I.       INTRODUCTION:

A.       Texas Woman’s University Procurement Services offers the Procurement Card Program, an innovative program that simplifies the way in which you may order and pay for goods.  The Procurement Card (PCard) program is a fast, flexible purchasing method for processing limited goods from suppliers that accept credit cards.  The purpose of the program is to establish a more efficient, cost-effective method of the delegated purchasing and payment for small dollar transactions. 

B.       The PCard Program is designed to delegate the authority and capability to purchase limited items directly to you, the user. The PCard will enable you to purchase non-restricted commodities directly from the vendors without the issuance of a purchase order.  The card works like a credit card, and carrying one is a privilege based on trust.  In order to obtain a PCard, an applicant must first become certified in its use. 

C.       The terms and conditions of the PCard contract were specified and awarded by the Texas Building and Procurement Commission for the State of Texas.  Texas Woman’s University is utilizing the State of Texas contract for procurement card services with JP Morgan Chase.  TWU will comply with the terms and conditions of this state contract.

 

II.      USE OF THE CARD:

A.       The PCard is issued in an individual’s name, not to an office, department or other cardholder group.  The employee listed on the card has sole responsibility for the control and use of the card.  Each account manager and cardholder will be held responsible and accountable for the appropriate use of the card(s).

B.       The PCard may be used at any vendor that accepts Master Card and is not on the restricted list.  It may be used for in-store purchases, mail, telephone, and facsimile and internet orders.

C.        Cardholders may purchase non-restricted items within the delegated limit.  Single purchases are limited to $1000 per vendor per business day.

D.       The use of the procurement card to pay for a purchase does not exempt the University or its officers and employees from the purchasing requirements of state law and the TBPC.  It is not intended to avoid or bypass appropriate purchasing or payment procedures.  PCard transactions may not be split to divide a larger purchase which is over the cardholder’s single purchase limit.

E.       The PCard is to be used for TWU official business only.  The PCard will have the State of Texas emblem and the wording, “Official Use Only” imprinted on the card.  Personal purchases will be considered misappropriation of funds that may result in personnel action, criminal charges, or both.

F.       The PCard must be returned to the University’s Procurement Card Coordinator immediately upon transfer or termination.

           

 

 IV.    PROCUREMENT CARD CONTROLS

A.        Transaction Limits:  The PCard has a single transaction limit of $1000.  This is the amount available on the PCard for a single purchase.  A transaction includes the purchase price plus freight and installation.  Cardholders should not attempt to make a purchase greater than the transaction limit.

C.           Restricted Vendors:  The State of Texas requires JP Morgan Chase to block certain types of vendors from procurement card use.  Vendors are assigned a Merchant Category Code (MCC) based on the type of business they operate.  The PCard program is restricted from use with certain type of supplier and merchants. 

Please note that many vendors who operate within acceptable Merchant Category Codes may sell some items that are restricted from purchase with the PCard.  Just because the vendor sells it does not mean the Cardholder can buy it.  See restricted purchases.

Prohibited Merchant Category Codes

	300-3299 – All Airlines	4722 – Travel Agencies	7012 – Timeshares
	3351-3440 – All Rental Car Agencies	5541-5542 – Service Stations, Fuel Dispensers	7261 – Funeral Services & Crematories
	3501-3744 – All Hotels	5813 – Bars, Cocktail Lounges, Discotheques	7273 – Dating & Escort Services
	4121 – Taxicabs & Limousines	5921 – Package Stores, Beer, Wine, Liquor	7276 – Tax Preparation Services
	4131 – Bus Lines	6010-6300 – Financial Institutions & Cash Disbursements	7297 – Massage Parlors
	4411 – Cruise Line	7011 – Lodging Hotels, Motels, Resorts	7298 – Health & Beauty Spas

 

D.        Restricted Purchases:

 

	Weapons, ammunition	Utilities
	Travel & related expenses	Memberships
	Consulting or Professional Services	Bars, taverns, nightclubs
	Telephone services & equipment	Insurance of any type
	Alcoholic beverages	Animals
	Cash Advances	Controlled substances, prescription drugs
	Automotive fuel	Hazardous chemicals or materials
	Leases or rentals	Tips, gratuities
	Personal items	Postage stamps
	Radioactive materials	Temporary personnel
	State defined controlled equipment *	TWU defined controlled equipment **
	Services (Any labor/consulting, etc. that is 1099’able)

Important:  For the purposes of PCard purchases all of the items below are considered controlled despite the dollar amount.

 *State defined controlled equipment: 

	a.  stereo systems	g.  fax machines
	b.  cameras	h.  firearms
	c.  TVs	i.   microcomputers
	d.  VCRs	j.   laptops
	e.  DVD players	k.   printers
	f.  camcorders	l.   data projectors

 

 **TWU defined controlled equipment: 

	a.  palm pilots, PDAs	c.  computer monitors
	b.  servers and handheld computers	d.  scanners

 

E.        Vendor in Good Standing:  Per the Texas Administrative Code (34 TAC sec 5.57), state agencies are not allowed to do business with or make payments to entities that are on “warrant hold” (also called “credit hold” or “vendor hold”) with the State of Texas until the causing situation is resolved and the hold is lifted.  Because the PCard is a very easy way to do both, if you wish to make a purchase of $150 or more from a vendor based in the State of Texas, you are required to research the vendor’s hold status beforehand by visiting the State Comptroller’s website:  http://ecpa.cpa.state.tx.us/vendor/tpsearch1.html

G.        Security of the Procurement Card:  The cardholder is responsible for the security of the PCard.  This card shall be treated with the same level of care as the cardholder would with his/her own personal credit cards.  The card should be maintained in a secure location.  The only authorized individual to use the PCard is the cardholder whose name appears on the card. 

H.        Sales and Use Tax:  Texas Woman’s University is tax exempt.  The cardholder is responsible for ensuring that sales and use taxes are not charged.  TWU’s tax identification number is 75-6002618.  Wallet size tax exempt certificate cards are available in the Controller’s Office or you may obtain one at the following link:  Texas Sales Tax Exemption Certificate

 

V.      OBTAINING A PROCUREMENT CARD

A.        Forward procurement card application requests to pcardapp@mail.twu.edu  to receive the JP Morgan Chase application and the TWU approval form. These applications will provide Procurement Services with necessary information about the cardholder, the account for default payments, and the Account Manager’s approval of your application and subsequent designation of your delegated purchasing authority within the procedures of Texas Woman’s University.

 B.       Submit the completed and signed application and approval form to the PCard Coordinator.

C.        The PCard Administrator will request issuance of the Procurement Card from the Bank.

D.        When the card arrives in the Controller’s office, the PCard Coordinator will forward a copy of the Procurement Card Guidelines and schedule the applicant for an overview training session and certification test.  Applicants must bring a photo I.D. to the session for verification and identification.

E.        Once the applicant attends the training session, successfully completes the certification test and signs the Cardholder Procurement Card Agreement the card will be issued.

F.        The card must be activated by dialing the number located on the card from a TWU phone number.

 

VI.     BILLING AND PAYMENT

A.        Accounts Payable will receive a monthly total of all charges to the account, which will be remitted to JP Morgan Chase.

B.        Employees do not pay their own monthly statement.  The program does not affect your credit rating in any way.  The Procurement Card Program carries corporate liability.

C.        The signed transaction log and all associated documentation must arrive in the PCard office no later than the 20^th of each month.  If the 20^th falls on a weekend all documentation must be received by the preceding Friday.  They may be sent, in order of preference, via email using scanned images to pcardlog@mail.twu.edu, intercampus mail, U.S. or overnight postal service or facsimile machine (940-898-3519).  Additionally, copies of all transaction logs and supporting documentation will be filed and kept secure within each department for the current fiscal year and the three previous years.

 

VII.   RETURNS, CREDITS AND DISPUTED CHARGES

A.        Should a problem arise with a purchased item or charge, every attempt shall be made to first resolve the issue directly with the supplier.  Review of future statements is vital to ensure the account is properly credited for returns, credits and disputed charges.  The returned, credited or disputed item shall be noted on the Procurement Card Transaction Log.

B.        Returns:  If a cardholder needs to return an item to a supplier, contact the supplier and obtain instructions for return.  Note that some suppliers may charge a restocking or handling fee for returns.  All returns should be indicated on the transaction log.

C.        Credit:  If an item is accepted as a return by the supplier, a credit for this item should appear on the following month’s statement.  All credits should be indicated on the transaction log.

D.        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 transaction log.  A copy of the form and letters shall be kept in the department as documentation.

E.         If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder should complete the Statement of Disputed Item Form and forward to JP Morgan Chase.

 

VIII.  CARD TERMINATION

A.        Non-compliance to State, Federal and/or University procurement procedures will be grounds for revocation of cards.  Non-adherence to these procedures will result in revocation of individual cardholder privileges and may result in revocation of all division or departmental procurement cards.

B.        Card revocation may occur if the Procurement Card Administrator is forced to charge the default account for non-responsive cardholders.

C.        When a cardholder terminates employment with the University, the department has the specific obligation to reclaim the procurement card and return it to the Program Coordinator prior to the employee termination date.  Failure to do so may result in revocation of all departmental card privileges.

D.        Multiple notifications to a single department for insufficient budgets may result in revocation of all departmental cards.

E.        The Program Coordinator audits every transaction on every statement each month.  Cards will be deactivated immediately for any cardholder who fails to produce the required documentation.  The cardholder will be subject to a minimum 4-month waiting period and will be required to attend training again before the card will be reactivated.  Repeated failures to produce the required documentation may result in the card being permanently terminated at the Program Administrator’s discretion.  If the documentation is incomplete according to the Program Guidelines, the Program Coordinator will provide one on one instruction to the cardholder.  Repeated errors will result in the card being deactivated.

F.        If the cardholder violates any Procurement Card procedures outlined in this guide, the Program Coordinator may provide one on one instruction or the card will be de-activated immediately at the Program Coordinator’s discretion.  If the card is deactivated, the cardholder will be subject to a minimum 3-month waiting period and will be required to attend training again before the card will be reactivated.  Repeated violations may result in the card being permanently terminated at the Program Administrator’s discretion.  If the violation appears fraudulent or abusive, the cardholder may be subject to personal liability and/or disciplinary action, which may include termination of employment or possible criminal penalties.

 

IX.     RECORD KEEPING AND TRANSACTION RECONCILIATION

A.        The department is responsible for maintaining records of every transaction made with the PCard.  These records should be reconciled to the “Credit Card Statement” each billing cycle.  The following items should be retained in those records:

Sales receipts	Tear sheet for all advertisements
Credit card slips	Packing slip
Transaction log	Statement of business purpose including attendees if it was a meeting or social event

Note – all of the above items must be taped to 8.5 by 11 sheets for document imaging purposes and submitted with the transaction log.

B.               To facilitate the record keeping and the reconciliation process, the transaction log must include the following:

Vendor name	Warrant hold status
Transaction date	Received date
Description (please, be specific)	Total transaction amount
Departmental account number	Comptroller’s object code
Cardholder signature and date	Account manager’s signature and date
Reviewer signature and date (if required)

Note - the following are examples of descriptions that are NOT specific:

D.        Upon receipt of the monthly statement, either from the Bank or from SmartData, the cardholder shall reconcile the statement with the Transaction Log and forward the reconciled statement, transaction log and all supporting documentation to the Supervisor/Manager.  For reconciliation purposes, the lines on your transaction log should be in the same order as the lines on the statement.  Additionally, all documentation should be in transaction log order.

E.        When the Account Supervisor/Manager receives the transaction log, he/she will review the log as well as the documentation.  The Account Manager will not only verify that all of the necessary documentation is present, but he/she will also verify that the Cardholder made each purchase in compliance with the University’s procurement card procedures.  If the Account Manager agrees that all of the necessary documentation is present, and that all purchases are appropriate and in compliance, then he/she will sign the transaction. 

F.        If the Account Manager is also a Cardholder, he/she will submit their transaction log to his/her immediate supervisor for review and approval.

G.       The transaction log and all associated documentation must arrive in the PCard office no later than the 20^th of each month.  If the 20^th falls on a weekend all documentation must be received by the preceding Friday.  They may be sent, in order of preference, via email using scanned images to pcardlog@mail.twu.edu, intercampus mail, U.S. or overnight postal service or facsimile machine (940-898-3519). 

H.        The Supervisor/Manager or designee should verify that all purchases are appropriate expenditures and should take   necessary disciplinary action with employees making inappropriate expenditures.

I.             All supporting documentation, a copy of the transaction log and the bank statement must be kept for three (3) years plus the current fiscal year to comply with the University’s Record Retention schedule.  These are the official University records.  The records for procurement card purchases will be required for periodic audits by the procurement office or when TWU is audited by the Texas Building and Procurement Commission, The State of Texas Auditor’s Office or TWU’s Internal Auditors.