JMU - 4220 MasterCard Purchase Charge Card

Section Name: MasterCard Small Purchase Charge Card

Section Number: 4220

Effective Date: October 1, 2007

.100 General
.200 Request, Change or Cancel a Card
.300 MasterCard Small Purchase Charge Card Security
.400 Returns, Credits, and Disputed Items
.500 Reconciliation of the MasterCard Charge Card Statement
.600 Purchases/Expenditures: .610 Restricted Purchases; .620 E-Campus Purchases; .630 Gift Card Purchases; .640 Infactions on the Small Purchase Charge Card
.700 Responsibilities: .710 Department Head/Approving Authority; .720 Cardholder; .730 Finance Division
.800 Procedures: .810 Department/Department Head/Approving Authority; .820 Cardholder; .830 Accounts Payable
.900 Forms Preparation and Submission: .910 MasterCard Small Purchase Charge Card Delegation Agreement; .911 Required; .912 Where to Obtain Blank Forms; .913 Number of Forms to Complete; .914 Where to Send Completed Forms; .915 Form Preparation Instructions; .920 Department Purchasing Record MasterCard Small Purchase Charge Card; .921 Required; .922 Where to Obtain Blank Forms; .923 Number of Copies; .924 Form Preparation Instructions; .930 Statement Cover Sheet For Payment To MasterCard; .931 Required; .932 Where to Obtain Blank Forms; .933 Form Preparation Instructions; .940 MasterCard ATV; .941 Required; .942 Where to Obtain Blank Forms; .943 Form Preparation Instructions

.100 General

MasterCard Small Purchase Charge Card (SPCC) offers departments an alternate payment method when making small purchases. This method gives departments the opportunity to purchase goods and services, costing $4,999 or less without preparing a Departmental Purchase Order (DPO). MasterCard is the charge card vendor for the Commonwealth of Virginia.

The charge card eliminates vendor invoices and consolidates multiple vendor payments into one monthly payment to MasterCard. MasterCard makes payments directly to the vendors. Information reports are available to help cardholders and departments maintain control over purchases and payments. Departments shall maintain a record of their purchases so spending limits can be monitored and purchasing activity can be reconciled to the monthly card statements. Accounts Payable does not require the Purchasing Record for payment processing, however departments must retain all MasterCard records for three (3) years plus current fiscal year for auditing by the Office of Accounts Payable.

Currently, use of the SPCC is limited to amounts up to $4,999 per purchase transaction. Departments are liable for authorized charges made using the card, cardholders are responsible for official University purchases only. The University does not permit use of the card for personal items; cash advances, and travel expenses. To maximize the reduction in administrative costs, cardholders should make purchases from vendors who accept the card. To save administrative time, departments may use the following expenditure account codes for expenditures charged to the card.

120900 - All SPCC purchases of Contractual Services.

130900 - All SPCC purchases of Supplies and Materials.

220900 - All SPCC purchases of Equipment.

These codes are for expenditure control only, DO NOT USE THE CODES FOR BUDGET REQUESTS.

Cardholders may contact the MasterCard Program Administrator, x87396 or x87395 if they have questions concerning appropriate use of the card.

.200 Request, Change or Cancel a Card

Department Heads may request cards for employees who have authority to purchase items for the department. To request cards, the Department shall complete the MasterCard Small Purchase Charge Card Delegation Agreement form and forward it to the MasterCard Program Administrator, MSC 5712 for processing. The MasterCard Program Adminstrator will notify the department when they receive the card. Employees shall come to the Accounts Payable Office to pick up the card and to sign the Delegation Agreement acknowledging that They have received the card. A picture id as well as a document providing your social security number is required when picking up your card.

Cardholders may contact the MasterCard Program Administrators by email at dellinjx@jmu.edu or shiffltl@jmu.edu, to have changes made to existing cards. Department Heads shall approve any changes to information on the Delegation Agreement.

Cardholders shall return cards to the Accounts Payable Office immediately upon request of their Department Head or the Accounts Payable Office. The cardholder shall also return the card when terminating employment or transferring from one University Department to another.

.300 MasterCard Small Purchase Charge Card Security

Authorized use of the card is limited to the person whose name appears on the face of the card. Individual cardholders shall not lend the card to another person. The cardholder may request a card for another department employee, with procurement authority, when the cardholder will be absent from work for an extended period.

Cards should be kept in an accessible but secure location. The cardholder should not post the card account number or leave it, or the leave card in a conspicuous place.

If the card is lost or stolen, the cardholder shall immediately notify the MasterCard Program Administrators, x87396 or x87395.

James Madison University is liable for purchases, made by authorized users, with the SPCC, if the purchase is within the single per transaction dollar limit and does not exceed $4,999. James Madison University does not accept liability for the following:

Unauthorized use of cards.
Account numbers that are fraudulently used.
Purchases, made with stolen or lost cards, which exceed the maximum limit ($50) and the maximum length of liability (24 hours after discovery and reporting of card loss or theft).

.400 Returns, Credits, and Disputed Items

Usually, the cardholder and the vendor that provided the goods and services can resolve disputes. The cardholder shall use the following guidelines when returning an item:

Always contact the vendor, whatever the reason for the return, to determine the correct procedure for returns.
Request the vendor to issue a credit receipt for items returned. The credit should appear on a subsequent charge card statement. Credit balances noted on monthly MasterCard SPCC statements are posted on the Departmental Monthly Detail Report. If you have any questions please contact the MasterCard Program Administrators at x87396 or x87395.
Enter descriptive information and the credit amount of the return on the Department Purchasing Record.
Keep all documentation, that support returns, on file for reconciling the charge card statement.
If the cardholder and the vendor cannot resolve an issue, the cardholder should contact MasterCard. They will investigate the dispute for the cardholder, assist in the resolution, and will issue a temporary credit, pending final resolution.

.500 Reconciliation of the MasterCard Charge Card Statement

The cardholder and the University are responsible for retaining documentation of purchases and returns. Departments shall reconcile transactions in the PeopleSoft Finance System, using documentation and information on the Department Purchasing Record, to the monthly MasterCard Charge Card Statement.

Listed below are required procedures for reconciliation:

Around the 20th of each month the Charge Card Section of Accounts Payable will receive the monthly file from MasterCard. This file will be loaded into the PeopleSoft Finance System. Once the file is loaded into PeopleSoft each card is required to be reconciled online. During the reconciliation process you will match up receipts to each charge, assign the correct expenditure code for each transaction and indicate the eVA exclusion or PCO/DO number. If sales tax has been charged for a purchase it is the responsibility of the cardholder to have that tax amount credited back to the card. In order to reconcile in PeopleSoft, the reconciler must take the Charge Card Reconciliation class offered by IT Training (IIS204) and complete pages 1 and 2 of the IIS Access form.
Once the charge card has been reconciled in PeopleSoft, a report will be generated and printed off. This is the Monthly Small Purchase Charge Card Coversheet and Purchase Log. The cardholder and supervisor and/or signature authority (can not be the cardholder) will sign each coversheet. A copy of the signed coversheet and purchase log are then to be sent to Accounts Payable by the 15th of each month.
Each cardholder is responsible to have all original receipts, original coversheet, original purchase log, original business meal certification for any food purchased, a copy of the Travel Authorization for air/rail tickets and conference registration fees and the boarding pass for any airline charges on file for 3 fiscal years plus current fiscal year for audit purposes. Failure to maintain proper records can lead to the suspension or revocation of the small purchase charge card.

.600 Purchases/Expenditures

.610 Restricted Purchases

Cardholders may not charge the following purchases to the SPCC:

Purchases costing more than $4,999.
Narcotics or dangerous drugs.
Alcoholic beverages.
Firearms and ammunition.
Yearly maintenance agreements that are paid monthly.
Furniture.
Purchases from state employees.
Property and equipment leases.
Lodging or restaurant purchases.

Besides the listed restricted items, cardholders should not charge purchases that are recurring in nature, such as, rentals and towing charges to the card.

.620 E-Commerce Purchases

Departments may purchase goods or services up to $4,999 using their SPCC through the Internet. Since the card number is transmitted when making purchases, users must be certain the vendor has a Secure Socket Layer (SSL) Version 2.0 or greater. To ensure the vendor has a SSL, the Address Window must start with https://. This may not occur until the payment information is requested. For information about the vendor’s security certification, check under "Help" on the browser tool bar. If you place an internet purchase, a comfirming order must be submitted into eVA.

On-line auctions (example: e-bay) is allowed when all rules governing Procurement procedures and Accounts Payable payments are met. The MasterCard Program Administrator/Compliance Auditor will audit each of these transactions for compliance.

Both the SPCC and the Travel Card may be used to purchase airline and rail tickets over the Internet. The SPCC may be used as a "method of payment" for conference registrations. All compliance issues still apply as this registration is subject to a maximum prepayment period of 90 days. The Travel Card may be used to purchase lodging as well. As with all purchases, departmental funds must be available before making any expenditure commitments.

.630 Gift Card Purchases

Gift Cards may only be obtained by employees who have the SPCC (Small Purchase Credit Card).

A cap of $500.00 must be placed on each gift card.
An employee may complete a �point of sale� purchase of a gift card with a declining balance for their department.
All purchases must be documented and receipts retained for purchases made using the gift card. (Departments are responsible for any documentation that would be required in an Audit).
These purchases must fall within the Accounts Payable and Procurement guidelines.

.640 Infractions on the Small Purchase Chare Card

In the event a cardholder makes an inappropriate expediture on the small purchase charge card the following penalties will be enforced.

Misuse of Restaurant Block being lifted:	Block placed permanently back on card
Late Paperwork, coversheet & purchase log along with any TA's or Business Meal Certification forms not turned in by the 15th of the month following the statement date:	15 days late: email warning 30 days late: 15 day suspension 45 days late: 30 day suspension (on top of 15 days-total 45 days)
TA-wrong/no signature, book before TA done or before TA has final approval, booked more then 90 days:	1st time: email warning 2nd time: 15 day suspension 3rd time: 30 day suspension
TA-International not approved by Dr Rose before booking:	1st time: 30 day suspension 2nd time: 60 day suspension 3rd time: 90 day suspension
Business Meal Certification Form- wrong signature, not complete:	1st time: email warning 2nd time: 15 day suspension 3rd time: 30 day suspension
Split Purchases, spending more than $4,999 in one day with one vendor without prior approval:	1st time: 15 day suspension 2nd time: 30 day suspension 3rd time: 60 day suspension
Inappropriate expenditures against Policy 4302 Facility Modification/Maintenance:	1st time: email warning 2nd time: Notification to senior management, possibility of 30 day suspension and reimbursement of inappropriate expense back to department 3rd time: 60 day suspension and reimbursement of inappropriate expense back to department

.700 Responsibilities

.710 Department Head/Approving Authority

Authorize issuance and use of cards for departmental employees by approving the Delegation Agreement.
Insure proper use of the card by reviewing charges made to the Department. Revokes a cardholder’s purchase authority, for improper use of the card.
Approve charge and credit transactions for the department. Ensure that all returns are credited back to the MasterCard charge card. If a merchant refuses to credit the SPCC charge card and issues a "store credit", immediately advise the Program Administrator with the specifics.
Insure that the cardholder maintains records and completes reconciliation as required by this procedure.
Ensures that all E-Commerce purchases are made through a SSL, Version 2.0 or greater, and that the address or location begins with https://.

.720 Cardholder

Maintain the card and the card account number in a secure location for the individual cardholder's use only.
Comply with this procedure when obtaining goods and services or returning items purchased with the card.
Inform the Vendor of the University’s TAX-EXEMPT status
Obtain documentation of all transactions to include a printed copy of E-Campus purchases and maintain records as outlined in this procedure.
Any internet purchases have been submitted as confirming orders in eVA.
Limit purchases to items that are not restricted purchases.
Return the card to the Accounts Payable Office when requested by the Department Head or the Accounts Payable Office. Also, returns the card when terminating employment or transferring from one University department to another.
Cardholder is responsible for all charges to their card. Misuse of the card may lead to suspension or revoking of the card.

.730 Finance Division

Maintain policies and procedures for issuance and use of the card for James Madison University.
Coordinate all card activity with University departments, the Division of Purchases and Supply, the Department of Accounts and MasterCard.
Administer the SPCC Program for the University by:
1. Insuring proper use of state funds for purchases and vendor payments.
2. Insuring compliance with state regulations and procedures.
3. Rescinding of cards used in the wrong manner. The card can be suspended or permanently revoked for continued misuse.
4. Providing training for employees.
5. Maintaining files, issuing cards, and confirming the list of current cardholders with departments.
6. Reviewing purchase documents, forms and reports, processing and recording payments, reconciling transactions, and collecting payments for inappropriate expenditures and delinquent charges from the cardholder.

.800 Procedures

.810 Department/Department Head/Approving Authority

Provides the cardholder access to University Policies and Procedures.
Completes a Delegation Agreement for each employee authorized to obtain goods and services using the card. Maintains current copies of all approved Delegation Agreement forms in departmental files.
Provides an original copy of the authorized Delegation Agreement to the Accounts Payable Office to request issuance of cards.
Prepares the Department Purchasing Record according to instructions provided in this procedure and by the Office of Accounts Payable.
Retain documentation of purchases to include a printed copy of E-Commerce purchases and returns, and uses information from the Department Purchasing Record to reconcile transactions to the monthly MasterCard Charge Card Statement.
Approves charges to department numbers.
Revokes cardholders purchase authority for misuse of the card, obtains and returns cards to the Accounts Payable Office.
Responds to vendor disputes.

.820 Cardholder

Receives the card issued in their name by signing the approved Delegation Agreement at the Accounts Payable Office.
Maintains the card and the card account number in a secure location. Never gives the card account number to another person or posts it in a conspicuous place.

To use the card, the cardholder:
1. Identifies vendors that accept the card and can provide the goods and services needed.
2. Calls or goes to the vendor's place of business, accesses the vendor’s Web site, and places the order. Gives specific departmental points of sale reference information to the vendor.
3. Gives the vendor the account number and expiration date on the card.
4. For E-Commerce purchases, enters the Charge Card Number as required by Vendors that have a SSL.
5. Informs the Vendor of the University’s TAX-EXEMPT status.
6. Retains all documentation concerning the purchase. (All vendors shall provide documentation of the purchase, such as a sales receipt or packing slip, with delivery of the items purchased.)
7. Requests a receipt when picking up a purchase and retains a printed copy of items purchased through E-Commerse procurements.
8. Reconciles the documentation to the MasterCard Charge Card Statement.

Follows guidelines in subsection .400 for returns, credits and disputed items.
Contacts the Accounts Payable Office for necessary changes to existing cards.
Immediately notifies the MasterCard Program Administrator, x87396 or x87395, if the card is lost or stolen.
Returns the card to the Accounts Payable Office immediately upon request of the Department Head or the Accounts Payable Office. Also, returns the card before terminating employment or transferring from one University department to another.
Reimburses James Madison University for inappropriate expenditures charged to the card.

SPECIAL NOTE: CARDHOLDERS SHOULD NOT MAKE ANY PAYMENTS FROM PERSONAL FUNDS TO MASTERCARD FOR PURCHASES MADE USING THE MasterCard SPCC.

PAYMENT FOR PURCHASES THAT ARE NOT STATE ALLOWED OR A PURCHASE MADE IN ERROR MUST BE REIMBURSED TO JMU. DEPARTMENTS SHOULD CONTACT THE ACCOUNTS PAYABLE OFFICE ON x87396 or x87395 SHOULD QUESTIONS ARISE CONCERNING CORRECTIONS TO THE MASTERCARD SPCC ACCOUNT.

.830 Accounts Payable

Receives approved Delegation Agreement forms from departments, reviews the forms and forwards information to MasterCard to issue cards.
Receives cards from MasterCard and notifies cardholders that they may get their card at the Account Payable Office.
Maintains file copies of approved Delegation Agreement forms and a list of cardholders names.
Confirms the names of authorized cardholders and the Delegation Agreement form information, with departments, annually.
Processes payment for the full amount of the charge card invoice, by the due date, to MasterCard.
Records payments in University and State records.
Reviews MasterCard statements and monthly reports to ensure expenditures are appropriate state expenditures.
Notifies individual cardholders of inappropriate expenditures charged to the card and collects payment for the purchase and any delinquent charges from the individual.
Audit cardholders, randomly, during fiscal year.

.900 Forms Preparation and Submission

.910 MasterCard Small Purchase Charge Card Delegation Agreement

.911 Required

Departments shall complete this form to request a card for a departmental employee.

.912 Where to Obtain Blank Forms

The MasterCard Small Purchase Charge Card application (Delegation Agreement) is available online.

.913 Number of Forms to Complete

Complete one form.

.914 Where to Send Completed Forms

Send the original copy to the MasterCard Program Administrator and retain one copy in departmental files.

.915 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Delegation Agreement form.

Employee Name: The full name of the employee.

Social Security Number: The employee’s social security number.

Date of Birth: The employee's month, day & year of birth.

Billing Address, City, State and Zip: The complete billing address.

Home Address, City, State and Zip: The employee’s complete home address if different from billing address.

Home Telephone No.: The employee's home telephone number

JMU Telephone Number: The employee’s JMU telephone number.

Department Name and MSC: The name of the Department and MSC to which the employee reports.

Department ID #: The Department ID Number assigned to the Department.

Transaction Limit: The dollar amount up to $4,999, approved by the departmental Approving Authority, for an individual transaction for the employee.

Monthly Limit: The maximum dollar amount of purchase transactions up to $25,000, per billing cycle, which the departmental Approving Authority authorizes for the employee.

Rush Delivery: Enter "yes" or "no". There is an additional charge for this.

THE FOLLOWING SHOULD BE COMPLETED AFTER THE FORM HAS BEEN PRINTED.

Departmental Authorized Signature: The Signature of the Approving Authority for the Department Number shown on the form. This signature shall be the same as the Approving Authority shown on the Signature Card held by the Accounts Payable Office.

Print Name: The typed or printed name of the individual who approved the form.

Employee's Signature: The signature of the employee requesting the card.

Date: The Date the employee signs the Delegation Agreement.

Cardholder's Signature: The signature of the cardholder.

Date: The date the cardholder picks up the card.

.920 Department Purchasing Record for MasterCard Small Purchase Charge Card

.921 Required

Departments/Cardholders shall complete this form and retain it in departmental files. If multiple departments are to be charged for the purchases charged to the card, the MasterCard ATV replaces this form. See Subsection .940

.922 Where to Obtain Blank Forms

The Department Purchasing Record form is available online.

.923 Number of Copies

Complete one form. Retain the completed form in the department's files.

.924 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Department Purchasing Record.

Department Name: The name of the Department being charged for the purchase.

Department ID No: The Department ID Number assigned to the department.

Cardholder's Name: The name of the individual cardholder.

Card Number: The number shown on the card.

Date of Sale: The date the sale transaction is completed.

Vendor's Name: The name of the vendor.

Description: A brief description of the item purchased.

Dept ID No.: The Department Number assigned to the department.

Expenditure Acct. Code: The expenditure account code that best describes the item purchased.

Dept. Ref Number 1: An optional field for use by the department.

Dept. Ref Number 2: A second optional field for use by the department.

Amount: The total amount of the purchase.

Month: The month in which the transaction is completed.

.930 Statement Cover Sheet For Payment To MasterCard

.931 Required

The University requires each department that has purchased items with the SPCC to complete this form, and retain in departmental file. A copy should be faxed to Accounts Payable, x88920 by the 10th of each month.

.932 Where to Obtain Blank Forms

The Statement Cover Sheet form is available online.

.933 Form Preparation Instructions

This subsection provides detailed instructions for preparation of the Statement Cover Sheet for Payment to MasterCard.

Department: The department name as shown on the Department Purchasing Record.

Department ID #: The Department Number as shown on the Department Purchasing Record.

Cardholder: The name of the individual that cardholder.

Card Number – last four digits: The last four digits of the individual’s card number.

Statement Closing Date: The MasterCard statement closing date as shown on the statement.

Total Amount: The total amount of the expenditures shown on the MasterCard monthly statement.

Approving Signature: The signature of the approving authority for the Department Number. This signature shall be the same as the Approving Authority shown on the Signature Card held by the Accounts Payable Office. Also, certifies that the charges will be reconciled monthly to the FIS Monthly Detail Report.

Cardholder's Signature: The signature of the cardholder. Also, certifies the approving signature has reviewed the reconciled statement, purchase log, supporting documentation and that all purchases are correct and valid state expenses.

Comments/Additional Clarifications: Use this section to document any information concerning this payment. Examples: Purchase is in dispute; paid sales tax in error, credit in the next billing cycle; charges shown on the Department Purchasing Record, were not in the current billing cycle; and authority to sign for purchases delegated to another individual during vacation or leave period. Also, you can give additional clarifications for any purchase that may be questioned by Accounts Payable.

.940 MasterCard ATV

.941 Required

The MasterCard ATV is required to record the MasterCard transaction reclassification/transfers, within a department or between several departments. One copy of the form should be sent to Financial Reporting for review and process and one copy should be retained in departmental file

.942 Where to Obtain Blank Forms

The MasterCard ATV is available online.

.943 Form Preparation Instructions

Enter the required information as listed below and print the form. Send the completed form to Financial Reporting, MSC 5715.

Department Name
Enter the department name.
Cardholder Name
Enter the name on the American Express Card.
Card Number
Enter the American Express Card number.
Journal Description
Enter the month of the MasterCard statement.

CORRECTION LINE

Correction Dept ID
Enter the department that should be charged for the purchase.
Debit Account
Enter the account code the purchase should be charged.
Amount
Enter the amount of the purchase.
Date of Sale
Enter the date of the purchase.
Vendor's Name
Enter the vendor name.
Description
Enter a short description of the purchase.
Month
Enter the month in which the purchase was made.

DEFAULT LINE

Default Dept ID
Enter the department the purchase was originally charged.
Amount
Enter the amount of the purchase.
Credit Account
Enter the account code the purchase was originally charged. (the most commonly used account code used here is 130900)
Date of Sale
Enter the date of the purchase.
Vendor's Name
Enter the vendor name.
Description
Enter a short description of the purchase.
Month
Enter the month in which the purchase was made.
Number of Lines
This will automatically calculate.
Totals
The will automatically calculate.
Prepared By
Name of person preparing the MasterCard ATV.
Date
Enter the date the MasterCard atv was prepared.
Approved By
Signature of Approval Authority.
Date
Enter the date the MasterCard atv was approved.

After completing the form and obtaining the proper approvals, please send the completed form to Financial Reporting, MSC 5715