The Purchasing Card program was established to
provide a more efficient and cost-effective method for purchasing and paying
for small dollar transactions, high-volume transactions, and repetitive
purchases. The Purchasing Card replaces the traditional process of requisition,
purchase order, delivery, invoicing, accounts payable review, and disbursement
of check on certain transactions of $2,500 or less.
The card is a privilege extended to Tulane faculty
and staff (except student employees) and must be used in a responsible and
appropriate manner. Fraudulent or
intentional misuse of the card will result in revocation of the card, personnel
actions against the Cardholder, and/or possible criminal charges. Routine
audits of Cardholder's transaction files and monthly summaries will be
conducted by Tulane University's Office of Internal Auditing.
Each prospective Cardholder will be required to
sign the Purchasing Card Employee Agreement indicating that he understands the
policies, procedures, and responsibilities of a Cardholder.
The Purchasing Card Administrator will maintain
records of Purchasing Card requests, dollar limits, Cardholder transfers, and
lost/stolen/destroyed card information.
The Cardholder will receive a Purchasing Card with
his/her name embossed on it, and the card should only be used by the
Cardholder. No other person is authorized to use that card. The Cardholder may
initiate transactions on behalf of others in his/her department; however, the
Cardholder is responsible for all use on his/her card. The Cardholder is required to sign the back
of the card.
Examples of typical purchasing card purchases -----
include: books, periodicals,
subscriptions, newsletters, audio and video tapes, conferences and seminar
registration fees, photo processing, art, and office supplies. It is the Cardholder's
responsibility to be aware of departmental rules and guidelines and to make
only appropriate purchases. Purchases related to sponsored projects are not
authorized at this time. Cardholders
will be notified when these charges are allowed.
Use of the Purchasing Card will be limited to the
following conditions:
A.
Departments will assign a single transaction limit
to each Purchasing Card account. A
maximum amount of $2,500 has been established to avoid the purchase of capital
equipment. A transaction is defined as the invoice total for all items ordered
and delivered. A purchase cannot be split into multiple transactions to stay
within the single transaction limit established for that account. This is expressly prohibited.
B.
A monthly spending limit, not to exceed 25% of the annual
supplies budget for each account authorized for use, will apply to each
Purchasing Card. The purpose of this
limit is to minimize the amount of charges that may occur if a card is lost or
stolen.
C. Tulane University is exempt from local and
State of Louisiana sales tax.
Documentation confirming Tulane’s exemptions can be obtained by
contacting the Accounts Payable at 865-5824 or rpaige1@tulane.edu . The Cardholder must
inform the supplier that the goods are not subject to sales taxes and confirm
that no sales taxes are charged before authorizing the transaction.
Transactions with certain types of merchants are
blocked from use with the Purchasing Card.
These merchants operate businesses that generally provide goods or
services that are not allowed on the Purchasing Card. The following is a list of categories of expenditures that are
prohibited. Also listed below are the
categories of merchants/businesses that have been blocked. If a transaction is attempted for one of the
following categories of expenditures or merchants, or if the transaction
exceeds the transaction limit, the vendor cannot accept the card since the
transaction will be declined through the point of sale authorization process.
Prohibited Expenditures:
A.
Alcohol
B.
Animals
C.
Business meals (entertainment)
D.
Capital equipment (items of equipment with cost
greater than $2,500)
E.
Cash advances or cash instruments
F.
Chemicals
G.
Consulting or personal services
H.
Controlled substances
I.
Cylinder gases
J.
Fines, penalties, or other similar fees
K.
Gasoline
L.
Hazardous and/or radioactive materials
M.
Honoraria
N.
Leases
O.
Maintenance agreements
P.
Non-University purchases
Q.
Personal purchases
R.
Recreation
S.
Travel-related expenses (excluding conference
registrations which are allowed)
T.
Utilities
Blocked Merchants.
A.
Airlines
B.
Amusement and
Entertainment
C.
Automobile Rentals
D.
Clothing Stores
E.
Hotels and Motels
F.
Personal Service Providers ( Laundries, Barbers,
Health Spa, etc.)
G.
Consultants & Professional Service Providers (
Medical, Education, Accounting, etc.)
H.
Service Providers ( Banks, Securities, Insurance,
Resorts/Campgrounds, etc. )
I.
Utilities
J.
Various Miscellaneous Stores
K.
Most Transportation-related Providers
The Purchasing Card must never be used to purchase
items for personal or non-University purposes even if the Cardholder intends to
reimburse the University.
A Cardholder who makes an unauthorized purchase or uses the Purchasing Card in an inappropriate manner will be subject to disciplinary action including, but not limited to, possible card cancellation, termination of employment at Tulane University, and criminal prosecution.
When making a Purchasing Card purchase, the
Cardholder will take reasonable steps to obtain the best price. The Cardholder
should purchase from merchants commonly used by Tulane whenever possible to
take advantage of pricing and terms negotiated on a University-wide basis.
A list of these merchants can be found in the
Purchasing Card Administration Website.
A cardholder will use the following checklist when
making a purchase.
A. Solicit an adequate
number of sources to assure the best price, quality, and delivery.
B. Confirm that the selected
merchant accepts VISA. If not, choose another vendor or submit a requisition to
the Purchasing Department so that the purchase can be made via a Purchase
Order. Inform the Purchasing Card
Administrator of the merchant that did not accept VISA if it is anticipated
that there will be future needs to use this merchant.
C. Inform the supplier
that the purchase is for Tulane University and is sales tax exempt.
D. When making purchases
in person, the Cardholder must sign the charge receipt and retain the customer
copy.
E. When making purchases
via telephone, internet, mail order, etc., Cardholders should give the merchant
the account number embossed on their card and direct the merchant to include
the following on the shipping label and/or packing slip:
Cardholder name and
campus phone number
Department name
Complete campus delivery address including building
name and room number
The
words "Purchasing Card Purchase"
The
merchant’s order number
If the items are being shipped to a Receiving
department, the Cardholder should notify that department in advance. Regardless of who receives the shipment, the
Cardholder is responsible for obtaining all documentation (packing slips, mail
order form copies, etc.) related to the purchase.
All computer purchases must be reported to Moveable
Property Management so they can be added to the University’s property
records. This required notification
could be accomplished by e-mailing to
scordes@tulane.edu the following
information: department name, name of user, location of equipment, and the
manufacturer, model, and serial number.
An alternative method
would be to fax the above information, along with the invoice of the
equipment purchased, to 862-8261.
Each department must retain documentation for all
purchases made with Purchasing Cards .
This documentation will be used to reconcile the purchases listed on the
Cardholder's on-line report of monthly activity.
A. When a purchase is
made in person, the Cardholder will retain the invoice and customer copy of the
charge receipt. The Cardholder is responsible for checking that the supplier lists
the quantity and full descriptions of the item(s), and that sales taxes are
excluded before signing the charge slip.
B. When making a purchase
via telephone, internet, or mail order, the Cardholder must request that a
receipt or confirmation of the order be mailed directly to the Cardholder (not
Accounts Payable or Purchasing).
The Cardholder should always obtain and document the name of the
individual who took the order. The
Cardholder should retain all shipping documentation.
C. Department heads are
encouraged to have their Cardholders complete a Purchasing Card Transaction Log
to assist in the account reconciliation.
D. Cardholders must
maintain documentation in a manner that will allow an auditor to quickly and
easily review the records. Cardholders
must file documentation by month in clearly marked files. Each file should contain a printed copy of
the monthly activity, the transaction log, and the receipts and other
documentation. Documentation that is
not properly filed or organized may result in an audit finding.
If any purchases have been made on a card, the
Cardholder will receive an e-mail notification that there are transactions to
review. It is the cardholder’s responsibility
to review and reconcile the monthly activity to the transaction log and the
original receipts. Transactions will be posted on the Paymentech PaymentNet
Website. A Cardholder’s User ID and
password is required for access to these transactions. A link to this site is located on the
Purchasing Card Administration Home Page.
Each card has a single general ledger account hard
coded into its accounting code line.
This default account number can be changed to a
different account number if it has been authorized for use on the Cardholder’s
application and is appropriate for the transaction. A natural account code will be assigned to each transaction and
can be changed to reflect the correct classification of the specific expense
incurred. Charges can be viewed 2 to 3 days after the charge is made and
reallocation (coding ) adjustments
should be done as soon as the transaction is available. Reallocations are allowed up to the close of
the billing cycle.
Every Purchasing Card account must be approved each
month prior to posting to the general ledger and payment being made to First
USA. The department’s designated
approver of the monthly activity on that account is responsible for the timely
review and approval of each transaction by the cardholder. This required review and approval will be
monitored monthly for compliance.
As noted in Section VI, this monthly activity
report must be included in the documentation maintained by the department.
The Cardholder is responsible for contacting the
merchant when items purchased with the Purchasing Card are not acceptable
(incorrect, damaged, defective, etc.) and arranging a return for credit or an
exchange. Receiving cash, checks, or a store credit for future purchases to
resolve a return is prohibited.
The Cardholder is responsible for obtaining a
credit on the Purchasing Card account for any returns and retaining the credit
receipt with the supporting documentation for that purchase. The Cardholder should confirm that the
credit is recorded in the next month’s card activity.
If merchandise is to be exchanged, the Cardholder
is responsible for returning the merchandise to the merchant and obtaining a
replacement as soon as possible. Documentation showing the proper resolution of
the exchange is to be retained with the supporting documentation for that
purchase.
In the case of a disputed
charge, the Cardholder must try to resolve the dispute directly with the
merchant. If the dispute cannot be
resolved, the Cardholder must complete a Cardholder Dispute Form within 60 days
of the date of the disputed charge.
This form is available in the PaymentNet Web site. The completed
form should be sent electronically to First USA through the on-line
system. A copy should be sent to the
Purchasing Card Administrator.
X. Purchasing Card Security
The Cardholder must not allow anyone to use his/her
card account number. A violation of this trust will result in card revocation
and disciplinary action.
If the Purchasing Card is lost or stolen, the
Cardholder shall immediately notify First USA at 1-800- 270-7760 and advise the
Purchasing Card Administrator of this notification.
A new Purchasing Card will be promptly issued to
the Cardholder after the reported loss or theft. A card that is subsequently
found by the Cardholder after being reported lost or stolen must be cut in half
and forwarded to the Purchasing Card Administrator.
The Tulane University Office of Internal Auditing
will perform routine audits of purchasing card transactions. Such audits will be designed to verify that
card transactions are authorized and appropriate and to verify that required
documentation has been properly accumulated, approved, and filed.
In the event of an audit finding, the following
actions, depending on the severity of the finding, may be taken:
A.
Warning letter issued to cardholder and department
head
B.
Card use suspended for 3 months
C.
Card use terminated
D.
Employment terminated
E.
Criminal prosecution
In addition, if misuse of the card is detected, the
employee’s department will be responsible for the charges in question. The Purchasing Card Administrator will
automatically transfer these charges to the department’s general ledger
account. Reimbursement by the
Cardholder to the University for unauthorized charges may also be required.
XII.
Conclusion
This program is designed to provide user-friendly
purchasing and payment tools so that Tulane’s personnel can quickly and efficiently
order and receive goods and complete effective accounting and settlement
processes. The program does include the
controls and features needed to ensure that these resources are used properly.
The Purchasing Card program minimizes the number of manual tasks required to
complete the order and settle the transaction.
Program success is contingent on departmental compliance with approved
procedures and guidelines.