Procard Compliance Training AM 535 UTSA FY1011

Introductions √ Name √ Title √ Department √ UTSA length of service √ Your Procard Role √ Cardholder √ Reviewer √ Final Approver Cardholder Procard Reviewer Procard Final Approver

Procard/Travel Card Administration (PTCA) Office Administers UTSA’s Procurement Card (Procard) and Travel Card Program. Departments should contact this office for assistance with any of the following services: Application processing (Procard and Corporate Liability Individual Billed Account (CLIBA) cards only) Cardholder training Cardholder maintenance (Citibank and/or DEFINE related): Credit Limit Merchant Category Codes (MCC) Activation and deactivation Authorized to Inquire (ATI) access (CLIBA card only) Process requests to change the electronic review and approval process for Procard payments.

Procard/Travel Card Administration (PTCA) Office In addition, this office also performs the following functions: Reporting/Compliance Collections Reconciliations Procard audits Generate Procard payments on behalf of departments. Anne Jackson Procard Specialist Phone: Lisa Bixenman Accountant II Phone: PTCA Staff

Purpose of Procard Compliance Training Acquaint the new Procard Cardholder regarding Procard Guidelines Responsibilities of Department Restricted and Dollar Limited Purchases Procard Records Maintenance Reconciliation Procard Audit Procedures

UTSA Procard Program Allows cardholders to make purchases less than $5,000 on behalf of the University. Purchases must be made in accordance with UTSA Policies and Procedures, State of Texas Regulations, and Federal Guidelines and Laws.

Benefits of Using the Procard Simple method of purchasing goods and services up to $5,000. Spending limits are designated by each department Single Purchase Limit may never exceed $5, to include recurring charges. Charges may never be split to circumvent the $5, limit. Monthly Purchase Limit defaults at $10, Fast alternative for processing low dollar value purchases directly from the vendor. Reduces processing costs. Section 4 – Procard Polices and Procedures

UTSA Purchasing Polices and Procedures Follow the University and State Procurement Polices when making purchases. (DE678) Visit the UTSA Purchasing website for Policies and Procedures.

Purchasing from HUBs The University of Texas Historically Underutilized Business (HUB) initiative is to encourage and assist participation by such businesses in the contracting and purchasing process. It is UTSA's policy to be committed to maximizing when available, the number and value of purchases with HUBs. UTSA is an equal opportunity, affirmative- action institution, and takes pride in giving women- and minority-owned businesses a chance to provide their goods and services at a fair price. Procard holders are encouraged to do the same. Learn more about purchasing from a HUB Purchasing From HUB Vendors, AM 554 Irene Maldonado HUB Program Manager Ext

Roles and Responsibilities Overview Card Issuer (Bank – Citibank) Provides electronic transaction authorizations, and bills the University for all purchases made on the Procard. Department Head or DeanApproves the designated employee’s request for a Procard, assigns Dept Reviewer and Approver, delegates default account. Ensures Procard regulations are followed and sufficient funds are available in the specified account designated for each Procard. Department Reviewer*/ Final Approver Reviews and approves cardholder purchases, transaction logs, and itemized receipts. Monitors transactions to ensure legitimate business expenses, receipt of purchases and 100% reconciliation. Procard Administrator (Anne Jackson, Procard Specialist) Coordinates the Procard activities, training and conducts audits. Liaison between cardholders and bank. Disbursement AdministratorCentral accounts payable administrator who is responsible for receiving, reviewing and paying the Bank billing statement. Cardholder*Employee approved by Department Head to use the Procard to execute purchase transactions on behalf of the University, reconcile monthly transactions to the Bank billing statements, and maintain documentation to support each transaction. Responsible and accountable for the Procard embossed with their name. VendorMerchant from whom a Cardholder is making a purchase. *Must complete Procard Compliance Training prior to assuming duties and receiving Procard.

CardholderResponsibility Know the Procard Guidelines Safeguard the UTSA Procard at all times Procard may not be shared. Make only purchases that have department approval Document receipt of goods or services Provide Complete Department Name and Room Location for accurate delivery Retain original and intact itemized receipts Ensure tax is not charged to purchase Never split a purchase to circumvent the $5, limit Complete monthly Transaction Logs Forward Transaction Log and itemized receipts to Approving Officials for review and signatures Maintain proper procard reconciliation for audit Comply with UTSA Records Retention Schedule (five years plus current fiscal year) Section 6.1 – Procard Policies and Procedures

CardholderResponsibility Continued Verifies and maintains documentation that the vendor is in good standing with Texas Comptroller of Public Accounts for purchases $500 or more Verifies that all items on receipt are accurate and charges are correct Verifies that all transactions listed on the monthly statement are valid and the amount is correct. Resolves all disputes with vendor Notifies Bank in event of unresolved disputes

Reviewer Responsibility Ensure Reconciliation of monthly Procard Transaction Logs to: Bank Billing Statements and/or VP7s Itemized Sales Receipts Business Expense Forms (if applicable – required for SE purchases when making purchases of hospitality and/or entertainment) Ensure Compliance to University Policies Procard Guidelines Purchasing Policies and Procedures Safeguard and protect University assets Understand University and Procard Guidelines and Hospitality Guidelines Section 6.2 – Procard Policies and Procedures

Final Approver Responsibility Designated as an Electronic Signer in DEFINE for the procard holder default UTSA account. Serves in a higher level position over the procard holder and reviewer Ensures all purchases made by procard holder have received prior approval Ensures all purchases made by the procard holder are necessary and reasonable for the active conduct of university and designated department business Ensures the procard holder and reviewer are knowledgeable and in compliance with all UTSA Procard Polices and Procedures and Business Related Hospitality and Entertainment Expense Guidelines Reviews and approves procard holder VP7’s, reviews and signs monthly Transaction Logs, and applicable Business Expense Forms in a timely manner. Section 6.2 – Procard Policies and Procedures

VP7 Final Approval Any VP7 Documents not approved by the deadline are reported as non-compliance to the PTCA Office and will be reported to Internal Audit and the applicable Vice President’s Office. Possible loss of Procard privileges could occur for non- compliance.

Types of Procards Regular Procard Follows Procurement rules of Small Dollar Purchases (PB0) Limited by departmental approved spending threshold (max $5,000.00) Some Commodity and Business restrictions Some Commodity dollar limits Special Event Procard* Same as Regular Procard Some restricted commodities lifted to allow purchases of hospitality Issued to a small number of authorized staff Final Approval at the discretion of the Director of Financial Services and Bursar Cardholder must be Familiar with Hospitality and Entertainment Guidelines** guidelines/2.6.4.html guidelines/2.6.4.html Section 7 – Procard Policies and Procedures *Hospitality Related Expenses **Hospitality and Entertainment Guidelines AM 553

Restricted Businesses Gasoline Stations Legal Services Taxi and Travel Related Car Agencies Hotel /Motels ATMs Entertainment Providers Travel Agencies Liquor Stores

Restricted Commodities $500 SE Computer related expenses over $500 Camera exceeding $500 Gifts Flowers Catering Restaurants/ Food/Alcohol

Purchases Requiring Prior Approval PurchaseExampleDepartmentPoint of Contact for Purchase Information Contact Phone Number Potentially Hazardous Chemicals FertilizerEnvironment Health, Safety and Risk Management Brian Moroney Wendy McCoy Out of the Country Purchases Canada, England, Mexico, South Africa, Spain, Virgin Islands, etc. Research, Integrity and Compliance Office Rachel Graves4601 PrepaymentsAdvance payment for space rentals ControllerDiana Macias- Ollervidez for a List of Procard Restrictions

Procard Transaction Log Cardholders should maintain a current log for all purchases with itemized receipts attached A separate log should be maintained for each Procard cycle (monthly, 4 th of Month to 3 rd of Next Month) The Cardholder, Reviewer, and Final Approver must review, sign and date each Transaction Log. Section 8 – Procard Policies and Procedures

Procard Transaction Log PROCARD TRANSACTION LOG University Department Name:For the Month of: Cardholder Name:Account #: DateVendor Name Is Vendor in good standing w/State? Y / N (include date) AmountVP 7 #Account #Description of Purchase Items Rec'd Y / N HUB Vendor Y / N Business Expense Form Y / N Indicate if Blanket BEF Credits / Rebates Y / N Total:$0.00 ** (Required to verify all Texas Vendor's status on orders exceeding $ Print status page and maintain with corresponding Transaction Log. You are verifying ig your vendor is in good status with the State of Texas *** It is the responsibility of the individual Cardholder, Reviewer/Approver, and Department Head to ensure that all UTSA Guidelines are followed **** Please print name and sign below stating you have verified purchases Cardholder Name and Signature: - ______________________________________________Date: ______________________ Reviewer’s Name and Signature: - ______________________________________________Date: ______________________ Final Approver Department Head Signature: - _____________________________________Date: ______________________ Revised: November 2008 Best Practice: Complete each line item across page

Procard Transaction Log Cardholder will maintain a current/monthly Transaction Log for all purchases Original Intact receipt will support each purchase Date Vendor Amount Itemized description of item(s) purchased Lost receipts Vendor can provide a copy DECLARATION OF MISSING EVIDENCE MEMORANDUM must be completed, if receipt cannot be provided by vendor. Repeated loss of receipts may be grounds for canceling Procard or other disciplinary action. Maintain Procard Transaction Log and supporting documents for 5 years + current year. Section 10 – Procard Policies and Procedures

Transaction Reconciliation Review and maintain bank statements and itemized intact receipts Call vendor immediately in event of a billing error or question Follow-up to ensure billing corrections are made as necessary Ensure credits are issued and documented – do not accept cash in lieu of credit Ensure tax has not been charged Section 10.7 – Procard Policies and Procedures

PROCARD Monthly Tabs  Transaction Log (approved and signed) for each month  VP7 ID Number on each transaction log  Itemized Intact receipts for every purchase  Business Expense Form – SE Procard Hospitality Purchases  In accordance with Hospitality Guidelines  Vendor in Good Standing for purchases over $500  Printed copy must be dated prior to purchase date  Maintain Tax Exempt Status  100% Reconciliation  Procard Transaction Logs  Bank Statements  Printed VP7 DEFINE Documents  Itemized Receipts, Packing Slips, etc. Transaction Reconciliation Notebook Best Practice Create a Notebook

Tracking Procard Purchases Online Go to: s/commercial_cards/index.jsp s/commercial_cards/index.jsp Click on CitiManager First Time User Self Registration for Cardholders User Name Your credit card numbers, without dashes Follow online instructions and set your own Password

First Time User ONLY

Complete fields with an asterisk Your Campus Address Do Not Use Your Personal Address Bldg / Rm Number

Preparing for an Audit A meeting request will be ed at least one week prior to audit request date audit months for review will be provided New cardholders will be audited Within 24 months of receiving Procard Thereafter, Regular and Special Event cardholders will be audited according to risk or as needed and within 2 years Procard Check List Section 10.8 – Procard Policies and Procedures

Role of the Procard Auditor Reviews transactions towards ensuring purchases are related to University business Reviews receipts for itemization and legibility Confirm State of Texas tax exempt status is being maintained Verifies timely reconciliation and approvals of the cardholder account Reviews Business Expense Forms for SE procards Food, beverages, decorations, entertainment related expenses

Importance of Organization During an audit, records will be reviewed for the following: Proper and Original Signatures VP7 ID Numbers Vendor in Good Standing documentation made prior to purchases in excess of $ Itemized Intact Receipts – do not tape over ink Credits documented as such Tax Returned Merchandise Returns Business Expense Forms – SE Card Bank Statements Note: This list is not all inclusive For a List of DEFINE Object Codes use Command: GG8 or GG9

Following a Procard Audit Findings will result in the following: Audit Recommendation Memo  List of recommendations  Deadline for meeting recommendations  Recommendation Memo to be signed by the Cardholder, Reviewer, and Final Approver All recommendations (corrections) with signed Agreement Memo must be submitted to the Procard Compliance Office by established deadline.

Helpful Information Procard Office Ext Ext for application or training questions Website: Procard FormsForms Procard GuidelinesGuidelines Procard Restrictions ListRestrictions for Hospitality Guidelines and Business Expense Form Disbursements Ext Citibank Phone number: [24 hours a day / 7 days a week] Lost or Stolen Procard Contact the bank immediately at Notify the Procard Specialist at (during normal business hours) or

Test Your Procard Knowledge What do I remember?

1. What is the Procard monthly cycle dates? 2. When should you conduct a vendor check? 3. What is the MasterCard Single Purchase Limit? 4. When is it acceptable to not approve a VP7?

1. What is the Procard monthly cycle dates? 4 th of month to 3 rd of the following month 2. When should you conduct a vendor check? Prior to purchases over $ What is the MasterCard Single Purchase Limit? MasterCard Single Purchase Limit is $5, When is it acceptable to not approve a VP7? NEVER. VP7 documents should be approved by the DEFINE generated due date!

Questions PROCARD AUDIT PROCARD PURCHASE Procard Holder