Procurement Card Guide

You may download the Procurement Card Guide in PDF format here.

Introduction

Information about the RIT Procurement Card Program
The Procurement Card Process
Procurement Card Administration
Commonly Asked Questions
Appendix
1. Directory
2. Definitions

Introduction

The Procurement Card Guide provides cardholders and approvers with information about the RIT procurement card program. In addition, the guide is intended to familiarize cardholders and approvers with their responsibilities. The Procurement Card Guide is also available on the Controller's Office web page: http://finweb.rit.edu/controller.

The RIT Controller's Office administers the procurement card program at RIT in partnership with the RIT Purchasing Department. Controller's Office and Purchasing Department staff will periodically review all procurement card policies and procedures and revisions may be made as part of this process. Changes will be communicated via a cardholder's e-mail distribution list and if, required, training will be provided. All changes and/or revisions to the Guide will be published on the Controller's Office web page and will be effective when issued.

Detailed information regarding the use of the PaymentNet Internet reporting system is available in the PaymentNet User's Guide. Copies of the PaymentNet User's Guide are available from the Procurement Card Administrator(PCA) at (585) 475-4491.

If you have questions about the information contained in this guide, contact the PCA at (585) 475-4491, email at vdrcto@rit.edu or the Accounting Manager at (585) 475-2911 email at alnatg@rit.edu.

Click Here to Return to: [The Procurement Card Guide]

I. Information About the RIT Procurement Card Program

Use of the Procurement Card
1. The RIT procurement card is a VISA credit card issued through JP Morgan Chase. Although your name appears on your procurement card, the charges are paid directly by RIT.
  1. The procurement card may be used to pay for purchases that are for official RIT business use only. It may not be used for personal purchases.
  2. Cardholders are expected to comply with the RIT Procurement Policies when making purchases using the procurement card. Refer to the Purchasing depeartment web page at: http://finweb.rit.edu/purchasing/policies/manual.html
2. The procurement card program streamlines RIT's procurement system, supporting the operating needs of the University, consistent with good procurement practices. There are many benefits to using a procurement card to make small dollar purchases including:
  - Enables use of RIT's sales tax exemption
  - A purchase order does not have to be processed.
  - Orders are received in less time.
  - You have direct contact with the suppliers that you choose to use.
  - You will receive ordered goods directly at your specified location.
  - VISA pays the supplier within three business days.
  - Payment of invoices and issuance of checks are eliminated.
  - Speeds up the purchasing and payment cycle, making it easier to keep track of your department budget.
3. The procurement card may not be used for travel including airfare, hotel, automobile rentals, and travel related meals/hospitality. The RIT JP Morgan Chase Travel Card or the RIT/NTID Citibank Travel Card are specifically designed for travel and hospitality use. Refer to the RIT Travel Policy and Procedure Manual at http://finweb.rit.edu/controller/travel_info.html for more information.

How to Apply for a Procurement Card
1. Issuance of a procurement card is subject to the approval of the Director of Purchasing. Assigning of procurement cards is based upon business need, other methods of purchasing available , and the number of cards already in use in the department.
2. Complete a JP Morgan Chase Procurement Card Application Form, available on the Controller's Office web page at http://finweb.rit.edu/controller.
3. The approving supervisor, the individual having budget authority for the department to be charged for card expenses, and the Director of purchasing must sign the application. If you (the prospective cardholder) are the budget authority, your immediate supervisor and the Director of Purchasing must sign the application.
4. Attach a memo to your application providing information about the anticipated use of the card (frequency of use and average transaction amount) and the business need.
5. Type or print all information on the Procurement Card Application Form. Include your e-mail address. So that the PCA is able to add your name to a special cardholder e-mail distribution list.
6. Indicate the RIT 24-digit general ledger account number that the majority of purchases will be charged to. Note: this "default" account number is where all charges will be posted in the general ledger, unless changes are made in the PaymentNet system prior to transferring transactions to the general ledger.
7. Mail the completed application form to Purchasing, Building 99.
8. The cardholder and approver are required to accept the RIT card terms and conditions at the following indicating that they have reviewed and agreed to the provisions of the card program prior to the processing of the application.
9. Upon receiving the email that the Cardholder and Approver agree to the terms and conditions, the Director of Purchasing will review your application. Once approved, the application will be sent to the PCA for processing.
10. The PCA will process the application on-line with JP Morgan Chase. JP Morgan Chase will mail the new card to the PCA in approximately five (5) business days.
11. The PCA will contact you by email when your new card is available to be picked up in the Controller's Office (GEM, 6th floor). You (the new cardholder) will be asked to sign and date the "Cardholders Terms and Conditions" form before the card will be released to you. You will also be asked to show ID.
12. Contact the PCA at (585) 475-4491 if you have any questions about the application process.

Procurement Card and Transaction Limits
1. While procurement cards are issued to individual employees, each department head budget authority authorizes its own cardholders and requests specific dollar limits (single transactions and monthly limits) subject to Institute-wide guidelines.
  1. The typical transaction limit is $1,500 and the suggested monthly limit is $2,500. For the occasional transaction over your limit, you may request a temporary increase in your limit. Email the request to the PCA (vdrcto@rit.edu) and copy your supervisor. Indicate the business purpose, the limits to be raised, the duration of the increase, the cardholder's name and the last 10 numbers of the card.
  2. The Director of Purchasing may approve higher limits when there is a specific business need. Follow these steps if you require a limit over $2,500:
    - Send a memo to the Director of Purchasing with an explanation of the business requirements.
    - The Director of Purchasing approves requests for card limits of more than $2,500 (in order to verify compliance with RIT procurement practices), visit the Purchasing Department web page at: http://finweb.rit.edu/Purchasing/policies/manual.html.
2. Each procurement card is assigned to a specific RIT 24-digit general ledger account number. Charges incurred on the procurement card during a billing cycle are charged directly to the 24-digit account indicated on the cardholder's application form.
3. You (the cardholder) or your designee may have access to the PaymentNet Internet reporting system to view transactions on-line or to make account number changes during the month, before the transactions are posted to the general ledger.
4. The PCA will download transaction information from PaymentNet to the Oracle General Ledger via a journal entry. Refer to the Controller's Office web page for the posting schedule.
5. If changes were not made on-line in PaymentNet, individuals with access to the Oracle applications may make account number changes in the general ledger with a journal entry.
6. Annually managers will be asked by the Controller's Office to confirm all card limits to ensure that the limits are still appropriate to meet the business needs of the department.
7. Annually all cards will be reviewed to determine if the monthly limits are appropriate for the monthly spending use. Card limits may be lowered based on the spending use.

Click Here to Return to: [The Procurement Card Guide]

II. The Procurement Card Process

How to Make a Purchase

Purchasing small dollar items with the procurement card is simple and convenient. Just follow these steps:
1. Identify the item that you would like to purchase.
2. Call, visit or fax the supplier that you selected. Be specific about the item and quantity that you are ordering.
3. Pay with your procurement card. If you have more than one card, select the card that is assigned to the correct general ledger account number for the purchase.
4. Provide the following information to the supplier:
  - Your name (mention that you are an RIT employee)
  - Your procurement card number and expiration date
  - RIT's tax exempt number (which is on your card)
  - You may be asked to provide the CVV/CVC number - the 3 digit number located on the back of the card
  - Your campus delivery address (building and room)
  - Tell the supplier to put "VC" (Visa Card) on the shipping label, indicating that it is a procurement card order
5. RIT is sales tax exempt. Provide RIT's tax exempt number to the supplier when you place an order to ensure that sales tax is not charged on your purchase. If a supplier requires a copy of the sales tax exempt certificate, call (585) 475-2383 and ask to have one faxed to the supplier.
6. Keep track of your purchases throughout the month. The following information will be helpful to you when you reconcile your individual card statement from JP Morgan Chase before sending it to the PCA:
  - Order date
  - Requestor or person for whom you placed the order
  - Supplier name
  - Item description and quantity
  - Unit price
  - Total amount of the order, including shipping and handling
  - Date the item(s) was received
  - Business purpose of the purchase
  - Account number to charge, if different than the card default account number
7. Use your procurement card to pay for items such as:
  - Membership dues
  - Office, lab and classroom supplies
  - Off-campus hospitality - local only (use your JP Morgan Chase Travel Card to pay for meals while traveling out of town on RIT business)
  - Seminar/conference registrations
  - Software and computer supplies
  - Subscriptions
  - All other goods under $1,500 (except those specifically excluded - see below)
8. Do not use the card for:
  - Capital equipment (items $1,500 and over)
  - Gift certificates to individuals in lieu of payment for services
  - Lease payments
  - Payments to individuals for services (i.e. those individuals who provide you with a social security number rather than a tax identification number)
9. Contact the Purchasing Department at (585) 475-2107 if you have questions about purchasing a specific item (not on the list) with the procurement card or if a supplier does not accept VISA as a method of payment.
10. Cardholders must comply with the RIT Procurement Policies when making purchases using the procurement card. Refer to the Purchasing Department web site at: http://finweb.rit.edu/purchasing/policies/manual.html.

How to Receive an Order

Follow these steps when you receive an order:
1. Verify that the supplier filled the order correctly. Check the contents of the package or verify that all the items you ordered were delivered.
2. Make sure that the supplier charged you correctly and did not include sales tax. If there is an error, contact the supplier directly.
3. Sign and date the packing slip or receipt. If the charge amount is not listed, write the total cost that you were quoted on the packing slip or receipt.
4. Keep the packing slip or sales receipt from every delivery or purchase. You will need these receipts to attach to your monthly cardholder statement when you receive it from JP Morgan Chase.

How to Change the Default Account Number

All card transactions are automatically charged to the default 24-digit account indicated on the card application. Cardholders may change the general ledger account number in the PaymentNet System during the month.
1. If you do not make account number changes on the PaymentNet Internet reporting system, each transaction billed to your card for the period will be charged to the default 24-digit general ledger account number.
2. If you do not make account number changes in the PaymentNet system before your card transactions were posted, you may process a journal entry in the Oracle ledger. If you do not have access to the general ledger to process journal entries, please call Accounting Customer Service at (585) 475-2237.
3. Refer to the PaymentNet User's Guide for more information about accessing the Internet reporting system. If you do not have access to PaymentNet, please contact the PCA at (585) 475-4491.

How to Verify Your Monthly Statement

It is very important to confirm/verify all charges on your monthly card statement. Follow the steps below to prepare your statement for review by Accounting:
1. During the first week of the month you will receive an individual statement from JP Morgan Chase in the mail listing the charges and credits made to your procurement card during the prior month. If you did not make any purchases, you will not receive a statement. The statement you receive is not a bill; it is for information and record keeping only. RIT will pay JP Morgan Chase directly for your charges.
2. You have two weeks from the statement date to verify transactions and return your statement to the PCA.
  1. Attach the Monthly Statement Certification form signed by you (the cardholder) as well as the individual authorized to approve your transactions.
  2. Note: If the card is a Department Card (i.e. not an individual's name), a second approver must also sign the form. The second approver must be one level of authority above the first approver.
  3. Gather your packing slips and receipts for the transactions that are identified on your statement. Match the packing slips and receipts to the charges listed on your cardholder statement to verify that there are no billing errors. Put the packing slips and receipts in order according to the statement charges.
  4. Indicate the business purpose on each receipt including "who" (i.e., names of the people who attended the function), "what" (i.e., what was purchased, if not readily apparent from the receipt), and "why" (i.e., why the expense was incurred and the business connection to RIT such as donor relations, faculty recruitment, etc.).
  5. For hospitality expenditures, in addition to the business purpose, indicate whether alcohol was consumed (if an itemized receipt is not available). If it was, indicate the amount paid for the alcohol and the 24-digit general ledger account number that the alcohol was charged to (i.e., all charges for alcohol must be moved to object code 79050). If the change was processed on a journal entry and not in PaymentNet, please attach a copy of the journal entry. If no alcohol was consumed, indicate "no alcohol" on the receipt.
  6. If gift certificates were purchased, complete and attach the "Gift Certificates Given Form".
  7. Tape the original packing slips and the receipts to an 8-1/2 x 11 sheet of paper and attach them to the back of your card statement (receipts must be taped to streamline the record retention/scanning process).
3. Keep these tips in mind as you are matching receipts to charges:
  1. The charge amounts are listed on your statement by transaction date and vendor.
  2. A supplier's billing date may be different than your order date. The shipping dates on the packing slips and receipts may help you to match them to your statement charges.
  3. If you recieve an order in more than one shipment, the dollar total of the receipts or packing slips from the partial shipments may have been billed as one charge on your statement. In other words, you may need to add together the dollar totals on several packing slips or receipts to equal the charge listed on your statement.
  4. If you only received a partial shipment, the charge on your statement should be a partial charge. By law, a supplier cannot charge your card until the order is ready for shipment or a service has been rendered.
  5. A supplier's billing name may be different than the name by which you know them. Try to use other identifiers, such as a charge amount or date, to match these receipts and statement charges.
  6. If you notice any errors on your statement, note them on the statement and follow the instructions for "Disputing a Charge." (You still must review and return your statement to Accounting within two weeks).
  7. If sales tax is charged, contact the vendor to get the sales tax refunded to your credit card; do not dispute the charge. If you are not able get the sales tax refunded to your credit card, you are responsible to deposit the amount of the sales tax at the Cashier's Window in Student Financial Services. Attach a copy of the deposit slip with your procurement card statement.
4. If you do not have a packing slip or receipt, write "NR" next to the purchase amount along with the business purpose (or attach a memo).
5. Sign and date the Monthly Statement Certification form.
6. The individual you directly report to, or who authorized your procurement card, must review, sign and date the Monthly Statement Certification form.
7. A second approver must review, sign and date the Monthly Statement Certification form for Department Cards (i.e. not in an individual's name).
8. Return your statement with original receipts and the Monthly Statement Certification form to the PCA (GEM, 6th floor) within two weeks of the statement date. Failure to return approved card statements will result in suspension of card privleges.

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III. Cardholder Responsibilities

Cardholder Responsibilities
1. All purchases will be made in accordance with applicable Institute purchasing policies and procedures, according to the information outlined in this Guide.
2. The RIT Procurement Card is for RIT approved business use only; it is not for personal use. Use of the card for personal purchases will result in termination of card privileges, as well as possible termination and legal action.
3. Upon approval of his/her supervisor or budget authority, only designated employees of the Institute may obtain a procurement card.
4. Prior to obtaining a procurement card, the cardholder is required to accept the RIT card terms and conditions indicating that he/she has reviewed and agreed to the provisions of the card program
5. The cardholder will return his/her monthly card statement, with original receipts and the Monthly Statement Certification form signed by the cardholder and approver, to the PCA within two weeks of the date of receipt. A second authorized approver is required on the form for a department card.
6. The cardholder agrees to keep the card in a secure place.
7. The cardholder agrees to treat supplier-pricing information as proprietary.
8. Cardholders must return their VISA cards to their immediate supervisor immediately upon termination of employment from RIT or upon reassignment to another department within the University.

Approver Responsibilities

In order for the procurement card program to remain a viable purchasing/payment method at RIT, approvers must fully understand their responsibilites as outlined below:
1. Approvers are expected to review all transactions charged to the card to ensure they were made for RIT approved business use only in accordance with applicable Institute purchasing procedures and the policies outlined in this guide.
2. Approvers must ensure that the cardholder returns his/her monthly card statement with original receipts along with the Monthly Statement Certification form signed by the cardholder and you, the approver, to the PCA within two weeks of the date of receipt.
3. Approvers should be aware that all card transactions are subject to periodic review and/or audit to ensure compliance with internal and external policies.
4. Approvers are responsible to ensure that all purchases made with the JP Morgan Chase Procurement Card shall cease immediately upon the cardholder's separation from RIT or upon reassignment to another department within the Institute.
5. Approvers must be aware that inappropriate or fraudulent use of the RIT JP Morgan Chase Procurement Card may result in suspension of the cardholder's privileges and possible termination of his/her employment from RIT as well as possible legal action against the Cardholder. Approvers may also be subject to disciplinary action if it is determined that they were negligent in exercising their responsibilites as managers to ensure that procurement cards are used for business use only.
How to Dispute a Charge
1. Occasionally, billing errors may occur. For example, you may be charged sales tax, or you may be charged for goods and services that you did not receive. You may be charged an incorrect amount, a credit to your account may not have been processed, or a fraudulent charge may have been billed to your account. Also remember that, by law, suppliers may not bill you for purchases until your order is ready for shipment.
2. If an incorrect charge appears on your statement contact the supplier to report the error. Most errors can be resolved by requesting a credit for incorrect charges. Credits should be reflected on your next monthly statement.
3. If you are unable to resolve the issue with the supplier, dispute the charge on-line in the Payment Net Internet system. Refer to the PaymentNet User's Guide for detailed information.

How to Report A Lost or Stolen Card
1. Call the PCA at (585) 475-4491 to report your lost or stolen card.
2. If your card is lost or stolen after work hours Monday through Friday or on a weekend, call JP Morgan Chase Customer Service immediately (1-800-270-7760) to report that your card is missing. JP Morgan Chase will cancel your card. Contact the PCA on the next business day.
3. Complete a Lost or Stolen Card Notification form and fax it to the PCA (585) 475-5583. The administrator will request a new card from JP Morgan Chase and it will be mailed to the PCA. The PCA will notify you upon receipt of the new card.

Card Renewals and Cancellations
1. JP Morgan Chase will automatically mail a new card to the Controller's Office during the month that your card is due for renewal. The PCA will notify you upon receipt of the new card.
2. If you wish to cancel your card, cut it in half and return it to the PCA (GEM, 6th floor). Please provide a reason for the cancellation.

Card Misuse and Consequences
1. Cardholders and approvers are subject to disciplinary action for procurement card misuse. Disciplinary measures may include card cancellation, termination of employment from RIT and possible legal action. The following items are examples of procurement card misuse:

Card Statement Review Process
1. The PCA reviews monthly cardholder statements to verify that:
  - The Monthly Statement Certification form is attached and signed by the cardholder, approver, and second approver (required for Department Cards).
  - All original receipts/packing slips with itemized amounts are attached to the statement (arranged in order as they appear on the statement).
  - Sales tax was not charged
  - The business purpose is clearly noted including "who", "what" and "why"
  - If alcohol was purchased, that documentation is attached to show that the expense was moved from the default account number to object code 79050 (government unreimbursable).
  - If gift certificates were purchased, that a completed "Gift Certificates Given" form is attached to the statement.
2. The PCA also tracks the date of receipt of each monthly card statement. If the statement along with receipts is not returned to the PCA within two weeks of the date of receipt, you will recieve a memo requesting the information. Your procurement card privileges may be revoked if you fail to return the cardholder statement and receipts within the specified time frame.
3. In addition, in order to meet government compliance and RIT internal control requirements, card transactions will be audited periodically to verify that items billed to the card were actually received and that all procurement card policies and procedures noted in this guide were adhered to.

Click Here to Return to: [The Procurement Card Guide]

IV. Commonly Asked Questions

When Making a Purchase, What If...

When Receiving an Order, What If...

When Verifying My Cardholder Statement, What If...

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V. Appendix

Department	Location	Contact	Contract Information
JP Morgan Chase		Customer Service	1-800-270-7760 Fax:1-801-590-1333 PaymentNet Internet System: https://www.paymentnet.com
RIT Accounting Office	Controllers Office, 6^th floor GEM	Valerie Russell Procurement Card Administrator (PCA) Department Receptionist Accounting Manager - Andrea Napoli	Phone: (585) 475-4491 Email:vdrcto@rit.edu Phone: (585) 475-2383 Phone: (585) 475-2911 Email:alnatg@rit.edu
RIT Purchasing Department	Building 99	Buyer - Marcia Barilla	Phone: (585) 475-7834 Email:mjbpur@rit.edu

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Forms

All online forms require Adobe Acrobat Reader to view.
These forms can be edited online, then printed and faxed or emailed.

Fax Instructions

Click on the link to the form you want to fill out
Fill out the form completely (some fields cannot be edited and must be filled out by hand)
Click on the print button in the upper left hand corner of your web browser"s window
Fax the printed form to the fax number indicated below

Procurement Card Forms

Procurement Card Guide

You may download the Procurement Card Guide in PDF format here.

Introduction

Introduction

Click Here to Return to: [The Procurement Card Guide]

I. Information About the RIT Procurement Card Program

Use of the Procurement Card

How to Apply for a Procurement Card

Procurement Card and Transaction Limits

Click Here to Return to: [The Procurement Card Guide]

II. The Procurement Card Process

How to Make a Purchase

How to Receive an Order

How to Change the Default Account Number

How to Verify Your Monthly Statement

Click Here to Return to: [The Procurement Card Guide]

III. Cardholder Responsibilities

Cardholder Responsibilities

Approver Responsibilities

How to Dispute a Charge

How to Report A Lost or Stolen Card

Card Renewals and Cancellations

Card Misuse and Consequences

Card Statement Review Process

Click Here to Return to: [The Procurement Card Guide]

IV. Commonly Asked Questions

When Making a Purchase, What If...

When Receiving an Order, What If...

When Verifying My Cardholder Statement, What If...

Click Here to Return to: [The Procurement Card Guide]

V. Appendix

Directory

Definitions

Click Here to Return to: [The Procurement Card Guide]

Forms

Click Here to Return to: [The Procurement Card Guide]