PROCUREMENT CARD PROGRAM

Procurement Card Policy Guide How does it work? Process Overview General Program Information Cardholder Responsibilities How to Obtain a Procurement Card Receiving a Procurement Card Replacement Card Canceling a Card Lost or Stolen Cards Changes or Revisions Regarding Card Use Using the Card Acceptable Procurement Card Purchases Unacceptable Procurement Card Purchases Blocked Suppliers Using the Card to Make a Purchase in Person Using the Card to Make a Purchase by Telephone Using the Card to Make a Purchase by Mail Using the Card to Make a Purchase by Fax Special Purchasing Circumstances Declined Transactions Reconciling Monthly Statements If a Cardholder's Records Do Not Agree with the Monthly Statement Defective Items Payment Procurement Card Audits EASY System Menu Selection Screen Review Current Billing Statement Purchasing Credit Card Statement Screen Approve Current Billing Statement To Search for a Billing Statement by Billing Month/Year Splitting the Cost of a Transaction Between Different Account Codes Reviewing Tranaction Detail and Disputing a Transaction Exiting the EASY System

Process Overview

A Procurement Cardholder may use the Procurement Card in the same way as a personal credit card to make purchases of supplies or services for University use. Purchases may be made by telephone, mail, or in person with any supplier that accepts MasterCard as a form of payment. When making a purchase by Procurement Card, it is not necessary to complete and forward a purchase request to Supply Chain Shared Services. The purchase transaction shall normally be accomplished completely between the Cardholder and the supplier.

As purchases are made, Cardholders should maintain a log of all transactions. This log should be kept along with all receipts and packing slips provided by suppliers. This information will prove helpful in keeping track of all purchases made using the Procurement Card. Should it be necessary to return any supplies or resolve any billing disputes, this information is also needed to document University expenditures of general and sponsored funds and be available for review by internal and external auditors.

Each month, the Cardholder will be provided with a statement from Citibank summarizing all purchases made with the Procurement Card and identifying any balance due. This information will also be available online in the University's Electronic Approval System (EASY).

Online verification and approval of Procurement Card transactions is quick and easy. The EASY system enables a Cardholder to review, approve, and assign charges made with their Procurement Card. Any outstanding balance due on the Cardholder's account will be paid in full each month by Accounts Payable. Payment will be made automatically and charged to the Cardholder's designated University budget account(s).

General Program Information

Cardholder Responsibilities

University Procurement Cardholders are responsible for:

		Keeping their Procurement Card and Card Account Number confidential. The only person authorized to use a Procurement Card is the person to whom it is issued.
		Using the Procurement Card for University business.
		Making purchases in accordance with established University Procurement Card guidelines.
		Understanding that intentional misuse or abuse of the Procurement Card will result in the immediate revocation of charging privileges and possible disciplinary action.
		Not splitting transactions to evade maximum per transaction dollar limits.
		Obtaining receipts for each transaction.
		Retaining receipts on file for seven (7) years.
		Notifying Supply Chain Shared Services' Procurement Card Administrator if a supplier charges for merchandise which has not been shipped.
		Notifying Supply Chain Shared Services' Procurement Card Administrator if a supplier indicates a minimum amount of goods or services must be purchased in order to use the Procurement Card.
		Dealing directly with a supplier in the event a problem with a transaction arises. If the problem cannot be resolved, the Cardholder must notify Supply Chain Shared Services' Procurement Card Administrator and Citibank within sixty (60) days of the purchase.
		Reporting a lost or stolen Procurement Card immediately to Supply Chain Shared Services' Procurement Card Administrator and Citibank.
		Surrendering the Procurement Card when changing departments within the University or when terminating employment with the University.

Note: Cardholders are authorized to contact Citibank directly for general inquiries, 800-248-4553.

How to Obtain a Procurement Card

By signing and submitting a completed Agreement form, the person requesting a Procurement Card acknowledges his/her understanding of the University Procurement Card Program and agrees to abide by the guidelines established for the program. Any misuse of the Card may result in the revocation of the Cardholder's charging privileges. By approving the provision of a Procurement Card for a designated Cardholder, the Cardholder's department agrees to be responsible for all charges made by the designated Cardholder.

Receiving a Procurement Card

After the Request for Procurement Card form is received by Supply Chain Shared Services' Procurement Card Administrator, information will be forwarded to Citibank. Procurement Card applications take about two (2) weeks to process. The Administrator will mail a Procurement Card directly to the Cardholder at the address identified on the Card application form. Upon receipt of the Card, the Cardholder should check to make sure all of the information is correct. If a mistake is found regarding the Card's information, Supply Chain Shared Services' Procurement Card Administrator should be contacted immediately at 443-997-5650. If the Card's information is correct, the Cardholder should sign and activate the Card. The Card may be used immediately thereafter.

Replacement Card

University Procurement Cards shall expire every four (4) years. Authorized Cardholders shall be provided with a new Procurement Card automatically. Upon receipt of a new Card, it shall be the Cardholder's responsibility to destroy the expired Card.

Canceling a Card

The department chairperson/administrator shall be responsible for notifying Supply Chain Shared Services' Procurement Card Administrator regarding any change in the employment status of a Procurement Cardholder. Upon receipt of such notification, the Administrator shall contact Citibank and have the Card canceled immediately. The department chairperson/administrator shall also be responsible for destroying the Card.

If a department chairperson/administrator wishes to have a Cardholder's Card canceled for any reason, this may be done immediately by calling Supply Chain Shared Services' Procurement Card Administrator.

Lost or Stolen Cards

The Card is University property and should be secured as one would secure personal credit cards. If a Card is lost or stolen, Supply Chain Shared Services' Procurement Card Administrator and Citibank should be notified immediately. Citibank Customer Service may be reached at 800-248-4553, 24 hours a day, 365 days a year. Upon verbal notification of a lost or stolen Card, Citibank will block any further use of the Card until a replacement has been provided. A replacement Card with a new account number will be mailed within two (2) business days. The University/Cardholder will not be held liable for any purchase(s) or charge(s) incurred by use of the Card following receipt by Citibank of notice in writing of the loss or theft of a Card. If a Card is stolen, it is also recommended that the University Security Office be notified.

Changes or Revisions Regarding Card Use

If a Cardholder or department chairperson/administrator requires a change in a Card's monthly credit limit or charging privileges, they should contact the Supply Chain Shared Services' Procurement Card Administrator. The Administrator will work with the Cardholder, department chairperson/administrator, and Citibank to implement any appropriate changes.

Using the Card

Use of the Card must be consistent with good purchasing practices and with University procurement policies and procedures. The Card may be used with any supplier that accepts credit cards as a form of payment. Ideally, a supplier solicited to provide a needed supply or service should be one with a historically good business relationship with the University.

Acceptable Procurement Card Purchases

The Card may be used for most of the types of purchases necessary to conduct the University's research and teaching activities. Any purchase $2,500 or less in unit price, or total aggregate value, for the categories listed below may be considered to be an acceptable use of the Card.

		Office supplies
		Laboratory supplies
		Housekeeping/Maintenance supplies
		Computer supplies/software
		Small equipment and appliances
		Subscriptions
		Conference/Seminar registrations
		Dues
		Publications/Reprints
		Delivery services (e.g., UPS, FedEx, etc.)
		Equipment repairs

Unacceptable Procurement Card Purchases

		Travel/Hospitality expenses
		Alcoholic beverages
		Cash advances
		Cell phones & cell phone enabled devices
		Automotive repairs
		Controlled substances
		Radioactive material
		Hazardous material
		Animals
		Personal items
		Items available from the University Supply Store
		Independent Contractors or Consultants

A Cardholder determined to have made unauthorized purchases using the University's Procurement Card may be held liable to the University for the total amount of all unauthorized purchases. The University is responsible for making payment to Citibank for any unauthorized purchases made by a Cardholder and must seek repayment from the Cardholder. Unauthorized use of a University Procurement Card will result in the Cardholder losing all charging privileges and may result in additional disciplinary action.

Blocked Suppliers

Some categories of suppliers have been “blocked” from usage with the program. If a Cardholder attempts to make a purchase from one of these suppliers, the transaction will be declined. Examples of blocked suppliers include: automobile rental agencies, hotels, restaurants, etc.

Using the Card to Make a Purchase in Person

When using the Procurement Card to make a purchase in person at a supplier, present the merchandise and the Card to the cashier. Inform the cashier that the merchandise being purchased is for use by the University and that the purchase is exempt from sales tax. The University's Retail Sales Tax Exemption number is 3100612-6 and is printed on the Card. Most suppliers with which the University regularly conducts business know the University is exempt from sales tax and already know the University's sales tax exemption number. The cashier should then process the sales transaction and present the Cardholder with a transaction receipt to sign for the net value of the merchandise being purchased. This receipt should be retained to document the transaction. The receipt may also be needed should it be necessary to return or exchange the merchandise purchased or resolve any billing disputes.

Using the Card to Make a Purchase by Telephone

After confirming the price, availability and specifications of the needed merchandise, the Cardholder should advise the supplier's representative that they wish to place an order using a Johns Hopkins University Procurement Card. The Cardholder should inform the supplier not to charge the Card until the item(s) being purchased is actually shipped.

Advise the supplier that all packages/packing slips must identify the Cardholder's name and University address. All mailing labels/packing slips should state “Procurement Card” as the method of payment. The Cardholder's account number should not appear on any mailing labels or packing slips. This number needs to be kept as confidential as practicable.

Vendors should be advised not to send separate invoices for the item(s) purchased to the University's Accounts Payable office. The supplier will receive payment directly from Citibank.

Using the Card to Make a Purchase by Mail

Occasionally, it may be necessary or convenient to place an order through the U.S. Mail. In instances of this kind, any required Procurement Card information, e.g., account number, Card expiration date, etc., should be mailed to the supplier in a sealed envelope. To protect the confidentiality of the Cardholder's Procurement Card information, this information should never be sent by postcard.

Using the Card to Make a Purchase by Fax

Occasionally, it may be necessary or convenient to place an order by fax. This means of ordering is discouraged. It is very easy to compromise a Cardholder's Card information using this means of ordering.

Special Purchasing Circumstances

Declined Transactions

Transactions may be declined by either for “blocked” suppliers or for transactions that exceed the dollar limits of a Card. If a Cardholder thinks a transaction should not have been declined, they should contact the Supply Chain Shared Services' Procurement Card Administrator. The Administrator will then discuss the matter with Citibank.

Reconciling Monthly Statements

Each Cardholder will receive a monthly statement from Citibank. This statement will identify each transaction made with the Card during the previous billing cycle. If there has been no activity on the Card during a billing cycle, no statement shall be received.

Items should not appear on the statement that have not been shipped by the supplier. The supplier has been instructed to enter an item for payment only after it has been shipped. Each month, the Cardholder should reconcile their monthly statement with their receipts and monthly log of Procurement Card transactions. Monthly statements should be kept on file for seven (7) years along with other Procurement Card transaction documents.

If a Cardholder's Records Do Not Agree With the Monthly Statement

There may be occasions where purchase transactions listed on a Cardholder's monthly statement do not correspond to the Cardholder's records. Should such an instance occur, the Cardholder should first contact the supplier involved to resolve the error. If a supplier agrees an error has been made, it will credit the Cardholder's account.

Citibank shall acknowledge a Cardholder's request to resolve a disputed charge within thirty (30) days of notification, unless it has already corrected the error. Citibank shall correct or explain why it considers a disputed charge to be correct within ninety (90) days of a disputed charge.

Defective Items

If an item purchased with the Procurement Card is found to be defective, the Cardholder has the responsibility to alert the supplier and to obtain a replacement item as soon as possible. If a supplier refuses to replace or correct a defective item, then the purchase transaction will be considered to be in dispute. If such a situation arises, the Cardholder must complete and fax a Cardholder Dispute Form to Citibank.

Payment

Each month, Accounts Payable will receive a data transmission from Citibank identifying all University Procurement Card transactions for that billing cycle. Accounts Payable shall remit payment to Citibank electronically for all identified charges. Charges will be made to the individual Cardholder's designated University account number(s). Cardholders do not have to forward anything to Accounts Payable for their bill to be paid.

Procurement Card Audits

Purchases made using the Procurement Card are subject to audit/review by appropriate University personnel. Outside auditors may also review Procurement Card documentation if warranted. For these reasons, it is important that all Procurement Card documentation such as receipts, packing slips, etc. be retained on file by Cardholders for seven (7) years.

EASY System
  

1_ : Clear Help Quit ----------------------------------------------------------------------------------------- EASY: 0.05 Purchasing Credit Card Statement System 8/23/2006 16:40:12 Menu Selection 2 1) Review Current Billing Statement 3 2) Examine All Statements for Current Billing Cycle 4 3) Statement Search by Area, or Area-Org (Area and/or Area-Org required) 5 Service Selection:_ 6 Search Criteria: Billing Month/Year: 7 / 2006 Credit Card Number: _______ Area/Org: ___ /____ 7 Document Number: ________ Last Record Processed: Document: ___________ Card Number: __________ 8 Press the "HOME" key to go to the Action line.

After signing on to the JHU Mainframe and clearing your screen, type EASY and press the "ENTER" key. This will bring you to the Purchasing Credit Card Statement System Menu Selection Screen. The cursor will be positioned at the Service Selection field.

1. The Action Line. A different list of commands will appear at the top of each screen. To perform a command, move the cursor to the Home position by pressing the "HOME" key on your keyboard. Type the letter of the command you want to execute, and press the "ENTER" key.

2. Service Selection #1 allows the Cardholder to review his/her own transactions from the current billing cycle and to search for a billing statement by billing month/year.

3. Service Selection #2 allows the Approver to review and approve all billing statements of Cardholders for whom he/she is responsible and to search for a billing statement by billing month/year and/or credit card number.

4. Service Selection #3 allows the Approver or Inquirer to search for billing statements in a specified Area or Area-Org.

5. Service Selection field - Type a 1, 2, or 3.

6. Search Criteria fields. The billing month/year will always default to the current billing cycle, which is the previous month. Prior months/years may be entered in this field for review purposes only. The JHU Card Number field is used in conjunction with Service Selection #2 to search for a billing statement by billing month/year and/or credit card number. The Area/Org field is used in conjunction with Service Selection #3 to search for billing statements in a specific Area or Area-Org.

7. Information area. Error messages and action line prompts will appear here.

Review Current Billing Statement
  

_ : Approve Detail First Goback Help Last Next Quit Restore Save Text Xsplit ------------------------------------------------------------------------------------------- EASY: 4.30 Purchasing Credit Card Statement 8/23/2006 16:48:55 Page 1 of 1 1 Cardholder : XXXXX,XXXX 2 Card No.: 1234567 3 Billing Cycle: 7/2006 4 Account: XXXX-XXX-XXXX-XXXX 5 FAS Sweep Date: 8/29/2006 Last Change: XXXXXXX on 8/09/06 at 12:11:50 6 Transaction 7 Proc 8 Revw 9 Merchant Date Stat Stat 10 Account 11 Amount WILCOXON RESEARCH INC 7/04/2006 ORIG U XXXX XXX XXXX XXXX 47.19 ISMART 7/04/2006 ORIG U XXXX XXX XXXX XXXX 775.00 FISHER SCI 7/05/2006 ORIG U XXXX XXX XXXX XXXX 255.69 PARALLAX INC 7/05/2006 ORIG U XXXX XXX XXXX XXXX 66.00 MONDO TRONICS 7/11/2006 ORIG U XXXX XXX XXXX XXXX 130.95 MC MASTER CARR SUPPLY CO 7/13/2006 ORIG U XXXX XXX XXXX XXXX 15.13 OFFICE DEPOT 7/17/2006 ORIG U XXXX XXX XXXX XXXX 87.03 12 Total for billing cycle: 1,376.99

Purchasing Credit Card Statement Screen

Screen Definitions

1. Cardholder: Individual to whom the card is issued.

2. Card Number (also JHU Card Number): This seven-digit number is assigned to individual accounts within the EASY Accounting System.

3. The billing cycle is the month and year the transactions occurred.

4. Default budget number assigned to the procurement card. The transactions on the statement will be charged to this budget number unless the Approver changes the account number next to the transaction.

5. FAS Sweep Date is the day information is downloaded into the CUFS system for expenditure statements. Changes must be made prior to this date.

6. The transaction date is the day that the transaction was posted to the statement.

7. Process Status field refers to the budget information. The initial status of a transaction is original (ORIG). This field will either be ORIG, CHNG (change), or SPLIT once transactions have been reviewed and approved.

8. Review Status field. The initial status of a transaction is U for unapproved. This field will either be A for approved or D for dispute, once transactions have been reviewed and approved.

9. Merchant is the vendor's name from which the commodity was purchased.

10. Account number to which the transaction will be charged.

11. The amount of the transaction.

12. The total amount that was spent on the Procurement card during the current billing cycle.

Approve Current Billing Statement

At the Purchasing Credit Card Statement screen, you have several options:

1. To approve all the transactions listed, type A for Approve at the "HOME" position. Press the "ENTER" key.

2. To approve a specific transaction, cursor down to the desired transaction. Tab to REVW Stat field, and type A for Approve. Press the "ENTER" key.

3. To change the default account code to a different account code on a specific transaction, cursor to the desired transaction. Tab over to REVW Stat field, and type A for Approve. Tab to Account field, and type over the default budget code with the new budget code. Press the "ENTER" key. Press the "ENTER" key. Notice that the PROC Stat field has changed from ORIG to CHNG.

Once all changes and approvals are complete, return cursor to the "HOME" position, type S to Save. Press the "ENTER" key.

The Restore command on the action line puts the default account code back onto any, and all, transactions where the account code has been changed, or where the cost of a transaction has been split. The Restore command does not change an approved transaction back to unapproved status.

To Search for a Billing Statement by Billing Month/Year

Splitting the Cost of a Transaction Between Different Account Codes

  

_ : Goback Help Save Quit ---------------------------------------------------------------------------------------- EASY: 4.32 Purchasing Credit Card Statement 8/23/2006 16:53:46 Page 1 of 1 Cardholder: XXXXX, XXXX Card No: 1234567 Billing Cycle: 7/2006 _____________________________________________ FAS Sweep date: 8/29/2006 | Transaction Date: 7/04/2006 | Transaction | ORIGINAL acct. amount: 47.19 | Merchant Date | ORIGINAL Acct: XXXX-XXX-XXXX-XXXX | WILCOXON RESEARCH INC 7/04/2006 | | ISMART 7/04/2006 | New Accounts Amount | FISHER SCI 7/05/2006 | ___ ____ ____ ____________ | PARALLAX INC 7/05/2006 | ___ ____ ____ ____________ | MONDO TRONICS 7/11/2006 | ___ ____ ____ ____________ | MC MASTER CARR SUPPLY CO 7/13/2006 | ___ ____ ____ ____________ | OFFICE DEPOT 7/17/2006 | ___ ____ ____ ____________ | | ___ ____ ____ ____________ | |____________________________________________| Total for billing cycle: 1,376.99 Press the HOME key to go to the Action line.

To split the cost between different accounts for a specific transaction:

1. Press the "HOME" key and type X for Xsplit. Your cursor will be at the REVW Stat field. Cursor to the desired transaction. Type A for Approve in the REVW Stat field. Press the "ENTER" key.

2. Enter desired budget numbers and amounts. Individual transactions may have up to six (6) budget numbers, and the system only requires AREA-ORG-OBJT. Include a decimal when entering amounts.

3. Once completed, press the "ENTER" key.

4. Type S to Save your work and press the "ENTER" key. The system will return to the previous screen.

5. Notice that a separate line is listed for each account code, and that the Proc Stat has changed from ORIG to SPLIT.

Reviewing Transaction Detail and Disputing a Transaction
  

_ : Goback Help Quit ---------------------------------------------------------------------------------------------- EASY: 0.31 Credit Card Transaction Detail 8/23/2006 16:47:24 Item number : 0001 Cardholder: XXXX XXXXX Billing Cycle : 7/01/2006 to 7/28/2006 Card No: 1234567 FAS Sweep Date : 8/29/2006 Account: XXXX-XXX-XXXX-XXXX Purchase Proc Revw Posting Merchant Date Stat Stat Account Date Amount ISMART 7/04/06 ORIG U XXXX-XXX-XXXX-XXXX 7/05/06 750.00 ---------------------------------------------------------------------------------------------- Ref. No.: 24071407309309042701700 Issuing Bank ID: 001 Billing Ref. No.: 05298 Sales Tax Charged: Originating Acct: 3030665 Sales Tax Amount: 0.00 Trans Code: Process Date: 7610 Merchant Id. Number: 44180105500789 Acquirer Id: 00407140 Merchant Category Code: 7372 Reporting Cat Cde: 24 Reporting Category Dsc: PRINTERS Press the HOME key to go to the Action line.

To see the detail about a specific transaction:

1. Press the "HOME" key and type D for Detail.

2. Cursor to the desired transaction and press the "ENTER" key.

3. If desired, print the transaction and its detail by using your computer's print function.

4. Type G to Goback to the previous screen.

5. At the "HOME" position, type T for Text, to document the dispute. Cursor to desired transaction. Tab to the REVW Stat field.

6. At the REVW Stat field, type D to mark this transaction as a disputed transaction. Press the "ENTER" key. The text edit screen will appear.

7. Once dispute has been documented, press the "HOME" key. Type U to Update the text to the transaction, and press the "ENTER" key. System will return to the previous screen.

8. Cursor will be at the "HOME" position. Type S to Save.

Disputed transactions will be paid at the sweep date. The vendor should issue a credit for the disputed transaction. Departments are responsible for developing a system that tracks disputed transactions as well as credits.

Exiting the EASY System

To exit the EASY System, press the "HOME" key. Type Q to Quit. System will present a blank screen. Access to another JHU electronic system (i.e., EB14, REQN, ESUP, etc.) may be entered or one may exit the JHU Mainframe. To exit from the JHU Mainframe, type QUIT then press the "ENTER" key.

Reminder: The sweep date is the third from the last business day each month. All transactions must be reviewed and approved prior to the sweep date.

Supply Chain Shared Services
Johns Hopkins University
nancy.rose@jhu.edu
last updated 1.18.07