TABLE OF CONTENTS       

Introduction

Violation of Procedures

Definitions

Approving Official Responsibilities

Cardholder Responsibilities

Finance Office Representative Responsibilities

The UPC Administrator Responsibilities

Lab/Division/Program Director Responsibilities

Training

Unauthorized Use of the UPC

Lost or Stolen Card

Monitoring

UPC Representatives

Anonymous Reporting

Disciplinary Action for Non-Compliance with UPC Procedure

Disputes

UCAR PURCHASING CARD PROCEDURES

INTRODUCTION

UCAR Finance and Administration makes every effort to facilitate various acquisitions of supplies and services in support of UCAR’s mission and objectives.  One such method of procurement is the UCAR Purchasing Card (UPC) Program. This program makes it possible for divisions and programs to obtain a commercial credit card by which purchases can be made, subject to specified rules and procedures.  Divisions and programs requesting the use of a card are required to follow specific usage rules and authorizing procedures, including monthly reconciliation of statements and ongoing monitoring for compliance with program procedures.

A.    VIOLATION OF PROCEDURES

Violation of UPC procedures and abuse of the UPC card are considered serious offenses and may result in revocation of Approving Official (AO) and cardholder privileges and disciplinary action.  An online system provides the UPC Administrator and the Finance Office Representative with the capability to identify certain possible unauthorized transactions such as purchases from unauthorized merchants, violations of limits, and other irregular activities.  The UPC Administrator will monitor these reports as part of their ongoing oversight responsibilities.  The UPC Administrator and Finance Office Representative will investigate all suspicious transactions.  Any violations discovered by the UPC Administrator or the Finance Office Representative will be reported immediately to the Vice President for Finance and Administration, who will make final determination on the course of action.

B.    DEFINITIONS

1. JP Morgan Chase VISA Commercial Credit Card:  An internationally accepted VISA credit card, referred to in these procedures as the UPC (UCAR Purchasing Card).
2. Cardholder:  The person in whose name the card is issued, and the person solely responsible for the authorized use of the card.
3. Approving Official (AO):  The person who is required to review and approve all purchases made with the card, as well as ensuring compliance with the UPC Program procedures.
4. Finance Office Representative:  The person in the UCAR Finance Office who has been identified as the primary contact for the UPC Program.
5. PaymentNet:  The online processing tool for reconciling monthly transactions.
6. Statement of Account (SOA):  The hard-copy statement produced by PaymentNet to track purchases made with the UPC.
7. UPC Administrator:  The person in the UCAR Contracts Office who has been identified as the primary contact for the UPC Program.
8. Invoice/Receipt:  Written document from the vendor with description of item(s) purchased, date of purchase and  acknowledgment of payment by the credit card.

 

C.    APPROVING OFFICIAL RESPONSIBILITIES

It is the responsibility of the AO to ensure that cardholders comply with the UPC procedures, including documentation requirements.  Specific duties include:

1. Process the Application/Changes/Cancellation Form for the UPC.  The AO will recommend to the UPC Administrator the individual dollar limits for new cardholders.  The single purchase limit is $5,000 or less.  The monthly purchase limit is generally set at $10,000, but can be increased or decreased by the AO by submitting the proper exception form to the Contracts Department depending upon the anticipated level of monthly UPC activity.
    
2. Approve the monthly PaymentNet online statement by performing all of the following duties:
   
   
   1. Review all invoices and receipts, packing slips, and other relevant documentation. Initial and date invoice/receipt .  AO approval means that the AO has reviewed the purchase and determined that it is valid and in compliance with UPC procedures.
   2. Verify that goods or services were for a valid business purpose.
   3. Acknowledge receipt of the goods or services.
   4. Verify correct account keys and object codes.
   5. Once the AO has verified the validity of all transactions, the AO must complete the following actions by the 20th of each month (This is a firm date):
      1. Verify that officially disputed items in JP Morgan Chase Payment Net System are noted on the online statement and on the hard-copy SOA;
      2. Check the “Approved” box for each “Reviewed” transaction on the online statement; and,
      3. Sign the “original” SOA, and return it with the initialed and dated invoices and receipts to the cardholder.
      4. Cardholder will make a copy of the signed and approved SOA for their file and will forward the original to the Finance Office Representative.
         
         
3. In an emergency, perform cardholder reconciliation responsibilities during cardholder absences.  Cardholder must sign original SOA upon return.
   
   
4. Complete the following actions for departing cardholders:
   1. Notify the UPC Administrator that the departing employee’s UPC should be cancelled via the UPC cancel card form.
   2. Retrieve the UPC and all UPC records including the copy of the SOA, invoices and receipts and supporting documents in the UPC expandable folder from the departing employee.  The UPC should be returned to the UPC Administrator upon completion of the final reconciliation.
   3. Ensure that all records, including those in the UPC expandable folder, are complete and forward all documents to the Finance Office Representative.

5. AO will request UPC Administrator to revoke cardholder privileges if the cardholder is subject to current disciplinary action by notifying and returning their card to the UPC Administrator.

6. AO will request UPC Administrator to revoke cardholder authority at any time for violation of the UPC procedures and report the violation to the UPC Administrator.

D.    CARDHOLDER RESPONSIBILITIES

It is the responsibility of the cardholder to comply with the UPC procedures, including documentation requirements.  Specific duties include:

1. Ensure that the card is not used by anyone other than the cardholder.

2. Review all transactions on a monthly basis.  Reconcile the online statement, the SOA, invoices and receipts.  Attach invoices and receipts, packing slips and other relevant documentation to the SOA, sign, date and deliver the SOA to your AO, allowing sufficient time for the AO to complete the review and approval process by the 20th of each month.  Prior to submitting your supporting documentation to your AO perform the following:
   1. Verify the following for accuracy:
      1. Quantity
      2. Purchase price
      3. Packing slip with UCAR Receiving stamp
      4. Email documentation for receipt of goods or services
   2. Verify UCAR Tax Exemption with supplier and make sure tax exemption is granted if applicable.  https://www.fin.ucar.edu/treasury/internal/us_map_chart.html
   3. Update PaymentNet transactions with reference number, account key, object code, description, and Transaction Notes information.
   4. Input the requestor’s last name and item description in the Description Box.
   5. Check the “Reviewed” box to indicate the items that have been received and can be paid.
   6. Note any disputed items on both the PaymentNet system and the SOA.

3.  AO will return signed and approved SOA to the cardholder.  Cardholder will make a copy of the signed and approved SOA for their file and will forward the original to the Finance Office Representative.

4. Notify the AO of all absences in order to avoid delays in monthly statement processing and reconciliation. Review and sign SOA immediately upon return.

5. Ensure that purchases are not split into multiple smaller purchases in order to circumvent the single purchase limit. Splitting transactions will result in disciplinary actions as noted in section “N”.

6. Ensure that fair and reasonable pricing is being obtained and that purchases are justifiable and have a legitimate business purpose.

7. Retain all documentation of purchases for audit purposes.  A 12-month UPC expandable folder is provided to each cardholder every year for record retention purposes.  Include a copy of the signed and dated (by AO and cardholder) SOA along with invoices and receipts, packing slips, and relevant information in this file.  Cardholders will forward the UPC expandable folder with all supporting documentation to the Finance Office Representative within two (2) months following the end of the fiscal year (30 September).

8. Surrender the UPC immediately if subject to disciplinary action or as required by the UPC Administrator.

E.    FINANCE OFFICE REPRESENTATIVE RESPONSIBILITIES

The Finance Office Representative shall not be a cardholder or an AO to ensure segregation of duties.  Primary responsibilities include:

1. Review and reconcile the online statement and remit monthly payments to JP morgan Chase in a timely manner.
2. Provide assistance to cardholders and AOs on account reconciliation.
3. Track disputes.
4. Immediately report any violation of UPC procedures to the Vice President for Finance and Administration and the UPC Administrator.
5. Archive UPC records and files.
6. Work closely with the UPC Administrator and evaluate/make recommendations for UPC program improvements.

F.    THE UPC ADMINISTRATOR RESPONSIBILITIES

The UPC Administrator may not be a cardholder and/or an AO as it relates to their UPC duties.  Primary responsibilities of the UPC Administrator include:

1. Review and update the UPC procedure and training annually or as required.
2. Provide initial and ongoing training and support for AOs and cardholders.
3. Process the UPC Application/Changes/Cancellation Form.
4. Issue and cancel UPCs in a timely manner.
5. Ensure that all lost/stolen UPCs and replacement UPCs are processed as required by JP morgan Chase.
6. Review JP morgan Chase reports to identify possible improper, unauthorized, fraudulent, wasteful, or split purchases.
7. Provide ongoing support to directors, AOs, cardholders, Finance Office Representative, and auditors of the UPC program.
8. Maintain current records of AOs, cardholders, purchase limits and signature authority.
9. Retain UPC training records and the written list of approved AOs and cardholders provided by the directors.
10. Immediately report any violation of UPC procedures to the Vice President for Finance and Administration and the Contracts Office Manager.
11. Work closely with the Contracts Office Manager and Finance Office Representative to resolve UPC issues.
12. Evaluate and make recommendations for UPC program improvements.
13. Review all AOs and cardholders signature authority on a yearly basis.
    
    

G.    LAB/DIVISION/PROGRAM DIRECTOR RESPONSIBILITIES 

It is the responsibility of the lab/division/program director to appoint each cardholder, AO and alternate AO while adhering to the guidelines listed below, and to ensure that AOs, alternates and cardholders comply with these UPC procedures. The Vice President for Finance and Administration must approve any exceptions from these requirements.

1. Requirements for Assigning Cardholders:
   1. All cardholders must be current, active full time employees. Part -time employees are only eligible by special exception from the UCAR Vice President for Finance and Administration. Casuals and/or student Casuals are not eligible.
   2. The total number of cards and purchase limits should be kept at a minimum necessary to conduct business. Proliferation of cards within a group or department should be avoided.
2. Requirements for Assigning AOs:
   1. The AO must be the cardholder’s supervisor.
   2. Assigned AO authority is limited to five (5) cardholders.

Additional lab/division/program director responsibilities include:

1. Annually review and approve all AOs, alternates (maximum of 2), and cardholders and provide a written list of approved AOs, alternates and cardholders to the UPC Administrator.
2. Notify the UPC Administrator to rescind AO authority if the AO is subject to current disciplinary action.
3. Annually review and respond with any suggestions to the following reports supplied once a year: 
   1. Delinquent Cardholders Report.  This report notes cardholders who have been late completing and submitting their monthly Credit Card statements.
   2. Division Hierarchy Report.  This report documents users, their expenditure limits and approving officials.
   3. Transaction Summary Report.  This report provides total dollars expended by each card holder.

H.    TRAINING

All new cardholders and AOs are required to complete initial UPC training. All trainees must sign a certification of training (see Appendix) confirming that they have read the procedures, attended the training, and understand that failure to comply with UPC procedures can result in penalties including, but not limited to, rescission of UPC and/or AO authority, termination of employment, reimbursement to UCAR for improper purchases, and possible criminal prosecution. The UPC Administrator will retain these certifications.  In addition, all current cardholders and AOs must attend bi-annual mandatory refresher training.  Failure to attend the training will result in revocation of current cardholder and/or AO authority. All training will be provided by the UPC Administrator.

I.    UNAUTHORIZED USE OF THE UPC

Without exception, the UPC shall not be used for the following purposes (Contracts Office is excluded on some items such as hazardous materials):

• Personal use of any kind
• Cash advances
• Purchase of items identified as having a 55XX Object Code (definition of Fixed Assets)
• Rentals or leases of land or buildings exceeding 30 days
• Purchase of hazardous/dangerous items or materials such as explosives, munitions, toxins, and firearms
• Business travel including rental cars (UCAR offers a separate travel credit card to charge business travel expenses)
• Hotel or other types of accommodations restaurant or catering charges unless an exception is granted to unblock Merchant Category Code (MCC)
• Fuel purchases for automobiles and aircraft unless an exception is granted to unblock MCC code
• Construction work
• Alcoholic beverage
• Postage

J.    LOST OR STOLEN CARD

In the event a UPC has been lost or stolen or if the UPC information has been compromised in a fraudulent manner, the cardholder should:

1. Immediately notify JP morgan Chase and the AO.  JP morgan Chase may be notified 24-hours a day by calling Card Member Services at 1-800-270-7760 and/or VISA Emergency Services at 1-800-VISA-911.
2. The cardholder will provide the UPC Administrator with the following information within one working day after discovery of the loss, with a copy to the AO:
   1. Credit card number
   2. Date and location card believed to be lost or date card was stolen
   3. Date and time JP morgan Chase was notified
   4. Any purchases that had been made by the cardholder before the loss
   5. Other pertinent information
3. Replacement cards will be sent to the UPC Administrator for distribution.  If the cardholder is on a business trip, cardholder should notify JP morgan Chase to forward the card directly to the cardholder’s location.  JP morgan Chase will contact the UPC Administrator for confirmation and the card will be forwarded as requested.  The cardholder must notify the UPC Administrator immediately if replacement card is not received within 72 hours.
4. If the cardholder finds the original credit card, it shall be cut in half and returned to the UPC Administrator.
5. The UPC Administrator will also notify JP morgan Chase of the loss by telephone, with a confirming email, as specified in the JP morgan Chase Master Agreement.

K.    MONITORING

Every AO and cardholder is subject to monitoring.  Monitoring by authority of the Vice President for Finance and Administration will be conducted throughout the year under the direction of the Director of Budget and Finance and the Contracts Office Manager.  The purpose of monitoring is to detect fraud, waste and abuse in the UPC Program, and to provide management with recommendations to improve systems of internal controls.

L.    UPC REPRESENTATIVES

The following staff members have been identified as the Contracts and Finance Office program representatives.  Questions or interpretation of these procedures should be directed to them as appropriate.

M.    ANONYMOUS REPORTING

If you would like to make an anonymous report of suspicious activity you can do so by going to our Ethics Web site. http://www.fin.ucar.edu/ethics/index.html

N.    DISCIPLINARY ACTION FOR NONCOMPLIANCE OF UPC PROCEDURES

Through an escalation process, corrective actions will be taken when cardholders and AOs are not complying with applicable UPC Procedures.  A ‘three strike’ process will be followed.  Three instances of non-compliance will result in revocation of card or AO privileges, as applicable.  In certain instances, non-compliance may be deemed as significant and the card and/or AO privileges will be revoked immediately, e.g., splitting transactions, intentional personal usage of the card, etc.  Any fraudulent use of the card will result in termination and the fraudulent activity will be communicated to the NSF Inspector General for possible prosecution.

O.    DISPUTES

1.   Fully Disputed UPC Charges-If the entire purchase and subsequent invoice is disputed; mark it as disputed in PaymentNet and document it on your SOA.  This will allow JPMC to issue a credit and research the issue with the vendor.  The vendor will then send a Return Materials Authorization (RMA) number to the cardholder, if required, for the return of equipment or other goods.  CARDHOLDERS ARE NOT TO CONTACT THE VENDOR directly on a fully disputed item.  This action causes duplicate credits and subsequent chargebacks, and adjustments.  The dispute will be charged to one of the cardholder’s Division Account Keys.

2.   Partially Disputed UPC Charges- It is the cardholder’s responsibility to contact the vendor directly on partial disputes on an invoice, e.g., sales tax charged in error, shipping charges when you were to receive free shipping, etc.  The cardholder will document the name of the person with whom they spoke, the dollar amount of the credit and when it will be issued.  The reason will be documented on the cardholder’s SOA.  The cardholder will email the Accounts Payable Specialist with this information so the credit due can be tracked internally.

3.   If you suspect fraudulent use of your card, contact JPMC at 1-800-VISA-911 and the UPC Administrator immediately.