Purchasing Card Orientation WELCOME Purchasing Card Program The

Purchasing Card Orientation WELCOME

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 e. Shop. Most often, these types of small value purchases are done online, by phone, or fax. � BENEFITS: Ø Reduces paperwork normally associated with these types of purchases Ø The State of Georgia recognizes savings in administrative time and effort spent to process such transactions Ø You receive the product quicker! P-Card Orientation - Revised 4 -21 -17 2

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) � 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 P-Card Orientation - Revised 4 -21 -17 3

Why do we have training classes? #1 – Compliance Ø Annual p-card training is required by the state for cardholders and approvers. #2 – Awareness & Education Understand the use of P-Card: Ø How it can assist with making purchases. Ø Purchasing laws and policies of the State of Georgia and Augusta University. Ø Responsibilities as a Cardholder. Ø Roles and Responsibilities of other personnel involved in the P-Card Program. Ø Internal Controls to ensure compliance with state procurement laws and policies. Ø Proper Documentation, allowable purchases and unallowable. � According to the National Association of Purchasing Card Professionals: Understand the use of P-Card: ◦ “Effectively communicating, educating, monitoring, and enforcing compliance is the ultimate challenge for sound Purchasing Card program management. ” P-Card Orientation - Revised 4 -21 -17 4

AUGUSTA UNIVERSITY PURCHASING CARD USE OF THE STATE PURCHASING CARD IS A PRIVILEGE, NOT A RIGHT P-Card Orientation - Revised 4 -21 -17 5

Purchasing Card Hierarchy DOAS SPD State P-card Policy Board of Regents P-Card Policy Augusta University P-Card Guidelines/Plan P-Card Orientation - Revised 4 -21 -17 6

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 and Supply Chain: 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 P-Card Orientation - Revised 4 -21 -17 7

State Purchasing 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. P-Card Orientation - Revised 4 -21 -17 8

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. P-Card Orientation - Revised 4 -21 -17 9

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 the maximum # of cards for AU (384 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. P-Card Orientation - Revised 4 -21 -17 10

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. P-Card Orientation - Revised 4 -21 -17 11

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. P-Card Orientation - Revised 4 -21 -17 12

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. P-Card Orientation - Revised 4 -21 -17 13

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. P-Card Orientation - Revised 4 -21 -17 14

Order of Precedence for Purchases: (simplified) �Statewide Contracts �Agency Contracts �Mandatory Sources �Open Market Purchases Compliance with the order of precedence is mandatory. P-Card Orientation - Revised 4 -21 -17 15

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/defa ult. asp P-Card Orientation - Revised 4 -21 -17 16

What Can I Buy? � You can use the card for any Allowable expense that is within your transaction and card limits ◦ Reasonable and Necessary ◦ Must follow Order of Precedence � The Cardholder must not make P-Card purchases from friends or relatives where the cardholder has a financial interest. � The Cardholder must not accept any gift or gratuity that appears to influence the decision making regarding P-Card purchases. � Restricted Purchases covered later… P-Card Orientation - Revised 4 -21 -17 17

Spending Limits � Single Transaction: GA State Law (O. C. G. A) has set a limit of $4, 999. 99 (including shipping and handling) ◦ Very few exceptions available � � � Monthly Card Limit: subject to budget availability, and limits over $25, 000 must have special approval forms submitted to DOAS. Equipment: due to asset tracking, all goods valued at $3, 000 or above should be ordered via requisition/PO. Currently, purchases $25, 000 or above must be bid P-Card Orientation - Revised 4 -21 -17 18

Small Business and Minority-Owned Vendors � Vendor Diversity Initiative Ø This is a mandate of the Governor’s Office that we make every effort to enlist small and/or minorityowned businesses whenever possible. Ø We submit a quarterly report to the BOR for every dollar spent and what percentage is designated to these categories. Ø If you have contact with small and/or minority vendors, please encourage them to register with DOAS SPD for additional opportunities. P-Card Orientation - Revised 4 -21 -17 19

Obtain the Best Value cardholder must utilize the lowest price based upon requirements, quality, and availability to obtain the maximum value for each dollar expended. � The P-Card Orientation - Revised 4 -21 -17 20

Your Delivery Address § § Your name Your Dept / Room # 1120 15 th Street (only if a street address is mandatory) and only if your building does not have a physical street address) Augusta, GA 30912 Do not ship to the receiving warehouse. Do not have deliveries sent to a home address. Ø Ø P-Card Orientation - Revised 4 -21 -17 21

Sales Tax � SALES TAX ISSUES Ø We are GA state sales tax exempt. Ø Talk to your vendor to be sure they understand before the charge. Ø If a Tax Exemption Certificate is needed, please download from Purchasing website, sign and send to vendor. Ø Check item no. 2 Ø Check your receipt and if there is tax, have it credited immediately. Keep with receipt documentation. Ø Team Travel P-Cards may encounter tax with out-of-state motels and we are not exempt from out-of-state sales tax. Some do honor the tax exemption as courtesy, so please ask. P-Card Orientation - Revised 4 -21 -17 22

Registrations Ø Registrations may be paid by P-card if they are within cardholder transaction limits Ø Registrations may include meals or lodging ONLY IF these costs are included in the total registration fee. Optional meals or lodging may not be charged to your card. P-Card Orientation - Revised 4 -21 -17 23

Record Keeping IMPORTANCE OF GOOD RECORDS HELPS YOU! (AUDIT TRAIL) Ø Detailed Receipts are a must – state the business purpose if it isn’t clearly identified Ø Be sure receipts do not have tax added Ø Detail on the receipt must be itemized, detailing purchased items Ø The receipt total must match the Activity Log and Statement P-Card Orientation - Revised 4 -21 -17 24

Valid Receipt Must Include: �Order Date/Delivery Date �Supplier/Vendor �Description of Items Purchased �Itemized Cost(s) �Freight Amount (if applicable) �Total Transaction Amount v Combination of paperwork is acceptable to show all details (credit card receipt and packing slip) P-Card Orientation - Revised 4 -21 -17 25

Additional Documentation � All Membership Dues must include a copy of the “Accounts Payable Memorandum Form”. � All Subscriptions must include a copy of the “Use of State Funds to Pay Subscriptions Form”. P-Card Orientation - Revised 4 -21 -17 26

What Can Be Charged To a Sponsored Account? The Division of Sponsored Program Administration has the responsibility to ensure that cardholders use funds in accordance with applicable laws and conditions. Charges to a sponsored account must be: ◦ ◦ Allowable Allocable Reasonable Consistently treated � For additional information, please visit the Sponsored Program Administration website at: http: //www. Augusta University. edu/researchadmin/spa/ P-Card Orientation - Revised 4 -21 -17 27

Restrictions: Cash Advances Travel and Entertainment Motor Vehicle Fuel Professional Services (doctors, lawyers, photographers) P-Card Orientation - Revised 4 -21 -17 28

Restrictions: Gift Cards are considered Cash Gift Cards Personal Purchases Split Purchases Purchasing same item, but paying in split payments P-Card Orientation - Revised 4 -21 -17 29

Restrictions: Calling Cards (Phone Cards) Computer parts & components over $300 per item (to include shipping and handling) for repairs or upgrading. Examples include memory, motherboards, processors, repair items, etc. Computer supplies & peripherals over $999. 99 per item (to include shipping and handling). Examples include speakers, monitors, etc. Computer systems, I-pads, netbooks, laptops, tablets, all portable wireless devices or any item(s) with internet access – not including smartphones (Exception: Requires prior written approval from purchasing department) Jewelry License Renewal, IT (Exception: Software renewals through SRS are allowable purchases on the p-card if less than $1, 000 per item). P-Card Orientation - Revised 4 -21 -17 30

Restrictions: Personal items and/or gifts (items are considered personal if they are for the sole use of a state employee). Examples include coffee pots, food/beverages, pictures, plants, gifts for other faculty (retirees), study incentives unless supported by a sponsored account (see note). Reimbursements; to include food. Postage; submit an IDR to the Augusta University mailroom for supplies or services Restaurants, catering, or fast food establishments & Entertainment unless specifically supported by a sponsored account or by a departmental sales account (Prior Approval is needed). Sales and Use Tax Software that does store protected health information (PHI) or sensitive personnel/student information (i. e. social security numbers, etc. ), regardless of price, and software over $999. 99 per item. Memberships in the Augusta Chamber of Commerce. P-Card Orientation - Revised 4 -21 -17 31

Restrictions: Split purchases to circumvent credit, single equipment item, or transaction limits. Staffing, Temporary Personnel. Examples include Augusta Staffing, Kelly Girl, MAU, Sizemore, Georgia Personnel Services, etc. Single Transaction purchase of supplies (one vendor) greater than $4, 999. 99 Travel services such as airlines, hotels (to include reservations), car rentals, gasoline, cash advances, traveler’s checks, travel insurance, currency exchanges, meals and beverages, taxis, bus tickets, etc. No Amazon Prime Membership! No Greetings Cards, Invitations and Envelopes No Sam's Club or Costco DEA Controlled Substances (Must be purchased with a Purchase Order) P-Card Orientation - Revised 4 -21 -17 32

Works Payment Manager � Application we use for management of the cards, users, groups, card limits, and transactions associated with the p-cards � Cardholders, transactions � Costs reconcilers and approvers sign off on are allocated to specific PC#s and CFCs � Training is provided for Works once the new card is in use and transactions start appearing in Works ◦ Online tutorials also available on the Supply Chain website P-Card Orientation - Revised 4 -21 -17 33

Cardholder’s Responsibility It is the responsibility of the cardholder to safeguard the P-Card with the same (or greater!) diligence as would be shown to a personal credit card. Ø The card is embossed with your name, but it is tied to Augusta University funds Ø You are responsible for all charges posted to the account, so don’t share the card. ØThe card and card number should be safeguarded P-Card Orientation - Revised 4 -21 -17 34

Cardholder’s Responsibility Responsibilities include: � Understanding and following SPD, BOR and Augusta University purchasing and P-card guidelines � Using the card for department purchases when applicable � Maintaining on-going records of purchases to document expected and actual receiving dates � Keeping original receipts to reconcile with the statement � Assigning the correct allocation information in Works before signing off on transactions P-Card Orientation - Revised 4 -21 -17 35

Approval Process in Works: Cardholder – Approver(Manager) – Auditor (Krishna) � P-Card cycle starts and resets on the 28 th 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 on a week before the deadline. • Activity schedule available online for monthly deadlines P-Card Orientation - Revised 4 -21 -17 36

Approver’s Responsibility � The Approver for a P-Card is responsible for overseeing all expenditures made on the card and for guaranteeing that purchases adhere to all purchasing guidelines, as well as to state purchasing regulations. � The Approver shares legal liability for P-Card purchases with the cardholder. Approvers cannot be subordinates of cardholders for whom they are responsible. P-Card Orientation - Revised 4 -21 -17 37

Approver’s Responsibility It is the responsibility of the department approver to review and approve each PCard purchase: Ø PC#/CFC/Account Code charged Ø Detailed receipt Ø Activity/Transaction Log Ø Summary information/Comments Ø Vendor used Ø Backup Forms included (if applicable) P-Card Orientation - Revised 4 -21 -17 38

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 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 P-Card Orientation - Revised 4 -21 -17 39

Departmental Internal Controls ØThe Cardholder and the Approver must have very distinct and defined responsibilities for audit control. ØThe Cardholder, the person who receives the order, and the budget control person (approver/manager) should not be the same person. ØCHECKS AND BALANCES MUST BE IN PLACE!! P-Card Orientation - Revised 4 -21 -17 40

P-Card Compliance � All p-card transactions are reviewed to ensure compliance with p-card guidelines. � Transaction � Process yearly (Desktop) Audits – Completed daily (Field) Audits – Completed yearly/bi- The Department Chair, Director or Administrative Manager is responsible to review all cardholder transactions. Failure to do so, could result in disciplinary actions up to and including termination of employment. P-Card Orientation - Revised 4 -21 -17 41

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 P-Card Orientation - Revised 4 -21 -17 42

CARD VIOLATIONS � The Department of Administrative Services (DOAS), State Purchasing Division, expects every individual cardholder (and approver) 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. P-Card Orientation - Revised 4 -21 -17 43

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. P-Card Orientation - Revised 4 -21 -17 44

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 P-Card Orientation - Revised 4 -21 -17 45

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 P-Card Orientation - Revised 4 -21 -17 46

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. P-Card Orientation - Revised 4 -21 -17 47

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 P-Card Orientation - Revised 4 -21 -17 48

Lost or Stolen Card/Card Number �Notify Bank of America to verify legitimate transactions ◦ Fraud Dept: 866 -500 -8262 �Notify the Purchasing Office �Replacement Cards will be mailed to Purchasing, and you will be notified when available for pick-up P-Card Orientation - Revised 4 -21 -17 49

Statement Reconciliation Cardholder: � Assigns appropriate allocation information to transaction and signs off in Works � Verifies that all transactions for the current statement are listed on Activity Log and/or Transaction Log � Attaches original receipts and other necessary documentation to statement � Signs and date statement and obtains signature of Approver P-Card Orientation - Revised 4 -21 -17 50

Statement Reconciliation Preferred Order: � � � Statement signed by Cardholder and Approver Activity Log and/or Transaction Log Receipts and associated documentation (in statement order) P-Card Orientation - Revised 4 -21 -17 51

Card Changes/Card Cancellation Contact the P-Card Program Coordinator 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 P-Card Orientation - Revised 4 -21 -17 52

Q&A � Why is my card declining? A card can decline when it does not have available credit. Exceeding the single transaction limit. Fraud/Lost/Stolen It can also decline if cardholder is trying to purchase something over the internet and does not enter the address on the card exactly as it appears with the Financial Institution. ◦ Your card will decline if you have not allocated your transactions. ◦ The Merchant Category Code (MCC) is blocked. Each ◦ ◦ merchant that accepts a credit card has an assigned four-digit Merchant Category Code that identifies the type of goods/services provided. If An MCC code is blocked, the PCard will decline. P-Card Orientation - Revised 4 -21 -17 53

Q & A continued � If your P-Card is declined ◦ Contact BOA at 1 -888 -449 -2273. ◦ P-Card Administrator 706 -721 -9441. P-Card Orientation - Revised 4 -21 -17 54

Q&A � What is the difference between my monthly credit limit and my available funds? ◦ Monthly Credit Limit is the line of credit that you have been authorized to spend within a cycle period ◦ Available Funds is the Monthly Credit Limit minus any outstanding transactions that have not been signed-off by an Approver…it doesn’t matter when the transactions posted…two months ago or two days ago ◦ Pending charges will also be included in the “Balance” or total spend P-Card Orientation - Revised 4 -21 -17 55

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 P-Card Orientation - Revised 4 -21 -17 56

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 P-Card Orientation - Revised 4 -21 -17 57

Program Contacts: � Greg Woodlief: Director of Purchasing 721 -2213 gwoodlief@augusta. edu � Krishna Nichols: P-Card Administrator 721 -9441 knichols@augusta. edu � Vicky Reynolds: Procurement Audit Specialist 721 -2035 sreynolds@augusta. edu P-Card Orientation - Revised 4 -21 -17 58

� QUESTIONS? P-Card Orientation - Revised 4 -21 -17 59