Policy Manual

Purchasing Card

Purpose

Georgia College participates in the State of Georgia Purchasing Card (P-Card) Program, the only credit card program authorized for use by Georgia’s state agencies.  The P-Card program is overseen by the Department of Administrative Services, State Purchasing Division (SPD) and the Office of Planning and Budget (OPB).  Per the State Accounting Office, the P-Card may be used as the method of payment for unplanned, non-routine, or urgent point of sale purchases under $1000 and for purchases under $5000 that are preapproved by a fiscal representative and card approver.  Point of sale purchases are purchases made at a physical store, in person, online or over the phone.  These procedures identify and explain:

    a.) The procedural rules and guidelines that govern Georgia College’s participation in the P-Card Program.

    b.) The responsibilities of Cardholders, Approvers, and the Georgia College P-Card management team.

    c.) The internal controls established to prevent the P-Card from being used in a manner that violates State, Board of Regent (BOR) and/or Georgia College policies.

Applicable Laws, Policies and Procedures

These procedures are derived from and subject to various statewide and BOR policies and procedures, including but not limited to the following:

a.)    The State Purchasing Act, O.C.G.A 50-5-50 et seq.;

b.)    Georgia Procurement Manual (GPM), published by SPD;

c.)    The Statewide Purchasing Card Policy, published by SPD; and

d.)   Business Procedures Manual, Section 3 Purchasing and Contracts, published by BOR

P-Card Plan

Georgia College, as a participant in the Card Program, is required to have a P-Card Plan that is approved by the University President, SPD and OPB.  The P-Card Plan provides details such as, cardholders and approvers, internal controls and approval chain.   Any amendment to the P-Card Plan must be approved by the University President, SPD and OPB.

Conflicts and Compliance

Georgia College may establish additional and/or stricter requirements that those found in the laws and policies referenced above but not take away from them. In the event of conflict, the most restrictive provision will control.

 

Georgia College personnel assigned P-Card responsibilities are expected to be familiar with, understand and comply with these policies and procedures. Failure to comply may result in suspension or termination of P-Card privileges or other disciplinary action up to and including termination and criminal prosecution.

Participating in the Card Program

 

Eligibility for Card

 

Only permanent full-time and part-time employees who:

1.)    Complete 6 month probationary period as new employee

2.)    Are required as part of their regular duties to purchase goods and services for their department

3.)    Pass a criminal background and credit check

4.)    Complete all required forms listed below. Cards must be surrendered and accounts closed upon termination of employment for any reason or upon demand.

 

Ineligible to be a Cardholder

 Without exception, the following are ineligible to receive a P-Card:

1.)    Non-employees, students, temporary employees and contractors

2.)    Departments where the P-Card is intended to be shared between multiple employees

3.)    Employees of foundations

4.)    Card Administrator or Chief Accounting Officer

5.)    Any person who does not meet the eligibility requirements listed above

 

 

 

Obtaining a Purchasing Card

 

A P-Card may be requested by contacting the Purchasing Card Administrator (Card Administrator) and completing the New Cardholder/Change Request Form (Attachment 1). Employees are given a decision tree to follow to determine if a card is needed.  If it is determined a card is needed, the employee must get the approval from immediate supervisor and Chief Financial Officer.  The appropriate supervisor and Chief Financial Officer must approve the card spending limits.  Once approved Cardholder Request Form is received and HR has given clearance from background/credit check, the Card Administrator will order the card through the Works Program Manager.  The Card Administrator will forward a Purchasing Card Policy and Procedure Manual to the applicant to read prior to training. Once the card has arrived, the Card Administrator will schedule a training session for the applicant and his/her approver.

 

The card will be issued in the name of the University with the applicant listed as the user.  The cardholder is responsible for any and all charges including unauthorized, personal and inappropriate purchases made through the use of the card by the cardholder.

 

 

 

Criminal Background and Credit Checks

 

Criminal background investigations and credit checks are required for all new cardholders.  Existing cardholders will undergo a credit check prior to card renewal.

 

 

Process for Conducting Criminal Background Investigations and Credit Checks

 

The criminal background investigation will be processed by Human Resources through an external vendor.  The credit report is conducted such as not to affect your credit score. The information contained in the investigation report is confidential and will remain in Human Resources.  The Purchasing Department will be issued a clearance regarding employee eligibility.  No other information will be disclosed to Purchasing or to the cardholder’s department. 

 

 

Training prior to receiving the card

 

Each recipient and approver of a Georgia College P-Card is required to take an online training session and pass an assessment before a card can be released to cardholder.  The Chief Financial Officer will also attend training.  The training focuses on the basic use of the card and the responsibilities associated with it.  After completion of the training, each recipient is required to sign a Cardholder User Agreement (Attachment 2), which spells out the responsibilities of each cardholder.  Approvers are also required to sign a Card Approver Agreement (Attachment 3).

 

Cardholders, approvers and the Chief Financial Officer must complete refresher training annually. This training will include an assessment to test knowledge of the Purchasing Card Program.  Failure to complete annual training will result in revocation of P-Card privileges.

 

Responsibilities

  1. Cardholder Responsibilities


 

  1. When accepting the P-Card, the cardholder becomes an authorized purchaser for the University with specific responsibilities for expending public funds.  A cardholder is required to:
  2. Read, understand and follow all written policies and procedures.
  3. Maintain the security of the card, card number, and expiration date and security code.
  4. Request and receive prior approval for all planned purchases.
  5. Note the reason why prior approval could not be obtained for all unplanned purchases.
  6. Use the P-Card for state business only.
  7. Turn in signed statement and receipts by 27th of each month.
  8. Sign off on all transactions with Works by 27th of each month.
  9. Immediately self-report to the Card Administrator any misuse of card.
  10. Obtain the best value for the State.
  11.  Inspect all items purchased and report any issues to Supplier.
  12. Obtain, validate and reconcile all sales slips, receipts and submit to approver for approval.
  13. Notify the Card Administrator of the dispute issues and document attempts to resolve disputes or billing errors directly with the Supplier.
  14. Never accept cash or gift cards in lieu of credit for refunds.
  15. Never allow Suppliers to store P-Card number in their files.
  16. Never pay “past” due invoices with P-Card.
  17. Never share passwords.
  18. Complete refresher training annually.


 

Approver Responsibilities

 

  1. Read, understand and follow all written policies and procedures.
  2. Ensure cardholders have obtained prior approval for planned purchases and documented why prior approval was not obtained for unplanned purchases.
  3. Review all P-Card charges on a monthly basis.  The Approver must review and sign off on all transaction in the Works Program Manager and the cardholder’s monthly statement.
  4. Notify the Card Administrator if a cardholder changes departments, positions or resigns his/her position.
  5. Ensure Cardholders turn in all statements and receipts by 27th of each month.
  6. Sign off on all cardholder transactions by 27th of each month.
  7. Never share passwords.
  8. Immediately notify the Card Administrator of suspected P-Card fraud.
  9. Complete refresher training annually.


Card Limits

Georgia College is limited to 88 P-Cards.  Cards will have a monthly credit limit (CL) which cannot exceed $4999 without SPD approval and a single transaction limit (STL) which cannot exceed $4999 with SPD approval.

 

Any increases in spending limits or changes to profile must be forwarded to Card Administrator for approval. Request must have approver and VP of Finance and Administration approval.  Once approval is received, Card Administrator will review the request to determine if the change is allowable under the State guidelines, based on departmental needs. Any request to increase a cardholder’s STL to $5000 or above will require special approval from SPD and OPB.  Any increase that is granted will be temporary and will revert back to original limits on the 27th of the month unless special approval has been granted by SPD and OPB.

How the Purchasing Card Works

Per the State Accounting Office, the P-Card may be used as the method of payment for purchases up to $1000 that are unplanned, non-routine or urgent in nature without any prior approval . For planned or routine purchases below $5000, cardholder must have prior approval from approver and fiscal official before purchase can be made.  State Law does restrict the use of the P-Card for certain merchant categories and certain types of commodities and services.  See Attachment 4 for a list of these restrictions.


Planned or Routine Purchases are purchases that are routine in nature and would not stop work if not purchased in a timely manner. Planned and routine purchases require prior approval before purchase is made.


Unplanned, non-routine or urgent purchases are purchases that are not known or anticipated in advance. These purchases do not require prior approval if the purchase is under $1000.

 

P-Card Purchase Request Form

 

The P-Card Purchase Request Form is the method used to obtain the 2 prior approvals before making a planned or routine purchase. The P-Card Purchase Request Form can be found on the GC Unify site under the GC Signatures page.  Once you fill out the form, it can be submitted for approval.  Once approved, a completed document will be returned to you to attach to receipt as documentation.

 

 

Please remember all purchases made with the P-Card are charged to your budget just like any other purchase. Before using the P-Card, make sure there are funds in your budget to cover the purchases.

 

 

The P-Card may be used to make purchases from any vendor who accepts the VISA card.  Cards can be used in person, over the phone, via the internet or by mail.   Vendor questions regarding purchasing authority, and/or limitations and restrictions should be directed to the Purchasing Department.  Departmental requests for special purposes and increased limits should also be directed to the Card Administrator.

Purchasing Regulations

  1. No single purchase shall exceed your pre-determined limit and at no time may exceed $1000.00 for unplanned, non-routine or urgent purchases or $5000.00 for planned, routine purchases (unless Special Approval through the State of Georgia).  Circumventing the single transaction limit by splitting an order into two or more orders will lead to revocation of the P-Card. 

 

  1. Splitting an order between two or more P-Cards to circumvent to bid process will result in revocation of the P-Card.

 

      3.  Equipment costing more than $2999.99 may not be purchased with the card.

 

4.  Statewide contracts should be used if available. Most items covered by Statewide   Contracts may be purchased with the card.  (To verify whether or not an item is covered by a contract, call the Purchasing Department at 4458.)

 

 5. Unauthorized/illegal purchases will be returned for credit or paid for in full by     personal check made payable to Georgia College from the cardholder.  Failure to reimburse the University may result in funds being deducted from the Cardholder’s paycheck.  Continued unauthorized/illegal purchases will result in revocation of the P-Card along with other disciplinary action.

 

 6.    The Division of Information Technology and the Purchasing Department have     developed a procedure to help the campus community purchase software and/or downloads under $1,000.00 on their P-Cards.   If cardholders would like to purchase software (download or media) on their P-Card, they will need to complete the Software Purchase form located at: https://docusign.gcsu.edu/ .  You will need a unify password for this site.

 7.    Airline travel is allowed with approver and CFO approval.   Cardholder must submit the Cardholder/Profile Change Request Form (Attachment 1).  Once approval is received by the Card Administrator, cardholders profile will be changed to allow airline travel.  If cardholder purchases airline tickets, he/she must turn in receipt.

Charge Slips

The cardholder is responsible for obtaining a detailed invoice for each purchase made using the card.  A detailed invoice gives the quantity, per item price and total charges as well as company name and date charged. The charge slip or receipt should answer who, what, when and where a purchase was made.  Writing the business purpose will answer why the purchase was made.  With this, the cardholder will have a good audit trail during internal or external audits. 

 

These invoices will be attached to monthly statements and forwarded to the Card Administrator by the 27th of each month with all required signatures.    Any purchase made for which an invoice is not available at the end of the billing cycle becomes the personal responsibility of the cardholder.  Accounts Payable will maintain P-Card Statements per the State’s record retention requirements.

 

An explanation of each purchase should be fully detailed on the supporting documentation.  If incomplete, the approving official or the Card Administrator will contact you for an explanation of the charges.

 


Reconciling the monthly statement

 

Transactions will be allocated and signed off in the Works Payment Manager.  The user guide can be located once you log into Works at the bottom of page under training guides.

 

  1. As purchases are made with the P-Card, cardholder will receive an email from Works Payment Manager requesting approval for purchases that have posted to their account. 
  2. Once logged in, cardholder will enter department and account number you want charged for each transaction or line.  Business purposes should be added to each transaction under the comments section.
  3. Click save, upload receipts and then sign off on transaction.
  4. Once cardholder signs off on transaction, approver will be notified that he/she has a transaction that needs reviewing.
  5. Approver logs into Works and reviews transaction and comments and approves or denies.  If approved, the transaction is ready to batch for monthly accounting.  If denied, the approver would flag the transaction and note reasons for denial.  The cardholder will resolve issue and resubmit for approver’s approval.

 

At the end of each billing cycle if you made purchases with your card, you will receive a statement of charges.  Attach all receipts (business purposes must be on each receipt) for charges to the statement, sign the cardholder section on statement and forward to approver for signature prior to the 27th of the month.  The approving official checks receipts to ensure purchases were business related, have no sales tax and have a business purpose listed.  If purchases are valid, the approving official signs statement and forwards to the Card Administrator. (A copy of the statement and charge slips should be retained for the department records.)  If the statement is not received in the Purchasing Department prior to the 27th, the cardholder will receive an email stating that his statement is late.  If the statement is late two consecutive months, the card will be cancelled.

Disputed Charges, Credits, and Returns

The cardholder is responsible for contacting the vendor for any disputed charges or other items such as credits and returns.  Disputed charges may result from failure to receive goods or services, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. The cardholder should get vendor to credit P-Card for the disputed charges.  Under no circumstances should there be a direct refund of card of gift card from suppliers.

 

Disputes can usually be resolved by contacting the vendor.  However, if the cardholder is unable to reach an agreement with the vendor, the Card Administrator should be notified.  Cardholder will be required to file dispute in Works Program Manager.

 

All disputed charges must be submitted within sixty (60) days of the date of the statement on which the charge occurred. 

Note:  By law, vendors are not permitted to charge your card for purchases until the items have been shipped.

 

 

Ordering Process

 

The P-Card may be used to purchase goods or services in person, over the phone, via the web or by mail.  When making a purchase, please be sure to provide the vendor with the following information:

 

A.        Identify yourself as a Georgia College employee.

 

B.        Inform the vendor you are making a University purchase using a Georgia College

            P-Card.

 

C.        Inform the vendor the University is tax exempt.  If needed, the Purchasing Department can provide a sales and use tax exemption certificate to supplier.

 

When making a purchase by phone or the web, provide the vendor with the following additional information:

 

D.        Individual card number and expiration date.

 

E.         Complete Central Receiving delivery address (320 N. Wayne Street).  Advise vendor that your name must be on the shipping label.  All orders must be delivered to the Georgia College Central Receiving address above.

 

F.         Description of goods or services to be ordered.

 

 

 

The final step of a phone order should be:

 

A.        Verify that all items ordered are available for shipment.  (No Backorders).

            Backordered items should be ordered separately.

 

B.        Verify the total charges, including any shipping/handling, etc.

 

C.        Request that the vendor include a copy of your order with the shipment.

 

An “Activity Log” or similar document is recommended for departments that make frequent purchases.  See Attachment 5 for an example of an activity log.  Such a log can be helpful in verifying orders when received.

 

Sales Tax

 

Georgia College, as an agency of the State of Georgia, is exempt from Georgia sales and use tax.  Vendors may receive a Sales and Use Tax Exemption Certificate by contacting the Purchasing Department at 4458.  Georgia College will not pay Georgia sales tax.  Cardholders should have sales tax credited directly back to card or either reimburse university for the tax by obtaining a P-Card transmittal form from the Card Administrator.  This form should be taken to Business Office window where tax can be paid and cardholder will get a receipt which can be attached to his/her statement.

Exceptions to Approved Purchases

If cardholders would like an exception to purchase goods or services that are prohibited by policy, he/she must fill out a Cardholder Special Approval Request Form.  When completed, this request will be forwarded to SPD for approval by the State of Georgia Purchasing Card Administrator and OPB.  Once a response has been received from State Purchasing, the Card Administrator will contact the cardholder. If approved, this will be a limited approval.  This approval must be obtained prior to making the purchase.

Fraud

Any suspected fraud should be reported to the Card Administrator.  The Card Administrator will report these charges to the Internal Auditor and the State Purchasing Card Program Administrator. Any alleged violation or questionable transaction could result in an immediate suspension of card privileges pending a review to determine what, if any, action is appropriate.

Card Information Revisions

On occasion, it may be necessary to change information on a card.  In this case, the cardholder must send the Card Administrator a completed New Cardholder/Change Request Form (Attachment 1) with approver’s and VP of Finance and Administration’s  signatures. Once received, the Card Administrator will forward to BOA for processing.

Card Limit Increases

On occasion, cardholders may need a temporary increase in spending limits.  Cardholder must submit a completed New Cardholder/Change Request Form (Attachment 1) with approver’s and VP of Finance Administration signature.  Temporary increases will

Card Renewal

New cards are issued for a designated period of time.  Upon expiration, cards are automatically renewed for a similar period. Cardholders must submit a New Cardholder /Change Request Form (Attachment 1), sign a new cardholder agreement and submit and pass a criminal background and credit check prior to renewal card being issued.

Termination of Employment

Should a cardholder terminate employment with the University, the cardholder’s approver has the specific obligation to notify the Human Resource Department and/or the Card Administrator of the employee’s resignation or termination.  This will ensure the card is cancelled prior to the employee leaving the university.

Annual Usage and Limit Reviews

The Card Administrator will review cards annually for cards that are used less than 10 times per year. The Card Administrator will contact approvers to ensure these low usage cards are still needed.  Decisions will be based on approver’s comments.

 

The Administrator will also review card spending limits annually to ensure limits are at acceptable levels.  If limits appear to be too high, the Card Administrator will contact approver to determine if change in limits is needed.

Lost or Stolen Cards

If a card is lost or stolen, the cardholder has the responsibility to notify the Bank of America 24 hour service at 800-538-8788 and the Card Administrator.  Be sure to keep this telephone number and your credit card number in a file for reference.  The Card Administrator will not give out P-Card numbers over the telephone.

Purchasing Card Violations

Georgia College expects every individual cardholder to strictly adhere to policies and guidelines governing the use of the State Purchasing Card.  Failure to do so may result in disciplinary action up to and including termination of employment.  Additionally, such failure could result in prosecution to the fullest extent of the law, including financial restitution and/or criminal prosecution.

 

Violations of policies and procedures governing the use of the P-Card can be classified as minor or major.  The action taken is dependent upon the type of violation and the number previous cardholder violations.  The Card Administrator can suspend a cardholder’s privileges with or without input from the department head.  However, the department head will be notified of any such action.

 

Listed below are examples of minor and major violations:

 

Minor Violations

 

Minor violations are instances that are accidental and without willful intent or a delinquent reconciliation process.

 

  1. Using the wrong credit card when doing personal shopping and usually includes immediate discovery and notification of the PCA.
  2. Failure to turn in statement and receipts by the 27th of the month.
  3. Failure to sign off on transactions in Works by the 27th of the month.

 

Major Violations

 

  1. Purchasing unauthorized or restricted items.
  2. Splitting order to avoid the single transaction limits.
  3. Splitting charges between two or more cards to avoid credit limits or to circumvent the bid process.
  4. Allowing others to use the card.
  5. Knowingly making personal purchases.

 

Any alleged violation or questionable transaction could result in an immediate suspension of card privileges pending a review to determine what, if any, action is appropriate.

 

 

The State of Georgia Purchasing Card Policy can be located at

http://doas.ga.gov/state-purchasing/statewide-card-programs/purchasing-cards

Year End Deadlines

When approaching year end deadlines, be aware that all charges must be posted to the P-Card no later than May 27th.  The posting date is the date that the charge is posted to your card, not the date the purchase was made. A good rule of thumb is to allow 3-5 business days for a charge to post.  Any charges posted after May 27th will be posted and charged to the next fiscal year’s budget.

Review and Compliance

Annual Review

 

The P-Card Plan and these procedures will be reviewed annually by the Card Administrator and Vice President of Finance and Administration for accuracy and compliance with new and existing state policies.

 

Internal Audits Review

 

Internal Audit will perform the annual self-audit for the Georgia College P-Card program.

Attachments

Attach 1 - New Cardholder-Profile Change Request Form