Procurement Services

Procurement Card Policies and Procedures

Procurement Card Voucher Monitoring and Processing Procedures

The billing period for the procurement cards is from the first to the last calendar day of the month. Regions will require two days' processing time after the last day of the month to prepare account statements. The memo statements (individual cardholder statements) will be mailed directly to the departments within the same time frame. The memo statements may also be accessed electronically. You will receive a monthly email from reports@vis.informationmanagement.visa.com with your statement attached to it. These emails are sent in a batch process so it may take a couple days to receive yours. All statements should be received by the 5th of the month. If you need assistance in getting this set up, please contact Becky Holder or Sandra Reiter.

The designated department contact will review the memo statement and verify that he or she has receipts for all charges posted. The department is responsible for submitting a completed Credit Card Voucher form to Purchasing. A copy of this form and instructions for completing it will follow. Within 5 days of receipt of the memo statement, the department contact will forward the following to Sandra Reiter in Purchasing: a completed Credit Card Voucher (Instructions) (approved and signed by an approved expenditure authority), an original receipt for each charge, and the original copy of the memo statement. The department is to maintain a copy of the voucher form for its records. Credit Card Voucher forms can be downloaded from the Credit Card Voucher on the Controller's Office web site.

Upon receipt of the overall account statement, Accounts Payable will remit payment to Regions for the entire balance. Upon receipt of the department's completed Credit Card Voucher form, Purchasing will review the voucher and its attachments and verify that no sales tax was charged, the memo statement is attached, an original receipt for each purchase is attached, and the expenses are allowable. Charges to the department will be processed from the bottom section of the Credit Card Voucher form that was completed by the departmental contact.

Getting Started

The department must complete the following steps to participate in the Procurement Card Program:

1. Designate a cardholder to act as a liaison for the department by dealing with the cardholders, vendors or merchants, Procurement Services, Visa and the contract. This individual will be responsible for all aspects of the procurement card program within the department, such as reconciling the monthly voucher with cardholder statements, completing the monthly voucher, and filing and retaining cardholder statements and all supporting documentation for future audits.
2. Define documentation and process flows associated with procurement card transactions.
3. Prepare a filing system to accommodate the following items:
   • Monthly statements
   • Supporting documentation
   • Copies of cardholder agreement
   • Copies of cardholder application
   The documents may be requested by auditors or other official persons and must be readily accessible.
4. Attend a participant training program. At a minimum, the cardholder must attend the training to be familiar with the processes involved with the procurement card. These sessions provide an overview of the program, policies and procedures, use of the voucher form, etc. Please contact our office to schedule this training session.
5. Complete the Cardholder Application. Included with the application are additional instructions associated with completing the form and the Cardholder Agreement.
6. The cardholder and the department head must both read and sign the Cardholder Agreement form.
7. Forward the Cardholder Application to our office, Box #5003, for processing.

Application Information

To obtain a Procurement Card, complete the following form:
Application for Procurement Card - (Instructions included)

Send the completed Procurement Card Application to:

Cardholder Agreement

The cardholder and the department head or administrator must sign the Cardholder Agreement and forward to Procurement Card Administrator at USM Box #5003. Failure to return and/or comply with the guidelines of the agreement may result in the account being inactivated or canceled.

Challenges to Be Aware Of

The following is a list of guidelines for avoiding problems and obstacles often faced during card use or during voucher processing. Failure to follow these guidelines may result in delayed processing or issuance of a Violation Notice.

1. Purchases on the Procurement Card are exempt from sales tax. It is the cardholder's responsibility to remind the merchant at the point of sale that he or she is using a University Procurement Card that is exempt from state sales tax. Contact Purchasing to obtain the sales tax exemption number. If sales tax is charged, contact the merchant and request a refund.
2. An itemized original receipt is required for documentation of purchases. A packing slip is not sufficient.
3. If a merchant does not provide a receipt, the cardholder should request one. If the cardholder is unable to obtain a receipt or a receipt is missing for any other reason, a Missing Document Affidavit must be completed and attached to the copy of the Credit Card Voucher submitted to Purchasing. The Missing Document Affidavit must include a list of every item purchased on the receipt, an explanation of why the receipt is missing, and signatures of the cardholder and his or her supervisor. The copy of the Missing Document Affidavit that is provided on this web site may be printed and used.
4. If the cardholder will be unavailable for an extended period of time and will not be able to submit the Procurement Card Voucher in a timely manner, arrangements must be made for another individual to verify the charges and submit the voucher to Procurement Services.
5. All items on receipts must be identifiable. Provide a description of any items that are indicated on the receipt by a stock number, model number, or any other coding that does not readily identify the item purchased.

Audit of Departmental Records

Please note that all departments will be subject to random and surprise audits from the University's Internal Audit Department and/or the Office of the State Auditor.

The following points are closely scrutinized during audits:

1. The card must be physically secure when not in use.
2. A telephone log must be maintained for all telephone orders.
3. If a cardholder allows another person within the department to use the card, the cardholder must sign the original receipt above the other person's signature.
4. Evidence of reconciliation of card purchases to monthly budget reports must be provided.
5. Submission of receipts by departments to Purchasing is reviewed for timeliness.

Use of the Procurement Card

Following are the minimum conditions/instructions/limitations required for all transactions utilizing The University of Southern Mississippi Small Purchase Procurement Card:

1. NO Procurement Card transaction may exceed one thousand dollars($1000.00) with point of sale terminals or fifty dollars ($50.00) with manual sale receipts.
2. State contract items SHALL NOT be purchased using the Procurement Card
3. NO personal use of the Procurement Card will be authorized or allowed.
4. NO ATM cash withdrawals will be allowed on the Procurement Card.
5. Only in-stock, immediate delivery items may be purchased.NO BACK ORDERS ARE ALLOWED. Verify that phone orders are in stock and ready for immediate shipment.
6. Telephone orders must be invoiced ONLY at or after date of shipment. A telephone order log SHALL be maintained by the cardholder.
7. Procurement Card purchases are exempt from state and local taxes.
8. All purchases are to be made WITHIN THE LIMITS set by the available budget authority.
9. NO equipment over $999.99 or special inventory items regardless of price shall be purchased with the card. (See list of "Special Inventory Items" below.)
10. NO services are to be purchased with the card.
11. Purchases of food are only allowed if for official university business (no receptions or parties). Prior email approval and Food Purchase Form are required for all such purchases.
12. The Procurement Card SHALL NOT be used for travel (ie. Registration Fees). The only exemption is Enterprise car rental.
13. The Procurement Card SHALL NOT be used for Entertainment Expense. Please refer to the Entertainment Policy at the Accounts Payable site.
14. The cardholder must obtain itemized transaction receipts from the merchant for each use of the card.
15. The cardholder should ensure that the prices paid are fair and reasonable.
16. All items purchased are required to be for bona fide university purposes.

If any of the policies or conditions of Procurement Card use are not met, a Violation Notice may be issued to the cardholder. Copies of an issued Violation Notice will also be forwarded to the vice president of Business and Finance, the Internal Auditing Department, the Purchasing Department, and the cardholder's supervisor. The Violation Notice serves as a first time warning; if another violation occurs on a particular card, the card may be revoked.

Special Inventory Items

The following items may NOT be purchased with the procurement card:

A. Equipment with a cost of $1000 or More

B. EXCEPTIONS to the $1000 rule (Can NOT be purchased on p-card):

1. WEAPONS
2. CAMERAS and CAMERA EQUIPMENT WITH A COST OF $250 or More
3. TWO WAY RADIO EQUIPMENT
4. TELEVISIONS WITH A COST OF $250 or More
5. LAWN MAINTENANCE EQUIPMENT
6. CELLULAR TELEPHONES
7. MAJOR COMPUTER COMPONENTS:
   
   • PRINTERS AND MULTI-PURPOSE MACHINES WITH A COST OF $250 or More
   • HARD DRIVES
   • CPU's
8. CHAIN SAWS
9. AIR COMPRESSORS
10. WELDING MACHINES
11. GENERATORS
12. MOTORIZED VEHICLES

C. Former Exception Items Now Only Subject to the $1000 Rule (if less than $1000 you may use p-card):

1. RECORDERS
2. IPODs
3. MP3 PLAYERS
4. TYPEWRITERS
5. APPLIANCES (AIR CONDITIONERS, REFRIDGERATORS, MICROWAVES, ETC...)
6. VCR'S
7. STERLING SILVER
8. SCANNERS
9. DICTATING EQUIPMENT
10. ANTIQUES
11. MODEMS

The preceding list is general and subject to change. If you have any questions about whether an item would be considered a special inventory item, please contact Becky Holder in Purchasing or Brad McKenzie in Property Accounting.