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Procurement Card Manual
Massachusetts College of Art and Design
Procurement Card Procedures Manual
September 2014
1.
Introduction
Welcome to the Massachusetts College of Art and Design’s Procurement
Card Program (MassArt Procard). The MassArt procard is a procurement
and pyment tool, which offers an alternative to the existing college
procurement/payment process. The procard provides an efficient and
effective method of purchasing and paying for commodities and other
departmental related expenditures. Please note however that existing
purchasing policies must still be followed. The card is a MasterCard credit
card, backed by JP Morgan Chase.
This procedures manual outlines the benefits of the procurement card
program to you (the cardholder) as well as to your department and the
college. This manual also provides the cardholder with the information that
you will need to use the card. The procard concept is designed to delegate
authority and responsibility, to enable the cardholder to quickly and
conveniently make incidental dollar amount purchases of approved
commodities directly from the merchants that accept the MasterCard. This
program is designed to meet your needs and those of the college.
2.
Benefits
The benefits to the cardholder and MassArt are significant:
Benefits to the cardholder include:
 Decreases the need for purchase requisitions, purchase orders and
blanket purchase orders.
 Allows the cardholder to obtain small dollar amount purchases of
commodities much faster and easier than with the traditional
purchase/payment methods.
 Allows the cardholder to be more efficient, thereby enabling you to
better focus on the value added aspects of you job.
Benefits to the Administration and Finance Division include:
 Enables the Purchasing and Accounts Payable departments to allocate
more time to value added services than small dollar purchases.
 Dramatically reduces the number of purchase requisitions/orders,
accounts payable vouchers and checks.
 Saves costs associated with mailing purchase orders and payments.
 Reduces the number of vendors in the college vendor files as well as
the W-9 forms required to add a new vendor.
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3.
No Personal Purchases
The procard is to be used for purchases related to college business only. Use
of the card for personal items is strictly prohibited. Contact the procard
administrator immediately if the card is used in error for whatever reason.
4.
Authorization Process/Procard Limits
There are authorization criteria built into the procurement card that are
checked by the MasterCard system when a merchant charges the card at the
point of sale. These authorization criteria are primarily the following default
limits:
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single transaction limit
monthly limit
(Preset at $500)
(Preset at $2,000)
All transactions are approved or declined instantaneously at the point of
sale.
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Splitting orders to circumvent the above single transaction limit is a
violation of procard policy.
Limit Modifications
In certain situations where the need could arise, the cardholder may request
an increase to the program preset limits stated above.
To request an increase to the single transaction limit or the monthly limit,
the cardholder is required to forward an email request to the procurement
card administrator. The email request must include, at a minimum, the
following:
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Justification for the request (e.g. what is being purchased)
Amount of both the requested single transaction limit and the total
monthly limit for the appropriate month(s).
If the cardholder is not the trust fund custodian, the trust fund custodian
must be carbon copied on the email request.
The procard administrator reviews the request. The cardholder making the
request will be contacted by the procard administrator to inform the
cardholder that the limit(s) has been increased or to inform the cardholder
that the request was not approved.
All requests in the amount of $5,000 or more must also receive the approval
of the Executive Vice President of Administration and Finance.
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5.
Restricted Commodities
By accepting the responsibilities of a MassArt procurement cardholder, there
is certainly a level of professional judgment that must be exercised. While
every restricted purchase can not be covered in a written list, the procard
can not be used to purchase the following:
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Alcoholic beverages or tobacco
Fenway Cash, Paper Cut, gift cards, gift certificates or cash advances
Personal memberships (e.g. BJ’s, Costco, ZipCar, Amazon Prime, etc.)
Scholarship or award related purchases
Computers, printers or software
Cellular phones
Furniture
Household appliances
Contract agreements that require a signature
Construction and renovations
Consultant services of any type
Insurance
Prescription drugs
Professional development purchases from restricted funds
Hazardous materials or disposal of such
Reimbursements of any type
Stamps or payment of other mail services
Equipment with a cost greater than $500
Facilities Department Requirement – All equipment that will need to be
installed and connected, either by wiring, plumbing, or construction needs to
be approved by the Facilities Department prior to the purchase.
6.
Using the Procard for Travel
If the cardholder is authorized to use the card for travel, all of the policies
and procedures in MassArt’s Guide for Travel Related Expenditures must be
adhered to. Specifically,
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The approved Request for Travel Form must be on file in the Business
Office before any travel related expenses are charged to the procard.
Meal allowances can not be exceeded.
Original itemized receipts must be turned in with month end
documentation (e.g. itemized hotel bill, not a summary statement).
Personal charges at hotels such as movies and phone calls must be
settled with personal funds.
Expenses for family member can not be charged to the MassArt
procard.
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If you are authorized to use the procard for international travel, it is
recommended that the bank be contacted and informed of your itinerary.
Travel should be conducted in a cost efficient manner that is both
comfortable and safe. Where it is appropriate and available, discount rates
should be taken advantage of such as flying coach, discount hotels, etc.
7.
Student Related Travel
If the procard is used for student related travel, the month end
documentation submitted with the hard copy statement must include the
approved Authorization for Travel form with a list of participants. These
student related travel expenses include admission fees, event registrations,
hotel charges, transportation expenses, etc.
8.
Contract Compliance
While the procard is a procurement tool, it does not signal a change in policy
regarding compliance with the college contract suppliers. If the needed item
is available on an established Commonwealth of Massachusetts Operation
Services Division, Massachusetts Higher Education Consortium (MHEC), or
other purchasing group contracts, the purchase should be made from the
contracted vendor.
Contact MassArt’s Purchasing Department, or visit the Purchasing intranet
site for further guidance.
9.
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If the MassArt Supply and Bookstore carries the commodities being
purchased, the Bookstore should be the merchant who provides the
items.
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For on-campus catering, MassArt’s contracted food service provider
must be the company to provide the service. Chartwell’s has the
“…exclusive right of first refusal on all college catering. Chartwells
and MassArt may orally agree upon exceptions to this rule, provided
any exception shall require approval by both parties”.
Restaurant/Food Purchases
For cardholders authorized to use the procard in restaurants or other event
food purchases, the Massachusetts Board of Higher Education Standards for
the Expenditure of Trust Funds states the following must be included in the
expense documentation:
“description of meal (lunch, dinner, etc.); name(s), company(s), affiliation(s)
and business relationship(s) of person(s) in attendance; business purpose and
benefit to the institution for incurring the expenses.”
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MassArt’s Restaurant/Food Service documentation form must be submitted
for all restaurant/food service purchases. This form is available on the
Purchasing Department intranet site.
10.
How to Activate Your Procard
The cardholder must telephone MasterCard to activate the procard before
use. The number is listed on the card and MasterCard will verify your
identity, to ensure that you are indeed the legitimate cardholder.
11.
How to Order
The procard may be used to purchase commodities in person at the merchant
site, over the telephone, over the internet or by mail. Prior to placing the
order, check to see if the item(s) is available from a contracted vendor.
Be sure to provide the merchant with the following information:
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Identify yourself as a MassArt employee.
State the appropriate contract that the purchase is being made
against (State, MHEC, other), if applicable, to ensure that you receive
contract pricing.
State that the college is tax exempt and provide MassArt’s tax exempt
number which is listed on the front of the card (000-015-938). A copy
of MassArt tax exempt certificate (ST-2) is available on the intranet
site.
Provide you procurement card number and expiration date.
State the quantities and description of the item(s).
Inform merchant freight, if applicable, must be prepaid.
Verify total cost of the purchase with merchant.
If a transaction is charged sales tax, it is the responsibility of the cardholder
to follow up with the merchant to request that the sales tax charge be
reversed.
12.
Shipping Instructions
The shipper/receiver at MassArt will not know who the delivery is for if the
label/packing list does not provide detailed information on the person
ordering and department. There is no referenced purchase order to look up.
Inform the merchant that the package(s) must contain following information:
Massachusetts College of Art and Design
621 Huntington Ave
Tetlow Street Receiving Platform
Boston, MA 02115
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C/O
Cardholder’s Name
Cardholder’s Department
Building and Room Number
13.
Cardholder Responsibility for Account Activity
The cardholder is responsible for ensuring receipt of goods and follow-up
with the merchant to resolve any delivery issues, pricing and item
discrepancies or damaged good situations. Upon receipt of the item(s), keep
all documentation received from the merchant (typically a packing slip and
invoice) for later reconciliation.
When items need to be returned to the merchant, item(s) should be returned
by whichever means the merchant requires. The cardholder is responsible
for ensuring that the proper credit amount is applied to the account for any
returned item(s) and that the documentation of the return is maintained.
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For charges to be credited, budgets will be charged for the initial
transaction and the following credit will zero out the original charge.
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If a transaction is charged sales tax, it is the responsibility of the
cardholder to follow up with the merchant to request that the sales tax
charge be reversed.
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If all efforts to resolve a discrepancy with a merchant fail, there is a
Dispute Resolution Form available to be completed and filed with the
bank. The bank will review the situation, and credit the cardholder
account if warranted. See the procard administrator for guidance.
While administrative staff is available to assist with discrepancies,
cardholders are responsible for all activity/charges on their procards.
14.
Budget Information
Knowledge of appropriate departmental budget codes is a prerequisite to
obtaining a procard.
The cardholder has the responsibility of designating this information online
each month for every transaction. An example of the department budget
information that must be completed online is:
21CST51005EEE01
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The budget information is actually a general ledger number for the college’s
accounting system. In the example above, the Budget Information
components represent the following:
21
CST
1000
5
EEE01
Fund – 21 is operating budget, 26 is Student Govt., 31 is PCE
Account – CST is operating budget, SGA is Student Govt.
Dept – 1000 is President’s Office, 2000 is Student Development
GL Class – 5 is expense
Expense Code – EEE01 is office supplies
The Purchasing Department has issued A Quick Reference Guide to Finding
Commonly Used Expense Codes to assist with the last component of budget
information. The guide is available in hard copy form in the Purchasing office
and is also available online on the Purchasing intranet site.
Cardholders may only assign budget information for departments that they
are the trust fund custodian or have been delegated authority to spend from
that departmental budget.
15.
Monthly Statement Supporting Documentation
 Hard copy statement and supporting documentation/receipts must be
submitted to the Business Office by the 15th business day of the month
Supporting documentation must be all original receipts/relevant paperwork
and include the company name, purchase date, line item prices and the total
price, including shipping charges. The bottom line amount needs to match
the amount being charged on the statement.
The following are examples of supporting documentation:
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Itemized invoices and cash register receipts.
Itemized packing slips that include pricing information.
Itemized copies of merchant order forms and applications.
When the purchase is made:
In Person – The cardholders will retain the invoice and customer copy of the
charge receipt. Prior to signing this slip, the cardholder is responsible for
making sure that the merchant lists the quantity and fully describes the
item(s) on the charge slip.
Over the Phone – The cardholder should obtain the name of the individual
taking the order and request that a receipt be sent to the cardholder’s
attention. When goods are received as a result of placing the telephone
order, all shipping documentation should be retained.
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Via the Internet – The cardholder should print all the relevant information
from the merchant site as available; especially the final screen at checkout
which documents itemized pricing and payment by credit card.
A procurement card log is recommended to assist cardholders track activity,
including pending activity for orders that have been placed but charges have
not hit account.
If the cardholder does not have documentation for a transaction listed on the
monthly statement, he/she must complete the MassArt Missing Receipt Form
that includes a description of the item(s) purchased, date of purchase,
merchant name and reason for the lack of supporting documentation.
16.
College Billing
JP Morgan Chase issues a central account invoice to the procard
administrator for all cardholders at the end of each billing cycle. One central
payment is made for all card holders. Departmental budgets are charged for
individual cardholder purchases via the online coding.
17.
Procurement Card Security
It is the cardholder’s responsibility to safeguard the procard and account
number to the same degree that a cardholder safeguards their personal
credit card.
Only the cardholder is authorized to use their procard. The cardholder is
responsible for all activity against the card and may not share their procard
with anyone. The cardholder must not allow any unauthorized individuals to
use the procard or the account number. A violation of this may result in the
cardholder having his/her card withdrawn and/or disciplinary action for the
cardholder and/or the unauthorized individual.
If the procard is lost or stolen, the cardholder must immediately notify the
bank by calling 1-800-270-7760. Representatives are available 24 hours a
day. The cardholder must also notify the MassArt procard administrator.
A new procard will be promptly issued to the cardholder after the reported
loss or theft.
18.
Cardholder Separation from the College
Should a cardholder terminate employment with the college, the cardholder
has the specific obligation to notify the procard administrator of the
separation, and forward the card to the procard administrator after cutting it
in half. Verification of receipt can be provided if requested.
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19.
Post Audit/Oversight
It is the responsibility of college administrators to monitor procard usage to
insure that cardholders are in compliance with the policies and procedures of
the college outlined in this manual as well as other college policies.
Non-compliance with policies may result in a reduction of cardholder limits or
cancellation of the procard. Examples of non-compliance include:
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Use of procard for purchase of restricted commodities.
Use of procard for purchases of items that are available on State,
MHEC or other contracts from a vendor other than contracted
vendors.
Use of the procard by an unauthorized individual.
Use of the procard in excess of available departmental budgets.
Failure to comply with the procedures outlined in this Procurement
Card Procedures Manual.
In extreme cases (instances where it is proven that fraud has occurred, or
that the cardholder has used the card for personal purchases that do not
benefit the college) disciplinary action, and possibly legal action, up to and
including termination of employment and the repayment to the college of any
improper charges, may be required.
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Instructions on How to Use Smart Data Online
(SDOL) and Code Transactions Online
 Transactions must be coded online by the 1st business day of the month
I.
Setting Up Your SmartData Online Account
a. Go to the Smart Data Website
https://sdg2.mastercard.com/sdng/login/login.do
b. On the Login Screen – Go to “Cardholders Self Registration under the
SIGN IN button.
c. On the next screen – Account Number is your “16 digit p-card account
number”. Company Registration Code is “20142014”
d. You will then be taken to an account setup screen with additional
instructions.
e. Create answers to four different security and challenge questions.
REMEMBER THESE ANSWERS! THEY WILL BE USED EVERY TIME YOU
LOG IN!
Monthly Coding of Transactions Online
All transactions must be coded with budget information by the first business
day of each month. It is recommended that the review and designation of
budget information online take place throughout the month as expenses are
incurred. Timely updates will provide fund custodians and administrators
with the most accurate current balance information.
How to code transactions online:
a. Go to the SmartData website:
https://sdg2.mastercard.com/sdng/login/login.do
b. Enter your user ID and password in the appropriate fields and click login
c. Enter your answer to one of three pre-arranged challenge questions
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d. This will bring you to the Home Screen
e. Click on the red tab labeled “Account Activity” near the top of the screen,
and select transaction summary from the drop down menu.
f. Select the time frame for which you wish to view transactions, and click
“search”. In general, it will be most useful to select “reporting cycle” and
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the month of activity that you wish to code.
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g. The next screen will be a list of all your transactions for the date range
next to the transaction you wish to
specified. Click on the expand Icon
code.
h. In the expanded window, click “edit accounting codes”
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i. Enter the appropriate accounting and expense code for the transaction.
i. As you type, a list of eligible accounting codes will appear in a dropdown list. You may either type the full account number, or select
the correct account from the list. When the codes are correctly
entered, click “save accounting codes”. If you wish to make a
notation about the transaction, type any comments in the “Expense
Description” field before saving.
ii. If the appropriate accounting code is unavailable, contact the
p-card administrator.
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j. When you are sure that everything is correct, check the transaction
“reviewed” box and click save in the upper right corner.
i. This locks the transaction and prevents further modification. If a
transaction is locked in error, contact the p-card administrator.
Once a transaction is locked, the information can be uploaded to
the accounting system during the next upload.
ii. After the transaction is reviewed, the checkbox will be replaced
with a lock icon.
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