Procurement Card Program Policies and Procedures

The purpose of the Simpson College Procurement Card is to establish an efficient, cost-effective method of purchasing and paying for small dollar transactions, meals, and travel related expenses. The program is designed to replace purchase orders for these transactions and reduce use of petty cash or reimbursement for personal funds expended.

1) Issuance of Card

The Procurement Card is issued by Simpson College in coordination with MBNA America. The card bears the Simpson College logo, the College’s Iowa sales tax exempt number, and the Cardholder’s name and identifying account number. The security code is the last three digits in the signature box on the reverse side of the card.

Prospective Cardholders must complete a Simpson College Procurement Card Agreement, obtain appropriate Department Head and Cabinet Officer approval, and return the completed Agreement to Procurement Services before the Procurement Card can be ordered. All Cardholders must be a Simpson College faculty or staff member.

Approved Cardholders must attend a training session to pick up the Procurement Card in person and sign the back of the card upon receipt. Each Cardholder is responsible for:

  Security of the card,
  Appropriate use of the card,
  Compliance with procedures for this program, and
  Maintaining a transaction log, obtaining receipts, and monthly reconciliation of charges.

2) Use of Card

The procurement card may be used to purchase items via telephone, in person, or Internet. If the Internet is the best source for ordering, the Cardholder is responsible for determining the security of the site, which will have "https" in the address. When placing an order, give the sales tax exempt number and request that the order be tax exempt; give explicit shipping instructions, including name and department; and either ask for a receipt for documentation purposes to be sent directly to the Cardholder or print a copy of the Internet order. For security reasons, care should be taken that others do not overhear or view the card information. Do not fax credit card numbers to anyone.

The transaction dollar limit, including shipping and handling, shall be determined by the department chairperson. The monthly credit limit will be negotiated between the department head and Procurement Services. Purchases exceeding the transaction limit or monthly credit limit will be denied at the point of sale.

When a procurement card is to be used for group travel or a group event, the cardholder is responsible for contacting Procurement Services in advance to arrange for adequate transaction and credit limits.

The following charges are not allowed:

· Employee consumed alcoholic beverages

· Cash advances

· Controlled substances, prescription drugs, narcotics

· Furniture/furnishings

· Hazardous products

· Leases

· Maintenance agreements

· Personal items

· Sales tax

· Services or goods from non-incorporated individuals

· Splitting purchases to circumvent the transaction limit

· Telephones, fax machines, or related equipment or services

3) Tax Exemption

The Cardholder is responsible for ensuring all purchases are exempt from sales tax. The College’s Iowa sales tax exempt number is printed on each procurement card, and the Cardholder is responsible for ensuring that sales tax is not charged at the time of purchase. If sales tax is charged in error, the Cardholder is responsible for contacting the vendor and requesting a credit back to the procurement card. A copy of the Iowa Sales Tax Exemption Certificate is available from Accounts Payable. Contact the Assistant Controller (X1398) about sales tax exemption in states other than Iowa.

All meals catered or planned in advance must be tax exempt. Tax exemption on other meals should be requested when the order is placed, but it is not required.

Wal-Mart requires a gray identification card be presented prior to scanning any items so the order will be sales tax exempt. Wal-Mart I.D. cards are available from Procurement Services.

4) Dates and Deadlines

Statement cutoff date is the 24th of the month (monthly credit limits are refreshed the next business day).

The MBNA MasterCard Statement will be mailed to each Cardholder as soon as possible after the cutoff date.

The transaction log with Cardholder’s signature and supervisor’s approval must be received by Deb White in the Business Office by the 10th of the following month. Deb White is responsible for auditing the receipts and entering the journal entry to charge the general ledger accounts.

5) Transaction Log and Receipts

Each purchase must be entered on a monthly Procurement Card Transaction Log and the general ledger account number for each purchase should be entered in the right hand column of the form.

It is the responsibility of the Cardholder to obtain an original receipt (cash register tape, paid invoice, restaurant ticket, or copy of Internet order) as documentation for every purchase. The receipt must include:

  Purchase date
  Vendor name
  Transaction amount
  Itemized description of item(s) purchased and associated pricing (note that the term “misc. items” is not adequate documentation)

Receipts for meals must include the original charge card receipt AND the itemized restaurant ticket showing the food/beverage purchased. If meals for other individuals are included in the total to be charged to the College, staple the receipt to a sheet of paper and give their names and relationship to Simpson as well as the business purpose of the meal.

6) Procedures for Reconciliation of Monthly Statement

MBNA will send a monthly statement directly to the Cardholder at the beginning of each month. The statement shows Cardholder name, MasterCard account number, billing period dates and all charges for that billing period.

The Cardholder has the following reconciliation responsibilities:

Reconcile the transaction log and receipts to the statement.

Verify that the general ledger account numbers are correct. Enter the total dollar amounts for each account number in the reconciliation box at the bottom of the form. The total for all account numbers must equal the statement total.

Staple documents in the following order:

MBNA MasterCard statement
Approved Transaction Log
Original receipts (as charges appear on statement)
Copy of any pending Cardholder Dispute Forms

If sales tax has been charged, the Cardholder is responsible for contacting the vendor to request credit. The wrongfully charged tax will be charged to the department for the current period. The tax should be reversed once the credit appears on the statement.

After the Cardholder verifies the Transaction Log for accuracy, the Cardholder must sign it and forward it with attachments to his/her supervisor who either approves or denies the request for payment.

If payment is approved, the supervisor signs the log and forwards the documents to Deb White in the Business Office by the 10th day of the month.

If payment is denied, the Supervisor must contact Procurement Services by the 10th day of the month to review circumstances and resolve issues

7) Disputed Items

Dispute resolution shall be initiated by the Cardholder WITHIN 60 DAYS in one of the following ways:

1. Call the vendor where disputed transaction occurred OR

2. Call the customer service number on the reverse side of the procurement card (800 673-1044) OR

3.  Complete the Dispute Form on the reverse side of the   MBNA MasterCard Statement, make a copy and sign the copy, and then mail the signed copy (not the original statement) to the address indicated. The Cardholder should keep a copy until the dispute is resolved.

Procurement Services will assist in handling disputed items if requested.

8) How to Monitor Your Account

A Cardholder can monitor the account activity online at any time by following the steps listed below:

Access the following website - https://www.wachoviacards.com/

Click on “Enroll” and follow the prompts

Notes: 1) Names cannot have spaces and 2) Social security numbers are not in the MBNA database; therefore, leave this field blank.

If a charge is not legitimate, contact MBNA (800 673-1044) and begin the dispute process or contact Procurement Services.

9) Procurement Card Check-out Procedures

Cardholders are allowed to check out their procurement card to students or other employees who do not have a card to make local purchases in person. Both the Cardholder and the person using the card must sign a Procurement Card Check-Out Authorization Form.

Cards cannot be permanently issued to or kept in the possession of students.

The Cardholder is responsible for all transactions on the card and for monitoring its activity.

All purchases are to be for business-related purposes; personal use of the card is strictly prohibited.

This card checkout procedure will allow students to make local purchases in person – no phone, fax or internet purchasing by students is permitted.

The person checking out the card must take the Authorization Form to the vendor when making the purchase, which allows signature verification of both the Cardholder and the student. It also sets a limit for the maximum dollar amount to be purchased.

The signed receipt and the credit card must be returned to the Cardholder the same day as the purchase. The receipt must show the account number for departmental use or the name of program/organization and event for student use.

The Cardholder must reconcile all charges on the monthly statement with the transaction log and receipt for each purchase. The Supervisor must approve each monthly transaction log.

10) Lost, Stolen or Misplaced Cards or Suspected Fraud

If a card is lost, stolen or misplaced, or if fraud is suspected, the Cardholder must immediately call MBNA at (800) 673-1044 and call Procurement Services.

Should MBNA detect a fraud attempt on an account, MBNA will put a caution flag on the account, put it in a suspended status, and stop charges on the card. If charges are denied at the point of sale, call the toll free Customer Service number on the back of the card and ask for assistance in putting the transaction through. The Cardholder should then contact Procurement Services so the card can be canceled and a new one issued.

11) Procurement Card Program Violations

The Cardholder is responsible for and accountable to Simpson College for all charges made with his or her procurement card and for obtaining receipts for all charges. The Cardholder is strictly prohibited from using his or her procurement card for personal use.

Examples of violations include:

Purchases attempted outside of a Cardholder’s pre-defined spending parameters
Non-business related purchases
Splitting purchases to circumvent transaction limits
Inadequate, incomplete or otherwise unacceptable documentation
Late submission of payment reconciliation and approval

Repeated violations may result in notification to supervisor or loss of procurement card privileges and could lead to additional disciplinary action including termination of employment.

12) Cancellation of Card

Cards must be immediately canceled if the Cardholder terminates employment or assumes duties that do not require use of a procurement card. To cancel a card:

Cut the card in half and return it to Procurement Services.

Notify Procurement Services in writing. Procurement Services will cancel the card with MBNA.

13) Inquiries or Assistance

For inquires or assistance from Procurement Services, call Marilyn Leek, Director of Procurement, (X1675) who is the Procurement Card Administrator. In her absence, please contact Cathy Hoch, Assistant Controller (X1398).

Approved by Cabinet August 31, 2006
Implemetation Date: October 1, 2006


	Purchasing Information Procurement Card Information Other Budget & Travel Policies Forms
Procurement Card Program Policies and Procedures The purpose of the Simpson College Procurement Card is to establish an efficient, cost-effective method of purchasing and paying for small dollar transactions, meals, and travel related expenses. The program is designed to replace purchase orders for these transactions and reduce use of petty cash or reimbursement for personal funds expended. 1) Issuance of Card The Procurement Card is issued by Simpson College in coordination with MBNA America. The card bears the Simpson College logo, the College’s Iowa sales tax exempt number, and the Cardholder’s name and identifying account number. The security code is the last three digits in the signature box on the reverse side of the card. Prospective Cardholders must complete a Simpson College Procurement Card Agreement, obtain appropriate Department Head and Cabinet Officer approval, and return the completed Agreement to Procurement Services before the Procurement Card can be ordered. All Cardholders must be a Simpson College faculty or staff member. Approved Cardholders must attend a training session to pick up the Procurement Card in person and sign the back of the card upon receipt. Each Cardholder is responsible for: Security of the card, Appropriate use of the card, Compliance with procedures for this program, and Maintaining a transaction log, obtaining receipts, and monthly reconciliation of charges. 2) Use of Card The procurement card may be used to purchase items via telephone, in person, or Internet. If the Internet is the best source for ordering, the Cardholder is responsible for determining the security of the site, which will have "https" in the address. When placing an order, give the sales tax exempt number and request that the order be tax exempt; give explicit shipping instructions, including name and department; and either ask for a receipt for documentation purposes to be sent directly to the Cardholder or print a copy of the Internet order. For security reasons, care should be taken that others do not overhear or view the card information. Do not fax credit card numbers to anyone. The transaction dollar limit, including shipping and handling, shall be determined by the department chairperson. The monthly credit limit will be negotiated between the department head and Procurement Services. Purchases exceeding the transaction limit or monthly credit limit will be denied at the point of sale. When a procurement card is to be used for group travel or a group event, the cardholder is responsible for contacting Procurement Services in advance to arrange for adequate transaction and credit limits. The following charges are not allowed: · Employee consumed alcoholic beverages · Cash advances · Controlled substances, prescription drugs, narcotics · Furniture/furnishings · Hazardous products · Leases · Maintenance agreements · Personal items · Sales tax · Services or goods from non-incorporated individuals · Splitting purchases to circumvent the transaction limit · Telephones, fax machines, or related equipment or services 3) Tax Exemption The Cardholder is responsible for ensuring all purchases are exempt from sales tax. The College’s Iowa sales tax exempt number is printed on each procurement card, and the Cardholder is responsible for ensuring that sales tax is not charged at the time of purchase. If sales tax is charged in error, the Cardholder is responsible for contacting the vendor and requesting a credit back to the procurement card. A copy of the Iowa Sales Tax Exemption Certificate is available from Accounts Payable. Contact the Assistant Controller (X1398) about sales tax exemption in states other than Iowa. All meals catered or planned in advance must be tax exempt. Tax exemption on other meals should be requested when the order is placed, but it is not required. Wal-Mart requires a gray identification card be presented prior to scanning any items so the order will be sales tax exempt. Wal-Mart I.D. cards are available from Procurement Services. 4) Dates and Deadlines Statement cutoff date is the 24th of the month (monthly credit limits are refreshed the next business day). The MBNA MasterCard Statement will be mailed to each Cardholder as soon as possible after the cutoff date. The transaction log with Cardholder’s signature and supervisor’s approval must be received by Deb White in the Business Office by the 10th of the following month. Deb White is responsible for auditing the receipts and entering the journal entry to charge the general ledger accounts. 5) Transaction Log and Receipts Each purchase must be entered on a monthly Procurement Card Transaction Log and the general ledger account number for each purchase should be entered in the right hand column of the form. It is the responsibility of the Cardholder to obtain an original receipt (cash register tape, paid invoice, restaurant ticket, or copy of Internet order) as documentation for every purchase. The receipt must include: Purchase date Vendor name Transaction amount Itemized description of item(s) purchased and associated pricing (note that the term “misc. items” is not adequate documentation) Receipts for meals must include the original charge card receipt AND the itemized restaurant ticket showing the food/beverage purchased. If meals for other individuals are included in the total to be charged to the College, staple the receipt to a sheet of paper and give their names and relationship to Simpson as well as the business purpose of the meal. 6) Procedures for Reconciliation of Monthly Statement MBNA will send a monthly statement directly to the Cardholder at the beginning of each month. The statement shows Cardholder name, MasterCard account number, billing period dates and all charges for that billing period. The Cardholder has the following reconciliation responsibilities: Reconcile the transaction log and receipts to the statement. Verify that the general ledger account numbers are correct. Enter the total dollar amounts for each account number in the reconciliation box at the bottom of the form. The total for all account numbers must equal the statement total. Staple documents in the following order: MBNA MasterCard statement Approved Transaction Log Original receipts (as charges appear on statement) Copy of any pending Cardholder Dispute Forms If sales tax has been charged, the Cardholder is responsible for contacting the vendor to request credit. The wrongfully charged tax will be charged to the department for the current period. The tax should be reversed once the credit appears on the statement. After the Cardholder verifies the Transaction Log for accuracy, the Cardholder must sign it and forward it with attachments to his/her supervisor who either approves or denies the request for payment. If payment is approved, the supervisor signs the log and forwards the documents to Deb White in the Business Office by the 10th day of the month. If payment is denied, the Supervisor must contact Procurement Services by the 10th day of the month to review circumstances and resolve issues 7) Disputed Items Dispute resolution shall be initiated by the Cardholder WITHIN 60 DAYS in one of the following ways: 1. Call the vendor where disputed transaction occurred OR 2. Call the customer service number on the reverse side of the procurement card (800 673-1044) OR 3. Complete the Dispute Form on the reverse side of the MBNA MasterCard Statement, make a copy and sign the copy, and then mail the signed copy (not the original statement) to the address indicated. The Cardholder should keep a copy until the dispute is resolved. Procurement Services will assist in handling disputed items if requested. 8) How to Monitor Your Account A Cardholder can monitor the account activity online at any time by following the steps listed below: Access the following website - https://www.wachoviacards.com/ Click on “Enroll” and follow the prompts Notes: 1) Names cannot have spaces and 2) Social security numbers are not in the MBNA database; therefore, leave this field blank. If a charge is not legitimate, contact MBNA (800 673-1044) and begin the dispute process or contact Procurement Services. 9) Procurement Card Check-out Procedures Cardholders are allowed to check out their procurement card to students or other employees who do not have a card to make local purchases in person. Both the Cardholder and the person using the card must sign a Procurement Card Check-Out Authorization Form. Cards cannot be permanently issued to or kept in the possession of students. The Cardholder is responsible for all transactions on the card and for monitoring its activity. All purchases are to be for business-related purposes; personal use of the card is strictly prohibited. This card checkout procedure will allow students to make local purchases in person – no phone, fax or internet purchasing by students is permitted. The person checking out the card must take the Authorization Form to the vendor when making the purchase, which allows signature verification of both the Cardholder and the student. It also sets a limit for the maximum dollar amount to be purchased. The signed receipt and the credit card must be returned to the Cardholder the same day as the purchase. The receipt must show the account number for departmental use or the name of program/organization and event for student use. The Cardholder must reconcile all charges on the monthly statement with the transaction log and receipt for each purchase. The Supervisor must approve each monthly transaction log. 10) Lost, Stolen or Misplaced Cards or Suspected Fraud If a card is lost, stolen or misplaced, or if fraud is suspected, the Cardholder must immediately call MBNA at (800) 673-1044 and call Procurement Services. Should MBNA detect a fraud attempt on an account, MBNA will put a caution flag on the account, put it in a suspended status, and stop charges on the card. If charges are denied at the point of sale, call the toll free Customer Service number on the back of the card and ask for assistance in putting the transaction through. The Cardholder should then contact Procurement Services so the card can be canceled and a new one issued. 11) Procurement Card Program Violations The Cardholder is responsible for and accountable to Simpson College for all charges made with his or her procurement card and for obtaining receipts for all charges. The Cardholder is strictly prohibited from using his or her procurement card for personal use. Examples of violations include: Purchases attempted outside of a Cardholder’s pre-defined spending parameters Non-business related purchases Splitting purchases to circumvent transaction limits Inadequate, incomplete or otherwise unacceptable documentation Late submission of payment reconciliation and approval Repeated violations may result in notification to supervisor or loss of procurement card privileges and could lead to additional disciplinary action including termination of employment. 12) Cancellation of Card Cards must be immediately canceled if the Cardholder terminates employment or assumes duties that do not require use of a procurement card. To cancel a card: Cut the card in half and return it to Procurement Services. Notify Procurement Services in writing. Procurement Services will cancel the card with MBNA. 13) Inquiries or Assistance For inquires or assistance from Procurement Services, call Marilyn Leek, Director of Procurement, (X1675) who is the Procurement Card Administrator. In her absence, please contact Cathy Hoch, Assistant Controller (X1398). Approved by Cabinet August 31, 2006 Implemetation Date: October 1, 2006
About Simpson \| Admissions \| Evening, Weekend & Graduate Programs \| Academics \| Alumni Athletics \| Arts & Forum \| Campus & Community \| Student Life \| Support Simpson Simpson.edu \| Site Map \| Contact Us © Copyright 2008 Simpson College Last Updated: 11/1/06	SEARCH: