Marshall University

1. Marshall University Purchase Card Procedures

2. Purchase Card • The State of West Virginia Purchasing Card Program provides an opportunity for Marshall University to streamline business practices and minimize effort for transactions under $25,000.

3. Financial Institution Citi was awarded the bank provider contract in April 2006 and again in November 2010, with VISA as the card brand. As one of the world’s largest banks, Citi offers the State of West Virginia various software and reporting tools, but most notably is Citi’s Fraud Early Warning system. The system contains various fraud profiles and queues that transaction activity is measured against. Because of their experience and expertise in this market, Citi’s fraud rates are less than half of the industry average. In addition to the technological aspect of fraud detection, Citi focuses on five (5) main areas of detection and prevention: proper identification of service users, authorization, confidentiality of data, accountability, and incident detection and response. In addition to Citi, VISA offers the State $100,000 of coverage per cardholder for fraud and other transactions that do not benefit the State directly or indirectly.

4. Tax Exempt The "tax exempt" status must be recognized by any West Virginia vendor accepting the VISA card. • A letter was drafted on September 15, 2006 to address the issues created by the tax exempt Purchasing Card. This letter, co-signed by State Auditor Glen B. Gainer III, and Department of Revenue Acting Cabinet Secretary John C. Musgrave states, "The State of West Virginia recently initiated a new travel card program which is direct billed to the State. In accordance with West Virginia law, purchases made with this card are TAX EXEMPT. Any purchase made with the State’s Purchasing Card, including in-state travel, is exempt from any form of taxation."

5. Who can get a Purchase Card? Application Eligibility • Cardholder must be full-time Marshall University employee • Cards can not be issued to: • Temporary Employees • Contract Employees • Volunteer Employees • Applicant must have supervisor’s approval.

6. How do you apply and receive a Purchase Card? Step 1: Go to www.wvsao.gov select myApps and complete the “self sign up”. You will be asked a series of questions to verify your identity. Once you have completed your registration, email the Purchase Card Team so the purchase card training can be linked for you to access. Step 2: Complete the MU Confidential Cardholder Application http://muwww-new.marshall.edu/finance/files/2012/05/mupcard.pdf Forward to Melanie Gallaher (Purchase Card – 115 Old Main) and mark the envelope “Confidential”. Step 3: Once myApps setup is complete and the MU Confidential Cardholder application has been received and approved, you will receive an email to complete your online training.

7. How do you apply and receive a Purchase Card? Step 4: Under myApps, you will complete Cardholder Training and Quiz, Ethics Training and Quiz, review and electronically sign the Purchase Card Agreement Form. Step 5: Email The P-Card Team when you have completed the training and quizzes. Step 6: You will receive an email with the CITI Bank Application for the applicant’s signature. Please complete this and return to Melanie Gallaher (Purchase Card – 115 Old Main) marked “Confidential” so the process can be completed. Step 7: Once we receive your card, you will receive an email indicating that it is ready to be picked up. When you pick up your card, please make sure that you bring your MU ID with you. Note: This process not only involves staff at Marshall University, but also at the WV State Auditor’s Office and CITI Bank. Therefore, it may take up to 30 days for your card to be received.

8. Security of your Purchase Card • Your P-Card must be kept secure at all times. • Purchases should only be made on secure Internet sites with a closed lock at the bottom of the screen. • Cardholders must sign the back of their P-Card upon receipt. • Person whose name appears on the P-Card is responsible for all transactions appearing on statement. • Cardholder account numbers are NOT to be transmitted VIA unsecured Internet and/or Intranet sites. • Card delegation is strictly prohibited.

9. How do I use my Purchase Card? General Instructions: • P-Card is a method of payment. • All current Purchasing policies must be followed regardless of payment methods. • P-Card may be used to make payments for goods and designated services that do not exceed the cardholder’s transaction limit and are not prohibited by Purchase Card Policies and Procedures. • P-Card can be used for travel expenses (except food and fuel in personal vehicle) • P-Card is for official state use only. Transaction Limit: • All new cardholders will have a $1000 single transaction limit with a probation period of 6 months.

10. Ordering and Receipts • Orders can be placed within MyBuy – Marshall University’s Purchase Card market place • An itemized receipt is required for all transactions. • Receipt must contain specific information and meet certain conditions: • Legible • Itemized (reflecting the good or services purchased) • Contain the vendor name • Date of purchase • Price of items • A receipt description, which only states “Miscellaneous”, or “Merchandise”, or only includes a vendor’s stock or item number, is not acceptable • Receipt documentation may be paper or electronic Third Party vendors are restricted and can not be used when paying by P-Card.

11. PayPal Payments may be made through PayPal only upon prior approval from P-Card Office. Any transaction requiring payment through PayPal (no other form of payment accepted) must have PRIOR approval from the P-Card Coordinator.  If you find that a purchase requires the use of PayPal, you must get prior approval – Email the approval request to Melanie Gallaher and include the following information: • Vendor • Description of Purchase • Amount of Purchase • Include justification if the request is time sensitive and provide date

12. Hospitality • A hospitality form must be submitted with P-Card receipt. • Please provide a detailed justification for all hospitality. • Form is available online at http://www.marshall.edu/wpmu/purchasing/forms/ • A hospitality form is used to document expenses such as food, beverage, meeting room expenses and student events. **Note: You must use Sodexo Corporation for all on-campus events.

13. Business-Related Travel P-Card may be used for approved business expenses while engaged in job-related activities away from the regular place of employment. Travel expenses include, but are not limited to: • Registration fees • Airline tickets • Vehicle rental (commercial or state-owned) • Gasoline for rental vehicles only • Other transportation tickets (rail, bus, etc.) • Hotel folios including business-related costs, such as business Internet access

14. Business-Related Travel Travel expenses may not include: • Food • Any personal expenses on hotel folios, such as room service or movies. • Proper documentation must be provided for any billing related to multiple travelers. • Travel Authorization form must be attached to each Purchase Card transaction The P-Card Policies and Procedures do not supersede MU Board of Governors Policy and Marshall University Travel Procedures. Receipts required for business-related travel expenses paid using the P-Card shall remain consistent with MU Board of Governors Policy and Marshall University Travel Procedure.

15. Documentation and Reconciliation WVFIMS • New users will be set up with a user id and temporary password from the State • Software download and instructions can be found at www.marshall.edu/finance

16. Documentation and Reconciliation Documentation Must be submitted to the Agency Coordinator within 48 hours of posting to WVFIMS • Itemized receipts • Individual statements • Hospitality documentation • Travel Authorization Forms • Other required documentation by P-Card policies and procedures. Receiving Reports • If the processor is receiving the item, then the date entered in STARS will serve as the receiving report. • If someone other than the processor receives the item, then the person must sign and date the receipt. That date will then be entered into STARS.

17. Documentation and Reconciliation Statements: • Each cardholder will receive an individual statement from CITI Bank and Activity Log from P-Card office. • Reconciliation: • Each cardholder is responsible for reconciling his or her bank statement every month. • Upon completion of reconciliation, the cardholder and supervisor will review the transactions, sign the Activity Log and return to the Agency Coordinator for review (P-Card OM 115)

18. Purchase Card Maintenance An email request should be sent for all changes to an individual card. • Name changes • Employee name change must be complete in Payroll before any changes will be completed. • Department change • Monthly/ Transaction limit changes • Memo from supervisor with 3 specific examples to justification for increase. • Card cancellation

19. Purchase Card Maintenance Card Cancellation: • Cards must be cancelled immediately upon termination or separation of employment. Lost or stolen cards: • Immediately report lost or stolen cards to the agency coordinator and financial institution. • Call 1-800-248-4553 or 1-800-VISA911 • Cardholder must notify the financial institution within 24 hours to limit cardholder liability.

20. Disputes of Charges The cardholder is responsible for contacting the vendor regarding any erroneous charges, disputed transactions, duplicate charges or credits. Examples include, but are not limited to: • Failure to receive goods • Fraud and/or Misuse • Altered charges • Defective merchandise • Incorrect amounts • Duplicate charges • Credits not received (damaged or missing items, sales tax…) If the cardholder is unable to resolve disputed items with the vendor, please should notify the Agency Coordinator in writing to proceed with the official dispute.

21. Post-Audit Process • The P-Card office audits all transactions. • During the audit process, the following (at a minimum) will be checked: • Use of proper procedures • Stringing of orders • Proper account codes • Itemized paid receipts attached • Proper reconciliation into software (STARS) • Hospitality documentation • Travel Authorization documentation • Transaction ID# (S#) • Sales Tax Once an audit is complete, the cardholder will receive a notice of any discrepancies in their P-Card process and if any action is necessary by the cardholder. If the discrepancies are not cleared by the date required, the card will be inactive for a period of time indicated.

22. Fraudulent or Unauthorized Use of P-Card Misuse of a State of West Virginia Purchase Card is a felony. Fraud and misuse penalties are included in the WV Code §12-3-10b as follows: “It is unlawful for any person to use a State Purchase Card, issued in accordance with the provisions of section ten-a of this article, to make any purchase of goods or services in a manner which contrary to the provisions of section ten-a of this article or the rules promulgated pursuant to that section. Any person who violated the provisions of this section is guilty of a felony and upon conviction thereof, shall be confined in the penitentiary not less than one nor that five years, or fined no more than five thousand dollars, or both fined and imprisoned.”

23. Fraudulent or Unauthorized Use of the P-Card • Individuals using the P-Card to knowingly pay for items for personal use will be subject to disciplinary action, up to and including termination and prosecution by the state government, and subject to civil action by the credit card company for personal liability. • Misuse of the P-Card will be handled promptly and uniformly for all cardholders. • Any instances of misuse or violations of the P-Card Policies and Procedures is documented by the agency coordinator and self-reported to the WV State Auditor’s Office.

24. Purchase Card Delegation • P-card delegation is prohibited. • P-card delegation is allowing an individual other than the cardholder whose name is on the front of the card to make purchases by: • Having physical possession of the card. • Having access to the card number and expiration date. • Having access to receipts or invoices that display the card number and expiration date. • Only the individual whose name appears on the front of the card is the authorized user. • This increases liability, and the cardholder is liable for all activity on his or her card.

25. Stringing of Charges Stringing is prohibited. It is the intentional manipulation of the ordering, billing or payment process in order to circumvent the transaction limit. • This includes: • Splitting an invoice for more than the individual’s transaction limit into more that one transaction. • Collusion with vendor to split an order into separate invoices.

26. Restricted Purchases Here is a list of some restricted (prohibited) items: • Alcoholic Beverages • Building Leases • Cash Advances • Firearms • Insurance • Legal Services • Personal Charges • Travel related meals • Memberships • Flowers – for personal use (funerals, Administrative Professional’s Day, birthdays, retirement parties, etc.) • Gift certificates and gift cards • Deposits • Third Party Vendors • In-State Tax ** This is NOT an all-inclusive list. Questions? Emailpcard@marshall.edu

27. Purchase Card Forms and Contacts Finance www.marshall.edu/finance • Accounts Payable • Purchase Card • MyBuy • Travel Purchasing www.marshall.edu/purchasing WV State Auditors Office www.wvsao.gov Contact Melanie Gallaher P-Card Manager 304-696-2212 or 304-208-6205 (cell) Email pcard@marshall.edu