Pcard Basics

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Procurement Card (PCard) Cardholder Training
Certification 2009 Please note This version is
for review purposes only. Training for a new card
or annual re-certification must be completed via
the OOD Trainsweb site at http//www.trainsweb.ga
tech.edu/?pagelogin so that a record of the
training exists.
Using the PCard at Georgia Tech
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Procurement Card (PCard) Cardholder
Training Certification
Using the PCard at Georgia Tech Jan 2009
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Welcome to Procurement Card (PCard)Cardholder
Training Certification

• This tutorial will provide employees with a
  basic understanding of how to use the PCard at
  Georgia Tech.
• However, it is the responsibility of the
  employee to know and comply with the provisions
  of the PCard Policies Procedures Manual as set
  forth in the GT Business Finance Manual section
  5.2.1.8

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Using the PCard

• The PCard is the Institutes primary tool for
  purchases of non-equipment, business related
  items under 5,000.
• It is a standard Visa purchasing card that may
  be used by Institute employees for authorized
  business purchases.
• It is accepted worldwide in person, by phone,
  fax, and on the internet - any vendor that
  accepts Visa will accept the PCard.

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Managing the PCard Program
PCard Program Manager PCard Administrator
PCard Program is administered by Business
Services.
Each department assigns a PCard Coordinator to
manage the PCard program at the department level.
Department PCard Coordinator
Cardholder
Cardholder
Cardholder
Cards are issued to Georgia Tech in the
individuals name.
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PCard Spending Limits

• The PCard is issued in your name. However,
  Georgia Tech is liable for all purchases made
  with the PCard.
• Therefore, additional controls have been placed
  on the card. The cardholder is limited by
• Dollar amount limit per transaction.
• Dollar amount limit per month.
• The Institutes maximum limit on PCard purchases
  is 4,999.99 per transaction and 2999.99 for
  inventoried equipment. The standard monthly
  dollar limit is 25,000. There are no further
  Institute cardholder spending limits.

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PCard Spending Limits

• The cardholders Department Head, however, may
  request lower or higher limits based on unit
  needs and procedures. These limits should be
  noted on the approved PCard Request Form.
• Your PCard will be denied by a vendor if you
  have reached the established monthly limit set
  for your card or if the purchase amount exceeds
  your set transaction limit.

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Vendor Restrictions

• Specific types of businesses, such as
  travel-related vendors or entertainment
  retailers, identified by a Merchant Category Code
  (MCC), are restricted on the card. Your PCard
  will not be accepted by these types of vendors.
• PCard purchases should not be made at any vendor
  where the cardholder has a financial interest.
• Cardholders should not accept any gift or
  gratuity when it is offered, or appears to be
  offered, to influence your decision-making
  regarding PCard purchases.

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Policy Limitations

• In addition to limits that are controlled at
  point of sale by the card, Georgia Tech limits
  the use of the PCard through policies and
  procedures.
• Departments may impose further restrictions on
  card usage in their units through internal
  procedures.
• Cardholders will be held accountable for
  ensuring that all PCard purchases are in
  accordance with current policies and procedures.

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Employee Agreement Form

• Before being issued a PCard, you must sign an
  agreement form confirming that
• You have read and understand the terms and
  conditions of PCard Policy 5.2.1.8
• You agree to comply with the terms and
  conditions of PCard Policy 5.2.1.8
• You understand that improper or fraudulent use
  of the PCard may result in disciplinary action,
  up to and including termination of your
  employment.

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You Are Responsible
Familiarize yourself with Georgia Tech policy and
procedures. PCard Policy 5.2.1.8 can be found at
this site http//www.admin-fin.gatech.edu/busin
ess/purchasing/0500218.html
Misuse of the PCard will result in having
your PCard privileges revoked, and could result
in termination of employment.
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PCard Security

• Georgia Tech follows the doctrine that the
  responsibility for PCard procurements rests with
  the cardholder.
• Cardholders are accountable for all transactions
  on their cards.
• Protect your PCard and PCard number as you would
  your personal credit card.
• Card-sharing is prohibited do not lend your
  card to anyone.

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Lost or Stolen Cards
If your card is lost, stolen, or the account
number is compromised Immediately notify Bank
of America at 1-888-449-2273 Also, notify
your Department PCard Coordinator.
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Purchasing Tips

• Obtain the best value.
• Cardholder must utilize lowest cost based on
  requirements, quality, and availability to obtain
  the maximum value of each dollar expended.
• Use Contract Vendors.
• Goods should be shipped to official Georgia
  Tech business addresses only.
• No home deliveries.

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Purchasing Tips

• Georgia Tech is tax exempt
• Inform vendors that the purchase is for official
  State of Georgia purposes and not subject to
  state and local sales tax.
• If tax is erroneously charged credit must be
  obtained directly from the vendor.
• Documentation of attempts to obtain credits must
  be maintained with the transaction documentation.
• Sales tax may not be disputed through the bank.

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Purchasing Tips

• Always get a receipt
• An accountable document (receipt) must be
  retained as proof of purchase for each
  transaction.
• The document must contain line item detail,
  including
• Line item description
• Line item pricing
• The accountable documents are used to reconcile
  the cardholders monthly bank statement.

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Purchasing Tips

• Audit reviews indicate increased scrutiny on
  vendors that appear unusual given our mission.
  Therefore, if the business purpose of a purchase
  is not self-evident cardholders should
• Annotate the accountable documentation to
  clearly show the business purpose.
• Make certain the purchase is permissible on the
  funding source used.

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Authorized PCard uses include

• Office Supplies
• Lab/Research Supplies
• Subscriptions
• Registrations
• Printing
• Office Furniture/Files

• Non-Inventory Equipment
• (Items under 3,000.00)
• Demurrage
• Items on Contract
• For example Fisher
• VWR
• Air Products
• Dell

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Purchasing Food with the PCard
Effective February 1, 2009, food purchased on the
PCard must be in accordance with the policies set
forth in the GT Business Finance Manual section
5.2.1.9 Purchase of Employee and Non Employee
Food and Group Meals. A completed Food/Group
Meal Authorization Request Form must be
maintained with the transaction documentation for
each food purchase.
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PCard may be used for services including

• Maintenance Repair
• Consulting Services
• Phones and Pagers
• Freelance
• Photographers
• Writers
• Artists

• Temp Employment Agencies
• Rentals
• Utilities
• Water
• Electricity
• Gas

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PCard may NOT be used for

• Personal purchases
• Employee Travel Entertainment
• Motor Vehicle Fuel
• Alcohol or Tobacco products
• Gift cards, gift certificates, or other cash
  equivalent items
• Funding the BuzzCard

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PCard may NOT be used for

• Equipment inventory items costing 3,000 or more
• Cash advances, cash refunds, or store credit
• Purchases from units of the Institute
• Total order over 4,999.99
• Split purchases dividing one purchase into two
  or more to stay within your transaction limit

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Record Keeping Duties

• Create a PCard file to keep accountable
  documentation (receipts) and monthly bank
  statements easily accessible.
• Bank Statements are sent monthly. The billing
  cycle ends on the 27th of each month.
• Federal, State,and Internal Auditors may request
  this file for compliance audits at any time.

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Reconcile Monthly Statements

• Compare bank statements with receipts to verify
  your purchases.
• Are the charges accurate?
• Have credits been issued/deducted?
• Is there any unauthorized activity?
• Note Visas vendor contract requires billing
  upon shipping. If you have ordered but have not
  received the item, make sure it has actually been
  shipped. Otherwise the charge should be disputed.

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Reconcile Monthly Statements

• Reconciled statements must be signed by the
  cardholder and counter signed (verified) by the
  approving official (approver) designated by the
  Department Head.
• In no instance should the cardholder and
  approver be the same person for signature
  purposes.
• The completed PCard monthly reconciliation
  packages consisting of the signed bank statements
  and accountable documentation (receipts) must be
  retained under the control of the department
  business office.

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Reconcile Monthly Statements

• Approvers assigned by the departments
• Review and verify cardholders PCard purchases
• Ensure appropriateness of purchases to best of
  their knowledge
• Verify completeness of documentation
• Provide evidence of the review by signature on
  the bank statement
• Report on monthly compliance to unit coordinator

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View Transactions On Web

• Online access to your PCard transactions is
  available via Works PCard Manager. The bank posts
  transactions to Works daily.
• You will receive a welcome email from Works
  with logon instructions when you are issued a
  PCard.
• Your department PCard Coordinator will provide
  instructions on using the system.

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Returning Purchases

• Inform the vendor the item needs to be returned.
• Request a PCard credit be issued.
• Request a return address
• Request a Return Authorization Number.
• Request a fax-back confirmation of the credit.
• Check for the credit on your next monthly bank
  statement.

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Resolving Disputes With Suppliers

• Attempt to resolve the problem directly with the
  vendor, documenting all communications.
• If you are unable to resolve the issue with the
  vendor, complete a PCard Dispute form and fax it
  to the bank.
• Notify your PCard Coordinator of the dispute and
  attach a copy of the dispute form to your monthly
  statement.
• Check the next statement to ensure credit is
  received.
• There is a 60 day time limit for disputed items

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Card Eligibility

• PCards may be issued to permanent,
  regular-status employees only.
• New cardholders must have a criminal and
  consumer credit check on file prior to being
  issued a PCard.
• Existing cardholders as of July 1, 2008 are
  required to have a criminal check prior to
  issuance of the renewal PCard if one is not on
  file.
• The Institute will ensure results of background
  checks are provided the privacy protections
  required by law.

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How Do I Get A PCard?

• Complete Cardholder Training Certification
  tutorial.
• Complete the PCard Request Form and the PCard
  Agreement Form.
• Submit the forms to your Department PCard
  Coordinator for approval.
• PCard Coordinator forwards forms to PCard
  Administrator.

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Issuing the PCard
The PCard Manager will notify you by e-mail when
your PCard has been approved/issued and is ready
for pick up from Business Services.

• Your PCard Coordinator establishes your
• Default Project ID
• Per Transaction Limit
• Monthly Purchase Limit

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Returning PCards
Any cardholder - Transferring to another
unit - Leaving Georgia Tech MUST return
their PCard to the Dept. PCard Coordinator.
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Annual Certification
All cardholders are required to re-certify
annually, during the month of January, by
completing the online Cardholder Training
Certification tutorial.
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Georgia Tech Procurement Card Program Annual
RecertificationCharges to Sponsored Accounts

• OMB Circular A-21 Cost Principles for
  Educational Institutions requires that costs
  applied to sponsored agreements (or projects)
  meet the following standards
• 1. They must be reasonable
• 2. They must be allocable to sponsored
  agreements under the principles and methods
  herein
• 3. They must be given consistent treatment
  through the application of those generally
  accepted accounting principles appropriate
  to the circumstances and
• 4. They must conform to any limitations or
  exclusions set forth (in Circular A-21) or in the
  sponsored agreement as to types or amounts
  of cost items.
• Although the P-card manual sets forth criteria
  for allowable and unallowable purchases, you must
  also ensure that purchases, including
  redistributions and transfers, are allowable per
  the terms and conditions of OMB Circular A-21 and
  the sponsored award/project. Items which are
  typically allowable purchases per the P-Card
  Manual, but, are typically unallowable for
  sponsored projects include (list not
  all-inclusive)
• 1. Non-Inventoried Equipment, including PCs and
  Printers (if general or multi-purpose)
• 2. Office Filing Cabinets and Office Furniture
• 3. Office Supplies or other General Purpose
  Supplies
• 4. Postage, including Stamps

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Georgia Tech Procurement Card Program Annual
RecertificationCharges to Sponsored Accounts

• It is the responsibility of PD/PIs, unit heads
  and staff delegated signature authority by unit
  heads (including P-Card holders, Approvers, and
  Coordinators) to ensure that only allowable
  charges are posted as direct expenses to
  sponsored projects.  Unit financial managers are
  in the most knowledgeable position with
  up-to-date information regarding the provisions
  and status of their respective sponsored
  projects.  As such, local managements signature
  approval of a financial transaction indicates
• 1. Approval for the action requested
• 2. Goods or services are directly related to
  the project scope
• 3. Charges are allowable according to the
  approved project budget
• 4. Charges have been incurred within the
  project time period
• 5. Charges have been incurred in accordance
  with GIT financial and accounting policies and
  procedures
• 6. Charges have been incurred in accordance
  with Terms and Conditions of the sponsored
  agreement
• 7. Funds are available in the designated
  projects
• Certification Statement
• I have read and I understand the special
  requirements governing direct charges to
  sponsored projects and my responsibilities as
  staff delegated signature authority. I will
  ensure that, to the best of my knowledge and
  belief, only allowable direct charges are posted
  to sponsored projects. Documentation to support
  all charges based on the above A-21 requirements
  will be maintained in the local unit/department
  files for audit purposes.

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EMPLOYEE AGREEMENT FOR GEORGIA INSTITUTE OF
TECHNOLOGY PROCUREMENT CARD PROGRAM

• I ____________________, hereby acknowledge
  receipt of a Georgia Institute of Technology
  (the Institute) Procurement Card (PCard),
  which is a Visa card issued by Bank of America
  (Card Issuer), that will only be used to acquire
  materials, supplies, and services for the
  Institute. I agree to comply with the following
  terms and conditions relating to my use of the
  PCard.
• 1. As an authorized cardholder, I agree to
  comply with the terms and conditions of this
  Agreement and with the provisions of the PCard
  Policies Procedures Manual (PCard Policy
  5.2.1.8 in the Business Finance Manual). I
  confirm that I have read and understand its terms
  and conditions.
• 2. I understand that the Institute is liable to
  Card Issuer for all charges I make on the PCard.
• 3. I agree to use the PCard for authorized
  official business purchases only and agree not to
  charge personal purchases. I authorize the
  Institute to take 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 of my wages.
  In such event, I expressly authorize the
  Institute to deduct such cost from my wages to
  the extent allowed by law.
• 4. I agree to notify the departments PCard
  Coordinator if my Institute address changes.
• 5. If the PCard is lost or stolen, I will
  immediately notify the Card Issuer at
  1-888-449-2273. I will confirm the telephone
  notification as described in the Manual. I will
  also provide notice to my department Procurement
  Card Coordinator.

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EMPLOYEE AGREEMENT FOR GEORGIA INSTITUTE OF
TECHNOLOGY PROCUREMENT CARD PROGRAM

• 6. I understand that improper or fraudulent use
  of the PCard may result in disciplinary action,
  up to and including termination of my employment.
  I further understand that the Institute may
  terminate my right to use the PCard at any time
  for any reason.
• 7. I agree to surrender the PCard immediately
  upon request, transfer to another department, or
  termination of employment for any reason.
• 8. I agree, when applicable, to comply with the
  requirements of OMB Circular A-21 Cost
  Principles for Educational Institutions
  regarding costs applied to sponsored projects.
• Agreed and accepted this ______ day of
  ________________, 200__,
• ___________________________
  _______________________________
• Employees Signature
  Department Head Name Printed
• ___________________________ ___________________
  ____________
• Department
  Department Head Signature

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PCard Forms Questions
PCard Forms are available at http//www.procurem
ent.gatech.edu/pcard_forms.htm Questions?
Email pcard.ask_at_business.gatech.edu
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Certification

• I accept, and agree to comply with, the terms and
  conditions of the EMPLOYEE AGREEMENT FOR GEORGIA
  INSTITUTE OF TECHNOLOGY PROCUREMENT CARD PROGRAM
  and the provisions of the PCard Policies and
  Procedures Manual (PCard policy 5.2.1.8).