2.7 Procurement Card (Revised as of 2/1/16)

A. Overview

The Wayne State University Procurement Card (Procard) is a credit card used solely for small dollar transactions of valid university related purchases for goods and services. It cannot be used for travel and entertainment, nor for the purchase of commodities, services or expenses prohibited by university policies or for items listed as unauthorized in Appendix 2.7.2. Use of the Procard is intended for single transactions for up to $2,000.

The Procard may be used at merchants who accept Visa credit cards and where the purchases are within the stated guidelines. However, the university has authorized the bank to block certain merchant categories, such as airlines, restaurants, jewelry stores and others. All cardholders are urged to advise merchants at the point/time of sale that the university is a tax-exempt institution. 

The Procard is intended to simplify and decentralize the procurement process for low dollar transactions and should eliminate or reduce the need for petty cash funds. Utilization of the Procard should also expedite delivery of goods/services and reduce payment processing time and expense.

Definitions of certain relevant terms appearing in italics used throughout this policy are summarized in Section E.

B. Policy

  1. A Procard may be issued to any full time employee who resides in the United States or Canada and obtains the appropriate approval from the president, vice president, associate/assistant vice president of the division, the dean and/or department chair/director as applicable for the schools, colleges and divisions; and business affairs officers for the assigned S/C/D. Persons who do not reside in the United States or Canada, non-university personnel and non full-time employees, including but not limited, to temporary employees, students, graduate students, guests, or independent contractors, are not eligible for a University procurement card.
  2. The Procard can only be used for university purchases.  No personal purchases may be made with a University Procard.
  3. The applicant must complete the New Cardholder Account Application form (See  Exhibit A) and obtain all required approval signatures before a request will be processed.
  4. In order to obtain a Procard, the applicant must attend a mandatory classroom training, or take the online Procard Applicant Course and complete the online Procard Applicant Test.  Applicants must successfully pass the required test, prior to card issuance. Cardholders whose cards are terminated for recurring policy violations, will be required to repeat mandatory training or take the online Procard Applicant Course, prior to approval for issuance of a new Procard.
  5.      The applicant is required to sign a Cardholder Agreement (See Exhibit B) in order to receive the card.
  6. The Procurement Card Office (Procard Office) must receive the New Cardholder Account Application form within 90 calendar days of applicant attendance at the mandatory training and/or completion of the online Procard Applicant Test.  If the Application form is not received within the 90-day period, the applicant must repeat the training.
  7. The applicant is required to sign the Authorization for Release of Credit Card Receipts form (See Exhibit C – This can be removed as we have added the Authorization of Release of Credit Card Receipt clause to the Cardholder Agreement – JSCB) before receipt of the card.
  8. The cardholder must keep the card number confidential.  The person named on the card is the only person authorized to use the card. The card is not transferable.
  9. Lending or sharing the card or the card number is strictly prohibited. The cardholder (name reflected on card) is ultimately responsible for all charges applied to the card.
  10. The cardholder must obtain detailed receipts for purchases from the merchant at the point/time of purchase. All receipts must be uploaded to the Procard Transaction Management System where they will be retained electronically for a period of seven (7) years. 
  11. To access the Procard Transaction Management System the cardholder should log into the campus Academica Self-Service application ( https://academica.wayne.edu/) and navigate to Employee Resources – Document Management – Procard Transaction Management System.   

a. Select vendors offer Level 3 itemized information.  In such cases, the Procard Transaction Management System will create an automatic receipt.  If the automatically generated receipt information is accurate, and receives approval from the cardholder, coordinator and business affairs officer, it will be considered a valid copy of a receipt.  An additional description may also be included in the "comments" field to further validate the transaction's university purpose. 

b  In such cases where the Level 3 receipt is inaccurate or insufficient, a copy of the original receipt should be scanned an uploaded.  Coordinators and/or business affairs officers reserve the right to request an original scanned receipt for any transaction prior to approval.

  1. If a cardholder's Procard is not used for more than a twelve (12) month period, the card may be cancelled by the Procard Office.  Cardholders will be notified in such instances. In addition, new or replacement cards not activated for more than a three (3) month period may be cancelled by the Procard Office.  Cardholders will also be notified in such instances.
  2. Each unit/department must have appropriately trained Procard coordinators to monitor all procurement card purchases.  Each cardholder must be assigned to a coordinator.  A cardholder cannot be his/her own coordinator.
  3. The coordinator must review and approve all cardholder submitted activity electronically through the Procard Transaction Management system on a monthly basis. (See detail in Section 2.7, IV.6).
  4. Cards Issued on a Sponsored Program Account (Grant/Contract)
  • Cardholders are responsible for ensuring that purchases meet grant agency requirements. Charges must be reasonable, necessary, and appropriate to the specific grant. If there are ambiguities, questions or concerns, the cardholder must consult with Sponsored Program Administration.
  • Cards issued on sponsored program accounts will be set up to expire in accordance with the "Budget Period End Date" reflected in Banner. The cardholder must contact the Procard Office to obtain an automatic renewal card if the grant is renewed or extended before the card end/expiration date. If the grant is renewed or extended, after the card end/expiration date, a new card application must be completed and submitted to the Procard Office.  (Note: cards can be setup up with 3 or 5 year expirations upon request, but the card limits will be systematically reduced to $0.00 in accordance with the "Budget Period End Date".  The cardholder is still responsible for notifying the Procard Office of grant renewals or extension before the card limits will be restored).

16.   Purchases made with a Procard:

  1. Must be for official university business use only
  2. Must be less than  $2,000 per transaction*
  3. Can total no more than  $20,000 per month*
  4. Must comply with all university purchasing, expense guidelines (see APPM 1.3.1), and Procard policies
  5. Must be shipped to Central Receiving or to a university departmental address
  6. Must comply with any special requirements of projects supported by sponsored funds
  7. Rebates on purchases must be made payable to the university and sent to the Procard Office for proper disposition.
  8. Vendor "gifts" or "no charge incentives" with purchases must be refused at the point of sale or, if they are sent automatically to the department, they must be turned over to the school/college/division head and must be used solely for educational purposes.  See Board of Governors Code 2.72.03.010.

*    In certain circumstances, the Procard Office may authorize a higher spending limit. Requests for increase in limits, or for Procard purchases of certain unauthorized item exceptions (see Appendix 2.7.2), must be submitted in writing to the Procard Office. No purchase of unauthorized items shall be made without the written authorization of the Procard Office.

C. Violations of Policy and Consequences

Cardholder violations include but are not limited to the following:

  • Fraudulent use of the card including the purchase of personal items
  • Purchase of goods/services specifically prohibited by this policy or any other University Policy
  • Splitting a charge to circumvent the transaction limit
  • Failure to obtain and electronically submit valid receipts for all purchases
  • Allowing the use of the card by others
  • Instructing merchants to ship to an address other than a university address
  • Failure to provide detailed proof of purchase to the Procard Office within 10 business days when requested

Cardholder violation of the Procard Policies and Procedures consequences:

1st Occurrence

  1. A notice of violation will be sent to the cardholder, coordinator and the business officer/administrator.
  2. Depending upon the severity of the violation the card may be cancelled immediately (e.g.. fraud, personal items, shipments to a residential address, sharing the card or the card number with others, failure to provide valid documentation, etc.), and/or disciplinary action, including discharge, or legal [both civil and criminal] action may be taken.

 

2nd Occurrence

Card will be cancelled for a minimum of four (4) months.

 

Coordinator:  Violations of Policy and Consequences

a.  A coordinator and business affairs officer's failure to review and electronically approve cardholder submitted transaction activity by the 10th of the month b- may result in the suspension of all cards he/she is responsible for until such time that the activity has been accounted for by both the assigned coordinator & business affairs officer.

b.  Approval of transaction activity with known misrepresentations or omissions will result in immediate suspension of all cards reporting to the coordinator    until such time as a new coordinator is assigned and trained in his/her responsibilities.

c.  On-going problems with the Procards under a specific coordinator and/or in a unit or department will prompt a thorough review of all card activity.  Should the review confirm serious errors, omissions and/or irregularities, the Chief Financial Officer would review the documentation and sign off on the cancellation of all cards, if deemed appropriate, under the coordinator and/or in the unit/department for a minimum of four (4) months.

D.  Card Cancellation, Transfer/Termination

Upon notification of termination, departure from the university, transfer to another department within the university, or if the employee ceases to be a full-time employee, the coordinator or assigned business affairs officer must notify the Procard Office to cancel the procard no later than the effective date of the change and the card must be destroyed immediately.

All charges resulting from the unit/department's failure to notify the Procard Office in a timely manner will be the responsibility of the unit/department.

E.  Lost or Stolen Cards

Lost or stolen cards must be reported immediately to the Procard Office at 577-3708. After normal business hours, call Bank of America / Stolen Cards Services at ( 1-888-449-2273  and select the Lost/Stolen Card Services option. The card will be cancelled and a new card will be as soon as possible. The cardholder must inform the department procard coordinator and business affairs officer, of the missing card.

Any charges resulting from the cardholder's failure to notify as directed, in a timely manner, will be the responsibility of the unit/department.

F.  Definitions

The following definitions apply to these terms as they are used in this policy:

Authorized Application Approvers

President, vice president or associate/assistant vice president and deans, chairs/directors as applicable and business affairs officer

Bank

 Bank of America

Blocked Merchant

A merchant who primarily provides goods and services prohibited for purchase via the Procard.

FOAPAL

Account structure in the university's Financial Management System (FMS)

(Fund Organization Account Program Activity Location)

Merchant

Businesses that provide goods or services and accept payment via the Visa Procard.

Procard Transaction Management System

An online system driven by the WSU Academica Portal access.  Located under the Employee Resources Document Management Services section.

Small Dollar Purchase

Any single Procard transaction that is less than $2,000.

"Splitting" a Transaction

More than one transaction, to the same merchant, to circumvent the $2,000 limit per transaction.

Transaction

A single purchase from a merchant that is charged directly to the Procard and does not exceed the $2,000 limit.

Unauthorized Purchase

Goods or services that should not be purchased with a Procard (See Appendix Section 2.7.2 of this document for a list of specific unauthorized purchases, the APPM on Expense Guidelines 1.3.1, and anything deemed to be inappropriate under University policy.)

G.  Responsibilities

  1. President/AVP/VP and Dean/Chair/Director
  1. Appoint or change a Procard coordinator (primary and backup).
  2. Authorize individuals within the department/unit to obtain Procards by signing the   completed applications.

 

  1. S/C/D Business Affairs Officer
  1. Determine who should obtain a card.
  2. Designate/approve the FOAPAL for each card to be issued.
  3. Oversee appropriate use of cards for the school/college/division.
  4. Determine appropriate reporting responsibility and verify that no coordinator is subordinate to the cardholder.  Recommend individuals to function as coordinators to the President/VP/AVP and Dean/Chair/Director.
  5. Establish procedures and monitor activity to ensure proper reconciliation of procard transactions to Banner financial system for the school/college/division.
  6.  Perform a monthly review and approve all electronically submitted activity that has achieved cardholder and coordinator approval from the school/college/division.

 

  1. Cardholder

             1.Obtain detailed receipts for purchases from the merchant at the point/time of purchase

             2.For purchases made by telephone, instruct the merchant to mail the invoice/receipt directly to the                      

                cardholder. Receipts must reflect the quantity, description, vendor name, vendor address, transaction date, and                 unit price for all items purchased. 

             3.Advise merchants at the point/time of purchase that the university is a tax-exempt institution. 

a. The cardholder will be responsible for notifying the Procard Office and submitting reimbursement for any unsubstantiated transactions.

b. Provide written explanation via email to the Procard Office for all missing or incomplete documentation. If the receipt does not detail what was purchased, write a description within the comments section of the Procard Transaction Management System of the goods or services purchased. Where appropriate, a sample document or photocopy of the item should be uploaded and attached in the Procard Card Transaction Management System.

4.Provide accurate shipping instructions to merchants to ship to Central Receiving or to the unit/department address.

5.Review all transactions for accuracy within the Procard Transaction Management System. Upload a copy of all applicable receipts and electronically approve for review by the procard coordinator.

6.All transactions must be charged to the appropriate index. Transactions may be reallocated to a different index at any time during the monthly billing period, however they must be completed before the Procard Accounting Monthly Closing Period https://procurement.wayne.edu/about/procard-deadlines.php.

7.Report all discrepancies/errors and resolve issues as soon as they are identified, but no    later than 30 days after the transaction posting date. Report discrepancies/errors with the Procard Transaction Management System to the procard coordinator and take steps to correct those errors with the vendor.  It is the cardholder's responsibility to follow-up on credits for returned merchandise. Credit must be to the same FOAPAL number as the original charge.

8.A Dispute Form for discrepancies/errors must be submitted to the Procard Office within 45 days of the transaction posting date.  If submitting a dispute within the month, or within the 10 day review period after a month has ended, the dispute form can be uploaded in the Procard Transaction Management System and the transaction can be "Approved as Disputed".  The Procard Office will file the Dispute Form Bank of America.  Failure to adhere to the 45 day timeline will negate the opportunity to file a claim.

9.Notify the Procard Office 577-3708 (or Bank of America 1-888-449-2273 if after hours) immediately if the card is lost or stolen. The card will be cancelled and a new one will be issued. 

  1. Coordinator

Business affairs officers, business managers or other administrators must perform the coordinator function for each school/college/division (S/C/D).  Coordinators must have sufficient seniority and financial background to provide prudent oversight. Coordinators must not be in a subordinate position or a direct reporting line to the cardholder. A cardholder cannot be his/her own coordinator.  Each S/C/D should appoint a sufficient number of appropriately trained and responsible individuals who will complete the following duties:

  1. All designated Procard oordinators are required to attend training.
  2. Sign Procard cardholder applications and obtain appropriate approval signatures.  Forward the cardholder application to Procard Office for processing.
  3. Immediately notify the Procard Office and collect and destroy Procards when an individual terminates employment at the University or transfers to another department.
  4. Immediately notify the Procard Office to report any incident of possible abuse of Procard. Procard coordinators may request revocation of purchasing privileges, temporarily or permanently, of a cardholder who fails to comply with any policy.
  5. Review all cardholder electronically submitted transactions in the Procard Transaction Management System for accuracy and compliance with policy. If documentation is insufficient, reject the transaction and request that additional information be provided by the cardholder
  6. On a monthly basis, review and approve electronically submitted cardholder activity within the Procard Transaction Management System.  Ensure the cardholders are submitting their activity in a timely fashion that will allow all monthly activity to be reviewed and approved by the cardholder, coordinator, and business affairs officer by the 10th of the month after a month has ended.  (Note: cardholders, coordinators, and business affairs officers can review and approve activity throughout any given month to facilitate a more efficient month end review process.

     7.  Provide ongoing guidance for the use of the Procard to departmentally approved cardholders.

    8.  Ensure uploaded source documentation is sufficient for review by the  Procard Office, Fiscal Operations,          

        Sponsored Program Administration (SPA), and External/Internal Audit.

2.7.1a Appendix – Special Approval Required Purchases

*The University Procurement Card may be used for the following purchases given prior written approval from the Business Office and/or Procard Office.

 

Gift Certificates

Payments for employee recognition, gift certificates, etc.   There are certain exceptions for research subjects.  These exceptions must be fully documented and approved by the Procard Office in advance using the Gift Card Purchase Certification form.

Memberships

(Requires Dean/VP approve & must be paid via Direct Payment Request (DPR), if transaction amount is more than p-card transaction limit) *See APPM, Section 1.3.1*

Printing/Advertising

*Any item that contains the university logo or word mark
(for advertisements placed with vendors that only accept credit cards as the payment method, send a request to procard@wayne.edu requesting an exception for the employment advertisement to be placed with the vendor)  See APPM 3.0.18

 

2.7.1b Appendix – Specific Unauthorized Purchases

The university Procurement Card may not be used for any of the following purchases:

Agency "9" accounts

The agency fund index (beginning with a "9") is a custodial holding account for other organizations. Money in this index does not belong to the university therefore Procard purchases are not allowed on this account.

Bus Tickets

The purchase of bus tickets (or any transportation method) for student trips or bringing people to campus.

Capital Assets

Transactions in general, are limited to $2,000.  Exceptions are limited to high volume units.

Cash Advances

Procards may not be used to obtain ATM cash advances (blocked merchant).

Controlled Substances (Drugs)

Controlled Substances, which require approval of the Office of Environmental Health and Safety, must be placed on a Wayne Buy Requisition.

Consultants or Professional Services

Payments for services such as legal, accounting, computer programming or any similar types of services performed by independent entities or contractors.

Contracts

Any vendor contracts/agreements with terms and conditions and which by policy require approval by General Counsel and Purchasing (including maintenance, lease, rental agreement, etc.)

Flowers

The purchase of flowers, plants, gift baskets, or any type of personal tribute.  Such transactions are also generally prohibited by university policy regardless of payment method.  See APPM section 1.3.1 for exclusions.

Food/Meal

All food related items from any merchant.

Entertainment

Music Downloads (such As iTunes, etc.), movies, smart phone accessories, etc..

OneCard

To add funds to a university OneCard.

Personal Items

Any goods/services deemed not reasonable or required by the university.  Personal purchases, of any kind, may not be made with a Procard.  This includes personal entertainment items listed above.

Prior Invoices

The Procard is intended for payment of current purchases only (payment on the date of purchase) and may not be used to pay for "old" or previous invoices.

Radioactive Materials

Live radioactive or hazardous materials

Research Animals

Laboratory animals.

Security Systems

The acquisition of and/or installation of security systems.  These must be coordinated through the Wayne State University Public Safety.

Software

All software except for individual use, single purpose software.  In such cases, the card holder is responsible for complete review of the associated license agreement.

Travel & Entertainment

Any travel-related purchase or rental is prohibited (e.g., hotel, motel, airline, train, bus, taxi, limousine, or cruise fare; car or boat rental; gasoline; road tolls of any kind; travel agency purchase; parking lot fees). Travel-related merchants have been blocked from accepting Procards.  Individuals can use the university travel card or their other personal credit cards for travel related expenditures. Refer to APPM Section 7 for Travel.

Water

Drinking water or associated equipment (e.g.. Absopure)

Window Treatments

Window blinds, shades, curtains or draperies.

Wireless Devices or service plans

Pagers, cell phones, items that can be used as a cell phone (e.g.. Blackberry, iPhone, Trio, etc.); peripherals; or any type of related service (see APPM Section 1.3.1.4).

All purchases for the above, or for those whose value exceeds the Procard transaction limit of $2,000, should be processed in accordance with all of the established university policies and procedures, including but not limited to, Purchasing, Section 2, Expense Guidelines, Section 1.3.1, or any other applicable policy of the Administrative Policies and Procedures Manual (APPM).

In the event a user is uncertain about a particular purchase being permissible using the Procard, please contact the Procard Office at 577- 3708 before vendor contact.

2.7.2  Forms

Exhibit A:  New Cardholder Account Application

Exhibit B:  Card Holder Agreement and Authorization for Release of Credit Card Receipts

Dispute Form

NEW CARDHOLDER ACCOUNT APPLICATION

      

Cardholder Last Name, First Name _________________________________                                                 BANNER ID _______________

                                                                                                                                                                                         (9 digits required)

School/College/Division ____________________________________

 

Please state your official (payroll classification) University title (e.g., Manager I, Asst. Professor, Admin. Assist. II): ____________________________________________________________________________________

 

Are you a full time employee of Wayne State University:       ___ Yes    ___   No

 

Account or Grant Identification, Description, etc.  (Information will appear under name, on face of card):
 

____________________________________________________________________________________

 

                                               

Campus Address (Street Address)

 

Line 1: _________________________________________________________________________

                                               

Campus Address (Room and Building Number, if any)

 

Line 2: _________________________________________________________________________

 

                                               

City:     ___________________________  State:  MI  Zip: ________________ - ________________

 

 

E- Mail Address ________________________________________       Work Phone: _____________ Fax:______________                                 

 

Index   ___________________         FOAPAL String:        ____________       ___________        __________        ________                                                                                                                                                                                                                              Fund               Org.                Acct Code          Program    

                                                                                                                                (Note:  Activity & Location not applicable)

 

 

 Procurement Card Limits: ____________ PER transaction (up to $2,000.00) _____________ PER month (up to $20,000.00)

 

Note:  Card Holders will be given WayneBuy Punch-out order capability up to $2,000 and will be given Banner RAPP Inquiry Access.

I agree to be bound by the terms and conditions of the WSU Cardholder Agreement, available online at http://procurement.wayne.edu/procard/exb_agreement-writable.pdf

 

Cardholder

(Please Print)                   __________________________Signature_______________________________Date____________

 

 

 

 

Designated Coordinator __________________________Signature_______________________________Date____________

(Please Print)

 

 *** Principal Investigator     _________________________Signature_______________________________ Date____________***

      (Please Print)

(Signature REQUIRED FOR GRANT PROCUREMENT CARDS ONLY)

Business Manager

(Please Print)                      __________________________Signature_______________________________Date_____________

 

Department Chair/Director

(Please Print)                   __________________________Signature______________________________Date__________

 

(Dean /AVP/VP)

(Please Print)                   __________________________Signature______________________________Date__________

 

 

Forward to:              Procurement Card Office

                                Purchasing Department

                                4200 A/AB

Any questions, please call 313-577-3708

 

 

CARDHOLDER AGREEMENT

The Procurement Card

_____________________________________________________________________________

 

In return for the purchasing authority delegated to me and in consideration of my responsibility to properly steward public resources, I agree to undertake the following responsibilities:

 

Ø  To comply with this agreement and the Procurement Card Policy and Procedures provided and as such Policy and Procedures may be subsequently revised.  I acknowledge receipt of the Policy and Procedures and affirm that I have read and understand it.  I understand that the University is financially responsible for all Procurement Card purchases I make and I may only use the Procurement Card for approved University purchases.  I will provide all transaction documents to the designated coordinator in my department.

  • To protect and safeguard the procurement card in accordance with this Agreement, the Policy and Procedures, and any other applicable WSU policies.
  • To purchase ethically, fairly and without conflict of interest; seek the best value; and to support the development of minority and women-owned businesses in my use of the card.  I understand that my use of the Procurement Card will be audited.
  • When using Federal funds, to purchase only necessary items, to determine that the price is fair and reasonable by comparing alternative sources, and to avoid firms or individuals who respond that they are prohibited from contracting with the federal government.
  • To maintain or arrange to maintain appropriate records of the use of the Procurement Card, including receipts, and to provide those records and receipts to WSU immediately upon request.
  • Not to allow any other person to utilize the Procurement Card for any purpose. I understand that allowing another person to utilize the Procurement Card without authorization is a violation of this agreement, even if the Card is used in a way that would otherwise be permissible.  I also understand that if I allow an unauthorized person to use my Procurement Card, I shall be responsible for any improper use or misuse of the Card to the same extent as if I  had misused it.

I further understand that my improper use of this corporate liability card may result in disciplinary action up to and including employment termination against me should I fail to use this Procurement Card properly.  I authorize Wayne State University to deduct from any amounts payable to me, an amount equal to the total of the improper purchases.  I also agree to allow Wayne State University to collect any amount owed by me even if I am no longer employed by the University.  If Wayne State University initiates legal proceedings to recover amounts owed by me under the Agreement, I agree to pay all costs and legal fees incurred by the University in such proceedings.  I understand that the University may terminate my privilege to use the Procurement Card at any time for any reason.  I will return the Procurement Card to the University immediately upon request or termination of employment.

Authorization for Release of Credit Card Receipts

Authorization is hereby granted to representatives of Wayne State University to obtain copies of receipts or any factual data pertaining to my Wayne State University VISA credit card.

Authorization is granted to vendors to accept a photo-static reproduction of this authorization if necessary to obtain any information pertaining to transactions charged to this card.  Any reproduction of this credit card receipt authorization and release made by reliable means (for example, photocopy or facsimile) is considered an original.

This agreement applies to any and all Procurement Cards issued in my name.

CARDHOLDER:                                                                                 

I hereby acknowledge receipt of Procurement Card. 

 

_________________________________________

Signature

 

_________________________________________

Print Name

 

_________________________________________

Date

 

 

 

 

 

 

 

 

 

 

Forward to:            Procurement Card Office  / 4200 AAB