What About This Training

1. Initial Procurement Card TrainingUpdated September 2005Presented byDebbie TroboughBusiness Procurement Card Coordinator

2. What About This Training This is a Initial training session we will cover these items: • The intent of the procurement card program and basic rules. • Review findings from State of Missouri Auditor on our Procurement Card Program. • Review of your responsibilities as a cardholder, supervisor, department. • Forms, Listserve and other changes. • My name is Debbie and I am the Business Procurement Card Coordinator BPCC

3. Introduction The purpose of CMSU’s Procurement Card Program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar (under $1,000) transactions within established usage limits. Establish a viable non cash payment alternative system for the University

4. How to Obtain a Card • Your department/unit must indicate approval and advise the BPC Coordinator • Department fills out Account Action Request Form. • Forward form to the BPC Coordinator. • BPC Coordinator contacts the Bank. Upon arrival of card, training is scheduled. You fill out Cardholder Agreement Form and BPC is issued.

5. How to Cancel a Card • Notify BPC Coordinator of 1) Termination 2) Transfer 3) Job Duties-No procurement required. • BPC Coordinator deactivates the card • End user turns card into Department

6. How to Renew a Card • A renewal card will automatically be mailed to the BPC Coordinator. • BPC will provide the card to you.

7. Basic Rules for the Business Procurement Card Program (BPCP) • For the Cardholder as well as the overall success of the program please remember that the Procurement Card is NOT intended: • to avoid or bypass appropriate procurement or payment procedures. Rather, the procurement card complements the existing processes available. • to replace the currenttravel card. • for personal use.

8. Procurement Card Security • Only the authorized cardholder may use the card. • Cards and card numbers must be safeguarded against use by unauthorized individuals inthesamemanneryouwouldsecureyourpersonalcreditcard. • Departments may require BPC is secured in the department.

9. Report a Lost or Stolen Card? • 1. Immediately notify UMB Bank Security at 1-800-449-9176 • 2. Notify BPC Coordinator and the Accounting Office at 660-543-4684. • 3. Notify your supervisor. It is very important that this is accomplished immediately, because the cardholder is responsible for all charges made with the card.

10. Procurement Card Abuse Defined • To use the Business Procurement Card to purchase unauthorized items, products, and services or to use it at an unapproved merchantis considered abuse. • The willfulmisuse or wrongful use of the BPC will not be tolerated.

11. What Could happen if I Abuse the Card ? • BPC Coordinator could deactivate the card immediately and confiscate it within 24 hours.* • The end user could be responsible for paying for all of the unauthorized product or services.* • University purchasing privileges withdrawn and could not be allowed to apply for reinstatement of the BPC for a minimum of one year.* • *Awaiting final approval by CFO

12. What are My Responsibilities?-Receipt of Goods and Materials • Ensure you have received the correct goods and they are priced correctly • For all orders (telephone,on line internet,catalog) make sure complete shipping address and instructions are given along with your name, department name, address and phone number. Central Receiving is located at 108 W South Street. Contact receiving clerk Rosalie Hiatt at 543-4741. • Cover W5H1 • Who, What, When, Where, Why, How • Send a copy of order to Central Receiving - This is CRITICAL! • NO DOCUMENTATION!!! NO RECIPT OF GOODS !!!!!

13. Your Responsibilities- Record Keeping and Documentation • Cardholders must keep the purchasing paperwork i.e. • Sales slips • Cash register receipts • Invoices • Order forms • Receiving documents receipts • Et al

14. Your Responsibilities- Purchase Approval Process • Ensure items you purchase are listed and priced correctly. • Review charge receipts/cash register tapes. • If lost - obtain a copy of a charge or credit slip, call the UMB Commercial Cards at 1-800-821-5184. There will be a $10 charge for each copy. • Forward charge receipts to departmental designee.

15. Rejected Purchases • Cardholders may experience a purchase being rejected at the vendor’s place of business when the card transaction is run through the bankcard system. This could occur for the following reasons: • Purchase exceeds the $1,000 transaction limit (including all delivery, shipping and handling and/or special handling costs) • Purchase exceeds the monthly dollar limit established for the card. • Purchase has been requested from a vendor having a merchant category code not included on CMSU’s acceptable list of codes. • Purchase could have been rejected due to the wrong assignment of merchant category code to the vendor. • Contact the BPCC at the time of purchase!!!!

16. Your Responsibilities -Resolving Errors, Disputes, ReturnsandCredits Contacting and following up with the vendor on: • any erroneous charges • disputed items or returns as soon as possible. • If the cardholder is unable to reach agreement with the vendor, the next step is to contact the BPC Coordinator.

17. How will I use this card? • Scenario 1 - Walk up and carry out purchases -Wal Mart, Office Depot etc. • Scenario 2 - Catalog purchases - Viking orders (telephone/fax) • Scenario 3 - On Line Purchases - No PROBLEM! (BIG PROBLEM) Must forward copies of orders to Central Receiving. Check return policy before placing order.

18. What are the Department’s Responsibilities ? • Record Keeping and Documentation • Reconciliation and Approval Process • Audit a Procurement Card Transaction

19. Does My Supervisor have Responsibilities? • Department Head, Chair, Dean, Director or Manager will: • Identifying the cardholder and the limits to apply to the card. • Ensure transaction logs are complete. • Control spending through the bank summary review and maintains records. • Review cardholder transactions for appropriate charges and take action on abuse.

20. Missouri State Auditor’s Report • Seven of 10 four-year universities spent nearly $84 Million Dollars via the P Card • MU-All four campus, Truman State and Central Missouri State University were audited.

21. Missouri State Auditor’s Report Findings on CMSU: • Unauthorized purchases of food, gasoline and other items. • Purchases not supported with documentation. • Purchases exceeding cardholder limits. • Splitting orders to avoid bidding. • P Cards not used for extended periods.

22. Missouri State Auditor’s Report Recommendations for CMSU: • Ensure cardholders are trained on proper use of the card. • Departments to approve P Card purchases and require budget directors attend training. • Evaluate/analyze employee’s need for card on periodic basis. • Review and report compliance, identify problems make corrections.

23. The Forms and their Usage • VISA Purchasing Cardholder Account Action Request • Business Procurement Cardholder Agreement • Cardholder Dispute Form • Sales Tax Exemption Certificate • Business Procurement Card Summary Transaction Log • Cardholder Check list – NEW FORM • Requirement to sign up for P-Card ListServ

24. Using the P Card Forms • 1. Inspect the receipt to ensure charges are correct. • 2. Write the business purpose on the receipt. • 3. Turn in receipts to departmental designee. • 4. Place P Card Charge on the Log Sheet. • 5. End of the Month prepare Check List Form and review each charge of the month. • 5. End of the Month prepare the Summary Report

25. Procurement Card Transaction Log

26. Procurement Card Summary Log

27. Checklist Form