P-Card Refresher Training -2017 Krishna Nichols P-Card Administrator knichols@augusta.edu 706-721-9441

Purchasing Card Program • The Purchasing Card Program is designed to allow the

Cardholders to directly purchase small dollar supply items or services that are not available in Health eShop. Most often, these types of small value purchases are done online, by phone, or fax.

• BENEFITS: – Reduces paperwork normally associated with these types

of purchases – The State of Georgia recognizes savings in administrative

time and effort spent to process such transactions – You receive the product quicker!

What is a Purchasing Card (P-Card)?

• A VISA credit card issued by Bank of America to purchase goods on behalf of Augusta University

• Augusta University is responsible for the payment of

the items you purchase on the credit card

• Your name and Augusta University embossed on the front

Why Do We Have Training Classes? #1 – Compliance

– Annual P-Card training is required by the State for cardholders, reconcilers and approvers.

#2 – Awareness & Education – Understand the use of P-Card:

• How it can assist with making purchases. • Purchasing laws and policies of the State of Georgia and Augusta

University. • Responsibilities as a Cardholder. • Roles and Responsibilities of other personnel involved in the P-Card

Program. • Internal Controls to ensure compliance with State procurement laws

and policies. • Proper Documentation, allowable purchases and unallowable.

– According to the National Association of Purchasing Card Professionals: “Effectively communicating, educating, monitoring, and enforcing compliance is the ultimate challenge for sound Purchasing Card program management.”

Purchasing Card Hierarchy

DOAS SPD

State P-Card Policy

Board of Regents

P-Card Policy

Augusta University

P-Card Guidelines/Plan

Purchasing Card Resources • DOAS State Purchasing – Purchasing Card Program Contract, State P-

Card Policy/Guidelines and the GPM - The Georgia Procurement Manual (GPM) Provides operational and administrative rules derived from the laws set forth by Georgia code. The rules are an authorized legal extension, bearing the same weight, significance and effect as Georgia law. – http://doas.ga.gov/State-purchasing/Statewide-card-programs

• USG – Business Procedures Manual: – http://www.usg.edu/business_procedures_manual

• Augusta University Purchasing Card and Supply Chain: Policy, Plan and Downloadable forms and tutorials – http://www.augusta.edu/supply/pcard/

• Compliance and Ethics Hotline (Confidential): – http://www.augusta.edu/compliance/hotline.php or call 800-576-6623

State P-Card Policy

• The State Purchasing Card Policy to establish minimum standards for use of the P-Card in order to ensure compliance with all applicable State laws pertaining to purchasing as contained in the Georgia Procurement Manual (GPM), issued by SPD.

The Policy posted on the SPD web site will always be the official Policy governing the P-Card program.

Updates to State P-Card Policy This communication is to announce the changes to the Statewide Purchasing Policy effective April 1, 2017. • Per the State Accounting Office, P-Cards can be used as method of payment

for: Unplanned, non-routine, or urgent point-of-sale purchases under $1,000. Purchases under $5,000 that are pre-approved prior to purchase (or fall under Special Exemption granted to the Specific Cardholder, for Specific Purchases, by the P-Card Office). The P-Card Holder must complete this process and gain required approvals prior to purchase. Approvers may vary by department but must include supervisors, budget managers/assistant deans. Point of sale transactions include purchases made at a physical store, in person, online or over the phone.

Updates to State P-Card Policy (Continued)

• State Entity’s Participating in the Card Program must have an Approved P-Card Plan.

Items required: ‾ Justification of need for each cardholder or job class. ‾ Justification of need for point of sale purchases based on job requirements. ‾ A scenario of card distribution that meets the statutory requirement of the maximum # of cards for AU (384 cards as of now). ‾ Establishment of time limits for determining when to cut off or cancel dormant cards based

on job requirements. ‾ An overview of Internal Controls surrounding card use. ‾ Establishment of an approval chain for each cardholder.

Updates to State P-Card Policy (Continued)

‾ Cardholder applications and renewals must be approved by the employee’s supervisor, P-

Card Administrator and the Chief Financial Officer. ‾ Cardholders, Reconcilers, Approvers and potential cardholders must meet all training

requirements. Anyone with access to Works must have training, (P-Card Orientation - initial training and Refresher – annual training)

‾ A minimum of two Approvers is required before a purchase is made (usually supervisor and budgetary), unless otherwise permitted in the policy.

‾ Approvers cannot be subordinates of cardholders for whom they are responsible.

‾ Reconcilers are limited to one per card, however one reconciler can be the sole reconciler on multiple cards.

‾ Limits on the number of cardholders assigned to a supervisor or approving official to ensure adequate review of business need and documentation for each purchase.

Updates to State P-Card Policy (Continued)

‾ Delegation of Approver duties is unallowable. Should an Approver be on leave or otherwise unavailable to approve a purchase or transaction, another trained approver already assigned may assume those duties temporarily.

‾ Sharing of login information or passwords is STRICTLY FORBIDDEN and a violation of card policy.

Augusta University P-Card Changes New Requirements: ‾ Spending Limit Adjustments (Impacted Few Cards)

‾ Limit on Number of New Cards (Cannot Exceed 384 – Our Present Number)

‾ New Credit Check Process (Pass or Fail Determined By State Contracted Vendor – Not

Institution)

‾ Reconciler / Approver Role Changes (Approver Cannot Be A Subordinate to Cardholder)

‾ Only Unplanned, Non-Routine, or Urgent Purchases Under $1,000, or Pre-Approved Purchases Up to a Card Holders Single Transaction Limit (STL), Can Be Placed on P-Card.

* Unplanned is defined as not anticipated or known in advance. * Non-routine is defined as commonplace tasks, chores, or duties done irregularly or at sporadic intervals. Not monthly or standard recurring. * Urgent is defined as compelling or requiring immediate action or attention, imperative, or pressing. ** Only one of the three criteria of unplanned, non-routine, or urgent must be met for a transaction to not require preapproval. Please keep in mind a lack of planning does not constitute an urgency.

Augusta University P-Card Changes (Continued)

** Note: The State has granted Augusta University SPECIAL EXEMPTIONS from the Pre-Approval process for specific cardholders in specific groups and only for specific purchases (Research, Patient Care / Health Care, Continuing Education, Lab Animals, Child Care, IT, Travel, Athletics, Study Abroad, Student Life & Engagement, Facilities) – SEE SPECIAL EXEMPTIONS LIST FOR CLARITY • New Pre-Approval Process (On the P-Card website under downloadable forms – this form must be

used unless purchase is exempted OR unless purchases are for unplanned, non-routine, or urgent needs under $1,000)

• The Primary and Secondary Approvers noted must sign in advance and are the only one’s allowed to Pre-Approve.

• Remember To Put Proper Notes In The Comments Section of WORKS For Any Unplanned, Non-

Routine, Or Urgent Purchases Under $1,000 (Or Exempted Purchase) As They Arise To Justify Why Pre-Approvals Were Not Obtained.

O.C.G.A. 50-5-83 • The O.C.G.A. 50-5-83 are requirements for State

purchasing card program that must be followed. Below is one requirement. Please refer to the link for the full list.

• O.C.G.A. 50-5-83(b)(12) requires criminal background checks on all employees hired for positions that are eligible for P-Cards and credit checks on all employees issued a P-Card after July 1, 2008.

• http://www.lexisnexis.com/hottopics/gacode/default.asp

Review Approval Process in Works: • Cardholder – Approver (Manager) – Accountant (Krishna) • P-Card cycle starts and resets on the 28th of each month • Balances become available once the Approver signs off • All transactions that post to Works must be allocated and

signed-off. – Exception: the charge is in dispute and Krishna/BOFA has been

notified – All transactions must be allocated and signed-off a week before

the deadline – Activity schedule available online for monthly deadlines

Review (Continued) Reconciliation: • Be sure to allocate all charges in Works to the correct

PC#/CFC/account code combination • Add comments in Works and on paper documentation (Comments are required for each transaction) • Comments in Works CANNOT be edited so be mindful • All charges on the Bank of America Statement must match the

charges on your Monthly Report/Activity Log • Include special approvals or any additional documentation with your

receipts • Sign and date Bank of America Statement • Statement Packets need to include the following items (in order)

- SIGNED and DATED Bank of America Statement - Activity Log/Monthly Report from Works - Detailed Receipts and related paperwork (in Statement order) - Documentation of FedEx/UPS charges for deliveries

P-Card “Don’ts” • No Travel (Registration is still allowed)

- Don’t even use it to hold a room • No Furniture • No equipment over $2,999.99 (including shipping/handling/set-

up/installation) • No personal items such as

- Hand sanitizer, facial tissues, dust busters, fans, heaters, microwaves, coffee makers

• No Amazon Prime Membership, Sam’s or Costco • No purchases are allowed on the P-Card for which the

Foundation will reimburse the University

P-Card “Don’ts” (Continued) • No orders over $4,999.99 • No splitting purchases

– This means splitting an order to avoid the single transaction limit. This is NOT ALLOWED and can result in loss of P-Card

– If you have an order that is more than $4,999.99 please contact the P-Card Administrator (Krishna) to discuss the best means of making the purchase

– No Memberships in the Augusta Chamber of Commerce – No Greetings Cards, Invitations or Envelopes – No Amazon Prime

P-Card “Do’s” • Below is just a small list of the allowable purchases. Please refer to

the P-Card Purchasing Do’s and Don’ts handout that was given to you in training and available on the website. – Books, Reprints, Pre-printed Matter – FedEx/UPS (All receipts must include the ship to address) – Dues/Membership (Must include the Accounts Payable

Memorandum Form; Cannot be an automatic renewal) – Registrations (Use of the P-Card is strongly encouraged,

except where this includes food & lodging that is priced separately)

– Software (Less than $999.99 per item and does not store PHI or IPI data elements)

Food Purchases

• Food purchases are currently limited to Student Activities and Athletic Team Travel

• Food purchases are allowed only under very rigid conditions and require special documentation

• Food may be purchased ONLY by those cardholders who have received prior authorization from the P-Card Office.

Card Violations • The Department of Administrative Services (DOAS), State

Purchasing Division, expects every individual (ex. cardholders, program users and approvers) to strictly adhere to the policies and procedures governing use of the State Purchasing Card.

– Failure to do so could result in disciplinary action up to, and

including, termination of employment. – Additionally, such failure could result in prosecution to the

fullest extent of the law, including financial restitution and criminal prosecution.

– Card Fraud over $500 results in a felony charge

• Additional procedures relating to violations are covered in the Augusta University Guidelines.

Suspended P-Card/Access

• Your P-Card can be suspended because: • You do not follow the Board of Regents, State of GA or

Augusta University’s established policies and procedures

• Habitual misuse • Intentional abuse - when this is the case, you will be

terminated and prosecuted

Card Sharing

The Augusta University P-Card is issued to one person and is to be used only by that person. Allowing others to use your card is a violation of card policy.

Split Transactions

• Split transactions are a violation of P-Card policy • Split transactions occur when a single purchase is

divided into 2 or more transactions to bypass single transaction or other card limits – cardholder splits transactions by placing separate

orders to the same vendor in a short time period – vendor splits a transaction in order to get the

transaction to post when it exceeds the card limit

Letter of Infraction

• Issued for any of the previously mentioned infractions to policies

• PLEASE DON’T TAKE IT PERSONALLY! (unless you get caught doing something intentionally wrong)

• The Letter of Infraction is for the audit file. If we question the purchase, the auditors will also. Documentation protects you and the card program.

Sales Tax

Augusta University is a GA tax exempt entity. The P-Card holder needs to inform the vendor of our tax exempt status prior to purchase. The tax exempt form is available on the website below: http://www.augusta.edu/supply/pcard/

Cardholder Responsibilities • Use P-Card for legitimate business purposes only • Safeguard the P-Card

- Keep in a locked drawer/file cabinet that only the P-Card holder has access to

• Do not allow others to use your P-Card • Obtain a receipt for all transactions • Understand allowable purchases and non-allowable purchases (If in

doubt, always check with Krishna) • Make sure that GA sales tax is not charged when making a

purchase with the P-Card • Reconcile Statements and receipts every month at least a week

before the deadline • Failure to meet the deadlines in place will result in infraction letters

and possible suspension of P-Card use • Immediately report lost or stolen cards to BOA and P-Card

Administrator (Krishna) • Immediately report fraudulent charges to BOA and P-Card

Administrator (Krishna)

Approver Responsibilities • Be familiar with the purchasing card policies and procedures • Review and approve monthly transactions in WORKS by the

deadline (Not just sign the Statements) • Approvers must be aware that they are just as responsible as the P-

Card holder for transactions • Attend annual training for review of P-Card policies and procedures • Approvers cannot be subordinates of cardholders for whom they are

responsible. • Maintains knowledge of cardholder responsibilities

Disputed Transactions

• Try to resolve the dispute with the vendor first. • Unable to resolve? The transaction should be

documented as being formally disputed – Contact Bank of America Customer Service and P-

Card Office – 60-day window to dispute charges

Card Changes/Card Cancellation

Contact the P-Card Administrator if… • Your name changes • Address changes • Phone number changes

Your P-Card must be destroyed and cancelled upon… • Retirement/Termination of Employment • Employee transfer from one department

to another

Q &A Regarding P-Card Changes:

1. Does this mean we can no longer pay meeting registrations or memberships dues with the P-Card?

Answer: No, this does not. It depends on whether or not you have received exemptions or not; or if you have received, in advance of placing the registration or membership order, the required signatures on the pre-approval form. 2. Can you please change my designation? Answer: Yes, however any changes must be submitted as Amendments to DOAS/OPB for approval and also changes will also depend on the types of purchases you make. 3. Do we use the P-Card purchase Authorization form or actually pre-approval

forms and they just stay in our departmental files? Answer: You are to use the Purchase Authorization Form only (available on our website under downloadable forms) prior to purchase and keep it on file with receipts and Statement packets.

Q &A Regarding P-Card Changes:

4. If the approver and the supervisor are the same person - do they just sign both departmental approval spots?

Answer: No, the people that sign the form are the people listed on the Special Exemptions spreadsheet as your Approver 1 and 2.

5. Does this mean we need to contact FedEx and UPS to remove automatic

charging to our P-Cards and set up invoicing? Answer: No, but if you have monthly reoccurring charges with UPS, you can complete the Purchase Authorization Form as a blanket form for one year.

Q &A Regarding P-Card Changes: 6. Can a cardholder that works in a Research or Patient Care area receive the

Research/Patient Care Pre-Approval waiver? Answer: Perhaps - but the cardholder would need to make frequent Research and Patient Care purchases as well. We would need to know the vendor, types of purchases, and frequency to make an informed decision. 7. We had 2 cardholders already leave and will have 5 cardholders leaving soon.

We will have new faculty/labs coming as well. Can we “hold” 7 spaces for the incoming faculty/labs in “exchange” for the cardholders we lost?

Answer: No, spaces can not be held for incoming applicants.

8. What if we have a form that we use in our department prior to purchases, do we still need to use the Pre Authorization form that the P-Cad Office has?

Answer: Yes the form created by the P-Card Office must be used.

Q & A

• What do I do if I see a charge in Works that I did not make? – Fraudulent charge - call Bank of America at (866) 500-8262 to

report it • They will review recent charges on your account to verify which

ones are valid, issuing a credit for those that aren’t • May send you a form that must be submitted back to them • A new card will be issued with a new number and mailed to

Krishna – Disputed charge – call Bank of America at (866) 601-9490

• Documentation must be submitted for the disputed charge • Temporary credit may be issued until dispute is resolved

– Notify Krishna in either circumstance, as these fraudulent or disputed transactions must be noted on the master reconciliation

Q & A • What do I do if I get charged sales tax?

– Contact the vendor to get a refund – Email or fax a copy of the sales tax exemption form to the vendor if

necessary – Put comments on P-Card documentation – Put comments in Works – Sign-off on transaction…don’t leave it pending – When credit posts for taxes, allocate to the same account as the

original charge • Do I need to get a credit for a returned item or sales tax in the same

month as the original charge? – No

• Put comments in Works and on documentation • Allocate and sign-off on original charge • When credit posts, allocate to same account as original charge

Q & A • Do I need to do anything when I notice that my P-Card is about

to expire? – No, renewal cards are automatically sent each month to

Purchasing – You will be notified by email if there are any requirements to be

completed prior to receipt of the replacement card • What do I need to do if my approver is on an extended leave of

absence? – Contact Krishna to setup a secondary person in charge of the

department – The secondary person can be set up in Works as a backup

approver and trained on P-Card regulations

Q & A • Can I use my P-Card instead of going to Health eShop?

– No - if the vendor is a Health eShop vendor, or if there is a vendor in Health eShop that offers a comparable item • Exceptions require prior approval and comments should be

added to documentation and Works – No – if the item is from a Health eShop vendor, but not available

in Health eShop (“restricted” items), then a “regular” special request requisition needs to be entered • Yes – if the item, or comparable item, is not available from a

vendor in Health eShop

Reminder • Due to E-Verify requirements, any physical performance of services

$2,500 and greater must go on a requisition not the P-Card.

Thank You! You have now completed the P-Card Refresher Training. Please continue to the P-Card Refresher Training Quiz.