Weber State University PURCHASING CARDS No. 5-25i Rev. 03-31-99
Date 2-23-83

OLD VERSION

I. PURPOSE

To outline the policies for the Purchasing Card program, which allows individuals to have a credit card issued to them for the purpose of making purchases in behalf of Weber State University. The University is responsible for paying the issuing bank for purchases made using purchasing cards.

REFERENCES

Policy and Procedure 5-11, Reimbursement for Petty Cash Purchases

Policy and Procedure 5-12, Luncheons and Dinners

Policy and Procedure 5-25d, Restricted Purchases and Special Procurement

Policy and Procedure 5-25h and 3-36, Procurement from a Vendor In which a University Employee has an Interest /Conflict of Interest

Policy and Procedure 5-25e, Solicitation of Bids, Proposals, etc./Procurement Contracts

III. DEFINITIONS

A. Cardholder - A person to whom a University Purchasing Card has been issued.

B. Default Account - The 10-digit account number/subcode assigned to a cardholder. All charges made with a purchasing card will be posted into that card's default account by the issuing bank unless the purchase is reallocated.

C. Issuing Bank - The bank with whom the University has currently contracted for the purchasing cards.

D. Purchasing Card - A credit card issued to an individual employee of Weber State University for the purpose of making authorized purchases on its behalf. The University is responsible to make payments for all charges made using properly issued purchasing cards.

E. Purchasing Card User’s Guide ("Guide") - The document that contains instructions and guidelines for the use of the purchasing card.

F. Reconciler - The person assigned to review a cardholder's monthly charges. He/She may manage more than one cardholder’s account at the discretion of the account owner. A reconciler may or may not be a cardholder. A cardholder should not be His/Her own reconciler.

G. Responsible Person ("RP") - The person that is listed in the Accounting System as being responsible for funds in a particular account.

IV. POLICY

A. Background

A major purpose of the purchasing card program is to reduce the amount of paperwork incurred when making certain types of purchases for the University. This reduces costs in many ways including reduction of the number of purchase orders and checks that must be printed and issued, and reducing the number of invoices that must be matched and paid.

B. Description of Responsibilities

1. The Director of Purchasing, or his/her designee, is responsible for contracting with an issuing bank to support this program.

2. The Purchasing Card Program Coordinator, and/or their assistant(s) are responsible for:

a. Updating the University's information with the issuing bank when necessary (such as updating the list of signers that are authorized to approve limit increases, new applications, etc.).

b. Training cardholders and reconcilers.

c. Obtaining and verifying appropriate authorization signatures and completed application forms for each purchasing card that is requested.

d. Continually updating the Guide, Program Policies and Procedures, and obtaining appropriate approvals for all changes from all entities affected.

e. Assisting cardholders, reconcilers and others as necessary with problem resolution.

f. Serving as the primary liaison with the issuing bank, Administrative Computing, suppliers, using departments and any other parties that are involved in the program.

g. Responsible for designing all forms and other documents that are used, and for obtaining appropriate approvals for these as necessary, such as from Internal Audit and/or the Director of Purchasing.

h. Responsible for notifying the director of Purchasing, Internal Audit, and appropriate supervisor of the cardholder of violations or fraudulent card use.

i. Maintaining the following documents:

j. Preparing and sending management reports to the Director of Purchasing, Internal Audit and others as needed.

k. Providing assistance to companies that may not currently accept purchasing cards to get signed up with their respective banks.

l. Assisting suppliers and using departments with problem resolution on specific transactions.

3. The Accounting Services Department is responsible for:

a. Managing the electronic flow of transaction information from the issuing bank to the University's accounting system, including feeding the detailed transactions to the on-line review/reallocation system on a daily basis whenever possible.

b. Ensuring that the monthly electronic payment to the issuing bank balances with the daily transaction records.

4. The Responsible Person ("RP", refer to definition) for the default account that is assigned to a purchasing card is responsible for:

a. Selecting appropriate individuals within their department to receive purchasing cards (i.e. those with the responsibility of making the purchases and those who are backups for that function). The Department Head must also approve each person selected to be a cardholder (a space for his/her signature is included on the application form).

b. Establishing processes within their department or area to support the purchasing card system.

c. Notifying the Program Coordinator or his/her assistant(s) promptly of any known or suspected inappropriate or fraudulent use of a purchasing card.

d. Taking appropriate disciplinary measures with cardholders under their supervision who inappropriately or fraudulently use their purchasing cards (refer to section IV - E).

e. Reviewing, approving and signing the monthly statement for each cardholder under him/her in a timely manner.

f. Never requesting or directing a cardholder or reconciler to make a purchase or reallocation which violates any portion of the policy and procedures, the Guide, or any other relevant rules, regulations or guidelines.

5. The Reconciler is responsible for:

a. Maintaining the following documentation for four (4) years in their office and/or in archives in a manner that allows for efficient retrieval for auditing purposes:

b. Reviewing transactions on a regular basis and reallocating charges to appropriate and allowable accounts/subcodes as necessary.

c. Notifying the Program Coordinator or his/her assistant(s) promptly of any known or suspected inappropriate or fraudulent use of a purchasing card.

d. Acting as a liaison between the Program Coordinator and his/her assistant(s) as needed by forwarding information to each cardholder upon request.

e. Never requesting or directing a cardholder to make a purchase which violates any portion of the policy and procedures, the Guide, or any other relevant rules, regulations or guidelines.

f. Maintaining an updated version of the Guide, and promptly requesting a new copy if theirs is lost.

6. The Cardholder is responsible for:

a. Using the purchasing card in accordance with all pertinent policies, procedures, guidelines, etc. and insuring that purchases are in the best interest of Weber State University.

b. Promptly submitting monthly statements along with supporting documentation, such as receipts, telephone order records, transaction logs, and any reallocation information to the reconciler.

c. Maintaining an updated version of the Guide, and promptly requesting a new copy if theirs is lost.

d. Insuring that sales tax is not charged at the time of purchase, or requesting a credit promptly from the supplier, if sales tax is included in error.

e. Willingly surrendering the card upon termination of employment, or upon change in employment that no longer includes the purchasing function, or upon request from the Program Coordinator, Internal Audit, or from their supervisor.

f. Notifying the Program Coordinator promptly of any known or suspected inappropriate or fraudulent use or loss of a purchasing card.

g. Promptly reporting to the Program Coordinator (confidentially, if necessary) any request or direction by his/her supervisor(s) to use the card in an unallowed or fraudulent manner.

C. Management Reports

The Program Coordinator and/or assistant(s) are responsible for generating and distributing monthly, quarterly and annual management reports to the director of Purchasing, and others as needed, in a timely manner to facilitate the continuous review of the program. The reports which can be generated are maintained by the Program Coordinator and may, from time to time, be updated as software capabilities allow and as circumstances require.

D. Purchasing Card User's Guide

1. The Guide is written and maintained by the Program Coordinator. The current Guide and any appendixes are incorporated into this policy by this reference. All changes to the Guide will be forwarded in a timely manner to each cardholder, reconciler and other pertinent individuals and departments, such as Internal Audit.

2. The purpose of the policies and procedures listed in this section are to outline items that are not referenced in the Guide. The Guide includes:

a. Name of the currently contracted issuing bank.

b. Phone numbers for customer service for the issuing bank and for the University.

c. Instructions for keeping the purchasing card secure while in the cardholder's possession.

d. Information and form regarding the University's sales tax exemption status.

e. Detailed list of limitations on all cards and on each individual card.

f. General purchasing guidelines.

g. Forms and instructions regarding the handling of disputed transactions.

h. Instructions regarding the relevant accounting and reallocation procedures.

E. Inappropriate or Fraudulent Use of Purchasing Cards

In the event that a purchasing card is used inappropriately or fraudulently, the procedures described below must be followed:

1. The Program Coordinator will be notified promptly, who will in turn notify in writing the director of Purchasing, Internal Audit and the cardholder's appropriate supervisor.

2. The cardholder will be disciplined in one or more of the following ways:

F. Canceling a Purchasing Card

1. Reasons for canceling a Purchasing Card

a. Voluntary termination

b. Involuntary termination

c. Transferring to position or department which no longer requires use of purchasing card

2. Process for canceling

a. Voluntary termination: The Cardholder must surrender their purchasing card to the Program Coordinator or/assistant at time of termination.

b. Involuntary termination or transferring to a department which no longer requires use of card: The Cardholder's Supervisor must 1) Take possession of the cardholder’s purchasing card and 2) Return the card to the Program Coordinator with written notice that the card should be canceled.

c. The Program Coordinator must 1)Wait an appropriate time for all purchases that were made with the card to be processed by merchants (approximately 4 days) and 2) Submit a form to the issuing bank to cancel.

G. Employee Transfers

1. If a cardholder is transferred to a new position within the department or another department and will still need to make purchases using a purchasing card, the same card should be used. The Cardholder's Supervisor or his/her designee, must promptly notify the Program Coordinator if there are changes to be made (such as the cardholder's address, default account, etc.).

2. If a cardholder is transferring to a new position within the department, but will not have the same supervisor, and/or will no longer be purchasing items for the department the card must be retrieved and canceled as described in section IV - F2.

H. Other

The following individuals may not become cardholders or reconcilers:

a. Purchasing Card Program Coordinator

b. Assistant Purchasing Card Program Coordinator

c. Any individuals with approved access to the purchasing card management software