Management Services
Procurement Services
Purchasing Card
The University of Missouri Purchasing Card Policy Manual
Revised May 2, 2008
Table of Contents
1.1 Purpose
1.2 Program Benefits
1.3 Credit Card Company
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
3.1 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
4.1 Responsibility
4.2 Cardholder Penalties
4.3 Department Penalties
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
- Streamline the processes for small dollar orders and payments.
- Enable employees to be more efficient and focus on their core missions.
- Reduce paperwork and processing time in the employee's department as well as Procurement and Accounting.
- Provide cost savings through consolidated payments (one monthly payment to MasterCard versus multiple vendor payments).
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.
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:
- Safeguard University assets.
- Prevent, detect, and correct errors and irregularities.
- Ensure reliability of financial information.
- Ensure compliance with purchasing card policies and procedures.
- Maintain appropriate records in a safe and secure location.
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:
- Approving purchasing card applications.
- Setting appropriate transaction limits and card usage for each requested purchasing card.
- Reviewing all charges billed to a cardholder's card to ensure that the charges are verified, appropriate and reconciled by someone other than the cardholder.
2.4 Responsibilities of Department Administrative Heads
- Designate approving officials and cardholders.
- Establish monthly and transaction spending limits and card usage for each department cardholder.
- Approve applications.
- Ensure that employees who will be issued a purchasing card or have been delegated responsibilities under the purchasing card program meet all program requirements and have duties commensurate with the established spending limits.
- Ensure that all employees abide by the purchasing card program policies and procedures.
2.5 Responsibilities of Cardholders
- Participate in University purchasing card training and sign the cardholder agreement to acknowledge the responsibilities of the use of the purchasing card.
- Abide by all purchasing card policies and procedures when making purchases. Abuse or misuse of this privilege can subject the cardholder to disciplinary action, up to and including dismissal from the University.
- Ensure the physical security of the purchasing card and protect the account number.
- Immediately report lost or stolen cards to JPMorgan Chase, cardholder's approving official, and Procurement Services.
- Provide required documentation for each purchase. Forward documentation to the approving official.
- Review and verify all transactions that have posted to PaymentNet. Sign Cardholder Statement of Account.
- Identify disputed items and contact merchant directly to resolve disputes.
- Abstain from splitting or stringing charges to circumvent delegated authority levels. (See Section 3.9)
- Upon termination of employment or transfer to another position in the University, discontinue use of the purchasing card and return the purchasing card to the approving official. Additionally, review and reconcile all outstanding purchasing card transactions prior to termination or transfer.
2.6 Responsibilities of Approving Officials
- Participate in University approving official training and sign cardholder agreement to acknowledge the responsibilities of the use of the purchasing card.
- Routinely monitor purchasing card activity of cardholders. Ensure compliance with purchasing card policies and procedures. Immediately report any abuse or misuse of purchasing cards to Procurement Services.
- Review and reconcile all cardholder transactions in PaymentNet on a regular basis. Adjust Mo Codes/PeopleSoft accounts as appropriate. These transactions are received on a daily basis from the bank through PaymentNet at www4.paymentnet.com. Approving officials, or other designated individuals, must reconcile the individual receipts to the on- line transaction file. Approving Officials may delegate on-line editing of cardholder transactions. However, all Approving Officials are required to sign the Cardholder Statement of Account (PeopleSoft) as verification that the cardholder's transactions were appropriate and in accordance with policies and procedures.
- Collect all documentation and follow the University's guidelines for retention. For further information contact Records Management at www.umsystem.edu/records/.
- Track disputed items to ensure proper credit is received. Any discrepancies in billing must be marked as disputed charges using the PaymentNet system. The dispute form is submitted to JP Morgan online. Disputes can be processed up to 60 days from the end of the first billing cycle.
- Cardholder Statement of Account PeopleSoft must be printed for each cardholder for a billing cycle and signed by both the cardholder and approving official. Billing Cycles run from the 25th of one month to the 24th of the next month. The exception is if the 24th falls on a weekend or holiday, the billing cycle will end on the closest business day (this will be the next business day if a holiday falls during the week). Review, sign and approve Cardholder Statement of Account PeopleSoft. Send Cardholder Statements of Account PeopleSoft by the 10th of the month to the Procurement Services Office as designated by each campus. New billing cycle dates are posted on the Procurement Services websites each fiscal year. If unique circumstances occur and the approving official is unable to submit documentation by the designated due date, he/she should communicate with Procurement Services in writing prior to the tenth (10th) of the month.
- In case of employee transfer or termination, ensure the cancellation of the purchasing card by submitting a Change/Cancellation Form to Procurement Services. (See Section 2.11)
2.7 Issuance of Purchasing Card
- The University in coordination with JPMorgan Chase issues the purchasing card.
- The purchasing card will include the name of the cardholder, department, and institution.
- The Purchasing Card Cardholder Application Form, including the Purchasing Card Agreement, must be completed, approved and returned to the Campus Procurement Office before the purchasing card is ordered.
- Cardholders must participate in training before a card will be issued.
- Cardholders must pick up the purchasing card in person at Procurement Services. There are no exceptions.
- Cardholder must sign the back of the purchasing card in the presence of Procurement Services personnel.
- Cardholder must be a University of Missouri faculty or staff member. Under unique circumstances, a non-University employee, or student may have a business need to obtain a purchasing card. The department must submit the Appointment Request form for approval to the campus Procurement Office when a non-University employee card is being requested.
- Cardholder's approving official or other designated person must have participated in training and have Internet access to PaymentNet to review and approve monthly cardholder transactions.
- Cards expire every three years on the last day of the expiration month. The expiration month is embossed on the front of each card. Cards are automatically reissued to cardholders who have used their cards within 12 months prior to expiration. JPMorgan Chase sends the cards to the appropriate Campus Procurement office. Notification is then sent when cards have been received and are ready to be picked up by cardholders.
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 by Procurement 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.
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. Departments are responsible for verifying purchasing card transportation charges are NOT included on individual travel reimbursement vouchers.
A. Obtaining Transportation Purchasing Ability
To obtain transportation purchasing ability for a new Purchasing Card:
- Use the Purchasing Card Application and Agreement. Fill out the required information and indicate a need for transportation purchasing.
- Obtain the necessary approvals and submit the form to the Campus Procurement Office for processing.
To obtain transportation purchasing for an existing Purchasing Card:
- Use the Purchasing Card Change/Cancellation Form to indicate Transportation purchasing should be added to a card.
- Obtain the necessary approvals and submit the form to the Campus Procurement Office for processing.
B. Allowable Transportation Purchases
- Airline Tickets
- Rail Tickets
- Airport shuttle services arranged in advance
- Bus charters on prior approved contracts when authorized by Procurement Services
- Rental Cars
- Allowable transportation purchases may be purchased for non-employees when the University pays their travel (e.g. candidates on recruiting visits).
C. Guidelines
- The cardholder is the only person authorized to make purchases using his/her card
- When using a travel or rental car agency, the use of a contracted agency is preferred because of reduced transaction fees and/or rental car rates.
- Transportation purchases may also be made through the Internet when available and appropriate
D. Required Documentation
- Itinerary/invoice/Rental Car Contract
- Business purpose of the trip, which is required for tax purposes as per the University's accountable plan rules, should be recorded in PaymentNet in Transaction Notes including the complete spelling of any acronyms (this information is available through drilldown in web financial reports after the monthly upload to PeopleSoft). Additionally, it is recommended that the business purpose be recorded in PaymentNet in the comments field in abbreviated form, this information prints on the monthly Statement of Account (PeopleSoft)
- In addition to the business purpose of the rental car the number of days the vehicle is rented needs to be recorded in the comments field of the PaymentNet system for reporting purposes
- Approval is required by the traveler's administrative superior or designee as determined by each campus.
E. Rental Car Insurance
There are different types of insurance that are typically offered by car rental companies:
- Personal Accident Insurance (PAI)
- Liability Insurance or Collision Damage, Waiver/Limited Damage Waiver.
Under most circumstances, University employees and authorized guests are sufficiently covered by the University's self-insurance program. Therefore, purchase of insurance from car rental companies is usually not recommended and should not be purchased for U.S. and Canada rentals. Cardholders will be held accountable and required to reimburse the University if unnecessary coverage is purchased.
However, there are special circumstances which necessitate additional coverage. Employees and authorized guests should be aware of these exceptions and obtain the necessary and appropriate type of insurance which is identified below. Only in these cases, will the University allow the expense of additional insurance to be charged to the Purchasing card.
- Personal Accident Insurance (PAI)
Purchase of PAI is not necessary. There are no special circumstances which warrant its purchase, nor will it be reimbursed by the University. PAI offered by car rental companies provides coverage to the renter for death or bodily injury caused by any accident occurring during the rental period. Passengers of the "insured" driver are also covered, but only for accidents occurring while occupying the rented vehicle. Employees killed or injured in an accident arising out of their employment have death and bodily injury coverage under the University's self-insured workers' compensation program.
- Collision Damage Waiver/Limited Damage Waiver (CDW or LDW)
CDW/LDW coverage should only be purchased when:
- The vehicle is to be driven outside the U.S. or Canada, or
- The driver or renter is not a U.S. or Canadian resident, or
- The vehicle has a passenger capacity greater than eight (8), or
- Trucks or other similar vehicles are rented for the primary purpose of transporting any type of cargo or property, or
- Sports or utility vehicles are to be used off of maintained roads, or
- Rental of vehicles for use within the US and Canada by authorized foreign national guests of the University
Under any of these circumstances, CDW/LDW coverage should be purchased (as offered by the rental agency). Limits purchased should not exceed $500,000 combined single limit for bodily injury and property damage.
For all other rentals, CDW/LDW coverage is provided and additional coverage from car rental companies is not necessary. Therefore, when offered, Collision Damage Waiver (CDW) coverage should be declined. See BPM 804 Self-Insured Coverage.
The self-insured Automobile Liability program provides coverage for bodily injury or property damage liability arising out of the operation of use of university-owned or operated vehicles.
All University officers, agents, employees, authorized volunteers and authorized students are covered under this program. The self-insured Automobile Liability program provides coverage for bodily injury or property damage liability arising out of the operation of use of university-owned or operated vehicles. For detailed information on reporting requirements see BPM 706 Accidents - Rented Vehicles.
In general coverage is accepted worldwide but there are exceptions, you may be unable to use this service in Australia, Ireland, Israel, Italy, Jamaica, and New Zealand. Contact your car rental agency before traveling. Coverage is not available where prohibited by law.
This insurance program covers expenses paid for repair of damage or loss to a rental car, including personal effects, anywhere outside US and Canada, up to $50,000 per incident. Information on this program is available from your Campus Contact (see section G) or Risk & Insurance Management, or by calling 1-800-MC ASSIST (1-800-622-7747).
The maximum rental insurance period is thirty (30) days per rental agreement. If a traveler rents a new car, or renews a currently rented car, the insurance is extended thirty (30) days. Rentals charged to the purchasing card are to be for business purposes only. Portions of rental agreements extended for personal use must be paid for by the individual and NOT charged to the purchasing card.
F. Reporting Rental Car Accidents and Injuries
All rented vehicle accidents, regardless of the amount of damage or extent of injury, must be reported to the appropriate campus contact, listed in the following section, within 24 hours if injury or death is involved, or if not, then within 48 hours after the accident. This report should be completed by using the Vehicle Accident Report, Form UM-5, which can be found at: http://www.umsystem.edu/ums/departments/fa/management/records/forms/risk/. Reports must be initiated by the driver of the vehicle involved in the accident, or a passenger if the driver is incapacitated, and submitted to the employee's department as soon as possible following the accident. It must be typed for signature of both the driver and the department head or supervisor.
The University Police Department (if accident is on campus) and/or Local Police Department are to be notified immediately after the accident occurs so they may respond appropriately.
The renter must submit to the campus contact, copies of the rental agreement, the charge card receipt, police report (if applicable), and the rental company accident report. Also, a front and back copy of the renter's driver's license will be required. The campus contact will forward the report to the University's third party claims administrator listed below within 72 hours after the accident:
Corporate Claims Management, Inc (CCMI)
770 Spirit 40 Park
Chesterfield, MO 63005
Phone: 800-449-2264 or 636.519.0330
In the event of an accident, the rental company should also be advised to submit proof of loss and invoices of damages to Corporate Claims Management, Inc (CCMI). The purchasing card should be used if a damage deposit is required.
All claims must be filed with MasterCard within 30 days of the accident by calling 1-800-MC ASSIST (1-800-622-7747). When renting a vehicle with a purchasing card, MasterCard will be the primary insurance provider.
G. Campus Contact Listing for Rental Cars:
| University of Missouri System | University of Missouri - St. Louis |
|---|
Ed Knollmeyer, Director
Risk and Insurance Management
1105 Carrie Francke Dr.
University of Missouri
Columbia, MO 65211
(573) 882-3735
E-mail: knollmeyere@umsystem.edu |
Gloria Leonard, Director
Business Services
209 Woods Hall
St. Louis, MO
(314) 516-5362
E-mail: leonardg@umsl.edu |
| MU | Missouri S & T |
|---|
Pat Higgins, Manager
MU Business Services
311 Jesse Hall
(573) 882-7254
E-mail: higginsp@missouri.edu |
Randy Stoll, Director of Purchasing/Business Services
210 Parker Hall
(573) 341-4122
E-mail: stollr@mst.edu |
| University of Missouri Health Care | University of Missouri - Kansas City |
|---|
Betty Wilson, Risk Management CoordinatorK
University of Missouri Health Care
181d Quarterdeck
Dc531.00
(573) 884-9303
E-mail: wilsonbj@health.missouri.edu |
Peter Maxwell, Coordinator
Risk Management
4747 Troost Ave, Suite 003
(816) 235-5357
E-mail: maxwellp@umkc.edu
William Leutzinger, CHMM
Director, Department of Environmental Health and Safety
4747 Troost Ave, Suite 003
Kansas City, MO 64110-2499
(816) 235-1157
FAX (816) 235-6559
E-mail: leutzingerw@umkc.edu |
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
- Cash Advances
- Construction, Renovation or Installation Services
- Computer Hardware and Software
- Leases/Rentals requiring a signed agreement (unless
a master agreement is on file with Procurement Services)
- Maintenance/Service Agreements requiring a signed agreement (unless a master agreement is on file with Procurement Services)
- Software Licensing Agreements requiring signatures (unless a master agreement is on file with Procurement Services)
- Personal items or loans
- Medical Services
- Systems Furniture under contract
- Purchases involving trade- in of University property (unless prior written approval is provided by Procurement Services)
- Sales Tax
- Travel Expenses (e.g. lodging, meals, rental vehicles)
- Services of sole proprietorships, individuals, or non- incorporated businesses (These are 1099 reportable to IRS)
- Professional and Consulting Services
- Internet purchases requiring agreement to online terms and conditions (e.g. E-bay)
- Any purchase categories blocked through the purchasing card Merchant Category Codes (MCC) as determined by Campus Procurement Services
- Intellectual Property (e.g. photography services, webpage/software development)
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:
- An original receipt from the vendor including:
- Vendor Name
- Transaction Amount
- Date
- Itemized description of item(s) purchased.
- Copies or facsimiles of the original receipt.
- A packing slip or other documentation received from the vendor.
- 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.
- 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
- Alcoholic Beverages - At times there are legitimate expenditures for alcohol related to the promotion of the University's interests. A statement explaining how this expenditure benefits the University must be provided in the PaymentNet system for each purchase of alcohol products.
- Dues - Use of University funds for organizational memberships and dues may be permitted for institutional memberships in organizations that provide educational or professional service of value to the institution or to one of its component parts. Generally, University funds may not be used to pay individual personal membership dues, unless needed to discharge University responsibilities, or which provide educational, professional and other services of value to the institution. The purpose of the membership, the complete name of the organization and the name of the member should be clearly described in PaymentNet.
- Food for Human Consumption - If food is purchased for a University sponsored event/meeting and less than 10 people are attending, the names of those people must be listed in PaymentNet. If 10 or more are in attendance only the group name is necessary. The purpose of the event/meeting must also be provided. If the Approving Official attends the event/meeting, his/her supervisor must also sign the statement for approval.
- Food for Non-Human Consumption- If food is purchased for non human consumption the purpose must be provided in the PaymentNet system.
- Fuel - Whenever possible fuel should be purchased from the University
Gas Station using a University issued fuel card. (University gas station
is located on the Columbia campus) The Kansas City, Missouri S&T and
Columbia campuses utilize the JP Morgan fleet card. The St. Louis campus
allows the use of the purchasing card to outside vendors to purchase
gasoline for a University vehicle. The license number of the vehicle
for which gas was purchased must be entered in the PaymentNet system.
If fuel is purchased for other reasons it must be documented in the PaymentNet
system.
- Hazardous or Radioactive Materials - Items which may be flammable, corrosive, reactive, explosive, toxic or radioactive are considered hazardous and may be purchased with the Purchasing Card, but only by or on behalf of a person who is authorized or approved. These purchases must be reported and documented in accordance with the appropriate campus requirements.
- Incidental Expenses - Certain exceptions to incidental expenses can be made (See UM Business Policy Manual, Section 217) including, for example, flowers, personal convenience items, ho liday decorations, and greeting cards. Unusual items that do not have an obvious University purpose must have a statement in the PaymentNet system explaining how the items will benefit the University.
- Third Party Payment Providers - If a third party payment provider is being used, including for example PayPal provide documentation as to who the actual item was purchased from in the PaymentNet system.
- Logo/Licensed Items - Any item bearing one or more of the University designs, seals, trade names and symbols that have come to be associated with the University of Missouri, University of Missouri-Columbia, University of Missouri-Kansas City, University of Missouri-Rolla, or the University of Missouri-St. Louis may be purchased with prior approval of the appropriate campus licensing and trademark office.
- Transportation - Business purpose of the trip, which is required for tax purposes as an accountable plan, should be recorded in PaymentNet in Transaction Notes including the complete spelling of any acronyms (this information is available through drilldown in web financial reports after the monthly upload to PeopleSoft). Additionally, it is recommended the cardholder also record business purpose in Comments in abbreviated form because this information prints on the monthly Statement of Account (PeopleSoft). Approval is required by the traveler’s administrative superior or designee as determined by each campus.
- Gift Cards - Must be in compliance with Section 216 Awards, Gifts, & Prizes of the UM System Business Policy & Procedure Manual. In addition, Columbia campus departments purchasing gift cards for Research and or Subject Participant Payments must have prior approval from the campus Accounting Office. Gift cards may not be purchased as a means to pay for goods or services to be utilized by the University. The business purpose of the gift card must be documented in the PaymentNet system. For further information on Awards go to www.umsystem.edu/ums/departments/fa/management/business/manual/0216.shtml
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.
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:
- If a single abuse occurs by a particular Cardholder, issue a warning and inform Campus Procurement in writing.
- In the second instance of abuse, notify Campus Procurement and suspend the card for at least one (1) billing cycle.
- If problems continue after the card is reinstated, the card shall be canceled or suspended up to one (1) year.
- An Approving Official can skip all of the steps if the incident is severe enough and suspend the card permanently.
- Procurement Services can impose the same penalties stated above if problems are found during department reviews. If warnings are issued by Procurement Services, the Cardholder and Approving Official will be notified. The Vice Chancellor, Dean, or Department Head will also be notified if the card is either temporarily or permanently suspended.
- If an Approving Official is not the Cardholder's supervisor, he/she has a responsibility to notify the Cardholder's supervisor of any policy violations.
4.3 Department Penalties
Procurement Services may impose penalties for any of the following occurrences:
- If transactions are not reviewed in the PaymentNet System and signed statements are not provided to Procurement Services by the 10th of each month.
- Repeated Cardholder abuse and/or department abuse.
- Improper Documentation
When penalties are imposed the following process will occur:
- At the first instance, a warning will be issued to the Approving Official and the problem turned over to Internal Auditing if it is severe enough.
- If things are not corrected after a second review, the Vice Chancellor, Dean, or Department Head will be contacted and cards for the entire department may be suspended for at least one (1) billing cycle.
- After a third review, cards may be canceled up to one (1) year.
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
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
Purchasing Card Application (PDF 18 KB)
