The University of Louisiana at MonroeThe University of Louisiana at Monroe

PURCHASING DEPARTMENTPURCHASING DEPARTMENT

La Carte (P-Card) La Carte (P-Card) Purchasing Card ProgramPurchasing Card Program

December 1, 2014December 1, 2014

OverviewOverview

Introduction & PurposeIntroduction & PurposeBenefitsBenefitsCardholder Cardholder

ResponsibilitiesResponsibilitiesHow the Program How the Program

WorksWorks Important InformationImportant Information

Introduction and PurposeIntroduction and Purpose

What Is It?What Is It? LaCarte (P-Card) is a VISA credit card LaCarte (P-Card) is a VISA credit card

issued by Bank of America (BOA) that issued by Bank of America (BOA) that is used to make small dollar is used to make small dollar purchases directly from vendors.purchases directly from vendors.

The individual named on the card is The individual named on the card is responsible for making “business responsible for making “business related” purchases that are in related” purchases that are in compliance with university and state compliance with university and state policies.policies.

The P-Card carries a The P-Card carries a corporate liabilitycorporate liability

La Carte P-Card ProgramLa Carte P-Card Program

Who Issues the Card?Who Issues the Card?

View of the P-CardView of the P-Card

LA State sales LA State sales tax exempt tax exempt numbernumber 128-4900-001128-4900-001

Cardholder’s Cardholder’s namename

University of University of Louisiana at Louisiana at MonroeMonroe

BenefitsBenefits

Prompt payments to vendorsPrompt payments to vendors Less ExpensiveLess Expensive - - Reduces processing Reduces processing

costs and paper flowcosts and paper flow Reduces the number of purchase Reduces the number of purchase

requisitions and/or Check Requests requisitions and/or Check Requests processed by Purchasingprocessed by Purchasing

Reduces the number of Reduces the number of invoices/payments processed by invoices/payments processed by Accounts PayableAccounts Payable

Card ControlsCard ControlsMonthly Billing Cycle Monthly Billing Cycle

Begins on the 6Begins on the 6thth and ends on the 5 and ends on the 5thth of the of the following month.following month.

Dollar Limits & Transaction LimitsDollar Limits & Transaction Limits If you exceed the dollar or transaction limits, If you exceed the dollar or transaction limits,

your card will be declined at the Point of Sale your card will be declined at the Point of Sale (POS).(POS).

Merchant Category Codes (MCC)Merchant Category Codes (MCC) Attempts to purchase from restricted & Attempts to purchase from restricted &

prohibited MCC’s will cause the transaction to prohibited MCC’s will cause the transaction to decline at the POS.decline at the POS.

P-Card ProgramP-Card ProgramHow Much Can I Spend?How Much Can I Spend?

P-Card purchases are limited to an P-Card purchases are limited to an individual’s Single Transaction Limit (STL) or individual’s Single Transaction Limit (STL) or $5,000 per transaction (including shipping $5,000 per transaction (including shipping and handling).and handling).

CAUTIONCAUTION: : DO NOTDO NOT split a transaction. split a transaction. Purchasing items that exceed the Single Purchasing items that exceed the Single Transaction Limit and separating the Transaction Limit and separating the payment into two or more transactions ispayment into two or more transactions is NOTNOT allowed. Artificially splitting a purchase allowed. Artificially splitting a purchase is a violation of State law.is a violation of State law.

Purchases Are Not To Be Artificially Purchases Are Not To Be Artificially Divided Divided

Executive Order BJ 2010-16, Small Purchase Procedures, Section # 6 states the following;

In the absence of a good faith business basis, no purchase or procurement shall be artificially divided within a cost center, or its equivalent, to avoid the competitive process or the solicitation of competitive sealed bids.

Artificial division of purchases to circumvent the Single Transaction Limit (STL) of a P-Card is NOT allowed.

Artificial division of purchases can be outlined as follows:

1. Budget unit making two or more P-card purchases for the identical commodity on the same day or within the same week whose combined total cost exceeds the STL.

2. Budget unit making two or more P-Card purchases to the same vendor on the same day or within the same week whose combined total cost exceeds the STL.

3. Budget unit making two or more P-Card purchases to similar vendors* for identical or similar commodities** on the same day or within the same week which exceed the STL.

*   Similar vendors are suppliers selling products within the same industry category, i.e., athletic, automotive, data processing, electrical, medical, office, scientific, etc.

** Similar commodities are items which possess general characteristics within the same industry category, i.e., athletic, automotive, data processing, electrical, medical, office, scientific, etc.

Unauthorized PurchasesUnauthorized Purchases

Travel Expenses- Travel Expenses- Must use CBA account for airfare, Must use CBA account for airfare,

group travel allowed baggage group travel allowed baggage

Alcoholic beveragesAlcoholic beverages

Auto Rentals/Leases- Auto Rentals/Leases- Must use the CBA accountMust use the CBA account

Gifts/Gift Cards/Gift CertificatesGifts/Gift Cards/Gift Certificates

Cell Phones/Services/BlackberriesCell Phones/Services/Blackberries

Cash Advances, Wire TransfersCash Advances, Wire Transfers

PostagePostage StampsStamps

Individual MembershipsIndividual Memberships

Consultants/speakers (1099 Vendors) Consultants/speakers (1099 Vendors)

PrescriptionPrescription drugs/narcotics, etc. drugs/narcotics, etc. CapitalCapital Outlay/ComputersOutlay/Computers (707000’s(707000’s) )

Food and MealsFood and Meals

Authorized PurchasesAuthorized Purchases

Office SuppliesOffice Supplies

Books and SubscriptionsBooks and Subscriptions

Scientific and Lab SuppliesScientific and Lab Supplies

Institution MembershipsInstitution Memberships

Mail Transportation ServicesMail Transportation Services

Materials and SuppliesMaterials and Supplies

Cardholder ResponsibilitiesCardholder Responsibilities Directly responsible for appropriate card useDirectly responsible for appropriate card use

Sharing & lending cards isSharing & lending cards is NOTNOT allowedallowed

Keep the purchasing card in a safe and Keep the purchasing card in a safe and secure location secure location

Make allowable and appropriate purchasesMake allowable and appropriate purchases Personal charges are Personal charges are STRICTLY STRICTLY

PROHIBITEDPROHIBITED

Gather and assemble all supporting Gather and assemble all supporting documentation (receipts, invoices, etc.)documentation (receipts, invoices, etc.)

Receive and inspect ordersReceive and inspect orders

Cardholder ResponsibilitiesCardholder Responsibilities Receive individual monthly memo Receive individual monthly memo

statement from Bank of Americastatement from Bank of America This is not a billThis is not a bill

Cardholder should mark the Index and Cardholder should mark the Index and Expense Codes on documents prior to Expense Codes on documents prior to submittal to the Controller’s Officesubmittal to the Controller’s Office

Surrender the card upon termination of Surrender the card upon termination of employment or upon request by their employment or upon request by their Next-level Supervisor, Department Head or Next-level Supervisor, Department Head or P-Card AdministratorP-Card Administrator

Procedures: Place the OrderProcedures: Place the Order

Purchases in Person Purchases in Person Purchases by Telephone, FaxPurchases by Telephone, FaxPurchases via the WebPurchases via the Web

In all P-Card purchasing In all P-Card purchasing situations:situations:

Verify sufficient funding exists in the Verify sufficient funding exists in the specified budget and expenditure codespecified budget and expenditure code

Identify if the purchase is appropriate for a Identify if the purchase is appropriate for a p-card transactionp-card transaction

Check list of restricted purchasesCheck list of restricted purchases

Advise vendor that the P-Card is state sales Advise vendor that the P-Card is state sales tax exempttax exempt BEFOREBEFORE the transaction beginsthe transaction begins

Obtain detailed receipt and retain all Obtain detailed receipt and retain all documents documents

In all P-Card purchasing In all P-Card purchasing situations:situations:

BEFOREBEFORE you make a p-card purchase, you make a p-card purchase, always ask a vendor if they are a 1099 always ask a vendor if they are a 1099 reportablereportable

1099 reportable vendors are1099 reportable vendors are not allowed on the P- Cardon the P- Card

Guidelines to identify a 1099 reportable:Guidelines to identify a 1099 reportable: Company name is a person’s nameCompany name is a person’s name The word “Service” is in the company The word “Service” is in the company

namename Company nameCompany name does not have “INC.”, have “INC.”,

“CORP”, or “PC”“CORP”, or “PC”

Notes About Sales TaxNotes About Sales TaxSome vendors may require a copy of Some vendors may require a copy of

the State sales tax exemption the State sales tax exemption certificatecertificate Request a copy by e-mailing Purchasing Request a copy by e-mailing Purchasing If sales tax is charged, it is the If sales tax is charged, it is the

cardholder’s responsibility to request a cardholder’s responsibility to request a credit to the cardholder’s accountcredit to the cardholder’s account

TaxesTaxes

Required Documentation

Cardholders Cardholders MUSTMUST collect itemized collect itemized receipts for all P-Card purchases.receipts for all P-Card purchases.

Document/Receipt examples:Document/Receipt examples: Cash Register TapeCash Register Tape Detailed Packing SlipDetailed Packing Slip Copy of Order Form (e.g. subscription)Copy of Order Form (e.g. subscription) Registration formRegistration form Web receipt or e-mail acknowledgement Web receipt or e-mail acknowledgement

from vendorfrom vendor

Receipt DetailsReceipt Details Receipts vary in appearance and type of Receipts vary in appearance and type of

information provided but generally included information provided but generally included the following: the following: Date of purchaseDate of purchase Vendor nameVendor name Description of item(s)Description of item(s) Quantity, unit price, totalQuantity, unit price, total

Must submit original receiptsMust submit original receipts

Handwritten receipts are unacceptableHandwritten receipts are unacceptable

Procedures:Missing ReceiptsProcedures:Missing Receipts

Contact vendor to get a receipt- This is the Contact vendor to get a receipt- This is the fastest and simplest methodfastest and simplest method

Copies of receipts are acceptable only Copies of receipts are acceptable only when originals are not available or cannot when originals are not available or cannot be obtainedbe obtained

Paying with P-CardPaying with P-CardThe vendor will require the following The vendor will require the following

information when paying with the P-information when paying with the P-Card:Card: Name on the cardName on the card P-Card number and expiration dateP-Card number and expiration date Tax Exemption NumberTax Exemption Number Campus delivery address (if ordering items to be Campus delivery address (if ordering items to be

delivered delivered University of Louisiana at MonroeUniversity of Louisiana at Monroe

Receiving Location (your name, department, building and Receiving Location (your name, department, building and room #)room #)

700 University Avenue700 University Avenue

Monroe, LA 71209Monroe, LA 71209

Procedures: ShippingProcedures: Shipping

Shipments to a cardholder’s home Shipments to a cardholder’s home areare Strictly ProhibitedStrictly Prohibited

Shipments to other ULM locations Shipments to other ULM locations and affiliated entities are and affiliated entities are permissible; must get receiptspermissible; must get receipts

Procedures: Returns & CreditsProcedures: Returns & Credits

The cardholder is responsible for The cardholder is responsible for contacting a vendor & arranging contacting a vendor & arranging a return for replacement or a return for replacement or credit:credit: DO NOTDO NOT accept cash in lieu of a creditaccept cash in lieu of a credit Request Return Authorization NumberRequest Return Authorization Number Request credit receipt or slipRequest credit receipt or slip• Credits will appear on future Credits will appear on future

statementsstatements

Card MaintenanceCard Maintenance

Use Cardholder Enrollment FormUse Cardholder Enrollment Form Change of addressChange of address Name changeName change Replacement card requestReplacement card request Change of Single Transaction LimitChange of Single Transaction Limit

Contact the P- Card Administrator if Contact the P- Card Administrator if there are any charges on your there are any charges on your statement that you do not recognize.statement that you do not recognize.

P- Card Administrator will direct you P- Card Administrator will direct you to complete the Statement of to complete the Statement of Disputed Item form. Disputed Item form. (Located on the (Located on the Purchasing Web Page under ULM Forms)Purchasing Web Page under ULM Forms)

If the disputed amount is credited, If the disputed amount is credited, you will see it on a future statement.you will see it on a future statement.

Procedures: Dispute ItemsProcedures: Dispute Items

Lost or Stolen CardsLost or Stolen Cards Notify Bank of AmericaNotify Bank of America immediatelyimmediately by by

calling:calling:1-888-449-22731-888-449-2273 – anytime– anytime Zero personal liabilityZero personal liability Lost or Stolen Cards will be shipped to Lost or Stolen Cards will be shipped to

the P-Card Administratorthe P-Card Administrator DO NOTDO NOT have BOA reissue a card have BOA reissue a card

directly to you. All cards must be directly to you. All cards must be received and distributed by the P-Card received and distributed by the P-Card Administrator.Administrator.

Upon termination/transfer the card must Upon termination/transfer the card must be cancelled and returned to the be cancelled and returned to the Purchasing Department.Purchasing Department.

Other Important InformationOther Important Information

P-Card is to be used for official P-Card is to be used for official business onlybusiness only

WILL NOTWILL NOT affect your personal creditaffect your personal creditViolators of policies and procedures Violators of policies and procedures

will be subject to disciplinary actionwill be subject to disciplinary actionCAUTION VIOLATIONSCAUTION VIOLATIONS::

Personal or unauthorized purchasesPersonal or unauthorized purchases Split purchasesSplit purchases AlcoholAlcohol

Other Important InformationOther Important InformationFailure to comply with all P-Card Failure to comply with all P-Card

policies and procedures may result policies and procedures may result in the following:in the following: Payroll deductionPayroll deduction Account suspension/deactivationAccount suspension/deactivation Permanent loss of the cardPermanent loss of the card Notification to administration, internal Notification to administration, internal

audit, and University policeaudit, and University police Possible employment suspension or Possible employment suspension or

termination termination

Your Purchasing Card IS NOT Your Purchasing Card IS NOT Tied to Your Budget!Tied to Your Budget!

It is the responsibility of the budget unit cardholder to verify sufficient funding exists in the specified budget and expenditure code PRIOR to initiating the Purchasing Card transaction.

Important DatesImportant Dates Billing Cycle 6Billing Cycle 6thth through the 5 through the 5thth of each of each

month.month.

All statements and supporting documentation All statements and supporting documentation due in the Controller’s office not later than due in the Controller’s office not later than ten (10) business days after close of cycle.ten (10) business days after close of cycle.

Failure to submit documents in a timely Failure to submit documents in a timely manner will result in card suspension.manner will result in card suspension.

Statements not received with fifteen (15) Statements not received with fifteen (15) business days may result in card cancellation.business days may result in card cancellation.

LaCarte/CBA PolicyLaCarte/CBA Policy

A complete policy can be found on A complete policy can be found on the Purchasing Website the Purchasing Website http://www.ulm.edu/purchasingoffice/Site is updated constantly, so check Site is updated constantly, so check

often.often.

Key ContactsKey Contacts

Susie ClaySusie ClayP-Card AdministratorP-Card Administrator318-342-5209318-342-5209clay@ulm.educlay@ulm.eduFax- 318-342-5218Fax- 318-342-5218

Bank of AmericaBank of America

Report card lost or Report card lost or stolen:stolen:1-888-449-22731-888-449-2273