John Carroll University Purchasing Procedures

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John Carroll UniversityPurchasing Procedures
The Purchasing Card

• Guidelines
• Usage
• Reporting

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John Carroll University Purchasing Office

• Andrew Fronczek, C.P.M.Director of Purchasing
  Auxiliary Services
• Tom ReilleyManager of Purchasing Auxiliary
  Services
• Lisa BrownPurchasing Staff

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How Are Goods/Services Purchased

• Purchase Orders
• VISA Purchasing Card (Pcard)
• Preferred Vendor w/ORGN Code
• Direct Billing (Without a PO)
• Personally (Receipts Subsequently Submitted for
  Reimbursement with a Multi-Voucher Form)

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General Purchasing Guidelines

• Most Items/Services lt500 Do NOT Require a PO
• Items/Services 500 or more require a PO
• Non-Capital Items/Services
• 1500 require multiple verbal/documented quotes
• 5000 require multiple bids
• Capital Items
• 10,000 require multiple verbal/documented quotes
• 25,000 require multiple bids

NOTE POs Must be Approved by the Purchasing
Office Before an Order can be Initiated with a
Vendor!
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Items Requiring a PO Regardless of Cost

• Printed/Imprinted Items (Including Stationery,
  Brochures, Ads, Clothing, T-shirts, Ad Specialty
  Items)
• Office Products (Except through StaplesLink
  Online)
• Computer Products
• Electronic Items
• Furniture Fixtures
• Hazardous/Controlled Substances

Use of the Pcard may be allowed with permission
of the Purchasing Office
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Using Preferred Vendors

• Allows University Community to Purchase
  Approved Items Directly from a Vendor with
  their ORGN Codes (No PO Required)
• Preferred Vendors
• Staples Business Advantage Online Procurement
  via Staples Business Card (Emergencies Only)
• Fairfield Inn Suites (Phone, Fax, or
  w/Pcard)Must provide Dept. Name, Contact, ORGN
  Code
• Enterprise Car Renal (Phone, Internet, or
  w/Pcard) Must provide Dept. Name, Contact,
  ORGN Code

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Printed/Imprinted Items

• All Items Require a PO Printed/Imprinted Items
  Including Reprints!
• Exceptions
• Contracted Items that have been Bid
• Use of the Logo Shop located in the Copy Center
  does not require a POOnly Orgn Codes are
  neededhttp//www.jcu.edu/fas/pas/logoshop.htm
• All Content Must be Approved by Marketing
  Communications
• Rights to the Use of the Universitys Name and
  Logo must be obtained from the Purchasing Office
• These Guidelines apply to Departments, Student
  Organizations, Clubs

Guidelines Concerning the Purchase of
Printed/Imprinted Items Using University
Funds http//www.jcu.edu/fas/links/policies.htm
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Food Entertainment Purchases

• University Funds should NOT be Used to Purchase
  Meals/Food for
• Individuals
• University Groups consisting solely of University
  Personnel conducting University Business (unless
  the conduct of such Business cannot be
  accomplished otherwise)
• Outside Vendors
• University Funds may (on a Limited Basis) be Used
  to Purchase Meals/Food for
• Meals when a University Employee is Hosting a
  Guest (e.g. Speaker, Recruit, Donor, Board
  Member)
• Meals/Food Purchased for the Benefit of Students
  as a Reward or in Connection with a
  University-Sponsored Activity

Budget Advisory Restrictions Concerning Meal
Purchases with University Funds
http//www.jcu.edu/fas/links/policies.htm
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Gifts Gift Cards/Certificates

• University Funds should NOT be Used to Purchase
  Gifts and Gift Cards/Certificates for Employees
• Gifts Gift Cards/Certificates Used as
  Raffle/Door Prizes for Student Activities/Events
  is Permitted with Pre-Approval of the Director of
  Purchasing Auxiliary Services or the Vice
  President for Finance
• The Group/Individual Must Document the
  Number/Value of these Items for Approval
• Upon Distribution of these Items, the Name, Phone
  Number, and Signature of the Recipients is
  Required

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John Carroll University Purchasing Card (Pcard)
http//www.paymentnet.com
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Pcard Executive Administrators

• Richard Mausser, CPAVice President of Finance
• Andrew Fronczek, C.P.M.Director of Purchasing
  Auxiliary Services
• Matthew VerlenySenior Accountant
• Additional Individuals with Pcard Management
  Responsibilities
• Tom ReilleyManager of Purchasing Auxiliary
  Services
• Lisa BrownPurchasing Staff

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A Growing Trend in Procurement

• In Fiscal Year 2008-09
• Over 270 University Employees
• Almost 16,000 Purchases
• Approximately 5,000,000

This has created meaningful purchasing
efficiencies for the Cardholders, Accounts
Payable, the Purchasing Office Rich
Mausser, V.P. for Finance
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Advantages of Using a Pcard

• Cardholder
• No Waiting for Reimbursements or Payments
• Reduces the need to Obtain POs
• Can be Used Anywhere that Accepts VISA (More
  Flexibility)
• Quicker Purchases (Outside of Normal Business
  Hours)
• Online Purchases
• Quicker Delivery of Goods Services
• Entire System is Online (Electronic Review
  and Approvals from Anywhere)
• Budget Administrator
• More Flexibility in Managing your Budgets
• Less Chance for Duplicate Payments
• Customized Spending Limits for Cardholders
• Reduced Paperwork throughout the Purchasing
  Process
• Electronic Approval and Oversight
• University
• Overall Reduction in Paperwork, Esp. for Small
  Items
• Payment Processing Rime Reduced

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Who Should Have a Pcard?

• Anyone who Purchases at least once a Month
• Anyone who Travels at least once a Year
• Pcards are not Benefits..They are Procurement
  Tools

Direct Billed Invoices will not be Accepted from
Anyone more than Once who meets the Criteria
Listed Above!(Exception Student Organizations)
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Cardholder Responsibilities

• Adhere to All Purchasing Policies Guidelines!
• Keep Your Card Safe!
• Process Your Online Transactions Monthly
  Statements as Required
• Make sure the Vendor does Not Charge Sales Tax
  (TE Number is Printed on the Card, but is Not
  Automatically Applied)
• Report Lost/Stolen Cards Immediately
  (800-270-7760)

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Suggested Pcard Purchases

• Dues and Professional Memberships
• Magazine Newspaper Subscriptions
• Books and Periodicals
• Travel Expenses (including Ground Transportation,
  Hotel Accommodations, Parking, Restaurants,
  Tolls, Airline Tickets)
• Car Rental (short-term)
• Food (not for employee-only consumption)
• Entrance fees
• Fuel
• Advertisements
• Catering Services
• Conference/seminar registration fees
• Florists
• Software (with approval of Information Services)
• Equipment less than 500, except for computer and
  office
• Supplies less than 500, except for computer and
  office

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Prohibited Pcard Purchases

• Items for Personal Use
• Office Supplies
• Computers (must be purchased through Information
  Services)
• Furniture
• All Portable electronic devices (including cell
  phones, ipods, PDAs, digital cameras, GPS units)
• Pre-recorded AV Materials (including CDs or DVDs)
• Gifts or Donations (including any type of gift
  card)
• Packaged Alcoholic Beverages
• Prescription Drugs and Controlled Substances
• Radioactive Materials
• Services involving Labor, Indemnity, Insurance
• Vehicle Purchases or Long-Term Leases
• Weapons, Ammunition and Detonating Equipment
• Bio-Hazardous Materials, Live Biological or
  Bacteriological Viruses
• Cash Advances

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Reviewing Purchases Online

• Transactions Post within 2-3 Days
• Login Verify ORGN ACCT Codes, Add Activity
  Code (optional)
• Add Notes, Check Reviewed Box Save
• Food/Travel/Entertainment MUST be Detailed with
  Who, What, Why

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Online Processing of Transactions
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Completing Transactions that need to be Charged
to ORGN Codes You do not have

• Change the ORGN Code to None
• If you are splitting transactions and do not have
  access to one of the Orgn Codes, You should leave
  ORGN Code at None Describe how You Need the
  Split Allocated Do Not Assign the Codes You Have
  Access to!
• Add Notes and Include the ORGN Number and Person
  who gave You Permission to Use this Number
• If You will Use this ORGN Code on a Regular
  Basis, Obtain Permission to have it Added to Your
  Drop-Down Menu from the Administrator who
  Controls this Code and Notify the Purchasing
  Office

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End of Month Processing

• At the End of the Month, Print Notes, Attach
  Receipts, Statement
• Sign Statement and Forward to your Budget
  Administrator/Supervisor for their Review
  Signature
• The Budget Administrator is Responsible for
  Reviewing All Purchases by their Cardholders

The Approval Process should not be Administered
Using a Rubber Stamp Mentality!
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Generating Your Monthly Detailed Report
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Printing Your Monthly Statement Online
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Assembling Your Monthly Paperwork

• Due by the 15th of the following month
• There is a 15 day grace period (end of the month)
• Trans. Numbers should be written on all receipts
• Place small receipts in an envelope or send
  copies

All Pcard Statements Require Two Signatures (No
Exceptions) Cardholders Signature Budget
Administrators Signature(The Budget
Administrator is Responsible for Carefully
Reviewing the Cardholders Purchases)
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Important Pcard Dates

• Online Review and Notes MUST be Completed before
  the 10th of the Following Month
• Reminders are sent on approximately the 5th
  (initial) 9th (final)
• Failure to Complete Online Processing by the 10th
  will Result in Pcard Suspension
• After the 10th, All Changes have to be Done with
  a Journal Entry Form Notes Manually Written!
• The Signed Monthly Statement Package is Due in
  the Purchasing Office by the 15th
• Any Statements Not Received by the Beginning of
  the following Month may Result in Pcard
  Suspension

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Accidental Personal Purchases

• Call Report the Incident to the Purchasing
  Office
• Go to the Cashiers Office with a Check in the
  Amount of the Purchase
• Have the Transaction listed on the Receipt
• Deposit the Funds against the Budget Number
  listed under the Transaction
• Enter Notes Online listing the Transaction as a
  Personal Purchase along with the Receipt from
  the Cashiers Office
• Attach the Cashier's Receipt to your Monthly
  Statement

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Missing Documents

• All Transactions Require Documentation
• Receipts, Invoices, Emails with Purchase
  Information are Acceptable
• The Cardholder should call Any Vendor and Request
  Missing Receipts
• A Missing Receipt Form is Used for an Occasional
  Missing Receipt

A Missing Receipt is the Exception.No Monthly
Statements Should be Submitted with Numerous
Missing Receipt Forms!
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What if My Pcard Gets Suspended?

• All Purchases, Regardless of Value, will Require
  a PO
• Travel Expenses will have to be Paid Personally
• No Cash Advances
• No Reimbursements for Missing Receipts or
  Purchases that are Not in Compliance
• Your Pcard will be Re-Instated following
  Suspension after Attending a Pcard Refresher
  Training Class
• Any Future Suspensions may Result in Loss of All
  Purchasing Privileges

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Need Help, Please Call
Thank You The Purchasing and Accounts Payable
Offices