Billing Cycle

The Procurement Card billing cycle is a monthly period from the 16th of one month to the 15th of the next month.

Changing the Default Account

All Procard purchases will be charged to the default index and account code listed on your original Procard application. If you should need to change the default index and/or account code on your Procard, please e-mail Barbara Tschida or Donna Scarbrough with the following information:

• Department name
• Name on procard
• Old index and account code
• New index and account code

Activating Your Procard

A sticker can be found on the Procard that lists an 800 number, which can be called to activate the card. You will need to provide some personal information during the call. The card must be activated before purchases can be made.

Deactivating Your Procard

If you are deactivating your Procard, follow these procedures:

• Cease using the Procard 7-10 business days prior to deactivation
• Take your Procard to the Purchasing Department
• Complete your final Procard records and submit them to the Procard Auditor

The above procedures should be followed whether you transferring, terminating, or you simply no longer need the card.

Lost or Stolen Procurement Cards

Procedures for a lost or stolen procurement card can be found in Purchasing's Procurement Card Guide.

It is the responsibility of the cardholder to maintain records of Procurement card purchases and to submit monthly expense reports in a timely manner. Documentation requirements and procurement card reconciliation procedures are detailed below.

Documentation Requirements

Cardholders should always obtain an itemized vendor receipt or invoice for each transaction. If a cash register tape does not have descriptions, they should be written on the tape. If an itemized vendor receipt or invoice is missing, the cardholder should contact the vendor to obtain a copy. If the vendor cannot or will not issue a receipt or invoice, the cardholder should contact the Procard Auditor to complete a missing receipt/invoice report and get all appropriate signatures. If a cardholder consistently has a problem obtaining all original itemized receipts or invoices, their cardholder privileges will be reviewed and possibly revoked.

• Itemized Vendor Receipt/Invoice: Is defined as an original invoice, original cash register receipt, original sales slip, or original packing slip which contains an itemized list of goods purchased, with dollar amounts, and the name and location of the supplier. An employee of the supplier must sign handwritten receipts.
• Internet Purchases: At least one of the following types of documentation is required:
  1. Original itemized invoice or packing slip
  2. Printout of the online order confirmation
  3. Printout of the e-mail confirmation
  4. Printout of the completed online order form

Sales Tax: Indiana State University is exempt from sales tax. Indiana state sales tax charges should not be accepted on Procard purchases by the cardholder. The University’s tax exemption number can be found inside the front cover of the pocket guide that was given with your card. You, as the cardholder, need to be sure that the vendor does not charge sales tax. The University is NOT exempt from all types of taxes (ex. Food and Beverage Tax). We are only exempt from sales tax.

Reconciliation Requirements

Procurement cardholders are responsible for completing a monthly expense report and submitting that report to the Procurement Card Auditor within 30 days of the end of the billing cycle (the 15^th of each month).

• Expense Reports: This report is your credit card statement. This report contains transactions, purpose of purchases, and fields for cardholder and reviewers signatures. Expense Reports can be printed from the SDG2 webpage.
• Reconciliation: It is the cardholder’s responsibility to reconcile all purchases with the expense report. Any discrepancies are the cardholder’s responsibility to correct by contacting the vendor within 30 days of the end of the billing cycle.
• Purpose of Purchase: The purpose of the purchase must be provided to determine compliance. The purpose can be entered using the SDG2 site (See Online Tools) in the field “Expense Description” found in Transaction Summary under the Account Activities tab. This should not be a list of what was purchased or a person’s name, but rather why the purchase was made.
• Departmental Reviewer: The department reviewer should be the department head or someone he/she designates to be the reviewer of the cardholders. The departmental reviewer should be someone that is financially qualified to understand the reason for the purchase and knows whether the purchase is for the department’s benefit. The departmental reviewer will be responsible for seeing that the reconciliation of the Expense Report is correct.
• Approvals: Both the cardholder and the departmental reviewer must sign and date the Expense Report. By signing the report, the cardholder and departmental reviewer are ensuring all transactions are for University purposes only.
• Submit Records to the Auditor: After Expense Reports and itemized vendor receipts are reconciled by the cardholder and reviewed by the Departmental Reviewer, they should be turned into the Procurement Card Auditor within 30 days of the end of the billing cycle. It is recommended that these records be hand-delivered to the assigned drop-off area in the Office of the Controller. NOTE: These records become permanent records within the Office of the Controller, and we recommend making copies for your records.

All Procurement Card transactions will be audited by the Procurement Card Auditor. The Internal Auditor of the University or the State Board of Accounts (state auditors) may select a number of cardholders to audit for compliance with transaction and record keeping policies and procedures. Procurement Card auditing procedures are established to verify that the Procurement Card is being used appropriately by the cardholder and that the cardholder and the department are maintaining the records.

Procurement Card violations and violation guidelines are described below. The goal of these guidelines is not to punish cardholders or terminate cards, but to ensure the University’s policies are followed. The Procurement Card Administrators will make every attempt to assist the cardholder and supervisor in following the policies and keeping the departmental cards active. It is ultimately the department’s responsibility, however, to make sure the University’s policies are followed.

NON-CRITICAL VIOLATIONS

The following Procurement Card violations are considered “non-critical”, and may result in card suspension if deemed excessive (six months, within a fiscal year, of having at least one non-critical violation will result in a critical violation):

1. Late expense reports
2. Incomplete/late business purpose for a transaction*
3. Failure to notify vendor of tax-exempt status/failure to dispute sales tax charge*
4. Missing Required Forms (Logo Approval, Hospitality or Distribution of Prizes and/or Awards, if needed)*

*Violations that require correction.

CRITICAL VIOLATIONS

The following Procurement card violations are considered “critical”:

1. Use of the Procurement Card for personal purchases*
2. Missing receipts/undocumented purchases*
3. Not reporting a lost or stolen Procurement Card immediately
4. Allowing another person to use your Procurement Card
5. Use of Procurement card for purchases found on the “Restricted Transactions” list
6. Excessive non-critical violations (six months, within a fiscal year, of having at least one non-critical violation will result in a critical violation)
7. Splitting purchases to get around maximum purchase limit

*Violations that require correction.

Critical violations will be handled as follows:

1. 1st Violation- Written warning with notice to correct violation within one week. If violation is not corrected within that time, the supervisor will be contacted and the cardholder’s limits will be lowered to $1 until corrected.
2. 2nd Violation- Written warning with notice to correct violation within one week. If violation is not corrected within that time, the supervisor will be contacted and the cardholder’s limits will be lowered to $1 until corrected.
3. 3rd Violation- The supervisor will be contacted and it may result in the requirement of additional training or suspension of the Procurement Card.

Smart Data Generation 2 (SDG2) is the online tool provided by JPMorgan Chase for management of procurement card accounts. SDG2 gives cardholders access to:

• Procard transactions for the last 24 months
• Transaction limits
• Billing address on file
• Printable Procard Expense Report
• Approval of expenses
• Capability to change accounting for expenses
• Capability to input the purpose of the purchase

All cardholders are required to access this site on a weekly basis to make the necessary transaction updates.

Please review the Cardholder Quick Reference Guide for SDG2 for training information before accessing the site for the first time.

If you have technical problems with the SDG2 site, please contact Barbara Tschida