Purchasing Card Quick Links Purchasing Card Home Contacts FAQ Forms Program At-A-Glance Quick Reference Guide Traning Manual

NORTHERN ARIZONA UNIVERSITY
PURCHASING CARD
TRAINING MANUAL

Introduction:

The Purchasing Card facilitates purchases of low dollar value and contract items.  The Purchasing Card reduces the use of Impress (petty) cash funds, improves small dollar traditional purchasing processes, reduces the number of requests for travel advances, and eliminates the need to use personal funds.  The Purchasing Card allows the purchase of non-restricted commodities directly from suppliers without the issuance of a purchase order (PC/PD) and without entry of a University Financial System transaction.  The traditional purchasing/payment cycle, paperwork, and handling costs are greatly reduced.

With the completion of required Purchasing Card request forms, and a mandatory on-line training session a Purchasing Card is issued to a Cardholder with Northern Arizona University’s emblem and the wording “Official Use Only” clearly indicated on the Purchasing Card.

As a State institution, the University is bound by State and Federal guidelines and laws.  To ensure compliance with these regulations, Cardholders shall follow the Purchasing Policies and Procedures as well as the Policies outlined within this Purchasing Card Training Manual.  Questions concerning permissibility of a particular purchase, when not clear, should be directed to Purchasing Services.

Purchasing Card contact:

Glenn Birkett/Purchasing Services
Telephone: (928) 523-6094
Fax: (928) 523-1343
E-Mail: pcard@nau.edu

If you have printed this document for reference, always check the Purchasing Card section of Purchasing Services web site for the most current version of this document.

Responsibilities:

Purchasing Services is responsible for administration, Cardholder customer service, bank relations, monitoring, and enforcement of the University’s Purchasing Card Program policies and procedures.  

Comptroller’s Office and/or the Internal Audit Office shall be responsible for the Purchasing Card Program compliance auditing.  Comptroller’s Office shall be responsible for the coordination of payment to the issuing Bank.

The respective Vice-President, Dean, Chair, or Director has the overall responsibility for ensuring that the public interest is best served and the designated Purchasing Card Liaison is responsible for monitoring the Purchasing Card activity for departmental Cardholders. For the purpose of this document, the Purchasing Card Liaison shall be defined as the individual responsible for departmental Purchasing Card expenditures. 

A Cardholder shall be a University employee.  Only the named Cardholder is authorized to use the Purchasing Card.  The Purchasing Card shall be for University business purposes only and shall not be used for any personal transaction. Purchasing Card transactions shall serve the public interest and further the goals of the University.  Purchasing Card and general Purchasing policies and procedures shall be strictly adhered to, and failure to comply may result in the suspension of Purchasing Card privileges and/or disciplinary action, up to and including termination.  A Cardholder who makes an unauthorized purchase or carelessly uses the Purchasing Card may be liable to the University for the total dollar amount of the unauthorized purchase plus any administrative fees or legal fees in connection with the misuse. 

What Is The Purchasing Card?

The Purchasing Card is a corporate liability card.  The Purchasing Card is issued to an individual, but the University is responsible for paying the bill.

What Are The Benefits Of The Purchasing Card?

The Purchasing Card facilitates safe, efficient purchases of low dollar value items. The Purchasing Card allows the end-user to buy over the telephone, fax, and Internet.  

What May Be Purchased With The Purchasing Card?

In general, the Cardholder may purchase goods, services and travel related items (refer to Section "The Purchasing Card and Travel")that serve the public purpose and further the goals of the University. The University holds exclusive contracts for purchases of Furniture, Computers, Copiers and On-Campus Food. These commodities may be purchased on a Purchasing Card, but shall be purchased utilizing the awarded contract. Click on the link below for contract information:

• Furniture
• Computers
• Copiers
• On-Campus Food

The following list of goods and/or services shall not be purchased with the University’s Purchasing Card. Purchasing Card purchases of goods and/or services from the following list shall be considered a violation to Purchasing Card policies and procedures and may result in revocation of Purchasing Card Privileges:  

• Alcoholic Beverages
• Animals of any type, dead/alive
• Bars/Cocktail-Lounges/Nightclubs/Taverns/Drinking Establishments
• Bottled Water
• Business Food purchased on a State account
• Capital Equipment (items costing more than $5000.00)
• Cash Advances
• Cell phones for NAU business unless authorized under the new cell phone policy. Records of approval shall be kept on file in departmental records for audit purposes.
• Computers except from the vendor that has the exclusive computer contract. See Purchasing's website for computer purchases.
• Copiers except from the vendor that has the exclusive copier contract. See Purchasing's website for copier purchases.
• Employee Appreciation/Recognition Items/Gifts
• Entertainment
• Furniture except from the vendor that has the exclusive furniture contract. See Purchasing's website for furniture purchases.
• Financial Institution/Travelers Checks/Securities/Insurance
• Fines/Penalties
• Firearms/Ammunition/Explosives
• Flowers
• Food-On Campus except from the vendor that has the exclusive food services contract. See the NAU Dining Services website
• Food Supplies (paper/plastic products, i.e., cups, paper plates, plastic utensils, napkins, etc.  Items that are not directly tied to a authorized University sponsored function)
• Fuel for personal vehicles
• Gifts/Gift Cards/Contributions
• Legal Fees
• Loans
• Material prohibited by State or Federal law (like fireworks or controlled substances)
• Meals-Travel Related
• Narcotics/All Drugs
• Package Stores/Beer/Wine/Liquor
• Personal Purchases
  Note: Two "accidental" personal purchases within a two (2) year period shall result in loss of Purchasing Card.
• Purchases from University employees
• Purchases in which a University employee has a conflict of interest, and that employee participates in the purchase process            
• Quick Payment Services/Fast Food Restaurants/Restaurants
• Radioactive Materials
• Rare and Precious Metals
• Renovation/Construction/Removal and/or Installation services that may impact/disturb Asbestos Containing Material (ACM) or Presumed Asbestos Containing Material (PACM).
• Splitting purchases to circumvent the $5000.00 Limit
• Telephone (pre-paid) Cards

Any exceptions to the above list shall be handled on an individual basis and must be directed to the Purchasing Services contact. 

Services:

The Purchasing Card may be used to procure University authorized services. The following are guidelines that shall be adhered to prior to transacting payment for services.

• The t ype of service is not on the prohibited list.
• The University is required to issue Form 1099 to individuals and non-corporations (not including medical and legal corporations) providing services and reporting income to a Taxpayer Identification Number (TIN). Details may be obtained by contacting the Northern Arizona University Comptroller's Office, John Rabe, at 523-6071.
• Certain services may require the provider to furnish proof of insurance, in accordance with State of Arizona, Department of Administration Risk Management Section, prior to services being rendered. Further details may be obtained by contacting Northern Arizona University Purchasing Services, at 523-4557.

Federally Sponsored Accounts:

Federally sponsored accounts and Federal funds that are passed through an agency shall strictly adhere to all Office of Management and Budget (OMB) Circular Number A-21 guidelines.  These guidelines restrict the purchase of specific items on federally sponsored accounts.  Some restrictions may be in direct conflict with purchases allowed under the University’s Purchasing Card and Procurement policies. 

Restrictions/Limitations include:

• Alcoholic Beverages are not allowable.
• Subscriptions are generally not allowable, except for business, professional, or technical periodicals.
• Books are generally allowable, but the direct benefit to the project shall be verified.
• Membership dues are not allowable.
• Conference registration fees are allowable. If subscription fee and membership dues are rolled into a registration fee and there is no way to ascertain the component cost of each part, the whole amount would be allowable.  If there is a breakdown of costs, only the registration fee is allowable.
• Hosting Expenses are generally not allowable.
• Fines and Penalties are not allowable.

Line item detail shall be required on all Purchasing Card authorization slips, cash register tapes, and/or paid invoices.

Questions concerning the types of expenses allowed on Federally sponsored accounts shall be directed to:

Kevin Johnson /Sponsored Projects
Telephone:  (928) 523-4535

Safeguarding the Purchasing Card:

It shall be the Cardholder’s responsibility to safeguard the Purchasing Card to the same degree that an individual safeguards personal credit information or cash.

Reporting Lost or Stolen Purchasing Cards:

The Cardholder shall immediately notify JP Morgan Chase at 1-800-270-7760 to report a lost or stolen Purchasing Card.  JP Morgan Chase representatives are available 24 hours per day, seven days per week.  Notify JP Morgan Chase that the loss is a University Corporate (VISA) Purchasing Card.  This notification is important, as the University shall be responsible for all charges until the notification is made.  

Following the bank notification, the Cardholder shall notify the Purchasing Card Liaison and Purchasing Services of the lost or stolen Purchasing Card within one (1) workday after discovering the Purchasing Card missing.

Limits:

The Single Purchase Transaction Limit shall be established by the department head for an amount that is not greater than $5000.00. The daily transaction limit shall be 5 transactions per day (this limit may be changed if it is requested in writing and approved by Purchasing Services that a higher limit is necessary).

A transaction shall be described as every purchase or adjustment posted to the Cardholder’s account including but not limited to the Cardholder’s request for point of sale transactions document copies.  The transaction limit shall not include credits posted to the Cardholder’s account.

The Cycle Spending Limit (cycle) shall be defined as the monthly period ending on the same day each month, or, if that day is a Saturday, Sunday, or Holiday, the prior business day.

If control limits are violated, the authorization system utilized by the bank shall not approve the transaction, and shall capture the Cardholder’s name and report the attempt to the Purchasing Services in the “Cardholder Transaction Violation Report.”

In the event that a Cardholder overspends the designated budget, then the Cardholder’s college, school, department, or office shall resolve the over budget condition.  The University shall not maintain any central fund that shall be available to cover spending beyond the applicable budget.

University’s Billing Cycle:

The University's Billing Cycle shall be defined as the monthly period beginning on the first day of each month and ending on the last day of each month, or, if that day is a Saturday, Sunday, or Holiday, the prior business day. 

Activating The Purchasing Card:

In order to provide a measure of security, the Purchasing Card requires activation.  When the Purchasing Card is received, a sticker prompts the Cardholder to call JP Morgan Chase for Purchasing Card activation.  JP Morgan Chase shall verify the Cardholder’s identity using the information provided on the Cardholder Account Application.  Once activated, the Purchasing Card is ready for use.  Activation shall be required only once for each Purchasing Card received.

Making A Purchase:

Use of the Purchasing Card shall not relieve the Cardholder of their responsibility to adhere to any/all existing University negotiated contracts/agreements or applicable purchasing policy.

When making a Purchasing Card transaction the Cardholder shall check as many sources as reasonable to assure best price, quality, service and delivery. 

Purchasing In Person.  The Cardholder takes the Purchasing Card to the supplier, and verifies the supplier accepts VISA.  The Cardholder selects the order, carefully ensuring that the selection is not listed as a Purchasing Card exception and that the total cost of the purchase does not exceed the control limits set for the Cardholder’s Purchasing Card.  The Cardholder takes the order to the supplier’s cash register and presents the Purchasing Card for payment.  The Cardholder advises the supplier that the University is not tax exempt and shall pay all applicable sales tax. The supplier either swipes the Purchasing Card through a card reader or calls for an authorization.  The supplier asks the Cardholder to sign a card authorization slip.  The supplier issues the Cardholder a copy of the Purchasing Card authorization slip, cash register tape, and/or paid invoice.  The Cardholder shall retain all Purchasing Card transaction documentation for the cycle end reconciliation.

Phone/Fax Orders.  The Cardholder may call or fax an order to a supplier.  The supplier shall request the Cardholder’s Purchasing Card number and expiration date.  For security reasons, ensure others do not overhear or view this information.  The Cardholder advises the supplier that the University is not tax exempt and shall pay all applicable sales tax. The Cardholder shall ensure the supplier includes a Purchasing Card authorization slip, cash register tape, paid invoice, and/or delivery slip with the order.  If the supplier intends to mail the Purchasing Card transaction documentation, the Cardholder shall ensure the documentation shall be mailed to the Cardholder’s University mailing address (P.O. Box).  The Cardholder shall retain all Purchasing Card transaction documentation for the cycle end reconciliation.

Purchase Of Non-Capital Equipment:

The Purchasing Card may be used to purchase non-capital equipment.  Non-capital equipment designation shall be determined by adding the total unit cost plus freight and applicable taxes.  If the total unit cost is less than $5000.00, the purchase shall be considered non-capital. Certain equipment, while designated non-capital, shall be considered as tagable for tracking in the University's asset inventory.  All computer equipment/systems are taggable.

The University’s Equipment ID Tagging process shall ensure the following:

• Facilitate the equipment/system “IP” address
• Insure the equipment/system against loss
• Track equipment/system

The University’s Property Administration Department shall be responsible for the Equipment ID Tagging process.  To complete the Equipment ID Tagging process, the Cardholder shall provide Property Administration the following information:

• Copy of the Purchasing Card transaction receipt and/or invoice.  Ensure the receipt/invoice is legible and that transaction amounts are provided.  If the receipt/invoice denotes the Cardholder’s Purchasing Card Account Number, delete the Purchasing Card Account Number prior to providing to Property Administration.

• Department/Unit transaction shall impact
• Location: Building/Room #
• Department’s point of contact and telephone number

For accurate record keeping, the Purchasing Card Liaison shall redistribute the Purchasing Card expense by completing the expense transfer document (IX) within the University’s Financial System. Expense shall be redistributed to the appropriate Object/Sub-Object codes.

Property Administration may complete an Equipment ID Tagging process for “other” non-capital equipment, in accordance with the above-cited procedure at the Department’s request.  

Activity Requirements

Accounts with no activity over the previous six months are reviewed by the Purchasing Card Administrator. Cardholders with no activity are required to submit a written justification approved by their department head in order to keep the accounts open. Accounts without valid justification are closed. Spending limits are suspended on active accounts with valid justification until the accounts are needed.

Are Purchasing Card Transactions Safe Over The Internet?

Cardholder may use the Internet to submit an order to a supplier. The Cardholder shall ensure the supplier includes a Purchasing Card authorization slip, cash register tape, paid invoice, and/or delivery slip with the order. If the supplier intends to mail the Purchasing Card transaction documentation, the Cardholder shall ensure the documentation is mailed to the Cardholder’s University mailing address (P.O. Box). The Cardholder shall retain all Purchasing Card transaction documentation for cycle end reconciliation. Internet orders shall be subject to Use Tax.

The risks involved in using the Purchasing Card over the Internet are similar to the risks involved when using the Purchasing Card in person.  In either case, the Cardholder trusts a supplier with the Purchasing Card information.  Whether the transaction is made in person or over the Internet, a supplier could retain the Purchasing Card information for a period of time for personal use.  The Cardholder shall exercise caution when determining who shall be trusted with the Purchasing Card information. It is recommended that the Cardholder purchase on the Internet with reputable companies only.

In addition to the traditional risks involved with Internet purchases, there is one extra caution the Cardholder shall exercise when purchasing over the Internet.  When the Cardholder make a purchase on the Internet, the information exchanged between the Cardholder and the supplier is transmitted through the networks of possibly dozens of different sites.  For this reason, it is important to encrypt (scramble) the data exchanged so that only the supplier can decrypt (decodes) the information.  To accomplish this, assure the supplier is running a “Secure” server for purchases.  Such servers use a technology called Secure Sockets Layer, or SSL, to encrypt the data between the supplier’s site and the Cardholder’s site.  Only the supplier can decrypt the message at the other end; the information is meaningless to the sites in between.

Typically when making an on-line purchase, the Cardholder shall be sent to a “Secure” server prior to entering information including, Purchasing Card number and expiration date.  A dialog box informs the Cardholder that they are switching to a “Secure” mode. 

Note** If the Cardholder does not encounter the above step, consider calling the supplier instead of making an on-line purchase.

It is very important for the Cardholder to know when they are switched to a secure mode, be certain the dialog box indicates the Cardholder will continue to receive warnings when switching to secure servers in the future.  Read the dialog carefully since Netscape Navigator and Internet Explorer handle the check box differently.

In addition to the dialog box, the web browser should have a visual aid, indicating a secure/non-secure mode.  Most web browsers will have a lock, which is open for non-secure documents and is closed (locked) for secure documents.

There is one additional indicator for a secure/non-secure mode on a web page.  Most URL (Universal Resource Locator) addresses start with “http” such as: http://www.nau.edu/louie, switch to secure mode and “http” should reflect “https” (s for “secure”).  

Invoices:

It shall be the responsibility of the Cardholder to ensure the receipt of an original itemized cash register tape and/or paid invoice for each Purchasing Card transaction. The Cardholder shall instruct their suppliers, if mailing, to mail receipts and/or invoices to the Cardholder’s University (PO Box) mailing address. 

Rebates, Refunds, And Promotional Items:

Any rebates, refunds, received by the Cardholder as a result of a Purchasing Card transaction, shall become the property of Northern Arizona University and shall be deposited into the applicable department’s account.

Shipping:
For Purchasing Card transactions, advise the supplier to include the following information on the “Ship To” label and packing list:

•  “PURCHASING CARD PURCHASE”
• The Cardholder’s name
• Northern Arizona University
  Bldg Name, Bldg#, and Room #
  Street
  Flagstaff, AZ  86011

Purchasing Card Documentation, Record Keeping And Retention:

The Cardholder and the Purchasing Card Liaison shall be responsible for Purchasing Card transactions, record keeping, and retention of all Purchasing Card documentation.  As a State agency, the University shall be accountable and fiscally responsible.  Record keeping and retention is crucial for audit substantiation from sponsored agencies: State of Arizona, Arizona Board of Regents auditors, University internal auditors, Comptroller’s Office, Purchasing Services, and/or the Purchasing Card Program Administrator.  All Purchasing Card documentation shall be retained within the department in accordance with the State of Arizona Record Retention and Disposition Schedule (5 years) or as required by sponsoring agencies. 

When a Purchasing Card transaction occurs, the Cardholder shall document each transaction on the Purchasing Card Cycle Transaction Log including, the public purpose of each transaction.  The Cardholder shall, for each transaction, ensure the original sales document (invoice, cash register tape and/or Purchasing Card slips, etc.) is accounted for.  The Cardholder shall retain Purchasing Card transaction documentation for the cycle end reconciliation process.  Purchasing Card documentation shall substantiate all transactions recorded on the Cardholder’s Purchasing Card Cycle Transaction Log.

Sales Tax And Use Tax:

As a matter of policy, all agencies of the State of Arizona, including Northern Arizona University, are subject to applicable state and local taxes.  The University is not tax exempt unless the purchase of equipment and/or machinery is tied directly to research and/or development (ARS 42-5159 Exemptions). The University shall be responsible for the payment of Sales Tax or Use Tax, never both.  

Sales Tax. The University shall be responsible for the payment of Sales Tax when the University transacts business, for goods, with a supplier and the supplier collects Sales Tax.  Sales Tax shall be determined and collected at the point of sale.  

Use Tax. Use Tax is a privilege tax.  The University shall be responsible for collection and payment of Use Tax to the State of Arizona.  Use Tax is applicable when the University purchases goods (not services) from an out-of-state supplier and the supplier does not collect Sales Tax.  Software purchases are subject to Use Tax. Custom software, warranties, installation, service agreement are not subject to Use Tax if listed separately on the invoice. Internet orders shall be subject to Use Tax if tax is not already charged by the vendor.  Use Tax is calculated at a rate of 5.6% of the cost of goods.  Use Tax shall be calculated on the cost of goods only and shall not include shipping, handling, and/or freight costs.

Use Tax Responsibilities:

The Comptroller’s Office shall be responsible for reporting and payment of Use Tax to the State of Arizona.

The designated Purchasing Card Liaison shall be responsible for assuring their Cardholders record applicable Use Tax on the Purchasing Card Cycle Transaction Log and for reporting Use Tax liabilities to the Comptroller’s Office each Purchasing Card billing cycle.  The Purchasing Card Liaison shall complete and submit the Use Tax Liability Report to the Comptroller’s Office no later than the 18th of each month.   

Cardholder:  The Purchasing Card Cardholder shall be responsible for determining which tax, Sales or Use Tax, is applicable when purchasing goods with the Purchasing Card.  The Cardholder shall record the appropriate tax in the Sales Tax or Use Tax column on the Purchasing Card Cycle Transaction Log.

How Do You Determine Sales Tax Or Use Tax?

When the Cardholder transacts business with an out-of-state supplier, the Cardholder shall ask the supplier if they collect Sales Tax.  If the supplier responds, “yes, we do collect Sales Tax”, the Cardholder shall record the Sales Tax amount in the Sales Tax column on the Purchasing Card Cycle Transaction Log. The Cardholder shall be responsible for requesting, from the supplier, an itemized receipt/invoice that includes and substantiates the itemized tax.  If the supplier responds “no, we do not collect Sales Tax”, the Cardholder shall then calculate 5.6% of the cost of goods and record that amount in the Use Tax column on the Purchasing Card Cycle Transaction Log.

Refer suppliers to the Purchasing Card Liaison or to the Purchasing Card Program Administrator for further clarification.  For an updated tax schedule for the State of Arizona cities, contact Purchasing Services.

Purchasing Card “Statement Of Account”, Review And Reconciliation:

The Cardholder and the Purchasing Card Liaison shall be the first line of defense in determining if the Purchasing Card transactions are accurate, legitimate and ultimately paid.

At the end of each Purchasing Card billing cycle (end of each month), the JP Morgan Chase Purchasing Card  “Statement of Account” shall be available where there has been Purchasing Card activity.  The JP Morgan Chase “Statement of Account” shall detail the Cardholder’s Purchasing Card transactions for the previous billing cycle.  The Cardholder shall reconcile their “Statement of Account” with their Purchasing Card Cycle Transaction Log and ensure all original sales documentation (invoice, cash register tape and/or Purchasing Card slips, etc.) is accounted for. Should the Cardholder realize no Purchasing Card activity, for a given billing cycle, no “Statement of Account” shall be available. 

PaymentNet™:

PaymentNet™ was designed specifically for JP Morgan Chase Commercial Card products as an Internet based software, which can be accessed with practically any commercial browser. Internet accessibility allows Administrators, management and Cardholders alike to view their Purchasing Card information from the office, home, or any other remote location. 

PaymentNet™ offers the University the following features:

• PaymentNet™ enables the University to be self-sufficient by allowing users access to their Purchasing Card data, “Statement of Account”, 365 days a year/24 hours a day (with the exception of periodic back-up and maintenance down times occurring occasionally between the hours of midnight and 4 A.M. central time).

• The University shall retain access to its own data and the ability to build reports, search for information, and copy into a word processor for presentations.

• PaymentNet™ provides over 60 different detailed reports to assist the University manage spending activity across its Colleges, Schools, departments and/or offices. Reports can be viewed in Adobe Acrobat Reader, Word, and Excel.

• In addition to its core reports, PaymentNet™ offers the University enhanced query functions to build customized data reports.  If required, JP Morgan Chase will assist in creating additional customized reports.

• PaymentNet™ shall map transaction data directly to the University’s General Ledger and by Fiscal Year, FUND, DEPARTMENT, UNIT, SUB-UNIT (if applicable), ACTIVITY, OBJECT Code, and SUB-OBJECT Code thus, minimizing accounts payable tasks. 

• PaymentNet™ offers colorful, easy-on-the-eye screens and user-friendly documentation.

Accessing PaymentNet™:
Enter the URL https://www.paymentnet.com/.

Enter your login information:

• Organization ID: us63992
• User ID:  (individual’s NAU User ID)
• Pass Phrase: @@ followed by the last four digits of your Employee ID Number.

For security purposes, the initial Pass Phrase: @@ followed by the last four digits of your Employee ID Number shall be changed to a Pass Phrase unique to the end user. Pass Phrase shall be changed after the end users initial entry into PaymentNet.

Click Login Now.  

PaymentNet™ A Quick Reference Guide:

JP Morgan Chase offers a Quick Reference Guide to assist you in navigating through the PaymentNet™ process.

Purchasing Card Documentation and Submittal:

The Cardholder shall be responsible for their Purchasing Card transactions, documentation, and reconciliation.  Purchasing Card documentation shall include, the Purchasing Card Cycle Transaction Log, the JP Morgan Chase “Statement of Account” and all transaction original invoices, cash register tapes and/or Purchasing Card slips.

Purchasing Card documentation shall be forwarded to the designated Purchasing Card Liaison no later than the tenth (10th) of the month following the close of the University's Billing Cycle . If the tenth (10th) of the month falls on a weekend or a holiday the documentation must be submitted no later than the first business day following the tenth (10th) of the month.

The Purchasing Card Liaison shall review their Cardholders submitted Purchasing Card documentation, including the JP Morgan Chase “Statement of Account” and Purchasing Card Cycle Transaction Log for appropriateness, completeness and shall, for each transaction, ensure all original sales documentation (invoice, cash register tape and/or Purchasing Card slips, etc.) are accounted for.

Once reviewed, the Purchasing Card Liaison shall sign and date the Cardholder’s Purchasing Card Cycle Transaction Log, reconcile all transactions to the University’s Financial System, and file documentation by Cardholder and billing cycle.   All Purchasing Card documentation shall be retained within the department in accordance with the State of Arizona Record Retention and Disposition Schedule (5 years) or as required by sponsoring agencies. 

Purchasing Card Transactions and Posting To The University’s Financial System:

Each Purchasing Card shall be assigned to a specific University Financial System accounting string.  The accounting string consists of an Organization’s designated FUND, DEPARTMENT, UNIT, SUB-UNIT (if applicable), and ACTIVITY. To view or determine your Organization’s designated accounting string, visit the Advantage “ORGN” table.

Purchasing Card transactions shall post to the University’s Financial System, General Ledger (G/L) by Fiscal Year, FUND, DEPARTMENT, UNIT, SUB-UNIT (if applicable), ACTIVITY, OBJECT Code and SUB-OBJECT Code.  Purchasing Card transactions may be viewed in the University Financial System, visit the Advantage “BQ80LV2” table.  For details regarding a specific accounting journal posting, contact the Purchasing Card Program Administrator.

Default OBJECT/SUB-OBJECT Codes:
“General Goods and Services”
All Purchasing Card transactions for goods and/or services shall default and post to OBJECT/SUB-OBJECT Code:

7315-01     Purchasing Card Transactions

“Travel Related Expenditures”

All Purchasing Card transactions for travel related expenses shall default and post to OBJECT/SUB-OBJECT Code 7615-01 (except registration fees 7315-01 and airline tickets 7620-30).

7615-01     Purchasing Card Travel Transactions

Business Related Food and Meals”
All Purchasing Card transactions for business related food and meals shall default and post to OBJECT/SUB-OBJECT Code:

7318-01     Business Meals/Food PCard

Expense Transfer Procedure:
All Purchasing Card transactions for goods and/or services shall default and post to OBJECT/SUB-OBJECT Code 7315-01.   The Purchasing Card Liaison may redistribute these expenses by completing the Advantage Expense Transfer (IET) document in the University Financial System. The Purchasing Card Liaison shall use OBJECT/SUB-OBJECT Code 7316-01 for processing “Purchasing Card Expenses” predicated on OBJECT/SUB-OBJECT Code 7315-01 being used for incoming bank transactions. Complete the Advantage Expense Transfer (IET) document in the University Financial System. A copy of the (IET) document shall accompany the Purchasing Card Cycle Transaction Log.

All Purchasing Card transactions for travel related expenses are designed to default and post to OBJECT/SUB-OBJECT Code 7615-01 (except registration fees and airline tickets). The Purchasing Card Liaison shall redistribute all travel related expenses hitting Object Code 7615 to the appropriate OBJECT/SUB-OBJECT Code(s) by completing the Advantage Expense Transfer (IET) document in the University Financial System. The Expense Transfer shall be completed at the end of each month using OBJECT/SUB-OBJECT Code 7616-01 as an offset against incoming bank transactions hitting OBJECT/SUB-OBJECT Code 7615-01 (i.e.. the IET shall be from 7616-01 to the appropriate travel object, sub-object code). To document the transfer, attach a copy of the IET document to the Purchasing Card Cycle Transaction Log. If travel related expenses are being moved as described above, balances in the 7615-01 and 7616-01 shall net to $0 at month end.

Airline ticket purchases will default to the out-of-state 7620-30 OBJECT/SUB-OBJECT code. As a result, the majority of airline ticket purchases will require no IET transfer. However, if the ticket is for foreign or in-state (rare) travel, the expense should be transferred from the 7620 object code to the 7640 (foreign) or 7610 (in-state) object code.

All Purchasing Card transactions for business related food and meals shall default and post to OBJECT/SUB-OBJECT Code 7318-01. The Purchasing Card Liaison shall redistribute all non-food related items hitting Object Code 7318 to an appropriate OBJECT/SUB-OBJECT for that purchase type. Business related food and meal items shall not be redistributed. Complete the Advantage Expense Transfer (IET) document in the University Financial System. A copy of the IET document shall accompany the Purchasing Card Cycle Transaction Log.

All Purchasing Card travel related expenses shall be redistributed to the appropriate OBJECT/SUB-OBJECT codes (s) at the end of each month by completing an IET document in Advantage.

Delinquent Documentation:

A Cardholder that is consistently delinquent in their submission of reconciled Purchasing Card documentation shall be in violation of the Purchasing Card policies and procedures and therefore may face cancellation of their Purchasing Card privileges.  The Purchasing Card Liaison shall issue an Exception notice in the event the Cardholder is late submitting required documentation.

Lack Of Supporting Documentation:

It shall be the responsibility of the Cardholder and the Purchasing Card Liaison to ensure each Purchasing Card transaction shall be substantiated with the proper documentation.  Should supporting documentation be lacking, the Cardholder and/or the Purchasing Card Liaison shall resolve said deficiency.  The Cardholder may obtain copies of missing sales documents from the supplier or by contacting JP Morgan Chase.  JP Morgan Chase will contact the merchant's bank for a copy of the Purchasing Card receipt requested.. The receipt will be mailed to the Cardholder within thirty (30) days. The first three (3) receipt requests are at no charge. Beginning on the fourth a cost of $5.00 will be assessed and charged to the Cardholder's account.

Payment Of Cycle Statement:

Purchasing Card transaction payments shall be issued to JP Morgan Chase by the Comptroller’s Office utilizing a wire transfer method.  Errors shall be credited with the next cycle.

Resolving Returns, Credits, Errors And Disputes:

In the event problems with a supplier are experienced due to failure to receive the goods, fraud, altered charges, defective merchandise, incorrect quantity or incorrect merchandise, duplicate charges, credits not processed, discounts not received, the Cardholder shall contact the supplier to resolve any concerns.  Responsible suppliers will resolve any legitimate concerns.

If the Cardholder cannot resolve a difficulty with a supplier, the Cardholder shall dispute the questionable transaction(s) directly with JP Morgan Chase.  The Cardholder shall dispute questionable transaction(s) by submitting a Statement of Questioned Item within sixty (60) days from the end of a billing cycle in which the questionable transaction occurs. The Cardholder shall complete the Statement of Questioned Item, print it out, sign, date and fax or mail the form to JP Morgan Chase Dispute Department. The form includes the mailing address and fax number.

 JP Morgan Chase shall review and investigate the disputed transaction(s).   During this investigation, the Cardholder’s account shall be credited for the amount in question.  When JP Morgan Chase has completed the investigation, the Cardholder shall be notified of the results.  If the dispute is not settled in the Cardholder’s favor, the Cardholder’s account shall be charged for the disputed amount.

During the dispute investigation process, the Cardholder and/or JP Morgan Chase may need to obtain copies of sales documents.  Should the Cardholder and/or JP Morgan Chase require copies of sales documents, JP Morgan Chase shall charge $10.00 for each copy obtained to the Cardholder’s account.

The dispute resolution process is not much different than how an individual resolves a personal credit card problem.  Contact the supplier first, then the bank/credit card company.

Post-Audit Compliance:

The objective of a post-audit compliance process shall be to verify compliance with the University's Purchasing Card policies and procedures. The results of the post-audit review shall be analyzed to determine what, if any, additional training or clarification of Purchasing Card policies and procedures shall be required. In addition, findings may result in recommendations for additional controls and/or procedural changes to improve compliance with Purchasing Services policies and procedures and the overall effectiveness of the Purchasing Card program. Post-audit compliance procedures and protocols may be viewed at http://www4.nau.edu/comptr/compliance/compliance.html or for additional information on the post-audit compliance process, contact Anton Ciochetti in the Comptroller's Office.

Can A Purchasing Card Liaison Be A Cardholder?

Should the Purchasing Card Liaison and Cardholder be one in the same, the Purchasing Card Liaison shall forward their Purchasing Card documentation including, the JP Morgan Chase “Statement of Account” and Purchasing Card Cycle Transaction Log to their immediate supervisor for the review and approval process. The supervisor shall review the Purchasing Card Liaison’s “Statement of Account” and Purchasing Card Cycle Transaction Log for accuracy, completeness, appropriateness and shall ensure an original sales documentation (invoice, cash register tape and Purchasing Card slips, etc.) are accounted for. The supervisor shall sign and date the Purchasing Card Cycle Transaction Log. The supervisor shall return the documentation to the Purchasing Card Liaison for reconciliation to the University’s Financial System, and record retention.

Information Changes to The Purchasing Card:

The designated Purchasing Card Liaison may change Purchasing Card account information by submitting the change(s) on the Change Request Form.  Items that are typically changed are Cardholder’s name, accounting information, FUND, DEPARTMENT, UNIT, SORG, ACTIVITY.  The Purchasing Card Liaison shall submit the change request to the Purchasing Card Program Administrator.  Mail, do not fax, requests in a sealed envelope marked “Confidential”. 

Delete Or Close The Purchasing Card:

To delete or close an existing Purchasing Card account, due to Cardholder transfer or separation, the Cardholder shall surrender the Purchasing Card and all supporting Purchasing Card transaction documentation to their designated Purchasing Card Liaison.  The Purchasing Card Liaison shall destroy the Purchasing Card and complete the “Delete/Close” information, on the Change Request Form. The Purchasing Card Liaison shall sign, date, and submit the request to the Purchasing Card Program Administrator.  Mail, do not fax, requests in a sealed envelope marked “Confidential”. 

Changes To The Purchasing Card Liaison:

Any change in the status of an existing Purchasing Card Liaison shall be communicated immediately to Purchasing Services by the department’s leadership.  Failure to notify Purchasing Services of any change shall be considered as a violation of Purchasing Card policies and procedures and may jeopardize further Purchasing Card program participation.  

End Of Fiscal Year Procedure:
Goods and services shall be expended in the year in which they are received.  When the Purchasing Card is used, the supplier may hold the Purchasing Card transaction posting for several days.  This event could create an accounting problem at the end of a fiscal year (June 30th.).  To ensure that Purchasing Card expenditures are properly recorded in the year goods and services are received, the Cardholder shall inform the supplier that the transaction shall be posted the same day as the transaction and prior to June 30th.  To ensure proper recording of expenditures, it is recommended that the Purchasing Card not be used during the last week of the fiscal year (June 30th.).

When the Purchasing Card is used for authorized travel related expenses and these transactions will crossover fiscal years, the Cardholder shall report these transactions to their designated Purchasing Card Liaison.  Types of transactions shall include, but not be limited to, airfares, registrations, hotel deposits, etc. that shall require payment at the time the reservation is made.

Example: (1) A registration fee for a September 2007 conference and the payment is due in May 2007.  This transaction shall post to fiscal year 2007. However, the transaction should be expensed in fiscal year 2008.

Example: (2) An airfare transacted in January 2007 for a July 2007 trip.  This transaction shall post to fiscal year 2007. However, the transaction should be expensed in fiscal year 2008.

The above, are examples of crossover transactions that shall be reported to your designated Purchasing Card Liaison.

Information required, for reporting crossover transactions include:

• DEPARTMENT/UNIT to which the transaction posted
• Object/Sub-Object Code to which the transaction posted
• Transaction amount
• Description of transaction
• Monthly Summary Detail ("8") Report
• Provide the "JVA" number

Suppliers That Do Not Accept The Purchasing Card:

If a supplier currently does not accept VISA, notify the Purchasing Card Program Administrator, and with assistance from JP Morgan Chase, every attempt will be made to enroll the supplier in the VISA acceptance Program.

The Purchasing Card and Travel:

All travel shall be considered travel at the University’s expense, regardless of the funding source and shall be subject to University travel policies and procedures.  All travel shall be approved in advance by the appropriate official regardless of funding source.

The Purchasing Card Program is designed to ensure compliance with all State of Arizona Travel Policy, Arizona Revised Statutes (A.R.S. 38-621 through A.R.S. 38-627), Arizona Board of Regents, and University travel policies and procedures, to provide meaningful travel data, and provide the means by which the traveler (Cardholder) is no longer awaiting large reimbursement checks from the University.  Policies and procedures outlined in the Northern Arizona University Travel Policy Manual and this document, The Purchasing Card A Guide For Users, shall be strictly adhered to.

What Travel Related Items May Be Purchased With The Purchasing Card?

Purchasing Cards may be used to purchase the following approved travel related items:

• Airlines
• Railroads
• Passenger Railways
• Taxicabs
• Bus Lines
• Bridge and Road Fees, Tolls
• Lodging (no meals/food)
• Rental Cars
• Gas and Oil  (rental vehicles only)
• Automobile Parking Lots and Garages
• Local and Long Distance Calls, Credit Card Calls, Calls Through Use of Magnetic Stripe-Reading Telephones, Facsimile Services (University business only).

Benefits When Using The Purchasing Card For Travel:

JP Morgan Chase offers Insurance and Traveler Assistance for the Cardholder that utilizes the Purchasing Card for travel.  The offered standard package of traveler services include:

 $500,000 Common Carrier Insurance

Cardholders are insured for up to $500,000 against death or dismemberment arising from accidents occurring while traveling on any common carrier, provided the fare has been charged to a JP Morgan Chase Commercial Card account.

 $1,250 Lost or Stolen Luggage Insurance

Cardholders are insured for secondary baggage insurance, which provides up to $1,250 in coverage for luggage checked with a common carrier due to theft, misdirection, or loss by the carrier. 

 Primary Car Rental Insurance

When cardholders charge their rental car, they receive additional coverage that reimburses cardholders for the repair or replacement of a damaged or stolen rental car, up to the full value of the car. This could save up to $15 per day from rental insurance.

 $1,000 Hotel/Motel Theft Insurance

When a hotel/motel is booked with a JP Morgan Chase Commercial Card, we provide up to $1,000 insurance for personal property stolen from the cardholder’s room using forceful entry. Spouses and legally dependent children traveling with the cardholder are also covered.

 24-Hour Roadside Assistance

Through the American Automobile Association (AAA), cardholders receive roadside assistance in emergency situations in the United States and Canada. Service fees are billed directly to the cardholder’s account.

 Travel Assistance

Visa/MasterCard provide information on travel requirements, including documentation (visas, passports), immunizations and currency exchange rates. If travel documents are lost or stolen during a trip, Visa/MasterCard will help replace them. Additionally, if a cardholder needs cash for a travel emergency, Visa/MasterCard will arrange to transfer up to $5,000 from the cardholder’s business, family member, or friend.

 Medical Assistance

For medical emergencies while traveling, Visa/MasterCard can refer doctors, dentists, hospitals, and pharmacies to the cardholder. Emergency treatments are covered up to $2,500 and if hospitalization is needed Visa/MasterCard will arrange care. In the event of the death of an immediate cardholder relative while the cardholder is traveling abroad, Visa/MasterCard will pay for their return to the United States.


 Legal Referral Assistance

If a cardholder is in need of legal aid, Visa/MasterCard will refer a lawyer or consult with the appropriate embassies or consulates regarding the cardholder’s situation. Visa/MasterCard can also assist with cash transfers of up to $5,000 from the cardholder’s business or family member, to cover legal fees or to post bail. There is no charge for referral services; however, legal and bail fees are the cardholder’s responsibility.

Procedures When Using The Purchasing Card For Travel:

Once the decision has been made to embark on a business related trip, the Cardholder shall ensure the travel status is achieved by obtaining the “Travel Authorization” (TE) document and obtaining appropriate approvals on the “Travel Authorization” (TE) document. Contact your designated departmental travel coordinator.

The “Travel Authorization” (TE) number shall be crucial for the collection of data required for Internal Revenue Service, Federal, and State agency compliance.  Additionally, the “Travel Authorization” (TE) number shall be used to document and substantiate Purchasing Card travel transactions recorded on the Purchasing Card Cycle Transaction Log and the JP Morgan Chase “Statement of Account.”

The same documentation, record keeping, retention, and reconciliation process applies to Purchasing Card travel transactions as described earlier in this manual.

When a Purchasing Card travel transaction occurs, the Cardholder shall record and document each transaction on the Purchasing Card Cycle Transaction Log including, the public purpose of each transaction. Cardholder shall note the Purchasing Card transaction is a travel related expense in the appropriate column and note the “TE” number in the description column as the required “public purpose”.   

In accordance with (A.R.S. 38-625) the Cardholder shall, for each Purchasing Card travel transaction, ensure original sales document  (invoice, cash register tape, and Purchasing Card slips) is accounted for.  Purchasing Card travel transaction documentation shall substantiate all transactions recorded on the Cardholder’s Purchasing Card Cycle Transaction Log and documented on the JP Morgan Chase “Statement of Account.”

The Cardholder is encouraged to purchase all approved travel related items with the Purchasing Card while on travel status. All Purchasing Card travel transactions appear in the Cardholder’s JP Morgan Chase “Statement of Account” for the posting cycle.

Questions or comments regarding the University’s travel policies and procedures shall be directed to:

Rosanna Ruiz
Comptroller's Office
Telephone: (928) 523-6232
E-Mail:  Rosanna.Ruiz@nau.edu

Requesting The Purchasing Card:

The department shall designate a Purchasing Card Purchasing Card Liaison.  The Purchasing Card Liaison shall be defined as the individual responsible for departmental expenditures. The department’s leadership and the Purchasing Card Liaison shall complete the Purchasing Card Liaison Agreement.                                                                                                                        

The potential Cardholder completes the Cardholder Account Application.  The Cardholder Account Application requires applicants to furnish personal information, which shall be used to establish the individual’s identity and activate the individual’s Purchasing Card.  Personal information furnished shall be safeguarded. 

Completed forms shall be forwarded to Purchasing Services for approval and processing.  Purchasing services will enroll the applicant in the on-line training course found on the Internet at vista.nau.edu.  After the applicant passes the required training the application will be submitted to JPMorganChase.

Purchasing Services shall maintain all information pertaining to the Purchasing Card Program.  It is recommended the Purchasing Card Liaison retain copies of submitted information pertaining to the Purchasing Card Program for departmental use.

Purchasing Cards shall be delivered to Purchasing Services approximately 5-10 workdays after forms are processed.  The Cardholder shall sign the Cardholder Agreement acknowledging that they have read, understand and will follow the terms and conditions of the Purchasing Card Program and all related policies and procedures cited herein and receipt of the Purchasing Card.

WHO SHOULD YOU CALL?

Purchasing Card Program coordinator:

Glenn Birkett
Purchasing Services
Telephone: (928) 523-6094
Fax: (928) 523-1343
E-Mail:pcard@nau.edu

Information Technology Services Solution Center:

Telephone:  (928) 523-1511
Comptroller’s Office:
Brent Helsel
Comptrollers Office
Telephone: (928) 523-6063
Fax: (928) 523-9287
E-Mail: Brent.Helsel@nau.edu

JP Morgan Chase: Lost or Stolen Cards: 1-800-270-7760

JP Morgan Chase Customer Service:

Telephone:  1-800-270-7760