C.  Lab/Division /Program Director Responsibilities

D.  Approving Official Responsibilities

E.  Cardholder Responsibilities

F.  Finance Office Representative Responsibilities

G.  Contracts Office Representative Responsibilities

H.  Training | UPC Training

I.  Authorized Use of the UPC

J.  Unauthorized Use of the UPC

K.  Purchase of Cell Phone Equipment and Services

L.  Lost or Stolen Card

M.  Audits

N.  UPC Representatives

O.  Anonymous Reporting

UCAR PURCHASING CARD PROCEDURES

INTRODUCTION

The Finance and Administration division 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 AO and cardholder privileges and disciplinary action.  An online system provides the Contracts Office Representative 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 Contracts Office Representative will monitor these reports as part of their ongoing oversight responsibilities.  The Contracts Office Representative and Finance Office Representative will investigate all suspicious transactions.  Any violations discovered by the Contracts Office Representative 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. JPMorgan 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. Contracts Office Representative : the person in the UCAR Contracts Office who has been identified as the primary contact for the UPC Program.
6. PaymentNet : the online processing tool for reconciling monthly transactions.
7. Statement of Account (SOA) : the hard-copy statement produced by PaymentNet to track purchases made with the UPC.

C.  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 AO's, alternates and cardholders comply with these UPC procedures. The Vice President for Finance and Administration must approve any deviations from these guidelines.

1. Guidelines for Assigning Cardholders
   1. All cardholders must be current, active employees. Casuals or students 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. Guidelines for Assigning AO's:
   1. The AO should be the cardholder’s supervisor.
   2. If the cardholder’s supervisor cannot act as the AO, the assigned AO must have a daily working knowledge of the cardholder’s job function and responsibilities.
   3. Assigned AO authority is limited to five (5).
   4. AO's must not approve their own purchases.

Additional lab/division/program director responsibilities include:

1. Annually review and approve all AOs, alternates, and cardholders and provide a written list of approved AOs, alternates and cardholders to the Contracts Office Representative.
2. Direct the Contracts Office Representative to rescind AO authority if the AO is subject to current disciplinary action.
3. Designate an alternate AO to avoid processing delays caused by the occasional absence of the appointed AO.
4. Annually review and respond with any updates to the following reports supplied once a year:
   • Delinquent Cardholders Report.  This report notes cardholders who have been late completing and submitting their monthly Credit Card statements.
   • Division Hierarchy Report.   This report documents users, their expenditure limits and approving officials.
   • Transaction Summary Report.  This report provides total dollars expended by each card holder.

D.  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 Contracts Office Representative 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 depending upon the anticipated level of monthly UPC activity. The AO must notify the Contracts Office Representative in writing (memo, fax, e-mail, etc.) to make changes affecting cardholder accounts.

2. Approve the monthly PaymentNet online statement by performing all of the following duties:

• Review, initial and date all receipts, packing slips, and other relevant documentation. AO approval means that the AO has reviewed the purchase and determined that it is valid and in compliance with UPC procedures.
• 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):
• Verify that any disputed items are noted on the online statement and on the hard-copy SOA;
• Check the “Approved” box for each “Reviewed” transaction on the online statement; and,
• Sign the “original” cardholder SOA and forward it to the Finance Office Representative.  Do not send this to the COntracts Office Representative.  This will only delay the process.
• Return the receipts to the cardholder.

3. Perform cardholder reconciliation responsibilities during cardholder absences.

4. Complete the following actions for departing cardholders:
   
   • Retrieve the UPC and all UPC records, including the receipts file, from the departing employee. The UPC should be returned to the Contracts Office Representative.
   • Notify the Contracts Office Representative that the departing employee’s UPC should be cancelled.
   • Ensure that all records, including those in the receipts file, are complete and forward all documents to the Finance Office Representative.

5. Revoke cardholder privileges if the cardholder is subject to current disciplinary action by notifying and returning their card to the Contracts Office Representative.

6. Revoke cardholder authority at any time for violation of the UPC procedures and report the violation to the Contracts Office Representative.

 

E.  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, and receipts. Attach receipts, packing slips and other relevant documentation to the SOA, sign and deliver the SOA to the AO, allowing sufficient time for the AO to complete the review and approval process by the 20th of each month. Other key elements of this process are:
   • Verify quantities, pricing, and receipt of all items billed.
   • Update PaymentNet transactions with reference number, account key, object code, description, and Transaction Notes information.
   • Input the requestor’s last name and item description in the Description Box.
   • Check the “Reviewed” box to indicate the items that have been received and can be paid.
   • Note any disputed items on both the PaymentNet file and the SOA.
   
   
3. Notify the AO of all absences in order to avoid delays in monthly statement processing and reconciliation.
   
4. Ensure that purchases are not split into multiple smaller purchases in order to circumvent the single purchase limit.
   
5. Ensure that fair and reasonable pricing is being obtained and that purchases are justifiable.
   
6. Retain all documentation of purchases for audit purposes. A 12-month receipts file is provided to each cardholder every year for record retention purposes. Include a copy of the signed SOA along with receipts, packing slips, and relevant information in this file. Cardholders will forward the receipts file with all supporting documentation to the Finance Office Representative within three (3) months following the end of the fiscal year (30 September).
   
7. Surrender the UPC immediately if subject to disciplinary action or as required by the Contracts Office Representative.

F.  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 JPMorgan Chase in a timely manner.
2. Provide assistance to cardholders and AO's on account reconciliation.
3. Track disputes and identify/investigate questionable transactions.
4. Immediately report any violation of UPC procedures to the Vice President for Finance and Administration and the Contracts Office Representative.
5. Archive UPC records and files.
6. Work closely with the Contracts Office Representative and evaluate/make recommendations for UPC program improvements.

 

G.  CONTRACTS OFFICE REPRESENTATIVE RESPONSIBILITIES

The Contracts Office Representative may be a cardholder and/or an AO as it relates to their contracts administrator duties. Primary responsibilities of the Contracts Office Representative include:

1. Review and update the UPC procedure annually or as required.
   
2. Provide initial and ongoing training for AO's and cardholders.
   
3. Process the UPC Application/Changes/Cancellation Form.
   
4. Issue and cancel UPC's in a timely manner.
   
5. Ensure that all lost/stolen UPC's and replacement UPC's are processed as required by JPMorgan Chase.
   
6. Review JPMorgan Chase reports to identify possible improper, unauthorized, fraudulent, wasteful, or split purchases.
   
7. Provide ongoing support to directors, AO's, cardholders, Finance Office Representative, and auditors of the UPC program.
   
8. Maintain current records of AO's, cardholders, and purchase limits.
   
9. Retain UPC training records and the written list of approved AO's 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.

 

H.  TRAINING

All new cardholders and AO's 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 Contracts Office Representative will retain these certifications. In addition, all current cardholders and AO's must attend 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 Contracts Office Representative.

UPC Training

 

I.  AUTHORIZED USE OF THE UPC

Without exception, the UPC shall be used only for authorized purchases in compliance with UCAR procedures. The UPC may be used for:

• purchasing supplies and services up to the cardholder’s established limits, and
• in lieu of using the standard purchase requisition process.

 

J.  UNAUTHORIZED USE OF THE UPC

Without exception, the UPC shall not be used for the following purposes:

• 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 (UCAR offers a separate travel credit card to charge business travel expenses)
• Hotel, restaurant or catering charges
• Fuel purchases for automobiles and aircraft
• Construction work
• Alcoholic beverages

 

K.  PURCHASE OF CELL PHONE EQUIPMENT AND SERVICES

UCAR highly recommends that labs/divisions/programs use established agreements with Verizon and ATT (formerly Cingular) for cell phone equipment and services. These agreements offer discounts that are not available to the general public and specifically exclude taxes. They also allow UCAR to cancel the service agreements for departing employees without penalty. If the lab/division/program elects to purchase equipment or services directly from a provider using the UPC, the lab/division/program will be liable for service charges levied against departing employees for the remainder of the service contract. To place an order with either Verizon or ATT, send a Purchase Requisition to the Contracts Office.

 

L.  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 JPMorgan Chase and the AO. JPMorgan 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. Neither UCAR nor the cardholder are liable for unauthorized use of the UPC by persons who have no actual, implied, or apparent authority for such use.
   
2. The cardholder will provide the Contracts Office Representative with the following information within one working day after discovery of the loss, with a copy to the AO:
   • Credit card number
   • Date and location card believed to be lost or date card was stolen
   • Date and time JPMorgan Chase was notified
   • Any purchases that had been made by the cardholder before the loss
   • Other pertinent information
     
3. Replacement cards will be sent to the Contracts Office Representative for distribution. If the cardholder is on a business trip, cardholder should notify JPMorgan Chase to forward the card directly to the cardholder’s location. JPMorgan Chase will contact the Contracts Office Representative for confirmation and the card will be forwarded as requested. The cardholder must notify the Contracts Office Representative 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 Contracts Office Representative.
   
5. The Contracts Office Representative will also notify JPMorgan Chase of the loss by telephone, with a confirming e-mail, as specified in the JPMorgan Chase Master Agreement.

 

M.  AUDITS

Every AO and cardholder is subject to audit. Audits 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 conducting audits is to provide reasonable assurance that fraud, waste, and abuse in the UPC Program is controlled, and to provide management with recommendations to improve systems of internal controls.

 

N.  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.

Contracts Office:

Primary: Jennifer Strange 303-497-8879 – jstrange@ucar.edu
Alternate: Colette Seepers 303-497-2144 – cseepers@ucar.edu

Finance Office:

Primary: Jason Long 303-497-8851 – jlong@ucar.edu
Alternate: Maddy McCowan 303-497-8576 – mmccowan@ucar.edu

O.    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.

 

Appendix

Approving Official/Cardholder Certification

 

I certify that I have read the UCAR Purchasing Card Procedure dated ___________ and attended UPC training on __________________. I agree to comply with the procedures and I understand that improper use of the UPC can result in forfeiture of AO and/or cardholder authority, termination of employment, reimbursement to UCAR for improper purchases, and possible criminal prosecution.

 

Signature: ______________________________________________________

Printed name: ___________________________________________________

Date: __________________________________________________________