TABLE OF CONTENTS       

Introduction

UPC Representatives

1. Definitions
2. Finance Office Representative Responsibilities
3. UPC Administrator Responsibilities
4. Requirements for Assigning Cardholders
5. Requirements for Assigning Approving Officials
6. Training
7. Lab/Division/Program Director Responsibilities
8. Cardholder Responsibilities
9. Approving Official Responsibilities
10. Unauthorized Use of the UPC
11. Disputes
12. Disputes and Receiving
13. Disputed Charges vs. Unrecognized Charges
14. Monitoring
15. Discipline
16. Lost/Stolen Cards
17. Anonymous Reporting

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 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.

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.

A.    DEFINITIONS

1. Approving Official (AO):  the person required to review and approve all purchases made with the card by assigned cardholder(s), as well as ensure compliance with the UPC Program procedures.

2. Cardholder:  the person in whose name the card is issued, and the person solely responsible for the authorized use of the card.

3. Disputed Transaction: A billing or product issue occurs.  After trying to address the situation with the vendor the cardholder can dispute the legitimacy of the transaction through JPMorgan on PaymentNet .

4. Finance Office Representative:  the person in the UCAR Finance identified as the primary contact for the UPC Program

5. Invoice/Receipt:  written document from the vendor with the vendor’s name, date of purchase, description of item(s) purchased, price of item(s) purchased, total amount of purchase and acknowledgment of payment by credit card (alternative documentation can be accepted if approved by the UPC Administrator)

6. PaymentNet:  the online processing tool for reconciling monthly transactions

7. Split Transaction:  Split Charge – the cost of a single unique item (including an assembled asset) or service divided into multiple smaller payments or between cardholders to circumvent single purchase limit

8. Statement of Account (SOA):  the hard-copy statement provided monthly by JPMorgan to track purchases made with the UPC

9. UCAR Purchasing Card (UPC): a JPMorgan Chase VISA Commercial Credit Card, an internationally accepted VISA credit card

10. UPC Administrator:  the person in the UCAR Contracts identified as the primary contact for the UPC Program

 

B.    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. Participate in selection of Monthly Monitoring candidate(s).
3. Track disputes.
4. Provide assistance to cardholders and AO's on account reconciliation.
5. Immediately report any violation of UPC procedures to the Vice President for Finance and Administration and the UPC Administrator.
6. Archive UPC records and files.
7. Work closely with the UPC Administrator and evaluate/make recommendations for UPC program improvements.

C.    THE UPC ADMINISTRATOR RESPONSIBILITIES

The UPC Administrator may not be a cardholder or an AO to ensure segregation of duties.  Primary responsibilities include:

1. Provide initial and ongoing training and support for AO's and cardholders.
2. Process all UPC related forms.
3. Issue and cancel UPC's in a timely manner.
4. Ensure that all lost/stolen UPC's and replacement UPC's are processed as required by JPMorgan Chase.
5. Participate in Monthly Monitoring including but not limited to monthly candidate selection and reviewing findings with cardholders and AO's
6. Maintain records of AO's, cardholders, purchase limits and signature authority.
7. Review JPMorgan Chase reports to identify possible improper, unauthorized, fraudulent, wasteful, or split purchases.
8. Provide ongoing support to directors, AO's, cardholders, Finance Office Representative, and auditors of the UPC program.
9. Review and update the UPC procedures and training annually or as required
10. Review all AO's signature authority on a yearly basis
11. Provide the following reports for  program director’s review annually:
    1. Annual Review of UPC Participants: a list of all cardholders, AO's, alternates (maximum of 2) and cardholder spending limits
    2. List of Permanent Exceptions on file for Cardholders and AO's within the hierarchy
    3. Transaction Detail by Hierarchy: This report summarizes all transactions by cardholder for a fiscal year within the hierarchy with detailed information also available.
    4. Recommendation by UPC Administrator for changes.
12. Maintain  a  written list of AO's and cardholders and spending limits.
13. Maintain files for each cardholder and AO with training records, status changes, exception requests, discipline, UPC related emails, etc.
14. Retain UPC training records
15. Immediately report any violation of UPC procedures to the Vice President for Finance and Administration and the Contracts Office Manager.
16. Work closely with the Contracts Office Manager and Finance Office Representative to resolve UPC issues.
17. Evaluate and make recommendations for UPC program improvements.

 

D.    REQUIREMENTS FOR ASSIGNING CARDHOLDERS

Division director approval is required to become a cardholder.

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.

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.

The Vice President for Finance and Administration must approve any exceptions from these requirements.

E.    REQUIREMENTS FOR ASSIGNING APPROVING OFFICIALS (AO's)

Division director approval is required to become an AO.

1. The AO must be the cardholder’s supervisor.
2. The AO must have signature authority at or above the cardholder’s single purchase limit.
3. AO authority is limited to five (5) cardholders.

The Vice President for Finance and Administration must approve any exceptions from these requirements.

F.    TRAINING 

New Cardholder/AO Training: All new cardholders and AO's are required to complete initial UPC training with UPC Administrator.

All trainees must sign a certification of training 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.

Annual Refresher Training: In addition, all current cardholders and AO's must attend annual mandatory refresher training.  Failure to attend the training will result in suspension and/or revocation of current cardholder and/or AO authority.

Additional Training: UPC participants are required to attend additional training as deemed necessary by UPC Administrator, Contracts Manager and/or Vice President of Finance and Administration. 

All training will be provided by the UPC Administrator.

G.    LAB/DIVISION/PROGRAM DIRECTOR RESPONSIBILITIES

While adhering to the UPC guidelines, the primary responsibilities of the managing director include:

1. Approve each cardholder appointment
2. Approve  each AO and alternate AO appointment
3. Ensure that AO's, alternates and cardholders comply with these UPC procedure
4. Notify the UPC Administrator to rescind AO authority and/or cardholder status if employee is subject to current disciplinary action.
5. Notify the UPC Administrator of status change of any AO or cardholder immediately.
6.  Annual Review of UPC Reports: The director will review and provide written response with any changes or suggestions in a timely manner: 
   1. Annual Review of UPC Participants: a list of all cardholders, AO's, alternates (maximum of 2) and cardholder spending limits
   2. List of Permanent Exceptions on file for Cardholders and AO's within the hierarchy
   3. Transaction Detail by Hierarchy: This report summarizes all transactions by cardholder for a fiscal year within the hierarchy with detailed information also available.
   4. Recommendation by UPC Administrator for changes.

 

H.    CARDHOLDER RESPONSIBILITIES

It is the responsibility of the cardholder to comply with all the UPC procedures, Specific duties include:

1. Ensure that the card is not used by anyone other than the cardholder.
2. Ensure fair and reasonable pricing is being obtained; purchases are justifiable and have a legitimate business purpose.
3. Ensure sales tax is not being paid in states where UCAR is exempt.
4. Ensure that purchases are not split into multiple smaller purchases in order to circumvent the single purchase limit. Reference Split Transaction Definition in Section “A”. Splitting transactions will result in disciplinary actions as noted in section “O”.
5. Notify the AO of all absences in order to avoid delays in monthly statement processing and reconciliation. Review, sign and submit the SOA immediately upon return.
6. Ensure independent receiving physical items by having items received through UCAR’s Shipping and Receiving Department. 
7. Reconcile the online statement (PaymentNet) and the SOA with invoices and receipts. By the 20th of each month complete the following:
   1. Review all invoices and receipts to ensure accuracy and compliance with invoice/receipt definition. 
   2. Verify no sales tax charged if UCAR Tax Exemption applies.  https://www.fin.ucar.edu/treasury/internal/us_map_chart.html
   3. Update transactions on PaymentNet with reference number, account key, object code, description, and transaction notes.
   4. List item description and business purpose in the Description field of Transaction Detail on PaymentNet. 
   5. Check the Reviewed box for each transaction in PaymentNet to indicate the items that all required information has been input, the item/service has been received and can be paid.
   6. Note any disputed items on both PaymentNet and the SOA.  Indicate if the transaction was disputed before or after the billing cycle closed. 
   7. Email Finance Representative upon initiation and resolution of disputes.
8. Sign and date SOA. 
9. Submit the SOA to AO with invoices/receipts, packing slips and other relevant documentation attached allowing sufficient time for the AO to complete the review and approval process by the 20th of each month. 
10. AO will review all invoices and receipts, initial and date receipts/invoices and sign and date the SOA then return approved SOA to the cardholder. 
11. Cardholder will then file original SOA and all original supporting documentation in the current fiscal year accordion folder under the appropriate month.
12. 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 original SOA along with original 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 by November 30.
13. Surrender the UPC immediately if subject to disciplinary action or as required by the UPC Administrator.

I.    APPROVING OFFICAL RESPONSIBILITIES

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

1. Set/Recommend Cardholder Spending Limits - on the Application/Changes Form the AO must recommend the spending limits for new cardholders.  The single purchase limit is $5,000 or less, with the exception of the Contracts Department.   It is recommended the 30 day limit be $10,000 or less.  All limits must be justified on the application, attaching supporting documentation if necessary.
2. Change spending limits - the AO must fill out Application/Changes Form with cardholder name, division, new spending limits with justification and obtain necessary signatures.  Then send to UPC Administrator.  This information may also be sent by email.  All above information must be included in the email and have final approval by the division director.
3. Cancel UPC Card –
   1. The AO must fill out Application/Changes Form with cardholder name, cancellation date and obtain necessary signatures. Then send to UPC Administrator.
   2. Obtain and return UPC to UPC Administrator.
   3. Ensure that all records, including those in the UPC expandable folder, are complete. Submit accordion folder to Finance.
4. Verify transactions with invoices and receipts and approve the online statement (PaymentNet) and the SOA by the 20th of each month
   1. Review all invoices and receipts to ensure accuracy and compliance with invoice/receipt definition. 
   2. Verify no sales tax charged if UCAR Tax Exemption applies.  
   3. Verify all items were received by UCAR Shipping and Receiving and have receiving stamp when applicable.
   4. Verify that goods or services were for a valid business purpose.
   5. Acknowledge receipt of the goods or services.
   6. Initial and date each invoice/receipt.
   7. Verify transactions on PaymentNet have correct reference number, account key, object code, description, and transaction notes.
   8. Verify any disputed items on both the PaymentNet and the SOA and cardholder is following dispute process
   9. On PaymentNet check the Approved box to indicate that all required information has been input, the item/service has been received and can be paid. Once this is done the cardholder can no longer access/alter the transaction on line.
   10. Sign the original SOA, and return it with the initialed and dated invoices/receipts to the cardholder. 
5. In an emergency, perform cardholder reconciliation responsibilities during cardholder absences.  Cardholder must sign original SOA upon return.

J.    UNAUTHORIZED USE OF THE UPC

The UPC shall not be used for the following purposes (Contracts Office is excluded on some items such as hazardous materials):

1. Personal use of any kind
2. Cash advances
3. Gift cards
4. Deposits
5. Purchase of Fixed Assets (items having a 55XX object code)
6. Rentals or leases of land or buildings exceeding 30 days
7. Purchase of hazardous/dangerous materials such as explosives, munitions, toxins and firearms
8. Business travel including rental cars, hotels or other types of accommodations
9. Restaurants or catering charges unless an exception is granted
10. Fuel purchases for automobiles and aircraft unless an exception is granted
11. Construction work
12. Alcoholic beverages
13. Postage
14. Split charges

K.    DISPUTES

A dispute is when the cardholder has an existing relationship with the merchant and one or more of the following occurs:

• Double billed
• Over billed
• Billed without initiating a purchase
• Item received was unsatisfactory: incorrect item, damaged etc
• Item has not been received: see disputes and receiving

A transaction may be disputed up to 118 days after the transaction post date. 

A transaction must have a red flag next to it in PaymentNet to be officially "In Dispute." Please verify disputed transactions have a red flag. If the flag is still yellow to follow up with JPMorgan is needed to verify they have all the information and/or documentation needed to pursue the dispute. If JPMorgan does not receive the additional information requested after 30 days the dispute will be dropped.

It is the cardholders’ responsibility to follow up on the dispute. If the cardholder does not complete the follow up required by JPMorgan the amount for the dispute will be charged against the program account key.

Disputes initiated after the billing cycle closes must be paid to avoid late fees. The credit for the dispute will be on the next billing cycle.

Checking transactions on-line by the 7th of every month is recommended. This allows a few days before the billing cycle closes to review transactions and initiate any disputes. 

To ensure proper processing it is important to communicate the dispute details with Finance Representative at the point of initiation and resolution.

1. If the transaction is disputed before the billing cycle closes, the transaction will come through as a $0.00 charge.
   1. The transaction will come through as a $0.00 amount against the program account key for that billing cycle.
   2. The disputed amount is deducted from the central bill amount due for the billing cycle in which the dispute was initiated. A credit will not appear on the individual UPC account until the dispute is resolved.
   3. The transaction is now "In Dispute." All required information has been received by JPMorgan.  In PaymentNet the transaction will have a red flag next to it. 
   4. The dispute is "Resolved."  JPMorgan has finished its process.  If the dispute was recognized as legitimate, a credit for the disputed amount will show up on the individual UPC statement.  If the dispute was denied a second charge for the disputed amount will show up on the individual UPC statement and be paid.
2. If the transaction is disputed after the billing cycle closes, usually the 10th of every month, the transaction will be paid.  The credit will be given in the next billing cycle.
   1. The dispute is "initiated."  In PaymentNet the transaction will have a yellow flag next to it.  At this point the disputed amount is deducted from the central bill amount due for the billing cycle in which the dispute was initiated. That amount will be credited to the account key charged in the previous month.  A credit will not appear on the individual UPC account until the dispute is resolved.
   2. The transaction is now "In Dispute." All required information has been received by JPMorgan.  In PaymentNet the transaction will have a red flag next to it. 
   3. The dispute is "Resolved."  JPMorgan has finished its process.  If the dispute was recognized as legitimate, a credit for the disputed amount will show up on the individual UPC statement.  If the dispute was denied a second charge for the disputed amount will show up on the individual UPC statement and be paid.

 

L.    DISPUTES & RECEIVING

1. If an order has been placed on the UPC card and not received  by the 20th:
   1. Note on both the statement of account and the Transaction Detail in PaymentNet under the Transaction Notes: ORDERED NOT RECEIVED.
   2. Provide order confirmation and shipping confirmation to the Approving Official. 
   3. Transaction can be reviewed and approved in PaymentNet.
2. If the item has been received by the 8th of the following month:
   1. The cardholder and Approving Official must initial and date the packing slip and invoice.
   2. File all documentation for the transaction in your accordion folder in the month the transaction was posted and appeared on the statement.
3. If the item is not received by the 8th of the following month: Initiate a dispute on PaymentNet

Transactions that have been ordered and not received by the approval deadline are prime candidates to be audited to ensure the product was received and the procedures properly followed.

M.    DISPUTED CHARGES VS. UNRECOGNIZED CHARGES

An unrecognized charge is a charge with an unknown vendor that has not been authorized by the cardholder

There is a difference between unrecognized charges and disputes.  DO NOT dispute an unrecognized charge.  Instead report the fraud immediately to the UPC Administrator or JPMorgan.

1. Call immediately to have card canceled.  Do not dispute charge.
2. The JPMorgan Fraud Department will
   1. Close your account
   2. Issue a new card
   3. Transfer all charges to your new account
   4. Issue credits to your new account for the unrecognized charges

N.    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 ensure compliance with existing UPC Procedures and to provide management with recommendations to improve systems of internal controls.

O.    DISCIPLINARY ACTION FOR NONCOMPLIANCE OF UPC PROCEDURES

Through an escalation process, corrective actions will be taken when cardholders and AO's are not complying with applicable UPC Procedures.  A ‘three strike’ process will be followed.  Three instances of non-compliance may 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 may 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.

P.    LOST OR STOLEN CARD

In the event a UPC has been lost or stolen or the cardholder should:

1. Immediately notify JPMorgan Chase 1-800-270-7760
2. Immediately notify the UPC Administrator.

If there are fraudulent charges on the card, JPMorgan Chase requires the cardholder fill out an affidavit. A copy of this should be given to the UPC Administrator.

Replacement cards will be sent to the UPC Administrator 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 confirm with this the UPC Administrator 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.

Q.     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.