Procurement & Travel Credit Card Training Marlena Sanders, Credit Card

Procurement & Travel Credit Card Training Marlena Sanders, Credit Card Coordinator Office of Financial Services (https://www.uttyler.edu/finserv/trainingresources.php)

Why Are We Here Procurement and Travel Credit Card misuse is one of the most common frauds in higher education. There are over 5 million of credit card charges annually at UT Tyler. Cardholder and budget authority training is required training at UT Tyler.

How Misuse Happens A “Trusted Employee” has or uses a Procard Detailed receipts are not submitted for review or are not verified An “Approver” is negligent in reviewing purchases and associated supporting documentation Cost Center and Project Reconciliations are not thorough

Real Life Examples of Misuse Purchases of: Personal groceries, including pet food and wine Personal clothing, shoes, diapers, and toys Items delivered to an employee’s home Personal entertainment expenses Personal Vehicle expenses including fuel

Today’s Discussion What NOT to do! What cardholders agree to do What budget authority approvers agree to do Rules and requirements including forms and special approvals What to do: Cardholders Reconcilers Approvers Supervisors Resources to help you “Do the Right Thing”

What NOT To Do Do not purchase personal items. Do not have purchased items delivered to your home. Do not fail to obtain detailed / itemized receipts. Do not forget to complete the “Substantiation of Entertainment and Business Meeting Expenses” form.

Cardholder Agreement All Credit Card holders must sign an agreement that states: Cards will be used for approved purchases only. No personal use is allowed. Failure to follow the rules can result in disciplinary action up to and including termination of employment. Salary deductions are allowed to recoup charges for improper card use. Collection of amounts are allowed even if you are no longer employed at UT Tyler.

General Guideline # 1: Business Purpose Credit card purchases must be for a valid UT Tyler purpose. We are entrusted with funds from students, taxpayers, and donors. Ask yourself Does the purchase seem appropriate if it should show up on the news or the front page of the paper or the internet?

General Guideline # 2: Don’t Approve Your Own Charges Each Procard or Travel card holder’s charges should route up a level for review and approval. Support staff cardholder’s charges should be reviewed and approved by the department budget authority. A department budget authority’s charges should be reviewed and approved by his/her supervisor. Contact the credit card coordinator for adjustments to Procard approvers.

General Guideline # 3 Include Required Documents An itemized receipt for transactions must be attached to the charge line in UT Share/PeopleSoft Procard Reconciliation or on an Expense Report transaction line. Additional required documents should also be attached to the PeopleSoft Procard or My Wallet Reconciliation including: Procard Log “Substantiation of Entertainment and Business Meeting Expenses” forms Emails granting exceptions to the policies. Procard/Travel card Citibank Statements used for SAHARA reconciliations

General Guideline # 4 Know the Funding Source Special restrictions apply to state, fee, donor, and project/grant funded sources. For example, state funds (2xxx cost centers) do not allow tips, entertainment, or flowers. Some grants do not allow travel, entertainment or equipment purchases. Note: Depending on funding, the most restrictive policy must be followed!

Cardholder Responsibilities Activate your card account upon receipt of your card AND set up your Personal ID Number (PIN). The Procard or Travel card holder is responsible for all transactions charged to his/her card. Credit cards are issued to employees, not to departments. If you are asked to allow other employees to use your card and are not comfortable with this, discuss it with your supervisor and/or the credit card coordinator. Additional credit cards can be issued.

Cardholder Responsibilities, con’t Secure cards when not using them to avoid misuse. Keep cards in a separate place from your personal credit cards. Mark the card so you know it is for UT Tyler use only. Lock the card up when it will only be used sporadically. Remember to submit itemized receipts timely to your department reconciler.

Reconciler Responsibilities Process credit card transactions timely after receiving notification from the credit card coordinator or Travel services. Assign appropriate account codes and verify that the correct cost center or project is used. Attached detailed/itemized receipts and other required documents. Include any helpful comments. Report any prohibited purchases. Notify the approver when the transactions are ready for review and approval.

Approver and Supervisor Responsibilities An approver is usually the department budget authority or his/her supervisor if the budget authority is the card holder. Approver is responsible for all transactions charged to their cost center or project, even if they are not the card holder. Approver should verify that an itemized receipt is attached in PeopleSoft and items purchased have a valid business purpose. Approver should verify that items or transactions are not prohibited for payment by credit card. Approver should verify additional required forms are completed and attached on the PeopleSoft Procard or Expense Report screen.

Procard Allowed Transactions BUT Computer supplies BUT NOT controlled equipment (iPads, laptops, etc.) Software BUT preapproval must be obtained from Information Security Recurring services or subscriptions BUT must be cancelled when no longer needed Business Meeting and Entertainment Expenses BUT not over amounts shown in HOP 4.6.7 Flowers BUT not over amount shown in HOP 4.6.7 or when funded by State funds

Procard Prohibited Transactions Texas sales tax. Cardholder is responsible for obtaining a refund from the vendor or repaying UT Tyler for the sales tax charged. Controlled IT equipment including handheld devices, iPads, laptops or desktop computers for example. Gift cards or gift certificates Alcoholic beverages Consulting services Anything requiring a formal contract

Procard Prohibited Transactions, continued Split transactions to avoid transaction dollar amount limit Transactions that exceed the available budget Purchases from a vendor “On Hold” with the Texas State Comptroller Purchases from another UT Tyler department Purchases from outside the United States (i.e. Foreign purchases) Gas for a UT Tyler owned vehicle. Must use a Voyager fleet card. Gas for a personal car. Employee should only receive a mileage reimbursement.

Procard Additional Requirements Maintain and update a Procard Log as items are purchased and attach the Log to the PeopleSoft Procard Reconciliation screen. Verify vendor status if a purchase transaction is 500 or more. Take a screen shot and attach it to the PeopleSoft Procard Reconciliation screen as part of the required supporting documentation.

Travel Rules Employee must have an approved Travel Authorization prior to making any travel charges. Estimated expenses should be detailed in the “Comment” field or as an attachment in PeopleSoft. All charges must be for a valid UT Tyler purpose – NO personal transactions allowed during business travel. Special rules for Washington D.C and foreign travel apply. Related documentation should be attached to the Travel Auth.

Travel Rules, continued Employees should not personally pay (i.e. “out of pocket”) for another employee’s expense and request reimbursement. Employees may charge another employee’s travel expenses to their UT Tyler Travel card. Receipts should be submitted as soon as possible but not later than 10 business days after return from a trip. Special rules apply if travel is of extended duration. All detailed/itemized receipts should be attached to the Expense Report.

Travel Airfare Airline tickets must be booked through one of the UT System contracted travel agencies. Very few exceptions are allowed. See Travel policies for details. Tickets are direct billed to the UT Tyler corporate account then posted to the fund source identified during booking. Review cost center and/or project reconciliations to verify! Excess baggage charges and/or fees for more than one piece of checked luggage are not allowed. Upgraded seats for extra space is not allowed.

Travel Rental Cars UT Tyler employees must use one of the UT System contracted rental car companies. None of the rental car companies are contracted to deliver cars to campus. Travel card charges or out of pocket reimbursements should not include optional insurance or other charges. All 12 to 15 passenger vans must be centrally reserved and billed through Travel Services in Financial Services.

Travel Use of Personal Cars Budget authority approval must be obtained PRIOR to travel. Include in the “Comment” field in the Travel Authorization. Mileage reimbursement covers ALL expenses – NO separate gas reimbursement is allowed. Mileage must be documented – include a screen shot of MapQuest showing the shortest distance OR a log of vehicle odometer readings as an attachment to the PeopleSoft Expense Report. Mileage between home and UT Tyler is never reimbursable.

Travel Lodging Lodging rate amounts are based on General Services Administration (GSA) website. Attach a screenshot to the PeopleSoft Expense Report. Stated lodging rates may only be exceeded: IF it is a conference hotel and preapproved by the Budget Authority – include a “Comment” on the Travel Auth OR the traveler claims less of the maximum meal rate to offset the higher lodging rate. Additional costs cannot be paid from State funds

Travel Lodging, continued Itemized receipts are required with the name of the traveler and “ 0.00” balance due. If employees share a room, each employee must have a receipt with his/her name and the proportional share of the charges. Lodging is allowed for the day before and day after a meeting. It is not allowed for additional days for personal time.

Travel Meals Maximum meal rates are based on General Services Administration (GSA) web site. A screen shot should be attached to the Expense Report in PeopleSoft. There are NO meal per diems – Only the actual cost of meals may be claimed up to the maximum meal rate for each day of travel. Itemized/detailed receipts are required for all meals charged to Travel cards and where required by your department for out-ofpocket paid meal expenses.

Travel Meals, continued Tips on meals are allowed not to exceed 20% of the PRE-TAX subtotal when paid from local funds. Alcohol is not allowed on the Travel card or for reimbursement. Meals for family or friends are not allowed. Business meals not associated with travel have different rules and should be documented with the “Substantiation of Entertainment and Business Meeting Expenses” form. See HOP 4.6.7.

Travel Card: Allowed Transactions BUT Charges for other employees – BUT must have separate itemized receipts for each traveler Gas for rental car – BUT NOT for personal car – Must be reimbursed for mileage BUT NOT for UT Tyler vehicle – Must use Voyager fleet card Business Meeting and Entertainment Expenses – BUT not over amounts listed in HOP 4.6.7

Travel Prohibited Transactions Personal charges of any type Dry cleaning or laundry Rental of movies for personal use State of Texas sales tax on lodging – take a Texas Hotel Occupancy Tax Exemption Certificate when checking into the hotel. IF you forget, access the UT Tyler website and ask the hotel to print one for you. REMEMBER: Know the rules for the cost center and project used before you travel. State funds may not be used to pay hotel rates exceeding the GSA rate or tips on meals.

Travel Card Comments Travel card holders are expected to travel at least 3 trips or spend 500 per year. If a traveler is no longer meeting this requirement, contact the credit card coordinator to close the card account. The credit card coordinator can lower the credit limit to 1.00 to “suspend” a card account when not in use. This is recommended when an employee travels infrequently. Temporary cards are available for students traveling on official University business.

Cost Center / Project Reconciliations Since credit card transactions can be posted to your cost center or project by other departments, it is vital that a thorough reconciliation be performed and approved. Verify that all transactions have required receipts. Reconciliation is a required procedure and helps identify coding mistakes and prevent misapplied charges and fraud.

Required Notifications Notify the credit card coordinator if a cardholder transfers to a different department on campus or if a cardholder terminates employment with UT Tyler. Notify the credit card coordinator if a card is lost, stolen, or has fraudulent transactions. Notify the credit card coordinator or Audit Services if inappropriate use of a card is noticed.

Resources Procurement Services web site: Procurement Procedures Manual Procurement Card Policies and Procedures Voyager Policies and Procedures (for University owned vehicles) Financial Services web site: Travel Program Policies and Procedures Training Resources web page UT Share/PeopleSoft Procurement Card Transaction Processing Budget Authority or Supervisor Review and Approval of Procurement Credit Card Transactions Admin Assistant (support staff) Procard Transaction Reconciliation

Resources, continued Procurement and Travel credit cards: Credit Card Coordinator, Marlena Sanders: [email protected] Purchasing policy and procedure: Procurement team: [email protected] Travel policy and procedure: Travel Services: travel [email protected] Internal Audit: [email protected]

Final Thoughts This training presentation is just a summary of some of the Procurement and Travel Credit Card rules. As a University credit card holder or approver, you are responsible for knowing all of the rules. Please help protect UT Tyler by helping each other be accountable.

QUESTIONS?