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Management Services

Procurement Services

Purchasing Card

The University of Missouri Purchasing Card Policy Manual

Revised May 2, 2008

Table of Contents

1. Program Overview

1.1 Purpose

1.2 Program Benefits

1.3 Credit Card Company

2. Purchasing Card Controls

2.1 Purpose

2.2 Reason for the Policy

2.3 Departmental Internal Controls

2.4 Responsibilities of Department Administrative Heads

2.5 Responsibilities of Cardholders

2.6 Responsibilities of Approving Officials

2.7 Issuance of Purchasing Card

2.8 Purchasing Card Limits

2.9 Purchasing Card Security

2.10 Lost, Stolen, or Misplace Cards

2.11 Cardholder Terminations and Transfers

3. Purchasing Card Policies and Procedures

3.1 Responsible Authority

3.2 Allowable Purchases

3.3 Purchasing Card with Transportation Privileges

3.4 Payment Solutions

3.5 Prohibited Purchases

3.6 Campus Specific Purchasing Card Requirements

3.7 Required Documentation

3.8 Transactions Requiring Special Documentation or Approval

3.9 Splitting or Stringing Purchases

3.10 Sales Tax Exemption

4. Penalties

4.1 Responsibility

4.2 Cardholder Penalties

4.3 Department Penalties

Purchasing Card Program Key Contacts
 
Sample Forms:

1. Program Overview

1.1 Purpose

The University of Missouri purchasing card program is designed to provide a more efficient means of making routine purchases and payments by reducing paperwork, allowing for more control and responsibility at the school or department level, and streamlining the purchasing cycle. This manual outlines the benefits of the program, describes the responsibilities of cardholders and fiscal managers, and enumerates the program's policies.

Cardholders use the purchasing card to purchase allowable goods and services but billing and settlement are centralized. All transactions are automatically loaded into the accounting system, thus reducing the need for purchase requisitions, petty cash, invoices, and vouchers. To ensure proper account information, the cardholder and unit administrator need to routinely review transactions and make needed adjustments to accounting codes and descriptions using a webbased application.

1.2 Program Benefits

1.3 Credit Card Company

The University utilizes a Master Card and has selected JPMorgan Chase to provide the purchasing card program. PaymentNet offers a web based software solution that simplifies and accelerates the reconciliation process.

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2. Purchasing Card Controls

2.1 Purpose

Effective controls provide schools and departments with reasonable assurance that institutional objectives have been achieved through sound financial management. Procurement Services is available to assist departments with training, technical assistance and financial/operational reviews regarding the purchasing card program.

 

2.2 Reason for the Policy

Responsibility for financial control and stewardship of the purchasing card program rests with each department. The department is responsible for ensuring that each cardholder is performing their purchasing duties with competence and honesty, and for monitoring the effectiveness of the accountability structure. Through effective controls, a department can:

 

2.3 Department Internal Controls

Each school or department should establish internal controls sufficient to regulate the department's purchasing card activities. The responsibility for appropriate use of the card lies not only with the cardholder, but also with the approving department. The purpose of the controls is to prevent errors or fraudulent use of the card. The Department's internal controls should include:

2.4 Responsibilities of Department Administrative Heads

2.5 Responsibilities of Cardholders

2.6 Responsibilities of Approving Officials

2.7 Issuance of Purchasing Card

 

2.8 Purchasing Card Limits

The maximum dollar limit shall not exceed $5,000 per transaction. Each department is responsible for setting the per transaction limit commensurate with the individual cardholder'sresponsibilities and purchasing activity.

The monthly maximum limit is $15,000. Limits over $15,000 may be requested if a business need exists. Any requests for limits over $15,000 must be submitted in writing for approval byProcurement Services. Each department is responsible for setting the monthly transaction limit commensurate with the individual cardholder's responsibilities and purchasing activity.

Annually, Procurement Services will provide each department with a Purchasing Card Utilization Report. The report will provide, by department, each cardholder's name, card limits, and previous calendar year transaction history. The purpose of the report is for departments tomanage their purchasing card program including, for example, verifying that cardholders arecorrect, ensuring that purchasing card limits are appropriate relative to cardholder activity, andcanceling any inactive or unneeded cards. Departments must respond to Procurement within 30days of receiving the report, verifying that all cards are needed and limits are set appropriately. Card cancellation and change requests are to be made on the Utilization Report Change Tab or by using the Purchasing Card Change/Cancellation Form. Departments not responding to Procurement will have cards temporarily suspended until verifications have been made. Annually, Procurement will analyze cardholder activity to determine that spending limits are consistent with usage. Where exceptions are noted, Procurement will work with the Departments to set appropriate limits.

2.9 Purchasing Card Security

The University purchasing card should always be protected. The card should be kept in a secure location. The only person authorized to use the purchasing card is the cardholder whose name appears on the face of the card. Under no circumstances may a cardholder allow another individual to use his or her purchasing card.

2.10 Lost, Stolen, or Misplaced Cards

In order to protect the University's interest, lost or stolen purchasing cards must be reported to JPMorgan Chase (1-800-270-7760), the cardholder's approving official, and Procurement Services. The cardholder can be liable for all charges incurred until the card is reported lost, stolen or misplaced.

 

2.11 Cardholder Terminations and Transfers

Cards must be canceled within 48 hours after the cardholder's final billing cycle for faculty or staff members who terminate employment, transfer to another department or assume different duties that do not require the use of the purchasing card. Cards must be canceled within 48 hours of termination for faculty or staff members terminated for disciplinary reasons. The approving official must collect the card at the time that the employee leaves as a part of the exit interview.

A Purchasing Card Change/Cancellation Form must be sent to Procurement Services along with the destroyed card.

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3. Purchasing Card Policies and Procedures

3.1 Responsible Authority

The authority to set and enforce purchasing card policies and procedures lies with Procurement Services. When a business case exists, exceptions to the purchasing card policies and procedures may be granted upon request from a department and with written approval from Procurement Services. Each Campus Procurement Office may impose stricter requirements than those stated in this policy manual.

3.2 Allowable Purchases

The University purchasing card may be used for non-capital equipment, supplies, and services costing less than $5,000 (including any applicable tax and shipping) when not prohibited. For purchases or payments where the purchasing card is the preferred method of payment see the AP/PO Quick Reference Guide.

All purchases must be made in accordance with established University policy. All purchases made with the purchasing card must be for expenses associated with official university business. Use of the purchasing card for unauthorized, inappropriate, or personal items may result in penalties as indicated in the University Purchasing Card Policy Manual, Section 4, Penalties.

3.3 Purchasing Card with Transportation Privileges

The University of Missouri purchasing card can include the ability to purchase certain transportation services, as defined below. Policies and procedures for the use of the purchasing card apply when used for transportation purchases. Responsibility and accountability for transportation purchases reside at the department level.

A. Obtaining Transportation Purchasing Ability

To obtain transportation purchasing ability for a new Purchasing Card:

To obtain transportation purchasing for an existing Purchasing Card:

B. Allowable Transportation Purchases
C. Guidelines
D. Required Documentation

 

3.4 Payment Solutions

The purchasing card is designed to be a tool for making both purchases and payments. At times there may be a benefit to the University to expand the use of the card to make purchases orpayments which may require an exception to the purchasing card policies and procedures. Such exceptions must be pre-approved in writing by Procurement Services.

3.5 Prohibited Purchases

 

3.6 Campus Specific Purchasing Card Requirements

Each campus may impose stricter requirements than those stated in this policy manual. Each campus has adopted specific requirements regarding the purchase and or payment of certain items (e.g. telecommunications, catering). For further information see the AP/PO Quick Reference Guide.

 

3.7 Required Documentation

A receipt or substitute documentation must support each purchase. If a receipt shows a limited amount of information or only has part numbers, added information from the Cardholder is beneficial.

The preferred documentation is listed below in order of preference:

  1. An original receipt from the vendor including:
    1. Vendor Name
    2. Transaction Amount
    3. Date
    4. Itemized description of item(s) purchased.
  2. Copies or facsimiles of the original receipt.
  3. A packing slip or other documentation received from the vendor.
  4. A screen-print or order confirmation e-mail, when making Internet purchases, or a copy of an order- form that was mailed to a vendor to request an item.
  5. If a cardholder is unable to obtain the above listed preferred documentation, a completed Replacement Receipt Form shall be completed documenting the transaction and verifying it was for official business. Purchases over $5 must have the letter from JP Morgan proving a request for receipt was made and the bank was unable to provide it before a Replacement Receipt Form will be accepted. Requested receipts from JP Morgan can take one to two months to receive

3.8 Transactions Requiring Special Documentation or Approval

 

3.9 Splitting or Stringing Purchases

The splitting or stringing of purchases with the University purchasing card is prohibited. Splitting or stringing is the practice of committing multiple purchasing card transactions to circumvent delegated authority levels, bypass University competitive bidding requirements, or avoid maximum delegated authority levels.

 

3.10 Sales Tax Exemption

The University is tax exempt and should not pay sales tax. The cardholder is responsible for insuring that sales tax is not charged at the time of purchase. The University's tax exempt number is on the front of each purchasing card. Some suppliers may request a copy of the tax exempt form. A copy is provided in the back of this manual and the Procurement Services Department websites. If sales tax is charged by mistake, the cardholder's department may decide if the cardholder must contact the vendor to request a refund.

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4. Penalties

4.1 Responsibility

Cardholders are responsible for and accountable to the University for all purchases made with the purchasing card and they must adhere to all University and department policies regarding its use. All purchasing card purchases should be for official University business only. Cardholders may not make non-University travel arrangements with the Purchasing Card. Any employee who fails to use the purchasing card properly or abuses the use of the purchasing card shall be subject to cardholder penalties listed in section 4.2 and may be subject to personnel disciplinary action, up to and including dismissal. The University will seek restitution for any inappropriate purchases made with the card. All cases of misuse or abuse of the purchasing card must be documented by the department and the Campus Procurement Department shall be informed in writing.

 

4.2 Cardholder Penalites

When policy violations by a particular cardholder are identified during the approving officials review of the monthly transactions, the following process shall be followed:

 

4.3 Department Penalties

Procurement Services may impose penalties for any of the following occurrences:

 

When penalties are imposed the following process will occur:

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Purchasing Card Program Key Contacts

Brenda Reifschneider

Coordinator eCommerce
1105 Carrie Francke Dr.
Columbia, Mo 65211
(573) 882-0874
reifschneiderb@missouri.edu

Kansas City Campus

Krista Young

Administrative Associate I
108 GSB
Kansas City, Mo 64110
(816) 235-6299
youngkri@umkc.edu

Cathy Barker

Manager Campus Procurement (UMKC)
108 GSB
Kansas City, MO
(816) 235-1375
barkerca@umkc.edu

St. Louis Campus

Tangela Brooks

Senior Buyer
209 Woods Hall
St. Louis, Mo 63121
(314) 516-5366
brookst@umsl.edu

Gloria Collins

Manager Campus Procurement (UMSL)
209 Woods Hall
St. Louis, MO
(314) 516-5363
collinsg@umsl.edu

Missouri S&T Campus

Karen Walberg

Procurement Support Specialist
G5C Campus Support Facility
1201 North State Street
Rolla, Mo 65409
(573) 341-4872
walbergk@mst.edu

Jean Roeder

Procurement Support Specialist
G5C Campus Support Facility
1201 North State Street
Rolla, Mo 65409
(573) 341-4266
roederj@mst.edu

Columbia, System, & Extension Campus

Terri Noblin

Procurement Support Specialist
113 Heinkel Building
Columbia, Mo 65211
(573) 882-6907
noblint@missouri.edu

Holly Oswald

Procurement Support Specialist
113 Heinkel Building
Columbia, Mo 65211
(573) 882-8196
oswaldh@umsystem.edu

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Contact webmaster@umsystem.edu. Reviewed January 08, 2009.
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