Departmental Card 101: Implementing and maintaining a one card solution

Presented by Tracye Eades Mickle

Florida International University

2015 PCards on Campus Conference

PART I

Topics Covered in Today’s Session:

• About FIU & our various card programs

• Introduction to a “One Card Solution” type program

• Internal program structure setup

• Identifying the appropriate roles: Cardholder, Approver, & Reconciler

• Card set-up and controls, including: MCC set up, establishing spend

limits, Cardholder Manual, and Forms.

About FIU: Home of the Golden Panthers

• Founded in 1965

• With a student body of over 46,000 we are one of the 25 largest

public universities in the nation.

• We employ 5,000+ Employees

• We have campuses in Doral, Downtown Miami, Broward, South

Beach, and Biscayne Bay.

• Our Colleges and Schools offer over 180 Bachelor, Masters &

Doctorate Programs including the Herbert Wertheim College of

Medicine and the Rafael Diaz-Balart College of Law.

• Division I-A Athletics

• Conference USA

About FIU

The Food Network & Cooking Channel South Beach Wine & Food Festival presented by FOOD & WINE is a national, star-studded, four-day destination event showcasing the talents of the world’s most renowned wine and spirits producers, chefs and culinary personalities. Hosted by Southern Wine & Spirits of Florida and Florida International University (FIU), the Festival benefits the Chaplin School of Hospitality & Tourism Management's Wine Spectator Restaurant Management Laboratory and the Southern Wine & Spirits Beverage Management Center at FIU. To date, the Festival has raised more than $20 million for the School. http://www.sobefest.com/about.php

About FIU Card Programs

• Established in 1999

• Our Programs include:

1. The Departmental Card- University liability

2. The Travel & Entertainment (T&E) Card- Joint Employee

and University Liability

3. The SUA (ePayable) Card Program- University liability

• 900+ Cardholders

• 40MM+ combined spend in 2013/2014

• Visa Platform

• PeopleSoft 9.2

Welcome to a One Card Solution Program- Part 1

What is a One Card Solution?

The FIU One Card Solution is a ProCard that is controlled by three, purchase

specific categories that is geared towards a cardholders primary purchasing

need:

• Commodity Purchases Only

• Travel Purchases Only

• Dual (Both Commodity and Travel Purchases)

It’s Three Cards in One

Who Should be a Cardholder?

• The Card should be issued to the actual employee responsible for making

purchases on behalf of their unit, we do not allow “card sharing”.

• At FIU, we limit this privilege to full time employees only.

Who Should be an Approver?

• This employee must not be subordinate to the Cardholder. This business

practice is vital to maintaining the integrity of the card program; as

employees with the Approver role must be able to complete

their required review duties with full autonomy.

• They are able to submit transactions for final approval.

• At FIU, we limit this privilege to full time employees

only.

Who Should be a Reconciler?

• Based on need, we have also established a Reconciler Role. This employee

can enter descriptions, attach receipts, and update the accounting

distribution.

• However, they are unable to submit transactions for

final approval.

• The employee can be a subordinate to the cardholder.

• At FIU, we limit this privilege to full time employees only.

Finding the Right Fit

• The card profile should be assigned based

on the cardholders anticipated purchasing

needs.

• As part of the Cardholder application and

training process, the cardholder will be

advised of all responsibilities and limitations

to their card privileges including penalties

for misuse of the card.

Card Profiles: Commodity Use Only

This profile is issued to the university employee responsible for making

commodity type purchases on behalf of their departments or program.

It requires the cardholder to understand the commodity card rules and

regulations and to provide documentation for all transactions.

Card Profiles: Travel Use Only

This profile is issued to the university employee responsible

for making travel arrangements for their departments or

program; this employee will act as a travel liaison for their

area and not designed to be used for their individual travel.

It requires the cardholder to understand the University Travel

Policy and procedures and the travel card rules and

regulations. They are required to provide documentation for

all transactions.

Card Profiles: Dual Use (Both Commodity & Travel)

This profile is issued to the university employee responsible for

making commodity purchases and travel arrangement for their

department or program.

It requires the cardholder to understand the commodity and travel

card rules and regulations and to provide documentation for all

transactions.

Card Profiles: Standard Override

This is a temporary card profile that is used

internally by the Card Administrator to allow a

purchase on a card from a merchant that falls

under a restricted MCC.

Commodity Use Only Profile Commodity Use Only Profile (w/telecom)

Travel Use Only Profile

Dual Use Profile Dual Use Profile (w/telecom)

Standard “Over Ride” Profile

Establishing “Starter” Limits

The initial, standard limits assigned to the

Departmental Card are established to meet the

purchasing needs of their assigned profile.

• If a Cardholder should need to make a purchase

that exceeds their limits, they must submit a

Temporary Maintenance Request form.

• Under no circumstances do we allow a

Cardholder to request the merchant/vendor to

split charges to avoid the single transaction limit.

• We allow temporary limits to remain for up to 3

consecutive billing cycles.

Customizing Spend limits

All cardholders begin with our standard “starter” card limits.

Annually we review our cardholders spend and evaluate if they

are set at appropriate credit limits.

If we note the trend that a cardholder is spending at their

maximum limit or we receive 3 or more requests to temporarily

increase their limit, we recommend a permanent increase.

However if we note that a cardholder’s credit limits are not used,

we adjust their limits to correlate to their actual spend.

Internal Control:

Organizing the Manual

The One Card Manual is organized into 13 components:

• Section 1-3: The overall program rules and regulations

• Section 4: Topics specifically to Commodity Use

• Section 5: Topics specific to travel related purchases.

• Section 6: Consequences for infractions

• Section 7: Fraud awareness

• Section 9-10: Information on the technological aspects of the program (ERP and/or banking software)

• Section 11-13: Glossary of key program terminology, a form annex with live links to all program forms, directory of program contacts.

Sample: Section 1-3

Sample: Section 4

Sample: Section 5

Sample: Section 6

Sample: Section 7

Sample: Section 11-13

Internal Control: Forms & Documentation

FIU has taken a very standardized approach to cardholder maintenance.

Requests for account changes and overrides are:

• Uniform

• Clear

• Consistent

• Ensure that the proper level of authorization is obtained prior to changes

Sample: Application & Cardholder Agreement

Sample: Replacement Receipt & Temporary Maintenance Request

Sample: Authorization to Purchase Food & Transfer of Charges Form

Sample: Approver Update & Card Cancellation Form

Visit Us Online: http://finance.fiu.edu/controller/QL_CC_Solutions.html

Coming up next .…...

Thank you for joining us for the first part of this 2 session presentation on establishing a One Card Solution program.

Please join us for the second half of this presentation, where we will cover:

• Internal Controls, including

• Reviews & analysis

• Establishing an Admin Manual

• Data mining

Questions????