Procurement Card Information

  • General Information

    The purpose of the Procurement Card Program (BPC) is to establish a more efficient, cost-effective method of purchasing and paying for small dollar transactions. The program utilizes a VISA credit card to consolidate many small dollar transactions and make one monthly payment to the sponsoring bank. The card can be used for in-store purchases as well as mail, phone, fax, or on-line orders.
    Your feedback regarding this program is important!
    If your have any questions about the program, or need additional information, please contact the business person in your department/unit or contact the Purchasing Office.

  • How to Obtain a Card

    Your department/unit must indicate approval and advise the BPC Coordinator in the PSU Purchasing Office of any dollar limits imposed upon the card by filling out the Procurement Card Cardholder Agreement. Upon approval, the department/unit will forward the agreement to the BPC Coordinator in the PSU Purchasing Office. The BPC Coordinator will acquire the card, notify you when it is available for pickup, and provide cardholder training.
    Any changes to the card can be made by contacting your department/unit business officer. When you receive your card, sign the back of the card immediately, call to activate it, and always keep in a secure place.
    Although the card is issued in your name, it is the property of the State of Kansas and is only to be used for University purchases as defined on this web page.

  • How to Lose Card Privileges

    A cardholder will have his/her Procurement Card canceled/suspended due to, but not limited to, the following situations/abuses:

       ⇒  unauthorized user
       ⇒  unauthorized purchases
       ⇒  chronically late transaction log
       ⇒  insufficient itemized receipts

    When appropriate, a cardholder will be subject to the following actions when abuse of the procurement card program is discovered:

       ⇒  First offense - reminder sent to cardholder citing the infraction
       ⇒  Second offense - suspension of the BPC for six months
       ⇒  Third offense - BPC canceled

     

  • How to Cancel a Card

    If a cardholder leaves a department or assumes different duties that do not require the use of the procurement card, the department is responsible for retrieving and cutting up the card and contacting the Purchasing Office by e-mail to cancel the card. If a cardholder moves to another department, the old department's card does not transfer to the new department. The new department must initiate the process to obtain a new card by completing a Business Procurement Cardholder Agreement form which can be found on the Purchasing Office web site, under "Forms". The procurement card needs to be canceled immediately if a cardholder terminates employment.

  • Card Renewal

    A renewal card will automatically be mailed to all cardholders prior to the expiration of the old card.

  • How to Report a Lost or Stolen Card

    If a procurement card is lost or stolen, immediately notify UMB Bank Security at 1-888-494-5141 and the Purchasing Office.

  • Procurement Card Security

    Each department needs to determine how to secure the cards and card numbers. In some areas it is more appropriate for individuals to carry the cards. In other areas, the cards may be stored in a secure place in the department's office. In either case, the card and account number should be secured in the same manner you would secure your personal credit card. Never send your BPC account number to anyone via e-mail. Only send your BPC account number via secure encrypted web sites or by fax. Procurement cards should only be used by the cardholder whose name appears on the card.

  • Cardholder Responsibilities - General Information

    The purpose of the Business Procurement Card program (BPC) is to provide an efficient, cost-effective method of paying for most department transactions. This program is designed to replace the DPR and personal reimbursement process whenever possible. The BPC can be used for in-store purchases as well as mail, phone, fax or internet orders.

    This section provides the guidelines under which you may use your procurement card. Please read it carefully. Your signature on the BPC Agreement indicates that you understand the intent of the program and agree to adhere to the established guidelines. After receiving training on the use of your procurement card from the Purchasing Office, you may begin using it immediately.

    Accurate record keeping is essential for the success of the program. Standard payment policies require retention of receipts, and other documentation. As with any charge card, you must retain sales slips, cash register receipts, order forms and receiving documents. A BPC Transaction Log is required to be maintained by each cardholder/reconciler in order to complete the reconciliation process. This Transaction Log is available to all reconcilers on the Gus system. The billing cycle for all cardholders will close on the 3rd "business day" of each month.

  • Receipt of Goods and Materials

    The cardholder is responsible for ensuring receipt of goods and materials and will follow-up with the vendor to resolve any delivery problems, discrepancies and damaged goods.

    For telephone, catalog and on-line orders, make sure complete shipping address and instructions are given along with your name (e.g., name, department name, complete street address, room number, city, state, zip code). When ordering on-line be sure to print out a copy of your completed order form.

    If goods or materials are ordered by phone, ask the vendor to include a detailed sales receipt in the package, and explain we are a tax exempt organization. Save the credit card receipt and shipping document.

  • Record Keeping, Reconciliation & Approval

    To facilitate the reconciliation and approval process, the cardholder is responsible for keeping all credit card slips, cash register receipts, packing slips, etc. All documentation should be kept together and forwarded to your department/unit business officer. Please note - each department/unit may have different approval processes.

    To obtain a copy of a charge or credit slip, call the UMB Commercial Cards Product Group at 1-800-821-5184. There will be a $2.00 charge for each copy which will be billed to your card.

    A statement will be sent to the cardholder monthly for reconciliation. DO NOT PROCESS A DPR FOR THIS STATEMENT. The Purchasing Office will prepare the monthly payment document utilizing information on transaction logs prepared by the department/unit business officer.

  • Allowable Purchases

     

    Most cardholders have a monthly purchase limit of $5000 and a per transaction maximum of $2000. Purchases from $2000 to $5000 will be allowed provided they meet the standard purchasing guidelines (i.e. three bids are received). Purchases in excess of $5000 must be bid by the Purchasing Office. Once approved, the cardholder will be given temporary approval to complete the transaction on their BPC.

    All purchases for commodities, where State Contracts are in place, must be made from the contract suppliers. A few of those contract vendors are Staples/Corporate Express (office supplies); Grainger (industrial supplies); Enterprise (vehicle rental); Software House Intl (software); and Dell, HP, Microtech, and Apple (computers).

    Purchases must be for the use and benefit of the University. NO PERSONAL PURCHASES ARE ALLOWED. All purchases for commodities or services, where State Contracts are in place, must be made by the contract suppliers. Items available through the "Kansas Industries for the Blind and Handicapped" catalog must be purchased from participating vendors.

    Some vendor types have been blocked from usage with the BPC. If you present your card to any of these merchants, the transaction will be declined. If you are declined and feel the decline should not have occurred, please contact the Purchasing Office during normal business hours. You may also contact UMB Bank Customer Service at 1-888-494-5141 to determine if you were declined because of the merchant category code (MCC) or if you have exceeded the monthly cycle limit or the single transaction limit imposed on your card.

    Examples of vendor codes that have been blocked are:

    Package liquor stores

    Insurance Services

    Restaurants

    Examples of vendor codes that might be blocked are:

    Hotels and Motels

    Car Rental Agencies

    Airlines

    Travel Agencies

    Gas Stations

    Examples of vendor codes that cannot be purchased with the card:

    Alcoholic beverages

    Cash Advances

    Gift Cards

    Personal Items

    Purchases involving trade-in of University property

    Weapons, Ammunition

    Merchants are generally paid by UMB Bank within three days of your business transaction. Please indicate to merchants that they MUST NOT invoice the University, in addition to the detailed charge receipt, as an invoice could result in duplicate payment. Please request merchant to give a detailed description of goods, not just "miscellaneous".

    The Procurement Card is NOT intended:

      • to avoid or bypass appropriate procurement or payment procedures.
        Rather, the procurement card complements the existing processes available.

      • for PERSONAL USE

    • for entertainment expenses

    Purchases may be made from England, Canada and Australia without prior approval from UMB, but purchases from other countries do required pre-approval.

    You are responsible for the security of this card and the transactions made against it. The card is issued in your name and any purchases made against the card will be your responsibility. Use of the card not in accordance with guidelines established may result in personal liability. Remember, you are committing university funds each time you use the procurement card.

  • Procedures & Guidelines for Travel Expenses

    The Business Office assists all university personnel with travel policies and reimbursements.

    • University personnel may be required to travel in fulfilling their official duty or in attending seminars or other professional or educational activities benefiting the University. Travel authorization is given in most instances by the Chairperson of the Department or by the appropriate administrator prior to travel. It is the policy of Pittsburg State University that any University employee traveling on University business shall submit a "Travel Request Form" for those trips exceeding $1000 in total estimated expenses. For information go to http://www.pittstate.edu/office/business/travel.dot
    • If any vacation or personal time is taken during a business trip or there is anyone not on state business (i.e. spouse) going along on the trip, the BPC cannot be used (this includes a rental car, lodging and fuel).

    The following travel expenses will be allowed on BPCs:

    • Airfare & associated charges
    • Lodging
      • Must follow state allowed rates. See Quick Reference
        http://www.da.ks.gov/ar/employee/travel/travltri_11.pdf
      • If staying at a hotel where the rate is above the state maximum allowed rate, the lodging must be paid out-of-pocket and the allowed amount will be reimbursed after the trip.
      • Kansas and Missouri motels are tax exempt for the state taxes (you may be charged for the other lodging taxes). If paying for lodging (in Kansas or Missouri) with a BPC and the hotel charges sales tax, the department must request a refund from the hotel.
      • If using a BPC for lodging, all personal charges (i.e. room service, movies, etc) must be paid with a personal credit card. The hotel clerk should be instructed to use the personal credit card for the personal charges. If personal charges are accidentally paid through the BPC, the traveler must reimburse those expenses as soon as they return from their trip.
    • Tolls
    • Business calls
    • Business Internet charge
    • Parking
    • Rental Car
    • The Enterprise Reservation Request Form has been updated to include a Payment Information section where the type of credit card is provided
    • Rental Car Fuel (NOT fuel for your personal vehicle)

    Each traveler is recommended to have a BPC in their own name.

    • Exceptions will be allowed for infrequent travelers. In such cases, they may use the department's BPC for airfare, lodging, and rental car if the cardholder approves the use of the card. The cardholder is responsible for making sure the traveler follows all guidelines and the card is subject to the below listed consequences for personal use as well as BPC guidelines.

    • Students are considered to be infrequent travelers.

    • Candidates' and non-employees' (i.e. speakers) airfare, lodging, and rental car expenses can be charged to the department's BPC.

    Non-Approved Travel Expenses

    • Any personal charges accidentally paid through the BPC must be immediately reimbursed. The traveler will not be reimbursed any allowable expenses until the personal portion is reimbursed to PSU. The personal portion will not be withheld from the traveler's allowed reimbursable expenses.

    • The BPC cannot be used for the purchase of fuel in personal vehicles (rental car fuel only), even if traveling on official business. Fuel for personal vehicles must be claimed for reimbursement on a Travel Expense Detail Form.

    • If staying at a hotel where the rate is above the state maximum allowed rate, the lodging must be paid out-of-pocket and the allowed amount will be reimbursed after the trip.

    • If there are personal travel expenses paid through the BPC, the following consequences will be enforced. The offences are on a per trip basis.
      • First offense- reminder sent to the cardholder to not charge personal expense to the BPC
      • Second offense- lose ability to charge travel expenses to the BPC for two months
      • Third offense- lose ability to charge travel expenses to the BPC permanently

    • The regular BPC guidelines must be followed (detailed receipts, turning in receipts timely, etc) and consequences for not following them are applicable. Travel expenses may not be paid through the BPC during the time it is inactive due to noncompliance with regular BPC guidelines. The BPC Travel Form must be submitted with the monthly reconciliation of your BPC account. http://www.pittstate.edu/dotAsset/142445.pdf

    Procedures for Canceled Travel

    • If a trip was canceled for personal reasons, the traveler will have to reimburse those expenses paid in advance with the BPC. If an airfare credit was obtained; the traveler must reimburse PSU for the credit in addition to any amount not credited.
    • If a trip was canceled for business reasons, due to emergency, or medical reasons, the traveler will not be responsible for those expenses paid in advance with the BPC. Any airfare credits not applied directly to the BPC should be presented back to the department to be used on the traveler's next trip.
  • Department/Unit Responsibilities - General Information

    The department/unit head determines who is eligible for a card, and authorizes cardholder limits. The department/unit business officer will audit and sign transaction logs, control spending through the bank summary review and maintain records.

    A potential cardholder is sent a BPC Card Process Manual and the Cardholder Agreement. The department/unit business officer should complete the Agreement identifying the cardholder and the limits to apply to the card. Once approved, send the original to the BPC Coordinator in the Purchasing Office who will initiate the card issuing process with the bank. The BPC Coordinator will arrange training for the cardholder prior to distribution and use of the card.

    If an employee leaves the department or assumes different duties that do not require the use of the procurement card, the department/unit's business office is responsible for retrieving and cutting up the card and sending it to the BPC Coordinator in the Purchasing Office. If an employee moves to another PSU department, the old department's card does not transfer to the new department. The new department must initiate the process to obtain a new card for the employee.

    Each department/unit needs to determine how to secure the cards and card numbers. In some areas it is more appropriate for individuals to carry the cards. In other areas, the cards may be stored in a secure place in the department/unit's business office. In either case, the account number should be protected. Cards must only be used by the person whose name appears on the card.

    If changes in the limits established on the card or other elements (other than cardholder name or department) are required, contact the Purchasing Office.

  • Reconciliation and Approval Process

    The department/unit business officer is responsible for editing and approving Procurement Card Transaction Logs. Funding and descriptions should be corrected before the log is approved and sent to the Purchasing Office.

  • How to Audit a Procurement Card Transaction

     

    Before approving the posted transaction, check to be sure the vendor name matches the credit slip/packing slip. If the vendor name does not match, make sure that there is not another transaction that it applies to. Do not approve a transaction unless the cardholder has a credit slip, cash register receipt, packing slip, etc.

    Check to make sure the "Ship To" address on the documentation is correct. If not, it should be investigated. Note partial shipments on the transaction log.

    Note any sales tax charged. Enter a separate log entry for the tax charged. Work directly with the vendor to obtain a correction.

    Check packing slip for freight terms. On contract items, freight terms must agree with the contract terms. If inappropriate purchases appear, the employee should supply a justification. If the justification is insufficient, appropriate measures should be taken. In addition, steps should be taken to return the goods or the employee should pay the vendor directly.

    The approved transaction log and supporting documentation should be sent to the Purchasing Office for auditing and payment after the authorized person has signed the log. BE SURE TO FORWARD THE TRANSACTION LOG TO THE PURCHASING OFFICE WITHIN 5 BUSINESS DAYS AFTER THE INITIAL E-MAIL NOTIFICATION TO COMPLETE THE LOG.

  • Payments/Account Distribution Process - General Information

    Department/unit should send transaction log with supporting documentation to the Purchasing Office for review and payment WITHIN 5 BUSINESS DAYS AFTER THE INITIAL E-MAIL NOTIFICATION TO COMPLETE THE LOG.

    Disapproved transactions will be communicated to the department/unit immediately for resolution. Any discrepancies and/or disputes should be communicated to the Purchasing Office immediately.

     

  • Paying the Bank

    At the same time the cardholder receives a monthly statement, the Purchasing Office will receive a master statement from the Bankcard Center. The Purchasing Office will initiate a DPR to pay the bank upon receipt of the master statement.

  • Fraudulent Charges, Errors, Disputes, Returns and Credits

    The cardholder is responsible for contacting and following up with the vendor on any erroneous charges, disputed items or returns as soon as possible. (Most issues can be resolved this way.)

    In regards to fraudulent charges or any other unresolved charges, the cardholder or reconciler will complete a "BPC Transaction Dispute Form" and fax it as soon as possible to UMB Bank for resolution with the vendor. An additional copy should be sent to the Purchasing Office. The disputed charge will need to be funded on the log and the description should read, "Disputed Charge". When a credit given for the disputed charge, the reconciler will use the same funding and the description should read, "Credit of Disputed Charge from ___________ (transaction date)".

    The bank must be notified of any disputed items within 60 days of the last cycle in which the item was purchased. The cycle closes on the 3rd business day of each month. Disputed billing can result from failure to receive goods or materials, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. In the event of fraud notify the Purchasing Office immediately.

    Fraudulent activity on any BPC will be reported to the University Police.

     

  • Sales and Use Tax

    Pittsburg State University, as an agency of the State of Kansas, is exempt from paying Kansas sales or use tax per KSA 79-3606(b). This applies to all university department purchases, except those made with 844 funding (primarily student organizations). The University's tax exempt certificate number appears on the front of the procurement card. BE SURE TO REMIND THE VENDOR OF THE UNIVERSITY'S TAX EXEMPT STATUS WHEN MAKING A PURCHASE. If a Tax Exempt Certificate is needed, please contact the Purchasing Office for a copy of the Kansas tax exempt certificate. For purchases physically made in Missouri, Texas and North Dakota, you will be required to present a copy of the university's tax-exempt certificate for that state. If a vendor does charge tax and it is over $5.00, that tax charge should be split out of the total amount on the log and made a separate entry with a description of "TAX". Work directly with the vendor to obtain a correction. Sales tax less than $5.00 does not have to be credited back, but is recommended.

Purchasing Office, fax# 620-235-4166