Purchasing Procurement Card User Guide

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PMM

Purchasing

Contact Info

Florida Institute of Technology

150 W. University Blvd

Melbourne, Florida 32901

Purchasing: (321) 674-8110

Property: (321) 674-7225

Mailroom: (321) 674-7224

Purchasing Procurement Card User Guide

The Procurement Card User's Guide is distributed to each cardholder when they are trained. No one receives a card until they have attended the training session.

Procurement Card Introduction

Procurement Card Contact Information

1. Overview of Procurement Card Program

1.1 PURPOSE

The purpose of the Florida Tech Procurement Card Program is to establish a more efficient, cost effective method of purchasing and paying for small dollar ($1499 or under including all delivery, shipping and/or special handling charges) transactions within established usage limits. This program was established in October 2000 to replace small purchase orders, most small dollar claim petty cash vouchers, and the use of personal funds reimbursed by Check Requests. This program is designed to dramatically improve efficiency in purchasing low dollar goods and services for University use from suppliers that accept the VISA Purchasing credit card, including some University services such as the bookstore. The card can be used for in-store purchases as well as mail, phone or fax orders. Some examples of target purchases intended for this program include:

1. Office Supplies
2. Subscriptions
3. Small Equipment Items
4. Industrial Supplies
5. Scientific Supplies

Purchases must be for the use and benefit of the University. NO PERSONAL PURCHASES ARE ALLOWED. All cards are issued at the request of your department head. Card usage will be monitored and cards may be rescinded at any time.

This manual provides the guidelines under which you may use your procurement card. Please read it carefully. Your signature on the Procurement Cardholder Agreement (see Appendix B) indicates that you understand the intent of the program and agree to adhere to the established guidelines. You will be issued your procurement card after completion of training and receipt of the signed Agreement by the Purchasing Office. You may begin using it immediately.

Record keeping will be essential to ensure the success of the program. Standard payment policies require retention of receipts, and other documentation. As with any credit/charge card, you must retain sales slips, cash register receipts, invoices, order forms and receiving documents. In addition, a Procurement Card Transaction Log (see Appendix G) must be maintained to expedite reconciliation and approval.

Any vendor you currently purchase goods from should be considered a potential vendor of the procurement card - even if they do not accept procurement or charge cards today. If a vendor you wish to use does not currently participate, you should complete a Vendor Non- acceptance Form (see Appendix C) and forward it to the Purchasing Office. The bank will contact your vendor.

The procurement cards are set up in the following groups:

1. FITALLOW - Not to exceed $1499 per transaction
2. FITAIRLINE - Open-Ended
3. FITHOTEL - Open-Ended

4. FITCAR - Not to exceed $1499 per transaction

The procurement card billing cycle is 30 days. Keep in mind that this spending cycle is the period between the 5th of the current month through midnight the 4th of the following month.

Some vendor types have been blocked from usage with this procurement card. If you present your card to any of these merchants, the transaction will be declined. It is likely that any merchant you currently utilize as a source for commodities will accept this card. If you are declined and feel the decline should not have occurred, you may contact the Office of Purchasing at 321-674-8110 to determine if you were declined because of the merchant blocking or if you may have exceeded the monthly cycle limit or the single transaction limit imposed on your card. Examples of vendor codes that have been blocked are:

liquor package stores
insurance services
some service providers

Please note that this card cannot be used for personal purchases, or as personal identification, under any circumstances.

1.2 BENEFITS

The use of this Procurement card will:

Allow employees to obtain certain goods and services much faster and easier;

Sharply reduce paperwork and processing time in the employee's department, Accounts Payable and Purchasing;

Enable employees to be more efficient and focus on the value-added aspects of their jobs; and

Provide cost savings through consolidated payment (one monthly payment to Bank, versus multiple supplier payments).

Important benefits for suppliers include:

- Receiving payment in net terms

- Elimination of invoicing and collection activities

In most situations individual cardholders and departments will either deal directly with Bank or with the University's Procurement Card Administrator in the Purchasing Office.

1.3 THE CREDIT CARD COMPANY

The program that the University has chosen is provided by Bank of America, In turn, Bank of America utilizes the services of Card Service of InfoSpan, to generate management reports and other usage information.

Merchants are paid by Bank within three days of your business transaction. Please indicate to merchants that they MUST NOT invoice the University, in addition to the detailed charge receipt, as an invoice could result in duplicate payment. Request merchants to give detailed description of goods, not just "misc.". BE SURE TO REMIND THE VENDOR OF THE UNIVERSITY'S TAX EXEMPT STATUS WHEN MAKING A PURCHASE. The words "Florida Tech Tax Exempt 85-8012646509C-2." is printed on the face of the card.

In most situations individual cardholders and departments will either deal directly with Bank or with the University's Procurement Card Administrator in the Purchasing Office.

2. Where to Get Help

2.1 BANK

To report a lost/stolen card call 1-888-449-2273. The cardholder must call Bank immediately upon discovering that the card has been lost or stolen. Assistance is available 24 hours a day. Also call the University's Procurement Card Administrator as early as possible at ext. 7366 or 8110. If necessary, leave voice mail.

Bank of America Customer Service, 1-888-449-2273 for general assistance and information.

To dispute a transaction that has appeared on your statement:

Fax the "Statement of Questioned Item" form (Appendix E) to Bank of America at 1-888-678-6046. Also, fax a copy to the Procurement Card Administrator at 674-7509.

2.2 FLORIDA TECH PURCHASING OFFICE

Provides support and assistance to cardholders, campus departments, etc.; distributes/processes new card applications, processes changes in cardholder information (name, mailing address, increase or decrease in limits, etc.) schedules training, updates User's Guide, distributes monthly credit card statements and other reports. Works with suppliers that do not currently accept VISA, facilitates negotiation of volume discounts with heavily used suppliers (where contracts have not previously been negotiated).

3. Cardholder Policies and Procedures

3.1 OBTAINING A CARD

To qualify to obtain a Procurement card a person should intend to use it for at least a total of $1499.00 or less worth of purchases, or at least 4 transactions, per month. Those with specific needs not meeting these minimum levels may make a special request to Purchasing for consideration.

How to Obtain a Card

After you have read and understand the procedures outlined:

1. Fill out P-Card Application Package Forms. Note that the Department or VP head must approve the application by signature.

2. Forward the Application Form to the Purchasing Office.

3. The Purchasing Office will acquire the card, will arrange for cardholder training, and will deliver the card during the training.

4. Any changes needed can be made by contacting your department/office card coordinator.

5. When you receive your card, sign the back of the card immediately. Although the card may be issued in your name, it is the property of Florida Tech and is only to be used for University purchases as defined in this manual.

3.2 CONFLICT OF INTEREST

By their signature on the procurement card application, all cardholders acknowledge that they will comply with Purchasing Policies and report, in writing to the Purchasing Office, any incidents of real or apparent conflict of interest or unethical business practices.

3.3 KEEPING YOUR CARD SECURE

Always keep your card in a secure place. Just as you would your personal credit card, treat it as if it were cash. You are responsible for the security of this card and the transactions made against it. The card is issued in your name and any purchases made against the card will be your responsibility. Cards and card numbers must be safeguarded against use by unauthorized individuals in the same manner you would secure your personal credit card. Use of the card not in accordance with guidelines established may result in personal liability. Remember, you are committing university funds each time you use the procurement card. This is a responsibility that cannot be taken lightly.

3.4 SALES TAX EXEMPTION

It is the responsibility of the cardholder to ensure that sales tax is not charged when making a purchase with the Procurement Card. If you are charged tax in error you must request a credit from the supplier as soon as possible after discovering the error. On the front of your Procurement card is printed: "Florida Tech Tax Exempt 85-8012646509C-2".

The University is usually exempt from ALL sales taxes, even when purchasing items from out-of-state suppliers because the application of sales tax is determined by the location of the buyer, not the seller. If you have an unusual circumstance, such as merchandise shipped directly to someone outside of Florida, please call the Procurement Card Administrator for assistance.

Please contract the Purchasing Office to receive your p-card size laminated certificate of tax exemption. Please present the tax certificate to the vendor before or on the time of purchase.

Contact the Procurement Card Administrator if you need additional assistance at ext.(s) 7366 or 8110.

3.5 LIMITATIONS TO YOUR CARD

The following limitations have been assigned to your Procurement card:

SINGLE PURCHASING LIMIT	FITALLOW - $1499.00 (including shipping, handling, etc.)
SINGLE PURCHASING LIMIT	FITAIRLINE - Open-Ended
SINGLE PURCHASING LIMIT	FITHOTEL - Open-Ended
SINGLE PURCHASING LIMIT	FITCAR - $1499.00
MONTHLY PURCHASE LIMIT	MONTHLY PURCHASE LIMIT
NO. OF TRANS. DAILY LIMIT	UNLIMITED or Set by Department
NO. OF TRANS. MONTHLY LIMIT	UNLIMITED or Set by Department

3.6 LIMITATIONS ON ALL CARDS

Your Procurement card CANNOT be used to purchase the following items:

Alcoholic beverages
NO CAPITAL EQUIPMENT (single items costing $1500 or more)
Cash advances
NO COMPUTERS
No Chemicals/Radioactive Materials
Construction/remodeling
Consultants and speakers fees/honorariums (Contact Payroll for info.)
Controlled substances (prescription drugs, narcotics, etc.)
Donations
Entertainment costs - concerts, tours, etc.
Fines, late fees or penalties
Foreign purchases
Fundraising costs
Personal Gifts
Independent contractors (Contact Payroll for information)
Interest/finance charges
Live animals
Personal purchases (purchases must be for the use and benefit of the University.)
SPLIT TRANSACTION - see definition below
Student events, travel, tuition, scholarships or stipends
Tuition for employees

SPLIT TRANSACTIONS are defined as single items or a shopping cart of items costing more than the cardholder's single purchase limit, which are split among multiple transactions to circumvent the cardholder's defined maximum purchase limit.

3.7 LIMITATIONS ON CAMPUS

No purchases can be made with Florida Tech as the vendor. This includes: all dining facilities, catering services and advertising done on WFIT.

3.8 PURCHASING INITIATIONS

DISCOUNT SUPPLIERS: A list of "discount suppliers" is being developed for this program. The list will only include suppliers who are willing to provide a discount for purchases made using the Procurement Card due to eliminating the invoicing and collections processes. If you frequently purchase items from a supplier and are not currently receiving any discount, please notify Purchasing Department, Shirley Czekanski, ext. 7366.

3.9 AUTOMATIC RENEWAL

A new Procurement card will be mailed directly to you each year at the University address on file in Purchasing. If you do not receive a card before your current one expires call Office of Purchasing at 321-674-8110.

3.10 CHANGING CARD LIMITS & UPDATING CARDHOLDER INFORMATION

The limits on your card, and other information such as card cancellation, department address change, phone number, name of department Reconciler, etc., may be changed by submitting the appropriate "Change" Form (Appendix D).

3.11 CARDHOLDER TRANSFERS WITHIN THE UNIVERSITY

Cardholders, who transfer to a new position within the university and require the use of a procurement card as part of their new duties, will be issued a new card. Cardholders that do not require procurement card in their new position, or transfer into a different department, must cancel their card.

3.12 CARDHOLDER SEPARATION FROM THE UNIVERSITY

Prior to their separation from the university, cardholders must surrender their procurement card to the Procurement Card Administrator in the Purchasing Office. This will be included on Human Resources' exit checklist.

3.13 TERMINATION OF EMPLOYMENT

Your card remains the property of Florida Tech and must be surrendered immediately upon termination of employment, or upon request for any reason by an authorized person (such as your supervisor or the Procurement Card Administrator). Please cut the card into two or three pieces when surrendering it.

4. Travel Agencies

4.1 Reservations and Airline Tickets

Effective May 1, 2004, Florida Tech will no longer have a designed travel agency. University travelers are now responsible for securing the lowest fares possible* using a travel agency** of their choice or Internet sources. A second written quote will no longer be required. be The University's procurement card will be the preferred method of payments. Card limits will be revised to accommodate all airline ticket purchase national and international.

*University approved air travel should be at the most reasonable and economical rate, not first class or business class. All travelers should use the least expensive airfare, including non-refundable and penalty fares, based on a two-hour "window" on either side of their preferred departure times. Airline carrier selection should not be based by the traveler's frequent flyer affiliation. The lowest cost air travel should take precedence.

Travelers are strongly encouraged to book well in advance of travel to secure the lowest fares. In addition, travelers are encouraged to select special or promotional flights that may require significant advance booking, use alternative airports, entail a connection, or feature departure and/or arrival times slightly different than originally specified by the traveler.

**Use of a travel agency is recommended if you have a complex itinerary or group travel.

If you have questions or need additional information, call the Purchasing Office at (321) 674-8110.

5. eMarket Place

5.1 On-Line Purchases

Go to the Purchasing Office website for commodities with contract pricings and the e-Market Place for a list of contract and non-contract suppliers' catalog website links.

6. How to use the Procurement Card

Please note that the cardholder is the only person authorized to make purchases using their card. Giving your card or card number to another person to make a purchase, or sing someone else's card, may result in disciplinary action (including, but not limited to, revocation of your card and/or termination of employment).

The card should be used for all purchases that fall within the procurement card guidelines.

6.1 PURCHASES IN PERSON

A. Follow proper internal procedures specific to your department to obtain authorization to make the purchase.

B. Determine whether the Procurement Card is the most appropriate tool to use for this purchase.

C. Be certain that the total amount (including all shipping, handling, postage, freight, etc.) will not exceed your card's single purchase limit.

D. Determine that the price quoted is the best you can obtain.

E. Ensure that no sales tax is charged.

F. Obtain a receipt at the time of purchase.

G. To Ship Items: Remember to give the supplier your name, building name, department name, floor number, room number, phone number, credit card purchase annotation on box, and complete delivery instructions as follows if you are not picking up the goods:

Recommended method: Have goods shipped directly to Shipping and Receiving via UPS, Federal Express, or other method as suitable for the purchase. Have the supplier mark the package with your name and department name.

H. When receiving the goods, whether via direct delivery or through Property Management , always retain all boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. The cardholder is responsible to inspect the goods upon arrival. Refer to Section 6.4 for instructions about returning an item.

I. Record the purchase on the (e.g. transaction log), and place with the receipt in a secure place.

6.2 PURCHASES BY PHONE, FAX, MAIL OR INTERNET

PHONE

A written record must be made when placing a telephone order. A transaction log is provided in the Appendix H. Store this record with the receipts.

The cardholder is the only person authorized to place the order. You may, when necessary, have someone else pick up the goods (the person picking up the items should only sign shipping or receiving papers, not the credit card slip).

PROCEDURE

Follow the applicable instructions for making purchases in person, including shipping/delivery. In addition:

A. When you call, state that you are calling from Florida Tech and that you will be making your purchase on a VISA Procurement card.

B. Emphasize that the University is exempt from sales tax (see Section 3.3 for additional exemption information).

C. Record the name of the person taking the order, place the order, give the supplier your Procurement Card number and expiration date.

D. Give the supplier your name, department name, phone number and complete delivery instructions (as indicated in previous section).

E. Request that a receipt and/or packing slip be sent with the purchase. Retain this with your record of the purchase.

FAX

Follow the applicable steps in Section 6.1. Retain a copy of the order form and fax confirmation if available) for your records. You are urged not to mail the original to the company, to prevent a duplicate order. If the company requires that the original be sent be sure to clearly mark it "confirmation: an order placed by fax".

MAIL

Follow the applicable steps in section 6.1. Retain a copy of the order form and the address it was mailed to, and request that a receipt be sent to you for your records.

INTERNET

Many companies are offering the option of making purchases via the Web. Procurement Cards may be used to make these types of purchases as long as care is taken in at least these areas:

A. Make sure that the company is a bona fide company (i.e. someone you were doing business with previously that now has a Web page would be a better risk than a company that you "discovered" via the Web, unless this company could be checked out).

B. If supplying your card number via the Internet be sure it is encrypted in an acceptable manner. If the information is not encrypted, or if you are not comfortable giving your card number over the Internet many companies offer the option of placing the order via the Internet and then giving the card number via telephone after the order has been received (preferably you would call them... as anyone could "receive" the order and then call you back for the card number).

C. As with other purchases, the cardholder is ultimately responsible for purchases made with their card and is therefore responsible to determine whether a Web site is the most appropriate method to use to make a given purchase.

D. Also, cardholders must follow any guidelines set within their department for Internet purchases (i.e. some may not allow it, others may allow it only for "approved" companies, etc.).

E. Cardholder is responsible for obtaining receipts. Some recommended ways are:

To print the order or order conformation before submission.
To have vendor fax detailed copy of order.
To have vendor send packing slip and/or receipt with purchase.

Please notify the Purchasing Department Administrator when you begin using a company's Web site so Purchasing can maintain up to date information on Web sites that are available for purchases.

6.3 NO OTHER FORMS TO COMPLETE

When using the Procurement card there is no need to submit any other form. If an unnecessary form such as a Requisition or Check Request is submitted for something bought using a Procurement card and a duplicate shipment is received (or other problems occur) the cardholder is responsible to resolve the ensuing issues.

In cases where the cardholder is responsible for the error they may be required to personally pay for excess charges caused by the duplicate order (including payment of the full order if it cannot be returned, or payment of a restocking fee).

6.4 RETURNS, DAMAGED GOODS, CREDITS

If goods purchased with a Procurement Card need to be returned the cardholder should work directly with the supplier. Here are some tips:

A. Always retain boxes, containers, special packaging, packing slips, etc., until you are certain you are going to keep the goods. Some items, such as software or fragile pieces, cannot be returned without the original packaging materials.

B. Read all enclosed instructions carefully. Often a phone number and other instructions are included on the packing slip and/or receipt.

C. Many suppliers require you to obtain a "Return Authorization Number" before they will accept a return. If you neglect to get this number when it is required the package may be refused and/or no credit issued to your account.

D. In some cases there may be a restocking fee (usually a percentage of he purchase price). If the supplier is completely responsible for the error or problem you should not have to pay this, or any other fee. However if they are not fully responsible you may have to pay it. You may use the Procurement card to pay this fee as long as it does not exceed any of your limits.

E. If you need help in packaging goods for return, limited assistance may be available through the Property Administration department within the University.

F. Lastly, make sure that the charge for the returned items: I ) never appears on your monthly statement or 2) is credited properly.

If this does not happen refer to Section 7, Disputed Transactions for instructions on how to resolve the problem.

7. DISPUTED TRANSACTIONS

7.1 DISPUTE OF STATEMENT ITEM

The cardholder is responsible for contacting and following up with the vendor on any erroneous charges, disputed items or returns as soon as possible. (Most issues can be resolved this way).

If the cardholder is unable to reach agreement with the vendor, the next step is to contact the Purchasing Office at ext. 8110.

The Purchasing Office may request the cardholder to complete a "Statement of Questioned Item" form (Appendix E). Complete form and mail/fax, 888-678-6046, a copy to the bank and campus mail/fax, 321-674-7509, a copy to the Purchasing Office. .

Items that appear on the monthly Procurement card statement from Bank may be disputed, as long as the disputed transaction is reported to Bank within 30 days after the transaction.

Departmentcard discrepancies can not be disputed with the bank.

Disputed billing can result from failure to receive goods or materials, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. In the event of fraud notify the Purchasing Office (ext. 8110) immediately.

Documentation must be kept explaining each credit received for returns or exchanges.

If there is a charge that is not recognized by the cardholder, or another problem, the cardholder should submit a "Statement of Questioned Item" form (Appendix E) to the Purchasing Office. The dispute form will be forwarded to Bank for resolution with the vendor. During Bank's investigation they will issue a credit to the Procurement Card account in question for the disputed amount. When the investigation is complete you will be notified of the resolution. If you are not satisfied with this resolution, please contact the Procurement Card Administrator immediately.

7.2 DISPUTE WITH SUPPLIER

If you have a problem involving a dispute with a supplier (such as you claiming that the item doesn't work and the supplier claiming that it does), and you are unable to obtain satisfaction directly from the supplier, please notify Bank by submitting the "Statement of Questioned Item" form (Appendix E). Also notify the Procurement Card Coordinator. Be sure to describe the problem and all of the efforts you have made thus far in attempting to resolve it. Bank will assist you in every way possible. As stated above, if you are not satisfied with their resolution please contact the Procurement Card Administrator.

8.STATEMENT RECONCILIATION ON BANNER

8.1 Go to Purchasing website P-Card Reconciliation on Banner

It is recommended that each department appoints an Account Manager and Business Manager Coordinator. This will prevent any problems from arising due to the absence of the account manager coordinator.

8.2 WHO CAN APPROVE STATEMENTS

The Budget Manager and the Department Head are to sign off on the paper bank statement, supported by receipts, to show confirmation of approval to charge expenditures to budget.

8.3 AUDITS AND RETENTION OF STATEMENTS & RECEIPTS

The P-Card Administrator and/or Purchasing staff members will do periodic audits of the statements. The Departmental Card Coordinator may be notified in advance of the audit. Reconciled statements and supporting receipts must be available for review by the audit team.

Receipts and statements are to be retained for five (5) years after fiscal year ends in the cardholder's department.