P-Card’s safety and usage remain the sole responsibility of the employee whose name is listed on the card.
   2. All P-Card Accounts require an Approver.
   3. in a department’s name, the department must designate an individual in the department as an “owner” who will be responsible for ensuring the cards are kept secure, all purchases are acceptable and accounted for, and the necessary purchase documentation is completed.
   4. University “GRANTS” are not eligible for P-Card UPC program participation. Purchases for grants cannot be made on a Pcard. If this does occur, the University will require out of pocket reimbursement from the account holder.
8. General UPC General P-Card Controls
   1. A combination of intended use, employee responsibilities/regular job duties, MCC blocking schemes, card limits and transaction limits are all taken into consideration when determining the proper card model assigned to each
   P-Card
   1. UPC. Card models are Standard, Executive and IT
   ,
   1. with modified versions of each
   available
   1. as needed. The models are defined primarily by blocking scheme and spend limit.
      MCC blocking
      1. Blocking schemes have been developed to govern the use of
      the P-Cards and determine the card model that is assigned
      1. Standard Cards and Executive Cards, utilizing Merchant Commodity Codes (MCC). These codes are set by the individual vendors based on their goods or services.
         1. The Standard Card
         Model
         1. allows for specific commodity codes, but does not include travel or entertainment purchases.
         2. The Executive Card
         Model
         1. allows for an expanded list of allowable codes that includes
         travel
         1. Travel and
         entertainment
         1. Entertainment purchases.
         The IT Card Model allows for technology-related purchases only. This card is held by Information Resource and Technology (IRT) personnel.
         1. Specialized purchases such as Information will have cards issued for a very limited set of MCCs to be utilized when the vendor will only accept credit cards.
      1. Spend Limits
         
         1. P-Cards UPCs are issued with one of four three basic spend limits:
            Standard                             $500
            • Standard                    $500.00/
            transaction          
            • transaction     $2,000.00/month
            • Modified
            Executive            
            • Executive   no transaction
            limit           
            • limit      $3,000.00/month
            Executive                             no transaction limit           
            • Executive                  no transaction limit      $5,000.00/month
            • IRT                                       no transaction limit            $5,000/month
            • The OCP reserves the right to adjust the limits (transaction and monthly) based on the intended use of the P-CardsUPCs.
      2. Purchase transactions may not be split into multiple transactions multiples spends to avoid the single transaction limit. Such activity is illegal and constitutes improper use of the card and will be subject to P-Card UPC suspension and/or termination.
      3. All departmental budgets must be taken into consideration while using the P-CardUPC.
      4. New Jersey State and University procurement and budget procedures must be followed. 
      5. Certain purchases require additional approvals , including but not limited to : receptions and entertainment, and travel and technology.
   2. Purchase Documentation and Reporting
      1. The Accountholder will secure and retain receipts that provide complete detail to support each purchase charged to the P-CardUPC.  All receipts for P-Card UPC purchases must be detailed and itemized and uploaded to Works®. Transactions that do not have a corresponding itemized receipt will become the liability of the Accountholder. The University must be reimbursed by the Accountholder for all purchases over $25.00 that are not accompanied by a valid receipt. Accountholders are required to retain original credit card receipts.
      2. The Accountholder must ensure all transactions are fully allocated with the correct Fund, Organization, Account and Program. This must be complete by the tenth (10^th) day of every month. Accounts with transactions that are not fully allocated by this date will be immediately suspended until the task is complete.
      4. Accountholders must submit (in Works®) the required documentation and information as outlined in the UPC guide in a timely manner.
      5. Once submitted Once signed off by the Accountholder, transactions are reviewed , and approved and signed off by the Approver.
      6. After individual transactions are reviewed, approved and signed off by the Approver, they are reviewed for procurement compliance by the P-Card Administrator.
      7. Corrective action must be initiated within five (5) business days for any transaction that is flagged (disapproved) by either the Approver or the P-Card Administrator. Failure to do so within the allotted period of time will result in card suspension.
      8. Accountant.
   3. Errors regarding incorrect billing may occasionally occur with the P-CardUPC. When errors are found on a statement, it is imperative that the problem be resolved in a timely manner. The University has limited time (notification period) from the date of the statement to notify the bank of a disputed transaction. If the Bank is not contacted within the notification period, however, fraudulent charges may become the liability of the Accountholder’s Department.For non-fraudulent or disputed transactions, Accountholders should attempt Accountholders or owners should try to resolve the billing issue with the specific vendor as noted on the statement or other documentation available. If the issue cannot be fully resolved, the P-Card Administrator the Pcard administrator in the OCP should be contacted as soon as possible.

   
   

   VII. ATTACHMENTS:

   1. Attachment 1 - Assigned Responsibilities
   2. Attachment 2 - Prohibited Uses of the P-CARDUPC

   
   

   
   

   ATTACHMENT 1

   ASSIGNED RESPONSIBILITIES

    

   Office of Contracting & Procurement

   1. Provides Provide central administration for the P-Card UPC Program.
   2. Receives Receive applications from employees the departments for new P-Card Accountspurchasing cards.
   3. Creates Create and maintains maintain account information for each card issued.
   4. Closes accounts that Close cards which are lost, stolen, or are no longer needed by departments.
   5. Maintains P-Card Account Maintain card inventory.
   6. Maintains Maintain a list of P-Card Accountholders and Approverscardholders and card reviewers.
   7. Reviews Review purchases for compliance with University policies and procedures.

   
   

   Accountholder

   ...

   1. Understands Understand and complies comply with rules for use of the P-Card.UPC.
   2. For cards issued in a department name, maintain control of the UPC issued to the department.
   3. Report Reports lost or stolen P-Cards UPCs to the customer service number listed on the card and the P-Card UPC Administrator.

    

   Accountholder and/or Proxy Reconciler

   1. Collect and reconcile Collects and reconciles charge receipts with P-Card charges.Notifies P-Card Administrator of any changes to departmental position and responsibilities as they relate to the P-Card.
      UPC charges.
   2. Review purchases for compliance with University policies.
   3. Document and reporting policy violations to the approving officials and the OCP.
   4. Report lost or stolen cards to the OCP.
   5. Notify the OCP if leaving the departmental position or if the department transfers the responsibilities for the department card to another employee.

   
   

   Approver

   1. Review UPC charges as submitted for approval.
   2. Provide Approver/Delegated Approver
      
   3. Reviews P-Card transactions and allocation within prescribed timeline.
   Provides expenditure authority for card charges through online approval within Works by signing off on by approving transactions submitted by Accountholders and Proxy Reconcilers.
   4. The Dean or Vice President in the Division approves applications for Department P-Cards.The Chief of Staff or Provost approves applications for cards issued to Vice-Presidents and Deans.
      departmental UPCs.

   
   

   Accountant

   1. Review transactions processed by the Approver P-Card Administrator
   2. Administers and oversees the program.
   3. Processes P-Card applications and change requests.
   4. Receives original cards from bank; distributes cards to Accountholders.
   Reviews P-Card transactions for procurement compliance.
   5. Batches Batch all approved transactions within a billing cycle to ensure correct allocation and reconciliation.
   6. Serves as liaison to bank for official communications and resolution of issues and concerns.
   7. Reviews Merchant Category Codes quarterly.
   8. Re-evaluates program on an as-needed basis, but not less than annually.
   for final charge against the approved FOAPALs.

   
   

   Purchasing Card Company

   1. Issues P-CardsIssuing UPCs.
   2. Receives Receiving reports of lost and stolen cards.
   3. Receives Receiving reports regarding disputed invoices.
   4. Provides Provide technical assistance.

   
   

   
   

   
   

   
   

   ATTACHMENT 2

   PROHIBITED USES OF THE P-CARD

   ...

   UPC

   
   

   UPCs will not be used* for the purchase of:

   1. Information Technology (Hardware or Software)
   2. Furniture without prior approval from Facilities
   3. Hazardous/Radioactive materials
   4. Personal charges Charges – even with the intent of reimbursing the University
   5. Goods and services requiring a signed agreement or contract, including stipends, honorariums or contracted professional services
   6. Payment of Stipends, Honorariums or any contracted professional service
   7. Traveler’s Checks Traveler’s checks or cash withdrawals from ATM machines
   8. Purchases presenting significant potential risk or exposure to liability for the University. For example: items or services that represent special health, safety, occupational or environmental risks or arrangement whereby the University is required to sign any type of agreement or contract.Alcohol
   9. Any purchases prohibited by University Policies or not related to University business.

   *At the discretion of the OC&P, OCP individual cards may be approved for specific purchases as described in section D.1.c.