Chancellor's Office Business Policies and Procedures

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25.10 Procurement Cards and Ghost Accounts

Purpose:

To establish policies and procedures associated with procurement cards and ghost accounts.

Policy:

The following procedures will be used for procurement cards and ghost accounts.

Procedures to Obtain Procurement Card and Ghost Account:

1. The department shall contact the OUS Procurement Card Administrator (PCA) and request a procurement card and ghost account.
2. The PCA submits an application to US Bank. When the card and ghost account information arrives, the PCA notifies the department.
3. The department’s Budget Authority assigns a Card Custodian. Prior to receiving the card and/or ghost account, the Budget Authority and Card Custodian must complete training requirements and sign the Procurement Card and Ghost Account Departmental Agreement.
4. The Card Custodian authorizes designated employee(s) to make purchases with the procurement card and/or ghost account. Users complete the training requirements and sign the Procurement Card and Ghost Account Designated User Agreement.

Procedures For Use of Procurement Card and Ghost Account:

1. Authorized users (as identified in Procurement Card and Ghost Account Designated User Agreement) make purchases with the procurement card and/or ghost account according to the guidelines specified in the Agreement. The user records purchases on the Procurement Card Log provided as part of these procedures. The user gives the purchase receipt to the Card Custodian.
2. Monthly, the Card Custodian reconciles the account's summary statement with the log and purchase documentation.
3. The Card Custodian routes the summary statement and documentation to the Department Head for review and approval.
4. The Card Custodian files the approved statement and documentation within the Department's procurement card and ghost account files and sends a copy of the statement summary to Business Processing Staff to be used in the monthly reconciliation.
5. Periodically (at a minimum of quarterly), Business Processing Staff reconciles the statement summary with activity in FIS.
6. Following the reconciliation, Business Processing Staff file the copy of the statement in accounts payable archive files.

Redistribution Procedures:

1. All charges to the procurement card will be redistributed to the appropriate account code.
2. Each month, provide to Kyla Reid in Business Services an account code for each charge or a short description of each charge, so that Kyla can assign the appropriate account code.
3. Kyla Reid will charge the appropriate account code at the time she redistributes the monthly charges to departmental indices.

Training Requirements:

New Card Users, Custodians, and Budget Authorities are required to complete on-line training. Contact the Procurement Card Administrator for training information.

Separation Procedures:

1. Upon separation from employment, a card user will be removed from the authorized card user list and notification will be sent to the Card Custodian, Budget Authority, and Program Administrator.
2. When a Budget Authority or Card Custodian separates from their position, the procurement card and ghost account will be cancelled and reissued.

Procurement Card Administration Procedures:

The Procurement Card Administrator in Business Services is responsible for:

• monitoring card usage for compliance with policies
• reviewing usage frequency of each card for inactive or infrequently used accounts (annually or more frequently, as needed)
• reviewing card activity levels and resetting card spending levels accordingly (annually or more frequently, as needed)
• maintaining a comprehensive list of Card Users, Custodians, and Budget Authorities
• canceling and reissuing cards (every three years or more frequently, as needed)
• reviewing blocked MCC codes periodically and implementing changes as deemed appropriate
• updating Chancellor's Office Business Policies and Procedures and communicating to staff, as needed
• providing training to new Card Users, Custodians, and those with Budget Authority
• providing training to Card Users, Custodians, and Budget Authorities
• serving as primary liaison with the contracted card provider

Exception to 1099 Reportable Expenses

The OUS policy does not allow 1099 reportable expenses to be charged using the procurement card; however, there are certain vendors that are exempt from 1099 reporting due to their vendor status. An exception list has been established based on frequently used vendors that are exempt from 1099 tax reporting.

Charges to the following vendors will be allowed for purchases that are otherwise 1099 reportable:

• Aramark Corporation
• Aspen Publishers, Inc.
• DS Waters of America, Inc., dba Sierra Springs
• FedEx Kinko's Office and Print Services
• Federal Express Corporation
• Industrial Publishing, Inc., dba KOKE Printing
• Lane Community College
• Office World Inc.
• OfficeMax Contract Inc.
• Personnel Source Inc.
• Robert Half International
• Steiner Corp
• TMP Worldwide

In all cases, procurement card charges must always have an authorized purpose as defined in the OUS Chancellor's Office Procurement Card and Ghost Account Designated User Agreement.

Authoritative References:

• FPM 70.100 - Procurement: Purchasing - Procurement Card
• Procurement Card and Ghost Account Departmental Agreement -- This document sets forth the department’s Budget Authority and Card Custodian responsibilities which are an integral part of this policy.
• Procurement Card and Ghost Account Designated User Agreement -- This document authorizes specific employees as designated procurement card and ghost account users and sets forth the users’ responsibilities which are an integral part of this policy.

Forms:

• Procurement Card and Ghost Account Departmental Agreement
• Procurement Card and Ghost Account Designated User Agreement
• Procurement Card Log

Last Updated: 12/01/08