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

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Chief Financial Officer
Responsible Officer: Senior Director of Contracting & Procurement
Adopted: 04/11/2016|
Last Revision: 08/

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15/

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2018
Last Reviewed:

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 08/

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15/

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2018

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I.   PURPOSE

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

 II.  ACCOUNTABILITY

Under direction of the Senior Vice President for Finance and CFO, 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 policy applies to all authorized University departments and personnel who accept responsibility for use of a University issued UPC.P-Card

 IV.    DEFINITIONS

1. Purchasing Card Administrator – OCP

   personnel

   staff member responsible for

   issuance/disbursement of UPCs and managing internal controls for the program.
2. Purchasing Card Reviewer – Designated party responsible for paperwork/follow-up for UPCs issued in the name of a department
3. Purchasing Cardholder – UPC is issued in an individual's name

4. the creation, cancellation, maintenance and review of all P-Cards and transactions

5. Purchasing Card Accountholder – Employee who has been issued a P-Card
6. Purchasing Card Proxy Reconciler – Employee who can manage tasks and transactions on behalf of an Accountholder
7. Purchasing Card Approver – University employee responsible for monitoring P-Card transactions and confirming all transactions are appropriate and compliant with University Procurement policies
8. Purchasing Card Delegated Approver – University employee who has been granted by an Approver the same P-Card authority, including all itinerant tasks and responsibilities
9. 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
10. P-Card UPC – University Purchasing Card

 V.    REFERENCES

1. Rowan University Policy: Receptions and EntertainmentEntertainment
2. Rowan University Policy: Reimbursements for Travel Related University Business ExpensesExpenses 
3. Rowan University Policy: IT Acquisition Policy
4. All purchases made with a UPC P-Card are subject to all appropriate procurement statutes, regulations and policiesas noted on the pages of the Office of Contracting & Procurement websiteof 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.

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  POLICY

1. The Rowan University Purchasing Card (UPCP-Card) 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 has been established to provide an alternative method for authorized business purchases that benefit 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.
2. P-Cards UPCs are the property of Rowan University, and are to be used for University business purchases only.  The University is responsible for the purchases made with the UPCs.
3. 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.
4. 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.
5. Neglect or abuse of UPCs P-Cards will result in cancellation of the card. Fraudulent use of the card will result in disciplinary action up to and including termination of employment.
    
6. Rowan University receives various discounts from numerous vendors for products and services. The use of UPCsP-Cards, in most many cases, voids discounts and tax exempt status. All UPC cardholders should use the SCT Banner Purchasing Systems 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 Office of Contracting & Procurement Department office for approval. Cards can 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 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 monthly logs are completed.
   2. University "GRANTS" are not eligible for UPC program participation.
    
8. Accountholders are responsible for ensuring any sales tax charges, that would otherwise be exempt from a purchase, are credited back to the University.
9. 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.
10. Completed P-Card applications must be forwarded to the Purchasing Card Administrator for approval. Cards will be issued in an individual employee’s name. 
    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. University “GRANTS” are not eligible for P-Card program participation.
11. General P-Card Controls
    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. Card models are Standard, Executive and IT, with modified versions of each available as needed. The models are defined primarily by blocking scheme and spend limit.
    
    1. MCC blocking
    General UPC Controls
    1. Blocking schemes have been developed to govern the use of Standard cards and Executive Cards, utilizing Merchant Commodity Codes (MCC). These codes are set by the individual vendors based on their goods or servicesthe P-Cards and determine the card model that is assigned.
       
       1. The Standard
       card
       1. Card Model allows for specific commodity codes, but does not include travel or entertainment purchases.
       2. The Executive
       card
       1. Card Model allows for an expanded list of allowable codes that includes
       Travel and Entertainment purchases
       1. travel and entertainment purchases.
       2. The IT Card Model allows for technology-related purchases only. This card is held by Information Resource and Technology (IRT) personnel.
    2. Spend Limits
       UPCs
       1. P-Cards are issued with one of
       three $500
       1. four basic spend limits:
          
       Standard                   
       1. 1. Standard                             $500.00/
       transaction           
       1. 1. transaction           $2,000
       .00
       1. 1. /month
       Executive                  
       1. 1. Modified Executive             no transaction limit            $3,000/month
          2. Executive                             no transaction limit           
       no transaction limit             
       1. 1. $5,000
       .00
       1. 1. /month
       Modified Executive    no transaction limit               $3,000.00
       1. 1. IRT                                       no transaction limit            $5,000/month
       2. The OCP reserves the right to adjust the limits (transaction and monthly) based on the intended use of the
       UPCs
       1. P-Cards.
    3. Purchase transactions may not be split into multiples spends multiple transactions to avoid the single transaction limit. Such activity is illegal and constitutes improper use of the card and will be subject to UPC P-Card suspension and/or termination.
    4. All departmental budgets must be taken into consideration while using the purchasing cardP-Card.
    5. New Jersey State and University procurement and budget procedures must also be followed. 
    6. Certain purchases require additional approvals, including but not limited to: receptions and entertainment, travel and traveltechnology.
      
12. Purchase Documentation and Reporting
    1. The
    cardholder or owner (department cards)
    1. Accountholder will secure and retain receipts that provide complete detail to support each purchase charged to the
    UPC and make an appropriate entry on the UPC transaction log.
      Each cardholder will receive a monthly billing statement. Upon receipt of the billing statement, the cardholder will compare the billing statement to the receipts and will reconcile the billing statement as evidenced on the log noted above. The Cardholder/owner submits monthly log with the statement and receipts to the OCP.
      
    1. P-Card.  All receipts for P-Card 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.
    3. Once signed off by the Accountholder, transactions are reviewed, approved and signed off by the Approver.
    4. After individual transactions are reviewed, approved and signed off by the Approver, they are reviewed for procurement compliance by the P-Card Administrator.
    5. 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.
13. Errors regarding incorrect billing may occasionally occur with the UPCP-Card. When errors are found on a statement, it is imperative that the problem be resolved in a timely manner.
    1. The University has limited time (notification period) from the date of the statement to notify the bank of a disputed transaction
    . Cardholders or owners should try
    1. . If the Bank is not contacted within the notification period, however, fraudulent charges may become the liability of the Accountholder’s Department.
    2. For non-fraudulent or disputed transactions, Accountholders should attempt to resolve the billing issue with the
    specific
    1. vendor
    as noted on the statement or other documentation available
    1. . If the issue cannot be fully resolved, the
    card administrator in the OCP
    1. P-Card Administrator should be contacted as soon as possible.

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ATTACHMENTS:

1.  Attachment 1 - Assigned Responsibilities
2. Attachment 2 - Prohibited Uses of the UPC

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1. P-CARD

ATTACHMENT 1

ASSIGNED RESPONSIBILITIES

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1. Office of Contracting & Procurement
   Providing
   1. Provides central administration for the
   UPC
   1. P-Card Program.
   Receiving
   1. Receives applications from
   the departments
   1. employees for new
   purchasing cards
   1. P-Card Accounts.
   Creating
   1. Creates and
   maintaining
   1. maintains account information for each card issued.
   Closing cards which
   1. Closes accounts that are lost, stolen, or are no longer needed
   by departments
   1. .
   Maintaining card
   1. Maintains P-Card Account inventory.
   Maintaining
   1. Maintains a list of
   cardholders and card reviewers.
   1. Receiving and reviewing monthly logs.
   2. Review purchases for compliance of University policies and procedures.

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   1. 1. P-Card Accountholders and Approvers.
      2. Reviews
   2. Maintaining control of the UPC issued to the department.
   3. Collecting and reconciling charge receipts with charges on statements.
   4. Reviewing
      1. purchases for compliance with University policies
      .
   5. Documenting and reporting policy violations to the approving officials and the OCP.
   6. Reporting lost or stolen cards to the OCP.
   7. Notifying the OCP and Accounts Payable Department (AP) if leaving the departmental position or if the department transfers the responsibilities of the card reviewer to another employee.
   8. The department is responsible for ensuring that the OCP and AP are notified of any changes to the departmental card reviewer.

   ...

   1. 1. and procedures.
         
         
   2. Accountholder/Proxy Reconciler
      1. Understands and complies
      Understanding and complying
      1. with rules for use of the
      UPC
      1. P-Card.
      Reporting
      1. Reports lost or stolen
      UPCs
      1. P-Cards to the customer service number listed on the card and the
      Purchasing
      1. P-Card Administrator
      .

   ...

   1. 1. .
      2. Collects and reconciles charge receipts with P-Card charges.
      3. Notifies P-Card Administrator of any changes to departmental position and responsibilities as they relate to the P-Card.
         
         
   2. Approver/Delegated Approver
      
      1. Reviews P-Card transactions and allocation within prescribed timeline.
      2. Provides

   3. Reviewing UPC charges monthly.

   4. Providing
      1. expenditure authority for card charges through online approval within Works by signing
      the monthly transaction log
      1. off on transactions submitted by Accountholders.
      2. The Dean or Vice President in the Division
      is responsible for approving applications for departmental UPCs
      1. approves applications for Department P-Cards.
      2. The Chief of Staff or Provost approves applications for cards issued to Vice-Presidents and Deans.
         
         
   5. P-Card Administrator
      1. Administers and oversees the program.
      2. Processes P-Card applications and change requests.
      3. Receives original cards from bank; distributes cards to Accountholders.
      4. Reviews P-Card transactions for procurement compliance.
      5. Batches 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.
   6. Purchasing Card Company
      Issuing UPCs
      1. Issues P-Cards.
      Receiving
      1. Receives reports of lost and stolen cards.
      Receiving
      1. Receives reports regarding disputed invoices.
      1. Technical assistance.

      ______________________________________________________________________________________________________________________________________________________________________

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      1. 1. Provides technical assistance.

      ATTACHMENT 2

      PROHIBITED USES OF THE

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      P-CARD

      
      

      1. P-Cards

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      1. will not be used* for the purchase of:
         
         1. Information Technology (Hardware or Software)
         2. Furniture
      2. Hazardous/Radioactive materials
      3. 1. without prior approval from Facilities
         2. Personal charges
         Personal Charges
         1. – even with the intent of reimbursing the University
      4. Payment of Stipends, Honorariums or any contracted professional service
      5. 1. Goods and services requiring a signed agreement or contract, including stipends, honorariums or contracted professional services
         2. Traveler’s checks
         Traveler's Checks
         1. or cash withdrawals from ATM machines
         2. 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.
         3. Alcohol
         4. Any purchases prohibited by University Policies or not related to University business.

      
      

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