Procurement Card Policies and Procedures

9340.1 Purpose

The university credit card program was established as a service to the university community to allow for a more efficient purchasing process for users.  This program allows for an alternative method for departments/cardholders to purchase and pay for small dollar goods and services and travel-related expenditures.

9340.2 Management of Procurement Cards

Procurement cards have become an important vehicle for university purchases.  They provide a simple method to accomplish small purchases without incurring expensive and time-consuming administrative reviews.  But they also create internal control issues because of the absence of prior reviews.  Business managers within the colleges and divisions, acting under the direction of their dean, vice presidents or vice provosts, are important to the proper administration of the procurement card program.

The deans of each college and the vice presidents or vice provosts of each division are responsible for the proper use of procurement cards within their organizations.  They will require their business managers, who may be responsible for the fiscal affairs of an entire college or division or a significant component, to effectively manage the procurement card program for them.  These managers, working under their guidance and subject to their approval, shall establish a system for the review of procurement card expenditures.  In devising their systems, the business managers will consider whether they will personally review all of the statements in their area of responsibility or will assign a designee to perform reviews for certain groups of statements.  They will also consider how broadly cards should be distributed, recognizing that broad distribution increases the convenience of the card but reduces the business manager’s ability to ensure compliance with university policies.

Each month, the business manager or his/her designee will download information from the Works program to determine the procurement card activity for the previous billing period. This will provide a master list of statements with expenditures for the month that can be used to determine that all statements have been submitted by cardholders for review.  The business manager will arrange to have all statements reviewed on a monthly basis.  They may wish to have statements reviewed both by immediate supervisors (who might be in the best position to determine that an expenditure was authorized) and by someone in a fiscal/administrative role (who might be in a better position to determine compliance with university policies and good business practices.) However, the review is done, it should include a determination that the criteria listed below under "Supervisor's Responsibilities" are met.

9340.3 General Guidelines

All purchases should essentially be used in a manner consistent with the policies and procedures governing Wright State University’s (WSU’s) departmental purchase orders.  They must also comply with all WSU expenditure guidelines (University Policy 9130), purchasing guidelines (University Policy 9320), and travel guidelines (University Policy 9510) and other policies, including policies on rental cars and cell phones.  Knowledge of these guidelines is necessary and expected in order to use the procurement card appropriately.

The Controller’s office shall develop training materials and offer training classes on the use of procurement cards and related matters.

The issuance of multiple cards per individual for the purpose of tracking different types of expense is discontinued in favor of a single card that may be used for any authorized purpose, including travel.

Card usage for any personal expenses is strictly prohibited.

The practice of grouping procurement card transactions to the same vendor, with the sum total exceeding the single transaction card limit of the applicable procurement card (pyramiding), is prohibited.

Please review University Policy 9320 for WSU purchasing policies.

Misuse of the procurement card will result in termination of the card and/or further disciplinary action, for both the cardholder and for any supervisor who approves an inappropriate expenditure.

9340.4 Limitations

Most cards have a monthly credit limit of $5,000 and a single transaction limit of $1,500.  However, single transactions over $1,000 are permitted only for hotel, airline, or conference registration travel expenditures.  All other procurement card transactions are limited to $1,000.  However, if the cardholder’s supervisor/business manager determines lower limits are more appropriate, they may set limits accordingly.  Single transaction limits or monthly credit limits can not be raised without written approval from the Purchasing Department or their designee.

9340.5 How to use WSU's Procurement Card

  • Order Placement

    1. The cardholder will contact a supplier via phone, fax, internet, or in person to purchase the goods/services.  When contacting the vendor, please provide the following information:

      1. Cardholder name, J.P. Morgan Chase purchasing card number, card expiration date, WSU’s tax exempt number 31-0732831.  This information can be found on the front of the card.  If required by the supplier, provide a copy of WSU’s tax exempt certificate.  Contact the Purchasing Department at 775-2411 if a tax exemption certificate is needed.

      2. A complete description of the item including stock/catalog numbers where applicable.

      3. The supplier MUST include the following information on the outside of the package:  Department Name, Building Name and Room Number for delivery purposes.  DO NOT HAVE PACKAGES SENT TO CENTRAL RECEIVING.

      4. After the order is placed, please ask the vendor for an order/reference number.

      5. Cardholders are encouraged to maintain a Purchasing Transaction Log to document purchases (items quantities, order totals, purchase dates, etc.) which will make monthly statement reconciliations easier.

  • Record keeping/Statement reconciliation

    1. At the end of each billing cycle, the cardholder will receive a memo statement from J.P. Morgan Chase of the month’s purchases.

      1. This memo statement is NOT an invoice for the cardholder to pay. The Office of the Bursar will pay J.P. Morgan Chase directly.

      2. The card holder should match the receipts and/or packing slips to the statement, to ensure the accuracy of the statement.  Once all information is reconciled, the cardholder should sign and date the statement and forward all the information to their supervisor for review and approval.  This review should be done promptly to ensure that errors can be disputed or credits claimed within the allowable period. The supervisor should then sign and date the statement.

      3. It is important to remember that each card user and any supervisor who approves an expenditure are all responsible for the validity of the purchases.

    2. All documents including the sales receipts and/or packing slips and all reconciled and approved statements will be retained by the ordering department in a secure location with limited access, and is subject to periodic review by the Office of the Controller and the Office of University Audit and Consulting Services.  The retention period for charges made to grant funds is 6 years.  The retention period for all other funds and organizations is 4 years.

  • Returns, Credits, and Disputed Items

    1. Returns:  If the purchased item needs to be returned for any reason, returns should be processed in the normal manner.

    2. Credits:  The supplier should issue a credit for any item that has been returned.  The cardholder is expected to follow-up until the appropriate credit appears on their account statement.

    3. Disputed Items:  If there are any discrepancies, the cardholder should first contact the supplier to resolve the problem.  If the discrepancy cannot be resolved with the supplier, contact J.P. Morgan Chase using the 800-270-7760 number found on the back of the card. J.P. Morgan Chase may request that the dispute be documented in writing using the dispute form on the back of the monthly statement.  WSU only has 60 days from the statement date to dispute a charge.  If the dispute is not resolved completely, the cardholder should contact the Procurement Card Administrator (PCA) in the Office of the Controller.

  • Procurement Card Security

    The WSU Purchasing Card should be treated with the same level of care as a personal charge card.  Storage of the card should be in a secure location, accessible to only the cardholder.  The card account number should be secured and not posted at a desk or any other location.  Use of the card by anyone other than the person whose name appears on the card is prohibited.  Certain cards are designated as departmental cards.  The name of a unit or function rather than of an individual appears on the card.  Such cards may be used by any authorized person.

    1. The procurement card is the responsibility of the person whose name appears on it and should not be given to anyone else.  (This does not apply to departmental cards, which are intended to be used by multiple persons for the purpose or unit specified on the card.  But the custodian of a departmental card has a special responsibility to keep a record of those who were given the card and the purpose for be which it was given, so that responsibility for all purchases from the card can be determined.)  If the cardholder is going to be absent for an extended period of time, the Supervisor may request that a new card be issued to a different person for the duration of the absence.  The Supervisor must direct the request to the Purchasing Card Administrator (PCA).

    2. The cardholder, whose name appears on the card, may make purchases for any employee within the department, if approved by the cardholder’s Supervisor.

    3. Statements and related receipts being discarded after the retention period should be shredded or otherwise destroyed.

  • Sales Tax Procedures

    All WSU purchases are exempt from Ohio sales tax.  WSU’s tax exempt number is 31-0732831.  If Ohio sales tax was charged, the cardholder should contact the supplier for a credit, however the cardholder must contact the supplier for all single sales tax errors in excess of $5.00 or a summarization of errors in excess of $5.00 in a single billing statement. Sales tax charged on overnight travel transactions outside the State of Ohio is allowable.  The supplier may request a sales tax exemption certificate.  These are available at WSU’s Purchasing Department web page or call 775-2411.

  • Additional Cardholder Responsibilities

    The cardholder should review the procurement card statement from J.P. Morgan Chase to ensure that all transactions were initiated, approved and the merchandise was received and or a service was performed.  It is the responsibility of each cardholder to ensure that any credits due from suppliers were received. (Note: a credit may not appear immediately on the statement; it may appear on the next statement that is received.  The cardholder is expected to follow-up until the credit is received.) Receipts and memo statements must be maintained in the ordering department.  The PCA should be notified IMMEDIATELY if there are any exceptions or discrepancies.

  • Supervisor’s Responsibilities

    Supervisors will identify employees as candidates for WSU procurement card by requesting a Procurement Card Cardholder Implementation Form from the PCA.  The form must be submitted to the PCA for approval. Once approved by the PCA, both the cardholder and the supervisor (unless previously trained on the use of the procurement card within the last four years) must attend procurement card training before the card will be issued.  Cardholders and supervisors will be required to attend training at least once during the two year period.

    Each month the supervisor should expect to receive (unless there were no transactions) a procurement card statement with attached receipts and the supporting documentation, reconciled, signed, and dated by the cardholder.  The supervisor should review the statement for propriety, and sign and date it as well.  The supervisor should consider questions such as the following:

    1. Do all transactions adhere to all WSU policies and procedures?

    2. Was the expenditure for a reasonable business purpose?

    3. Did the cardholder initiate and approve the transaction?

    4. Was the merchandise received or was the service performed?

    5. Is the charge being recorded to the proper fund/org./account/program?

    6. Did the cardholder maintain the detailed receipt and/or receiving document? Is it attached to the statement?

    7. If credits were due or errors made, were they received or corrected?

    8. Were expenditures above the limit not artificially divided into a series of small expenditures?

    9. Was Ohio sales tax inappropriately paid?

    10. If charged to a grant, was the expenditure allowed against the grant?

    11. If the expenditure was travel related, was it also appropriately included as a prepaid item and not inadvertently claimed for reimbursement on the travel expense report?

    12. If an item was shipped, was it shipped to a Wright State University address?

    13. If an expenditure involved the purchase of alcoholic beverages, did the purchases reimburse the university unless the purchase was allowed by WWP 5301, paragraph 5301.2?

    The PCA must be notified IMMEDIATELY if there are any unreconciled discrepancies, or if there are any changes in employee status (employee leaving the University, employee changing departments, etc.).

9340.6 Centralized Review of Procurement Card Records

The Office of the Controller, with the support of University Audit and Consulting Services, shall periodically review the administration of the procurement card program by college and division business managers.  The review will determine whether the business manager has ensured that all statements have been reviewed by supervisors, that receipts and other required documentation are attached, that expenditures are for an appropriate business purpose and in compliance with University policies, and that instances of noncompliance have been identified and corrected.  A report summarizing the results of these reviews will be provided to the business manager.  Within 30 days, the business manager will provide the Controller’s office with comments on the review, including any corrective action taken. Copies of the report, with business manager comments, will be provided to the appropriate dean or vice president, as well as to the Provost and the Vice President for Finance and Operations.