Procurement Card Training Citibank Procurement Cards Fiscal Year

Welcome 1 st Time log in instructions Copy of this presentation Procedure Manual Cardholder Allocation Guide Supplemental information Overview of the procurement card program General Information User Procedures

Procurement Card Overview Provides University employees with a more efficient way to purchase day-to-day supplies The use of the procurement card is not intended to bypass appropriate purchasing procedures set forth by the State of Texas The program is administered through the Purchasing department

Program Contacts Mickie Scantling Procurement Card Administrator Bryan Glenn Director of Purchasing

Important Points The procurement card is only issued to the cardholder. No one else is allowed to use the card. The cardholder is responsible for all transactions made with his or her procurement card. Cardholders are responsible for allocating charges on a monthly basis for the previous months transactions. Submitting supporting documentation to the Purchasing office by the fourth working business day after the close of the billing cycle. The billing cycle is from the 4 th of month to the 3 rd of the following month (Except August & September)

Cardholder Responsibilities Attend Training Card Security Making Appropriate Purchases Submitting Logs Corrections

Level Manager Responsibilities Approving Transactions Corrections

Purchasing Department Responsibilities Provide Training Audit Logs Assist Cardholders Billing Transactions

Allowable Purchases Office, lab, or classroom supplies Books Janitorial Supplies Gift Cards – Random Drawings & Contests only~ Flowers* Meals/Food for business- related meetings* *Only on local accounts ~never as a gift Medical Supplies Postage & Shipping Promotional Items Registration Fees Subscriptions Tools/Hardware Videos Copier Rental

Unallowable Purchases Memberships* Cash Refunds Cash Advances Alcoholic Beverages Gasoline Insurance Travel expenses * only when included with registration Computer hardware or software Capitalized or controlled equipment (televisions, computers, etc.) Services Personal Purchases

Fixed Assets Computer/Printer/Scanner/Computer Software ▫ Including – ALL Tablet Computers, Laptops & Desktops ▫ These items should NEVER be purchased on the procard. Only specific IT Services Personnel have approval to do so Equipment/Furniture with life more than one year ▫ 7334 from $0.00 to $ expensed ▫ Exception to this is Controlled & Capital equipment Do not buy on the procard: ▫ Controlled Assets – Cameras, Projectors, Camcorders, Televisions, VCR’s, Stereo Systems and the afore mentioned Computers, Printers, Scanners &Computer Software ▫ Capital Assets – any equipment or furniture over $5,000.00

Sales Taxes All purchases made with the procurement card are exempt from sales tax Cardholders will be held responsible for refunding or reimbursing any sales taxes paid on the procurement card The only exception to this rule is for business meals A business meal is defined as: “a meal consisting of both University and non-University employees with a specific University business function”

Split Transaction Purchase An instance where a cardholder makes a purchase larger than the delegated limit, and the vendor runs the credit card multiple times in order to bypass the cardholder’s single purchase limit. This is a violation of the state’s purchasing guidelines and should not be practiced.

Account Selection The cardholder will use Citibank’s website on a monthly basis to allocate each transaction to an account within their department Accounts are sorted by Division and Department There are restrictions on what items may be paid using a state-funded account (begins with 10) ▫ Items such as food, decorations, gifts, and flowers may not be purchased using state funds

Account Structure XX-XXXXXXX-XX-XXXX

Funding Sources 10 – State Appropriations 11 – Designated Funds 12 – Auxiliary Funds 15 – M&O Accounts 19 – Restricted Funds (Grants) 40 – Renewals & Replacements 50 /51 – Foundation 52 - Alumni

Department & Object Department ▫ Unique 7-digit number for the department Object ▫ Will either be 62 or 92 ▫ 62 – Budgeted funds for fiscal year ▫ 92 – Term of grant or until money is expended

Object Codes Four digit code An object code is a basic description of the purchase that was made The cardholder will select an object code that is an appropriate description of the item(s) purchased Any purchases made with state funding (10 account) cannot have an object code in the 6000 level, such as 6012 or 6280

Receipt of Goods & Services When allocating, the cardholder must indicate if the goods and services purchased have been received There is a drop-down menu beside each transaction for the cardholder to verify if the goods were or were not received If the goods were not received, the cardholder should select “no” and complete an exception form as backup documentation The cardholder must also notify Purchasing once the goods have been received

Supporting Documentation Detailed expense description Include a receipt or missing receipt form Meal purchases must include a list of who ate the meal/food purchased, as well as the business purpose of the meal Gift card purchases must include a gift card purchase form Receipts should be taped down neatly to computer paper one per page - only on one side of paper Please do not tape over the totals on the receipts because the tape causes the numbers to fade

HUB Vendors – Historically Underutilized Business Please use HUB Vendors when possible on making purchases with your procard HUB vendors are at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman and/or Service Disabled Veteran WT is graded by the number of HUB Vendors we use

Audit Process Envelope is filled out completely Reporting period is correct All backup documentation is included Transactions were appropriate for University business The vendor was appropriate Cardholder used account numbers from his/her department Object codes were suitable for purchase No split transaction purchases were made No sales taxes charged

Corrections The auditor will contact the cardholder via with any corrections that need to be made The cardholder will have one week to make necessary corrections If issues have not been corrected after a week, the auditor will contact the cardholder and department head with instructions to make corrections

Suspensions The Purchasing Office reserves the right to suspend credit card privileges to cardholders due to non- compliance with the procurement card procedures and guidelines To reinstate privileges, cardholders will be required to write a memo to Purchasing stating they will operate within proper guidelines and procedures in the future The employee will also be required to attend procurement card training before privileges are restored Cards can be permanently suspended

Best Practices 5 W’s – Who What When Where Why Put all monthly procard transaction receipts in procard log envelope after each purchase Allocate weekly, if time allows Do not make procard purchases with companies that are on “hold” with the State of Texas Call Mickie in purchasing if you have questions regarding a purchase x2099

Purchasing Website Training Materials, Forms, and Allocation due dates are located on the purchasing website: and-inventories-procurement-card.aspx You can also access the link to Citibank Allocation website from the procurement card webpage.