Purchasing Card Program

 

P Card Expansion Curtailed P Card FAQ's

Purchasing Card

 

 

Pcard Learning Resources

 

  1. Objective
  2. Responsibility
  3. General Guidelines
  4. General Information & Definitions
  5. Issuance of Cards
  6. Card Limits
  7. Cardholder Responsibilities
  8. Cost Allocation
  9. Training Class
  10. Staff/Faculty Agreement Form
  11. Card Restrictions
  12. Keeping Receipts
  13. Reconciling P Card Monthly Statement
  14. Resolving Disputes with Suppliers
  15. Tax Information
  16. Violations of Policy
  17. Approver Responsibilities
  18. Lost or Stolen P Cards
  19. Cardholder Account Maintenance
  20. Pcard Expiration/Cancellation/Termination
  21. Payment
  22. Reporting
  23. Purchasing Review

Objective

The University of Rochester Purchasing Card, hereafter referred to as P Card, is a valuable tool for quickly and efficiently purchasing and paying for goods. This tool can be advantageous to the individual purchaser, the purchaser's department, the University, and the suppliers.

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Responsibility

Purchasing's Pcard Administrator is responsible for the oversight and enforcement of Pcard Policies and Procedures

General Guidelines

The purpose of this document is to provide instructions for the issuance and use of the P Card along with instructions for reconciliation and review of transactions. The University of Rochester has established a new Purchasing Card Program with US Bank to provide expanded convenience and controls for low dollar purchases.

 

HOW IT WORKS

 

1.    Cardholder makes an authorized business-related purchase by charging it on their US Bank

        Visa Card.

2.    Cardholder must upload the receipt(s) along with any additional supporting documentation in the Access Online Internet application.

3.    Cardholder reviews P Card transactions daily/weekly in the Access Online Internet application.

4.    Cardholder reconciles receipts to the Access Online statement.

5.    The P Card Manager reviews and approves the Cardholders’ transactions in the Access Online internet application. P Card Manager reviews all charges within the current billing cycle for distribution to the appropriate general ledger account, valid business purpose and adequate supporting documentation. The P Card Manager signs and dates the Commercial Card Statement from US Bank on a monthly basis.

6.    Cardholders need to keep original receipts and supporting documentation, transaction detail

reports, and bank statements, within the department for ledger reconciliation and audit requirements

7.    The bank pays the merchant when merchant submits the transaction.

8.    University of Rochester pays the bank each billing cycle. (25th of the Month)

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General Information & Definitions

  • Billing Address - The billing address is 70 Goler House, East Drive, Rochester, NY 14620, Attn: Pat Smith. (May be requested by suppliers for phone order verification.)
  • Billing Date - US Bank's contract requires account billing upon shipment of an order.
  • Billing Phone Number - The University phone number of cardholder or phone number for Pcard Administrator (585-275-8900). (May be requested by suppliers for phone order verification.)
  • Cardholder - Employee who has been issued a P Card.
  • Card Issuer - US Bank, the bank issuing University of Rochester P Card.
  • Cycle Cutoff - The date statement is issued (on the 25th day of each month).
  • Department Head - For purposes of these instructions refers to the VP, Dean, Director, or Department Head with budget authority for Department.
  • P Card Managers - Department representatives responsible for facilitating the Purchasing Card Program within their departments.
  • P Card Help - Customer Service (x58900) - Point of contact to assist with questions/concerns, available via phone or e-mail
  • P Card Administrator - Corporate Purchasing representative responsible for P Card process

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Issuance of Cards

  • Authorization: The Department Head or Chair must designate a P Card Manager for the department by completing the Purchasing Card Program Authorization Form. The form will indicate authorization, cardholder limits, if any, and cost allocation information. Additional names may be added to the same form if more than one person will be authorized to use the P Card. Typically, the P-Card Manager should not be allowed to be a cardholder. If a department is unable to achieve this appropriate segregation of duties (i.e., constrained by a shortage of appropriate staff members), the department head would be required to accept a higher level of responsibility for the management of the program, assuring that an in-depth review of all card transactions takes place; they would br required to assign someone in at least a one-level higher position that the cardholder who would essentially undertake the oversight responsibilities expected of a P-Card Manager.

    In addition, cards requested for Medical Center and SMH accounts require the signature of the Divisional Finance Officer. A listing of these contacts may be found at Division Contacts (login required for out of network users)
  • Application: The Application Form requires pertinent information for any individuals authorized to use the card. This form should be completed by the employee and P Card Manager, signed by employee, attached to the Program Authorization Form and forwarded to the P Card Program Administrator in Corporate Purchasing, 70 Goler House Box 278901 or emailed to PCardAdministrator@urmc.rochester.edu after obtaining all necessary signatures.
  • Distribution: Each cardholder will be required to sign a University of Rochester Pcard Cardholder Agreement Form and Pcard Managers will be required to sign a University of Rochester Pcard Manager Agreement Form upon completion of training and receipt of their card.
  • Purchasing Card Change/Cancellation Notice:  Whenever there is a change in the department P Card Manager, card holder or if a card is terminated, a completed Purchasing Card Change/Cancellation Notice must be submitted to the P Card Program Administrator in Corporate Purchasing, 70 Goler House Box 278901 or emailed to PCardAdministrator@urmc.rochester.edu after obtaining all necessary signatures.

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Card Limits

  • Card: Since University of Rochester, not the individual employee, will pay for the purchases made with the P Card, additional controls have been added to the card accounts. These limits are imposed at the point of sale when the card is swiped.
  • Cardholder Spending Limits: The University's maximum limit on P Card purchases is $1,500 per transaction. The cardholder's Department Head, however, may identify lower limits. These limits should be noted on the Purchasing Card Program Authorization Form.
  • Merchant Activity Type Limits: Specific types of businesses identified by a Standard Industrial Classification (SIC) Codes are restricted on the card. If you have difficulty using your card with any particular supplier, please contact Customer Service (275-8900).
  • Policy: In addition to the limits that are controlled at the point of sale by the card, University of Rochester limits the use of the card through policy. The card may be used only for purchases that are made under delegated authority. It is a violation of the program to split orders in order to remain within the transaction limit.

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Cardholder Responsibilities

  • The card is a privilege granted to you by the University and it is expected that you will use it responsibly. The University will seek restitution for any inappropriate charges made to the card. Fraudulent or intentional misuse of the card will result in revocation of the card and/or possible criminal charges.

    Only the authorized cardholder is allowed to use the card. Delegation of authority is not permitted. Merchants require that the signature on the card match the signature on the receipt. In general, your  PCard should be used in a responsible manner for purchases that are in the best interest of the University.

    When accepting P Card, cardholder becomes an authorized purchaser for the University with specific responsibilities for expending University funds as follows:

    • Obtain Best Value
      • Cardholder must utilize lowest price based on requirements, quality, and availability to obtain the maximum value of each dollar expended
      • The card is limited to purchases totaling $1,500 or less. The transaction limit of $1,500 includes shipping costs.
    • Protection of Card
        • Cardholder must protect the security of his/her P Card and P Card number.
        • Sharing of the card with other employees is unacceptable. The University of Rochester assumes liability on a card if it is used by anyone other than the cardholder. If a card is used by others in the department, then the department is responsible for any fraudulent use on the card.
        • Store the card in a secure location accessible only to the cardholder.
        • Card number should be secured (i.e. not posted at a desk or any other location).
        • Cardholder must notify Card Issuer immediately by calling 1-800-538-8788 when card is lost or stolen. Cardholder must confirm notification in writing or facsimile to his/her department P Card Manager. Manager has the responsibility of communicating information to P Card Administrator.
    • Limitations on Suppliers
      • Ensure that purchases are not made from any vendors on the Office of the Inspector General (OIG) Vendor Exclusion list (see Helpful Links, then click on “Debarred and Suspended Suppliers”). If the supplier is listed, you should not do business with that supplier.
      • Cardholder must not make P Card purchases from friends or relatives where cardholder has a financial interest.
      • Cardholder must not accept any gift or gratuity from any source when it is offered, or appears to be offered, to influence your decision-making regarding P Card Purchases.
    • Limitations on What Can Be Purchased
      Cardholder accepts responsibility to ensure that items prohibited from purchase with P Card are not procured. Refer to “Excluded Items
    • Special Requirements for Sponsored Projects
      • Use of the Purchasing Card continues to operate under any of the standard sponsored project compliance or accounting requirements. All costs incurred on a sponsored project must be reasonable, necessary, allowable and appropriate to the specific account charged. Costs may not be incurred on a sponsored project for preplanned transfer or redistribution to another account; Card purchases can be charged to a sponsored project account through the re-allocation process only. If an incorrect account or subcode is used, correction shall be required and accomplished through a subsequent cost transfer.
      • If any charge is disallowed by the University or Auditor, the charge will go back to the default account.
      • All receipts and statements supporting P Card transactions for the current and past fiscal years will be kept at the department level (in accordance with official records retention policy).
      • The P Card can not be used for charging departmental costs to a sponsored project account.
      • Sponsored project purchases must be made in accordance with the restrictions terms and conditions of the sponsored project.
      • The sponsored project account cannot be used as a clearing account for card purchases.
      • FRS account and subcode assigned to the purchase must be appropriate.
      • Any questions should be directed to the Office of Research & Project Administration and/or Sponsored Program Accounting.
    • Maintaining Receipts, and Reconciling Statement
      The cardholder accepts the responsibilities included in departmental P Card process. It is the cardholder's responsibility to provide the Department P Card Manager with necessary documentation. All supporting documentation for transactions must be uploaded into Access Online internet application and filed centrally in the respective department.. As further documentation of review and reconciliation, the cardholder (reviewer) should sign/initial the statement. The Department P Card Manager is ultimately responsible for tracking departmental purchases and providing the backup to the auditors on request.
    • Allowable Purchases
      • Cardholders may use the P Card to procure small dollar supplies of less than $1,500
      • Subscriptions, reprints, pamphlets, manuals, books (excluding textbooks)
      • Food and Beverages for on-site University of Rochester business purpose. Document business purpose and list of attendees, or if the attendance is quite large, reference the group and business purpose (i.e., "Chemistry, Retreat" or "Simon School staff meeting")
      • One-Time Repair or Service
      • Advance registration fees for a workshop, seminar, convention or conference, which an employee is authorized to attend, may be charged on the P Card:
        • Fees for optional activities such as sightseeing, field trip, or banquets are not allowable.
        • Any part of a registration fee applicable to meals or lodging and identifiable as such, shall be charged to your American Express Corporate Card.
    • Using the P Card—Making the Purchase
      The P Card can be used to make purchases over the counter, by mail, by fax, by telephone, or by internet. The following procedure should be followed for all P Card purchases.
    • Decision to Buy
      When making the decision to buy, the employee should:
      • Utilize University contracted suppliers whenever possible using the appropriate order form or process. Orders for SOLO vendors should be placed online using your SOLO account, and not on your Pcard.
      • Ensure the transaction is appropriate and in accordance with all University rules and regulations.
      • Utilize various non-contract suppliers to give fair treatment to all suppliers and to assure that the price obtained is reasonable. Transactions you make may be on behalf of Federal sponsors. Corporate Purchasing on behalf of the government clients requires special sensitivity on the part of the purchaser to obtaining fair and reasonable prices, spreading purchases among many suppliers including small, small-disadvantaged, and women-owned businesses, and adhering to strict ethical conduct.
      • Ensure that the price is fair and reasonable; review the cardholder responsibility section Cardholder Responsibilities and Obtain Best Value
    • Making the Purchase—Over the Counter
      • Verify that supplier accepts the Visa.
      • Provide the P Card for payment.
      • Inform the clerk that the purchase is exempt from state and local sales tax. The P Card states sales tax exemption, but cardholder should verify that clerk does not charge sales tax.
      • Verify the dollar amount is correct and no sales tax has been included, then sign the sales draft.
      • Retain your copy of the sales draft and receipt. If copy does not provide description of item(s) being purchased, this should be written on sales draft or receipt.
      • Upload receipts into Access Online internet applications
      • Follow P Card transaction/documentation process established in Department.
    • Making Purchase—Mail, Fax, Telephone, or Internet orders
      • Provide supplier with requested card information.
      • Inform supplier that the purchase is exempt from state and local sales tax.
      • If copy of exemption certificate is required, contact Customer Service at x5-8900 (with online purchases, cardholders may find it impossible to pass sales tax exemption information to the supplier. In this case, cardholders must follow up immediately with the supplier via phone or fax to ensure that the University receives a tax waiver).
      • Order the desired goods or services and confirm the total cost, including shipping and handling.
      • Give supplier detailed shipping instructions as provided by your P Card Manager. The second line of the address should identify department, cardholder and room number. Since there is not a purchase order number for the supplier to reference, this line creates University of Rochester 's delivery information. Tell the supplier that the Purchasing Card number should not be displayed anywhere on the outside of the package.
      • Cardholders should purchase only from websites that start with "https", rather than "http". This is entered on the web "Address" line. When "https" is used, a padlock appears at the bottom of the browser window. This indicates that the website and the user information provided therein are protected by SSL (Secured Sockets Layer).
      • Do not give the address of Accounts Payable. Remind the supplier that this is a VISA purchase and to send a receipt for the purchase to you at your department mailing address.
      • Retain documentation for purchase. This may be copy of order form, copy of catalog page showing cost.
    • Returning Purchases Made With P Card
      If you determine that the material is defective or incorrect, notify the supplier that the item needs to be returned and request an address to ship to and a return authorization number. Request that the supplier process a credit transaction through Card. Document that goods have been returned for credit and communicate information through proper channels within department. Ensure that the credit appears on the next monthly statement. If not, process charge as disputed item.
    • Declines
    In the event of a transaction decline, the Cardholder may call the bank directly to obtain the reason for the declination. The bank's customer service number is printed on the back of the Pcard. Some commons reasons for decline:
  • Vendor has entered wrong expiration date
  • Purchase is over standard limits encoded on your card (either single or monthly)
  • Purchase type is blocked depending on Pcard transaction type & policy (i.e.Airline, Car Rental Agencies, ATMs, Financial Institutions, etc.)

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Cost Allocation

Each card issued will be assigned a default account to be charged as identified by the Department Head on the Purchasing Card Program Authorization Form. The department P Card Manager will receive a report of cardholders' unapproved transactions each Friday. All transactions requiring redistribution must be identified via e-mail to the Department P Card Manager no later than the 25th of the month.. Changes identified after the statement reconciliation period must follow the University's cost transfer rules.

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Training Class

Department P Card Managers and cardholders must attend an Access Online training class before cards can be issued within the department. The P Card Manager is responsible for training all cardholders in his/her department. on policies/procedures of the program. The online training site is at https://wbt.access-online.com. You will receive your login information once training is completed. In addition, cardholders and managers are required to review a Pcard Program Overview Presentation.

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Staff/Faculty Agreement Form

The final step to issuance of a card is the signing of the Cardholder Agreement Form or Pcard Manager Agreement Form by the faculty/staff member. By signing the form, the faculty/staff member acknowledges:

  • Receipt and understanding of the regulations for use and protection of card,
  • Understanding of responsibilities in reconciliation process and billing disputes,
  • Understanding and acceptance of consequences for P Card violations.

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Card Restrictions

When accepting P Card, cardholder becomes an authorized purchaser for the University with specific responsibilities for expending University funds as follows:

  • Red Flag Items: The following items should only be purchased with a P Card when a valid business reason can be documented. Questionable transactions should be discussed with divisional or University Finance prior to purchasing these products or services.
  • Excluded Items: The following may not be purchased with the P Card. (This list may not be all-inclusive. When in doubt, contact the P Card Administrator.)
    • Alcoholic Beverages
    • Animals, Live
    • Business Cards
    • Capital Equipment (i.e., with a 2+ year useful life and unit cost greater than $300 (SMH purchases), and greater than $1,000 (University purchases)
    • Cash Advances
    • Contracting (i.e., Consultants/Independent Contractors, Maintenance Agreements)
    • Controlled Substances, Medications
    • E-bay Purchases
    • Equipment involving a trade-in or exchange
    • Forms
    • Furniture
    • Hazardous Substances/Materials (i.e., Gasoline, fuel, explosives, etc.)
    • Hotel/Motel (sleeping accommodations)
    • Items ,Food, Beverage for personal use or consumption
    • Lease, Rental or Demonstration of Equipment
    • Meals, Food, Beverage consumed off University premises (Use T&C)
    • Medical Supplies
    • Moving, Storage, Rigging or Transportation Service (Due to systems contract)
    • Purchases from individuals
    • Radioactive Isotopes
    • Releases on standing orders, blanket orders or multiple shipments
    • Sales Tax (University is tax exempt)
    • Services (i.e. laundry, dry cleaning, phone, television, utilities, employment and other professional services)
    • Split orders to remain within the transaction limit
    • Travel and travel related purchases or services (i.e. airline tickets, car rentals, travel agencies, gasoline, fuel - Use T&C)
    • Textbooks (Due to Contract Agreement)
  • Obtain Best Value
    • Cardholder must utilize lowest price based on requirements, quality, and availability to obtain the maximum value of each dollar expended
    • The card is limited to purchases totaling $1,500 or less. The transaction limit of $1,500 includes shipping costs.
  • Protection of Card
      • Cardholder must protect the security of his/her P Card and P Card number.
      • Sharing of the card with other employees is unacceptable. The bank assumes no liability on a card if it is used by anyone other than the cardholder. If a card is used by others in the department, then the department is responsible for any fraudulent use on the card.
      • Store the card in a secure location accessible only to the cardholder.
      • Card number should be secured (i.e. not posted at a desk or any other location).
      • Cardholder must notify Card Issuer immediately by calling 1-800-344-5696 when card is lost or stolen. Cardholder must confirm notification in writing or facsimile to his/her department P Card Manager. Manager has the responsibility of communicating information to P Card Administrator.
  • Limitations on Suppliers
    • Ensure that purchases are not made from any vendors on the Office of the Inspector General (OIG) Vendor Exclusion list (see Helpful Links, then click on “Debarred and Suspended Suppliers”). If the supplier is listed, you should not do business with that supplier.
    • Cardholder must not make P Card purchases from friends or relatives where cardholder has a financial interest.
    • Cardholder must not accept any gift or gratuity from any source when it is offered, or appears to be offered, to influence your decision-making regarding P Card Purchases.
  • Limitations on What Can Be Purchased
    Cardholder accepts responsibility to ensure that items prohibited from purchase with P Card are not procured. Refer to “Excluded Items
  • Special Requirements for Sponsored Projects
    • Use of the Purchasing Card continues to operate under any of the standard sponsored project compliance or accounting requirements. All costs incurred on a sponsored project must be reasonable, necessary, allowable and appropriate to the specific account charged. Costs may not be incurred on a sponsored project for preplanned transfer or redistribution to another account; Card purchases can be charged to a sponsored project account through the re-allocation process only. If an incorrect account or subcode is used, correction shall be required and accomplished through a subsequent cost transfer.
    • If any charge is disallowed by the University or Auditor, the charge will go back to the default account.
    • All receipts and statements supporting P Card transactions for the current and past fiscal years will be kept at the department level (in accordance with official records retention policy).
    • The P Card can not be used for charging departmental costs to a sponsored project account.
    • Sponsored project purchases must be made in accordance with the restrictions terms and conditions of the sponsored project.
    • The sponsored project account cannot be used as a clearing account for card purchases.
    • FRS account and subcode assigned to the purchase must be appropriate.
    • Any questions should be directed to the Office of Research & Project Administration and/or Sponsored Program Accounting.
  • Maintaining Purchase Log/Receipts, and Reconciling Statement

    The cardholder accepts the responsibilities included in departmental P Card process. It is the cardholder's responsibility to provide the Department P Card Manager with necessary documentation. All supporting documentation for transactions must be uploaded into Access Online internet application and filed centrally in the respective department. As further documentation of review and reconciliation, the cardholder (reviewer) should sign/initial the statement. The Department P Card Manager is ultimately responsible for tracking departmental purchases and providing the backup to the auditors on request.

  • Providing Feedback
    It is the responsibility of the P Card Manager to complete periodic surveys to rate the effectiveness of the P Card process and suggest areas for additional improvement.
  • Allowable Purchases
    • Cardholders may use the P Card to procure small dollar operating supplies of less than $1,500
    • Subscriptions, reprints, pamphlets, manuals, books (excluding textbooks)
    • Food and Beverages for on-site University of Rochester business purpose. Document business purpose and list of attendees, or if the attendance is quite large, reference the group and business purpose (i.e., "Chemistry, Retreat" or "Simon School staff meeting")
    • One-Time Repair or Service
    • Advance registration fees for a workshop, seminar, convention or conference, which an employee is authorized to attend, may be charged on the P Card:
      • Fees for optional activities such as sightseeing, field trip, or banquets are not allowable.
      • Any part of a registration fee applicable to meals or lodging and identifiable as such, shall be charged to your American Express Corporate Card.
  • Using the P Card—Making the Purchase
    The P Card can be used to make purchases over the counter, by mail, by fax, by telephone, or by WWW. The following procedure should be followed for all P Card purchases.
  • Decision to Buy
    When making the decision to buy, the employee should:
    • Utilize University contracted suppliers whenever possible using the appropriate order form or process.
    • Ensure the transaction is appropriate and in accordance with all University rules and regulations.
    • Vary non-contract suppliers to give fair treatment to all suppliers and to assure that the price obtained is reasonable. Transactions you make may be on behalf of Federal sponsors. Corporate Purchasing on behalf of the government clients requires special sensitivity on the part of the purchaser to obtaining fair and reasonable prices, spreading purchases among many suppliers including small, small-disadvantaged, and women-owned businesses, and adhering to strict ethical conduct.
    • Ensure that the price is fair and reasonable; review the cardholder responsibility section Cardholder Responsibilities and Obtain Best Value
  • Making the Purchase—Over the Counter
    • Verify that supplier accepts the Visa.
    • Provide the P Card for payment.
    • Inform the clerk that the purchase is exempt from state and local sales tax. The P Card states sales tax exemption, but cardholder should verify that clerk does not charge sales tax.
    • Verify the dollar amount is correct and no sales tax has been included, then sign the sales draft.
    • Retain your copy of the sales draft and receipt. If copy does not provide description of item(s) being purchased, this should be written on sales draft or receipt.
    • Follow P Card transaction/documentation process established in Department.
  • Making Purchase—Mail, Fax, Telephone, or WWW orders
    • Provide supplier with requested card information.
    • Inform supplier that the purchase is exempt from state and local sales tax.
    • If copy of exemption certificate is required, contact Customer Service at x5-2002 (with online purchases, cardholders may find it impossible to pass sales tax exemption information to the supplier. In this case, cardholders must follow up immediately with the supplier via phone or fax to ensure that the University receives a tax waiver).
    • Order the desired goods or services and confirm the total cost, including shipping and handling.
    • Give supplier detailed shipping instructions as provided by your P Card Manager. The second line of the address should identify department, cardholder and room number. Since there is not a purchase order number for the supplier to reference, this line creates University of Rochester 's delivery information. Tell the supplier that the Purchasing Card number should not be displayed anywhere on the outside of the package.
    • Cardholders should purchase only from websites that start with "https", rather than "http". This is entered on the web "Address" line. When "https" is used, a padlock appears at the bottom of the browser window. This indicates that the website and the user information provided therein are protected by SSL (Secured Sockets Layer).
    • Do not give the address of Accounts Payable. Remind the supplier that this is a VISA purchase and to send a receipt for the purchase to you at your department mailing address.
    • Retain documentation for purchase. This may be copy of order form, copy of catalog page showing cost.
  • Returning Purchases Made With P Card
    If you determine that the material is defective or incorrect, notify the supplier that the item needs to be returned and request an address to ship to and a return authorization number. Request that the supplier process a credit transaction through Card. Document that goods have been returned for credit and communicate information through proper channels within department. Ensure that the credit appears on the next monthly statement. If not, process charge as disputed item.

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Keeping Receipts

The cardholder is responsible for obtaining receipts, packing slips, or other documentation for uploading into Access Online. The original receipts (not copies) are required to be kept for permanent audit documentation of purchase. For purchases made over the counter, documentation would be the actual sales receipt. For other purchases, cardholder should request that a receipt be included in the delivery package and/or make a copy of the catalog page or computer screen information which indicates items purchased and price. These should be attached to any packing slip information received upon delivery.

 

The transaction cutoff cycle with card provider is two calendar days after the 25th of the month of the billing cycle. Purchase made after the last business day should be included on the next month's billing cycle.

 

  • Audits and Suspensions

Cardholders must upload original itemized receipts for each transaction before the 25th of each month. Failure to comply with this policy will result in suspension of card privileges until that is completed. Repeated occurrences of card suspension may be cause for permanent card cancellation. Please feel free to contact your Pcard Manager with any questions about what constitutes an allowable charge or acceptable support documentation.

 

  • Records Retention

It is the cardholder's responsibility for obtaining purchase documentation from the merchant (sales receipts, invoices, etc.) to support all purchases made with the Pcard and to document the business purpose for the expenditures in Access Online. Departments/Divisions must comply with the record retention requirements for support documentation as set forth in the University of Rochester's Policy on Retention of University Records http://www.rochester.edu/adminfinance/records.html. All Departments/Divisions will maintain records of each Pcard transaction and the supporting documentation in an auditable state as outlined in the policy excluding federal grants or awards. The length of this retention period is attributable to the fact that departments/divisions are the sole source of support, meaning they hold the only copy on campus. All records pertinent to a federal grant or award must be retained until three years after the date of submission of the final expenditure report, in compliance with granting authority regulations and Pcard transactions.

 

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Reconciling P Card Monthly Statement

Cardholder transaction documentation should be reconciled with the monthly statement. Individual who reconciles statement should verify that items billed are indicated on documentation as received and are billed at correct amount. If items on statement do not match, one of the following should be done:

  • If item billed is disputed, follow instructions in Resolving Disputes with Suppliers. To the left of item on statement, write "D" to indicate disputed item. If item on statement was ordered, but not received determine the shipping date. VISA's supplier contract requires billing upon shipment of order. If cardholder has adequate information that shipment has been made, but not received, cardholder can mark item as billed on transaction log and check item on statement. If cardholder determines that shipment has not been made, procedures for disputed item in "Resolving Disputes with Suppliers" should be followed. To the left of item on statement, write "D" to indicate disputed item.
  • If there are any open items statement, a copy should be made and attached to the following month's transaction packet. An open item would be a disputed item, item listed on statement but not billed, or items billed but not received. Making the copy and including with the following month's statement will facilitate follow up and reconciliation process for that month.

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Resolving Disputes with Suppliers

  • If cardholder is charged for an item incorrectly, they should contact the supplier and attempt to resolve the problem. Any communications should be documented on statement (or attachment) and include dates, the persons involved, and a brief description of the problem.
  • If the cardholder is unable to resolve the dispute with the supplier, the Department P Card Manager should be notified and the dispute may be recorded on line. The Department P Card Manager will resolve the issue with the Card Issuer and assure proper application of credit. The P Card Administrator may be contacted if additional assistance is required.
  • Cardholder should record that transaction as "dispute" on statement by placing "D" to left of item.
  • Cardholder should ensure that the next monthly statement reflects a correction and "DC"; noted to left of item to indicate dispute cleared.

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Tax Information

Sales Tax Exemption

 

The University of Rochester is a tax-exempt organization. The New York sales tax-exempt number is printed on the front of every Pcard. Cardholders must provide this number to all vendors at the time of any transaction to exempt payment for New York or reciprocal state sales tax. Purchases made by the University outside of New York, may not be exempt from another state's sales and use tax. There is a Tax Exempt Chart on the Accounts Payable website which lists our tax exempt status with each state. Inquiries regarding Out of State Sales Tax Certificates of Exemption should be directed to the Finance Office at 276-4691.

 

Potential Tax Liability

 

The Internal Revenue Service (IRS) considers employer gifts of cash, gift cards, gift certificates, and similar items which can easily be exchanged for cash as additional taxable salary or wages which is subject to reporting and withholding obligations by the employer. (Publication 525 Taxable and Non Taxable Income)

 

Violations of Policy

 

  • Unauthorized And Inappropriate Card Use: The Pcard must never be used to purchase items for personal use or for non-University purposes, even if the cardholder intends to reimburse the University. A cardholder who makes an unauthorized purchase with a Pcard, as defined in the Authorized Use section, or uses the Pcard in an inappropriate manner, may be subject to disciplinary action including card cancellation and performance management process up to and including discharge. When appropriate, notification of fraudulent use will be shared with Security and the Rochester Police Department for possible criminal prosecution.
  • Consistent adherence to the Pcard Program controls and rules is required of all cardholders and card managers to assure continued eligibility to participate in the program. Failure to properly adhere to these controls and rules will result in the following actions:
  •               Corrective Action                                                                                     Event or Cause

    Suspension or removal of Cardholder privileges.

    • Using the card to purchase restricted products or services.
    • Failure to properly review transactions.
    • Failure to properly upload documentation to Access Online (i.e. receipts, order confirmations, packing slips, etc.)
    • Failure to properly document transaction business purpose.
    • Failure to properly prepare, review and file monthly statements
    • Failure to properly prepare, review and file monthly statements.

    Suspension or removal of Card Manager privileges. Referral for possible Performance Management Process up to and including discharge and/or possible criminal prosecution.

    •  Failure to properly review and approve Cardholder monthly transactions.
    • Failure to properly review and approve monthly statements.
    • Failure to properly report transactions with employee tax reporting liability.
    • Failure to properly retain transaction documentation (receipts, order confirmations, packing slips, statements) of all employees including terminated.
    • Using the card for personal use.
    • Fraudulent use of card.
    • Receiving cash or check issued to Cardholder to resolve a credit or return

    Removal of Cardholder or Card Manager privileges.

    • Failure to successfully pass an audit or comply with recommendations identified from previous audit.

    Suspension or removal of Cardholder privileges. Referral for possible Performance Management Process up to and including discharge and/or possible criminal prosecution.

    • Using the card for personal use.
    •  Fraudulent use of card.
    • Receiving cash or check issued to Cardholder to resolve a credit or return.

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Approver Responsibilities

Department P Card Manager is responsible for review and approval of reconciled statements.

Said manager is responsible for ensuring that the reconciliation of the monthly statement is completed for each of their cardholders each month. Cardholder must submit cost redistribution to the Department P Card Manager weekly, or in accordance with department procedures. The department P Card Manager is responsible for statement review including the following:

  • Review log to verify appropriateness of items being purchased and funds being utilized.
  • Validate that cardholder has verified that purchases are not made from any vendors on the Office of the Inspector General (OIG) Vendor Exclusion list, per the instructions outlined in cardholder responsibilities.
  • Assess the appropriateness of the procurement tool given the transaction.
  • Investigate all "unusual item" purchases.
  • Identify any violations as noted in Section 15 and discuss with cardholder to provide additional instruction. Discussion should be documented and attached to statement.
  • Responsible for facilitating the reconciliation and approval process. Assure that there is supporting documentation for each transaction (including original documentation for evidence of receipt of goods, credits, logs, statements and records of disputed transactions). The documentation should adequately support the charges, and the business nature of the transaction must be documented and appropriate.
  • Provide supporting documentation for any P Card transaction upon request.
  • The P-card manager should document his/her reconciliation/review by signing/initialing the statement.

Pcard Managers who have unapproved transactions at the end of the month will be notified and may have their Pcard privileges suspended or revoked for missing reconciliation deadlines and/or failing to upload receipts.

 

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Lost or Stolen P Cards

If a Pcard is lost, stolen, or damaged, the Cardholder must immediately contact US Bank by calling 1-800-344-5696. It is imperative that the cardholder contacts the bank immediately for suspension of Pcards, as the cardholder is responsible for all charges made on the card until it has been cancelled by the bank. Cardholder must also notify the Pcard Administrator after reporting the incident to the bank. The Cardholder’s card will be cancelled and US Bank will issue a new P Card. A Pcard that is found after it has been reported lost or stolen must be destroyed by shredding and then discarding it. The same procedure applies if the card is damaged.

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Cardholder Account Maintenance

An email from the Dean, Director or Department Head is required for any cardholder account changes such as limit increases, addition of travel capabilities, budget center changes, or any other changes not reflected on the original P Cards application. This email should be sent to the P Card Administrator at Pat_Smith@urmc.rochester.edu.

Pcard Expiration/Cancellation/Termination

 

CARD EXPIRATION

• Most P Cards will have an expiration date of 3 years from the original issue date. The bank will automatically reissue new P Cards each month to replace cards that will be expiring that month. The account number will remain the same, but the expiration date and security code on the back of the card will change. The replacement PCard will be sent to the P Cards Office and the cardholder will be notified via e-mail. The replacement card will have to be picked up from the P Cards Office as it cannot be sent via campus mail. The PCard is good through the end of the month that it expires.

 

CANCELLATION OF CARDS

  • P Cards can be cancelled at any time. In the event that it is necessary to cancel a card, the Card Manager will retrieve the P Card and P Card documentation from the cardholder.
  • The documentation must be retained by the department. The Card Manager must contact the P Card Administrator via email (pat_smith@urmc.rochester.edu) to have the account closed as soon as possible. The P Card should then be cut up and discarded.

Reasons for cancellation include:

    • Cardholder is no longer employed at the University
    • Cardholder is transferring to another department within the University
    • Cardholder goes on leave
    • Cardholder is requested to surrender card due to violations of policies
    • If a terminated, suspended, or transferred employee continues to use this card, the original department will be liable for all charges. The employee may also be subject to criminal prosecution.

CARD TERMINATION

Non-adherence to P Card Policies and procedures will result in termination of individual Cardholder privileges and may result in the loss of the entire department’s privileges to use the P Card.

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AccessOnline

The departmental P Card Manager will review transactions and adjust any accounts on a weekly basis. Three days after the 25th of each month, Accounts Payable will download and post charges to adjusted accounts. Accounts Payable will receive one monthly statement for all University departments. Payment will be made on the due date.

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Reporting

Corporate Purchasing will review transaction data from US Bankand will summarize transaction activity into reports for administrative purposes.

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Purchasing Review

Corporate Purchasing will observe compliance with program guidelines by randomly selecting and reviewing a few transactions each month. The P Card Manager is responsible for providing supporting documentation for any P Card transaction upon request.

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