Southern Methodist University Procurement Card Program

1. Southern Methodist University Procurement Card Program

2. SMU P-Card Training Topics Acquiring a pcard Transaction Limits Three Profiles Documentation Timeliness Pcard Don’ts Electronic Pcard Statements

3. Acquiring a Pcard • Cardholder must be permanent staff or faculty and have completed any probationary period • Card enrollment and agreement form must be filled out • These forms can be found @ www.smu.edu/purchasing • Agreement signed by the cardholder indicates that the pcard guide has been read and understood • The card will take 7-10 business days to arrive but can be rushed when necessary for a $25 fee • New cardholder will be required to pick up his/her card and sit through training

4. Transaction Limits • Transactions limits are assigned by the cardholder’s manager and/or financial officer • The maximum limit that can be assigned to a card is $5k per single transaction/ $25k per month • Some individuals have been given higher limits where it was considered necessary • These few exceptions were approved by VP of Business Finance • Limits can be increased on a temporary basis when needed up to the maximum limits when approved by the applicable Financial Officer • Temporary increases above the maximum limits may also be granted on a case by case basis when reviewed by Director of Purchasing for price reasonableness and approved by the VP of Business Finance

5. Three Profiles SMU One Card SMU Purchase Please know that with this profile assigned to the card certain Merchant Category Codes are blocked. The card would be declined at Hotels, Airlines, Car rental, etc. SMU Travel Please know that with this profile assigned to the card certain Merchant Category Codes are blocked. The card would be declined for Merchants such as Paypal, services performed on campus and other purchases not needed during travel.. Cardholder may use card for business travel only Card will be set to default to the traveler’s subclass • Cardholder may use card for both products and travel • Card will be set to default to the traveler’s subclass • Cardholder may purchase most products • Default is set to the cardholder’s most commonly used account-fund-org.

6. Documentation • Statement must have the original itemized receipt (even if Grant) for EVERY purchase • Business Meals must be approved by President, Vice President, Dean or Designee and business purpose and attendees must be documented. Please be specific. • Gifts must be approved by President, Vice President or Dean (this policy does not allow for a designee) and reviewed by Tax Compliance for proper tax treatment. Recipient of gift must sign acknowledging receipt and provide W9 when necessary. The gift documentation form can be found on the Tax Compliance website • Donations must be approved by the President. The proper form must be filled out, attached to statement and a copy of the form sent to Millicent Grant. If the donation is made to a not for profit organization, the entry must be posted to subclass 11100. • Professional memberships must be approved by the President, Vice President or Dean (this policy does not allow for a designee). • Each statement must be signed by the cardholder and their independent reviewer.

7. Timeliness • Billing cycle is the 20th of the month through the 19th of the following month. • If the 19th falls on a Saturday the closing date is moved to the 18th. • If the 19th falls on a Sunday the closing date is moved to the 20th. • On close of business all individual account balances are rolled into the central bill account and individual limits are refreshed. • Statements are placed in the mail, addressed to cardholder’s Campus PO Box, the day after close. • Statements are due 15 days after receipt • Email is sent to individual (in some cases FO or AFO) when statement reaches 30 days outstanding • Cards are subject to suspension when statement reaches 60 days outstanding • Repeat offenders or cardholders with statements outstanding 90 days or more are subject to permanent cancellation.

8. Pcard Don’ts • Greeting cards or floral arrangements – see policy 3.10 and 13.5 • Personal expenses - even if cardholder intends to reimburse the University • Gas for Personal Car • Texas Sales Tax-we have exemptions in other states as well. Those states as well as descriptions for the exemptions are found on the Tax Compliance website. • Interdepartmental Charges – anything purchased from another SMU department should be paid by means of an internal cross charge. • Splitting Transactions – A cardholder cannot allow a vendor to split one transaction into 2 or more transactions to stay within their single transaction limit. • If cardholder is caught splitting a transaction the card is automatically suspended for 6 months.

9. Electronic Statements • First pilot group will start in December • Training classes • Two classes will be held in December for the first pilot group • Two classes will be held in January for the second pilot group • Four classes per month will be held for the University beginning in February 2012. • Go live date is scheduled for May 2012 • Demo of the process