1. PURCHASING/ PROCUREMENT CARD Presenter: Kathleen Maertzig- Sr. Systems Administrator Date: October 28, 2003 PA-BUG Conference 2003

2. DREXEL UNIVERSITY & DREXEL UNIVERSITY COLLEGE OF MEDICINE Statistics –5,000 Employees –550 Million $ Budgets –850 Active Research Projects –Real Estate Management –Physician Practices

3. Stats (Continued) Drexel University – 350 cardholders $927,000.00/monthly Drexel University College of Medicine - 145 Cardholders $403,000.00/monthly

4. VISA JP Morgan Chase www.PaymentNet.com

5. Benefits Reduces paperwork: requisitions, check requests, and purchase orders Reduces petty cash funds, and cash exposure (especially teams travel) Personal funds are no longer needed for purchases Reduces processing for cardholder, Purchasing and Accounts Payable Consolidated invoicing for a single monthly payment saves time, stationery, checks, postage and filing

6. DISADVANTAGES No way to check Insufficient Funding No way to encumber funds No way to track commodity volumes Delay in items being booked to the budget

7. How Does DU Purchasing Card Work? Much like a personal credit card University liability Print statement of account and verify Data is imported into Banner Finance on a monthly basis as a journal voucher

8. Good Uses for Purchasing Card Essentially, anything you currently use small value purchase orders, check requests, petty cash and in some cases, regular purchase orders Dues, memberships, licenses, application fees Conference and seminar registration fees Stamps, postage Books, publications, periodicals, subscriptions, reprints, newsletters, videos and audio recordings

9. Good Uses – continued Recurring payables (cell phones, internet access, water, etc.) Advertisements Interlibrary loans to external libraries Photo, art, shop and lab supplies Miscellaneous supplies - low dollar value Computer supplies and software Office Supplies Airline, hotel and rental car reservations for University related business travel

10. Restrictions Personal charges, even with the intent of reimbursing the University Any transaction that exceeds your available budget. Travelers Checks or cash withdrawals from ATM machines. On Campus purchases of any sort or for services that can be performed by another on- campus department

11. Restrictions – cont. Any purchase that would require Facilities Services to deliver, install or engineer the space in which the item is going Purchases presenting significant potential risk or exposure to liability for the University Any contract, agreement or arrangements whereby the University is required to sign any type of contract or agreement Any item that exceeds your transaction limit (generally $2,000.00) or would cause your monthly limit to be exceeded (generally $7,500.00). Alcoholic beverages (very limited exceptions)

12. Safeguards Cardholders sign agreement Dean and/or Provost approves cardholder application Purchases are tracked to cardholder Statement of Account reviewed for appropriateness monthly Purchasing, Comptrollers Office, Internal Audit have access to all transactions

13. Card Security Use of card by anyone other than the cardholder is prohibited Secure the card and account number at all times Cardholders are reminded that they are responsible for all charges to their cards.

14. What if Your Card is Lost or Stolen? Immediately contact JP Morgan Chase at 1-800-270-7760 Contact the Purchasing Card Administrator Contact the Police Dispute the item online in PaymentNet

15. Code of Ethics Give vendors equal consideration Do not auction prices Do not accept gifts or gratuities Conflict of Interest Statement is signed by each cardholder Avoid appearance of conflict of interest

16. Prices Use Preferred Vendors to receive negotiated benefits Vendors must not charge higher prices for credit card purchases Indicate this is a Drexel University Purchase Indicate purchases are exempt from state sales tax

17. Accounting and Record Keeping www.paymentnet.com Reallocate charges by the 26 th of the month Enter description of purpose or intent Print statement of account and attach receipts Approver signs statement with receipts attached Send original statement without receipts to purchasing Travel – If as part of travel there were out of pocket expenses; travel expense report required; otherwise, none needed.

18. Central Location for Filing Cardholder is responsible for gathering receipts and attaching them to statement each month Approver must review appropriateness and sign Cardholder must file in a central location Reallocation can be done by cardholder or approver

19. Budget Charges Card is assigned the Departmental account cost center (fund/org), as the default; charges will be posted there if you do not reassign them via PaymentNet TM Software. Accounting has been notified NOT to reallocate any purchasing related charges. Charges are uploaded into Banner Finance monthly as a journal voucher

20. Disputed Transactions Resolve any discrepancies directly with the vendor and request credits or additional charges generated for the next billing cycle If unable to resolve, the cardholder must fully document the situation using the PaymentNet TM On-Line Dispute Process Claims must be filed within 60 days of the original purchase, acknowledged by JPMorgan Chase within 30 days, and resolved within 90 days.