Procard Program Operational Guideline

Procard/Travel Card Administration (PTCA)

July 25, 2012

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Procard/Travel Card Administration (PTCA)

Effective January 2, 2012

The Procard Office began operating under Financial Affairs reporting to the Controller's Office

Relocated to University Heights (UH Tech2)

Address: 5723 University Heights Blvd Suite 500, Dept. 1.216

San Antonio, TX 78249

The new office, PTCA administers the State of Texas contracted Citibank credit card program

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PTCA Staff Contact information– Lisa Bixenman

Credit Card Program ManagerPhone: 210-458-7993Email: lisa.bixenman@utsa.edu

– Anne JacksonProcard Specialist Phone: 210-458-4059Email: anne.jackson@utsa.edu

Email: procard.travelcard@utsa.edu

Fax: 210-458-4849

PTCA website: http://utsa.edu/financialaffairs/ptca/

Procard/Travel Card Administration (PTCA)

Procard Program Operational Guideline

Published June 19, 2012Effective August 20, 2012

Purpose

To provide guidance on how to obtain, use and account for expenditures using a Citibank® issued Procurement Card (Procard).

This guideline applies to all authorized UTSA Procard users and departmental administrators involved in this process.

Texas Administrative Code (TAC) Title 34 Part 1, Chapter 5, Subchapter E, Rule 5.57 – Use of Payment Cards by State Agencies

Texas Government Code Title 10, Subtitle D - State Purchasing and General Services

Citibank Charge Card Program: Card Security Controls and Restrictions (Texas Comptroller of Public Accounts)

Citibank Charge Card Program: Features and Benefits (Texas Comptroller of Public Accounts)

Authority

Administered by the Procard/Travel Card Administration (PTCA) Office

Single purchase limits are up to $5,000

Eliminates much of the paperwork and potential delays associated with larger purchases

Administrative costs are reduced

Citibank issues the UTSA Procard and provides billings

Does not affect the personal credit of the cardholder

Cardholder is personally liable for unauthorized purchases and any other inappropriate use

Overview of the Procard

Cardholder Not allow anyone else to possess the Procard or use it to

complete a purchase

Never use the Procard to complete personal purchases, even if the cardholder plans to reimburse UTSA

Adhere to the limits and restrictions of the Procard

Secure the Procard while in their possession and/or store in secure location (locket file cabinet or desk) within their department

 

Roles and Responsibilities

Cardholder (cont’d)

Report suspected inappropriate or questionable use of the Procard to the PTCA Office

Attend and complete the Procard Compliance (AM535) training class before receiving a Procard

Attend the Procard Refresher Training (AM537) class every three years

Roles and Responsibilities

Account Administrator or Designee Approve an applicant's request for a Procard

Designate the default account number responsible for payment Assign Procard purchasing limits Appoint a reviewer to complete the monthly Procard payment process

Validate the appropriate usage of the Procard for official UTSA business

Assure compliance with this FMOG when authorizing Procard payments

Approve the monthly Procard payment

Approve all Procard maintenance requests via the Card Maintenance Request (CMR) form

Roles and Responsibilities

Reviewer Completes the monthly Procard payment process and is

designated by DEFINE to receive the electronic payment voucher (VP7) in their Document In-Box (YB2).

The account administrator or designee may appoint the cardholder to also act as the reviewer unless any of the following exist:

The cardholder is also the account administrator The cardholder does not have access to DEFINE and

therefore cannot update the VP7

Roles and Responsibilities

Procard/Travel Card Administration (PTCA) Provide training

Issue Procards

Maintain and update cardholder data

Process overrides requested by the account administrator or designee for appropriate transactions

Process credit and single purchasing limit requests and other changes.

Reconcile Citibank charges with payments to Citibank and verify the payments posted correctly in the Citibank system

Monitor card transactions and processing payments to Citibank

Roles and Responsibilities

Single transaction limit = $5,000 (includes freight) Account administrator or designee can set lower limit using

the Procard Application and Agreement or Card Maintenance Request (CMR) Form

Purchases cannot be split over time, or between vendors, recipients, with the intent to circumvent the $5,000 single transaction limit

Standard credit limit = $10,000 Account administrator or designee can set lower limit using

the Procard Application and Agreement or Card Maintenance Request (CMR) Form

Requests for a credit limit over $10,000 must be approved by the account administrator or designee

Procard Limits

Procard Restrictions

No purchase over $500 may be made from a vendor whose status is on hold with the State Comptroller's Office.

Cardholders must verify the vendor status via the Texas Identification Number System (TINS) – Vendor Hold Search website prior to completing a purchase.

Restricted Business

Attorney Liquor store

Bank/ATMProfessional and consultant/contracted service provider.

Bar Restaurants (Special Event privileges only)

Caterer (Special Event privileges only)

Temporary labor agency

Entertainment provider Transportation (taxi, limousine, etc.)

Gas stationTravel-related: Any business, including airlines, car rental, hotels/motels, travel agencies, etc.

Hotel/Motel  

Restricted CommoditiesAlcoholic beverages (Special Event privileges only)

Decorations (Special Event privileges only) Leases

Ammunition and weapons Electronic equipment over $500 including shipping Personal items

Animals Equipment trade-in purchasesPurchases that require a contract or include an auto-renew feature

Cash advance and gift cards (including prepaid and declining balance cards)

Entertainment (Special Event privileges only) Radioactive materials

Computer or telecommunication equipment over $500 including shipping

Food (Special Event privileges only)

Social, entertainment, and recreational memberships.NOTE: Certain professional memberships are allowed. See FMOG – Memberships Paid by University Funds for details.

Consulting services Flowers (Special Event privileges only)

Social or charitable organization dues

Controlled assets Gasoline Telephone Services (landline)

Controlled prescription drugs Gifts Travel-related expenses

Cylinder gases, liquid nitrogen

Hazardous chemicals or materialsNOTE: Additional approval required, contact the UTSA Office of Environmental Health, Safety, and Risk Management (EHSRM) for details.

Special Event Priviledges

Special Event privileges are authorized to a limited number of Procards and allow the purchase of certain restricted businesses and commodities in support of business related hospitality.

A completed Business Expense Form (BEF) must be retained on file.

Special Events Priviledges

Complete the Special Event Privileges section of the Procard Application and Agreement

Approval is at the discretion of the Assistant Controller or Asst. VP/Controller

To add or remove Special Event privileges for existing Procards, complete a Card Maintenance Request (CMR).

Should complete the Business Related Hospitality and Entertainment (AM553) training class prior to receiving Special Event privileges.

 

How to Complete a Purchase

Confirm the item to be purchased is allowed and if the Procard is the best payment method.

Review the Procard limits and restrictions to verify that neither the business nor the item is restricted.

Determine whether a state or UTSA contract is available that is applicable to the purchase, or contact a Buyer in Purchasing.

Verify that the transaction including freight does not exceed the single transaction or credit limit.

How to Complete a Purchase

Select and engage the vendor For international vendor, you must email The Office of

Research Integrity and Compliance (ORIC) to ensure the vendor is not listed on a U.S. government restricted parties list. o NOTE: ORIC verification must be completed regardless of the dollar

amount of the purchase. The email response from ORIC must be attached to the other Procard supporting documentation.

Online transactions ensure the vendor's website is encrypted, secure and does not store credit card numbers. Place the order

Provide shipping information and billing address (department address)

CitiManager Online System

Used to review transaction history and download the memo statement for the current period.

For more information, see the Self-Registration for Cardholders presentation, available on the PTCA – Training Materials web page.

Transaction Log & Electronic Payment Process

PTCA office reviews the Citibank summary billing statement for inappropriate purchases.

Cardholder completes the Procard Transaction Log and reconciles these transactions to the Citibank memo statement.

Cardholder signs the Procard Transaction Log, attaches the required documentation and submits it to the reviewer, to complete the electronic payment voucher in DEFINE.

PTCA office generates the Procard Payment Voucher (VP7) document and distributes charges for each Procard to the default account specified in the Procard Application and Agreement.

Transaction Log & Electronic Payment Process

PTCA office emails the VP7 approval deadline to the account administrator of the unit associated with the default account and up to another five individuals who are identified as having security access to the electronic payment voucher process.

Reviewer reviews and signs the Procard Transaction Log and updates the object code before the VP7 is approved.

Account administrator or designee reviews and signs the Procard Transaction Log and reviews and approves the VP7.

Failure by the account administrator or designee to approve the VP7 by the deadline may result in loss of Procard privileges for the cardholder and is reported to the Assistant Vice President, Financial Affairs/University Controller as non-compliant.

Transaction Log & Electronic Payment Process

Procard Maintenance The Card Maintenance Request (CMR) is used to request the following changes to an existing Procard:

√ Single transaction and credit limit√ Default account number√ VP7 Reviewer/Electronic Desk Access√ Cardholder name changes√ Card cancelation√ Card replacement√ Temporary card activation or deactivation√ MCC/Vendor addition and deletion

Requests must be signed by the cardholder and authorized by account administrator or designee and submitted to the PTCA Office.

Canceling and Returning a Procard

The Procard may be cancelled for any of the following reasons:√ Cardholder no longer requires a Procard√ Cardholder has transferred to a different department√ Cardholder is no longer employed by UTSA√ Procard is damaged√ Inappropriate use of the Procard

The Procard must be cut in half and returned in person to the PTCA office or Fiscal Services (Main or Downtown campus) with a completed Card Maintenance Request (CMR).

The PTCA office may also cancel a Procard if the cardholder:

√ Uses or attempts to use the card for personal or unauthorized purposes

√ Splits or attempts to split a purchase to circumvent Procard limits or restrictions

√ Fails to comply with this FMOG and any regulatory, statutory, specific grant, funding source, departmental or program requirements.

Notification to management, disciplinary measures up to and including termination of employment, and criminal prosecution.

Canceling and Returning a Procard

Disputed Transactions

The cardholder must contact the vendor to dispute discrepancies on the memo statement for:√ Charges for items not received√ Incorrect pricing or duplicate billing

If the discrepancy is resolved verify that the correction has been completed when the next statement arrives

If the discrepancy is not resolved:

Call Citibank at 800-248-4553

Complete and submit a Citibank® Cardholder Dispute Form to Citibank within 60 days of the statement date

Retain a copy of the dispute form with the other Procard supporting documentation

The Citibank Cardholder Dispute Form must be completed even if the vendor is still researching the transaction

Disputed Transactions

If fraudulent activity is suspected, the cardholder must:√ Call Citibank immediately at 800-248-4553√ Provide Citibank with any supporting documentation requested√ Complete the Citibank Affidavit of Unauthorized Use Form√ Provide PTCA with the Citibank email confirmation that the

unauthorized user charges are being investigated.

PTCA will monitor account activity and provide guidance on the payment of valid charges

Fraudulent Transactions

Required Documentation and Retention

Documents must be retained for the current FY plus5 FY’s and be readily available for audits and reviewsand must be shredded before disposal.

An itemized sales receipt Completed and signed Procard Transaction Log Departmental controls documentation Packing slips ORIC approval email (for international vendors only) Copy of the related Memo Statement Business Expense Form (BEF) if applicable Copy of a completed Citibank Cardholder Dispute Form

submitted to Citibank, if applicable

The cardholder's department is also responsible for establishing and documenting an appropriate departmental Procard control environment that addresses:

Approvals Ajustments Record keeping Reporting Reconciliation Segregation of Procard Duties Supervision

Required Documentation and Retention

Procard Compliance

The PTCA Office utilizes management controls, management reports, and compliance audits and reviews to help ensure the appropriate use of the card.

Procard activities and related controls are also subject to the requirements covered in FMOG - Monitoring Plan for Segregation of Duties and Reconciliation of Accounts.

Audits and Reviews√ PTCA Procard Audits√ Quality Assurance Review (QAR)

√ DTS, OPAA, Audit, Compliance and Risk Services Reviews

√ State, Federal and other audits

Procard Compliance

Related Forms/Worksheets

Procard Application and Agreement

Card Maintenance Request (CMR)

Procard Transaction Log

Citibank Affidavit of Unauthorized Use

Citibank Government Cards Cardholder Dispute

Business Expense Form (BEF)

Tax Exempt Certificate

Questions???