Nashville State Community College
Procurement Card Policy
Procurement Card (Pcard)
The Visa purchasing card program has been developed to streamline the purchasing process including requisitioning, procurement, receiving, and payment processing. The program utilizes the (Regions Bank) VISA card as the payment processing medium and is administered by Regions Bank.
When placing an order with a vendor, cardholders use their Visa purchasing card in lieu of payment authorizations. Cardholders are to give his/her credit card number at the time of the purchase. There may be instances (i.e., phone orders, printing, etc.) where the cardholder may not want to give his/her credit card number until goods are received to ensure accurate orders.
Vendors record purchases on visa charge slips which are then processed through the visa system. Regions Bank generally pays the vendor within three to four working days.
Regions Bank will provide a monthly master statement to NSCC Purchasing which includes the charges from all departments.
A monthly summary billing statement is sent to the Purchasing Office by Regions BANK detailing all account charges. The Purchasing Office or designee (currently the designee is Keely Apple) will then distribute the billing statements to each department. A Pcard Monthly Activity Log must be maintained for each card holder within their department to compare with the monthly summary billing statements. This will ensure the accuracy of the charges.
Back up documentation for the Pcard Monthly Activity Log to include:
A departmental representative will be selected in each department to maintain the Pcard Monthly Activity Log(s) and record account charges. Once the monthly billing statement is received, the departmental representative will verify all charges on the monthly billing statement against the Pcard Monthly Activity Log(s).
Reconciled department Pcard Monthly Activity Log along with the backup documentation shall be emailed to the Program Administrator or designee (currently Keely Apple) . The reconciled department Pcard Monthly Activity Log is due to the Program Administrator unless a designee has been assigned (currently Keely Apple has been assigned as the designee) by the 10th business day of the month and late by the 15th business day of the month.
Once the reconciled department Pcard Monthly Activity Logs have been verified by the Program Administrator or designee (currently Keely Apple) and all Pcard transactions reviewed by the program administrator, the program administrator or designee (currently Keely Apple) will enter the appropriate account numbers and object codes on the billing statement for processing FUPLOAD.
One consolidated payment is then made to Regions Bank by automatic payment. Each department's account will be debited for the total amount of charges made against it during the month. Because the statement must be paid immediately, the initial payment will be made to a clearing account.
At this point the clearing account will be credited, and the departmental account debited for the expenditure.
A new Pcard Monthly Activity Log shall be prepared for every month that the department has Pcard activity. Upon request, departments may be asked by auditors to present this supporting documentation.
2. Program Advantages
- Reduced Workload- Processing of paperwork is significantly reduced for requisitioning, purchasing, receiving and accounts payable
There will also be a decrease in the volume of invoices and checks processed by Accounts Payable. A single electronic bank transaction will replace hundreds of invoices received and checks printed, saving time and money.
- Improved Deliveries and Quicker Information- Without delays in processing requisitions, the order is placed immediately by the departmental employee. The availability of items, process and ship dates are known when he/she hangs up the phone. Items ordered will also be received much sooner.
3. Program Administrator
The Purchasing Department will be administrating the Visa purchasing card program.
4. Operating Procedures
The following detailed policies and procedures provide information on how to obtain a procurement card, responsibilities by activity, account reconciliation, and who to contact for assistance with summary billing statements or charges
The Visa account for the procurement program is a charge number issued in the name of the employee. Each card is assigned to a specific employee and account number.
- Materials/services, except those described in the account restriction section below, may be ordered directly from vendors. All the same purchasing policies will still apply to every purchase. Approvals to purchase may be secured within the department. Any transactions outside the established parameters will automatically be declined at the point of sale.
- Orders are to include only items that are to be charged directly to the cardholder's department account.
- The expenditure limit for this program is $1499.99 for each transaction including shipping, unless approval has been received for an increase. Purchases of like or similar nature should not be split in order to bypass the purchase limit. Failure to comply with this requirement may result in the cardholder losing the Visa purchasing card privilege.
The following items are excluded from this program and may not be obtained with the purchasing card without exception approval:
- Computer hardware and software unless approved by the Vice President for Finance and Administrative Services (except Academic Computing and Administrative Computer Services)
- Office supplies and like items.
- Equipment (considered equipment if total is $5000.00 or more)
- Personal purchases or cash withdrawals
- Travel, & entertainment expenses with the exception of conference registration fees approved by the HR office. airline tickets, and rental cars. Lodging can be reserved with the Travel Visa purchasing card and follow travel guidelines. The Culinary department is allowed to purchase food items for classroom instruction.
- Departments wishing to use the purchasing card to pay for food items, such as an advisory committee meeting must receive approval from the President, Vice President of the division or Dean of Students.
- Advertisements $5000.00 and over
- Contracts or licensing agreements. NOTE: Do not sign vendor contracts or licensing agreement. These should be forwarded to the Contracts Department, where the contract will be reviewed for language unacceptable to NSCC and the State of Tennessee.
- Maintenance & service agreements
- Personal services
- Medical services
Any use of this program that is personal, fraudulent, and/or an act of gross negligence, for unauthorized transactions may result in disciplinary action including, but not limited to, the loss of Visa purchasing card authorization, suspension or termination. Employees may be held personally liable for misuse of Visa purchasing card cards assigned to them
Opening of Accounts
The President or Vice Presidents are responsible for designating employees to receive the Visa purchasing card. Employees complete the Pcard Cardholder Account Approval for Setup, Delete, or Change Form and submit it to the program administrator after all approvals have been obtained. Legitimate charges made on the Visa purchasing card are a college liability (not a personal liability to the individual). Employees should make sure that Visa purchasing card cards are adequately safeguarded from loss or misuse. See section IV for procedures to report lost cards.
There will be no credit reference checks on the personal credit of the employee for the College Visa purchasing card. Nor will the use of the Visa purchasing card have any effect on the employee's personal credit rating.
The purchasing office will distribute the Visa purchasing card issued by Regions Bank to the employee.
Upon employee termination the Program Administrator will log on to the Regions One Pass CentreSuite and deactivate the account for the employee being terminated.
If appropriate to the new position the process for opening a new account will be followed.
NSCC's Program Administrator will close account numbers upon the request of the president, vice presidents, deans, directors or department heads.
Departmental/Visa purchasing card User Activities
- Departments are responsible for monitoring the appropriateness of purchases and insuring the availability of funds in their departmental budgets.
- Make sure purchases are being charged to the correct FOAPAL account number and object code.
- Order items as needed. No purchase order number is required. If a vendor asks for a purchase order number, use your departmental budget number.
- Instruct the vendor where to deliver materials. It is important that the vendor record on the packing slip your complete name, department name, building, and room number on each order.The only information central receiving has concerning where to deliver your goods are the vendors' packing slips. Packages may be picked up personally by the department, delivered directly to the department, or sent to central receiving (recommended if you are not going to be available to receive the goods. For example, during break periods.)
- Visa purchasing card users should tell vendors that NSCC is tax exempt before placing an order. The tax number is 1588804508. If a vendor wants a copy of the sales tax exemption certificate, it is available in accounts payable office. Employees will be responsible for any taxes charged to the Visa purchasing card.
Obtain the total cost of the order from the vendor (including shipping charges) before the order is placed. The total order must not exceed $1499.99 or other limits as designated on your card.
After each purchase, all information and supporting documentation should be taken to the departmental representative (this will be the person in the department responsible for maintaining the Pcard Monthly Activity Log and reconciling the monthly statements). This activity log will be used to verify the accuracy of vendors' charges on the monthly summary billing statement and serve as an audit trail for the college. It is important to record the name and telephone number of the vendor contact who processed your order for future reference. If there is no supporting documentation (i.e., invoice, packing slip, etc.), the Supporting Documentation Exception Form must be completed and filed with the activity log.
When merchandise is received, record date of receipt on the monthly activity log sheet, and keep all packing slips, receipts, invoices, and any other supporting documentation with the activity log.
Approval of The Monthly Summary Billing Statement
Each department will receive a monthly summary billing statement for the cardholders in the department directly from the Purchasing Office, or designee (currently Keely Apple) , of all transactions posted to their account(s).
The monthly summary billing statement must be reconciled by the departmental representative to the Pcard Monthly Activity Log. Generally, validations that the transaction dates and amounts on the statement match the order dates and amounts recorded on the log. Items ordered toward the end of the billing cycle, however, may be included on the next monthly summary billing statement. NSCC's billing cycle ends approximately the 28th of each month. Once the departmental representative reconciles the statement, he/she will be responsible for posting the departmental account numbers and object codes to a copy of the statement and forwarding it to the purchasing office for processing. This will give the Purchasing Office the necessary information to charge departmental FOAPAL. The reconciled account statement must be approved, in writing by the department head.
Procedures for Handling Discrepancies
- Log Amount Differs from Monthly Summary Billing Statement
If the amount recorded on the Pcard Monthly Activity Log (i.e. amount quoted by the vendor) differs from the statement (excluding freight costs) contact the vendor. If tax is included in the amount, contact the vendor. If the amount referenced on the Pcard Monthly Activity Log is incorrect, the correction should be recorded on the Pcard Monthly Activity Log.
If the amount on the statement is incorrect, request the vendor to credit your credit card on the next statement. The log should be posted to ensure the credit is received.
If a copy of the transaction sales draft (vendor document provided to Regions BANK) is required to investigate the amount, send a written request to Purchasing Department.
Contact the vendor. If it is determined that the materials were received make a correction entry to the activity log.
If the charge should not have been posted to your account, ask the vendor to credit your card and make a correcting entry to your Pcard Monthly Activity Log.
- Statement Charge from A Non-Approved Vendor or Suspected Fraudulent Charge
Contact program administrator
ALL CREDITS DUE TO THE CARDHOLDER SHOULD BE LOGGED ON THE PCARD MONTHLY ACTIVITY LOG WITH ALL CHARGES
The departmental representative is to make a detailed review of the activity Pcard Monthly Activity Log and the monthly summary billing statement within 10 days of receiving the summary billing statement to ensure the amounts charged reflect merchandise actually received. The reviewer is to sign and date the Pcard Monthly Activity Log to indicate the review was performed. The department head/dean will also approve the Pcard Monthly Activity Log. All logs, packing slips, and charge/sales slips should be maintained centrally in the department with the monthly summary billing statements. Records must be kept for three fiscal years following the current year. These are official NSCC records which may only be disposed of in accordance with Tennessee Board of Regents Guideline G-070.
- Regions Bank Activities
- Pay vendors as they submit visa charges.
- Control credit verification.
- Provide original billing statement to accounts payable and monthly summary billing statements to the purchasing office. Provide analyses access to program administrator.
- Send quadruplicate copies of sales drafts in the event of a disputed charge.
- Program Administrator Activities
- Process authorized requests for Visa purchasing cards, maintain control of active cards, and close accounts in accordance with operating procedures.
- Establish and maintain each card so that transactions are charged to the correct account.
- Maintain listing of cardholders, and review summary reports online to enable Purchasing to identify unauthorized use.
- Exercise general control over the Purchasing Card Program.
1. Lost or Stolen Card
Contact Regions Bank immediately at 1-888-934-1087, and the NSCC Program Administrator at Ext. 3303 or 615-569-4371 (cell).
2. Unrecognized or Unauthorized Charges
For purchases on the statement not recognized or authorized, the attached form (see attachment F, Reason 9) should be sent to request a copy of the sales draft. Every effort should be made to resolve issues directly with the vendor prior to contact with Regions Bank. If an issue is irreconcilable with a vendor or the bank, contact the program administrator at Ext. 3303.
3. Account Management
To discuss account management, contact the program administrator at Ext. 3303.
4. Approval of Purchase Denied
If a vendor advises that approval has been denied by the credit card system, it is most likely a result of a violation of one of the various established levels of authority checks. The vendor will not have information related to the reason for denial, nor does the employee have authority to obtain the information from Regions Bank. The employee should contact the NSCC Program Administrator at Ext. 3303. The issue will be resolved between the program administrator and Regions Bank.