Welcome

Purchasing Cardholder Orientation

Marilyn PowellPurchasing Card Coordinator

Manual of Business Procedures

• http://ctlr.msu.edu/COMBP/Default.aspx• Section 271 – Purchasing Card• The MSU Manual of Business Procedures is

coordinated by the Office of the Controller to provide information regarding proper University business procedures and fiscal oversight.

• Have you read it?

Purchasing Card Website• http://

usd.msu.edu/purchasing/purchasing-card/pcard-users-manual.html

• Pcard User’s Manual & Exhibits• Applying for a Pcard• Updating Cardholder Information (PCMD)• Extra Tips • Canceling a Pcard• Orientation Schedule

NAEP Code of EthicsNational Association of Educational Procurement Code of Ethics

Purchasing professionals must possess strong ethics to protect their own and their institution’s reputation for fair dealing. To strengthen ethical awareness and to provide guidelines for its members, NAEP has long promoted a code of ethics

Bit.ly/naepcode

NEVER SHARE YOUR CARD

NO PERSONAL PURCHASES

Statistics

• 3400 Cards at MSU• 16,000 transactions per month• $43,000,000 per year

Limits

• Single Purchase Limit = $2500• Cycle Spending Limit = set by

department• Bank Billing Cycle = 25th-24th

–Starts on the 25th of the current month and ends on the 24th of the next month

Changes to Your Card

• Pcard Maintenance Document (PCMD)• PCMD is used to either request a new card or

make a change to an existing card• Can be initiated by anyone who is a financial

document preparer in KFS• Routes to the cardholder if he/she was not the

initiator• Always routes to the FO

Changes to Your Card

• Types of Changes include:– Cycle Spending limit (> $25K needs DDC approval)– Last Name– Address– Phone number– Account Number– Email Address– Card Cancellation/Suspension

PCMD – Changes

PCMD - Changes

PCMD - Changes

PCMD - Changes

PCMD - Changes

PCMD - Changes

PCMD - Changes

Pcard Transaction Log – Exhibit C

Restrictions

Ordering Tips

• Is the item available through Stores stock or Open Orders?

• Food – MBP Sec. 45 – no restaurants/caterers• Internet/Fax/Email orders – use caution• Conferences – registration only – no

meals/lodging

Receipts

• Must be ITEMIZED• Must be legible • Receipts w/business purpose noted are to be

scanned and attached to the edoc in KFS • Verify that attachments are readable

Trouble Shooting

• Returns, credits, and follow-ups are the responsibility of the cardholder

• Contact merchant for resolution• Make note on log sheet• Return authorization number may be required • Watch to make sure a credit or replacement is

received

Why Your Charge Was Denied

1. Reached your cycle spending limit2. Transaction is over $25003. Merchant uses wrong expiration date

Contact bank customer service using the number on the back of your card if you need further assistance

Reconciliation in EBS

• Check with your business office to determine your unit’s documented process (electronic vs paper)

• If using paper reconciliation, where are they filed?• Pcard edocs (PCDO) appear in your KFS Action List –

so it is important to monitor your Action List regularly • Have all receipts available to scan and attach to the

edoc• Know what you are approving!

Things to remember about a PCDO

• All PCDO’s are system generated• Initiator is KFS• PCDO’s are created automatically during a

batch process that runs overnight• Transactions are grouped by cardholder, by

posting date per eDoc• Cannot be disapproved or canceled

Action List

Action List

Elements of the PCDO

Elements of the PCDO

Elements of the PCDO

Elements of the PCDO

Elements of the PCDO

Use the ad hoc feature sparingly!! Check the Future Action Requests section in the Route Log Tab and do not ad hoc route to a person who is already in the established workflow .

Elements of the PCDO

Workflow

• Upon creation of the PCDO it is routed to the Cardholder for approval

• Cardholder has 7 calendar days to approve the transaction, attach receipt(s), indicate business purpose and make any necessary accounting adjustments

• If cardholder does not take action after 7 days, the PCDO auto-approves to the FO

Workflow• After cardholder approval the PDCO moves on to the Fiscal Officer

(FO) for approval• The FO has 38 days to approve the eDoc before it will auto

approve• The FO must check to make sure the cardholder has made the

necessary accounting changes, attached the receipt(s), indicated the business purpose

• Note: any financial document preparer can scan and attach an invoice or other back-up documentation

• If the cardholder and the FO are the same person, a note will pop up reminding the FO to ad hoc route the edoc to their Supervisor

Workflow

Cardholder has 7 business days to

approve before PCDO auto-approves

FO has 38 days to approve before PCDO

auto-approves

45 days

Pending ledger entry

Workflow

Pcard Document Enroute status action required

Doc ID: 1111111

PCDO Create Date: 05/13/2013

Cardholder: Anderson, Wendy

Last 4 digits: 1111

PCDO approval date has exceeded 31 days. Fiscal Officer immediate action required. Email notification was sent to

Pcardholder, FO and Organization Manager.

WorkflowPcard Document Auto Approved

Doc ID: 1111111

PCDO Create Date: 05/13/2013

Cardholder: Anderson, Wendy

Last 4 digits: 1111

PCDO has auto approved. The Fiscal Officer is required to enter a note in the finance system in the Notes and Attachments

tab that the PCDO transaction receipts were reviewed and are appropriate after the auto approval.

In addition to adding this note, one of the following actions must be taken per your unit's policy and procedure.

Option 1: Scan and attach the receipts in the Notes and Attachments tab of the PCDO after the fact.

Option 2: Print a BI Purchasing Card Statement to which the hard copy of the receipts must be attached and required signatures applied.

Any questions please contact the Pcard Administration Team at 517-884-6080 or send an email to emailpurchasing@usd.msu.edu.

Thank you.

Workflow

• If the cardholder is also the FO, a note will appear on the screen

Disputing a Transaction

• Charged for something you never received • Fraud - charged for something you didn’t

order • Charged twice for same item • Charged more than quoted• Item received damaged• Credit never received

Disputing a Transaction

• All disputes must be made within 60 calendar days of the transaction

• Attempt to resolve with merchant first• Use “Statement of Questioned Item Form”

(Exhibit D) to file a dispute with the bank• Make a note in the edoc and the transaction log

regarding the dispute reason • Check the dispute button on the edoc

Statement of Questioned Item Form

Exhibit F

Elements of the PCDO

Fraudulent Activity

• You may receive an email or phone call from the bank indicating possible fraud on your card

• Don’t give out personal information until you have verified that the email or phone call is not a phishing attempt

• Contact the bank using the number on the back of your card or in your training materials to determine the validity of the charge

Fraudulent Activity

• If it is determined to be fraud, the bank will cancel the card, send a replacement card, issue a temporary dispute credit to your account and send you an affidavit via US mail

• Be sure to sign and return the affidavit immediately• If the bank investigation concludes that you did

indeed make the transaction, the temporary dispute credit will be reversed and your card will be re-charged

Know the Difference!

• Fraud - when a card number has been compromised and used by someone other than the cardholder

• Misuse - when a cardholder makes a purchase that is not allowable per the User’s Manual or MBP

• Personal Use - when a cardholder uses the card to buy items for their personal use

Consequences

• Fraud – if reported appropriately, you (MSU) will not be liable for the charge

• Misuse – your card may be suspended or canceled

• Personal Use – revocation of the card, discipline up to and including termination, restitution and possible criminal charges.

Lost or Stolen Cards

• Report immediately to the bank • Liable for any charges up to the point of

cancellation• No charge for replacement card• Normally takes 10-14 days• If stolen on campus, report to DPPS

Audit

• Internal Audit, Contract and Grant Administration and/or the Pcard Team will conduct periodic audits of pcard activity

• Pcard Team also performs compliance reviews to ensure that policies and procedures are being followed properly

• Fiscal Misconduct – if you suspect another employee is doing something they shouldn’t be doing, you should call the Fiscal Misconduct Hotline 1-800-763-0764

Conflict of Interest

• As a pcardholder, you must assure that the University does not knowingly enter into purchase commitments which would violate Michigan law or result in conflict of interest related to University policies including the MSU Employee Handbook. Questions regarding possible conflicts of interest should be directed to the Pcard Team.

Miscellaneous

• Leaving your department• Leaving MSU• Manual and forms are on the website • Frequently Asked Questions• NEVER SHARE YOUR PCARD• DO NOT USE FOR PERSONAL USE• Do the right thing!

Questions

Conclusion

• Make sure you signed the Sign-In sheetand

HAPPY CHARGING!