september 2019 quarterly newsletter...have any questions about how the pcard process will change are...
TRANSCRIPT
UR Pcard
Inside this issue
Pcard/Workday Project Update 2
P2P Demo Days, Pcard Snapshot 2
Gift Cards & Participant Payments 3
US Bank Electronic Statements 3
‘Why Can’t I Use My Pcard for That?’ (An A to Z on Allowable & Restricted Categories for Pcard) 4,5
Pcard Tips: Finding Those Missing Transactions Every Month 6
Departments Newly Onboarded to Pcard Program in the last 90 Days—Welcome!
Center for Emerging & Innovative Sciences
Office of Minority Student Affairs
Developmental & Behavioral Pediatrics
SMH Supply Chain
Center for Nursing Professional Development
Athletics & Recreation
Pcard Administrator’s Corner A few weeks ago, I celebrated my 10-year service date anniversary as an employee of the University.
Given how rare it tends to be in today’s economic climate for an individual of my generation to remain
within the same organization for so long, the occasion gave me cause to stop and reflect.
How did I get here? And where in the world did ten years go? For
those who may not be aware, my background is in education. I always
thought I’d be a teacher; that’s the proverbial basket I put all the eggs
in, and then…..the world doesn’t end up working the way you figured it
would. With no success finding employment in the schools, I ended
up in the customer service industry for a couple years, and then
invariably managed to find my way to the University.
Not to sound cliché, but an important lesson I learned along the way is
that you never really know how much opportunity you have to grow
until you step outside of your comfort zone. Ten years ago I would
have laughed if you had said I would eventually be managing the
purchasing card program for the largest employer in the region. No pressure whatsoever.
But as I spent more time in customer service-based roles, I realized that I was good at it. And I truly
enjoyed helping people resolve issues and get what they need. In the previous newsletter issue, I
mentioned that I had been reading Stephen Covey’s ‘Seven Habits of Highly Effective People’. One of the
ideas mentioned that started to resonate with me recently is the concept of a personal mission statement.
While it’s certainly not a new concept by any means, I realized this was a way I could keep myself
accountable in maintaining personal growth. So after a lot of reflection, I figured out my mission
statement: A life of service to others is a life well-lived.
A couple years ago, one of my fellow colleagues here in Purchasing retired after just shy of 50 years
employment at the University. I always admired him because he embodied that same spirit of service
and selflessness to others. We named one of our conference rooms after him in his honor after his
retirement. I often joke that it’s my goal to surpass his service date mark and make it fifty years.
There’s quite a ways to go yet.
We all leave some legacy. I’ve decided that mine will be: ‘What can I do for you today that will make
your life better?’
Nathan Hodge
Manager-Pcard Program
SEPTEMBER 2019 QUARTERLY
NEWSLETTER
Pcard Snapshot
Total active cards at end
of FY19: 560
(increase of 43% from
previous year)
Total active departments
at end of FY19: 232
(increase of 54% from
previous year)
Total program spend for
FY19: $12.8 million
(increase of 41% from
previous year)
Total number of Pcard
transactions: 49,467
(increase of 23% from
previous year)
Top 3 Merchant Spend on
Pcard for FY19:
Amazon ($1.2m)
Thorlabs ($240k)
Google ($228k)
Top 3 UR Company Spend
for FY19:
School of Medicine &
Dentistry ($3.7m)
School of Arts & Sciences
($2.3m)
School of Engineering &
Applied Sciences ($1.7m)
2
PCard/Workday Project Update
Changes are coming soon to how you approve/reconcile your
Pcard activity.
In the previous issue of this newsletter, it was mentioned that work had begun on a
project between Accounts Payable, Procurement, and University IT to migrate the
PCard Reconciliation Process away from the bank portal in Access Online and move it
to the Workday platform.
As the University transforms its methods for buying & paying through Procure-to-Pay,
having all purchase/payment methods (requisitions, invoice payments, and PCard)
flow through the same platform in Workday will bring more transparency to
department fiscal activity as well as simplify the experience for end users, not having
to log in to multiple applications to manage financial transactions.
A preliminary project timeline had been established in June, with design work slated
to occur over the fall, user training to be scheduled in the November-January
timeframe, with go-live shortly thereafter.
As of this writing, the project timeline for Workday PCard has been pushed back until
April 2020 at the earliest due to competing demands for resources supporting
Procure-to-Pay and the Workday Student project. Senior leadership has asked the
project be delayed until all University departments have gone live with
Procure-to-Pay; the final rollouts are scheduled to occur in March 2020.
Project updates will continue to be shared as they become available. Those who
have any questions about how the Pcard process will change are encouraged to
contact the Pcard Administrator.
Procure-to-Pay Demo Days Staff are encouraged to attend an upcoming Procure-to-Pay Demo Days session, to learn
more about the P2P process and how it is transforming the University’s purchase-to-pay
landscape. These sessions have been held on a monthly basis.
Pcard is an integral part of P2P, as departments are encouraged to utilize their Pcards more
frequently for acceptable purchases $2,500 and less.
September & October Sessions:
Medical Center: Wednesday, September 25, 2019 in RM 3-7619 Upper Auditorium
Thursday, October 24, 2019 in RM 3-7619 Upper Auditorium
River Campus: Friday, September 20, 2019 at Larry and Cindy Bloch Alumni &
Advancement Center-Seminar Room (300 E.River Rd)
Wednesday, October 23, 2019 at Larry and Cindy Bloch Alumni &
Advancement Center-Seminar Room (300 E.River Rd)
Register at the UR Procurement website!
https://www.rochester.edu/adminfinance/urprocurement/p2p-demo-days/
Upcoming P2P Rollout Dates (subject to change):
Rollout 2 — 9/23/19 School of Medicine & Dentistry departments (Company 040)
Rollout 3 — 11/18/19 Remaining SMD departments; begin Strong Memorial Hospital &
Medical Faculty Group departments (Company 050, 091)
Rollout 4 — 1/20/20 Continue SMH, MFG departments; begin Health Sciences Division
departments (Company 090)
Rollout 5 — 3/16/20 Remaining SMH, MFG, HSD departments; all other slippage
“The most important persuasion tool you have in your entire arsenal is integrity.” - Zig Ziglar
For those who may not be aware, the purchase of gift cards via Pcard is limited, per policy, to the reimbursement of research
study subjects for participant payments.
Gift cards can not be purchased via Pcard as gifts/awards for students or employees.
If gift cards are purchased as study participant payments, departments should be aware that per ORPA guidelines, they
cannot be charged directly to a grant during the Pcard reconciliation process. The charge must first be made to an operating
account and then charged to the grant via journal entry when the gift card is actually given to the study participant.
There is also a restriction on what types of research studies are permissible to allow purchase of standard gift cards as
participant payments. Grants under clinical trial studies should only utilize the Bank of America pre-paid payment cards,
which is managed by the Office of Treasury. All grants with no clinical billing risk are not subject to this restriction.
Those who may have questions about this policy are encouraged to contact the Pcard Administrator, or Mike Ritz in the
Office of Research & Project Administration, or Kathy King-Griswold in the Office of Treasury.
The University’s Pcard provider,
U.S.Bank, has announced that they are
promoting sustainable business practices
while supporting economic growth.
As part of this initiative, U.S.Bank will be
migrating all accounts from receiving
paper statements to more
environmentally friendly electronic
statements.
All Pcard accounts will be migrated to
electronic statements on October 1st,
2019
Electronic statements will provide the
following benefits:
Fast — immediate access to
statements
Convenience — logging in is easy.
Users can opt to receive an email
notification when their statement is
available
Secure — requires login & password
to Access Online to view statement,
no paper produced with sensitive
cardholder information
Environmentally Friendly — less
clutter and less impact on the
environment
For more information on how to access
electronic statements following the
migration, please contact the Pcard
Administrator.
If you must remain on paper statements,
you can contact the Pcard Administrator
after the migration to make the switch
back.
3
Reminder: Policy Regarding Gift Cards for Study Participant Payments
US Bank Migrating to Fully Electronic Statements
Did You Know?
You can request an
increase in your monthly
Pcard credit limit. If you
find you are running close
to your monthly limit or
have charges regularly
declined, having some
wiggle room with your
monthly limit can keep
you from having to issue
check requests or use a
personal card.
To request an increase on
your card’s monthly limit,
written authorization
from the department
financial administrator or
department chair should
be sent to the PCard
Administrator.
(An email is sufficient for
audit requirements)
4
Why Can’t I Use My Pcard for That? (An A-Z on Allowable & Restricted Categories on Pcard)
One of the most frequent questions I am asked on a daily basis is whether a certain purchase is
acceptable on the Pcard. This practice is highly encouraged, because it shows that a
department is stopping to consider the pros & cons of the different procurement methods
available to them.
The Pcard is a highly valuable tool, allowing for timeliness of ordering, elimination of paper
processes, and greater flexibility. But it cannot, and should not, be used for everything.
Factors to Consider When Using your Pcard:
Risk
One of the primary reasons a category may be restricted from use on the Pcard is because the
purchase may present a high financial or physical risk to the organization. One of the drawbacks
of using Pcard is that standard credit card activity is not protected by the University’s Terms &
Conditions, where a traditional purchase order is. If the purchase presents a high degree of risk to
the University, the Pcard is not the recommended method of purchase (see next page for
examples).
SOLO Suppliers
Purchases from SOLO suppliers (i.e. Staples, Fisher Scientific, VWR, etc), while not necessarily an
excluded category, are not recommended to be purchased on the Pcard, as the current SOLO
structure of ordering from the direct supplier website, and the future state of ordering from these
suppliers through the P2P Marketplace allows us to capture contracted pricing and reportable line
item detail. Not all suppliers pass along line-level detail to the bank via credit card, so contract
pricing cannot necessarily be verified when that method is utilized.
Business Purpose
All purchases made on the Pcard must have an official business purpose, meaning the purchase
must support, either directly or indirectly, departmental operations or strategic goals. Purchases of
a personal nature should not be made on the Pcard.
Real-life examples:
1. Department wants to purchase lunch for their residency students on a weekly basis.
Is this a valid business purchase? Yes. Food/beverage for business meals (excluding alcohol) is
acceptable on Pcard.
2. A faculty member has to renew a professional membership. Is this a valid business
purchase? Yes. Even if the membership may be in their name, if it is being utilized exclusively in
support of their work, and therefore University goals, then it is acceptable.
3. A department administrator wants to purchase flowers using their Pcard for their
admin assistant who had a family member pass away. Is this a valid business purpose? No.
Flowers for a business event would be acceptable, but this situation would constitute a purchase of
a personal nature.
Green Light Categories: Common Acceptable Uses for Pcard
Food & Beverage (onsite UR business functions; excluding alcohol)
Professional training, Conference Registration Fees (excluding travel/transportation & lodging)
Subscriptions, Reprints, Publication charges
Books & Media (excluding textbooks)
One-time repairs
Lab/Research supplies
Deposits (i.e. venue reservation)
General supplies or materials (non-medical) under $2500
Red Light Categories: Do Not Use your Pcard
Capital Equipment (i.e. with a useful life of greater than 12 months and unit cost greater than $1,000 —
- request a Purchase Order)
Medical/patient care supplies (high risk category —- request a Purchase Order)
Controlled substances/pharmaceuticals, medications (refer to SMH Pharmacy)
Travel & related purchases (airline tickets, transportation, lodging —- utilize F2 Request for Advanced
Travel Tickets for airline tickets, all other travel expenses utilize University AMEX Travel Card)
Computers (moderate risk category —- refer to UR Tech Store)
Alcoholic beverages (utilize check request or personal credit card where appropriate)
Textbooks (refer to UR bookstore at Barnes & Noble)
Sales Tax (University is tax exempt —- if a supplier charges you sales tax on your Pcard order, follow up
with the Pcard Administrator to obtain a copy of the Sales Tax Exempt Form)
Furniture (refer to UR preferred suppliers: Sedgwick & Workplace Interiors)
E-Bay purchases (high risk supplier)
Most purchased services (high risk category —- request a Purchase order —- category is very broad/
generic, so some specific examples are listed below)
- Consulting; Independent Contractors; Services purchased from an individual
- Utilities; Construction; Cleaning/Janitorial services, Legal/HR/Financial Services
- Any purchase requiring the execution of a signed contract agreeing to a supplier’s
Terms & Conditions (as opposed to a standard supplier quote or invoice)
(Continued from Page 4)
5
Other Policy Restrictions
Split Transactions
Real-life example: A department receives an invoice for $4,000 from a supplier for a single order. The
department authorizes the vendor to make two separate charges of $2,000 against the Pcard to pay the invoice.
This is considered a violation of policy, as the single-purchase limit of $2,500 was circumvented.
How should I proceed if presented with this issue?
Request a purchase order or issue a check request, depending on the order, or see table on right
(Exceptions to the Rule)
Card Sharing/Delegation of Use
Real-life example: Faculty member ‘A’ owns a Pcard. ‘A’ delegates their lab staff/technicians to make
purchases for their research using the Pcard.
Real-life example: Staff member ‘B’ owns a Pcard. Staff member ‘C’ does not. ‘C’ asks to borrow the
Pcard from ‘B’ to make a purchase.
Both of these situations are violations of policy. Only the individuals who name is on the card is authorized to
use it. Delegating use of the Pcard to other staff members increases the risk of fraudulent purchases. If the
card ever became compromised by an external source, the University loses its liability protections if the card in
question was utilized by multiple people other than the named cardholder.
How should I proceed if presented with this issue?
The named cardholder should be the individual initiating all card purchases. If that is not practical for the
department, they should follow up with the Pcard Administrator regarding how to proceed.
Exceptions to the Rule
Department cardholders may
request a one-time exception
to any of these categories if a
given purchase is unique or
unable to be processed via
the preferred method.
Requests should be made to
the Pcard Administrator in
writing (email), and should
include the cardholder,
department financial
approver, and department
head (optional). All relevant
information pertaining to the
purchase (email
communications, price
quotes, etc) should be
included.
Approval of the request will
be at the discretion of the
Pcard Administrator. The
following criteria will be
reviewed before a
determination is made:
- Level of risk (financial or
physical) posed to the University
- Confer with appropriate
purchasing manager regarding
any potential contract conflicts of
interest
- Alternatives to using the
Pcard
It happens every month. You think you have reconciled all of your Pcard
transactions without an issue and come to find that one or two purchases end up
sneaking under the radar and posting the last day of the cycle, and they inevitably get
missed and end up charging to your default account codes in error.
How do you prevent this? Making the assumption that your activity has otherwise
all been properly reconciled, when you log into Access Online and navigate to
‘Transaction Management’, the default setting under ‘Billing Cycle Close Date’ will say
‘Open’. In most cases, nothing will be there right after the cycle closes, because no new
activity will have posted yet. If you change it to the cycle date that has just closed, you
will see all the transactions that posted within that month, including anything that
happened to post right up against the deadline. (see screenshots below)
As long as you are still within
the couple of days after cycle
close where you can still make
reconciliation changes, then
you should be able to close out
the remaining transactions.
If you are beyond that 2-3 day
window, then the transactions
will be locked and only able to
be modified via journal entry.
Pcard Tip: Finding Those Missing Transactions Every Month
6
6
On average, about 270 transactions (or 6% of all system Pcard activity) are not fully reconciled during a given month
Roughly 75% of these instances are transactions posting the final day of the cycle
All cardholders should be checking their activity in Access Online at least once per week if they are using their card regularly