The
Purchasing Card: Use and Restricted Items
What Is the Purchasing Card?
The
Northern Arizona University Purchasing Card is a JP
Morgan Chase Visa corporate liability card. It is a
fast convenient way for departments to spend moneys
directly from designated budgets. The Purchasing Card
is issued to a University employee, but the University
is ultimately responsible for paying the bill.
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Use of the Purchasing Card
The
Purchasing Card may be used wherever Visa is accepted,
following University’s Purchasing Services policy
and procedures. This convenient purchasing tool may
be used directly at a storefront or for orders via the
telephone, fax or online.
THE
PURCHASING CARD SHALL BE USED FOR UNIVERSITY BUSINESS
ONLY, NOT FOR PERSONAL USE.
All
transactions made using the Purchasing Card shall benefit
and support the University’s mission of education,
research and public service.
An individual who transacts unauthorized purchases,
fraudulently or intentionally miss-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. Fraudulent
or intentional miss-use of the Purchasing Card can result
in cancellation of the Purchasing Card, termination,
and/or possible criminal charges.
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Characteristics
of the Purchasing Card
Northern
Arizona University’s logo appears on the Purchasing
Card. Additionally, the Department’s designated
Fund, Agency, Organization, Sub-Organization (if applicable)
and Activity appears on the Purchasing Card under the
cardholder’s name for reference.
Purchasing
Card capabilities include:
•General
Goods, Services and/or Travel Privileges (951)
Purchasing
Cards are nontransferable and non-assignable and remain
the property of Northern Arizona University and JP Morgan
Chase.
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Restrictions
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 jeopardize
further Purchasing Card program participation.
•
Alcoholic Beverages
• Animals of any type, dead/alive
• Bars/Cocktail-Lounges/Nightclubs/Taverns/Drinking
Establishments
• Bottled Water
• Capital Equipment (items costing more than
$5000.00)
• Cash Advances
• Employee Appreciation/Recognition Items/Gifts
• Entertainment
• Financial Institution/Travelers Cheques/Securities/Insurance
• Fines/Penalties
• Firearms/Ammunition/Explosives
• Flowers
• Food Purchases of any type (including coffee,
soda, etc.) for human consumption
• 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)
• Gifts/Contributions
• Legal Fees
• Loans
• Material prohibited by State or Federal law
(like fireworks or controlled substances)
• Meals
• Narcotics/All Drugs
• Package Stores/Beer/Wine/Liquor
• Personal Purchases
• 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 or (pre-paid) Telephones
Any
exceptions to the above list shall be handled on an
individual basis and shall be directed to the Purchasing
Services contact prior to incurring the expenditure.
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Join the Purchasing Card Program
Criteria
for Departmental Participation
In
order to participate in the Northern Arizona University
Purchasing Card program, each department and departmental
leadership shall be able to answer "yes" to
the following questions:
1. Will your department/area be able to insure that
rules and regulations governing the use and protection
of the Purchasing Card shall be followed?
2. Will your Dean, Director or Chair or equivalent administrator
empower one of your employees to act as a Purchasing
Card AGENCY/ORGN Fiscal Liaison for purposes of monitoring,
reporting Purchasing Card policy, reporting violations
or any misuse of the Purchasing Card? This employee
shall require top level authorization and on-going support.
3. Will your Dean, Director or Chair take immediate,
appropriate action upon learning of Purchasing Card
misuse? Purchasing Cards can be suspended temporarily,
individual and monthly purchase limits can be lowered,
or Purchasing Cards can be canceled, based on the degree
of misuse. Notify the Purchasing Services contact immediately.
4. Do you have staff that can provide prompt, reliable
reconciliation and approval of Purchasing Card transactions?
5. Will your department be able to establish a system
for handling and archiving Purchasing Card documentation,
including order forms, logs, receipts, invoices, packing
lists, etc?
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Getting Started
When
your department and departmental leadership meets the
criteria described above, here are the steps for getting
started.
1.
The department shall designate a Purchasing Card AGENCY/ORGN
Fiscal Liaison. The Purchasing Card AGENCY/ORGN Fiscal
Liaison shall be defined as the individual responsible
for departmental expenditures. The department’s
leadership and the Purchasing Card AGENCY/ORGN Fiscal
Liaison shall complete the Purchasing Card AGENCY/ORGN
Fiscal Liaison Agreement and on-line training course.
2. The requesting cardholder and the designated Purchasing
Card AGENCY/ORGN Fiscal Liaison complete 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.
I3.
Purchasing Cards are issued. Purchasing Cards shall
be delivered to Purchasing Services approximately 5-10
workdays after forms are processed. Prior to issuance,
the Cardholder and the Purchasing Card AGENCY/ORGN Fiscal
Liaison shall read the Training
Manual-A Guide for Users. The Cardholder shall sign
the Cardholder Agreement acknowledging that they have
read, understand and will abide by the terms and conditions
of the Purchasing Card Program and its policies and
procedures cited in the "Training Manual-A Guide
for Users".
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Purchasing Card Management
Authorized
Purchasing Card Use
THE
PURCHASING CARD SHALL BE ISSUED WITH THE CARDHOLDER’S
NAME EMBOSSED ON IT AND SHALL ONLY BE USED BY THE NAMED
CARDHOLDER. NO OTHER PERSON SHALL BE AUTHORIZED TO USE
THAT PURCHASING CARD.
A
violation of this trust shall result in the Cardholder
having Purchasing Card privileges withdrawn and/or disciplinary
action. The Cardholder may make Purchasing Card transactions
on behalf of others. However, the Cardholder shall be
responsible for all use of the Purchasing Card.
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No Delegation or Assignment
Individual
Purchasing Cards shall not be delegated or assigned
to others. All Purchasing Cards are the property of
Northern Arizona University and JP Morgan Chase.
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Spending Limits
When
applying for the Purchasing Card, the department’s
leadership and the designated Purchasing Card AGENCY/ORGN
Fiscal Liaison shall establish the following control
limits for each Cardholder:
•
The Single Purchase Transaction Limit; $5000.00
• Transactions greater than $5000.00 shall be
blocked on the Purchasing Card and shall be denied at
the point of sale.
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Purchasing Card Security
PURCHASING
CARDS SHALL BE DILIGENTLY SAFEGAURDED. SAFEGAURD YOUR
PURCHASING CARD AS YOU WOUD CASH!
In
case of loss or theft of the card or misappropriation
of the Purchasing Card account number, fraudulent charges
are forgiven by the bank ONLY if they are notified by
the end of the month following the month in which the
fraudulent charges occur (this is called the notification
period).The Cardholder shall immediately notify the
JP Morgan Chase and report the 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. If the bank is not contacted within
the notification period, fraudulent charges could become
the liability of the Cardholder's department, or if
denied by the department, the liability of the Cardholder.
Through
prompt reconciliation, Cardholder’s may be the
first to become aware of fraudulent charges, and should
notify the bank immediately. The Cardholder shall notify,
within one (1) workday, after discovering the Purchasing
Card missing, the Purchasing Card AGENCY/ORGN Fiscal
Liaison and Purchasing Services of the lost or stolen
Purchasing Card.
LOST OR STOLEN PURCHASING CARDS
IMMEDIATELY CONTACT
JP MORGAN CHASE AT 1-800-270-7760
EVERY
CARDHOLDER SHALL KEEP THIS PHONE NUMBER SOMEWHERE SEPARATE
FROM THEIR PURCHASING CARD, FOR EASY ACCESS IN CASE
OF LOSS OR THEFT!
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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 on the University’s Purchasing Card Program.
Questions concerning the types of expenses allowed on
federally sponsored accounts shall be directed to Kevin Johnson/Sponsored Projects, telephone: (928) 523-4535.
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University’s
Purchasing Card Billing Cycle
The
Billing 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.
The University’s billing cycle shall be defined
as running from the first of each month to the end of
each month.
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Activating the Purchasing
Card
The
Cardholder shall call the 1-800 number on the sticker
of the Purchasing Card to activate the card. This automated
line will prompt the Cardholder for the credit card
number (on the face of the card), social security number
and mother’s maiden name (if mother’s maiden
name was not used, enter chosen password).
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Purchasing Card Renewal
Purchasing
Cards shall be automatically renewed prior to their
expiration date.
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How to Make Changes
Purchasing
Card Information Changes
The
designated Purchasing Card AGENCY/ORGN Fiscal Liaison
may change Purchasing Card account information by submitting
the change(s) on the Cardholder Account Application.
Items that are typically changed are Card Capabilities,
Cardholder’s name, accounting information, FUND,
AGENCY, ORGN, SORG, and ACTIVITY. The Purchasing Card
AGENCY/ORGN Fiscal Liaison shall submit the change request
to Purchasing Services. Mail, do not fax, requests in
a sealed envelope marked “Confidential”.
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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 AGENCY/ORGN Fiscal Liaison. The Purchasing
Card AGENCY/ORGN Fiscal Liaison shall destroy the Purchasing
Card and complete the “Delete/Close” information,
on the Cardholder Account Application. The Purchasing
Card AGENCY/ORGN Fiscal Liaison shall sign, date, and
submit the request to Purchasing Services. Mail, do
not fax, requests in a sealed envelope marked “Confidential”.
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Changes to the AGENCY/ORGN
Fiscal Liaison
Any
change in the status of an existing Purchasing Card
AGENCY/ORGN Fiscal Liaison shall be communicated immediately
to the Purchasing Services contact 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.
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Placing an Order
Transaction
Flow
When
making a Purchasing Card transaction the Cardholder
shall check as many sources as reasonable to assure
best price, quality, service and delivery. Purchasing
Card transactions are allowed in person, via the telephone
or over the internet.
USE
OF THE PURCHASING CARD SHALL NOT RELIEVE THE CARDHOLDER
OF THEIR RESPONSIBILITY TO ADHERE TO ANY/ALL EXISTING
UNIVERSITY NEGOTIATED CONTRACTS/AGREEMENTS.
Cardholder
places an order. The Cardholder shall be responsible
for their Purchasing Card transactions, documentation,
and reconciliation. Purchasing Card documentation shall
include documenting all Purchasing Card transactions
on the Purchasing Card Cycle Transaction Log, printing
the JP Morgan Chase “Statement of Account”
(billing cycle ends on the last day of each month) and
account for all Purchasing Card transaction original
invoices and/or receipts. Cardholder shall reconcile,
on a cycle basis, all Purchasing Card transactions with
their Cycle Transaction Log, JP Morgan Chase Statement
of Account and invoices and/or receipts. Once reconciled,
Cardholder shall attach all invoices and/or receipts
to the Cycle Transaction Log, sign and date the Cycle
Transaction Log and forward their Purchasing Card information
including all supporting documentation to their designated
AGENCY/ORGN Fiscal Liaison, for review and approval,
no later than the tenth of each month. Access to Cardholder’s
account information and activity for reconciliation
may be accessed through JP Morgan Chase’s PaymentNet™.
The Purchasing Card AGENCY/ORGN Fiscal Liaison shall
review their Cardholder’s 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 transaction invoices and/or receipts are
accounted for. Access to Cardholder’s account
information and activity for reconciliation may be accessed
through JP Morgan Chase’s PaymentNet™.
Once reviewed, the Purchasing Card AGENCY/ORGN Fiscal
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.
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Can An AGENCY/ORGN Fiscal Liaison
Be A Cardholder?
Yes.
Should the Purchasing Card AGENCY/ORGN Fiscal Liaison
and Cardholder be one in the same, the Purchasing Card
AGENCY/ORGN Fiscal 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.
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Itemized Invoices
The
Cardholder shall be responsible for requesting from
the merchant an original itemized receipt, invoice,
bill and/or other related documents that include itemized
tax for each Purchasing Card transaction. Purchasing
Card supporting documentation shall be retained for
the cycle end reconciliation and record retention process.
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Sales Tax and Use Tax Information
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 merchant and the merchant 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 merchant and the merchant does not collect
Sales Tax. Internet orders shall be subject to Use Tax.
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 or handling
costs.
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Delivery Instructions
Cardholders
shall provide the merchant with detailed instructions
for delivery. All goods should be shipped directly to
the department and not Campus Supply. Note that different
addresses are used if the goods are shipped via US mail
or a commercial carrier. A department’s Box number
shall be used for shipping through US mail. Street addresses
shall be used by campus departments for shipping by
a commercial carrier. Cardholders shall ask the merchant
which shipping method will be used. Examples follow.
U.S. Mail: Joe Anybody
Registrar’s Office
Gammage Building, Room 104
Box 4103
Northern Arizona University
Flagstaff, Arizona 86011-4103
Commercial Carrier
(UPS, Federal Express): Joe Anybody
Registrar’s Office
Gammage Building 001, Room 104
Knoles Drive
Northern Arizona University
Flagstaff, Arizona 86011
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Billing Address Information
When
a Cardholder places an order, over the phone or the
internet, they shall provide the merchant their billing
address information. The Cardholder’s billing
address is their Northern Arizona University department’s
box number. Cardholders shall emphasize all invoices
shall be issued to their billing address, not to the
University's Accounts Payable office.
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Damaged Goods/Disputed
Purchasing Card Transactions
THE
CARDHOLDER SHOULD IMMEDIATELY ATTEMPT TO RESOLVE ANY
DISCREPANCY DIRECTLY WITH THE MERCHANT.
A
discrepancy can result from failure to receive goods,
fraud, altered charges, defective merchandise, incorrect
quantity or incorrect merchandise, duplicate charges,
credits not processed or discounts not received.
If
the Cardholder is unable to reach an acceptable solution
or agreement with the merchant, he or she should notify
their designated Purchasing Card AGENCY/ORGN Fiscal
Liaison.
The
charge can be disputed online through PaymentNet by
the Cardholder. The Cardholder may also call JP Morgan
Chase Customer Services at 1-800-270-7760. If the bank
is not notified within the appropriate allotted time
frame, fraudulent charges could become the liability
of the Cardholder's department or if denied by the department,
the liability of the Cardholder.
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Help For Merchant
Problems when Placing Phone Orders
If
a merchant has difficulty in handling a Purchasing Card
transaction (e.g., says it's not valid, says it's expired)
and the Cardholder is unable to resolve the problem,
HELP is available from JP Morgan Chase Customer Services
at 1-800-270-7760.
JP
Morgan Chase Customer Services is authorized to speak
only with Cardholders and with Purchasing Services.
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JP Morgan Chase’s PaymentNet™
JP
Morgan Chase is pleased to offer the industry’s
most innovative Internet software. Developed internally
by a staff of experienced commercial card programmers,
PaymentNet™ was designed specifically for JP Morgan
Chase Commercial Card products as 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, AGENCY, ORGN, SUB-ORGN (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.
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Accessing JP Morgan
Chase’s PaymentNet™
Enter
the URL https://www.paymentnet.com/.
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Allowable Accounts, Posting and Default Advantage
Object/Sub-Object Codes
Allowable
Accounts
Each
Purchasing Card shall be assigned to a specific University
Financial System accounting string. The accounting string
consists of an Organization’s designated FUND,
AGENCY, ORGANIZATION, SUB-ORGANIZATION (if applicable),
and ACTIVITY. To view or determine your Organization’s
designated accounting string, visit the Advantage “ORGN”
table.
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Purchasing
Card Transactions, Posting to the University’s
Financial System
Purchasing
Card transactions shall post to the University’s
Financial System, General Ledger (G/L) by Fiscal Year,
FUND, AGENCY, ORGANIZATION, SUB-ORGANIZATION (if applicable),
ACTIVITY, OBJECT code and SUB-OBJECT code. Purchasing
Card transactions may be viewed in the University Financial
System, visit the Advantage “OLGL” table.
For details regarding a specific General Ledger posting,
contact Purchasing Services.
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Purchasing Card Default Advantage
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/Purchasing Card Travel
Transactions.
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Advantage (IX) Expense Transfer
Goods
and/or Services: All Purchasing Card transactions for
goods and/or services shall default and post to OBJECT/SUB-OBJECT
Code 7315-01. The Purchasing Card AGENCY/ORGN Fiscal
Liaison may redistribute these
expenses by completing the Advantage Expense Transfer
(IX) document in the University Financial System. The
Purchasing Card AGENCY/ORGN Fiscal Liaison shall use
OBJECT/SUB-OBJECT Code 7316-01 for processing “Purchasing
Card Expenses”.
Travel
Related Expenses: All Purchasing Card transactions for
travel related expenses shall default and post to OBJECT/SUB-OBJECT
Code 7615-01. The Purchasing Card AGENCY/ORGN Fiscal
Liaison shall redistribute all
travel related expenses to the appropriate OBJECT/SUB-OBJECT
code(s) by completing the Advantage Expense Transfer
(IX) document in the University Financial System. The
Purchasing Card AGENCY/ORGN Fiscal Liaison shall use
OBJECT/SUB-OBJECT Code 7616-01 for processing “Purchasing
Card Travel Expenses”.
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Travel
Purchasing
Card Approved Travel Related Items
Purchasing
Cards may 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).
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Roles and Responsibilities
Purchasing
Services shall be responsible for program development,
implementation, 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 and
payment of all Use Tax liabilities to the State of Arizona.
While
it is the respective Vice-President, Dean, Chair, or
Director who has the overall responsibility for ensuring
that the public interest is best served; the designated
Purchasing Card AGENCY/ORGN Fiscal Liaison shall be
responsible for monitoring the daily activity of the
Purchasing Card Program. For the purpose of this document,
the Purchasing Card AGENCY/ORGN Fiscal Liaison shall
be defined as the individual responsible for departmental
expenditures.
A
Cardholder shall be a University employee. Only the
named Cardholder shall use the Purchasing Card. Purchasing
Card transactions shall serve the public interest and
further the goals of the University. Purchasing Card
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.
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Last
revised: September 16, 2005
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