Procurement card

Purpose

The Procurement Card (p-card) is a University credit card that delegates purchasing power to authorized, individual University employees. The p-card allows the cardholder to charge work-related expenses directly to the appropriate University account. The p-card permits purchases to be made with a minimum of delay and a minimum of administrative labor, while also providing accountability. This policy describes the proper use of a University purchasing card. The procedures established here also serve to protect the University from fraud and other deliberate or accidental misuse of its funds.

Policy

University employees are eligible for the purchasing card. Non-employees and students are not eligible. The p-card may be used for business purposes only, and all purchases must comply with all Lynn University Policies.

A cardholder must comply with all applicable policies and procedures to retain use of the card.

Definitions

Not applicable.

Procedures/Guidelines

I. Application
University employees must submit an authorization application. This form is available electronically. All information must be completed, and the form must contain the appropriate authorized signature(s).

II. Card Type
As of August 2017, the University uses a VISA procurement card provided by JP Morgan Chase. Cards can be used for a variety of goods and services, as well as typical travel expenses. Cards may be used only for the purchase of goods, travel, restaurant and other authorized related purchases. The standard transaction limit is $999.00. Other limits are available with proper cause and appropriate authorization. Please note the authorization form indicates the standard per transaction amount only.

III. General Use
The p-card is the preferred method for high volume, low dollar buying, authorized travel expenses, and other various items. In general, the p-card may be used to purchase any item that falls within the University policies. The purchase must be within the assigned, authorized dollar limit.

IV. Expiration and Reissue of Cards
Procurement cards expire every three years, on the last day of the month embossed on the front of the card (expiration date). Renewal cards are automatically sent to the P-card Office within 1 to 3 weeks prior to the expiration date. The cardholder will be sent an e-mail notification listing the date and location to pick up his or her new card. A policy/procedure review test is required for each renewal. The cardholder should complete the review, read and sign a new cardholder agreement form and bring it to pick up their new card.

V. Changing Information on a Card, or Canceling a Card
To cancel a card, return the card to the Procurement office. The card will be destroyed and the account will be cancelled.

VI. Information
User information is available from the P-Card Administrator and the Procurement Department. Revisions to the forms and the manuals can frequent; all cardholders will be notified of changes and sent current versions. Forms and information are available on the Procurement web page under Employee Services @ https://my.lynn.edu/ICS/Employees/Procurement.jnz

VII. Updating Transactions
All transactions will appear in the JP Morgan Chase, PaymentNet system. Access to the system is available via the WWW to all cardholders or their designees. Transactions must be updated within five (5) business days from the post date with adequate descriptions and details in notes section, as well as accounting codes, etc. Every transaction will default into the PaymentNet application with a specific, pre-assigned account number. It is the responsibility of the cardholder or their designee to update the account number as appropriate.

VIII. Allocation of Charges
Dollar amounts charged to the p-card will be allocated to the default account number assigned to the p-card at the time of issue. Upon review and approval of the transaction in Payment Net, the dollar amounts may be moved to other account numbers, or split between several account numbers. Dollar amounts will be posted (mapped) to the General Ledger, as a result of a download from PaymentNet made weekly by the Accounting Office. The assigned PaymentNet transaction id# will be imported into GL and will appear with the pre-fix ‘CC’ followed the id number.

IX. Documentation and Review
Cardholders should always obtain an itemized receipt for each transaction. If a cash register tape does not have descriptions, write them on the tape. Any transaction without a properly substantiated receipt is subject to reimbursement of the university by the cardholder.

A receipt is defined as an invoice, bill, cash register receipt, sales slip, or packing slip which contains an itemized list of goods purchased, with dollar amounts, and the name and location of the supplier. An employee of the supplier must sign all handwritten receipts.

A. Purchases Made in Person
Retain the itemized receipt in addition to the credit card copy to properly substantiate the purchase.

B. Faxed or Mailed Purchases
Retain a copy of the order as faxed or mailed and the fax confirmation (if available) for your records.

C. Internet Purchases
At least one of the following types of documentation is required:

• Print out of the completed online order form.

• Print out of the online order confirmation.

• Print out of the e-mail confirmation.

D. Reconciliation
The cardholder should affix to the back of the monthly cardholder statement, all invoices and receipts. Additionally, all supporting documentation (credit memos, copies of disputed item and refund forms, etc.) should be retained with the monthly cardholder statement. Four years of documentation, plus the current fiscal year, must be kept on file. One year, plus the current fiscal year should be on-hand in the department. These records must be made available on request for University audit. Additionally, a scanned image of each transaction receipt must be attached in PaymentNet. Receipts may be uploaded as pdf, jpeg or gif files.

E. Review
Initial Review- The first month following the receipt of a department’s first monthly statement, the cardholder may elect to schedule an appointment with the P-Card Administrator to review the records and procedures. The intention of this review is to ensure that the cardholder has been properly trained and is aware of his/her responsibilities. These responsibilities include:

• Proper transaction reconciliation

• Assurance of the existence and retention of supporting documentation. • Verification that the charges have been reviewed and allocated properly

• Verification that purchases are appropriate and within the University’s policies.

Supervisory Review- The supervisor authorizes their designee to obtain a Lynn University, JP Morgan Chase VISA p-card card to be used for the purchase of goods and services as required. The must review the transactions and the credit card statement on a monthly basis for policy compliance. A supervisor may review transactions for their employees on-line in the PaymentNet application or request a monthly report of transactions with all cardholder information and transaction detail for review.

Random and Annual Reviews- The cardholder’s transactions will be reviewed at random. All transactions are reviewed on-screen by the Procurement Services department and the Accounting office. Reviewer(s) from the Accounting Office will review the cardholder’s transactions and records to ascertain the department’s level of compliance with University policies and procedures.

1. The reviewer(s) will review selected department records and may complete the checklist on procurement card documentation and the review report. The reviewer(s) will check for the following:

a. Proper completion of transaction reconciliation.

b. Receipts supporting the transaction and reconciliation log entries.

c. Business purpose and approval of purchases.

d. Unusual activity.

X. Approvals
Higher-level approval is required. The supervisor or budget unit manager must sign off on the Authorized Application and the supervisor is responsible for the regular review of their employees’ monthly statements either on-line in the PaymentNet application or via the transaction statement report.

A. Academic or Administrative Officers
Academic or Administrator Officers are defined as those who report directly to the Executive Officers (e.g., Assistant VPs, Deans). The p-card transactions of Academic or Administrative Officers require higher-level review and approval by their Executive Officer. In the event that the Executive Officer is not available to provide such review and approval, he or she may designate another reviewer-approver (e.g., the planning unit's budget manager).

B. All Other Cardholders
All other cardholder transactions must be reviewed and approved by a higher-level of authority within the cardholder's department.

XI. Audits
All transactions are reviewed on-screen by the Procurement department and the Accounting office. Further, all transactions and supporting documentation are subject to audit by the Accounting Office. Training programs, communications and transaction audits will be routinely administered to end users. They will be designed to:

1. Review departmental records and record keeping practices;

2. Correct errors and ensure policy guidelines are followed;

3. Offer "best practices” in procurement procedures;

4. Solicit feedback regarding processes and "best practice" procedures.

Results of these visits will be used to facilitate the procurement functions of Lynn University, and will be shared with our community.

XII. Violations & Card Status

A. Violations

Level I: Personal and/or unauthorized purchases

A Level I personal and/or unauthorized purchases violation will result in immediate cancellation of the procurement card and potential personnel disciplinary action including but not limited to, repayment of improperly spent funds.

Level II: Incremental purchases and/or prohibited purchases
A Level II violation will result in the cancellation of the purchasing card and require retraining of the cardholder prior to re-issuance of a purchasing card.

Level III: Improper Record Keeping
A Level III violation will require retraining the cardholder in record keeping procedures.
The reviewer(s) will report violations to the Department Chair or Dean . The chair will be given one month to respond to the findings and state the corrective action(s) to be taken.

Level IV: Missing Receipts
A Level IV missing receipts violation will require retraining the cardholder in submitting authorized receipts as required into the PaymentNet application. If the cardholder does not take corrective action this violation may result in the temporary loss of card privileges, and if on going the cancellation of the procurement card.

Lynn University may terminate the right to use a Procurement card at any time for any reason. Improper use of the Procurement Card may result in disciplinary action as outlined, up to and including termination of employment.

B. Cardholder Employment Status
Voluntary Termination: Employees who are terminating employment, either voluntarily or though retirement, must notify the Procurement department at least 5 working days prior to leaving the University. Purchasing cards for such terminating employees will be canceled upon receipt of notification of termination.

Involuntary Termination: In the event of an involuntary termination, the director, dean or individual with budget responsibility for the default account used on a purchasing card, must immediately notify the purchasing card administrator and take possession of the procurement card. The card should be hand carried to the Procurement department.

Employee Move to another Department: In the event that a cardholder transfers to another department within Lynn University, the P-Card administrator must be notified prior to the date of the transfer. A department that has an employee transferring from another department and who was a cardholder in the previous department must complete an authorization form and have approval from the current and new department before updating the record. For questions regarding this procedure please contact the P-Card Administrator or the Director of Procurement.

Cardholder Responsibilities

XIII. Everyday Use

A. Rules and procedures
1. The card is for business expenses only. It may not be used for any personal purchases at any time. This VISA p-card is a corporate liability card. Personal credit information of the card holder will not be obtained. Misuse of the VISA p-card may result in disciplinary action as outlined, up to and including termination of employment (see section XII. Violations & Card Status)

2. The card is not transferable. It may be used by the cardholder only.

3. Itemized receipts must be obtained for all p-card transactions.

4. Authorized invoices marked with the corresponding VISA id number for the following items must scanned into PaymentNet4 within the (5) five-day transaction review period:

• Fixed assets- items with a per unit value of over $1,000.00
• Maintenance contracts, agreements and memberships over $1,000.00 with an annual term – the term of the contract must be specified
• Anything charged to a Project account – account that begins with 4
• Anything charged to a grants or gift account

5. Pyramiding - i.e., dividing one purchase into two or more, in order to stay within your transaction limit - is not allowable.

6. If the cardholder does not update his or her own transactions, he or she must assign the task to an appropriate designee. Allocations of the charges should be done within five (5) working days.

7. Cardholders may not receive cash advances of any form using the p-card.

8. Cardholders are responsible for resolving discrepancies with suppliers and ensuring credits are received. For assistance with a vendor issue, please contact the P-Card Administrator as soon as possible.

9. Cardholders may not receive cash back or in-store credits for any refunds or exchanges. Such amounts must be credited to the P-card account. If a supplier mistakenly issues a refund check, it must be submitted to the P-card Office within five days of receipt by the cardholder.

10. Cardholders should not pay FL sales tax. The cardholder must tell in-state suppliers the University is exempt from FL sales tax. The tax exempt number is embossed on every authorized Lynn University Visa card. A copy of the University's Tax Exempt form is available if the supplier needs to see it.

11. If grant funds are being charged, cardholders are responsible for seeing that all granting agency requirements are fulfilled.

12. Cardholders may not make purchases that violate University policy restricting business transactions that may be perceived as a conflict of interest (purchases from a business in which you or a relative have a financial interest). See polices @ https://www.lynn.edu/university-policies

B. Preventing Fraud
The cardholder should use basic security measures, as outlined below, to guard against fraud:

1. DO Sign your card as soon as it arrives.

2. DO Keep the card in a secure location; guard the card number carefully.

3. DO Save receipts and statements in a secure area (they may contain your card number). Attach each receipt to the corresponding transaction in PaymentNet.

4. DO Keep an eye on the card during the transaction, and retrieve it as soon as possible.

5. DO Always know where your card is. If you can't find the card, assume the worst: Have your account canceled and request a new card.

6. DO Be aware of what you are signing: Your signature can copy through to other slips deliberately placed underneath.

7. DO Audit your monthly statement closely. Make sure all charges shown are legitimate charges.

8. DO Visit reputable, familiar merchants whenever possible.

9. DO Report possible fraud immediately to Procurement and to JP Morgan VISA.

10. DO NOT Discard credit card slips in public areas, or discard them whole. Thieves can acquire your card number from receipts, slips and statements.

11. DO NOT Lend your card to anyone.

12. DO NOT Give your card number to anyone over the phone unless you know you are dealing with a reputable vendor.

C. Unauthorized Purchases
The p-card may not be used to purchase the following items:

1. Personal items

2. Live animals (contact Lab Animal Resources in Research Compliance Office for details).

3. Controlled substances requiring a DEA license

4. Cash and Travelers checks

5. Purchases that involve signing an agreement, license, or contract (e.g., leases) - send document to General Counsel or Procurement department for review and action.

6. Long term rentals (1 year or longer).

7. Radioactive materials

8. Weapons or ammunition

9. Donations

10. Fuel for a privately-owned vehicle or aircraft (without a specific business purpose and prior approval. Never for personal use or in cases where mileage reimbursement should be used)

11. Entertainment (without prior approval)

12. Fines/Late fees/Penalties

13. Gifts or Gift Certificates (without prior approval)

14. Honorariums

15. Interest/Finance Charges

16. Legal Services (without prior approval)

17. Lobbying

18. Performers (without prior approval)

19. Travel (without prior approval)

20. Tuition (without prior approval)

D. Restricted Use

Certain items are restricted from purchase with a p-card unless the following requirements are met:

1. Alcohol for consumption (must have appropriate prior approval).

2. Capital Equipment (the following information must be provided when updating the transaction on-screen):

a. Manufacturer's name, serial number and model number (if not provided in level 3 detail from the supplier)

b. Acquisition date or date received

c. Location

d. Unit acquisition cost (if not already clearly identified)

e. Name of department taking ownership

3. Maintenance, Leases or Service agreements are allowable for small equipment. Annual agreement must specify term dates of the agreement in the ‘notes’ section of the transaction.

4. Travel & Entertainment expenses are allowable on p-cards which have prior approval (the following information must be provided when updating the transaction on-screen):
a. Name of Traveler
b. Conference registrations location, and date
c. Length of Stay
d. Business Purpose

D. Review of Charges
1. All charges must be reviewed in a timely basis (within (5) five days). Un-reviewed charges will be downloaded into the general ledger as is, and charged off to the default account.

2. The review box in PaymentNet does not indicate a release or hold on payment. The supplier will be paid via their merchant bank within 24-48 hours of the transaction. The end-user must check the on-line review box as an indication of the legitimacy of the purchase. The review box is not an indication of inspection and approval of the merchandise and it does not affect the payment.

3. All authorized receipts must be attached to the corresponding transaction in PaymentNet. Pdf, jpeg or gif files may be attached in the application.

XIV. Problems with card use

A. If a supplier does not accept the p-card
The cardholder should contract the Procurement Card Administrator. The Administrator will make an effort to enroll the supplier in the program.

B. Disputed items (damaged or incorrect shipments, etc.)
It is the cardholder's responsibility to resolve discrepancies with the supplier and ensure credits are received. Contact the Procurement Coordinator for assistance for further information regarding disputes.

1. The cardholder should immediately notify the supplier of any problems and seek a credit within 30 days of the purchase.

a. If a credit is not received from the supplier in 30 days, the cardholder should formally dispute the purchase with the Procurement Card Administrator. Formal disputes will be submitted to JP Morgan Chase.

b. Credits will appear within 60 days of the dispute process

c. All credits will be downloaded into the general ledger and will update the account status.

C. If your card is lost or stolen, or if you detect a transaction you believe to be fraudulent

Report loss, theft, or fraudulent use of the card immediately, as follows:

1. Contact JP Morgan Chase @-1-800-VISA-911 or-1-410-581-9994 internationally.

2. To report a fraudulent transaction, have the transaction number and basic transaction information (vendor, dollar amount) ready. Inform the Procurement Card Administrator and/or Procurement Services.

D. Damaged cards
If the card is damaged or demagnetized, or requires a correction in the cardholder name or department name, a replacement plastic may be requested. Contact the Procurement Coordinator.

To learn more about this policy or the supporting procedures, please contact Procurement.

Policy updated on: Oct. 24, 2018