Loading...
HomeMy WebLinkAboutProcurement Card Program Guide Sept 2015 Revised 9/2015 City of Iowa City Procurement Card Program Guide Purchasing and Accounting offer to the City of Iowa City Departments and Divisions an exciting innovative program that simplifies the way in which you may purchase goods and services. The JPMorganChase MasterCard Commercial Card (credit card) program has been established to delegate the authority to individuals to make purchases and process payments of mainly low-dollar goods, services, business and travel related expenses utilizing a Purchasing MasterCard. The Procurement Card will enable you to purchase non-restricted goods and services directly from the vendors without the issuance of a purchase order or the use of a check requisition. After completion of an application, a Procurement Card will be issued in your name with the City of Iowa City logo. This card is for City of Iowa City business purposes only and may not be used for any personal transactions. Remember that as a municipal agency, certain municipal, state and federal guidelines and laws bind us. To ensure compliance with these requirements, follow the guidelines outlined in this Procurement Card Program Guide. Questions concerning a particular purchase, when not clear, may be directed to the Procurement Card Program Administrator, Mary Niichel-Hegwood (356-5078). Obtaining a Procurement Card To obtain a Procurement Card, fill out a new card application form found on the City‟s intranet under Forms/Templates. (Please note: When completing the application form, DO NOT use your social security number. Enter the last four digits of your employee number INSTEAD of your social security number). Return the completed application form to Procurement Card Program Administrator, Mary Niichel-Hegwood. Mary Niichel-Hegwood and your supervisor will establish your JPMorganChase MasterCard parameters, limitations, etc. Purchasing will transmit the information from the Cardholder Application to JPMorganChase Bank for processing. The bank will emboss and return the customized City of Iowa City Procurement Card to Purchasing. This process normally takes about one to two weeks. When your Procurement Revised 9/2015 Card is received by Purchasing, Mary Niichel-Hegwood will contact you to set up a time to meet and to go over a brief orientation on how to use the card. You will receive the card and sign the Procurement Card Agreement Form once you have received instructions on the use of the card. Proper security of your Commercial Card should be maintained at all times. Your Department/Division head will work with you to provide a safe place to store the card, if you do not wish to carry the card with you. You are not personally liable for any City of Iowa City related business charges. You are personally liable for any personal charges and any charges not approved by the City of Iowa City. Your supervisor has established cardholder limits. If you require changes, submit a written request (e-mail is acceptable) to your supervisor for approval and forward it to Mary Niichel-Hegwood. Activating the Card When you receive the card, activate it by phoning the number on the back of the card. You will be asked to provide a four-digit number. You should provide the last four digits of your employee number. Guidelines for Procurement Card Use 1. The procurement card must be signed by the named cardholder. 2. The supervisor is responsible for the management of the Procurement Card Program within their respective department/division. Additionally, the department/division‟s management may place other restrictions, such as direct consolidation of purchases, requiring certain procurement activity to be handled by a specific cardholder, requiring centralized records/files to be maintained, and other instructions/policies deemed appropriate for department/divisional cardholders. 3. The Procurement Card may not be used for the following: a) Non-business purchases (personal items) b) Purchases from related parties – businesses on the Restricted Vendor List Revised 9/2015 c) Cash advances d) Gasoline purchased for City of Iowa City vehicles within Johnson County e) Meals while traveling on City business (Meal expenses are reimbursed through a per diem). Procurement card transactions shall not be split to circumvent a larger purchase, which is over the cardholder‟s single/monthly purchase limit (Travel Services that have been pre-approved on a Travel & Training Authorization Form (T-1) are excluded, e.g.: hotel, registration). 4. You may dispute any charge that appears on your Monthly PVS statement of Account Report (see page 7). 5. Cardholders should be aware that the City of Iowa City, as a municipal agency, qualifies as a “tax-exempt” agency for sales taxes. As such, cardholders should use the City of Iowa City‟s tax-exempt number, 42-6004805, as noted on your credit card. If sales tax has been charged on the receipt, the cardholder should contact the vendor for a credit. This is not a disputable item that can be handled by JPMorganChase. A copy of the City‟s tax exemption certificate can be found on the City‟s intranet under the Forms/Templates. 6. Cardholders must obtain proper documentation for all purchases, which includes:  A detailed receipt from the vendor should be submitted. The receipt should include the vendor name and date of the purchase.  A receipt that prints from the credit card machine is not acceptable documentation. A receipt from the vendor listing each item purchased must be provided. For Paul‟s Discount, please manually write the items purchased on the receipt.  It must be clear as to the “public purpose” for the expense. It if is not evident from the invoice or receipt the purpose for the expenditure, please note that on the receipt. For example, if you purchase food to serve at a class or event, please include the agenda or advertising / press release for the event. Revised 9/2015 7. The City of Iowa City has excluded your card from being used for certain types of vendors (e.g. restaurants, jewelry stores, pharmacies etc). 8. If you are unsure why your MasterCard Procurement card was declined, contact JPMorganChase Customer Service Helpline at 1-800-207-5359, ext. 4459. It may be as simple as you may have exceeded your limits or the MCC (Merchant Code) has been blocked. For further assistance contact Mary Niichel-Hegwood (356-5078). 9. The procurement card may be used for travel expenses (excluding food, as this is reimbursed through a per diem. The City recommends that you use the card for airfare, lodging, and class registration. 10. Car Rental using the City of Iowa City procurement Card: a) Sign any paper work, City of Iowa City and Cardholder name b) Do not get the rental insurance (the City of Iowa City‟s insurance will cover the rental car) c) If you are in an accident The City of Iowa City‟s Insurance Provider is: Travelers St Paul MN. 11. Charges through June 30th, which will be part of the July reconciliation (transactions posted between June 6 – July 5), will be included in the current Fiscal year. Compliance Reviews Accounting will perform compliance reviews on cardholder‟s monthly statement documentation. The intent of the review is to analyze cardholder‟s transactions for completeness, accuracy, and compliance with the guidelines and procedures for the Procurement Card Program. Receipt of Materials and Services It is your responsibility for ensuring receipt of materials and services and to follow up with vendors to resolve any delivery problems, discrepancies, returns or damaged goods. Revised 9/2015 If you order materials by phone make sure that the vendor is aware that the City is tax exempt and ask the vendor to: a) Fax you a copy of the sales order OR b) Include a sales receipt with the item when mailed Prices must be listed on each item purchased. You will need this for your documentation. Internet Orders If you are not comfortable sending your credit card information over the internet and a phone number is available, omit the procurement card number on your application and print a copy of the order. Submit the order and call with your credit card number and expiration date. Use the print icon and make a copy of the order screen prior to sending the order as your documentation. Receipts with internet orders are difficult to obtain. In the case of returns, you are responsible for coordinating returns directly with the vendor, as well as securing the appropriate credit. It will be necessary for you to keep the return documentation in your individual transaction file as part of you record keeping responsibilities. Additionally, the credit will appear on your monthly PVS Statement of Account. You must code the credit to the same fund, cost center, expense and as the original purchase. Disputing a Transaction You may dispute any charge that appears on your Procurement Card account or transaction file. If there is a charge that is not recognized, or it appears to be incorrect, you should first contact the vendor and try to resolve the dispute. If an agreement can not be reached, you should complete a „DISPUTE FORM‟ which can be found on the City‟s intranet under the forms heading and fax it to JPMorganChase (1-847-931-8861). This form must be faxed to JPMorganChase within 60 days from when the item was originally charged to your account. Also, send a copy of the form to Michelle Cook in Accounting. A copy should be kept with the Cardholders file in order to attach this documentation to the hard copy of the monthly reconciliation statement that you send to Accounting. Revised 9/2015 Reporting a Lost or Stolen Procurement Card Please Notify JPMorganChase (1-800-207-5359, ext. 4459 -- 7 days a week, 24 hours per day) immediately if your procurement card is lost or stolen. You should also notify your supervisor and Mary Niichel-Hegwood (356-5078). Upon your telephone call, the bank will immediately suspend your commercial card. A replacement card will be set up for you by Mary Niichel-Hegwood. Card Termination When a cardholder terminates employment with the City of Iowa City, the supervisor has the specific obligation to reclaim the Procurement Card and return it to Mary Niichel-Hegwood in Purchasing. The supervisor is also responsible for reconciling the final charges and submitting the proper receipts/documentation to Accounting. Violation of these procurement card policies, misuse of the procurement card, or repeated failure to submit procurement card reconciliation and documentation by the monthly deadline to Accounting may result in termination of an employee’s procurement card.