PURCHASING CARD
6.06.01 - Purpose
6.06.02 - Regulations
6.06.03 - Obtaining A Purchasing Card
6.06.04 - Training Prior To Receiving The Card
6.06.05 - Charge Slips
6.06.06 - Reconciling The Monthly Statements
6.06.07 - Dispute Charges, Credits, and Returns
6.06.08 - Ordering Process
6.06.09 - Sales Tax
6.06.10 - Exceptions To Approved Purchases
6.06.11 - Card Information Revisions
6.06.12 - Card Renewal
6.06.13 - Termination of Employment
6.06.14 - Lost/Stolen Cards
6.06.15 - Purchasing Card Violations
Section 6.06.01 PURPOSE
The purpose of the Georgia College & State University (GCSU) Purchasing Card Program is to establish a more efficient, cost-effective method for purchasing and paying for small dollar-value transactions.
All purchasing cards are the property of GCSU.
Bank of America is the provider of the GCSU purchasing cards.
The card, although not a credit card, functions in much the same way as a credit card. However, personal charges are strictly prohibited.
The card is a Visa purchasing card and is readily recognized and accepted by most vendors.
Technology provides the ability to encode each card with the following controls and limitations, which enables the card to be tailored to departmental needs:
Spending Limit per Transaction
Credit Limit
Number of Transactions Allowed per Day
Number of Transactions Allowed per Billing Cycle
Merchant Category Restrictions - Used to restrict certain businesses and commodities.
At the point-of-sale, the Visa system validates the transaction against these pre-set controls.
Section 6.06.02 REGULATIONS
Each card is assigned a specific default account number. The same default account number can be assigned to more than one card. Each purchase made on the card is automatically charged to this account. However, prior to the transactions being posted by Accounts Payable, departments may edit/change the assigned account number.
Please remember all purchases made with the purchasing card are charged to your budget just like any other purchase. Before using the purchasing card, make sure there are funds in your budget to cover the purchases.
The Purchasing Card may be used to make purchases from any vendor who accepts the card. Cards can be used in person, over the phone, via the internet or by mail. Vendor questions regarding purchasing authority, and/or limitations and restrictions should be directed to the Purchasing Department. Departmental requests for special purposes and increased limits should also be directed to the Purchasing Card Coordinator.
Generally all goods and services costing $2999.99 or less may be purchased with the card. However, State Law does restrict the use of the purchasing card for certain merchant categories and certain types of commodities and services. See Attachment 1 for a list of these restrictions.
· No single purchase shall exceed your predetermined limit and at no time may exceed $5000.00. Circumventing the $5000.00 by splitting a large order into two or more orders will lead to revocation of the P-card.
· Equipment costing more than $2999.99 may not be purchased with the P-card.
·Statewide contracts should be used if available. Most items covered by Statewide Contracts may be purchased with the card. (To verify whether or not an item is covered by a contact, call the Purchasing Department at 4458.)
· Unauthorized/illegal purchases will be returned for credit or paid for in full by personal check made payable to GCSU from the cardholder. Failure to reimburse the University may result in funds being deducted from the Cardholder's paycheck. Continued unauthorized/illegal purchases will result in revocation of the Purchasing Card along with other disciplinary action.
· The Division of Information Technology and the Purchasing Department has developed a procedure to help the campus community purchase software and/or downloads under $1000 on their purchasing cards. If users would like to purchase software (download or media) on their purchasing card, they will need to complete the Software Purchase With A Purchasing Card form located at: http://devl.gcsu.edu/wu/dts/software_purchase.xls. After completing the form, please forward to the Chief Information Officer for approval. The approved form will be sent back to the department for processing.
· Airline travel is allowed with the approval of cardholder’s Vice President. Cardholder must fill out the Cardholder/Profile Change Request Form (Attachment 4) and submit to his/her approver and Vice President. Once approval is received by the Card Administrator, cardholders profile will be changed to allow airline travel. If cardholder purchases airline tickets, he/she must turn in receipt and authorization to travel approval with summary.
Section 6.06.03 OBTAINING A PURCHASING CARD
A purchasing card may be obtained from the Purchasing Card Coordinator in the Purchasing Department by completing the Cardholder Request Form (Attachment 4). Permanent employees who have completed their six month probationary period may obtain a card with proper approvals.
For New Cardholders
Effective July 1, 2008, criminal background investigations and credit checks are required for all new cardholders. If an employee has a criminal background and credit check completed at time of hire by Human Resources, then further investigation may not be required at the time the card is issued.
For Existing Cardholders as of July 1, 2008
Criminal background investigations will be conducted prior to each cardholders renewal date (currently every two years). To simplify this process GCSU will conduct a criminal background investigation on all existing cardholders prior to November 30, 2008. Per policy, GCSU will conduct another criminal background investigation every two years thereafter.
Process for Conducting Criminal Background Investigations and Credit Checks
The criminal background investigation will be processed by Human Resources through an external vendor. The information contained in the investigation report is confidential and will remain in Human Resources. The Purchasing Department will be issued a clearance regarding employee eligibility. No other information will be disclosed to Purchasing or to the cardholder's department.
The employee must get the approval from the appropriate Dean, Director, or Vice President. The appropriate supervisor must approve the card limits. In the case of a Vice President applying for a card, the President's approval is required.
The Purchasing Department, the Purchasing Card Coordinator and the Bank of America will review the request. Upon approval, applicant must complete online training course. The Purchasing Card Coordinator will forward a Purchasing Card Policy and Procedure Manual to the applicant to read prior to training. Once the card has arrived, the Purchasing Card Coordinator will schedule a training session for the applicant and his/her approver.
The card will be issued in the name of the University with the applicant listed as the user. The cardholder is responsible for any and all charges including unauthorized, personal and inappropriate purchases made through the use of the card by the cardholder.
Section 6.06.04 TRAINING PRIOR TO RECEIVING THE CARD
Each recipient and approver of a GCSU purchasing card is required to attend a training session conducted by the Purchasing Card Coordinator. The training focuses on the basic use of the card and the responsibilities associated with it. After completion of the training, each recipient is required to sign a Cardholder User Agreement (Attachment 2), which spells out the responsibilities of each cardholder.
Annual Training
Cardholders are required to undergo refresher training once a year. This can be accomplished by taking the online refresher course or by attending a refresher training class held by the Purchasing Card Coordinator. Failure to receive refresher training will result in card cancellation.
Section 6.06.05 CHARGE SLIPS
The cardholder is responsible for obtaining a detailed charge slip or invoice for each purchase made using the card. These charge slips or invoices will be forwarded to the Purchasing Card Coordinator at the end of each billing cycle. Any purchase made for which a charge slip or invoice is not available at the end of the billing cycle becomes the personal responsibility of the cardholder. Accounts Payable will maintain Purchasing Card Summaries for at least 5 years.
An explanation of each purchase should be fully detailed on the supporting documentation. If incomplete, the approving official or the Purchasing Card Coordinator may contact you for an explanation of the charges.
Section 6.06.06 RECONCILING THE MONTHLY STATEMENT
One copy of the monthly billing statement will be sent to the cardholder who will do the following:
A. Compare the items on the statement with the copies of the receipts received and retained by the cardholder during the billing cycle.
B. Prepare a Purchasing Card Account Summary form (Attachment 3) and forward the statement and original copies of the charge slips to the approving official, in most cases this is your immediate supervisor, for signature prior to the 15th of the month. The approving official checks receipts to ensure purchases were business related. If purchases are valid, the approving official forwards signed summary to the Purchasing Card Coordinator. (A copy of the summary and charge slips should be retained for the department records.) If the summary is not received in the Purchasing Department prior to the 15th, the cardholder will receive an email stating that if he/she is late again the next month the card will be cancelled.
6.06.07 DISPUTED CHARGES, CREDITS, AND RETURNS
The cardholder is responsible for contacting the vendor for any disputed charges or other items such as credits and returns. Disputed charges may result from failure to receive goods or services, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. The cardholder should get vendor to credit purchasing card for the disputed charges. Under no circumstances should there be a direct refund from suppliers.
Disputes can usually be resolved by contacting the vendor. However, if the cardholder is unable to reach an agreement with the vendor, the Purchasing Card Coordinator should be notified.
All disputed charges must be submitted to the Purchasing Card Coordinator within sixty (60) days of the date of the statement on which occurred. The Purchasing Card Coordinator will contact the Bank of America on behalf of the cardholder.
Note: By law, vendors are not permitted to charge your card for purchases until the items have been shipped.
6.06.08 ORDERING PROCESS
The purchasing card may be used to purchase goods or services in person, over the phone, via the web or by mail. When making a purchase, please be sure to provide the vendor with the following information:
A. Identify yourself as a GCSU employee.
B. Inform the vendor you are making a university purchase using a GCSU Purchasing Card.
C. Inform the vendor the University is tax exempt and give the University's tax-exempt number, which is 58-6002064.
When making a purchase by phone or internet, provide the vendor with the following additional information:
D. Individual card number and expiration date.
E. Complete delivery address (320 N. Wayne Street). Advise vendor that your name must be on the shipping label.
The final step of a phone order should be:
A. Verify that all items ordered area available for shipment. (NO Backorders.) Backordered items should be ordered separately.
B. Verify the total charges, including any shipping/handling, etc.
C. Request the vendor to include the invoice with your shipment.
An "Activity Log" or similar document is recommended for departments that make frequent purchases. See Attachment 5 for an example of an activity log. Such a log can be helpful in verifying orders when received.
Section 6.06.09 SALES TAX
Georgia College & State University, as an agency of the State of Georgia, is exempt from Georgia sales tax. The sales tax exempt number is 58-6002064. Vendors may receive a tax-exempt certificate by contacting the Purchasing Department at 4588.
Section 6.06.10 EXCEPTIONS TO APPROVED PURCHASES
If cardholders would like an exception to purchase goods or services that are prohibited by policy, he/she must fill out a Cardholder Special Approval Request Form. When completed, the request will be forwarded to State Purchasing for approval by the State of Georgia Purchasing Card Administrator. Once a response has been received from State Purchasing, the Purchasing Card Coordinator will contact the cardholder. If approved, this will be a limited approval. This approval must be obtained prior to making the purchase.
Section 6.06.11 CARD INFORMATION REVISIONS
On occasion, it may be necessary to change information on a card. In this case, the cardholder must send the Purchasing Card Coordinator a completed New Card/Change Request Form (Attachment 4). Once received, the Purchasing Card Coordinator will forward to BOA for processing.
Section 6.06.12 CARD RENEWAL
New cards are issued for a designated period of time. Upon expiration, they are automatically renewed for a similar period.
Section 6.06.13 TERMINATION OF EMPLOYMENT
Should a cardholder terminate employment with the University, the cardholder's manager has the specific obligation to notify the Human Resource Department and/or the PCA of the employee's resignation or termination. This will ensure the card is cancelled prior to the employee leaving the university.
Section 6.06.14 LOST/STOLEN CARD(S)
If a card is lost or stolen, the cardholder has the responsibility to notify the Bank of America 24 hour service at 800-538-8788. Be sure to keep this telephone number and your credit card number in a file for reference. The Purchasing Card Coordinator will not give out purchasing card numbers over the telephone.
Section 6.06.15 - PURCHASING CARD VIOLATIONS
GCSU expects every individual cardholder to strictly adhere to policies and guidelines governing the use of the State Purchasing Card. Failure to do so may result in disciplinary action up to and including termination of employment. Additionally, such failure could result in prosecution to the fullest extent of the law, including financial restitution of criminal prosecution.
Violations of policies and procedures governing the use of the Purchasing Card can be classified as minor or major. The action taken is dependent upon the type of violation and the number previous cardholder violations. The Purchasing Card Coordinator can suspend a cardholder's privileges with or without input from the department head: however, the department head will be notified of any such action.
Any suspected fraud should be reported to the Purchasing Card Coordinator. The Purchasing Card Coordinator will report these charges to the Internal Auditor and the State Purchasing Program Coordinator. Any alleged violation or questionable transaction could result in an immediate suspension of card privileges pending a review to determine what, if any, action is appropriate.
Listed below are examples of minor and major violations:
Minor Violations
Minor violations are instances that are accidental and without willful intent, or a delinquent reconciliation process.
Using the wrong credit card when doing personal shopping and usually includes immediate discovery and notification of the PCA.
Purchases with the card that should be made through the purchase request system.
Failure to turn in account summary information by the 15th of the month.
Major Violations
Purchasing unauthorized or restricted items.
Splitting order to avoid the single transaction limits
Allowing others to use the card
Knowingly making personal purchases
State of Georgia Purchasing Card Policies
Attachment 1
Purchasing Card Restricted Purchases
*Restricted Businesses
Florist
Liquor Stores
Grocery Stores (Allowed for Athletic Teams and Student Activities)
Insurance Agencies
Restaurants (Allowed for Athletic Teams and Student Activities)
*Restricted Commodities
Cash Advances
Gift Cards
IT Hardware Purchases (Software under $1000 allowed by following procedures in Purchasing Regulations item 5)
Food (Allowed for Athletic Teams and Student Activities)
Personal items
Cellular Phones and related monthly charges
Gasoline
Insurance
Meals (Allowed for Athletic Teams and Student Activities)
Hotel Rooms (Allowed for Athletic Teams)
Equipment costing $3,000 or more
Personal use items such as radios, coffee pots, microwave ovens, lamps, rugs etc.
Firearms and explosives
Services involving an employer/employee relationship
Holiday Decorations and cards
Plants and cut flowers for office use
*All Exceptions must have the approval of the State Purchasing Department prior to purchase.
Attachment 2
State of Georgia Cardholder Purchasing Card Agreement
The State of Georgia is pleased to present you with this Purchasing Card. It represents trust in you and your empowerment as a responsible agent to safeguard and protect State of Georgia assets.
I, , Card Number ,
hereby acknowledge receipt of a Georgia College & State University Purchasing Card, which is a VISA ® card issued by Bank of America, that will only be used to acquire materials and supplies for Georgia College & State University. I agree to comply with the following terms and conditions relating to my use of the Purchasing Card.
As an authorized cardholder, I agree to comply with the terms and conditions of this Agreement and with the provisions of the Purchasing Card Policy and Purchasing Card User's Guide. I have received a copy of the Purchasing Card Policy and confirm that I have read and understand its terms and conditions. In addition, I have completed the required Purchasing Card Training.
I understand that Georgia College & State University is liable to Bank of America for all charges I make on the Purchasing Card.
I agree to use the Purchasing Card for authorized official business purchases only and agree not to charge personal purchases. I authorize Georgia College & State University whatever steps are necessary to collect an amount equal to the total of the improper purchases, including but not limited to declaring such purchases an advance on my wages to the extent allowed by law.
I agree to notify Georgia College & State University Purchasing Card Program Coordinator at 478-445-4458 or mark.meeks@gcsu.edu if my name or contact information changes. I further acknowledge that name changes will require proof of change, i.e. copy of marriage license and/or decree of legal change.
If the Purchasing card is lost or stolen, I will immediately notify Bank of America at 1-888-449-2273. I will also notify Georgia College & State University Purchasing Card Program Coordinator, in writing, at the first opportunity during normal business hours.
I understand that improper or fraudulent use of the Purchasing Card may result in disciplinary action, up to and including termination of my employment. I further understand that Georgia College & State University or State Purchasing may terminate my right to use the Purchasing Card at any time for any reason.
I agree to surrender the Purchasing Card immediately upon request or upon termination of employment for any reason.
Agreed and accepted this day of , 20 .
Cardholder:
Signature: Date:
Print Name: Date:
Department:
Approving Authority:
Signature: Date:
Print Name: Date:
Department:
Purchasing Card Program Coordinator:
Signature: Date:
Print Name: Date:
Department:
Attachment 3
PURCHASING CARD ACCOUNT SUMMARY
714100 - supplies
727110 - registration
727120 - subscriptions
727130 - memberships
727250 - advertising
727100 - non consumables greater
than $300.00
Date:_______________
TO: Accounts Payable
Credit Cardholder___________________________________
Charge departments as shown:
Department/manager Account Number Amount
__________________ _______________ _______
__________________ _______________ _______
__________________ _______________ _______
__________________ _______________ _______
__________________ _______________ _______
Signed by:_______________________________________________
Credit cardholder
Approved by:_____________________________________________ Cardholder's Supervisor
*****The statement and original copies of charge slips MUST be attached to this form and forwarded to Purchasing, Campus Box 31.
Attachment 4 State of Georgia |
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Purchasing Card Program |
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CARDHOLDER / PROFILE CHANGE REQUEST FORM |
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Department Name: |
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Check the appropriate box for the type of request: |
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New Cardholder Request |
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Cardholder Profile Change Request |
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Cardholder Name: |
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Cardholder Signature: |
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Cardholder Department Mailing Address: |
Cardholder Phone Number: |
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Cardholder Email Address: |
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Default Account: |
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Default Category / Account Code: |
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Single Transaction Limit: |
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Monthly Credit Limit: |
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Departmental/Divisional Supervisor Name: |
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Department Manager Name: |
Signature: |
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IMPORTANT: |
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Form will not be considered complete until all required signatures are affixed. |
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Email, Fax or Mail form to: |
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Mark Meeks - mark.meeks@gcsu.edu - Fax 478-445-1931 - Campus Box 31 |
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FOR OFFICIAL USE ONLY |
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By: |
Title: Purchasing Card Program Coordinator |
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11/07 - Materials Management |
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