Paul Schell

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CWU Purchasing Card Training for Cardholders and
Managers

• Paul Schell
• Purchasing Manager

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Purchasing Cards at Central Washington University

• Why Do We Use Them?
• How Do We Use Them?
• Reports Queries
• Questions/Feedback

3
Always try to see the glass half full.
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Vocabulary

• Cardholderperson whose name is on the card
• Approving OfficialCardholders supervisor
• PBAPrincipal Budget Authority (See the Budget
  Office website)
• JP Morgan ChaseThe bank that provides the card
• PaymentNetWebsite for reconciliation and
  reporting

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Why Use Purchasing Cards?

• Purchasing Cards streamline the procurement
  process
• Departments want quicker turnaround, more
  flexibility, less paper
• Purchasing wants to focus on areas where they can
  add the most value
• Save taxpayers money

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P-Cards Streamline the Purchasing Process

• Steps in a Purchase Order Transaction
• Steps in a Purchasing Card Transaction
• Benchmark Statistics
• CWU PO P-Card Statistics

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• The Steps in the Purchase Order Process
•  
• End-user generates requisition number
  (ITS-created utility)
• End-user completes manual requisition (Excel
  spreadsheet)
• End-user signs and routes requisition to
  approving official(s)
• Approving official(s) approves and signs
  requisition
• Approving official routes requisition to Budget
  Office or Grants Contracts
• Budget office enters requisition into log (Excel
  spreadsheet)
• Budget/Grants office checks for adequate funds
  (PeopleSoft)
• Budget/Grants office checks account coding
• Budget/Grants office signs requisition
• Budget/Grants office routes requisition to
  Purchasing Office
• Purchasing enters requisition into log (Excel)
• Purchasing creates and signs PO (PeopleSoft)
• Purchasing faxes PO to vendor
• Purchasing verifies that vendor received PO
• Central Receiving receives the item in Jongeward
• Central Receiving enters receiving info.
  (PeopleSoft)
• Central Receiving delivers the item to the
  department

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• The Steps in the Purchasing Card Process
•  
• End user places the order directly
• Vendor paid immediately
• Vendor delivers item directly to department
• End user enters accounting information into
  PaymentNet
• Accounting info is fed directly into PeopleSoft

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More Flexibility/Quicker Turn Around

• The PBA delegates to the cardholder the authority
  to purchase small dollar items

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Indulge in the things you truly love.
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What Can I Buy With the Card?

• Abstract fees
• Batteries
• Books, directories
• Calendars
• Conference registration fees (Documentation of
  pre-approval required)
• Photo film processing
• Film and video purchases
• Film and video rentals
• Freight and shipping charges
• Hardware items (nails, small hand tools, etc.)
• Instructional, lab and research supplies
• Memberships, dues and subscriptions
• Office supplies and accessories
• Permission to reprint materials

• Pre-approved employment advertising
• Pre-printed pamphlets
• Pre-printed tests
• Pre-printed tickets or blank ticket stock
• Replacement parts for non-computer related
  equipment
• Sales tax for vehicle purchase
• Stamps and postage
• Surge protectors, non-ergonomic replacement mice
  and keyboards, cables
• Tank rentals (Oxarc)
• Not Allowed on the Card
• Cash transactions
• Personal purchases
• Purchases from the cardholders family

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Value of Purchasing

• 80 of the G S allocation is spent on 20 of the
  procurements
• Focus on Larger Procurements
• More Contracts
• Better Contracts
• Contract Administration

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Save Taxpayers Money

• Benchmark Study
• Richard PalmerUniversity of Eastern Illinois
• Last 2 benchmark studies Government Education
• Average p-card transaction costs 25
• Average requisition transaction costs 92

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Card Use at CWU

• 2001/2002 p-card transactions 6199
• 2001/2002 p-card spend 757,217
• 2002/2003 p-card transactions 8175
• 2002/2003 p-card spend 1,115,735
• 8000 POs generated in the last two fiscal years
  
• (15 POs per day, 72 per week)
• About 50 of those POs were for less than 500
• About 70 were for less than 1500

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Card Use at CWU

• 2003/2004 to date
• 2003/2004 p-card trans 4867
• 2003/2004 p-card spend 714,681
• 326,089 PBA, AO, Cardholder, Purchasing and
  Budget salaries

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Why Use Anything BUT Purchasing Cards?

• Purchasing 101
• Why some items arent allowed on the card.

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Competitive Procurement
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Services

• Repairs, alterations and maintenance
• Need to manage riskinsurance requirements
• Contracts
• Recommended for all services
• Required for all personal services over 500

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Laugh often.
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Equipment

• Used Equipment
• Must assess market value
• Trade ins must be tracked
• Assets
• Many items 300 must be tagged by Property
  Management
• Accountable for Inventory

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Furniture

• Standards
• Long-term value
• Uniformity
• Installation requirements
• Ergonomic considerations

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Information Technology

• Delegated Authority
• Only ITS is authorized to approve hardware
  purchases
• There may be compatibility issues
• Some software OK if approved in advance via email

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Travel

• Airfare
• Rental vehicles
• Lodging
• Shuttles
• Meals

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Items Requiring Pre-Authorization

• Marketing of any kind
• Gifts, donations, awards, contributions
• Hosting/Entertaining
• Live lab animals

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Miscellaneous

• Payments to individuals, employees or students
• Items to be installed
• Fines, late fees, penalties, interest, finance
  charges
• Artwork antiques
• Ergonomic keyboards

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Close your eyes and smile at least once a day!
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On-Campus Resources

• Printing Duplicating
• Graphics Media
• Dining Services
• ITS
• Surplus Property
• Motor Pool
• Travel Desk
• Dept. charged via charge credit

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Liability

• WHO IS LIABLE FOR THE CARD?
• The card belongs to the university, not the
  individual. When the cardholder leaves the
  university, or transfers to another department,
  the card is returned to the program
  administrator.
• The cardholder is not personally liable for the
  card unless s/he makes an unauthorized
  purchase.  The university is liable for any
  fraudulent charges made on the card if it is lost
  or stolen.

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PBA Responsibilities

• Ultimately responsible for appropriate card use.
• Approves the appropriate level of signature
  authority for the cardholder.
• Approves the cardholders purchasing card
  application and agreement.
• Approves the cardholders initial per-transaction
  and monthly transaction limits, and any temporary
  or permanent increases to those limits.

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AO Responsibilities

• Assures appropriate and responsible use of card
• Assigns the appropriate level of signature
  authority to the cardholder.
• Approves the cardholders purchasing card
  application and agreement.
• Assigns per-transaction and monthly transaction
  limits.
• Establishes procedures for keeping the card
  secure.
• Verifies that original detailed receipts are
  present for each transaction and signs log.
• Ensures that the cardholder or substitute has
  reviewed transactions online by the 3rd working
  day of each month.
• Ensures that all documentation is kept on file
  for six years.
• Takes the recommended and/or appropriate
  corrective action if any irregularities are
  discovered.
• Informs the program administrator if a cardholder
  or approving official terminates employment or is
  transferred.

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Cardholder Responsibilities

• Directly responsible for appropriate card use.
• Keeps the purchasing card in a safe and secure
  location.
• Makes allowable and appropriate purchases.
• Receives and inspects orders.
• Arranges for returns and credits when necessary.
• Reviews transactions online, or arranges for
  substitute reviewer
• Gathers and assembles all supporting
  documentation.
• Requests updates to transaction limits or project
  IDs if needed.
• Reports immediately a lost or stolen card or any
  unusual card activity.
• Surrenders the card upon termination of
  employment or upon request by the approving
  official or PBA.

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Procedures for Using the Card

• Resources
• Placing Orders
• Receiving Inspecting Orders
• Reviewing Transactions Online
• Avoiding Fraud
• Preparing for Review

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Remember, on a bad day you are almost never alone!
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Resources CWU Purchasing Card Handbook

• Cardholder, Approving Official PBA
  Responsibilities
• CWU Policies Procedures
• Review procedures

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Resources JP Morgan Chase Learning Website

• Fundamentals and tools used for reviewing
  transactions, running reports and queries, and
  more.
• Link found on Purchasing website
• Use PaymentNet user id and password

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Resources PaymentNet Quick Reference Guide

• System Requirements
• Logging in
• Navigating
• Reports Queries
• Link found on Purchasing website

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Resources PaymentNet Cardholder/Manager
Placemat

• Condensed version of the Quick Reference Guide

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Procedures Place the Order

• Have items delivered to your departmental address
• If card declined, call PaymentNet
• CWU is not tax exempt
• Record purchase on Departmental Purchases Log
  (Excel)
• Inform others
• Receive email confirmation/request to review from
  PaymentNet

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Procedures Receive, Inspect Document Receipt
of Order

• Work out any problems with the vendor
• Returns credited to cardno cash back
• Obtain itemized receipt
• Vendor name, address and phone
• Date of purchase
• Description of each item purchased
• Per-item cost, if available from vendor
• Record receipt in log initial

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Dont be overly concerned with your weight, its
just a number!
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Procedures Lost/Missing Receipts

• Try to get a receipt from the vendor
• Attach Affidavit of Lost Receipt Form
• Link to form available on Purchasing web site
• Attach packing slip if available
• Attach copy of order form
• Attach a piece of product packaging

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ProceduresDisputes

• Dispute transaction within 60 days of post date
• Work with merchant first
• Dispute the charge online
• Resolution usually occurs within 60 days
• Charges must be reviewed and accounting codes
  assigned when paid and when credited back
• Link to JP Morgan Chase Disputes Document on
  Purchasing website

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Reconciliation Demo
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What About Fraud?

• PaymentNet Fraud Document available on the
  Purchasing website
• Types of fraud
• What the Fraud Dept does at JP Morgan Chase
• If invalid charges are identified
• Affidavit of credit card fraud

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Fraud Tips for Cardholders
Important Tips for Cardholders  

• Fraud often begins with one small transaction
• Review transactions when notified by email
• Keep email, phone number address updated with
  JP Morgan Chase
• Sign your cardit must be signed to be valid
• Keep your card secure at all times
• The only authorized user is the one whose name
  appears on the card

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Fraud Tips for Cardholders

• Be aware of the arrival date of your new card
• Contact JP Morgan Chase immediately if you
  suspect fraud
• Shred documents/receipts with card number before
  disposal
• If possible, call rather than fax your card
  numberand you initiate the call.
• Fax the last 10 digits and call with the first 6

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Always try to help a friend in need.
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Budget Reports

• What do purchasing card transactions look like on
  the Monthly Project Activity Report?
• REF POXXXXXX
• LINE DESCRIPTION (what you input in
  description field)
• VENDOR Commercial Card Services
• INV PCARDXXXXXXX

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The Review Process

• Cardholder keeps all documentation on file for 6
  years
• Accounts Payable will review each card at least
  once per year with prior notice
• About 10 of transactions will be reviewed

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The Review

• What Documentation Must be Kept?
• Signed Departmental Log
• Bank Statement
• All Original Receipts
• Explanatory Notes
• Packing Lists
• Credit/Return Memos
• Affidavit of Lost/Missing Receipt

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What Happens During the Review?

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What Do We Look For?

• ___Transactions were reviewed by 3rd working day
• ___Purchases are allowable
• ___Transactions were not split to circumvent card
  limits
• ___Transactions were not split to avoid bidding
• ___All documentation is present
• ___Use tax is allocated correctly
• ___No personal purchases
• ___No fiscal misconduct or fraud

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Recommended Action

• ___Verbal notification of problem
• ___Written notification of problem
• ___Refresher Training
• ___Reduce Card Limits
• ___Deactivate Card Until (Date)
• ___Revoke Card
• ___Reimburse Project Budget
•  

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Hierarchies

• Each cardholder, AO, PBA, VP and president is
  assigned to a hierarchy
• Hierarchy Structure Organizational Chart
• Hierarchy ID Department ID or indicates
  divisional series of dept. IDs

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Hierarchies
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Access Roles

• Each cardholder, AO, PBA, VP and president is
  assigned an access role
• Access roles determine which functions the user
  is able to perform in PaymentNet

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Access Roles
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Hold onto good friends, they are few and far
between!
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Reports Queries

• Reports
• Provided by PaymentNet
• Queries
• Written by you in PaymentNet

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Reports

• Available Reports Include
• Transaction Detail with Addendum
• Transaction Detail with Account Codes and Notes
• Cardholder Listing by Hierarchy
• Transactions by Hierarchy

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Queries

• Transactions by Project ID
• Transactions by Account Code
• Transactions by Month Name
• Transactions by Merchant Name

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Reports Queries Demo
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How Do I Get a Card?

• Establish signature authority for each project by
  submitting the Signature Authorization Form to
  the Budget Office.
• Complete the Cardholder Agreement and Application
  forms and submit them to Purchasing.
• Your new card will be mailed to Purchasing and
  you will be notified when to pick it up.
• The card will be valid for 24 months. A new card
  should arrive before the original expires. If
  not, call Customer Service at 800-270-7760.
• Card will be surrendered on termination of
  employment.

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Summary

• Purchasing cards make sense
• Get your application today!

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Need More Information?

• Phone extension 1001
• Email purchasing_office_at_cwu.edu
• Website http//www.cwu.edu/purchase/

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Questions or Feedback?
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Be weird whenever you have the chance