1. Welcome

2. Purchasing Cardholder Orientation Marilyn Powell Purchasing Card Coordinator

3. Manual of Business Procedures http://ctlr.msu.edu/COMBP/Default.aspx Section 271 – Purchasing Card The MSU Manual of Business Procedures is coordinated by the Office of the Controller to provide information regarding proper University business procedures and fiscal oversight. Have you read it?

4. Purchasing Card Website http://usd.msu.edu/purchasing/purchasing- card/pcard-users-manual.html http://usd.msu.edu/purchasing/purchasing- card/pcard-users-manual.html Pcard User’s Manual & Exhibits Applying for a Pcard Updating Cardholder Information (PCMD) Extra Tips Canceling a Pcard Orientation Schedule

5. NAEP Code of Ethics National Association of Educational Procurement Code of Ethics Purchasing professionals must possess strong ethics to protect their own and their institution’s reputation for fair dealing. To strengthen ethical awareness and to provide guidelines for its members, NAEP has long promoted a code of ethicsNAEP Bit.ly/naepcode

6. NEVER SHARE YOUR CARD

7. NO PERSONAL PURCHASES

8. Statistics 3400 Cards at MSU 16,000 transactions per month $43,000,000 per year

9. Limits Single Purchase Limit = $2500 Cycle Spending Limit = set by department Bank Billing Cycle = 25 th -24 th – Starts on the 25 th of the current month and ends on the 24 th of the next month

10. Changes to Your Card Pcard Maintenance Document (PCMD) PCMD is used to either request a new card or make a change to an existing card Can be initiated by anyone who is a financial document preparer in KFS Routes to the cardholder if he/she was not the initiator Always routes to the FO

11. Changes to Your Card Types of Changes include: – Cycle Spending limit (> $25K needs DDC approval) – Last Name – Address – Phone number – Account Number – Email Address – Card Cancellation/Suspension

12. PCMD – Changes

13. PCMD - Changes

20. Pcard Transaction Log – Exhibit C

21. Restrictions

22. Ordering Tips Is the item available through Stores stock or Open Orders? Food – MBP Sec. 45 – no restaurants/caterers Internet/Fax/Email orders – use caution Conferences – registration only – no meals/lodging

23. Receipts Must be ITEMIZED Must be legible Receipts w/business purpose noted are to be scanned and attached to the edoc in KFS Verify that attachments are readable

24. Trouble Shooting Returns, credits, and follow-ups are the responsibility of the cardholder Contact merchant for resolution Make note on log sheet Return authorization number may be required Watch to make sure a credit or replacement is received

25. Why Your Charge Was Denied 1.Reached your cycle spending limit 2.Transaction is over $2500 3.Merchant uses wrong expiration date Contact bank customer service using the number on the back of your card if you need further assistance

26. Reconciliation in EBS Check with your business office to determine your unit’s documented process (electronic vs paper) If using paper reconciliation, where are they filed? Pcard edocs (PCDO) appear in your KFS Action List – so it is important to monitor your Action List regularly Have all receipts available to scan and attach to the edoc Know what you are approving!

27. Things to remember about a PCDO All PCDO’s are system generated Initiator is KFS PCDO’s are created automatically during a batch process that runs overnight Transactions are grouped by cardholder, by posting date per eDoc Cannot be disapproved or canceled

28. Action List

30. Elements of the PCDO

34. Use the ad hoc feature sparingly!! Check the Future Action Requests section in the Route Log Tab and do not ad hoc route to a person who is already in the established workflow.

35. Elements of the PCDO

36. Workflow Upon creation of the PCDO it is routed to the Cardholder for approval Cardholder has 7 calendar days to approve the transaction, attach receipt(s), indicate business purpose and make any necessary accounting adjustments If cardholder does not take action after 7 days, the PCDO auto-approves to the FO

37. Workflow After cardholder approval the PDCO moves on to the Fiscal Officer (FO) for approval The FO has 38 days to approve the eDoc before it will auto approve The FO must check to make sure the cardholder has made the necessary accounting changes, attached the receipt(s), indicated the business purpose Note: any financial document preparer can scan and attach an invoice or other back-up documentation If the cardholder and the FO are the same person, a note will pop up reminding the FO to ad hoc route the edoc to their Supervisor

38. Workflow

39. Pcard Document Enroute status action required Doc ID: 11111111111111 PCDO Create Date: 05/13/2013 Cardholder: Anderson, Wendy Last 4 digits: 1111 PCDO approval date has exceeded 31 days. Fiscal Officer immediate action required. Email notification was sent to Pcardholder, FO and Organization Manager.

40. Workflow Pcard Document Auto Approved Doc ID: 11111111111111 PCDO Create Date: 05/13/2013 Cardholder: Anderson, Wendy Last 4 digits: 1111 PCDO has auto approved. The Fiscal Officer is required to enter a note in the finance system in the Notes and Attachments tab that the PCDO transaction receipts were reviewed and are appropriate after the auto approval. In addition to adding this note, one of the following actions must be taken per your unit's policy and procedure. Option 1:Scan and attach the receipts in the Notes and Attachments tab of the PCDO after the fact. Option 2:Print a BI Purchasing Card Statement to which the hard copy of the receipts must be attached and required signatures applied. Any questions please contact the Pcard Administration Team at 517-884-6080 or send an email to emailpurchasing@usd.msu.edu.emailpurchasing@usd.msu.edu. Thank you.

41. Workflow If the cardholder is also the FO, a note will appear on the screen

42. Disputing a Transaction Charged for something you never received Fraud - charged for something you didn’t order Charged twice for same item Charged more than quoted Item received damaged Credit never received

43. Disputing a Transaction All disputes must be made within 60 calendar days of the transaction Attempt to resolve with merchant first Use “Statement of Questioned Item Form” (Exhibit D) to file a dispute with the bank Make a note in the edoc and the transaction log regarding the dispute reason Check the dispute button on the edoc

44. Statement of Questioned Item Form Exhibit F

45. Elements of the PCDO

46. Fraudulent Activity You may receive an email or phone call from the bank indicating possible fraud on your card Don’t give out personal information until you have verified that the email or phone call is not a phishing attempt Contact the bank using the number on the back of your card or in your training materials to determine the validity of the charge

47. Fraudulent Activity If it is determined to be fraud, the bank will cancel the card, send a replacement card, issue a temporary dispute credit to your account and send you an affidavit via US mail Be sure to sign and return the affidavit immediately If the bank investigation concludes that you did indeed make the transaction, the temporary dispute credit will be reversed and your card will be re-charged

48. Know the Difference! Fraud - when a card number has been compromised and used by someone other than the cardholder Misuse - when a cardholder makes a purchase that is not allowable per the User’s Manual or MBP Personal Use - when a cardholder uses the card to buy items for their personal use

49. Consequences Fraud – if reported appropriately, you (MSU) will not be liable for the charge Misuse – your card may be suspended or canceled Personal Use – revocation of the card, discipline up to and including termination, restitution and possible criminal charges.

50. Lost or Stolen Cards Report immediately to the bank Liable for any charges up to the point of cancellation No charge for replacement card Normally takes 10-14 days If stolen on campus, report to DPPS

51. Audit Internal Audit, Contract and Grant Administration and/or the Pcard Team will conduct periodic audits of pcard activity Pcard Team also performs compliance reviews to ensure that policies and procedures are being followed properly Fiscal Misconduct – if you suspect another employee is doing something they shouldn’t be doing, you should call the Fiscal Misconduct Hotline 1-800-763-0764

53. Conflict of Interest As a pcardholder, you must assure that the University does not knowingly enter into purchase commitments which would violate Michigan law or result in conflict of interest related to University policies including the MSU Employee Handbook. Questions regarding possible conflicts of interest should be directed to the Pcard Team.

54. Miscellaneous Leaving your department Leaving MSU Manual and forms are on the website Frequently Asked Questions NEVER SHARE YOUR PCARD DO NOT USE FOR PERSONAL USE Do the right thing!

55. Questions

56. Conclusion Make sure you signed the Sign-In sheet and HAPPY CHARGING!