BPC Policy Manual

Contents

 

OVERVIEW

The University participates in the State of Kansas’ UMB Bank Visa Procurement Card Program. The purpose of the Procurement Card Program is to establish a more efficient and cost-effective method of purchasing and paying for small dollar (under $5000 including all delivery, shipping and/or special handling charges) transactions within established usage limits.

The Visa Business Procurement Card can be used for in-store purchases, as well as mail, phone, fax and Internet orders. The card is issued at the request of your department. Card usage will be monitored and cards may be rescinded at any time.

This manual provides the guidelines under which you may use your procurement card. Please read it carefully. Your signature on the Procurement Cardholder Agreement   acknowledges you understand the intent of the program and agree to adhere to the established guidelines. You will be issued your procurement card after receipt and processing of the signed Agreement by the BPC Coordinator in the Purchasing Office and the completion of training provided by the Training Division of the PeopleSoft Administrative System Support Department.

Record keeping is not only essential to the success of the program, but to its continued availability to the University community. Standard payment policies require the retention of all receipts and other documentation. As with any credit card, you must retain sales slips, cash register receipts, invoices, order forms and receiving documents. In addition, the Business Procurement Card Log must be maintained in a timely manner to conduct reconciliation and approval for payment.

Any vendor you currently purchase goods from should be considered a potential vendor for the procurement card. If a vendor you wish to use does not participate, you can complete a Vendor Non-acceptance Form  , forward it to the Program Coordinator or Administrator who will in turn have the bank contact your vendor.

 

THE BPC CARD

Commodities, capital outlay items and specified contractual service items, coded in the 520000, 530000 and 540000 (non-inventory) series of expenditure sub-object codes, may be charged to BPC cards.  Conference Registrations and/or Air Fare may be charged to the BPC if request has been submitted, Request to Charge Registration/Air Fare Fees to BPC and approval has been granted by the BPC Coordinator.  Procedure for using the BPC card for registrations may be found at the following link, Procedure for Registration Procedure for using BPC card for air fare may be found at this link, Procedure for Air Fare.

Individual card transactions are limited to $5,000 per transaction, although your supervisor or department head may set a lower per transaction limit. Any special charges and/or shipping charges are included in the $5000 limit.

Orders charged to BPC cards cannot be split in order to avoid BPC Card transaction limits. Repeated occurrences of split orders will result in card suspension and/or cancellation.

All cards will also have a maximum credit limit, set by the cardholders supervisor. No cardholder may exceed this amount in the 30 day billing cycle. There can also be no more than ten (10) transactions processed through UMB in one (1) day.  Any card not used for one (1) year will automatically be closed.


 

ALLOWABLE BPC CARD PURCHASES WITH SPECIAL CIRCUMSTANCES

  1. Hazardous chemicals and materials, controlled substances and radioactive materials may be purchased with the BPC card if the cardholder has the appropriate certifications on file with the vendor. VISA has no restriction on the purchase of these types of commodities other than that they must be obtained legally. If the vendor is willing to accept orders using the BPC card, it is the vendor’s responsibility to ensure that the appropriate paperwork is on file with its business. However, University policy dictates that these items must have been approved prior to placing any order by submission of a RAD sheet approved by the Safety Office.
    Once these orders are entered into the log, RAD sheets must be scanned to the Purchasing Administrator or your assigned monitor and must reference the transaction log number. Failure to do this will result in delay of your transaction being approved. Repeated occurrences may result in suspension/cancellation of your card.
  2. Animals for lab or research use may be acquired with the BPC card. In accordance with University policy, animals may only be purchased through Lab Animal Resources. The correct account code for these transactions is 538010.
  3. Memberships and subscriptions must be in the name of the Agency. The invoice must state that the membership/subscription is ‘institutional’ or that it is transferable in order to use the card and University funds. If there is a cost savings or benefit to the University for purchasing an individual versus institutional membership this must be documented prior to any transaction being completed. Professional individual memberships are not allowable.
  4. International purchases or conferences may be made from Canada without prior approval. All other international purchases or conferences require prior approval. Requests can be made to the program administrator or coordinator. Specific procedures for obtaining this approval are listed in the REQUEST FOR PROGRAM EXCEPTION section of this document.
  5. Purchasing items, conference registrations, etc., where the payment is made through paypal require prior approval from the BPC Coordinator, along with a note of justification as to why the item must come from this source.
  6. Purchasing items from E-Bay is allowed; however a separate business E-Bay account must be utilized.  Purchasing from a personal E-Bay account is not allowed.  If the payment will be made through paypal, prior approval by the BPC Coordinator must be received prior to the purchase. 
  7. Individual transactions over $5000.00 may be allowed with prior approval by the BPC Coordinator.

Due to certain restrictions some attempts to purchase goods from a merchant through use of the BPC will be declined. If declined, and you believe the decline should not have occurred, you can contact the program Coordinator or Administrator, to inquire the reason for the declined purchase.

Some vendor types have been blocked from use with the procurement card. If you present your card to these merchants, the transaction will be declined. Examples of vendor types (codes) that have been blocked are:

  • Hotels and motels
  • Restaurants
  • Airlines; unless your card has been approved for Air Fare
  • Transportation
  • Caterers
  • Package stores
  • Insurance services
  • Some service providers

 

PROHIBITED BPC PURCHASES

In addition to blocking some types of transactions, there are additional prohibitions on use of the procurement card. The card is issued by the State for official State business only. Items that will not be paid through SMART (i.e., funds in the State Treasury) may not be purchased using the procurement card. State and grant funds are of the types that are deposited in the State treasury. All other fund classifications are prohibited from using the card.

A cardholder may not make personal purchases with the procurement card. In addition, the cardholder may not obtain cash advances with his card. The following items may not be purchased with the BPC. This list is in no way all inclusive, but does provide a guide for the types of transactions that are prohibited using the card.

  • Alcoholic beverages
  • Cash advances
  • Cell phones and calling plans **
  • Construction, renovation or installation
  • Food
  • Gasoline
  • Hospitality or Entertainment
  • Honorariums (if reimbursement of travel expenses)
  • Items for which payment is processed as an interfund transaction (Payment to another State agency) or IDB (another KU Department)
  • Personal items (ie. pictures, frames or fans for an individual's office, license in an individual's name, etc.)
  • Purchases involving trade-ins
  • Recruitment expenses
  • Travel and travel related expenses, including registrations and air fare (unless your card has been approved for registrations and air fare)
  • Weapons and ammunition

** See the following web site for more information on Cellular phones and calling plans.

The Procurement Card is NOT intended:

  • To avoid or bypass appropriate procurement or payment procedures
  • To replace the current VISA travel card
  • To purchase capital outlay items recorded on the Physical Inventory
  • For personal use

 

COMPLIANCE WITH STATE ACCOUNTING AND PURCHASING REQUIREMENTS

Use of the card does not exempt a State agency or its officers and employees from complying with statutory requirements and the State’s purchasing and accounting guidelines. Guidance regarding specific issues can be obtained from the following source:

Accounts and Reports Policy and Procedure Manual

Examples of accounting and/or purchasing requirements include, but are not limited to, the following requirements:

  • Required purchases from statewide open-end contracts. If you have specific questions, please contact your agency’s Purchasing Director or Contracts Administrator at 588-1100.
  • Required purchases (K.S.A. 75-3321) from the State Use Catalog.

All purchases for commodities or services that are on a State Contract must be made from the contract supplier(s) if purchased with State funds.  While grant fund purchases are not required to utilize State Contracts, when a State Contract is used, the Contract Number is required on the transaction.

While a grant may allow certain items be purchased, that item may not be an allowed item on the BPC; therefore, the BPC may not be used for that Purchase.

Repeated failure to use the card appropriately or to remit reimbursement for non-approved purchases will subject the cardholder to suspension or cancellation of card privileges. The University’s BPC Coordinator will make such determination.  If a card is suspended or cancelled for inappropriate use or failure to submit paperwork/documentation in a timely manner, the card owner (and enterer if appropriate) will be required to complete BPC training before card will be reactivated or reinstated.

The agency is responsible for compliance with the requirements of this manual. In addition, the University is responsible for insuring that purchases made with the card not in accordance with the foregoing criteria are reimbursed to the University and the State with non-State funds (endowment, private, personal funds). Users will be notified by e-mail of inappropriate transactions.  The user is expected to return these purchases for their applicable credit.  Failure to perform this effort may result in suspending/cancellation of card privileges.  Only as a last resort will checks be accepted.  Checks for reimbursement should be made payable to the University of Kansas Medical Center Purchasing Department, referencing the transaction number to which it is to be applied. These checks should be sent or delivered to the Director of Purchasing or BPC Administrator, at the time the charge appears on your statement.  Every effort should be made to obtain a credit and such documentation must be included with your submission of the private funds.


 

REQUEST FOR PROGRAM EXCEPTION

Agencies may request a one-time, prior approval to purchase items that are normally not authorized BPC transactions. Examples of a program exception are a Purchase over $5000.00 or the purchase of an item(s) that is in high demand and only available at an Internet site. A one-time exception approval can be requested to provide the agency with the flexibility to purchase the item(s) immediately when it becomes available from an Internet source, even though card transaction limits or order splitting concerns would normally prohibit charging the item(s) to the BPC card. Other examples of program exceptions include international purchases (except Canada) and emergency purchases.

  • In order to obtain a program exception, the cardholder must send the BPC Coordinator or Administrator a request to purchase the item. The request must include the vendor, total dollar amount (including any shipping and handling), description of the item, cardholder name and any other details pertinent to the purchase of the item. You must obtain this approval PRIOR to conducting your transaction.
  • You must retain all copies of exception approval documents in your files, as will the Agency BPC representatives.

 

SALES AND USE TAX

The University of Kansas Medial Center is exempt from paying Kansas sales or use tax per KSA 79-3606(b). Information on the University’s tax-exempt status appears on the back of the procurement card. BE SURE TO REMIND THE VENDOR OF THE TAX EXEMPT STATUS WHEN MAKING A PURCHASE. Copies of both Kansas and Missouri exemption certificates can be found on the Purchasing website.

When sales tax is paid on a transaction, the cardholder is required to obtain credit from the vendor for the tax paid. In addition, an entry is made in the transaction log. The line should indicate “sales tax” and be coded 539990. Send an e-mail to the BPC Administrator referencing your transaction number. Once the credit appears on your statement, you will make a new separate credit entry into your log reflecting the credit amount.

If you do not obtain a credit, the sales tax amount will need to be reimbursed with private funds.  However, every effort should be made to obtain a credit and such documentation must be included with your submission of the private funds.

If you have questions about the program or need additional information, please contact the BPC Coordinator.


 

BUSINESS PROCUREMENT CARD ADMINISTRATORS

Most department contact with the program administrators will be with the Program Administrator or Coordinator. We will attempt to answer your questions or will do further research to help you use the card appropriately and complete your transaction log. Program contacts are:

  • BPC Administrator - Deborah Alspaugh -  588-1116 or dalspaug@kumc.edu
    Business Procurement Card Administrator (for information or problems on card use, valid purchases, cardholder disputes, new cards, vendor non-acceptance, account reconciliation, transaction approval, etc.)
  • Susan Trolinger – 588-1140 or stroling@kumc.edu
    Business Procurement Card Auditor (for information on card use, valid purchases, transaction approval, etc.)
  • Stephen Scanlon - 588-1100 or sscanlon@kumc.edu 
    BPC Coordinator

On evenings, weekends or holidays, you can call United Missouri Bank directly when having problems with using your card, lost or stolen card, etc. Their telephone number is 800-821-5184.


 

CARD USE PROCEDURES

How to Obtain a Card

If you wish to obtain a card, you can obtain a cardholder agreement   from the Purchasing web site. Read the agreement very carefully. Your signature on the Cardholder Agreement indicates your understanding and acceptance of the terms and conditions. Your supervisor and/or department head must sign the agreement and must also indicate an individual transaction dollar limit (cannot exceed $5000) and the 30-day credit cycle limit (the maximum amount you can charge in any 30 day billing cycle).

You must register for training with the PeopleSoft Administrative System Support office. If someone other than the cardholder will be entering transactions in the BPC log, this person must also attend the training. Your application will be processed once you have completed the training class.  All cardholders who do not enter BPC transactions must have at least two (2) data entry designees.

The program coordinator will process your application and when the card has been received will notify you by e-mail. The card owner will be required to pick up and sign for their card in the Purchasing Office, Suite 120, Support Services Building.

When you receive your card, sign the back of the card immediately and keep it 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 Agency purchases as defined in this manual. You are responsible for the security of the card and all transactions made against it. Use of the card not in accordance with BPC guidelines may result in personal liability. You are committing university funds each time you use the procurement card, and this responsibility cannot be taken lightly.


Reporting Lost or Stolen Cards

If a procurement card is lost, stolen, or you believe compromised, first notify United Missouri Bank Security at 1-800-821-5184; and then BPC Administrator at 588-1116, immediately. It is extremely important that this be done immediately, because the cardholder is responsible for all charges made with the card until it is reported as lost, stolen, or misplaced. Call the bank first!

How to Cancel a Card

Business Procurement Cards will be canceled immediately if a cardholder terminates employment, transfers to another department or experiences a change in job description that excludes the necessity of procurement card authorization. It is the responsibility of the supervisor to obtain the card from the employee. The card should be cut in half and forwarded to the attention of the program Administrator in the Purchasing Department. It is also recommended that the supervisor of the cardholder or the person responsible for entering the cardholders transactions call or e–mail the program coordinator or administrator with the request to cancel the card.

Procurement Card Security

Only the authorized cardholder may use the card. Cards and card numbers must be safeguarded against unauthorized use in the same manner you would secure your personal credit card. Please be advised that if you should allow your card to be used by other staff, you will be held responsible for any purchase that is made against the card, and any inappropriate transactions will be recorded against you as the cardholder.

Obtaining a Copy of Your Statement

Your statement will be mailed directly to you in your department. However, you may obtain a copy of your statement at any time by going to the United Missouri Bank web site at www.commercialcardcenter.com.


 

CARDHOLDER RESPONSIBILITIES

Receipt of Goods and Materials

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

When your card is issued to you, you will also be given a Quick Card number. For example, if a card number is: 1234-5678-9012-3456 the Quick Card number consists of the last two digits in the third series of numbers and the first three digits of the fourth series of numbers. This number actually becomes a part of your delivery address with any vendor and in particular would identify you as the “owner” of materials that are shipped to the Receiving Dock.

Please see the example of a correct address using a Quick Card number below:

      Stephen Scanlon

      Purchasing,

QC12-345

      Support Services, Suite 120

      University of Kansas Medical Center

      2015 W. 39th Street

    Kansas City, Kansas 66160

For all orders, make sure the complete shipping address and instructions are given along with your name, department name, complete address to include building and room number, city, state and zip (as shown above). You are responsible for seeing your vendor includes all this information on any documentation pertaining to your card purchase/use in order that the charge on the UMB statement can be identified to the cardholder and also to facilitate delivery of your item to you. Failure by your vendor, to include this information on the packing slip, can result in increased costs and time getting your item to you.

Request the vendor include a detailed sales receipt for all orders. Inform the vendor that we are tax exempt. Save the credit card receipt and shipping documentation.


 

RECORD KEEPING AND DOCUMENTATION

Receipt Documents

  1. Itemized receipt or credit documents, issued by a vendor, supporting each transaction charged to the BPC card during the month must be attached to the monthly BPC log and filed in one location.
    • Receipt documents include charge receipts, invoices, packing slips, etc.
    • Receipt documents must contain a description of the items purchased and the cost, which is sufficient to support the expenditure sub-object code used.
    • Unit cost, quantity and total cost must be on the BPC log and other supporting documentation.
  2. If you are unable to obtain a receipt from the vendor, you must provide a written explanation of why the receipt was not obtained. In lieu of the receipt, you must provide written documentation summarizing the transaction, including all pertinent information. Written documentation detailing the transaction is also required if the only documentation provided is a credit card charge receipt that does not include these details. This documentation will not be accepted on a regular basis.
  3. All itemized receipt documents, BPC logs, and UMB statements (for each BPC card account) must be maintained in accordance with the Public Records Preservation Act (K.S.A. 45-401 et seq.).
  4. Documentation for Conference Registrations, ( Link to Conference Registration Procedures) and/or Air Fare (Link to Air Fare Procedures )

Record keeping is essential to the success and continued availability of the BPC program. As with any other request for payment, all forms of documentation must be retained by each cardholder and by the Purchasing Department.

United Missouri Bank (UMB) pays merchants within three days of your business transaction. Please indicate to merchants that they MUST NOT invoice the University in addition to providing a detailed charge receipt in order to avoid duplicate payment.


 

PROCUREMENT CARD LOG PREPARATION

  1. A log must be prepared if items are purchased or credited with the BPC card during the month. The purpose of the BPC log is to provide a basis for the cardholder and agency to control and monitor BPC transactions. The BPC log shall include columns to record the following information for each transaction: vendor name, order date, amount, description, expenditure sub-object code the transaction will be charged to, speed type and the statewide open-end contract number, if applicable.
  2. All purchases should be entered in the BPC log within three business days of the transaction. Always use the actual purchase date for purposes of matching and reconciliation with the bank statement.
  3. Items may be grouped together as a single transaction line.  When items purchased fall into different account codes, code the line as the intended use of the item (i.e. 537100 Office Supplies, 538010 Research Supplies). When grouping items, the unit of measure should be LOT. When freight is charged, it may be grouped together with the item being purchased.  Sales tax must be a separate line. There is no limit on the number of lines entered.  If you are purchasing a service of any kind (ie. repair, rental, inspections, phone, cable, etc.) the date or date span (to and from) is required to be entered in the comment area.  For FedEx or UPS service, the tracking number must be in the comments.
  4. Credits must always be credited against the original transaction, and should not be entered in the BPC log until the credit appears on the bank statement.  IF the credit is against a line that was grouped, then you MUST indicate in the comments what item was returned for the credit and the line number from the receipt.  Cardholders cannot apply a credit to a subsequent purchase from the vendor. Credits for items purchased with a purchase order cannot be applied toward a credit card purchase.
  5. Always post disputed transactions, such as duplicate charges, to the BPC log. Write the necessary supporting notes on the BPC log regarding such transactions.
  6. The completed transaction log along with your statement and supporting documentation must be submitted to the Purchasing Department to the attention of the BPC Administrator no later than the fifth (5th) business day after the close of the billing cycle.  See BPC Calendar for exact dates.  To determine the date span of your log, you must know the purchase date of the oldest and newest transactions that were on the bank statement. 

If there are extenuating circumstances of an unusual or unique nature, contact the Purchasing Office to request an extension. Requests are not automatically approved and, if granted, are for specific transactions and/or time periods.


 

SMART OBJECT CODES

Care should be taken to charge BPC transactions to appropriate expenditure sub-object/account codes. This becomes more critical as transaction limits are raised and use of BPC cards is broadened.  Please call any Purchasing BPC staff for assistance in determining the appropriate account code. 

Expenditure sub-object code 539990 (BPC Purchases Pending Credit) has been established to streamline the accounting for situations in which the cardholder is disputing a transaction(s) included on the UMB monthly billing and a credit memo has not been posted to the cardholder account during the same billing cycle in which the original purchase was made. In the first month, charge disputed transactions to object code 539990 to indicate "pending credit purchases" status.

 

TRANSACTION LOG/BANK STATEMENT RECONCILIATION

A statement will be sent to the cardholder monthly for review and reconciliation to the log. DO NOT PROCESS PAYMENT FROM THIS STATEMENT. Purchasing will prepare the monthly payment document using the bank statement and the information from your transaction log.

Your BPC log and monthly UMB statement should be reconciled as soon as possible after you receive your statement. You may also obtain your bank statement electronically.

Your statement, receipts and transaction log must match. Make any necessary adjustments to your log for reconciliation. Record the log transaction numbers on your statement and receipts. Contact the vendor or UMB to resolve disputed transactions and to obtain credits on a future UMB billing.

Credits received on the UMB statement shall be posted as separate items on the current month’s transaction log. Do not change original transaction amounts on a prior month's log when a credit is received. Instead, enter a new credit transaction and cross reference to the original transaction.


 

APPROVAL PROCESS

Your transaction log in PeopleSoft will be accessed by the BPC staff daily to review and approve transactions and reconciled monthly with your receipts and the monthly control and summary statement from United Missouri Bank. At the end of each billing cycle, all receipts and documentation must be attached to your statement along with a printed copy of your reconciled, up-to-date transaction log and forwarded to the BPC Auditor in the Purchasing Department.

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

 

RECORD KEEPING AND DOCUMENTATION

Cardholders should photocopy their monthly statement, each invoice/receipt and print a copy of their transaction log for their records. These records must be maintained for a period of three years. Original documents should be forwarded to Purchasing or you may PDF email the statement to the BPC Administrator.


 

PAYMENT PROCESS

The closing date for the billing cycle is approximately the 15th business-banking day of the month. All original documentation should be attached in the sequence listed on the bank statement and sent to the Purchasing office no later than the fifth (5th) business day after the close of the billing cycle.  See BPC Calendar for exact dates.

Timely submission of your logs is critical. Purchasing must audit ALL transactions for ALL cardholders, and compile the information necessary to pay UMB within two weeks of the statement date. Failure to submit the required documentation in a timely manner may result in card suspension or cancellation at the BPC Coordinator's discretion.  The card owner (and enterer, if appropriate) will be required to complete BPC training before card will be reactivated or reinstated.

 

RESOLVING 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. If the cardholder is unable to reach agreement with the vendor, complete a Vendor Dispute Form   and fax the completed form to the United Missouri Bank at 816-843-2485. The bank must be notified of any disputed item(s) within 45 days of the last cycle in which the item was purchased. A copy of the form should also be submitted with your transaction log. Keep documentation supporting each credit for returns or exchanges.

Last modified: Jun 06, 2014
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