FlexCard Training Spring 2006

1
FlexCard TrainingSpring 2006
2

• This FlexCard Training Presentation is divided
  into three sections
• 1. An overview of the FlexCard program and the
  policies and procedures that govern it, including
  information necessary for Reviewers, Allocators
  and Cardholders to pass the exams required for
  participation.
• 2. Training in use of the FlexCard Management
  Module, including how how to submit applications
  for and set up new Department Administrators,
  Reviewers, Allocators and Cardholders.
• 3. Training in use of the FlexCard Allocation
  Module, for reviewing, allocating and approving
  transactions.
• All of the material in this presentation is
  available, in full detail, on the FlexCard
  website at
• http//www.busserv.ucsb.edu/purchasing/flex/index
  .htm

3
FlexCard Overview

• UCSBs FlexCard is a Visa procurement card issued
  by U.S. Bank to UCSB employees who have authority
  to buy goods and services on behalf of their
  departments. The FlexCard is issued to an
  individual, not to a department, and cannot be
  used by anyone other than the Cardholder.
•  
• The FlexCard cannot be used for personal
  purchases and will not provide cash advances. It
  does not replace the US Bank Corporate Travel
  Card and cannot be used to charge travel or
  entertainment expenses.
• The FlexCard is essentially a low value
  purchasing card, and current commodity
  restrictions apply. The FlexCard can also be
  used to pay for certain repetitive purchases,
  such as cellular phone service or bottled water,
  as long as the good or service is purchased from
  the approved campus contract or UC Strategic
  Sourcing vendor. As more and more of these
  contracts are finalized, use of the FlexCard as a
  payment vehicle will expand. A complete list of
  allowable purchases is found on the website under
  the section entitled What Can I Buy the
  FlexCard? this list will be updated as
  necessary.

4
FlexCard Overview

• FlexCard Benefits
• Can be used with all merchants that accept the
  Visa card
• Internet purchases made without the need to use a
  personal credit card
• Merchant paid almost immediately (no invoices
  sent to Accounting)
• Reduces the need to use petty cash and/or
  employee reimbursements
•  
• Special Features
• Per transaction limit of 2,500.00 (including
  tax)
• Variable maximum monthly limit (the default is
  10,000), as determined by department purchasing
  needs
• Built-in controls that prohibit restricted
  purchases
• Fraudulent transactions and merchant disputes may
  be resolved by working with U.S. Bank

5
U.S. Bank

• CONTACTING U.S. BANK
•  
• By telephone
•  
• U.S. Bank has a 24-hour, 7-day hotline number
  [phone] - that should be called in the
  following situations activating a new FlexCard,
  reporting lost or stolen FlexCards or fraudulent
  charges, filing a dispute and requesting a copy
  of missing receipts. This number is printed on
  the back of each FlexCard.
•  
• Via Access Online
•  
• U.S. Bank has a website that FlexCard cardholders
  will use for two primary purposes (1) to
  register your FlexCard and set up a user account
  and (2) to access and print your monthly U.S.
  Bank FlexCard statements https//access.usbank.co
  m/

6
U.S. Bank

• ACTIVATING A NEW FLEXCARD
•  
• In order to activate your new FlexCard, call U.S.
  Bank at [phone].
• You will be asked by U.S. bank to provide
•  
• 1. your 16-digit FlexCard account
  number
• 2. your Social Security Number.
•  
• When asked for your SSN, you must provide your
  UCSB EMPLOYEE ID NUMBER.
•  
• If you key in your SSN, it will not match the
  number on file at U.S. Bank and your card
  activation will be suspended and routed to a live
  operator.
•  
• Whenever you call or are contacted by U.S. Bank
  and are asked for your SSN, you must always
  provide your UCSB EMPLOYEE ID NUMBER.

7
U.S. Bank

• SETTING UP YOUR USER ACCOUNT (ACCESS ON-LINE)
•  
• 1. Click the Register Online button.
•  
• 2. On the Online Registration page, enter the
  following information
•  
• a. Organization Short Name UCSB (not case
  sensitive)
• b. Account Number your 16-digit FlexCard account
  number
• c. Account Expiration Date month and year, as
  inscribed on your FlexCard
• d. Account Zip Code per your mailing address on
  the U.S. Bank mailer enclosed with your FlexCard
•  
• 3. You will be taken to the Licensing Agreement
  page click I Accept at the bottom of the
  document.
•  
• 4. You will be taken to the Password and Contact
  Information page complete all required fields
  and submit your request.
•  
• Please note Your password must be AT
  LEAST 8 CHARACTERS LONG and must be ALPHANUMERIC
  (that is, composed of both letters and numbers)

8
U.S. Bank

• PRINTING YOUR MONTHLY STATEMENT
•   
• 1. On the Welcome to Access Online main page,
  enter the following information
•  
• a. Organization Short Name UCSB (not case
  sensitive)
• b. User ID (as created above)
• c. Password (as created above)
•  
• 2. Click LOGIN.
•  
• 3. From the left hand menu, select Account
  Information.
•  
• 4. On the Account Information screen, select
  Cardholder Statement.
•  
• 5. If you have more than one FlexCard account,
  select the account number.
•  
• 6. Click the Search button.
•  
• 7. On the Cardholder Statement screen, select
  the Billing Cycle for the statement that

9
U.S. Bank

• REPORTING LOST AND STOLEN CARDS
•  
• 1. If your FlexCard has been lost or stolen,
  IMMEDIATELY call U.S. Bank. Prompt action on
  your part will reduce your department's liability
  for fraudulent charges.
•  
• 2. U.S. Bank will cancel your FlexCard and,
  within 1-2 business days, issue a new card that
  will be mailed to UCSB FlexCard Program
  Administration.
•  
• 3. Notify your Department Administrator and
  FlexCard Administration.
•  
• 4. Monitor the Allocation Module for any
  fraudulent charges that may have been made before
  the card was canceled.

10
U.S. Bank

• FRAUDULENT CHARGES
•  
• Your department may become aware of fraudulent
  (or potentially fraudulent) charges on a FlexCard
  in several ways (1) Department review of charges
  received in the FlexCard Allocation Module (2) a
  call from the Fraud Division of U.S. Bank or (3)
  a call from FlexCard Program Administration.
• 1. Attempt to resolve the problem with the
  merchant.
•  
• 2. If the charge is in fact fraudulent,
  IMMEDIATELY call U.S. Bank.
•  
• 3. Inform your Department Administrator and the
  Program Administrator.
•  
• 4. Monitor the Allocation Module for any
  further fraudulent charges.
•  
• 5. Allocate any fraudulent charges that appear
  in the FlexCard Allocation Module when
• the credits appear, they, too, will be
  allocated, zeroing out the fraudulent charges.

11
U.S. Bank

• DISPUTED CHARGES
•   
• 1. If there is a billing problem, contact the
  merchant and attempt to correct the problem.
  
• Most billing problems are easily resolved
  and credits issued by the merchants.
•  
• 2. If the billing problem cannot be resolved
  directly with a merchant, enlist U.S. Banks
• assistance by calling Customer Service and
  filing a DISPUTE.
•  
• NOTE CARDHOLDERS NEED TO PRESERVE THEIR DISPUTE
  RIGHTS BY NOTIFYING U.S. BANK WITHIN 60 DAYS OF
  THE DATE OF THE FIRST STATEMENT ON WHICH THE
  DISPUTED TRANSACTION APPEARS.

12
U.S. Bank

• WHAT TO DO IF YOU ARE CONTACTED BY U.S. BANK
•  
• U.S. Bank will not contact FlexCard cardholders
  except when fraudulent activity is suspected. In
  this case, they will contact cardholders BY
  TELEPHONE.
•  
• U.S. Bank Fraud Division will first verify that
  you are the cardholder by asking several
  questions. It is important that you be able to
  respond correctly
•  
• 1. Your name (as embossed on your FlexCard).
•  
• The last 4 digits of your FlexCard card number
  (as embossed on your FlexCard),
• as well as the 3-digit security code listed on
  the back of your card.
•  
• 3. Your Mailing Address (as it appears on
  Access On-Line).
•  
• University of California MC1150
• Purchasing Department
• Santa Barbara, CA 93106
• If you cannot be reached, U.S. Bank will leave a
  voicemail message and will SUSPEND YOUR FLEXCARD
  in order to prevent any more possible fraudulent
  transactions from being processed before you can
  be contacted.

13
U.S. Bank

• WHAT TO DO IF YOU ARE CONTACTED BY U.S. BANK
  (continued)
• If you were not immediately reached, it is
  important for you to call U.S. Bank as soon as
  possible. With your card temporarily suspended,
  you will not be able to make any new purchases.
  In addition, having a suspended card can affect
  previously placed orders because merchants
  should not process a credit card charge until
  they ship the items, your card could be declined
  for existing orders.
•  
• You will NEVER be directly contacted by U.S. Bank
  via email.
•  
• Any correspondence or communication from U.S.
  Bank will be relayed to you by FlexCard Program
  Administration.
•  
• Disregard and do not open any email from U.S.
  Bank any such email will be a phishing request
  intended to obtain your confidential information
  in order to commit credit card fraud. Forward
  the unopened email to FlexCard Program
  Administration which will inform U.S. Bank.

14
Setting Up a FlexCard Program

• Setting up a FlexCard program involves more than
  simply issuing a FlexCard to the employee(s)
  designated to conduct low value buying for your
  department.
•  
• There are several roles associated with a
  Purchasing Card, each with its own
  responsibilities. One person may fulfill more
  than one role, provided proper Separation of
  Duties is maintained.

15
Setting Up a FlexCard ProgramParticipant Roles

• DEPARTMENT HEAD
•  
• The sole role played by the Department Head in
  the FlexCard Program is approving the Department
  Administrator Application. CANNOT be a
  Cardholder.
• DEPARTMENT ADMINISTRATOR
•  
• The Department Administrator is responsible for
  the approval, assignment (and re-assignment) of
  the Reviewer, Allocator and Cardholder roles
  within his/her departments program. May be a
  Reviewer or Allocator CANNOT be a Cardholder.
• REVIEWER
•  
• The Reviewer is responsible for approving (and
  thereby transferring to the General Ledger) all
  transactions. May be Department Administrator
  CANNOT be a Cardholder.
• ALLOCATOR
• The Allocator (an optional role) is responsible
  for assigning purchase transactions to the
  appropriate LAFSO but cannot approve
  transactions. An Allocator who is NOT a Reviewer
  may also fill the role of a Cardholder.

16
Setting Up a FlexCard ProgramParticipant Roles

• CARDHOLDER
•  
• The Cardholder is responsible for all purchases
  made using the FlexCard(s) that have been issued
  in his/her name, in compliance with all FlexCard
  regulations and commodities restrictions.
•  
• Safeguarding the FlexCard
• The Cardholder must never give the account number
  to anyone else and must not allow anyone else to
  use the card. No personal purchases can be made
  on the FlexCard.
•  
• Reporting Lost or Stolen Cards
• If the FlexCard is lost or stolen, or if any
  fraudulent activity is detected, the Cardholder
  must notify U.S. Bank immediately.
•  
• Separation of Duties
• A Cardholder may also fill the role of an
  Allocator he or she CANNOT be a Reviewer or a
  Department Administrator.

17
Setting Up a FlexCard Program

• SETTING UP A DEPARTMENT ADMINISTRATOR
• 1. Log onto the FlexCard Management Module, using
  your UCSBnetID and password.
• 2. On the Main Menu, click the APPLY button.
• 3. On the Apply Menu, click the APPLY TO BECOME A
  FLEXCARD DEPARTMENT ADMINISTRATOR button.
• 4. On the Department Administrator Role
  Application screen, select the department(s) for
  which you will be acting as Administrator by
  clicking the appropriate check box(es). Once you
  select a department(s), the SUBMIT APPLICATION
  button becomes active.
• 5. Click the SUBMIT APPLICATION button.
• 6. The Department Administrator Application form
  appears. Print the form and obtain the necessary
  signatures.

18
Setting Up a FlexCard Program

• SETTING UP A DEPARTMENT ADMINISTRATOR (continued)
• 7. Mail the completed Department Administrator
  Application to
•   FlexCard Administration
• Purchasing Department MC1150
• 8. After the Application is received, reviewed
  and approved by the FlexCard Administrator, you
  will be notified via email.
• Potential Reviewers, Allocators and Cardholders
  can log onto the Management Module and take their
  exam(s) at any time.
•  
• However, no Reviewer, Allocator or Cardholder
  applications can be initiated until the
  Department Administrator Application has been
  processed.

19
Setting Up a FlexCard Program

• TAKING EXAMS
• 1. Log onto the FlexCard Management Module.
• 2. On the Main Menu, click the EXAM button.
• 3. On the Participant Exam Menu, click the TAKE
  EXAM button.
• 4. On the FlexCard Exams screen, click either the
  CARDHOLDER EXAM or REVIEWER/ALLOCATOR EXAM
  button, depending upon your role.
• 5. Read the instructions on the Exam Introduction
  page remember that you MUST NOT use your
  browsers BACK or FORWARD buttons, as doing so
  will cause you to exit the exam and record an
  incomplete exam and then click the START EXAM
  button.
• 6. Click the START EXAM button.
• 7. Proceed through the 20 exam questions. Each
  time a response is selected, you are
  automatically advanced to next one.

20
Setting Up a FlexCard Program

• TAKING EXAMS (continued)
• 8. When you get to the last question, with
  answers recorded for all 20 questions, the SUBMIT
  EXAM FOR SCORING button becomes active.
• 9. Click the SUBMIT EXAM FOR SCORING button.
• 10. If you answer at least 18 of 20 questions
  correctly, you receive a passing score.
• 11. If yo uhave taken the Cardholder Exam, you
  can initiate a Cardholder Application by clicking
  the APPLY TO BE A CARDHOLDER button. If you have
  taken the Reviewer/Allocator Exam, direct
  applications cannot yet be made from the exam
  (this function should be available within 4-6
  weeks) notify your Department Administrator so
  he or she can set you up as a Reviewer or
  Allocator.

21
Setting Up a FlexCard Program

• SETTING UP A REVIEWER
• The Department Administrator initiates the
  process
• 1. After having been informed by the Reviewer
  that he or she has passed the Reviewer/Allocator
  Exam, log onto the FlexCard Management Module.
• 2. On the Main Menu, click the DEPARTMENT
  ADMINISTRATOR MENU button.
• 3. On the Department Administrator Menu, click
  the MANAGE REVIEWERS button.
• 4. On the Manage FlexCard Reviewers Reviewer
  Administration screen, click the MANUALLY CREATE
  A NEW REVIEWER AUTHORIZATION button.
• 5. The Manually Create a New Reviewer
  Authorization screen appears, showing a list of
  all FlexCard program participants who have active
  Reviewer/Allocator Exam status. Click the SELECT
  button in front of the Reviewers name.
• 6. You are taken to an approval screen. Click
  the APPROVE APPLICATION button and you have
  completed the process.
• NOTE Whenever a Reviewer authorization is
  processed, the individual is automatically
  granted an Allocator authorization.

22
Setting Up a FlexCard Program

• SETTING UP AN ALLOCATOR
• The Department Administrator initiates the
  process
• 1. After having been informed by the Reviewer
  that he or she has passed the Reviewer/Allocator
  Exam, log onto the FlexCard Management Module.
• 2. On the Main Menu, click the DEPARTMENT
  ADMINISTRATOR MENU button.
• 3. On the Department Administrator Menu, click
  the MANAGE ALLOCATORS button.
• 4. On the Manage FlexCard Allocators Allocator
  Administration screen, click the MANUALLY CREATE
  A NEW ALLOCATOR AUTHORIZATION button.
• 5. The Manually Create a New Allocator
  Authorization screen appears, showing a list of
  all FlexCard program participants who have active
  Reviewer/Allocator Exam status. Click the SELECT
  button in front of the Allocators name.
• 6. You are taken to an approval screen. Click
  the APPROVE APPLICATION button and you have
  completed the process.

23
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD
• A. The CARDHOLDER initiates the application
  process
• CARDHOLDER
• 1. After having passed the Cardholder exam, click
  the APPLY TO BE A CARDHOLDER button.
• 2. You are taken to the Cardholder Role
  Application screen. Click the INITIATE
  APPLICATION button.
• 3. You are taken to the Cardholder Role
  Application Details screen. If necessary, edit
  your name and department address. Enter the card
  description that will be embossed on the
  FlexCard.
• 4. Once all Cardholder information has been
  updated and verified, click the SUBMIT
  APPLICATION button.
• 5. A screen appears confirming that the
  application has been sent to your Department
  Administrator. Inform him or her that the
  Cardholder Application has been submitted and is
  ready for review and approval.

24
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD (continued)
• DEPARTMENT ADMINISTRATOR
• 1. Log onto the FlexCard Management Module. On
  the Main Menu, click the DEPARTMENT ADMINISTRATOR
  MENU button.
• 2. On the Department Administrator screen, click
  the MANAGE CARDHOLDERS button.
• 3. On the FlexCard Department Administrator
  Cardholder Administration screen, click the
  APPROVE CARDHOLDER ROLE APPLICATIONS button.
• 4. On the Approve Cardholder Role Applications
  screen, click the SELECT APPLICATION button next
  to the appropriate Cardholder Application.
• 5. You are taken to the Cardholder Role
  Application Details screen, where a series of
  actions must be performed in various sections.
• a. Cardholder Information edit, if necessary.
  
• b. Billing Address edit, if necessary.

25
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD (continued)
• c. Default Account Number Linked to FlexCard
  enter the default LAFSO for the
• FlexCard and click the VALIDATE LAFSO
  button.
•   d. Recommended Reviewers select at least one
  Reviewer for the FlexCard, from
• the list of your departments
  Reviewers.
• e. Credit Limits enter the per transaction
  (default 2,500) and per cycle (default
• (10,000) limits for the FlexCard. A
  detailed justification must be provided for a
• per cycle limit over 25,000.
• f. Card Notes an optional field.
• 6. When all of the data entries have been made
  and validated, click the SUBMIT APPLICATION
  button at the bottom of the form.
• 7. A message appears at the bottom of the form
  stating that Application Number XXXXX Submitted
  to FlexCard Program Administrator.
• 8. The Program Administrator approves the
  Application and submits a new card request to US
  Bank.
• 9. The FlexCard arrives from U.S. Bank, typically
  within 2-3 days.

26
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD (continued)
• 10. The Program Administrator calls the
  Cardholder and schedules an appointment.
• 11. The Cardholder meets with the Program
  Administrator, presents picture identification,
  reviews and signs the User Agreement and picks up
  the FlexCard.
• 12. The Cardholder activates the FlexCard by
  calling U.S. Bank at 1-800-344-5696.

27
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD (continued)
• B. The DEPARTMENT ADMINISTRATOR initiates the
  application process
•  
• The potential FlexCard Cardholder logs onto the
  FlexCard Management Module, takes and passes the
  Cardholder Exam, but does not initiate a
  Application. He or she informs the Department
  Administrator that the exam has been passed.
• 1. Log onto the FlexCard Management Module. On
  the Main Menu, click the DEPARTMENT ADMINISTRATOR
  MENU button.
• 2. On the Department Administrator Menu, click
  the MANAGE CARDHOLDERS button.
• 3. On the FlexCard Department Administrator
  Cardholder Administration screen, click the
  MANUALLY CREATE A NEW CARDHOLDER AUTHORIZATION
  button.
• 4. On the list of all employees, in all
  departments, who have passed the Cardholder Exam,
  click the SELECT button to the left of the
  employees name of the employee for whom you want
  to create an authorization.
• 5. On the approval screen, click the APPROVE
  AUTHORIZATION button.

28
Setting Up a FlexCard Program

• HOW TO OBTAIN A FLEXCARD (continued)
• 6. You are returned to the FlexCard Department
  Administrator Cardholder Administration screen.
  Click the INITIATE AN APPLICATION TO CREATE A
  NEW CARD FOR AN AUTHORIZED CARDHOLDER button.
• 7. Click the INITIATE APPLICATION button next to
  the employees name.
• 8. You are taken to the Cardholder Application.
  Enter the Card Description in Section 1 and
  Department Mail Code and Name in Section 2.
• 9. The procedure proceeds as outlined above,
  picking up at step 5.c.

29
The FlexCard Purchasing Process

• Pre-Purchase
•  
• Prior to making a purchase with the FlexCard,
  your department should follow its existing
  pre-purchase process. The Cardholder should
  observe the following general process
•  
• 1. Determine whether the purchase is an
  allowable low value purchase
•  
• a. Does the total value (tax included)
  exceed 2,500?
•  
• b. Is the commodity restricted, such as
  inventorial equipment, a controlled item such
• as ethyl alcohol narcotic or
  dangerous drug firearm precious metal
  explosive or
• other hazardous material personal
  services, including consulting services?
•  
• If the answer to either question is Yes,
  the FlexCard cannot be used.
•  
• 2. Obtain the necessary pre-purchase approval.
•  
• 3. Obtain purchase specifications from the end
  user an e-quote or website printout, or
• the information supplied on a Request for
  Delivery.
•  

30
The FlexCard Purchasing Process

• Making the Purchase
•  
• 1. When placing your order, provide the
  Merchant with your low value number (and
• dash number) and ask the Merchant to
  include it when submitting your Visa card
• charge. Some Merchants, though not all,
  have the capability to do this.
•  
• 2. Document the order
•  
• a. Internet print a copy of the Order
  Confirmation, confirmation email, order page,
• or other similar document
•  
• b. Telephone order write down the
  confirmation number, etc. on the Request for
  
• delivery or other form that you used
  to place the order
•  
• c. In-person purchase retain a copy of
  the cash register receipt which should be
• itemized to provide a full list of
  items purchased and initial the receipt
• 3. Retain the order documentation to match with
  pre-purchase approval documentation,
• keeping the paperwork for each order
  separate for easy reference.

31
The FlexCard Purchasing Process

• Responding to Email Notification of a New
  Transaction
•  
• Cardholder
•  
• Log onto the FlexCard Allocation module and
  verify that the transaction information is
  correct
•  
• 1. Did you place an order with this Merchant?
  If no, there may be credit card fraud
• follow the procedures outlined under
  Fraudulent Charges and Disputes.
•  
• 2. Is the Merchant total accurate? You may
  need to wait for actual delivery of the
• order before you can confirm billing
  discrepancies.
•  
• Reviewer
•  
• Unless the transaction was an in-person purchase
  and the goods have been received, there is
  nothing for the Reviewer to do at this point in
  time the charges cannot be allocated until the
  order has been received.

32
The FlexCard Purchasing Process

• Receiving the Order
•   
• 1. Review the shipment for completeness were
  all the items shipped or are some on
• back order? Do the items received match
  the items ordered?
•  
• 2. If there are any problems with the order,
  contact the Merchant and take the
• necessary steps to remedy the situation.
  If desired, enter a Comment into the
• FlexCard Allocation Module. There is no
  need to file a Dispute with U.S. Bank
• unless you cannot resolve the problem with
  the Merchant.
•  
• 3. Check off each item on the packing slip/or
  paid invoice enclosed with the order.
•  
• 4. Sign and date the packing slip/paid invoice
  and attach it to the order documentation.
•  
• 5. Pass the documentation package to the
  Allocator or Reviewer, as appropriate.

33
The FlexCard Allocation Module

• IMPORTANT GENERAL INFORMATION Your department
  has 14 days from the day that the notification of
  a new transaction was emailed to REVIEW it (that
  is, to approve the expense and allocate it to a
  specific LAFSO). If not reviewed within the
  14-day window, it will automatically be allocated
  to the FlexCards default LAFSO.
•  
• Even if the default LAFSO was correct, the
  transaction MUST STILL BE REVIEWED. Email
  notifications will be generated when unreviewed
  transactions are about to reach 30-, 45- and
  60-day milestones.
•  
• If you do not review a transaction within 60
  days, FlexCard Program Administration will be
  notified and your departments FlexCard
  purchasing privileges will be suspended.
•  
• The Reviewer will need to log onto the Allocation
  Module and allocate (via TOE, if necessary) all
  transactions not reviewed within 60 days. The
  FlexCard Administrators will schedule a meeting
  to discuss the situation and the measures that
  your department will implement in order to
  prevent its recurrence. Only after this meeting
  will FlexCard purchasing privileges be
  re-instated.
•  
• It is critical that all transactions be reviewed
  within the 60-day window because your department
  loses the right to dispute charges through U.S.
  Bank once it has been reached. Even if charges
  are fraudulent, your department will be liable
  for them.

34
The FlexCard Allocation Module

• Within the 14-Day Window
•  
• 1. Have the purchase documentation package in
  front of you in order to verify all pertinent
  details before proceeding.
•  
• 2. Log onto the FlexCard Allocation Module and
  allocate the charges as appropriate.
•  
• 3. Approve the charges, thereby transferring them
  to the General Ledger.
•  
• After the 14-Day Window (15-60 days)
•  
• 1. If a transaction is not approved within the
  14-day window, it will automatically be allocated
  to the FlexCards default LAFSO.
•  
• 2. If the default LAFSO is not the correct one,
  reallocate the charge using TOE. You can access
  TOE from within the FlexCard Allocation Module or
  by logging directly onto the Transfer of Expense
  system via the Espresso single sign-on portal.
•  
• Even if the default LAFSO was correct, the
  transaction MUST STILL BE REVIEWED.

35
The FlexCard Allocation Module

• LOGGING ONTO THE FLEXCARD ALLOCATION MODULE
•  
• The FlexCard Allocation Module is accessible
  through the Espresso Single Sign-On Portal at
  https//uwa1.isc.ucsb.edu/loginas.html.
• 1. Log onto Espresso using your UCSBNetID and
  password.
• 2. Enter the Allocation Module by clicking
  FlexCard on the list of Staff Applications.

36
The FlexCard Audit Process

• The purpose of audits is not to punish your
  department or any individual but rather to assist
  you in running a departmental FlexCard program
  that maintains all mandated controls and retains
  all necessary documentation, in order to minimize
  your departments (and the Universitys) exposure
  to risk and loss.
• Audits of FlexCard purchases may be conducted at
  several different levels.
•  
• DEPARTMENT
•  
• 1. Transaction Pending Allocation Self-Audit
•  
• The Cardholder audits each new transaction
  to verify that s/he made the purchase,
• as the first line of defense against fraud.
•  
• 2. Departmental Self-Audits
•  
• Conduct periodic self-audits of sample
  transactions to ensure that all necessary
• documentation has been assembled and
  retained for each purchase.

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The FlexCard Audit Process

• FLEXCARD PROGRAM ADMINISTRATION
•  
• 1. Transaction-Level Audits
•  
• Transaction level audits will not target
  specific departments or Cardholders. The
  Management Module will notify FlexCard Program
  Administration of certain TYPES of transactions
  to ensure compliance with the policies that
  govern the procurement card program and in order
  to protect against certain kinds of fraud or
  misuse.
•  
• 2. Statistical Sampling Audits
•  
• FlexCard Administration will conduct
  cyclical campus- and department-level audits. An
  entire group of transactions all transactions
  during a limited time period, X number of
  randomly-selected transactions per department
  during a limited time period will be selected.
•  

38
The FlexCard Audit Process

• UCSB AUDIT ADVISORY SERVICES
•  
• FlexCard purchases, like all other purchases and
  financial transactions, will be subject to audit
  by UCSB Audit Advisory Services as part of
  their routine audits of campus departments.
•  
• EXTERNAL (NON-UC) AUDITORS
•  
• All University financial transactions (FlexCard
  purchases included) are regularly audited by
  several external agencies
•  
• 1. State Board of Equalization
•  
• 2. University of California External Auditors
•  
• 3. Federal Contract Compliance Audits

39
FlexCard Records Retention

• Because your department retains all copies of
  documentation related to FlexCard purchases, it
  is the OFFICE OF RECORD for the documentation.
  Your department must retain original copies of
  all FlexCard purchase documentation for the
  period of time mandated by University of
  California policy.
•  
• GENERAL FUNDS
•  
• For all purchases made with general (19900) and
  similar university funds (20000, 69750, 07427,
  service enterprise and income, etc.),
  documentation must be retained for FIVE years
  following purchase.
•  
• EXTRAMURAL FUNDS
•  
• All purchases made with extramural funds are
  subject to more stringent records retention
  requirements, which vary according to the agency
  (please consult the award document or contact
  your Sponsored Projects Officer if you have
  questions regarding a specific award). As a rule
  of thumb, FlexCard purchase documentation should
  be retained for SEVEN years following acceptance
  by the awarding agency of the final Closeout
  Report.

40
Other Resources

• Contact Information
• Management Module, Cardholder/Reviewer Exams,
  Card Applications
• Vaughn Boyle, Purchasing, x7377,
  vaughn.boyle_at_purc.ucsb.edu
• Lisa Klock, Purchasing, x4073, lisa.klock_at_purc.ucs
  b.edu
• Or flexcard_at_purc.ucsb.edu
• Allocation Module
• Sandra Featherson, Accounting Services
  Controls, x7667, sandra.featherson_at_accounting.ucsb
  .edu
• Sales and Use Tax
• Asger Pedersen, Accounting Services Controls,
  x3919, asger.pedersen_at_accounting.ucsb.edu
• General Accounting
• Russell Remington, Accounting Services
  Controls, x2372, russell.remington_at_accounting.ucsb
  .edu