Purchasing Card – Questions with Answers


Who can obtain a USU Visa® Purchasing Card?
An employee whose position requires them to make small dollar purchases or is responsible for expending University funds.

What is a small dollar purchase?
Small dollar purchases are typically for several hundred dollars or less.  For example, it could be a single item costing $200 or a group of items totaling less than $2,000.

How does someone obtain a card?
Complete the Purchasing Card Application Form and obtain approval from you college or department card manager.  Completed forms are then forwarded to the Program Administrator for processing with the issuing bank.  All cardholders must attend a cardholder training session and sign and submit a completed Purchasing Card Agreement Form.

Who handles cardholder information changes?
The department card manager must approve any changes and then forward the information to the Program Administrator in Purchasing Services.

Who is the Program Administrator?
The Program Administrator, located in Purchasing Services, coordinates all activities related to the University Purchasing Card Program.

Why not simply use a purchase order?
Purchasing Services and the Controller’s Office are attempting to simplify the purchasing process and also reduce total acquisition costs.  Using the Purchasing Card will increase flexibility, simplify the purchasing process and reduce costs.

How do I use the card?
The Purchasing Card functions just like a typical charge card, with certain limitations on some types of transactions.  You should always obtain and file a detailed receipt of the items purchased and use it for statement reconciliation purposes.

Can I use the card over the telephone or internet?
Yes, just as you might use your personal credit card.  The supplier will ask for the card number and expiration date.  No card number should be “kept of file” for future reference by any supplier.  Record your transaction on your activity log and instruct the supplier to provide you with an itemized/detailed receipt showing the items purchased.  All receipts must be kept for 5 years after the transaction date.  Remember to give them detailed shipping instructions and the Utah State Tax Exempt Number printed on your card.

What limits are place on the card?
Standard limits include:
●A maximum dollar amount per transaction
●A maximum monthly expenditure limit
●Blocked or restricted types of transactions such as travel related expenses.  Please refer to the Purchasing Card Policies and Guidelines.

What if I need to return an item after I have purchased it?
Contact the supplier and arrange the return/exchange directly with them.  Be sure to obtain any necessary return authorization and a credit receipt for your returned items
.
What if my purchase is declined?
Contact the Program Administrators at 435-797-1788 or 435-797-1037.

Do I pay sales tax?
No, all university purchases are exempt from paying Utah State sales tax and the State Tax Exempt Number is imprinted on your Card.  Contact the Program Administrators or your Card Manager if you have any questions or problems.

What should I do with receipts?
Save them, they are very important!!  You need the receipts to reconcile your monthly bank and Controller’s expenditure statements for your on campus purchases.  By State and Federal Law, all records must be retained for 5 years after the statement date.

Do I pay the Bank Visa® Statement?
No, the University will pay the total bank bill.  You will need to save your receipts to verify the charges listed on you statement.

How do I reconcile the Monthly Statements?
You will receive a monthly statement listing the suppliers and purchases.  Use your Purchasing Transaction Log along with the detailed receipts to verify that the statement charges match your purchase records.  Any disputed transactions will be handled with adjustments issued the next month.

What if there is an incorrect charge on the statement?
If you have a questions about with a charge on your statement, identify the problem and try to resolve it directly with the supplier.  If the supplier refuses to issue credit or otherwise fails to resolve the problem, call US Bank Customer Service at 1-800-344-5696, then complete a Cardholder Dispute Form, as instructed, and return it to the Bank.

What if there is an unauthorized charge on my statement?
Notify US Bank Customer Service at 1-800-344-5696 immediately.  If the charge appears to be fraudulent, the card account will closed and a new card and account number opened.

What if I lose a receipt?
Having a detailed receipt is important because it serves as proof of the purchase.  It is also proof of certain tax exempt purchases.  If a receipt is misplaced, try to get a copy from your supplier.  If this is impossible, complete the Missing Receipt Form and file it with your monthly statement.  The Missing Receipt Form may be used twice during a fiscal year.

How do the charges made on my Purchasing Card get into the accounting system?
All purchases made on your card will be charged to the Index specified on your application or may be reallocated in the Banner Finance System.

What if my card is lost or stolen?
Contact US Bank Customer Service at 1-800-344-5696 and the Program Administrators Immediately!  Prompt action will reduce University liability for any fraudulent charges.

Will my purchases be checked?
YES!  Each month you will submit your reconciled expenditure statement, transaction log, receipts and any other supporting documentation to your Card Manager for approval.  Your supervisor also reviews your reconciled statements and receipts, and signs and dates the statement after the review.  Also, there will be random audits to verify compliance with University policies and procedures, so it is important to maintain your transaction log and retain all receipts.

What if the single transaction dollar limit or the monthly expenditure limit on the Card is too low for me?
Have your Card Manager send a request for higher limits to the Purchasing Card Program Administrator.

What if I use the Card to make a personal transaction by mistake?
Have the vendor/supplier reverse the transaction immediately and then submit a billing on your personal card.

Will transaction made on the University Visa® Purchasing Card affect my personal credit rating?
No, the card is to be used for University purchases only.

What if I have a question concerning my account?
Contact the University Program Administrators at 797-1788 or 797-1037.

Purchasing Card Training Quiz

Untitled Document

OVERVIEW OF THE PURCHASING CARD PROGRAM

The University Visa credit card program was first introduced in 1998 and has continued to grow since that time. There are now over 2,500 cardholders representing every academic and adminstrative department, both on campus and at the branch campus locations.

You can use the P-Card with most merchants that accept Visa including many on campus departmnets and organizations such as the Bookstore, Food Seervices, the University Inn, and Chem Stores.

Transactions made on the card are billed directly to the University and paid automatically, This means your credit is not checked nor affected by card ownership or usage.

Who can be a University Visa Purchasing Cardholder?
To be a cardholder, you must be an employee who is responsible for expending university funds for business related purposes. Your name appears on the card, which means the card cannot be transfered to another person. It must never be used for personal purchases or your card may be revoked. The Cardholder is responsible for all charges made with card and the monthly P-Card statements must be reconciled and signed by the Cardholder and andAdministrative Reviewer.


You may delegate use of your card to a "Delegated Card User" for authorized purchases. A "Cardholder Delegation Form" must be completed and the designated user needs to attend a Cardholder Training Session.

If you ternminate your employment with the University or transfer to a different department, you must surrender your card to your supervisor and notify the Program Administrators in Purchasing Services.

Keeping Your Card Secure
Your University Visa P-Card is an actual Visa credit card. Treat it as you would your own personal cards.
*Keep it in secure, locked, location or in your pocession at all times.
*Do not give your card number to a sales rep or supplier to "keep on file" for future reference or use.

Lost or Stolen Cards
If your card is lost or stolen, the cardholder should notify the bank IMMEDIATELY. Our issuing bank is US Bank and the customer service number to be called is 1-800-344-5696. You also need to contact the University Purchasing Card Administrators, to ensure that your card is also canceled for all on-campus transactions.

Review Questions - Program Overview

1- When making purchases for my department, it’s okay to give my card or card number to someone else if:
A) They are in my department and are a full-time employee.
B) They are a delegated user and have completed P-Card training delegated user may use the card.                                     
C) They are my supervisor.   
D) They are my P-Card Administrator or Manager
E) They are a trusted vendor/supplier

Correct Answer: B - Only the cardholder or a trained delegated user may use the card

2- If my card is lost or stolen, I should do the following:
A) Call US Bank immediately, they notify the Purchasing Administrators                           
B) Send an e-mail to Purchasing Services and they will notify the bank that your card has been lost or stolen so they can

Correct Answer: A - The bank needs to know IMMEDIATELY

3- Which of the following WOULD NOT be a violation on your purchasing record?
A) Sales tax charged on a transaction
B) Buying a new refrigerator for your home
C) Losing your card                                
D) Splitting a transaction between cards or into smaller amounts to avoid your single dollar purchase limit.
E) Missing documentation on a purchase
F) Purchasing a restricted item

Correct Answer: C - You won’t get penalized for losing your card

 

Review Questions - Card Features

1- Sales tax may be charged on purchases with my University Purchasing Card under the following circumstances:
A) The vendor is NOT on the State Contract List
B) The purchase amount is over $250.
C) Sales tax should NEVER be charges for any instate University Purchase.           
D) Only purchases made over the Internet according to the Federal Commission on Internet Commerce Statute of 1999.
Correct Answer: C - Sales tax should never be charged on a university purchase.  We can provide a vendor with a “Certificate of Exemption”.

2- It is important that you know your single purchase and monthly transaction dollar limits. Do you know your limits?
A) My single purchase dollar limit is:  $          B) My monthly transaction limit is:  $
C) I don’t know my limit, but I will find out from my department before I use my card.

3- If I need to increase my single or monthly dollar limit, I should:
A) Apply for an increase by completing the Application/Change form
B) Split any large purchases into separate transactions
C) Contact my card manager for approval on the purchase.
Correct Answer: A - Complete the form and forward it to the P-Card Administrators to increase your limits.

4- Of the following items, which are restricted or allowed on your Purchasing Card?
A) Conference registrations
B) Airline tickets
C) A new computer for department
D) Flowers for an employee who just had a baby
E) Treating a vendor to a beer downtown
F) Food and non-alcoholic beverages at University meetings
G) Rental cars
H) Picking up the tab for a lunch interview with a potential employee
I) A wedding gift form our department for one of our employees who just got married.
Answers:
A) Allowed
B) Restricted
C) Restricted
D) Restricted
E) Restricted
F) Allowed
G) Restricted
H) Allowed - with signed approval
I) Restsricted

Making a Purchase - Review Questions

1- Which of the following is NOT true about the support documentation required for a purchase made with your P-Card:
A) The documentation needs the name of the vendor, date of purchase,description and price of item(s) purchased, and the toal dollar amount invoices.
B) You must keep the documentation for 5 years for audit purposes.
C) You may use the completed "Missing Receipt Form" if you lose the original invoice are unable to obtain the vendor issued invoice as documentation twice in a calander year .
D) Documentation is not required as long as I approve the purchase on the monthly statement.
C) Obtaining the itemized receipt at the time of purchase is preferred
Correct Answer - D: You must have documentation for each and every purchase you make with your purchasing card.

2- If I feel I have been charges incorrectly for a purchase, I should do the following:
A) Contact the vendor directly as soon as possible. If I can't resolve the problem sith the vendor, then contact Customer Services at the bank and start the transaction "Dispute " process.
B) Identify it on the monthly statement. My card manager will resolve the incorrect charges for me.
C) Contact the Program Administrators in Purchasing Services and provide them with the appropriate documentation so they can resolve it with the vendor.
Correct Answer - A: You should handle an incorrect charge on your statement. Make sure you do it as soon as possible since you only have 60 days or 2 billing cycles to dispute the charge with the bank.

3- If for some reason you do got get a receipt from the vendor or you lose your receipt, should do the following:
A) Send a e-mail to Purchasing and your card manager explaining how the receipt was lost.
B) When you reconcile the transactions on your monthly statemnet, mark it with a "LR" for lost receipt and initial it>
C) Complete the Missing Receipt Form.
Correct Answer - C: If all avenues have been exhausted to obtrain proper documentation, complete the Missing Receipt Form to keep with your records,

Review Questions - Reconciling Your Monthly Statement
1- Your signature on the Monthly Statement indicates the following:
A) This is a trick question - I am not required to the sign the MonthlyStatement.
B) YOu did not purchase any resitricted items,
C) You did not exceed your single purchase limit on any item or transaction.
D) You approve and can document all of the charges.
Correct Answer - D: Your signataure indicated approval of the charges on your statement and that you have the required support documentation in filed with the statement.

2- You have ____ days to disupte, with the bank, any questioned item or transaction that appears on your statement:
A) 7
B) 60
C) 90
D) 30
Correct Answer - B: You have 60 days or 2 billing cycles to dispute any transaction with the bank.

Review Questions - Audits
1- The P-Card Program requires an annaul audit of card records. For the audit, I and my department card manager should be prepared:
A) To review my violation record with the auditor.
B) To provide copies of all signed and approved monthly statementsa with the required supporting documentation,
C) To run like the wind because I never kept one receipt for anything I purchased and have never reconciled my monthly statements.
Correct Answer - B: Yes, this is what you need to provide for the annual audit.

 

Card Manager/ Supervisor/Administrative Reviewer

Remember: YOU Are Accountable!

Who is responsible if employees abuse Purchasing Card privileges? The employees of course, but as their supervisor or card manager, so are you.

Improper spending harms the university's financial well-being, integrity, and reputation. Supervisors and Card Managers have a duty to review ALL purchases and ensure they are made for a business purpose.
Question:
If an auditor or news reporter discovers your employee has charged a mountain of bagels each week using their Purchasing Card, who will be held responsible?
A) The employee who chareged the bagels.
B) Utah State University
C) You
D) All of the above
Correct Answer - D: All will be help responsible for "Bagelgate".

Understand Your Duties

Before you can effectively supervise purhcases, you need to understand your duties as a supervisor or card manager. You have the responsibility to:

*Know Purhcasing Card policies, procedures, and guidelines
*Enforce the Purchasing Card rules
*Conduct a monthly review of the transactions
*Ensure each purchase is reasonable, prudent, and for business use only.
*Investigate questionable transactions before signing off on them
*Sign and the date the monthly satements to indicate your approval.
Question:
Which excuse can you successfuly use during an audit or annual review?
A) I wasn't aware my cardholders were buying pesonal items with the card.
B) Other departments buy pizza for weekly team meetings.
C) I always use the Purchasing Card responsibily.
D) I don't really understand the monthly statements and reconcilation process.
E) None of the above
Correct Answer - E: None of these answers will fly. Remember, the buck stops with you!

Know and Enforce Policies

Before you can enforce the rules, you must know and understand them yourself, You have already learned about restricted items and the consequences for various offenses in this training. Remember, you can always review these rules any time on the Purchasing Services website or contact the Program Adminisstrators for clarification.
Question:
How can you become (and stay) familiar with the P-Card rules?
A) Review the rules on the Purchasing website.
B) Retake the Purchasing Card training ( in person or online).
C) Contact the Program Administrators with any questions.
D) All of the above
Correct Answer - D: These are all excellent resources, please make use of them.

Check for Problems

Each month, you should closely examine the purchases made using the University P-Card. In preparation for your review, the cardholder should have assembled and organized the required support documentation ( itemized receipts, e-mail confirmations, packing slips, etc.) If documentation is incomplete or missing, a memo of explanation must be included in the file. In addition, the cardholder should have resolved any transaction discrepancies by filing a dispute with the supplier or the bank .

During your review, you should verify that each purchase is for a valid and appropriate business purpose. Your signature on the Purchasing Card statement is required, and certifies that such a review has taken place.
Question:
Imagine you'r reviewing these transactions. Which two charges most warrent further investigation?
A) Office Depot (supplies) $29.95
B) Target (supplies) $50.00
C) Guido's Imports (car parts) $156.97
D) Answers A & B
E) Answers B & C
Correct Answer - E: These are unusual vendors for the University - you should investigate further.

Investigate "Red Flags"

Next, check for cnything our of the ordinary. Experience has shown that it is worthwhile to watch for "red flags" such as:
*Questionable purchases (personal items)
*Unusual suppliers
*Even dollar amounts (possible gifts or gifts certificates that may required additional support documentation)
*Incomplete documentation ( or frequent substitutions for itemzied receipts)
*Dates or totals from on receipts and statement don't match
*Excessive ordering of supplies (i.e.: toner, office supplies)

Know the answers to these questions:
*Why did we need this item?
*Why did we order this quantity?
*Where are the items now?
*Where is the original documentation?
Question:
Why should you questions orders that involve unusual quantities?
A) Extra items may have been ordered for personal use.
B)It's very easy to mistype numbers when filling out orders forms and transaction logs.
C) The University does not allow stockpiling of supplies.
D) Departments are required ro order items one at a time.
Correct Answer - A: The cardholder may have ordered extra items for personal use.

Avoid "LunchGate" and "GiftGate"
Remember all University purchases must be for a legitimate business purpose and must adhere to University Policy. The test for this is that each purchase should be prudent, responsible, and have a legitimate business purpose that supports the mission of the University.

When reviewing food charges, please refer to University Policy 516 for when and how often such expenses may occur. Food for your annual retreat might be fine, but more frequent treats (such as lunch for a weekly staff meeting) is considered excessive Remember the Meals and Entertainment Form MUST be completed whenever University funds are used to pay for food.

The Purchasing Card may be used to purchase gifts and/or gift certificates however, the transactions must adhere to University Policy 506 and have the required support documentation in place for these purchases.
Question:
Which of these transactions would be considered a prudent, responsible and ligitmate business purchase?
A) Birthday cards for employees
B) Software purchase for faculty personal use.
C) Printing costs for a marketing brochure
D) Biweekly business for two university employees
Correct Answer - C: Marketing and printing costs are considered a legitimate business expense, but REMEMBER all printing needs to be approved by the Public Relations Office before the order is placed with the supplier.

Stop Misuse
What should you do if you discover misuse of a Purchasing Card? Notify the Program Administrators in Purchasing Services immediately and they will determine what action must be taken to resolve the problem. There are a range of options for dealing with the misuse of cards, such as:
*Further training to educate the cardholder on proper card use.
*Change a purchasing card expenditure limit
*Suspend or revikethe card if necessary
*If you believe the problems are widespread, schedule a formal department audit of all expenditures.
Improper spending harms the university's financial well-being, integrity, and reputation.
Question:
Wwhich of the following offenses would constitute misuse?
A) Card loanded to another employee
B) Transaction split because it exceeds the card limit
C) Personal purchase made on the card
D) All of the above
Correct Answer - D: All of these constitute misuse of the USU P-Card

Report Fraud
Fraud is the misrepresentation or concealment of information with the intent to deceive another for personal gain. Fraud is a problem that affects the University and practically all organizations, regardless of size. location, or industry. Fraud is illegal and must be caught and reported. To report know or suspected fraud, consult the USU Internal Audits website.
Question:
Which of the following offenses would constitute fraud?
A) A cardholder loans a card to another employee for a departmental purchase.
B) You instruct a cardholder to purchase 5 new monitors for your office. He puts 6 monitors on his P-Card and takes one home for both personal and abusiness use.
Correct Answer - B: This is graud. The cardholder added an extra monitor to the order without permission. Of course you as a watchful supervisor or card manager would detect and address this immediately!

Summary of Your Responsibilities
*Understand and support University policies
*Oversee the procurement practices assigned to you
*Know what constitutes a violation of P-Card rules
*Verify that all purchases have an official university business purpose
*Revview, sign and date Purchasing Card statements each month
*Question any suspicious charges or purchases
*Request the cards be suspended or revoked if necessary
*If in doubt, contact Purchasing Services or refer to our website at:

www.usu.edu/purchasing

Summary

We;ve covered many important items that you'll need to know as you use the University Visa Purchasing Card.

Here are the basucs:
1- Your card is a trued Visa credit card. Do not give you card or card number to anyone and keep it in your pocession or a secure location at all times. Your are responsible for what occurs on your card.

2- Sales Tax should not be charged on any in state purchase.

3- You cannot use it for personal items. Items such as travel, unapproved meals, fuel and others are restricted as well. A complete list of the restricted items is available on our website.

4- Keep the required support documentation, which includes the name of the vendor/supplier, date of purchase, an itemized list of the items purchased, and the cost of the transaction.

5- Learn what constitutes a violation on your record. This information is availble on our website.

6- Review, reconcile, and verify your monthly statement. Your signataure verifies that all the information is correct and all support documentation is attached

If you have any questions in the future regarding use of the USU P-Card, you can refer to the Purchasing Card Guideline on our website, contact us, or you may re-take any or all of the online training.