Purchasing Card Procedures
Issuance of the Card
The Purchasing Department, in coordination with Elan Commercial Card Services and US Bank will issue the card. A MTU Purchasing Card Agreement form will be supplied to the department or may be printed from the web. The application must be completed and returned to Purchasing with appropriate authorization signatures & account index before the card will be ordered. The cardholder must pick up the card in person from the Purchasing Department. Cardholders will not be required to sign the back of the card.
Card Limits
The purchasing card dollar limit will be $4,999.99 or less per item (including shipping), with departments having the option of setting their limit lower. This limit will be monitored by the cardholder's Department and the Purchasing Department. The monthly internal credit limit will be determined by the Department, Purchasing, and the Credit Card Company, based on need. The maximum credit limit allowed will be $4,999.99 monthly. Any exceptions require special approval from the Department Head and the Manager of Purchasing.
Statement Address/Payment and Invoice Payment
The cardholder need not be concerned about statement address. Elan sends the statement directly to our Accounts Payable Department and to the cardholder. Invoices and receipts, however, need to be mailed directly to your department.
Shipping Address
NOTE: Shipping labels without the room & bldg can not be delivered by common carrier and will be delivered to Central Receiving for redistribution within the University.
One of the best reasons for using the purchasing card is direct to department delivery of invoices & packages. You will be given your mailing & shipping address when you pick up your card. Give the vendor complete instructions for delivery by giving them:
Michigan Technological University
Your Name / Department
Room # and Building Name
1400 Townsend Drive
Houghton, Michigan 49931-1295
The room number used in the address is the one that is usually staffed during business hours. The carriers will not leave a package without a signature. If no one is available to sign for the receipt of a package, the carrier will attempt to deliver two more days, then return the package to the vendor.
When signing a receipt, count and inspect for damage. Any shortages or damage should be noted on the paper you are signing.
Shipments in excess of 150 pounds will be delivered to Central Receiving for re-delivery to the department.
Accountability, Use, and Bill Payment
The card holder is responsible for all charges made to the purchasing card account. If the card holder decides to delegate the use of the purchasing card to another employee, the purchasing card holder needs to inform the delegate of the University's purchasing card policies and procedures. They should also provide them with a list of prohibited purchases.
The purchasing card holder is responsible for obtaining receipt of purchases. When using the internet, you should either print the summary page before submitting the order, or print the confirmation e-mail showing the itemized purchase, or contact the company and request a receipt.
The cardholder, upon receiving the monthly billing statement, should reconcile items to be sure that amounts charged on the original invoices, sales slips, or receipts match the monthly statement. The original invoices, sales slips, or receipts, which are usually given to the buyer, arrive with the shipment, or are mailed to the shipping address, must include a descriptive itemization listing items purchased, quantities, prices, and vendors' names. BOTH the receipts (above) and the monthly billing statement should be kept together in a file for three (3) years. For grants and contracts, these records must be kept for three years and three months after the close of the account. NOTE: Monthly charges will automatically be paid by Accounts Payable and charged to the cardholder's index and E210 account number for credit card purchases. Purchasing and Internal Audit will periodically audit the charges and will review monthly summaries.
Monthly billing statements need to be presented to your Supervisor or Supervisor's designee for review regarding the statements accuracy, validity of the expenditure and that all receipts are retained by the card holder. Once the Supervisor or Supervisor's designee has completed the review and if there are no disputes, the Supervisor or Supervisor's designee should sign off on the statement and return it to the card holder. Any disputes should be resolved between the Supervisor or Supervisor's designee and the card holder. If no resolution can be reached notify the Purchasing Manager for assistance.
Multiple Accounts
Cardholders with multiple accounts will have just one card. To charge multiple accounts, reallocate the charges on the Visa Information Management web site before the charges are posted to Banner. After the charges have been posted to Banner, if you didn't make the reallocations on the Visa Information Management web site or need to make a correction to the reallocations, use a Reallocation of Expenditures form to process the reallocation. Include the last 4 digits of the credit card number, vendor name and date the charge was downloaded to Banner. This information will help an auditor trace back to the transaction slip that you are keeping for seven (7) years. A copy of the Reallocation of Expenditure form should be kept in the account charged file. Do Not Procrastinate! Process promptly (within the month after statement) Research accounts may close.
Discrepancies and Disputes
Discrepancies are the sole responsibility of the Purchasing Card Holder to resolve. If there are charges the department wishes to dispute, notify Elan using the Billing Rights Guidelines and Cardholder Statement of Disputed Item form on the back of the statement and fax to Elan.
Taxes
The University is exempt from all State sales tax and Federal excise tax, and the vendor should be so informed at each transaction. Our tax-free registry numbers are: Michigan #38-73-0627-K and Wisconsin #ES-41033 Federal tax ID number (or employer ID) is #38-6005955.
Lost Card/Suspected Fraud
If a card is lost or stolen or fraud is suspected, the cardholder user department has the responsibility to notify Elan at 1-800-344-5696 & the Purchasing Department at 487-2510 immediately. After business hours notify Raymond Lasanen or Lisa Redding by leaving a message on the answering machine. In addition the user department has the responsibility to notify the Office of Public Safety at 487-2216.
Employee Termination & Transfer
Should a cardholder terminate employment with the University or transfer between departments, the user Department has the specific obligation to reclaim the credit card and return it to the Purchasing Department prior to the employee's termination date.
The former employee's supervisor is then responsible to maintain purchasing card records in compliance with the University Record Retention policy. http://www.admin.mtu.edu/admin/policy/gen/1007_a.htm
Personal Purchases
The cardholder may not make personal purchases on the card and then reimburse the University.
Questions
Questions concerning purchasing card procedures or purchases should be directed to one of the following individuals at the Purchasing Department: - Raymond Lasanen, Manager or Lisa Redding, Purchasing Asst. 487-2510
Non-Adherence
Non-adherence to any of the above procedures may result in suspension or revocation of individual cardholder privileges and any other action that may be deemed appropriate. Suspension or revocation is to be determined by the Manager of Purchasing. First offense results in a warning, second offense results in a 30 day suspension of the credit card and a third offense will be revocation of your card for 90 days. At the conclusion of the 90 days you may apply for a new card after meeting with the manager of Purchasing and your supervisor approves your request. Final determination to issue or not to issue a new card will be the responsibility of the Manager of Purchasing.
