1.0     PURPOSE

The purpose of the Purchasing Card Program is to provide a convenient method for purchasing lower cost goods and services as defined within this policy, streamline the procurement process, reduce transaction costs, and improve customer service.

2.0     BENEFITS 

2.1     More direct and efficient means of obtaining goods and services

2.2     Reduce administrative effort, data entry & expense such as requisitions & purchase orders, forms, envelopes, postage, filing and cheque costs, petty cash reimbursement

2.3     Multiple charges on one bill - one payment

2.4     Improve customer service

2.5     Benefits to the Supplier are lower overhead, opportunity to strengthen customer relations, improve payment terms and reduce credit risk. 

3.0     PURCHASING CARD ADMINISTRATOR:  Director and Senior Supply Management Consultants – SMS 

3.1     Maintain and control a central record of all cardholders, limits, etc.

3.2     Liaison with Banking Card Provider

3.3     Provide ongoing education and training programs

3.4     Distribute program general information and updates

3.5     Assists in rectifying disputed charges with suppliers and the Banking Card Provider 

4.0     CARDHOLDERS 

4.1     Agree to the program responsibilities and restrictions

4.2     Sign the Employee Acknowledgement of the program responsibilities

4.3     Reconcile the monthly card statement

4.4     Forward to Financial Services all documentation required for audit purposes

4.5     Take appropriate action to resolve any problem

4.6     Keep card secure to avoid the risk of unauthorized use

4.7     Return card upon request, termination of the FOAPAL or termination of employment 

5.0     APPLICATION FORM 

Upon completion of the Purchasing Card Training Session, complete the Purchasing Card Application Form available on Supply Management Services' Purchasing Card Web Page. The application form will be forwarded to the card holder for signatures by the card holder and the appropriate authorities within the faculty or department. The original signed application forms must be returned to Supply Management Services. A copy of the Purchasing Card Application Form is the responsibility of the card holder.

6.0     CARD DEFAULT FOAPAL 

The Cardholder must designate a default Banner FOAPAL for their card. The designated Banner FOAPAL must have a minimum life span of six months with a budget of at least $3,500 for non-salary expenditures. It is the Cardholder's responsibility to ensure that the designated Banner FOAPAL has sufficient funds to pay for goods and services ordered using the Purchasing Card.

If a research or special purpose FOAPAL is designated, it is the Cardholder's responsibility to ensure that both internal and external guidelines which govern the FOAPAL are complied with. 

7.0     CARD TRANSACTION LIMITS

The Cardholder, in consultation with the Purchasing Card Administrator, will set the card transaction and credit limit. The maximum limit will be $3,500 per transaction, this includes all applicable taxes, and a $20,000.00 monthly limit per billing cycle. Requests for limit changes should be directed to and approved by the Purchasing Card Administrator. 

8.0     CARD APPROVAL 

All Procurement Card applications must be recommended by the Administrative Department Head or Dean, and then forwarded to the Purchasing Card Administrator for approval. 

9.0     CARDHOLDER AGREEMENT AND WORKSHOP 

Each Cardholder must attend a workshop on Purchasing Card usage through the Technology Learning Centre, and sign the Employee Acknowledgment Form, along with their supervisor. The original signed Employee Acknowledgment Form will be sent to the Purchasing Card Administrator. A separate Employee Acknowledgement Form must be signed for each Purchasing Card issued. 

Individuals who transfer to another faculty or department on campus, and will still require the use of a purchasing card, will be required to complete another Employee Acknowledgement Form representing the authority to purchase within the new unit with the purchasing card.

10.0   CARD AND CARDHOLDER PROVISIONS 

10.1   Transaction limit is $3,500.00 CDN including taxes/shipping /handling. Monthly default limit is $20,000.00 CDN per billing cycle.

10.2   The Purchasing Card is a University of Regina Card that is issued to you as an individual

10.3   Each Purchasing Card has a unique number and is issued to an individual for use only by that individual

10.4   The card must be signed by the Cardholder

10.5   Requested Expiry Date for Card may be applied for Special FOAPAL Only

10.6   The Purchasing Card must only be used to make authorized University purchases within the University's established policies and procedures

10.7   It is the Cardholder's responsibility to ensure that internal or external guidelines which govern the account are complied with

10.8   Any service or interest charges incurred which are not an allowable expense are the Cardholder's responsibility

10.9   Any related University processing deadlines lie with the Cardholder

10.10 If cards are to be issued to individuals other than the principal investigator, the principal investigator must provide written approval documenting the delegation of signing authority and the acceptance of responsibility for items charged to the research FOAPAL

10.11 The University recognizes that spending units are unique unto themselves and may be flexible in applying additional procedural requirements

10.12 The spending unit is responsible for ensuring the Purchasing Card expenses are recorded in the appropriate FOAPAL 

11.0   CARD RESTRICTIONS 

The Purchasing Card Administrator shall ensure that each Cardholder is informed of the transaction and credit limits of their Purchasing Card as well as responsibilities and restrictions regarding the use of the Purchasing Card.

The Purchasing Card must NOT be used for the following:

1)     Personal Purchases

2)     Split Purchases

3)     Inappropriate Purchases

4)     Failure to Provide Required Documentation

5)     Failure to Reconcile Monthly Statement 

6)    Travel for Tri-Agency Grant Research

Personal and Private Use

·            It is against University policy to use University funds to purchase items for personal use

·            Personal purchases could jeopardize the University's tax status, permits or Supplier contracts

·            The Purchasing Card will be cancelled and Purchasing Card use will be revoked

·            The University must be reimbursed immediately for the amount of the personal purchase.

·            Any violation of this policy may be investigated and could result in termination and/or criminal prosecution 

 Split Purchases

Purchasing card transactions must not be split to divide a large purchase to circumvent the Cardholder's transaction limit 

Inappropriate Purchases

·            To obtain cash 

·            Transactions valued over $3,500 Canadian Funds (an individual card limit may be lower) 

Controlled items such as:

·            Hazardous Material

·            Radioactive Material

·            Laboratory and Research Animals

·            Contracted Goods and Services

·            Maintenance Contracts

·            Extended Rentals or Leasing of Equipment

·            Direct employment of individuals

·            Services provided through Facilities Management work orders     

Exemptions may be made for chemical purchases (hazardous and non-hazardous materials) with the Purchasing Card, but must be discussed and approved by Human Resources – Occupational Health and Safety to comply with University policy on chemical safety and storage, and the chemical inventory program. 

Computer and computer related equipment under the $3,500 transaction limit can now be purchased with the Purchasing Card with the recommendation that computer equipment comply with Information Services policy relating to Support Hardware, Software and PDA devices – Policy 150.40 (http://www.uregina.ca/presoff/vpadmin/policymanual/compserv/15040.shtml) . It is the responsibility of the cardholder to ensure that computer and computer related equipment is bar coded as part of the University’s fixed asset inventory.     

Travel for Tri-Agency Grant Research

·         Purchasing Card purchases do not capture supporting documentation required to meet Tri-Agency Regulations. 

·         Tri-Agency supporting documentation requirements are listed in the Tri-Agency Financial Administration Manual.

      http://www.nserc-crsng.gc.ca/Professors-Professeurs/FinancialAdminGuide-GuideAdminFinancier/Reporting-Rapports_eng.asp

·         Researchers holding Tri-Agency grants are encouraged to apply for a BMO Mastercard Corporation Travel Card.  These cards require reimbursement claims be completed and capture adequate supporting information in order to meet Tri-Agency Regulations.  For more information please see Policy 30.05.10.04 “BMO Mastercard Corporation Travel Card”

      http://www.uregina.ca/presoff/vpadmin/policymanual/fs/30051004.shtml

·         Note:  If a researcher commonly transfers travel expenses between Tri-Agency and non Tri-Agency research FOAPALs it is recommended that the BMO Mastercard Corporation Travel Card or a personal credit card (with subsequent reimbursement) be used for all research related travel.

·         Enforcement:

o   Financial Services will review all Tri-Agency Purchasing Card purchases monthly.  If travel is found on a Purchasing Card, the transaction will be transferred to the Fund Manager’s Faculty Research Account or APEA until adequate support (see link above) is received by Financial Services. 

If adequate support cannot be provided the Fund Manager will be responsible for any resulting deficit in their Faculty Research Account or APEA in accordance with Policy 140.25.15 “Budgetary Limits on Spending from Research Funds.” http://www.uregina.ca/presoff/vpadmin/policymanual/research/1402515.shtml

Action Taken for Non-Compliance - The use of a Purchasing Card will be revoked and the Purchasing Card will be cancelled. In the event of willful or negligent default of the non-compliance policy, the University shall take any action deemed appropriate, which may result in termination of employment and/or criminal charges.

12.0   ORDERING WITH THE CARD 

It is imperative that Purchasing Card cardholders are aware of the high risks when considering Internet purchases on non-secure websites.

Ordering by Phone, Fax or Mail:

·            Inform the Supplier that you are ordering on your University of Regina Purchasing Card

·            Give your name as it appears on the card, the credit card Purchasing Card number and expiry date

·            Give accurate delivery information, including:
Contact Name
Faculty/Department
Address
Phone Number

·            Request that delivery information be marked on the outside of the package, and that a priced packing slip or a detailed sales receipt be enclosed 

Purchasing Goods or Services in Person:

·            Inform the Supplier that you are making a purchase for the University of Regina

·            Give the Supplier your Procurement Card for processing

·            Obtain the credit card transaction slip from the Supplier at the time of the purchase 

13.0   CARD REJECTION 

If a Supplier rejects the Purchasing Card it will be for one of the following reasons:

·            The Purchasing Card has reached the transaction or monthly limit.

·            Incorrect card number or expiry date

·            Technology processing issue with credit card provider and supplier 

14.0   RECEIPTS AND RETURNS 

It is the Cardholder's responsibility to:

·            Ensure receipt of goods or services

·            Follow up with Suppliers to resolve any delivery problems, discrepancies and/or claims for damaged goods

·            To coordinate returns directly with the Supplier

·            To secure the appropriate credit. At the time of return, request that the Supplier issue and send a credit transaction slip to verify that credit was given. 

15.0   IMPORTED GOODS – CUSTOM AND EXCISE 

If an order is from out of country, applicable duty and/or taxes will be incurred in one of the following ways: 

1.     Through the University's Custom Broker.

2.     Via Courier - Couriers will issue an invoice for payment that will be sent to Financial Services and charges will be made to the appropriate FOAPAL.

3.     Through Canada Post - Submit the Canada Post import form to Financial Services for payment against the appropriate FOAPAL. 

16.0   RECONCILIATION AND CYCLE PERIOD 

The cycle period for the purchasing card program runs from the 5th day of the present month to 4th day of the next month (ie: April 5^th to May 4^th). 

The Cardholder is responsible for reconciliation of transactions for each statement period using the credit card provider’s internet based product and to ensure that the changes to the FOAPAL's have occurred and descriptions have been provided for each transaction processed. Online reconciliation, utilizing the credit card provider’s internet based product, must be completed by the 18^th day of each cycle period (ie: April 5^th to May 4^th – required no later than May 18^th). 

All charges will be posted to the default FOAPAL assigned to the Purchasing Card unless otherwise specified. 

17.0   TRANSACTION DOCUMENTATION 

All credit card transaction slips, as well as detailed invoice\till receipts, for every transaction that has occurred over the University's designated statement period (5th day of month to 4th day of next month - ie: April 5 to May 4), must be attached to the monthly credit card Statement of Account Report. The statement of account report and accompanying documentation is reviewed by both the card holder and their supervisor, jointly signed approving the transaction processed, and sent to Accounts Payable, Financial Services, no later than the 25^th day of the month (ie: April 5 to May 4 - required no later than May 25th).

Accounts Payable, Financial Services, will be reviewing and matching all documentation with the monthly credit card statement, to ensure all necessary paperwork has been provided. Contact will be made if any transaction slips\invoices are missing from the statement, and it will be the responsibility of the cardholder to locate and provide the paperwork requested. Accounts Payable will also ensure that the signed off Statement of Account form has been provided.

Each Purchasing Card transaction must be supported by valid and complete documentation and must include the following:

·            Supplier identification (Merchant Name)

·            Date purchase was made

·            Description and quantity of each item purchased

·            Per item cost if available

·            Cardholder identification - Name and Card Number 

Acceptable Supporting Documentation

·            Receipt and credit card transaction slip from the Supplier

·            Priced packing slip

·            Order forms, or a copy of the form, for dues, subscriptions, registrations and similar items

·            Invoicing showing "Credit Card Payment"

·            Copies of credit card transaction reports sent directly from the Bank

If Original Supporting Documentation is Lost
Contact the Supplier to provide a copy of the original documentation.  If the Supplier is unable to provide documentation, contact the card provider directly (currently BMO 1-800-844-6445) to provide a copy of the transaction slip. 

Failure to Provide Required Documentation

·            Lack of required documentation is a Cardholder violation

·            Transactions where the Supplier does not provide original documentation are not considered a violation; however, this must be substantiated by notifying the Purchasing Card Administrator that a request for documentation from the bank card provider has been issued. 

18.0   DISPUTED CHARGES 

If discrepancies are found, contact the Supplier to rectify the billing problem. If there still is a dispute with the Supplier, contact the credit card provider regarding the dispute (phone number is on the back of the card). The credit card provider will contact the Supplier who will be required to produce a transaction slip signed by the Cardholder. If valid documentation is provided to the card holder and  the transaction will be considered resolved and the charge will stand. If the Supplier is unable to produce a signed transaction slip, the charge will be removed and a credit will appear on the following month's statement. The bank card provider will investigate disputed items for up to 60 days from the statement cut-off date (4th calendar day of each month). 

The Cardholder must ensure that any adjustment(s) for the transaction in dispute appears on their current or next monthly statement. The Cardholder should request that the Supplier issue and send a credit card credit transaction slip to verify that credit was given. 

19.0   PAYMENT 

The University will pay the total amount owing against all credit cards from the monthly statement. The monies will be paid using a clearing account. After Cardholder reconciliation, the appropriate FOPALS will be debited and the clearing account credited. 

20.0   RETENTION OF RECORDS 

Records of purchases made with the Purchasing Card (monthly statements with supporting purchase documentation) must be retained for audit purposes and to facilitate reconciliation and Banner FOAPAL verification. These records will be centrally stored by Financial Services. Retention period for these records is six (6) years plus the current year. 

21.0   LOST OR STOLEN CARD 

The issuing bank for the BMO Mastercard Purchasing Card.
BMO Customer Service:
Phone: 1-800-844-6445

LOST OR STOLEN CARDS
1-800-844-6445

The Cardholder must notify the bank and the Purchasing Card Administrator immediately of any lost or stolen cards. The lost or stolen card will be cancelled and a replacement card will be issued within two business days. 

22.0   DETAILS ONLINE DESCRIPTION REQUIREMENT 

It is mandatory to provide information in the "Description" field on details Online for every transaction made on your Purchasing Card. The information can be simply a noun and qualifier.

Examples:

·            Stationary Products

·            Printer Cartridge

·            Membership with the AUCC

·            Business Lunch with Company A 

23.0   STATEMENT OF ACCOUNT REPORT

It is now mandatory to generate, print, and have sign-off by the cardholder and their supervisor, the Statement of Account form within details Online, on a monthly basis. The supervisor is defined as the person who approved your Card application form, or the person who may approve your expense claims.