IIT PNC VISA Procurement Card

Card is issued to facilitate the payment process for IIT Use to pay for IIT Purchases Only No Personal Purchases are Allowed All Purchases are the liability of IIT and not the cardholder All Purchases must conform to IIT’s Policies and Procedures

Cards are tied directly to funding FOPs One card can be tied to multiple operating funds Cards tied to sponsored funds are limited to the FOP for that fund

Who can have a card? Cards are only issued to full-time IIT employees and select contractors if approved by the CFO Cards are only issued to individuals, not departments Cards are not issued to students

Card Management Cards are managed by the Cardholder Cardholders are required to utilize the online management system: Intellilink All cardholders are required to complete Intellilink training

PNC VISA Intellilink Training Using Internet Explorer access: the PNC Training Site Self-register to use this site Choose “Other C& IB Training” Choose “Visa Online”

PNC Training Sign On Site

Complete Intellilink Course “Launch” and complete this training

Focus on Specific Topics Use the “Demos” page to select and review individual segments of the overall training presentation.

Requirements for every transaction Submit dispute form for any improper charges Attach Receipts Document Business Purpose Affidavit of missing receipt Review of FOP charged

Best Practices Access Intellilink regularly and upload receipts as you make transactions Document “Business Purpose” when you upload receipts Submit for approval as you complete recording for each transaction

Business Purpose Business purpose is a transaction that is both “Necessary and Reasonable” in the eyes of the IRS You must document the business purpose to establish that it is not a personal purchase and therefore not compensation that would be taxable to you, personally.

Clear and defensible statements of business purpose Think of 5 Ws: Who; What; When; Where; Why Instead of “Bought Lunch” describe: Bought lunch (What) for visiting students (Who) participating on Mies Campus (Where) math competition (Why) on November 8th (When).

Approval Process Once statements have been reviewed, receipts attached, business purpose documented, and budget account verified; Cardholder approves each transaction for review by their Direct Supervisor.

Difference between Approval Level and Manager Level The workflow set up for each Cardholder determines how transactions are routed for review A Cardholder is automatically given the Approval 1 level so they can approve their completion of documentation for their own transactions The Cardholder’s immediate supervisor is designated as Manager 1 and given Approval level 2

Approval Levels Are assigned by the Administrator All Cardholders have approval rights as Approver 1 which are required for them to submit their transactions to the next level approver for review. Approver level 2 is assigned to the Cardholder’s direct supervisor who is also designated Manager 1 Approver level 2 will typically be the cardholder’s department Budget Manager who is designated Manager 2 Additional levels of approval can be authorized, but the audited approval process will review approvals at the Manager 2 level only

Roles – Administrators Initiate card accounts Set up approval work flows Make requested and approved changes to accounts Assign Managers and approval levels Audit accounts

Roles- Cardholders and/or Account holders Both have an account One must have an account to access the online management system (Intellilink) Can assign a Delegate to complete certain administrative tasks

Roles-Delegate Must have an account to access Intellilink Is assigned administrative tasks Transcribing business purpose prepared by Cardholder Attaching receipt images Reviewing FOAP charged

Delegate – Limitations The responsibility for accuracy of the information entered by the Delegate always stays with the Cardholder. The Delegate can only perform administrative functions The Delegate cannot approve any transaction

Roles-Manager The Manager must have an account to access Intellilink Has approval authority at the level assigned by the Administrator Regularly signs into Intellilink Views transactions awaiting approval in a timely basis Determines if receipts are attached and business purpose is adequately described

Intellilink – Online Management System This is the only management system for the VISA card Access requires submission of an application specific to the Cardholder

Reconciliation of Transactions Review transaction accuracy Attach receipts Document business purpose Submit transaction for Manager review and approval Complete all reconciliations within the required time period

Approval Hierarchy Ultimately, the Cardholder’s immediate supervisor is responsible for reviewing the transactions a Cardholder has made.

Approval Rights Only the Administrator can assign an approval level

Approval Hierarchy Framework-Faculty Faculty to Chair Chair to Dean Dean to Provost

Approval Hierarchy Framework – Staff Staff to Immediate Supervisor Department Head to Vice President Vice President to CFO CFO to President

Responsibilities - Administrators Process applications for accounts Facilitate credit limit adjustments Provide training support Set up work flows Audit accounts

Responsibilities – Cardholder slide 1 Safeguard the use of the card Immediately report loss of card or compromise of card information to the issuing bank Immediately respond to bank initiated fraud inquiries Access Intellilink to document each purchase transaction

Responsibilities – Cardholder slide 2 Attach a scanned receipt for every transaction Document the business purpose of every transaction When necessary, assign delegates to comply with card management timelines Dispute inaccurate transactions by using the appropriate bank required form When card is linked to multiple FOPs assign transactions to the correct FOP by the 25th of the month after the completed billing cycle Complete reconciliation of all transactions and submit for Manager approval within one month of the end of the billing cycle.

Management of receipts A receipt image is required for every transaction If no receipt is available, an Affidavit of Missing Receipt is required to be completed, scanned, and uploaded for the respective transaction Multiple receipts supporting several transactions can be attached to one page and indexed to each of the transactions

Retention of Receipts Unless required by the terms of a funding grant, once linked to a transaction, receipts can be discarded

Documenting Business Purpose A business purpose must be documented to support each transaction It must clearly describe the transaction as both necessary and reasonable The documented business purpose must address the: “who; what; where; when; and why” of the transaction.

Examples of Documented Business Purpose #1 UNACCEPTABLE -“Sandwiches for lunch” ACCEPTABLE- “Lunch (what) for the visiting high school students(who) attending career day (why) held Nov. 4th (when) on the Mies Campus (where)”

Examples of Documented Business Purpose #2 UNACCEPTABLE -“office supplies” ACCEPTABLE- “Monthly order (when) of office supplies (what) to replenish the Controller’s Office supply cabinet (where) for general department use (who)

Why is a complete business purpose important? If a transaction isn’t documented with a clear business purpose that clearly identifies it as a purchase that benefits IIT, it can be interpreted as a personal purchase, unallowable under IIT policy and classified as taxable compensation for the Cardholder.

Managers-Responsibilities Managers must work with Cardholders to assure compliance Managers that do not approve Cardholder accounts on time expose the cardholder to risk of suspension of account Audit findings of missing receipts and inadequate statements of business purpose on transactions that have been approved by Managers may result in the suspension of the Manager’s account access as well as the Cardholder’s account.

Managers- Unable to Perform Duties Managers who are temporarily unable to perform their Approver duties must contact the Administrator to arrange a temporary Approver to perform said duties. A temporary Approver must be at the same or higher level than the delegating Manager Temporary approvers must either have an existing account or must apply for a new account

Consequences for Non-Compliance All transactions must be reconciled and submitted for Manager review and approval with in one month of the end of the billing cycle The Administrator will run monthly reports to determine timely completion of reconciliations Accounts not in compliance with reconciliation requirement will be suspended Repeated evidence of missing receipts will lead to suspension of the card Repeated suspensions or delay of submission to Managers are also performance matters requiring the involvement of the Cardholder’s direct supervisor