Overview
The Procurement Card program is intended to streamline and simplify the Purchasing and Accounts Payable functions by eliminating waste and low value activities. The Procurement Card is a tool that reduces transaction costs, facilitates timely acquisition of materials and supplies, automates data flow for accounting purposes and offers flexible controls to help ensure proper usage.
The Procurement Card Program is designed as an alternative to a variety of processes including petty cash, prepay purchases and low dollar purchase orders. The Procurement Card Program is not intended to avoid or bypass appropriate procurement of payment procedures. Rather, the Program complements the existing processes available. The card is a MasterCard credit card that is issued by JPMorgan Chase. Some minimal record keeping is essential to ensure the successful use of the Procurement Card. This is not an extraordinary requirement; standard payment policies require retention of receipts, etc.
This Cardholder Guide provides information about the process, the types of purchases that can and cannot be made, records that must be maintained and reconciled for each cycle, and a variety of other Program information.
Please remember that you are committing college funds each time you use the Procurement Card. This is a responsibility that should not be taken lightly. Remember that you are the person responsible for all charges made to the card(s) that are issued to you. Intentional misuse or fraudulent abuse may result in disciplinary action up to and including dismissal.
The card will have no impact on your personal credit. Although the card lists an individual’s name, the card is actually issued to Brazosport College.
Obtaining A Card(s)
Procurement cards are issued through the business Office at Brazosport College. Respective deans authorize which employees are to have a Procurement Card issued to them. The appropriate Dean should submit a letter of request for the employee to obtain a card. This letter is to be submitted to Ginger Wooster, Director of Business Services.
Only full-time employees of are eligible to receive a Procurement Card. Contractors or temporary employees are not eligible. The cardholder is responsible for the security of their card(s) and the transactions made against the card(s). Each user will be required to sign the Procurement Card Cardholder Agreement as part of the Procurement Card application.
When you receive your Procurement Card(s), sign the back of the card(s) and always keep it in a secure place. Although each card is issued in your name, it is the property of Brazosport College and is only to be used for company purchases as defined in this guide.
Procurement Card Restrictions
The Procurement Card is NOT to be used for personal purchases, cash advances, gasoline, rental car, or for meals under any circumstances. Even if you are using a pro-card for lodging, airfare, or registration for travel expenses you still must complete a travel authorization form. All expenses that are to be covered by the pro-card for travel are to be noted on the travel authorization form. Do not note the amount of those costs, only note that the expense is to be covered by the pro-card. Remember: Pro-Cards cannot be used in a restaurant. The Board of Regents has set a per diem amount allowed for breafast ($8.00), lunch $10.00) and dinner $12.00).
Under no circumstances should a transaction be split into two separate receipts to bypass the single transaction dollar limit.
Each individual is given a maximum dollar amount per transaction as well as a maximum number of transactions per day and per cycle (month). Once set, the card will reject purchasesfor amounts greater than the limit or transactions that exceed the limited number per day/cycle. If this limit needs to be changed you must obtain written approval of our supervisor. Limits may be changed by contacting the procurement Card Administrator (Ginger Wooster X3210 or Carrie Robertson X3466).
Using The Card
Purchases with the necessary approval are initiated using your assigned card. If you are not the approver of an account, you must fill out a Procurement Card Justification Form and have it approved prior to any purchase. This form is located on the Brazosport College website under General Information. Select Business and Facilities. Select “Procurement” then “Procurement Card Program”. Once you have obtained authorization for a purchase, contact the supplier and agree to price, quantity, sales tax (Brazosport College is Tax-Exempt), and delivery date. When ordering, inform the supplier that your entity is tax-exempt and should not be charged sales tax. If tax is applied to the purchase, you must contact the vendor and have them credit the tax amount on your Procurement Cardd. If the purchase is via phone or mail, ask the supplier to include the receipt with goods when the product is shipped to you. This receipt is the only original documentation specifying whether or not sales tax has been paid against the purchase. The Cardholder’s name and “MasterCard” must appear on the packing slip and external shipping label. The supplier will require your Procurement Card number, expiration date and the “ship to” address. It is required that you retain all receipts for your purchases.
Reconciling Your Account(s)
Monthly, each cardholder will receive a statement(s) (cycle cut-off date is the 5th of each month) identifying each transaction made against the Procurement Card during the billing cycle. The statement must be reconciled against your retained receipts for accuracy.
For users with numerous transactions, a Monthly Transaction Log can be used as a tool to help maintain purchase information and to help reconcile your account(s). This Log is recommended for users who make telephone purchases.
The statement (with attached receipts) must be signed by the cardholder as proof of reconcilement and then forwarded to your supervisor for approval. After proper approval the following should be forwarded to the Accounts Payable Department: (1) the original monthly statement with proper approvals; (2) the Transaction Log, (if used); (3) the original receipts along with the original Purchase Justification sheets.
Each account must be reconciled and receipts forwarded to Accounts Payable by the 5th of each month. (Note that it is advisable to reconcile your account on a weekly basis for all purchases made during that week.)
Resolving Errors and Disputes
In the case of an error, first contact the supplier and try to reach an agreement. Most disputes can be resolved between you and the supplier directly.
If you are unable to reach an agreement with the supplier, complete a Dispute Form, sign it and send it back to Bank One. Department secretaries will have copies of the Dispute Form. All disputes must be submitted in writing to Bank One within 60 days of the statement date via fax at 1-847-497-8298, 1-847-622-2495 or 1-847-931-8861 or via mail to:
Bank One
2500 Westfield Drive
Mail Code IL1-6225
Elgin, Illinois 60123
Attn: Disputes Dept.
Paying The Bill
The Procurement Card is a corporate pay arrangement. Account balances will be paid in full each month by a direct charge to Brazosport College bank account. Your purchases will be charged to an expense account based upon the department/account combination that has been established.
Do not send your monthly statement to Accounts Payable with a check request.
The Procurement Card(s) should be secured, just as you would secure your personal credit cards. If your card(s) is lost or has been stolen, immediately contact Bank One via this toll free number (1-800-890-0669). Also notify your local Procurement Card Administrator (Ginger Wooster X3210).
Refusal of Card Or Account
Shoudl you be declined at the point of sale for any reason, please contact your local Prodcurement Card Administrator (Ginger Wooster X3210). Every effort will be made to determine why the transaction was declined. Typically, cards are decined because the Merchant Category Code associated with a particular vendor has been blocked by Brazposport College.
Departmental Changes
If you transfer to a new department or leave the company, notify your local Procurement Card Administrator (Ginger Wooster X3210) immediately.
Procurement Card Audit Activity
Your card activity is subject to random audits by appropriate personnel, including College Internal Audit. The random audits are to help ensure adherence to the Program’s policies and procedures.
Merchants That Do Not Accept The Card
Merchants are to be encouraged to become involved in the Procurement Card Program so that you can use the Program most effectively. Merchants may contact their local bank or financial institution to become credit card capable. For those merchants that are unwilling to participate in the Program, alternative sources should be found (Purchase Orders).