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Purchasing Card Program
Intent
The Auburn University Purchasing Card was designed to make the purchase of relatively small dollar items (under $2500) easier for the department. Use of the card is not, however, intended to replace the bid process where that process is appropriate. Cardholders should be aware of and sensitive to the
State Bid Law
and contact AU Procurement and Payment Services for assistance when it is expected that an aggregate of $7,500 or more of one commodity will be purchased during the fiscal year. In many cases, Procurement and Payment Services can also be of service in negotiating discounts or more favorable pricing on lower dollar purchases.
Goals
The goals in establishing this program included: allowing departments to acquire goods and supplies in a timely manner, increasing vendor satisfaction (less bookkeeping, faster payment), reducing departmental "hassle" with vendors, eliminating blanket purchase orders, reducing the number of vendor checks issued, providing information that
might allow Procurement and Payment Services to negotiate discount prices, and allowing all areas to focus their
efforts on higher dollar/exposure items.
Controls
AU's Visa Purchasing Card program utilizes both internal management controls and a number of management reports designed to ensure the purchasing cards are being used in accordance with AU policies and procedures. The internal management controls are inherent to the policies and procedures of this user's guide. Management reports are
used by Procurement and Payment Services and Internal Auditing to monitor card use for compliance with these policies.
The responsibility for card control ultimately rests with you as a purchasing card user. The policies contained in this user's guide are designed to protect both you and the University. It is considered a privilege to participate in this program and it is expected that these policies will be followed.
Personal use of the AU Visa Purchasing Card is not allowed.
All purchases made on the card should be for official University business. Misuse of the card
will result in revocation of the card, disciplinary action up to termination, and possible
filing of criminal charges.
TABLE OF CONTENTS FAQ
- Procedures
Obtaining a Card
Guidelines for Use of the Card
Reconciliation
Disputed Charges
Lost/Stolen Cards
Employment Termination/Card Expiration
- Print Purchasing Card Forms
- Who to Call
PROCEDURES
Obtaining a Card
The Purchasing Card program is available to all University departments,
with the card actually issued to an employee. All applicants will be required to complete a
Purchasing Card Cardholder Application Form - BO 99-10
and attend a brief orientation session before obtaining the card. Although
the card is issued in the name of the employee, your personal credit history will, in no
way, be affected by the Purchasing Card.
Once your application has been processed, your card will be sent to the Program Administrator, Debbie Griggs. She will contact you to schedule your attendance at an orientation session. The card will be issued to you at the completion of this mandatory session upon presentation of your photo ID.
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Guidelines for Use of the Card
You are encouraged to use the Purchasing Card for small dollar purchases as well as those exempted from the requirement of a Purchase Order as outlined in the
Spending Policies
of the Financial Policies and Procedures Manual. All purchases must be made in compliance with Auburn
University financial policies and procedures. As a cardholder, you are responsible for all
charges made to the card and as one to whom purchasing authority has been delegated to
insure that all purchase activity is conducted in compliance with the NAEB Code of Ethics.
Therefore, keep your card secure and protected at all times.
Use of the card for personal purchases is strictly prohibited.
Individual purchases on the Purchasing Card are limited to $2500 per
transaction including freight although some cards may have a lower dollar per transaction limit ($1000 or other) by departmental request. Transactions for more than that amount will be denied at the point of sale.
Charges may not be split amongst several invoices in an attempt to circumvent the $2500 transaction limit. Purchases of over $2500 require a AU Purchase Order.
In addition, each card will have associated with it a monthly spending limit. This limit
will be based on your spending needs and will be established by the Purchasing Card
Administrator. If there is a need to have that limit reevaluated in the future, complete a
Purchasing Card Account Maintenance Form - BO 99-11
and submit it to the Program Administrator.
Use of the card is restricted to the cardholder...delegation of the card is not allowed.
Contact the Program Administrator if student employees need
access to a Purchasing Card. As with all purchases, the card should be used only for those
purchases that are in the best interest of the University.
Examples of items that
SHOULD
be purchased with the card include:
- Most AU purchases under $2500 (including those on AU contracts)
- AUHDCC official guest lodging only (reference purpose for stay)
- Printing, including business cards, requires pre-order approval from OCM
- Subscriptions
- Institutional memberships
- Phone and fax orders from warehouse facilities
- Purchases made on the Internet (screen print)
- Conference registration fees
- Federal Express shipments
- UPS shipments
- Fuel purchases (University/State vehicles
ONLY
- Reference license plate number)
- Airline tickets (reference purpose of trip)
- Guest meals (include itemized receipt, guest list and business purpose) - refer to
Entertainment Policy for more information
- Cell phone service (New contracts must be approved by department head)
Because of either a need for additional approvals or mandated reporting requirements, some items, although under $2500 cannot be purchased with the card.
Examples of items that CANNOT be purchased with the card include:
- Any professional service
- Repairs
- Rentals
- Travel related expenses other than airfares and conference registration fees
- Cash advances
- Capital items
- Controlled substances (including radioactive materials and drugs)
- Livestock and laboratory animals
- Maintenance or service agreements
- Software license agreements
Keep in mind that a contract or grant account may restrict the purchase of certain items. As the cardholder it is your responsibility to insure that all purchases are in compliance with restrictions placed by the contract or granting agency, as well as A-21
guidelines.
In general, the flow of use of the Purchasing Card is as follows:
- Cardholder makes purchase and obtains appropriate receipt for documentation.
- Cardholder denotes the account(s) and account code(s) to be charged for that purchase on the receipt.
- Cardholder gives all documentation to the department reconciler (ie ... administrative assistant, bookkeeper) who is responsible for the account reconciliation.
- Department reconciler allocates all charges on monthly statement and submits reconciliation to Procurement and Payment Services by the 22nd of the month.
- Procurement and Payment Services makes one payment to SunTrust for all AU charges in that billing cycle.
The cardholder is responsible for obtaining itemized receipts for all Purchasing Card purchases.
When an itemized receipt is not available, itemized supporting documentation must accompany the receipt. In many cases, when placing orders by phone or fax, the packing slip may provide the itemization needed. The account numbers and sub-codes to be charged for each purchase
must
be denoted on the receipt with the receipt given to the department reconciler who will be completing the monthly reconciliation of your departmental Purchasing Cards.
Procurement and Payment Services will process one (1) payment to SunTrust for the entire balance charged by the University. Each department will submit a reconciliation of the accounts within their department that reflects which university accounts should be charged for those departmental purchases.
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Reconciliation
On the 8th of each month, SunTrust will prepare a memo statement for each card and send it to the cardholders. The cardholder should review the charges reflected on that statement for accuracy. Discrepancies may include failure to receive goods, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. Any discrepancies should be pursued immediately with the vendor. Disputes that cannot be resolved in that manner must be addressed to SunTrust within 60 days on a
Purchasing Card Disputed Item Claim Form - BO 99-14.
Copies of the Disputed Item Claim Form should be forwarded to the departmental reconciler and forwarded to Procurement and Payment Services with the Reconciliation.
In addition to the memo statement sent to each cardholder, all cardholders and department reconcilers have 24/7 access to charges via the Internet at
https://payment2.works.com . That reconciler will be responsible for
insuring:
- They have supporting documentation for each purchase
- That each charge has been made within AU policies
- That a Disputed Item Claim Form is present for all charges being disputed with SunTrust.
- The account allocation is done within the guidelines of the Cost Accounting Standards.
The reconciler will reconcile that statement and prepare a
Purchasing Card Reconciliation Form - BO 99-15
allocating the charges for that month and submit it to Procurement and Payment Services by the
22nd
of each month. The information reflected on that form will be entered into the accounting system by the Business Office prior to the end of the month. Departments that fail to comply with this timetable will find their charge privileges suspended. The Purchasing Card Reconciliation form must be approved by Department Head, Dean/Director or the cardholder's administratively senior supervisor.
Reconciliations containing charges for the unit head that would require the next higher administratively senior supervisor's approval were they on a voucher, (ex. airfare, conference registration fee, cell phone expenses), require that same approval on the reconciliation.
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Disputed Charges
If there is a discrepancy on the Visa Purchasing Card monthly memo statement, you should
first
contact the vendor to try to resolve the situation. If it is resolved, you should verify the correction when the next monthly memo statement arrives.
If the dispute cannot be resolved with the vendor, you should complete a
Purchasing Card Disputed Item Claim Form - BO 99-14.
and send the original to SunTrust and a copy to Procurement and Payment Services (with reconciliation). Disputed items should be reported within 60 days of the statement date. Any disputed items reflected on the monthly statement must be allocated (to an Auburn University account) at that point. Any credits resulting from disputes will be allocated back to the account initially charged when the credit appears on the statement.
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Lost/Stolen cards
If your Purchasing Card is lost or stolen, immediately contact the Program Administrator, Debbie Griggs at
844-3634. Your card will be immediately canceled with a new one sent to the Program Administrator for distribution.
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Employment Termination/Card Expiration
Should you leave the employment of the University, complete the
Purchasing Card Maintenance Form - BO 99-11
to delete the account, cut your card in half and return it (taped to the Purchasing Card Maintenance Form) to your department reconciler or supervisor. Your department will send both the form and card to the Program Administrator. In addition, call SunTrust at 1-800-836-8562 to cancel your account.
All cards will automatically be renewed every three (3) years for the life of the contract.
These replacement cards will be sent to the Program Administrator for distribution.
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Print Purchasing Card Forms
Purchasing Card
Return to Table of Contents
Who To Call:
SunTrust Customer Service Representative
1-800-836-8562
- Account Balances
- Lost or stolen cards (reorders)
- Account assistance
Visa Purchasing Program Administrator
Debbie Griggs
Procurement and Payment Services
griggdd@auburn.edu
311 Ingram Hall
Auburn University, AL 36849-5101
1-334-844-7771
- Establish New Account
- Account Changes
- Lost or Stolen Card Notification
- Cancellations
- Works Payment Manager Assistance
Sharon Storrs, Financial Assistant III
storrsl@auburn.edu
or
Joanna Moore
moore25@auburn.edu
311 Ingram Hall
Auburn University, AL 36849-5116
1-334-844-7771
- Purchasing Card Reconciliation/ Account allocation questions
- Disputed Transactions
- Statement Copies
- Works Payment Manager assistance
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