Cardholders are responsible for placing all orders, receiving all products and maintaining accurate and organized records for every Procurement Card transaction - charge or credit. All documents must be organized, up-to-date and appropriately filed with their respective billing statements. Procurement Card documents are subject to audit, internally and externally, at any time, and must be kept for a total of seven (six years, plus the current fiscal year).
Proper documentation for all transactions is required and includes, but is not limited to: order forms, packing slips, itemized receipts, invoices, credit pending forms, intended use, event information including, but not limited to: fliers or invitations, gues lists/attendance sheets, agenda and a brief explanation of the purpose of the event and how it supports the mission of the department and/or College.
Required Purchasing Practices
- Funds must be available at the time of purchase in the State/IFR budged used for payment. Be aware that Procurement Card expenses are not visible in the State/IFR default budget (SMRT) until the transaction has been processed for payment by the vendor.
- Use of the card is strictly limited to the purchase of goods and services for official state use only. Purchases intended for payment using non-state funding sources or for goods and services of personal use, are not permitted. Improper use may subject the employee to suspension of privileges or appropriate disciplinary action.
- Whenever possible, utilize NYS (OGS) Contracts, Preferred Sources and Minority/Women-Owned Businesses (M/WBE).
- Always stay within the established limits of the Procurement Card account. Do not "split order" to accommodtae use of the Procurement Card. Traditional purchasing procedures, such as the purchase requisition process, must still be followed.
- All purchases valued at $250 or less, that fall within program guidelines, and the vendor accepts VISA, require the use of the Procurement Card for payment.
- Pre-payment is not permitted for goods or services, including any/all deposits. Please do not proceed with any transaction that requires payment prior to shipping of product or completion of services.
- Be able to substantiate/justify reasonableness of price for items and/or services purchased.
- Keep the Procurement Card and account information in a secure place. Sharing of account information or use of the card by another individual, including members of the department, is not permitted and may subject the cardholder and/or department to permanent revocation of the Procurement Card account.
All Procurement Card orders must be placed directly with the vendor by the cardholder. Employees that have not been issued a Procurement Card are not authorized to place orders and request payment by a cardholder. Non-cardholders are not permitted to obligate State funds over $250 (per NYS Finance Law) and have not been trained in Procurement Card requirements.
Cardholders may place orders via telephone, fax (without account information), online, or retail point-of-purchase. Be prepared to provide the following information to the vendor:
- Cardholder name and account number (if by fax, please call the vendor to provide the account number)
- Account expiration date and Card Verification Value (CVV), if requested
- Ship to address, including "VISA" and cardholder's name and room number, should appear on the outside of the package.
- If shipment is to come through Central Receiving, please use 382 Holley Street as the delivery address.
- If delivery is to arrive through U.S. Postal Service, please use the 350 New Campus Drive.
- Preferred method of shipment is UPS.
- Completed NYS Tax Exempt Form (AC946) for tax exempt number #14740026K.
- If a transaction cannot be tax exempt, it cannot be placed. Be sure to check all receipts and confirm all transactions before completing any order.
- Any sales tax charges processed in error require a credit from the vendor.
- Transactions made "in-person" and outside of NYS are subject to that state's sales tax.
- All orders require the use of an order form. If an order form is not provided by the vendor, please use the Order Form (PC02).
- Cardholders should be prepared to document the following information from the vendor:
- Name of person providing the quote.
- Delivered pricing of each item, which includes any/all shipping charges, minimally obtain an estimate.
- Anticipated delivery date that product will arrive or service will be completed.
- Cardholder should be cautious when purchasing online for the following reasons:
- Many online sources are not reliable or responsible and may not be conducive for tax exempt transactions.
- Better pricing may be obtained when requesting a wirtten quote from the vendor
- Cardholders should only purchase online when the other purchasing options/sources have been exhausted. Contact the Program Administrator or Procurement & Payment Services for assistance with finding reliable and responsible vendors.
- Online orders that are placed should be printed before being submitted. Do not rely on confirmations after the orders have been placed.
The following is required for all transactions regardless of how they are purchased:
- Itemized, comprehensive retail receipts and/or packing slips (a credit card slip is not sufficient documentation);
- All packages must be delivered, initially, to the cardholder directly to ensure product received is correct, proper documentation is secured and issues are resolved in a timely fashion.
- Receipt of merchandise should either be documented with original receipts attached to the back of the Order Form (PC02) or on the bottom of the Order Form when a packing list/receipt is not provided
- Brief description of what was purchased and how/where it is to be used
- Detailed invoice from vendor, when provided
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All packages must be delivered directly to the cardholder. Open any/all packages as soon as they arrive to ensure the product is correct and in good condition. If a return for an item(s) becomes necessary, be aware that vendors do not always allow a lengthy period of time in which to report issues/claims.
If an item arrives damaged or is not the correct item and needs to be returned for credit, the cardholder should follow the procedures below for return the item for full credit. A replacement may or may not be requested.
- Call the vendor to alert them of the damage/error immediately.
- Be prepared to minimally provide the following information to the vendor:
- Order number typically located on the packing slip or confirmation
- Cardholder name and account number
- When product is returned due to damage from shipping or manufacturer defect, or due to vendor error, the cardholder is not responsible for paying reutrn shipping charges. The vendor must issue a prepaid return label, "call tag" or pick up the item(s) at the vendor's expense
- A vendor will give specific instructions for returning the item(s) that may include written authorization or a return authorization number (RA or RMA number) to be referenced on the return package; packaging instructions, etc. Please follow these instructions exactly.
- Once the item(s) has been received by the vendor, a full credit for that item, including its original shipping cost, must be issued to the original Procurement Card account. Cash refunds are not allowed!
- If a replacement item is requested by the cardholder, a new charge with all new shipping costs (if applicable) should be submitted through Citibank by the vendor.
- The cardholder must keep a Credit Pending Form (PC03) in the pending folder to use as backup documentation when the credit appears on a future statement.
- Make a copy of the original Order Form (PC02) to keep in the pending folder if a replacement was requested.
A cardholder may opt to return an item that was ordered incorrectly, not what was expected or is no longer needed. In these situations, the above process applies with the exception of return shipping charges. The cardholder may be responsible for return shipping charges; will, most likely, not be refunded the original shipping charges and may be subject to a restocking fee (a percentage of the original cost for the handling of the item back into inventory by the vendor). A restocking fee may vary from minimal (1-2%) to more costly (25-30%). The cardholder must compare the costs associated with the return with the original cost of the item(s). It may be advantageous to the department, as well as the college, to find another use within the department or College community.
A Credit Pending Form is required should the cardholder decide to return the item(s) and must be kept in the pending folder to use as back up documentation when the credit appears on a future statement.
Obtaining Credits & Resolving Disputes
Cardholders must attempt to resolve all discrepancies directly with the vendor within a reasonable timeframe (minimally, allow one full billing cycle for resolution). Cardholders must document communications with a vendor by utilizing a Credit Pending Form (PC03). Documentation should include, but is not limited to:
- Contact name
- Dates/timeline of communications
- Expected outcome based on communications
If a resolution cannot be established, the cardholder should contact the Program Administrator for assistance by sending the documented communications and explanation of the problem. The Program Administrator will recommend or initiate appropriate actions necessary to resolve the matter. Should the Program Administrator be unsuccessful, a formal dispute may be processed with Citibank.
Under no circumstances may cash or any cash equivalent (e.g., gift card) be accepted by the cardholder to resolve a credit situation.
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Cardholders are required to keep complete procurement records for every transaction made against the VISA account, charge or credit, from beginning to end, for a total of seven (7) fiscal years. This minimally includes order forms, packing slips, invoices (if provided), credit pending forms, and event information (if applicable), including, but not limited to: fliers or invitations, guest lists/attendance sheets, agenda and a brief explanaton of the purpose of the event and how it supports the mission of the department and/or College.
It is important that cardholders maintain all Procurement Card records in an accurate, organized and up-to-date fashion since audits by the Program Administrator, SUNY or the Office of the State Comptroller (OSC) do not require any advance notice.
Cardholders must maintain all open orders and respective documents in a separate "pending" folder to be matched to the corresponding Citibank staements at the end of each billing cycle. Documentation for transactions not appearing on the statement are to remain in the pending folder to matched to a future statement.
NOTE: Documentation for product received and services completed that do not appear on a Citibank statement for two or more billing cycles will require follow up by the cardholder with the vendor to ensure payments are made in a timely fashion. This is especially important at the end of a fiscal year when funding will lapse and will no longer be available for outstanding charges after July 1 of each year (i.e., the Procurement Card cannot be used after July 1 each year for payment of transactions made in the previous fiscal year; non-state funds will be required for payment).
Following a monthly reconciliation/certification process, cardholders are required to have the appropriate supervisor review the statement, all backup documentation and sign the printed certification statement before a cardholder files the documentation into a closed, fiscal year folder where it will remain until the completion of the seven (7) year audit period or the cardholder changes departments or separates from the College.
The following procedures are necessary to ensure proper Procurement Card account management:
- Itemized receipts/packing lists are attached to the back of the respective Order Form
- All pricing is "as quoted". Discrepancies are reported to the vendor immediately and a credit process is started, when necessary. A Credit Pending Form is completed and filed as "pending" for receipt of future credit.
- If multiple receipts are issued for one transaction, all associated receipts should be stapled together and filed with the respective Order Form and statement. The cumulative total contained on all receipts or invoices should not exceed the original quote.
- For backorder situations where the order may extend over multiple billing cycles, make a copy of the original Order form and highlight the item(s) that has not yet been received. Keep the highlighted copy in the pending folder until the item is received. Use the original as backup for the current statement. Continue this until all items are received and the order is complete.
- Sales tax charges are identified and vendor is contacted to begin a credit process. A Credit Pending Form is completed and filed as "pending" until receipt of future credit.
- Follow up with the vendor by the cardholder is required for those credits that are not processed to the account in a timely fashion. Attach the respective Credit Pending Form to the statement once the credit appears on a Citibank statement.
- If a charge appears on a Citibank statement for an item ordered but not recieved, the vendor must be contacted to determine the status of the order. Vendors are not permitted to submit charges to Citibank until goods have shipped or services have been completed. Pre-payment and/or deposits for goods or services are not permitted.
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Last Updated 4/28/16