ProCard Policies and Procedures

What is a ProCard?

The Procurement Credit Card (ProCard) is a tool for faculty, staff, and departments to make purchases of goods or services on behalf of the University for which Cal Poly is financially liable. Procurement Services is the only department on campus that was delegated the authority from the Chancellor’s Office to procure goods and services on behalf of Cal Poly. In turn, this authority is delegated to various departments, faculty, and staff within specified spending limits. This delegation of authority comes with the responsibility for departments to observe all University policies and procedures related to purchases, and to observe all laws and regulations (state and federal) that apply to the commercial transactions placed via a ProCard.

ProCard is designed specifically for low value and low volume purchases in order to achieve cost savings and improve processing time. A ProCard is a privilege that can be revoked in cases of non-compliance to established policies and procedures.

Types of ProCards

There are two types of ProCard: an Individual ProCard and a Department Card issued to a department and assigned to a Card Administrator. The policies and procedures are the same for both types of ProCards, unless specifically noted.

Purchases that Require Additional Documentation and/or Preapproval

1. Furniture.
   See Request Waiver
2. Hospitality expenses.
   A Hospitality Justification Form must be filled out to justify any hospitality expenses and included with the monthly statement submitted to Payment Services. All charges are subject to the Hospitality Policy.
3. Gift Cards.
   Gift cards or gift certificates for general merchandise are considered cash equivalents regardless of dollar amount or funding source and may be reportable and taxable, therefore a Gift Card Request Form must be filled out and submitted to the ProCard Administrator.
4. Software.
   A Software Waiver Form must be filled out and sent to your department’s Procurement Specialist for review and approval prior to the purchase. If approved, a waiver will be issued.
5. Emergency Purchases that exceed established spending limits or are outside of the ProCard Policy. An emergency is defined as when condition exists involving public health, welfare or safety. Failure to allow adequate lead times does not constitute an emergency. Your Procurement Specialist needs to be contacted prior to the purchase to investigate the possibility of waiving the established controls and limits. If approved, a waiver will be issued.
6. Hazardous Materials.
   Hazardous materials may include hazardous chemicals, compressed gases, radioactive materials, biological organisms, and controlled substances and precursor chemicals, as defined by federal, state, and local regulations and University policies. The cardholder or Department Card Administrator are responsible to receive approval from their Department Chair, Director, Administrator, or designated safety coordinator, who is responsible to for authorizing the purchase of hazardous materials for use in their department.
   
   The Department Chair, Director, Administrator, or designated safety coordinator shall ensure all hazardous material purchases are included in their department’s hazardous materials inventory, and they shall send the updated inventory to the Environmental, Health and Safety Department at: environmental-health-safety@calpoly.edu. The cardholder or Department Card Administrator are responsible to do the due diligence in investigating whether the materials purchased are hazardous. Contact Environmental Health & Safety at 6- 6665 for assistance.

Responsibilities of the Cardholder are as follows

1. Completing mandatory training (or retraining, if deemed necessary by the ProCard Program Administrator) and signing Cardholder’s Agreement before ProCard is issued.
2. Registering the card on the US Bank website and closely monitoring spending limits, transactions and balance.
3. Security of the ProCard. If kept in a personal office, it should be kept out of sight, and preferably some place that can be locked when not in use.
4. Appropriate use and compliance with Cal Poly ProCard Policy and Procedures
5. Collection of all required documentation of purchases. See section VI: Procedures: Documentation of Purchases.
6. Timely preparation of the monthly statement and submitting it with signature to Payment Services. Please refer to the ProCard Calendar on our website for the statement due dates.
7. Making necessary arrangements prior to any absences to ensure the statements are still reconciled on time regardless of the cardholder’s personal schedule or sick leave.
8. Filling out a ProCard Revision Form if changes need to be made to the cardholder’s information originally provided in the Application form.
9. Reporting fraud to the US Bank and disputing charges.

Responsibilities of the Department Card Administrator

1. All individual ProCard holder responsibilities (listed above) apply to Department Card Administrators.
2. Ensuring all persons using the Department Card have read and agree with the ProCard Policy and Procedures.
3. Ensuring all persons using the Department Card make and document purchases, handle the card in compliance with the ProCard Policy.
4. Keeping record of employees who use the ProCard. This list should be made available to Procurement Services and Payment Services staff upon demand.

Any staff or faculty involved with the preparation of procurement card reconciliations should be familiar with the ProCard and procurement policies and can request training from the ProCard Program Administrator at any time.

Responsibilities of the Approving Official

1. Completing and acknowledging required ProCard Approving Official Training.
2. Reviewing all transactions and certifying they are all appropriate bona fide business expenses and are made in accordance with the policy.
3. Ensuring adequate transaction documentation exists as is established by the ProCard Policy and Procedures (such as hospitality forms and waivers when appropriate).
4. Identifying possible infractions of assigned cardholder(s) and taking appropriate action if infractions are found. In cases of infractions, the ProCard Program Administrator has to be notified.
5. Notifying the ProCard Program Administrator when their assigned employee no longer has a ProCard, has left the University or changed departments.
6. Signing and dating the monthly statement prepared by the cardholder.
7. Delegation of authority is put in writing prior to any absences in order to ensure the ProCard reconciliation and approval process takes place regardless of the Approving Official’s personal schedule or sick leave. Cardholders must attach the written delegation of authority to their statements, if another Approving Official is temporarily approving their ProCard purchases.
8. Ensuring the ProCard has not been used for prohibited purchases.
9. The charges as shown on the PeopleSoft Financials statement have the correct chart of accounts, all receipts and supporting documentation are attached to the statements.
Approving Officials may be required to retrain, and/or the cards of their subordinates blocked if the established policies and procedures are not followed.

Documentation of Purchases

Documentation of purchases is required regardless of whether the purchases were made in person, over the phone, online or by any other means. The cardholder must have an itemized receipt, which consists of the following:

1. Description of commodities purchased
2. Name of vendor
3. Quantity purchased
4. Price per item
5. Amount of sales tax
6. Shipping charges, if applicable
7. Total amount

All purchases require a business justification, while certain purchases require preapproval, and/or issuance of a waiver. Add this type of information in the free text field on the satement next to each transaction. All hospitality charges require a Hospitality Justification Form to be filled out. All additional documentation must be attached to the monthly statements and submitted to Payments Services at sbs-payment@calpoly.edu before the submission due date. For the list of purchases requiring additional documentation refer to Section III: Uses of the ProCard: Purchases requiring additional documentation and/or Preapproval.

If receipts are lost, and duplicate copies cannot be obtained from the vendor, the cardholder is responsible for filling out a Lost Receipt Form for the transactions missing documentation.

Monthly Reconciliation Process in PeopleSoft

The billing cycle closes on the 15th of the month. The following day, unless it falls on the weekend, ProCard transactions will be loaded into PeopleSoft Financials – CSU ProCard Module.

A reminder will be sent via email to reconcile your statement. Cardholders have 10-12 calendar days to complete the monthly reconciliation process in PeopleSoft Financials. For submission dates refer to the ProCard Calendar. After the due date, no changes can be made to a statement, and the chart field cannot be updated. Past statements can be reviewed in PeopleSoft Financials Completed Inquiry.

Missing statements (not turned in on time) will result in immediate card suspension.

Note: The cardholders should make arrangements for someone in their department to complete the reconciliation process if the cardholder is out of the office during the reconciliation period. The Approving Official should provide written delegation of authority to sign on their behalf during their absence. This delegation letter must be included with your monthly statement.

HOW TO RECONCILE YOUR PROCARD STATEMENT

1. Go to the Cal Poly Portal. On the Single Click Links column, click on CSU Portal – Financial Administration.
   
2. Go to the Navigator.
   
3. Select CSU ProCard – Use and Inquiry – ProCard Adjustment.
   
4. Enter last name and select Search.
   
5. Select your Reconciliation.
   
6. Click View All. Provide a description of the purchase in the description field for each transaction. Substantiate descriptions with how this purchase pertains to University business (justification). If the purchase requires a waiver, insert the waiver number into the description field of the transaction. Save. Make sure the vendor’s name and dollar amount for each transaction is correct. If the default chart fields need adjustment, make the necessary changes. If charges are to be split by multiple chart fields, click “+” sign to add line and insert the additional chart field combination Save.
   
   
7. After all edits have been made, and the changes saved, click on the Printer icon. Then, click Process Monitor.
   
8. Click on the grey Refresh button multiple times, until you see Success and Posted displayed on the right hand side of processes. Then click Details.
   
   
9. Click View Log/Trace.
   
10. Sign statement, attach receipts and other back up documents in order of transaction listed on the statement, and have the proper Approving Official sign the statement. If multiple chartfield strings, make sure the Approving Official for that chartfield string also signs.
    
11. Send the signed ProCard Statement along with all itemized receipts and all additional supporting documentation to Payment Services no later than the end of business of the due date listed on the ProCard Calendar.
    
12. Statements (legible) should be emailed to Payment Services at sbs-payment@calpoly.edu. If a legible copy is not provided it may be considered a missing statement and the card may be suspended.
    

Registering Your Card on US Bank Website

Becoming a registered user on the US Bank website will allow you to:

• View your previous and pending transactions
• View the monthly credit limit
• View your available credit and account balance
• View your statements
• Dispute charges

If you need help navigating the US Bank website or you forgot your user ID or password, call Access Online Support line (877) 887-9260.

HOW TO REGISTER YOUR CARD WITH US BANK:

1. Go to access.usbank.com and click on the “Register Online” link.
   
2. In “Organization Short Name” field enter CSUCA.
3. In “Account Number” field enter 16 digit credit card number. Indicate month and year of expiration.
4. Click on “Register This Account”.
   
5. Scroll down. Click on “I Accept”.
   
6. Complete all the fields with the asterisk symbol “*”. Click Continue.
   

ProCard Infractions and Correction Procedures

• Unauthorized transactions on any Cal Poly credit card may be deemed a infraction
• In addition to reimbursing the University, a written warning will be issued for infraction
• Continual infraction of any part of the policy shall result in the revocation of credit card privileges, and card cancellation

Any misuse of the ProCard as outlined in this ProCard Policy and Procedures, or failure to follow the established protocol, including tardy submission of documentation of purchases is considered an infraction.

A written warning will be issued for any infractions. Departments are encouraged to develop internal policies and protocol to ensure infractions do not occur.

ProCard Infractions include, but not limited to:

1. Missing Statements (card may be suspended immediately)
2. Agreements
3. Cellular service
4. Conflict of Interest
5. Drones
6. Fines and Late Fees
7. Firearms
8. Fuel
9. Incorrect Approving Official without delegation of authority
10. Missing Cashier's Reciept - proof paid back University
11. Missing Description and/or Justificaiton
12. Missing Furniture Waiver (approved CSUBUY requisition number)
13. Missing Hospitality Form
14. Missing List of Attendees
15. Missing Receipts for Purchase or Credit
16. Missing Signatures
17. Missing Software Waiver (approved CSUBUY requisition number)
18. Non-itemized Receipts
19. No Pre-Approval for Gift Cards
20. Peer-to-Peer Payment Systems - Paypal, Venmo, Apple Pay, etc.
21. Personal Memberships - Amazon Prime, Costco, and the like
22. Personal Purchases
23. Physical Assets valued $5K+ (or approved single purchase limit)
24. Reciepts and back up not in order
25. Sensitive Items (desirable, high theft)
26. Services/ labor on campus
27. Shipping Items Off-Campus
28. Split transactions
29. Travel
30. Unauthorized Transactions
31. Unauthorized User
32. Vehicles

Corrective Actions for:

• Missing Statements: Immediate card suspension
• First Warning - Infractions: Email to cardholder and Approving Official with 1 week to remedy the Infraction.
• Second Warning - Infractions: Email to cardholder and Approving Official. Warning of card suspension.
• Third Warning - Infractions: Email to cardholder, Approving Official, and VP or Dean. Card suspension for at least 1 billing cycle and retraining required.

Reporting Fraud and Disputing Charges

FRAUD

If there are fraudulent charges on your ProCard, call the Fraud Prevention line at US Bank (800) 523-9078. Be ready to verify your identity. Cardholder may be asked a security question selected upon registration or to verify the following information:

• Cardholder’s address (answer: 1 Grand Ave, San Luis Obispo, 93407)
• Cardholder’s phone number (answer: cardholder’s office phone number)
• Cardholder’s social security number (answer: 999-999-9999)
• Cardholder’s credit limit (answer: monthly credit limit on the card)

A new card will be issued. Replacement cards will be mailed to Procurement Services office. The ProCard Program Administrator will notify the cardholder when card is ready to be picked up.

If a charge is fraudulent, please write “Fraud” in the description field for the appropriate charge the month statement in PeopleSoft.

DISPUTING A CHARGE

Cardholders and Department Card Administrators are responsible for contacting the US Bank Customer Service about questionable or disputed items, which appear as a transaction on the bank statement within 60 days after the date of the bank statement

If an item is billed incorrectly, please write “Disputed” in the description field for the appropriate charge the month statement in PeopleSoft.

If items purchased with the ProCard are received defective, it is cardholder responsibility to return the item(s) to the merchant for replacement or to receive a credit on the purchase. If the merchant refuses to replace the defective item, then the purchase of this item will be considered “disputed” and US Bank must be notified. Cardholder will be asked to complete the Dispute Form. Once the dispute has been resolved, US Bank will notify the cardholder.

Lost or Stolen Cards

Report a lost or stolen ProCard immediately by contacting customer service at the US Bank at 1-800-344-5696 and notify the ProCard Program Administrator.

When a card is reported lost or stolen, a new card will be issued. Replacement cards will be mailed to Procurement Services. The ProCard Program Administrator will notify the cardholder when a replacement card is ready to be picked up.

Revising Card Account Information

If any of the information provided in the Application Form changes, the Revision Request Form must be filled out and sent to the ProCard Program Administrator.

Terminating ProCard Account

If a cardholder leaves the University, or wishes to terminate his/her ProCard account their ProCard must be returned to Procurement Services, or safely shredded, and the ProCard Program Administrator notified.