FILE:  DJEK-R

PURCHASING CARD PROGRAM RULES AND REGULATIONS

PURCHASING PROCESS
Making purchases for goods and services is easy with the purchasing card. 

1. Making a Purchase

1. Only the cardholder named on the purchasing card can authorize a purchase on their card.  The cardholder is responsible for all charges on their card.

2. The cardholder will present the card at the cash register, sign, and take the charge receipt and cash register tape for filing and leave with the purchases. 

3. The cardholder may also place an order over the telephone.  When a telephone order is placed, the cardholder should request a receipt from the vendor documenting the sale.  In many cases, a receipt is included with shipping documents for purchases made over the phone.  The receipt and shipping documents shall be submitted to the Business Office according to the “Cardholder Reconciliation Requirements” section below.

4. The cardholder may also place an order over the Internet.  When an online purchase is made, the cardholder should print out the invoice from the online vendor as verification of the purchase.  In many cases, a receipt is included with shipping documents for online purchases.  The receipt and shipping documents shall be submitted to the Business Office according to the “Cardholder Reconciliation Requirements” section below.

5. If the purchasing card is used to register for a workshop or conference, and the “credit card” information is entered on a registration form, a copy of the registration form showing the amount charged for the registration along with any registration confirmation shall be submitted to the Business Office according to the “Cardholder Reconciliation Requirements” section below.

6. The employee must submit a travel expense report to the Business Office for settlement within ten (10) working days after the trip is completed.

7. When the merchant/vendor processes a purchasing card sale, the merchant/vendor authorizes the transaction by swiping the card or calling in the sale.  The authorization process sends a request to the Bank’s credit card processor to approve the amount, the type of merchant used (merchant code), and the number of transactions for that month and day.  Transactions are approved within seconds.  The merchant then deposits the transaction receipts with the merchant bank, and the charge is secured on the purchasing card by the authorization process.  Once the merchant sends transactions to the bank, the data is uploaded to the Bank’s credit card processor. Every day, the processor formats purchase card account transactions and posts them to the District’s company data in Smart Data.

8. Cardholders shall keep all receipts/invoices and any related shipping documents in a safe place for submission to the Business Office as part of the monthly reconciliation process outlined in the “Cardholder Reconciliation Requirements” section below.

9. The school district is exempt from paying sales tax on purchases made for goods and services.  Each card has the federal identification number of the school district imprinted on it, located just below the name of the cardholder.  Most vendors accept this number as the “tax exempt number” when purchasing transactions are made.  Occasionally, vendors or merchants may request that a sales tax exemption certificate be provided before they remove the sales tax from a transaction.  Please contact the Purchasing Agent in the Business Office at 269-605-1095 to obtain a sales tax exemption certificate.

10. A purchasing card may be declined at the point of sale.  Purchasing cards can be declined for many reasons, as follows:

• Transaction amount exceeds a single purchase limit

• Transaction amount exceeds the maximum billing cycle limit, when added with other transactions in the billing cycle.

• Transaction is attempted at a merchant with an unauthorized merchant code (MCC)

• Transaction exceeds the maximum number of daily transactions

• Transaction exceeds the maximum number of billing cycle transactions

 

If a transaction is declined at the point of sale, the cardholder must cancel the transaction and contact the program administrator at 269-605-1075 as soon as possible to determine the cause of the declined transaction.  Adjustments may be necessary to the cardholder’s account (i.e. adding merchant codes, increasing transaction amounts, etc.), depending on the reason for the declined transaction.

2. Shipping and Receiving Information

The cardholder must provide the vendor/merchant with appropriate shipping information or a delay in the delivery of the shipment may occur.  All goods must be shipped to a Benton Harbor Area Schools District address.  All shipping documents received from vendors/merchants must be submitted with the credit card receipt/invoice to the Business Office, as described in the “Cardholder Recordkeeping Requirements” section below.                                                                                        

3. Incorrect Shipments or Returns

If a shipment is incorrect, or if there are product quality or service issues, the cardholder should contact the vendor/merchant to arrange for a return, exchange, or credit.  If the vendor agrees to issue a credit, the cardholder must get a receipt noting the credit from the vendor/merchant, and the

cardholder shall verify that the credit is properly reflected in the next monthly reconciliation statement.

It is the cardholder’s responsibility to know and adhere to the vendor/merchant’s return policy.

CARDHOLDER RECORDKEEPING REQUIREMENTS
Cardholders must keep all original sales documents (receipts, packing slips, cash register tape, credit card slips) from purchases made on their bank purchasing card.  These documents will be required to be submitted to the Business Office with the cardholder’s monthly Expense Report printed from the Smart Data Online application, as described in this section.

Each cardholder will be required to login to the Smart Data Online application via Internet connection and review all transactions for the billing period.  The review process includes providing an expense description, checking whether or not sales documents (receipts, credit card slips, etc.) are attached, and assigning a school district accounting code to each transaction.

Once the review process has been completed, each cardholder shall print a monthly Expense Report, sign and date the report, and attach all original sales documents.  The Expense Report packet will then be sent to the Business Office for review by the 10th of the month.

Purchases made on the purchasing card will be entered into the school district’s accounting system in a batch form, based on the accounting codes provided by cardholders in Smart Data Online.

Please refer to the Account Reconciliation procedures for step-by-step instructions on the monthly account review and reporting process.                                                                                                              

DISCREPANCIES OR UNAUTHORIZED ACCOUNT USAGE
If there are any discrepancies on the cardholder’s monthly reconciliation statement, contact the vendor immediately to try to resolve the issue(s) in question. 

If the discrepancies cannot be resolved with the vendor, please contact the Purchasing Agent in the Business Office at 269-605-1095.

                                                                                                           

The cardholder is responsible for keeping track of how the card is used and for its safekeeping.  Just like any credit card, the cardholder should protect against fraudulent use of the Card. Examples of discrepancies include incorrect transaction amounts, unauthorized purchases that show up on the monthly reconciliation statement that were not made by the cardholder.                                                                                                                  

CARD DEACTIVATION
Upon transfer or termination of employment of a cardholder, the purchasing card must be turned in to the cardholder’s Supervisor/Principal and forwarded to the Assistant Superintendent of Business & Finance in the Business Office, as part of the exit interview process.  The purchasing card will be deactivated immediately.

Whenever a purchasing card is misused or these policies and procedures are violated, appropriate disciplinary action will be determined by the Assistant Superintendent for Human Resources & Labor Relations.

REPORTING LOST, STOLEN, OR DAMAGED CARDS
If a purchasing card is lost or stolen, the cardholder must immediately inform the Assistant Superintendent of Business & Finance in the Business Office immediately at 269-605-1075.  The purchasing card will be immediately deactivated and an acknowledgement will be sent to the cardholder and school district informing them of this action. 

If a card becomes damaged and needs to be replaced, the cardholder must make a written request for a new card to the Assistant Superintendent of Business & Finance in the Business Office.  The damaged card must be turned into the Business Office, and a replacement card will be requested from bank.  The cardholder will be asked to complete a new Cardholder Agreement when a new card is issued.  The cardholder will be responsible for review and reconciliation of transactions made on the account associated with the deactivated purchasing card as well as that of the new purchasing card.

 

OTHER INFORMATION
Policies and procedures related to the bank purchasing card program will be updated periodically.  Cardholders will be provided with updates, as they become available.

Any questions not specifically addressed in these guidelines can be directed to the school district program administrator, the Assistant Superintendent of Business & Finance in the Business Office at 269-605-1075.

The Benton Harbor Area Schools, Berrien County, Michigan