University MasterCard: Procurement Credit Card Information

1
University MasterCard Procurement Credit Card
Information

• Penn Summer Abroad

2
Program Overview and Controls

• Bank One is a Corporate MasterCard Purchasing
  Card.
• The Penn ProCard is used to acquire goods
  services

3
Overview and Point-of-Sales Controls

• This is a corporate MasterCard product issued by
  Bank One for purchases of designated products and
  services from non-restricted suppliers
• There is no limit on daily or monthly
  transactions
• Your program will have a credit limit which
  cannot be exceeded

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Benefits to the University

• Simplifies procurement of non-restricted products
  and services
• Reduces administrative time and effort related to
  purchases and payments to non-marketplace
  suppliers
• Reduces costs associated with processing purchase
  orders, invoices and checks
• Effective procurement tool for emergency
  requirements
• Compliments the Universitys electronic
  procurement system, BEN Buys, and the Penn
  Marketplace

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Benefits to the Supplier

• Authorizes Cardholder to act as an official of
  the University
• Streamlines the purchase process for authorized
  commodities
• Delegates purchase authority, responsibility and
  accountability to authorized Cardholder at the
  point of sale
• Authorized procurement method ensures payment for
  products and services provided to University
  departments
• Reduces administrative time and effort related to
  processing Penn requirements
• Prompt payment from bank improves supplier cash
  flow

6
Corporate Personal Liability

• Corporate liability includes
• All charges made by University employees
• First 50 of charge against lost or stolen card
• Corporate liability excludes
• Charges made by terminated employees
• Charges made after Bank One has been notified of
  lost or stolen card
• Personal liability
• Employee is not liable as long as s/he follows
  procedures for transactions as outlined in the
  University Cardholder Agreement and
• Makes transactions in accordance with approved
  program budget
• Use of this card has no impact on employees
  personal credit history

7
Program Restrictions

• Procurement card cannot be used for
• Personal purchases, except as itemized in your
  approved program budget
• Alcoholic beverages (incl. beer and wine)

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Sales Tax Exemption

• Purchases of products and services related to the
  Universitys educational and research mission are
  tax exempt
• Supplier may request a University tax exemption
  certificate
• Requests for tax exemption certificates are to be
  directed to (www.purchasing.upenn.edu/training/cre
  dit_card_training/section14_pa_state_tax_exemption
  .asp)
• University tax exemption number is imprinted on
  the back of each procurement card
• Tax exemption certificate must be signed by the
  Director of Acquisition Services or the
  University Tax Manager
• Signed tax exemption certificates will be sent
  directly to the designated supplier
• www.purchasing.upenn.edu/training/mastercard/tax.a
  sp

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Sales Tax Exemption (continued)

• Items not tax exempt
• Retirement gifts, flowers, awards and gifts
• Occupancy tax at hotels, motels, and similar
  establishments
• Restaurants
• To be eligible for tax exemption, cardholder is
  required to act in accordance with all University
  financial policies, procedures and restrictions

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Financial Policy 2303

• Purchase activity must be conducted in accordance
  with University Financial Policy 2303 as per
  attachment
• All cardholders must sign and accept the terms
  and conditions of the University of Pennsylvania
  Cardholder Agreement prior to receiving a
  procurement credit card.
• All procurement credit card transactions must be
  made by the individual to whom the card has been
  issued.
• Fraudulent use of the procurement credit card
  will result in actions being taken in accordance
  with the procedures established in the Cardholder
  Agreement form.

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Cardholder Responsibilities

• Complete PaymentNet Training prior to receiving
  purchasing card
• Keep receipts for products or services and turn
  them in to the Business Office no later than
  9/15/08
• Maintain or forward supporting documentation to
  authorized reviewer no later than 9/15/08
• Resolve delivery and credit disputes with
  suppliers
• Comply with all School/Center specific
  requirements
• Respond to CGS Business Office requests for
  information to review and reconcile monthly
  statements
• Complete notes field in the PaymentNet System.
  Senior Business Administrator (C. Gravener) will
  review charges on a weekly basis by accessing the
  notes field in the PaymentNet System for each
  purchasing card

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Misuse of Procurement Card

• Personal misuse (Cardholder)
• Personal purchases that are NOT on your approved
  budget
• Alcoholic beverages
• Administrative misuse (Business Administrators)
• Failure to obtain and forward supporting
  documentation for all card transactions
• Lack of timely and proper reconciliation of
  monthly statements
• Use of the card by anyone other than the
  authorized cardholder
• Risks for non-compliance
• Warning letters from Program Administrator and
  School/Center senior administrator
• Suspension of card privileges
• Employee termination

13
Obtaining Activating a Procurement Card

• Submit New Cardholder Application to Departmental
  BA and School/Center Senior Financial Officer for
  review and approval
• Forward approved Cardholder application to
  Procard Administrator (Accounts Payable,
  440FB/6281)
• Read Procard information packet and agree to
  conditions
• Call phone number on card to activate your ProCard

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Procurement Card Ordering Process

• Place order with supplier by
• Phone
• Mail
• Fax
• In Person
• Web Site
• (See safe purchasing on the web guidelines)
• Provide necessary information to supplier
• Identify yourself as a University employee
• Provide product or services requirements
• Provide the Universitys tax exemption number
  imprinted on back of card
• Desired delivery location on the Penn campus
• Provide any additional information required by
  supplier to complete the order

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Penn Bookstore Computer Connection

• Order by phone or in person, and follow same
  process as ordering from an external supplier
• Inform Penn Bookstore employee that you are
  making a departmental purchase in order to
  receive the 10 discount
• Provide valid University Identification Card and
  credit card at the time of pick-up

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Documentation Requirements

• Proof of purchase
• Maintain adequate supporting documentation
• Match receipts and/or documentation to monthly
  cardholder statement
• Examples of adequate documentation
• Internal order form
• Subscription or dues forms
• Conference registration forms
• Packing slips
• Service reports
• Cash register receipts
• Documentation retention

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Disputing a Transaction

• Inspecting products and services at the point of
  delivery is the responsibility of the cardholder
  or their designee
• Returning products to a supplier
• Contact supplier and request a return
  authorization number
• Return product based on supplier instructions
• Report disputed transactions to Procard
  Administrator
• Complete a Statement of Questioned Item form
• Follow up with supplier for credit within 30 days

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Procurement Card Reports

• School/Center review of cardholder monthly
  activity is required
• Senior financial officers in Schools and Centers
  receive management reports to assist in
  monitoring monthly usage reports

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Card Administration Reminders

• Procurement card security
• Do not share your procurement card with anyone
• If your transactions are stopped by Bank One for
  security reasons, use the number on the back of
  the card to contact them while abroad)
• Report lost or stolen card
• Cardholder must contact Bank One and Procard
  Administrator
• Bank One (800-316-6056)
• Penn administrator (215-898-3606)

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Compliance

• School or Center reviews cardholder activity
• Periodic cardholder audits are conducted by
  program managers and Internal Audit

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Questions?

• Q A