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DIVISION OF FINANCE

Committed to Service Excellence

Payment Card Approval ProcedureStep 1. Bookkeeper gets receipts from cardholder &

reallocates transactions in CitiDirectStep 2. Bookkeeper runs the Expense Report in CitiDirect

and reconciles receipts to the report Step 3. Cardholder reviews and approves Expense Report (this is

considered a best practice, but is not required.)Step 4. Department approver reviews and approves

Expense Report Step 5. (State funded transactions only) Bookkeeper

submits supporting documentation to FMO for auditStep 6. Bookkeeper reconciles Expense Report with

FAMIS statement and then retain records according to retention schedule

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Step 1 Bookkeeper gets receipts from cardholder & reallocates transactions in CitiDirect

• Bookkeeper gets receipts from cardholder daily, weekly or monthly (least preferred) and logs into CitiDirect to do reallocation.– Bookkeeper should review receipts for: verification of goods

or services received, tax, detail receipts, alcohol purchases, unallowable purchases, purchases that must be reallocated.

• If department still wants to require a log, verify log is turned in with receipts and verify that for each log entry there is a detailed receipt.

– Additionally, bookkeeper should ensure items that require reallocation are complete and charged to appropriate account and object code.

– See Reallocation Checklist athttp://finance.tamu.edu/fmo/pc/docs/reallocation-code.pdf

– See Reallocation Instructions athttp://finance.tamu.edu/fmo/pc/training/CitiDirect_SingleAllocation.pdf

• Reallocation deadline in CitiDirect is usually around the 20th of each month.

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Step 2 Bookkeeper runs Expense Report in CitiDirect and reconciles receipts to the report

• Do not run this report before statement date • Usually the statement date falls on the 3rd of each month, but if

the 3rd falls on a weekend, it will be the preceding Friday• It usually takes the bank a couple of days to post all

transactions after statement date. So we would suggest you to run this report around the 6th of each month, if all reallocations have been performed.

• For instructions on how to run this report in CitiDirect please see the following link http://finance.tamu.edu/fmo/pc/training/CitiDirect_RunningReports.pdf

• The following slides are an example of the report and instructions on how to read the report

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“SIGNATURE”Section for Approver

Required

Monthly transaction total amount

Object CodeAccount Number

“SIGNATURE”Section for cardholder

(considered best practice, but not required.)

Vendor Name

Review transaction detail under “Card Transactions”

section

Transaction Date and Posting Date

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• Bookkeeper can schedule to automatically run the Expense Report in CitiDirect instead of manually running report every month, see the following link for instructions on running this

report http://finance.tamu.edu/fmo/pc/training/CitiDirect_RunningReports.pdf– An email will be sent each month when the report is available

to download or print from CitiDirect.– Please be sure the date selected to run the report each month

gives enough time to do the reallocations.

Step 2 Scheduling Expense Report

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• Bookkeeper needs to match receipts received from cardholder with Expense Report to ensure all transactions are accounted for and all receipts are present. Any items on the report for which cardholder does not have receipts could be fraudulent items, duplicate charges, non-delivery items or disputed charges, etc.

• Bookkeeper should also note any receipts received from cardholder that are not on the report as reconciling items

• Please note any reconciling items at the bottom of the Expense Report then sign and date as the reconciler.

• If the transaction log will still be required by the department, then must reconcile the transaction log to the Citibank statement, printed as discussed prior or received via mail. See the following slides for information required on the log if the department will continue to require log.

Step 2 Bookkeeper runs Expense Report in CitiDirect and reconciles receipts to the report

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Note any reconciling items at the bottom of the report, sign and date as the reconciler

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Default FAMIS account number

Name of CardholderStatement Date

Date goods were ordered

Name of vendor, vendor ID is not

requiredGeneral description of the

goods or service to be purchased

Amount to be spent with this particular

vendor

Date goods were

received

If the card is used by

someone other than cardholder

for this particular purchase list

name here

Account and object code to reallocate

to in CitiDirect

Bookkeeper must initial and date to verify receipts have

been reconciled to log and statement

If there is a purchase on the statement with no receipt or a receipt not listed the on the log, note it as a reconciling item on the log and explain why as a line item here

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Step 3 Cardholder reviews and approves Expense Report (considered best practice, but is not required.)

• Cardholder should review transactions and any outstanding transactions (listed on the Expense Report) to verify that they are appropriate purchases and made by the cardholder or approved to be made by the cardholder.

• All transactions on the Expense Report are the responsibility of the cardholder (name listed on the card).

• Cardholder signs the Expense Report , see following slides.• If the department continues to require the transaction log, the cardholder

must review and sign the transaction log to verify transactions as stated above.

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Cardholder reviews the report to verify transaction detail

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After verifying all transactions cardholder sign the report (considered best practice, but not required.)

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If the department continues to use the transaction log, it must be reviewed and then signed and dated by the Cardholder here.

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Step 4 Department Approver reviews and approves Expense Report

• The approver must review the purchases to verify:– Purchases are within purchasing, payment card program and

disbursement guidelines.– Account and object codes are correct, according to required

reallocation of certain expenditures– Card sharing log was turned in as documentation, if card

sharing occurred.– That the reconciliation was done timely (prior to reallocation

deadline) and initialed and dated by the reconciler.– Signed by the cardholder and dated (considered best practice,

but not required.)– Documentation of the expenses is complete to ensure

compliance with the guidelines stated above.

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Approver reviews transaction details to verify all purchases have been approved

Approver signs the report

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If the department will require the cardholder to continue using the log, then the approver must sign and date here.

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Step 5 (State funded transactions only) Bookkeeper submits supporting documentationto FMO for audit

• State requires Accounts Payable to audit all state transactions before they are submitted to the state

• Bookkeeper submits all state transaction backup (receipts and signed Expense Report) to FMO for audit by 5:00 pm of the reallocation deadline date (usually the 20th of the month)– If the department will continue to require a log from their cardholders,

then it must be submitted along with the receipts and Expense Report• The supporting documentation should be sent as rush in a

red envelope and addressed to Payment Card MS 6000.

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Step 6 Bookkeeper reconciles Expense Report with FAMIS statement and then retain records according to retention schedule

• Bookkeeper reconciles the monthly FAMIS statement to the Expense Report (or log if using log instead of the Expense Report) to verify that the amount posted to your FAMIS account(s) is the amount that you charged on your payment card within 30 days of the FAMIS statement date.

• After reconciliation is complete, bookkeeper retains records (Expense Report or log and statement along with receipts) according to the retention schedule. State requires that we keep these on file for the current fiscal year plus 3 fiscal years prior.