» Posted February 1, 2007

Purchasing Card Update: AccessPlus system transaction screen

Effective February 2, the p-card system transaction screen will be changed to incorporate expandable sections for fields which are not used for most transactions.

If the transaction needs to be reallocated to more than one fund, click on the plus sign (+) next to Additional Funds Required to display fields for funds 2 through 6.

If hospitality information needs to be entered, click on the plus sign (+) next to Hospitality Information to display the hospitality fields.  Transactions to supermarkets, restaurants, and hotels will automatically display these fields.

  » Posted January 19, 2007

Purchasing Card Update: Compliance Reviews & Best Practices

The purchasing department monitors the purchasing card (p-card) program by conducting compliance reviews with participating departments.  These reviews help us resolve problems with the use of the p-card, identify areas where improvements could be made, and recognize best practices in the use and administration of the program.  Several aspects are considered in evaluating whether cardholders in a department are in compliance with p-card program policies and procedures. 

These areas include:

1. Proper identification of good/services purchased.
2. Proper documentation (original receipts).
3. Retention of receipts for the required five years.
4. Proper use and documentation of hospitality expenditures.
5. Allowability of purchases.
6. Utilization of sales tax exemption.
7. Purchases within authorized expenditure limits.
8. Protection of the card.
9. Departmental purchasing card process, including appropriate segregation of duties.

 After conducting a number of compliance reviews, purchasing has identified some areas where departments commonly have problems:

 ·         Transaction Descriptions      Sometimes departments use a description that states a general category of items (e.g. lab supplies or office supplies), rather than describing what goods/services were purchased.  The description should reflect what is listed on the receipt (e.g. cameras, calculators, two-way radios, TV/VCR, cleaning products, paper goods, etc.). 

·         Itemized Receipts    In some cases we find that itemized receipts are not being kept for certain transactions. The itemized receipt is required to detail what was purchased for all transactions, but it is especially important for hospitality transactions at restaurants. This serves as a record of how many meals were purchased and whether alcoholic beverages were included in the bill.  Credit card receipts that show only a dollar total are not considered sufficient documentation.

 ·         Hospitality   Participant names are sometimes missing or incomplete on the transaction screen.  Recording participant names for hospitality transactions is an IRS requirement.  The names also serve as a way to verify the number of people in attendance and that the event was not strictly departmental in nature.  

 ·         Travel   Some cardholders are using the p-card for employee travel expenses, including airport parking fees, hotel rooms, airline tickets, limousine services, and meals for employees while traveling or attending meetings.  Travel expenses are considered to be personal expenses that are reimbursable and are not allowed on the p-card.

·         Restricted Items    There are items that are restricted from the p-card because of contractual issues, University policy, or tracking issues. The restricted items most commonly purchased using the p-card appear to be photocopying, printing, cell phones and service, furniture (desk chairs), and food for events involving only departmental employees.

It is not uncommon for the purchasing department to conduct cardholder retraining for departments following a compliance review.   These sessions are generally scheduled to take place at a location within the department, so it is convenient for the cardholders to attend.  Even if a department has not had a compliance review, retraining for cardholders may be requested by contacting the purchasing department at 4-4860.

In addition to identifying areas needing improvement, we have also noted that some departments have implemented “best practices” that we would like to share with other units:

·         Reimbursement for Personal Purchases    When a cardholder reimburses the department for a personal purchase made on a p-card, file a copy of the on-line deposit (cash report) with the p-card documentation.  This provides a fast and easy way to verify that the reimbursement was received.

·         Gift Cards         When gift cards are purchased with the p-card, include with the documentation an explanation of the protocol used to distribute the cards and who received them.  Departments have accomplished this by attaching a list of recipient names to the receipt or by obtaining signed receipts from the individuals receiving the cards.   One department purchased a receipt booklet to use for this purpose.  Another department printed their own receipt on ISU letterhead.  Providing the names offers a way to verify the number of recipients and the number of gift cards match.  It also serves to show that ISU employees were not recipients of the cards.  In cases where confidentiality is an overriding concern, departments can contact the purchasing department for suggestions on how to handle the documentation.

·         Using Contract Vendors        Several departments have taken advantage of our volume discounts by using our contracted vendors to make their purchases.  Two examples have been buying office supplies through the Office Max contract and buying computer peripherals, software, and electronics through CDW Government. Available contracts are listed on the Purchasing website along with contact and use information.

If you have questions about p-card program guidelines, or would like to schedule a compliance review for your department, please contact Shari Russell at 4-4573 or sjrussel@iastate.edu.

  » Posted November 1, 2006

Purchasing Card Update: New P-cards

In early November, each cardholder will receive a new purchasing card with a new account number in the mail from USBank.  This is part of a platform migration which will allow the purchasing department to improve customer service to our cardholders by using USBank's on-line management tools.

The new card will be sent to the address listed on the monthly cardholder statement, and should be activated as soon as it is received.  Old cards may be destroyed and disposed of at that time.

Current cards will be active until the new cards are activated.  The purchasing department and USBank will monitor these activations and will contact cardholders if the new cards are not activated in a timely manner.  For assistance with activation, please call the purchasing department help desk at 294-4860.