PTCA Credit Card Program Overview Procard/Travel Card Administration FAR Meeting January 25,2017 Lisa Bixenman, Credit Card Program Manager Office of Financial Affairs (http://www.utsa.edu/financialaffairs/)

PTCA Responsibilities PTCA administers UTSA's Procurement Card (Procard) and Travel Card Program by providing the following services: Application processing, training, & card maintenance Reporting/Compliance, Collections, Reconciliations Process requests to change the electronic review and approval process for Procard payments. Generate Procard payments on behalf of departments. Office of Financial Affairs Procard/Travel Card Administration

Department Manager Responsibilities Validate appropriate use for official UTSA business Assure compliance with guidelines when authorizing payments On-time payment processing Sufficient budgets Correct account codes Appropriate funding sources Sufficient documentation to support all purchases & use of restricted funding sources Office of Financial Affairs Procard/Travel Card Administration

Cards Issued As of 1/2/2017, there are 1,499 cards that are being used by faculty and staff for procurement, travel, and business related hospitality. Office of Financial Affairs Procard/Travel Card Administration

Procard Audits Office of Financial Affairs Procard/Travel Card Administration

Procard Audits With the assistance and recommendations of Audit, Compliance, and Risk Services: A scoring system was implemented based on a 100 point scale with point reductions that vary with the frequency and type of exception. Progressive disciplinary measures/consequences were also established related to non-compliance. Office of Financial Affairs Procard/Travel Card Administration

Procard Audits Depending on the nature, severity and frequency of non-compliance, consequences may include but not limited to the following in accordance with the FMOG: Notification to management, Revocation of Procard privileges, Termination of employment, and In the event of fraud, possible criminal prosecution. Office of Financial Affairs Procard/Travel Card Administration

Procard Audits – Risk Assessment The scoring system determines the department’s compliance and audit results as either (1) low risk, (2) medium risk, or (3) high risk, dependent upon the final score in the audit report. The progressive discipline levels (1-4) and the risk ranking determine the audit follow-up responsibilities and/or consequences to the department. Office of Financial Affairs Procard/Travel Card Administration

Procard Audit Results 74 audits completed in 2016 : 61% were low risk (range 86-100) 38% of the 74 - scored 100% 16% were moderate risk (range 76-85) 23% were high risk (range 75 and below) Office of Financial Affairs Procard/Travel Card Administration

Top 5 Audit Exceptions Failure to check vendor hold status for purchases over $500. Missing or unsigned BEF as required for Business Related Hospitality and Entertainment Expenditures Incomplete or unsigned transaction logs Restricted businesses/commodities Late transaction approvals Office of Financial Affairs Procard/Travel Card Administration

Payment Processing Challenges/Reminders Office of Financial Affairs Procard/Travel Card Administration

Late Payment Approvals 26% or 112 cardholders have had late payment approvals since September 2016. This is ¼ of our Procard holders. Late approvals result in additional work for front offices and PTCA Office of Financial Affairs Procard/Travel Card Administration

Budget Errors PTCA’s expectation is the department manager or designee has verified available funds in the correct budgetary account. As a reminder: M&O expenses are budgeted in account A4000 for cost centers M&O expenses are budgeted in several GXXXX accounts for projects. Contact your RSC for a listing of the budgetary accounts and allowable account codes. Office of Financial Affairs Procard/Travel Card Administration

Budget Errors Incorrect Chartfields To avoid budget errors always use the SpeedChart lookup as it will populate the chartfield string with the current Chartfield combination. If the cost center/project is not in the SpeedChart lookup – send an email to PTCA to have it added. This is currently not automated and is a manual process for PTCA Allow time for PTCA to add the SpeedChart before finalizing your review PTCA will notify you, once the SpeedChart has been added Office of Financial Affairs Procard/Travel Card Administration

Incorrect Account Codes Account codes for Procard purchases should always be type “E” and begin with 6XXXX. The current Procard process does not auto generate a message when an incorrect account code is used. Currently PTCA has to manually send these notices, during their review. A list of allowable account codes is available at: http://www.utsa.edu/financialaffairs/training.html PTCA section – Common Account Codes for Procard Purchases Office of Financial Affairs Procard/Travel Card Administration

Designated Tuition Business Related Hospitality & Entertainment Expenditures cannot be paid from fund 3105 (designated tuition). The current Procard process does not auto generate a message when an incorrect fund is used PTCA has to manually send these notices. See Allowable Funding Sources for Hospitality and Entertainment Expenditures. Office of Financial Affairs Procard/Travel Card Administration

What’s Ahead? Office of Financial Affairs Procard/Travel Card Administration

What’s Ahead? The Texas Comptroller of Public Accounts (CPA) has issued a Request for Proposal (RFP) for commercial charge card services for the procurement purchases program and travel program. Impact: This may result in a change of bank and card product from MasterCard to Visa. Review of the Procard/Travel Card Programs and FMOGs Office of Financial Affairs Procard/Travel Card Administration

Office of Financial Affairs QUESTIONS Office of Financial Affairs Procard/Travel Card Administration

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