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The University of Louisiana at Monroe PURCHASING DEPARTMENT La Carte (P-Card) PowerPoint PPT Presentation


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The University of Louisiana at Monroe PURCHASING DEPARTMENT La Carte (P-Card) Purchasing Card Program April 23 , 2012. Overview. Introduction & Purpose Benefits Cardholder Responsibilities How the Program Works Important Information. Introduction and Purpose. What Is It?

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The University of Louisiana at Monroe PURCHASING DEPARTMENT La Carte (P-Card)

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The university of louisiana at monroe purchasing department la carte p card

The University of Louisiana at Monroe

PURCHASING DEPARTMENT

La Carte (P-Card)

Purchasing Card Program

April 23, 2012


Overview

Overview

  • Introduction & Purpose

  • Benefits

  • Cardholder Responsibilities

  • How the Program Works

  • Important Information


Introduction and purpose

Introduction and Purpose

  • What Is It?

    • LaCarte (P-Card) is a university owned VISA credit card that is used to make small dollar purchases directly from vendors.

    • The individual named on the card is responsible for making “business related” purchases that are in compliance with university and state policies.

    • The P-Card carries a corporate liability


La carte p card program

La Carte P-Card Program

  • Who Issues the Card?


View of the p card

View of the P-Card

  • LA State sales tax exempt number

    • 128-4900-001

  • Cardholder’s name

  • University of Louisiana at Monroe


Benefits

Benefits

  • Prompt payments to vendors

  • Less Expensive - Reduces processing costs and paper flow

  • Reduces the number of purchase requisitions and/or Check Requests processed by Purchasing

  • Reduces the number of invoices/payments processed by Accounts Payable


Card controls

Card Controls

  • Monthly Billing Cycle

    • Begins on the 16thand ends on the 15thof the following month.

  • Dollar Limits & Transaction Limits

    • If you exceed the dollar or transaction limits, your card will be declined at the Point of Sale (POS).

  • Merchant Category Codes (MCC)

    • Attempts to purchase from restricted & prohibited MCC’s will cause the transaction to decline at the POS.


P card program

P-Card Program

  • How Much Can I Spend?

    • P-Card purchases are limited to an individual’s Single Transaction Limit (STL) or $1,000 per transaction (including shipping and handling).

    • CAUTION: DO NOT split a transaction. Purchasing items that exceed the Single Transaction Limit and separating the payment into two or more transactions isNOTallowed. Artificially splitting a purchase is a violation of State law.


Purchases are not to be artificially divided

Purchases Are Not To Be Artificially Divided

Executive Order BJ 2010-16, Small Purchase Procedures, Section # 6 states the following;

  • In the absence of a good faith business basis, no purchase or procurement shall be artificially divided within a cost center, or its equivalent, to avoid the competitive process or the solicitation of competitive sealed bids.

  • Artificial division of purchases to circumvent the Single Transaction Limit (STL) of a P-Card is NOT allowed.

    Artificial division of purchases can be outlined as follows:

  • Budget unit making two or more P-card purchases for the identical commodity on the same day or within the same week whose combined total cost exceeds the STL.

  • Budget unit making two or more P-Card purchases to the same vendor on the same day or within the same week whose combined total cost exceeds the STL.

  • Budget unit making two or more P-Card purchases to similar vendors* for identical or similar commodities** on the same day or within the same week which exceed the STL.

    *   Similar vendors are suppliers selling products within the same industry category, i.e., athletic, automotive, data processing, electrical, medical, office, scientific, etc.

    ** Similar commodities are items which possess general characteristics within the same industry category, i.e., athletic, automotive, data processing, electrical, medical, office, scientific, etc.


Unauthorized purchases

Unauthorized Purchases

Cash Advances, Wire Transfers

Travel Expenses

Alcoholic beverages

Auto Rentals/Leases

Individual Memberships

Gifts/Gift Cards/Gift Certificates

Food and Meals

Cell Phones/Services/Blackberries

PostageStamps

Consultants/speakers (1099 Vendors)

Prescription drugs/narcotics, etc.

CapitalOutlay/Computers(707000’s)


Authorized purchases

Authorized Purchases

Office Supplies

Materials and Supplies

Books and Subscriptions

Scientific and Lab Supplies

Institution Memberships

Mail Transportation Services


Cardholder responsibilities

Cardholder Responsibilities

  • Directly responsible for appropriate card use

    • Sharing & lending cards isNOTallowed

  • Keep the purchasing card in a safe and secure location

  • Make allowable and appropriate purchases

    • Personal charges are STRICTLY PROHIBITED

  • Gather and assemble all supporting documentation (receipts, invoices, etc.)

  • Receive and inspect orders


Cardholder responsibilities1

Cardholder Responsibilities

  • Receive individual monthly memo statement from Bank of America

    • This is not a bill

  • Cardholder should mark the Index and Expense Codes on documents prior to submittal to the Controller’s Office

  • Surrender the card upon termination of employment or upon request by their Next-level Supervisor, Department Head or P-Card Administrator


Procedures place the order

Procedures: Place the Order

  • Purchases in Person

  • Purchases by Telephone, Fax

  • Purchases via the Web


In all p card purchasing situations

In all P-Card purchasing situations:

  • Verify sufficient funding exists in the specified budget and expenditure code

  • Identify if the purchase is appropriate for a p-card transaction

  • Check list of restricted purchases

  • Advise vendor that the P-Card is state sales tax exemptBEFOREthe transaction begins

  • Obtain detailed receipt and retain all documents


In all p card purchasing situations1

In all P-Card purchasing situations:

  • BEFOREyou make a p-card purchase, always ask a vendor if they are a 1099 reportable

  • 1099 reportable vendors arenot allowedon the P- Card

  • Guidelines to identify a 1099 reportable:

    • Company name is a person’s name

    • The word “Service” is in the company name

    • Company namedoes nothave “INC.”, “CORP”, or “PC”


Notes about sales tax

Taxes

Notes About Sales Tax

  • Some vendors may require a copy of the State sales tax exemption certificate

    • Request a copy by e-mailing Purchasing

    • If sales tax is charged, it is the cardholder’s responsibility to request a credit to the cardholder’s account


Required documentation

Required Documentation

  • Cardholders MUSTcollect itemized receipts for all P-Card purchases.

  • Document/Receipt examples:

    • Cash Register Tape

    • Detailed Packing Slip

    • Copy of Order Form (e.g. subscription)

    • Registration form

    • Web receipt or e-mail acknowledgement from vendor


Receipt details

Receipt Details

  • Receipts vary in appearance and type of information provided but generally included the following:

    • Date of purchase

    • Vendor name

    • Description of item(s)

    • Quantity, unit price, total

  • Must submit original receipts

  • Handwritten receipts are unacceptable


Procedures missing receipts

Procedures:Missing Receipts

  • Contact vendor to get a receipt- This is the fastest and simplest method

  • Copies of receipts are acceptable only when originals are not available or cannot be obtained


Paying with p card

Paying with P-Card

  • The vendor will require the following information when paying with the P-Card:

    • Name on the card

    • P-Card number and expiration date

    • Tax Exemption Number

    • Campus delivery address (if ordering items to be delivered

      University of Louisiana at Monroe

      Receiving Location (your name, department, building and room #)

      700 University Avenue

      Monroe, LA 71209


Procedures shipping

Procedures: Shipping

  • Shipments to a cardholder’s home areStrictly Prohibited

  • Shipments to other ULM locations and affiliated entities are permissible; must get receipts


Procedures returns credits

Procedures: Returns & Credits

  • The cardholder is responsible for contacting a vendor & arranging a return for replacement or credit:

    • DO NOTaccept cash in lieu of a credit

    • Request Return Authorization Number

    • Request credit receipt or slip

    • Credits will appear on future statements


Card maintenance

Card Maintenance

  • Use Cardholder Enrollment Form

    • Change of address

    • Name change

    • Replacement card request


Procedures dispute items

Procedures: Dispute Items

  • Contact the P- Card Administrator if there are any charges on your statement that you do not recognize.

  • P- Card Administrator will direct you to complete the Statement of Disputed Item form. (Located on the Purchasing Web Page under ULM Forms)

  • If the disputed amount is credited, you will see it on a future statement.


Lost or stolen cards

Lost or Stolen Cards

  • Notify Bank of Americaimmediatelyby calling:

    1-888-449-2273– anytime

    • Zero personal liability

    • Lost or Stolen Cards will be shipped to the P-Card Administrator

    • DO NOThave BOA reissue a card directly to you. All cards must be received and distributed by the P-Card Administrator.

  • Upon termination/transfer the card must be cancelled and returned to the Purchasing Department.


Other important information

Other Important Information

  • P-Card is to be used for official business only

  • WILL NOTaffect your personal credit

  • Violators of policies and procedures will be subject to disciplinary action

  • CAUTION VIOLATIONS:

    • Personal or unauthorized purchases

    • Split purchases

    • Alcohol


Other important information1

Other Important Information

  • Failure to comply with all P-Card policies and procedures may result in the following:

    • Payroll deduction

    • Account suspension/deactivation

    • Permanent loss of the card

    • Notification to administration, internal audit, and University police

    • Possible employment suspension or termination


Your purchasing card is not tied to your budget

Your Purchasing Card IS NOT Tied to Your Budget!

It is the responsibility of the budget unit cardholder to verify sufficient funding exists in the specified budget and expenditure code PRIORto initiating the Purchasing Card transaction.


Important dates

Important Dates

  • Billing Cycle 16ththrough the 15th of each month.

  • All statements and supporting documentation due in the Controller’s office not later than ten (10) business days after close of cycle.

  • Failure to submit documents in a timely manner will result in card suspension.

  • Statements not received with fifteen (15) business days may result in card cancellation.


Key contacts

Key Contacts

Bank of America

Report card lost or stolen:

1-888-449-2273

Larry K. Estess

P-Card Administrator

318-342-5141

[email protected]

Fax- 318-342-5218


Activating your card

Activating Your Card

  • Your card should already be activated when received

  • If you have any problems using your card contact P-Card Administrator


End of year note

END OF YEAR NOTE !!!

  • The last day to use your P-Card for this fiscal year 2012 is May 11th.

  • No card activity will be allowed until July 1, 2012.

  • All cards will be suspended the close of business May 11th and will be reactivated on July 2012 (FY 13).


Summary

Summary

  • You understand how the process works

  • Agree to follow all policies & procedures

  • Retain all receipts and all documentation related to your purchase


Questions

Questions?


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