P-Card Manual

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Important Reminders

Tax Exemption: The College does not pay sales tax. Use the tax exemption certificate above to waive sales tax. This number is for College use only and may NOT be used for personal purchases.

Monthly Reports: Expense reports and transaction logs are due by the 18th of each month. Transaction logs must be fully completed, signed by the budget authority, and include all receipts and paperwork.

Lost/Stolen Card: Report a lost or stolen card immediately to Compass Bank at 877-689-7554 (24-hour line). Notify Purchasing and your budget authority by the next business day.

Employment Changes: If a cardholder ends their employment with the College, contact the Purchasing Director for instructions.

Overview

SF Procurement Card Program

The purpose of the SF College Procurement Card (P-Card) Program is to allow departments to make small dollar purchases in a more efficient manner. Transactions up to and including $999.00* (including the total cost of the transaction and any associated shipping/handling or installation fees) can be made by the department without the requirement to submit a requisition for a purchase order or a payment request.

*Cardholders in the Purchasing Department making purchases on behalf of other departments may have higher transaction limits.

Benefits of the P-Card Program

Reduced need for petty cash funds
Reduced risk of petty cash being mishandled or stolen
Vendors receive payment for within two business days rather than the time required for the College to process and mail a check
Significant reduction in the volume of purchase orders and checks, as well as associated costs (paper, envelopes, postage)
P-Cards can often be used in places where a PO is not accepted

Roles and Responsibilities

Cardholders

Cardholders are responsible for:

Using the card strictly according to College policies and procedures set forth herein
Checking to ensure that adequate budget exists before incurring any P-Card charges
Ensuring that the cardholder is the sole user of the P-Card and buying from minority-owned businesses whenever advantageous to do so
Safeguarding the card at all times while in the cardholder's possession
Notifying Compass Bank customer service immediately and the P-Card Administrator by the next business day when the card has been lost or stolen
Restricting purchases to only those authorized for College-related purposes and notifying the Budget Authority promptly of any purchase mistake made contrary to this manual
Ceasing use of the P-Card according to the cut-off dates established for each fiscal year period
Surrendering the P-Card upon separation from employment, as well as at the request or order of the Budget Authority or P-Card Administrator
Keeping all transaction documentation (i.e. charge tickets, credit slips, invoices, delivery tickets, etc.) sufficient to permit proper reconciliation of the monthly statement, reconciling and submitting them as required to the Budget Authority
- Failure to comply with P-Card policy by not submitting documentation as required may result in suspension or cancellation of the card. Transactions not supported by proper documentation may become the financial responsibility of the cardholder. DO NOT MUTILATE OR OTHERWISE ALTER ORIGINAL RECEIPTS OR SIMILAR DOCUMENTATION. DO NOT USE TAPE ON THERMAL PAPER RECEIPTS AS THIS CAN ERASE THE RECEIPT OVER TIME.
Notifying the P-Card Administrator promptly of any problems (i.e. card denial, sales tax exemption, etc.) experienced when using the card
Ensuring that the vendor provides a transaction document regardless of the transaction method used (phone, Internet, mail or facsimile, or in person)
Accepting only a credit on the P-Card whenever an item is returned (if for any reason a vendor cannot issue a credit to the card, notify the P-Card Administrator)
- Serious or repeated misuse or abuse of the card including sharing of a P-Card or P-Card number, fraudulent or inappropriate use will result in the revocation of the card as well as potential disciplinary actions up to and including termination of employment.

Budget Authority

The cardholder's Budget Authority is responsible for:

Assuming overall responsibility for their respective employees' use of a P-Card
Determining the necessity and purpose of each card
Identifying potential cardholders and approving the application
Requiring the cardholder to attend training sessions
Reviewing the reconciled monthly billing statement for overall legitimacy of the transactions, and signing the statement, certifying the legitimacy of the listed transactions
Checking to ensure that adequate budget exists before forwarding all documentation to Accounts Payable for payment of statement
Verifying that a copy of the records for each cardholder are retained in the Budget Authority’s department, including proper documentation for the required 90-day period after reconciliation has been completed
Ensuring that cardholders adhere to all program policies and procedures and revisions thereto
Making arrangements for the fulfillment of their duties, with respect to this program, in the event of an absence from the office
- When purchases are in question, the Budget Authority bears the responsibility for resolving the issue. Suggested remedies include having the cardholder provide a credit voucher proving that the item(s) were returned for credit, or having the cardholder provide the College with a check from their personal account for the full amount of an inappropriate purchase.

Accounts Payable

Accounts Payable is responsible for:

Performing a final online reconciliation process on all P-Card transactions
Balancing with monthly ACH payments from College bank account
Timely posting of PCard transactions to the general ledger (with ITS assistance)
Verifying that cardholder-keyed department numbers and general ledger codes are
Verifying that (generally) no sales tax was paid on transactions.
- If sales tax was paid, verify that a credit is also in evidence or forthcoming.

Purchasing

The Purchasing Department is responsible for:

Recommending suppliers for use based upon current ongoing price agreements, State and local contracts, and established service programs
Encouraging the use of minority vendors
Monitoring suppliers used to assure that P-Card purchases are processed accurately and that returns are handled efficiently
Monitoring products purchased using the P-Card and evaluate future requirements to use in establishing contracts for these items
Conducting internal audits of purchases
Making P-Card purchases on behalf of a department upon 1) a properly executed requisition and 2) under specific circumstances
- This is done only on a case-by-case basis and must be pre-approved by the CFO and/or Comptroller.

P-Card Administrator

The P-Card Program Administrator is responsible for:

Assuming overall responsibility for the P-Card program
Implementing the P-Card program with the assistance of the Office for Finance
Maintaining a list of all cardholders, their profiles, and their card account numbers
Maintaining Budget Authority sample signatures where necessary
Developing and providing cardholder training
Administering disciplinary action, in conjunction with the appropriate Department Head/Director and Human Resources personnel, to a cardholder found having intentionally misused their P-Card
Authorizing an employee to be issued a P-Card and ensuring that the employee is personally informed of all the terms and conditions imposed with the privilege of using a P-Card, including dollar limitations, restrictions, and policies
Notifying cardholders to cease purchasing at the end of the fiscal year according to the cut-off dates established in the year-end memo
Requiring cardholders to adhere to all program policies and procedures, and revisions
Ensuring that the P-Card program is operated according to the established policies and procedures outlined in this manual
Establishing and maintaining internal controls with the assistance of the Office for Finance
Periodically reviewing all policies and procedures, forms used and data-processing programs to determine if any need to be revised, enhanced and/or updated
Facilitating the issuance, replacement, and cancellation of all P-Cards with the Provider
Facilitating any necessary P-Card dollar limitation or restrictions
Canceling or overriding MCCs as needed
Serving as primary liaison between P-Card users and the Provider, when needed
Assuring that no P-Card is reassigned or transferred to another individual
Requesting and coordinating any needed data processing changes between the Office for Finance and the Provider
Notifying Provider of any person who assumes the Administrator's responsibilities due to the incumbent no longer acting in this capacity, who may act in the behalf of the Administrator during his/her absence
Establishing and maintaining communication with cardholders
Assisting cardholders with problem resolution if an agreement cannot be reached with a vendor
Canceling cards immediately upon employee separation
Monitoring program compliance
Reviewing audits and reporting apparent discrepancies to cardholder and Budget Authority, when deemed necessary
Working with Administration to identify and drive future program application/enhancements
Reviewing reports to analyze and monitor card usage
Providing guidance to the cardholder regarding any sales tax exemption misunderstandings by vendors
Working directly on the cardholder's behalf with the Provider on any fraudulent charges

Applying for a P-Card

Application Process

All SF employees or authorized individuals using funds either from or through the College (as the fiscal agent), designated by the Budget Authority, may be permitted to obtain a P-Card. Approval is contingent upon the justification of need and the potential cardholder’s past history of demonstrating fiscal responsibility on the College’s behalf. The P-Card Administrator will discuss suggested cardholders with the CFO and the Comptroller prior to authorizing approval. Any associated P-Card or other fees charged by the Provider must be paid by the using department.

A P-Card Cardholder Application Form must be completed by the requesting cardholder and then forwarded to the Budget Authority. The Budget Authority will review and adjust the requested limits based upon the specific departmental constraints, sign, and submit the application to the P-Card Administrator for final approval and processing.

If the application is accepted, the P-Card Administrator will schedule training for the cardholder. Upon completion of training and passing of an exam, the cardholder will be provided a P-Card Cardholder Agreement Form, which must be signed by both the cardholder and the Budget Authority and returned to the P-Card Administrator.

The P-Card Administrator will order the card and notify the cardholder for pickup. The P-Card will only be released to the cardholder after completion of training and upon complete execution of a P-Card Cardholder Agreement Form.

In the best interests of the College, the P-Card Administrator has the authority to deny any potential cardholder access to a P-Card based on any prior failure by such individual to follow established Purchasing rules and procedures.

Card Activation and Security

The individual cardholder will activate the P-Card using the toll-free number shown on the removable sticker on the card. Cardholder must call from their number of record and provide the last four digits of their SFID Number (NOT YOUR SSN!). If for any reason the automated system cannot match your request you will be transferred to Customer Service.

Important!

Cards must be kept in a secure location when not in use.
Cardholder must ensure their card number is not documented and/or distributed in any unsecured manner (copies of invoices and receipts, handwritten notes, etc.).
Cardholder is responsible for all activity on their assigned card.

P-Card Limits and Restrictions

P-Card Purchases must be for College business ONLY.

Each P-Card is uniquely assigned to one employee or authorized individual and will have its own specified dollar amount limits and restrictions. In addition, the P-Card will be set up to default to the department's main account number and one GLC (the latter must be changed during the reconciliation process).

Transaction Limits

Single Transaction Limit - The dollar amount one can spend on a single transaction. The limit is set by default to $999.00 (including shipping/handling, installation, and any other added fees).

Daily Limit - The maximum total dollar amount allowed per 24-hour period.

Cycle Limit - The maximum total dollar amount allowed per 30-day period.

These limits may be temporarily increased by the P-Card Administrator under certain conditions.

Segregation of Duties

A cardholder must not handle all aspects of the procurement process. If a cardholder is also a Budget Authority, their direct supervisor must review and approve all transactions appearing on the card.

Restrictions

P-Cards cannot be delegated (used by anyone other than the cardholder)
P-Cards cannot be used for any service that is performed (maintenance)
P-Cards cannot be used in cases where there should be a Contract for Services
P-Cards cannot be used to purchase furniture, equipment, computers, or any other items defined as inventoried equipment (see Glossary)
The P-Card program is restricted for use with certain types of merchants. The card issuer will block access to these merchants using the MCC system. Attempting to use a P-Card with a blocked merchant will result in the card being declined.

Allowable vs. Non-Allowable Purchases

Allowable Purchases

The following items are allowed for P-Card purchase, provided the transaction total remains less than $999.

Art Supplies
Blank Media
Batteries
Books
Bulbs
Computer Accessories - cables, keyboard, mouse, surge suppressors, etc. that have been approved for campus use by ITS
Film
Food - only if the account allows it; most Fund 1 accounts are not permitted to buy food
Gasoline - for college owned vehicles only
Lab/Research Supplies
Maps for classroom use
Minor Equipment/Furniture
- Items must have a unit cost of $999.99 or less, including shipping/handling and installation. If an item has a unit cost over $199, cardholders must verify prior to purchase that sufficient capital budget is available.
Misc. Supplies/Materials
Office Supplies
Preprinted Pamphlets
Photo Development
Photography Supplies
Rental/Reservation of Display Booths at Events
Reprints
Software (ITS approved)
Subscriptions (journals, magazines, newspapers)
Test Kits
Uniforms
Prerecorded Media
Webinars

The following items are NOT allowed to be purchased with a P-Card:

Alcoholic Beverages
Awards/Trophies
Cash Advances
Clothing (general)
Computers, Laptops, Tablets
Contractual Services
Controlled Substances
Furniture/Equipment with a unit cost of $1000 or more
Gift Cards
Insurance
Memberships
Personal Convenience or Decorative Items
Printers
Registrations
Rent or Leases
Services (Repairs, Maintenance)
Telephones, Facsimiles, or Devices Connected to a SF Telephone Line
Wire Transfers
Any Items Prohibited by Law, Regulation or Policy
Items costing more than your single transaction limit (no splitting)

The P-Card Administrator may, at their discretion, allow any purchases that are normally not allowed when it would be advantageous to the College to do so. Proof of P-Card Administrator approval shall be included with the Monthly Transaction Log when submitted to Accounts Payable.

Making a Purchase

Before Purchasing

Cardholders are advised to check before making a purchase to ensure the vendor accepts Visa and will honor the College's sales tax exemption.
When purchasing online, verify that the website is secure by looking for a closed lock symbol, unbroken key symbol, and/or web address beginning with "https"
When possible, request a price quote that includes shipping and any other charges before placing your order, to ensure the transaction falls within dollar limits.

Shipping and Receipts

Provide the vendor with the exact shipping instructions including your name, campus address, building/room number, and any other pertinent information. It may also be helpful to provide a reference number (such as "PC" and the last four digits of your card) to indicate the purchase was made with your P-Card. Supporting documentation should be marked clearly to indicate that the sale was made by credit card. Advise the vendor to not charge your card until the item has been shipped. (Many vendors do this anyway as a matter of practice.)

Request an itemized receipt or packing slip showing no balance due. Full itemization requires a description, quantity, unit cost, and total for each item, plus shipping and any other charges. (General terms like "merchandise" or "misc. items" are not acceptable.) If the receipt is unclear, the cardholder must add a detailed description.

Save the credit card receipt and shipping documentation. The PCard Replacement/Missing Receipt form must be filled out for any purchase where a receipt was not provided or has been lost.

Contracts

Any purchase requiring a signed contract, agreement, terms/conditions, or similar documents must first be reviewed by the Purchasing Director. College staff are not permitted to sign contracts and financial terms.

Sales Tax

Santa Fe College is tax exempt and will not pay consumer sales tax charged by vendors. The College's tax exemption number is embossed on the face of your card. If you need a copy of the Sales Tax Exemption Certificate, contact Purchasing.

Minority Vendors

The College encourages using small, locally-owned, women-owned, and/or minority-owned businesses where possible.

Emergency Overrides

The P-Card Administrator can temporarily lift, when appropriate, dollar limitations and/or MCC restrictions for necessary transactions. The cardholder or P-Card Administrator will be required to provide the necessary justification before a temporary lift will be considered. Cardholders must contact the PCard Administrator prior to making such a purchase to request an exception.

Important Reminders

Immediate availability over back ordering is preferred. Either wait until all items are available from the vendor or order from another vendor.
Third party vendors (such as PayPal) may not be used.
Splitting of purchases is prohibited (see Glossary).
Invoices must be sent directly to Accounts Payable.

Reconciliation

Manual Reconciliation

Cardholder

Reminder: the monthly billing cycle is the 5th of the month through the 4th of the next month. All charges posting during this time will appear on your monthly statement.

Cardholders shall reconcile their receipts, invoices, charge slips, and credits to their P-Card Monthly Transaction Log as required. The total dollar amount of the receipts, including any credits issued, must equal the total of the statement. If receipts are lost or unable to be obtained, the cardholder must fill out the P-Card Missing/Replacement Receipt Form.
Reconcile statements by matching the transactions on the monthly statement against the cardholder's receipts, invoices, charge slips, and credits
- verifying (1) the amount of each transaction, (2) the goods have been received; and, (3) sales tax was not charged.
Attach the P-Card Monthly Transaction Log to the monthly statement with all receipts, invoices, charge slips, and credits for the transactions listed on the statement ensuring that the dates on the report match the dates on the cardholder’s statement. Forward all documentation to the Budget Authority (or Supervisor if the cardholder is a Budget Authority) for review and approval. If there is no activity for the month on the card, then a Log sheet is not required.

Budget Authority

Review the reconciled statement for overall legitimacy of the transactions
Sign the statement, certifying the legitimacy of the listed transactions
Forward the statement and P-Card Monthly Transaction Log to Accounts Payable as required.

The Office for Finance will retain responsibility for storing P-Card monthly statements and supporting documentation.

Accounts Payable

Review all P-Card monthly transaction reports to verify appropriate GLC use, transactions match with the respective monthly statement, and all receipts are attached.
Verify that appropriate signatures have been obtained on the transaction log.
If receipts are found to be missing, an email is sent to the cardholder requesting expedition of missing receipt(s) within 24 hours.
At the close of business on the date identified in the timeline an email is sent to the Budget Authority and/or the appropriate VP if receipts still have not been forwarded, warning that on the date as defined in the timeline that their budget will be charged for the purchase(s).

Electronic Reconciliation

Cardholders

SpendNet is the software used to verify and edit transactions. It allows the user to change or correct department(s) tied to PCards. Cardholders will have access to SpendNet to review and approve transactions electronically. This will also be the time to provide a brief description of the purchase in the electronic system.

Check the availability of budget prior to purchasing items. The Accounting system will allow PCard purchases to be expensed to a department even if there is no budget available.
Assign the appropriate GL code for each transaction. If there are questions concerning the correct GL codes, please contact the Purchasing Department at 395-5237 for assistance.
Ensure that all transactions are edited and approved promptly as required;
- Note: The College must pay Compass Bank for all transactions listed on the statement; returns and disputes will be displayed through a credit. All posted transactions will be paid even if they are not reviewed and/or approved.

Accounts Payable

Performs final reconciliation of transactions by comparing cardholder’s monthly statement, P-Card Monthly Transaction Log, and receipts with electronic transaction data, then edits as needed.

Reconciliation Tips

The transaction post date may differ from the order date.
If you received 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.
If you only received a partial shipment, you should only have a partial charge on your statement. It is illegal for vendors to charge your card for merchandise that was never shipped.
A supplier's billing name may be different than the name by which you know them.
The appropriate GLC for disputed charges is 69511 P-Card Disputed Charges.
Should a vendor charge you sales tax, contact them with the College's sales tax exemption number and ask for a credit. Try to obtain the credit during the current cycle if possible; otherwise, you may mark the charge as disputed until the credit for sales tax is posted.

Each P-Card is set up to default to the department's main account number and one GLC. The GLC for each transaction must be updated when completing the monthly P-Card Report. (Refer to the P-Card Processing Timeline for details.)

Returns, Credits, and Disputed Charges

Returns

When a vendor has shipped items as specified on an order, they have legally complied with their part of the contract and are under no obligation to accept for credit or refund any of the items delivered as specified. Acceptance of a return by the vendor is by no means automatic, and a restocking fee may be incurred. The department is authorized to pay said fee.

In the event that an item needs to be returned to the vendor for adjustment or credit, it is the cardholder's responsibility to do so. It is recommended, but not required, that the cardholder complete a Returned Goods Report unless the item is being returned in person.

The cardholder is responsible for:

Contacting the vendor, obtaining a Return Authorization (RA) number, if applicable, and following the vendor's return policy;
Completing the Returned Goods Report form, if used, (include the RA number reference);
Sending all return items to Receiving for shipment to the vendor with a copy of the Returned Goods Report form attached (if used) so that Receiving may add a tracking number and signature);
Logging the purchase and return for any item(s) on the log form;
Ensuring that the credit appears on the next statement. If the credit does not appear within 60 days, file the appropriate paperwork for disputed items with Compass Bank.

All returns must be indicated on your monthly transaction log.

Credits

If the supplier accepts an item as a return, a credit for this item should appear on the current or following month’s statement. All credits must be indicated on the monthly transaction log.

Disputed Charges

If a cardholder finds a discrepancy on a monthly statement, the cardholder should contact the Supplier and attempt to resolve the problem directly. All disputed items should be indicated on the PCard Monthly Transaction Log form. If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder should complete the appropriate paperwork provided by Compass Bank. The Provider will flag the transaction as “Disputed”. If the dispute process is resolved, the College is not liable and a credit will be issued.

Should a problem arise with a charge, every attempt should be made to first resolve the issue directly, and informally, with the vendor. Review of future statements is vital to ensure that the account is properly credited for returns, credits and disputed charges. The returned, credited or disputed item should be noted on the PCard Monthly Transaction Log form. The cardholder is responsible for notifying the Budget Authority of resolution of a disputed item.

Examples of disputed charges:

Failure to receive goods
Defective merchandise
Incorrect sales amounts
Sales tax charged
Altered charges
Unauthorized charges
Duplicate charges
Unprocessed credits

The GLC for disputed charges is 69511 (P-Card Disputed Charges).

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